Dominica’s Electricity needs – A plan for sustainability Presenter: Francis Paul

1. Dominica’s Electricity needs – A plan for sustainabilityPresenter: Francis Paul

2. Background • Dominica is an island of 305 square miles located between two French islands, Martinique and Guadeloupe. Its economy is mainly supported by agriculture and tourism. The island has an extremely small industrial base and demand for electricity has been mainly from the domestic and commercial publics. The island’s population is in the region of 70,000 and has not shown any signs of growth. One of the features of Dominica is its mountainous nature • In fact it is said that Dominica has the highest concentration of potentially active volcanoes in the World. Notable among these are the largest ones like Diablotin, Trois Piton, Morne Plat Pay and MorneAnglais which have erupted in the past and will more than likely will erupt again. Quite apart from this the island has an abundance of hot sulphur springs particularly in the Roseau Valley. To underscore this point Dominica has the third largest boiling lake in the World

3. Background

4. Background • Another feature of the island is the level of rainfall that is experienced per year. Rainfall occurs throughout the year. The heaviest period is the June to October months. In fact the average annual rainfall ranges from 69 inches from one part of the island to 106 inches in another part. The island claims to have three hundred and sixty-five rivers. • Because of Dominica’s location in the World, it is blessed with an immense amount of sunshine. It is these very features of the island that has provided it with the potential for an abundance of renewable energy which can be harnessed and used to foster the development of the country.

5. Introduction • Dominica is a small developing state that at this current stage of its development has an opportunity to get it right. For some time the island has been attempting to brand itself as the nature island. It is for this very reason that is of utmost importance that nothing is spared in embracing every opportunity to maintain our eco-system by sustainably developing our resources for the benefit of all in the island. Although the people of Dominica may not be able to completely convert its energy use to renewable, what is certain, is that, it is feasible to fully meet all electricity demand by the use of renewable

6. Introduction • There are many benefits that are to be derived should Dominica move to have all its needs met by renewable. Most importantly, businesses in the island would be better able to plan their budgets in terms of the energy cost. This is primarily because of the fact that volatility in the price of electricity as is currently evident by the varying fuel surcharge would be managed so as to insulate ourselves from the varying price of petroleum on the world market. Certainly the country will ensure some level of energy security. Apart from the generation of electricity, Dominica has the potential to earn carbon credits as a result of being fully renewable domestically and could earn even more credits when the large geothermal plant is developed for the cross border export of electricity. • As we map our way forward it is necessary that we briefly examine the laws and policies that establish the framework for the generation and supply of electricity to include the development • of renewable energy.

7. Laws and Policies • The Independent Regulatory Commission is charged in law with responsibility of ensuring the long term development and supply of electricity to the citizenry of the Commonwealth of Dominica. This is captured in the Electricity Supply Act, Act 10 of 2006 which mandates that the Independent Regulatory Commission ensures that Dominica has an efficient, secure and sustainable supply of electricity which conforms to both national and international environmental standards. • Section 20 subsection 1 (a), (b) and (c) states: The Commission shall, without limiting the generality of this section, have a duty to perform and exercise its functions and powers under this Act in the manner which it considers best calculated to: (a) encourage the expansion of electricity supply in Dominica where this is economic and cost effective and in the public interest; (b) encourage the operation and development of a safe, efficient and economic electricity sector in Dominica; (c) ensure the security and efficiency of the supply of electricity in Dominica through the conduct of an efficient long-term supply planning process with the regard for future potential generation sources such as geothermal and wind energy;

8. Laws and Policies • Section 20 (2) reads: In exercising its duties referred to in subsection (1), the Commission shall have due regard to- (a) national and international environmental standards as they affect the electricity sector and shall consult with environmental bodies in Dominica or in the region where necessary or expedient in relation to consumer and industry interests; • Section 18 states: The Commission shall be independent in the performance of its functions and duties under this Act and shall not be subject to the direction and control of the Government or of any person, corporation or authority, except that the Commission shall havedue regard to the public interest and overall Government policy, as embodied in legislation.

9. Laws and Policies • One difficulty that the Independent Regulatory Commission encountered very early in its existence was the absence of an energy policy. Subsequently the Government of Dominica with assistance from the Organization of American States developed a National Energy Policy and a Sustainable Energy Plan for Dominica which at the time of writing was still in its draft form. Nonetheless, this document encapsulates Government’s policy on electricity supply in the island. The Policy states: It is Government’s policy to foster a safe, efficient, affordable, and low-carbon national electricity supply that meets international quality standards by promoting efficient use of imported fossils fuels, and the development of Dominica’s indigenous renewable energy resources

10. Laws and Policies • It further states: It is Government’s policy to promote the use of Dominica’s indigenous renewable energy resources for the production of electricity wherever economically viable. • It is Government’s policy to rationalize Dominica’s overall rate of energy consumption while increasing its economic growth by adopting best practices in energy efficiency and conservation. • In addition to the formation of a policy, the Government has taken the steps to develop a Geothermal Resources Development Bill which would establish the legal framework in which this resource will be exploited and managed. This bill had its first reading in Parliament. • The laws and policies as outlined, saddle the IRC with the task of pursuing the goal of utilizing renewable resources in the production of electricity in an economic manner and at the same time promoting conservation in the use of that energy.

11. Energy Production - Hydro and Diesel

12. Energy Production – Hydro and Diesel • There was a stage in the development of Dominica, prior to 1976, when the production of electricity was mainly through hydro. This has changed. The first hydro plant was commissioned in 1952 and second in 1967. As can be evident from the graph above (Figure 1.1) from the year 1976 one can note that very little diesel was used in the generation of electricity. Hydro generation was 14,125MW-h in 1976, whereas that from diesel was 1,281MW-h. It was a trend that continued up to 1988, save for a drop in generation as a result of Hurricane David in 1979 which devastated the island. In 1988, generation from hydro and diesel were 15,678MW-h and 14,182MW-h and in 1989 it was 14,117MW-h and 18,372MW-h respectively. After Government assumed full ownership of DOMLEC in 1984, they embarked on expanding the hydro capacity, by constructing the Laudat Power Station with an output of 1320kW and New Trafalgar 1760kW. This expansion allowed the output of hydro to dominate the generation mix till 1998 where the trend was reversed. Hydro generation in 1998 was 33,671MW-h and diesel was 36,640MW-h.

13. Energy Production – Hydro and Diesel • What now obtains as recorded at the end of December 2012, was that the generation from hydro was 26,748MW-h and that from diesel was 74,807MW-h • To meet that level of demand, DOMLEC currently has an installed capacity of 26.74MW of which the maximum available capacity is 24.43MW. The firm capacity is 20.28MW. Of this total the maximum available hydro is 6.10MW which is approximately 25% of the available capacity. This capacity is sufficient to meet the peak of 17.229MW which has grown from 3.05 MW in 1976. As outlined in the Integrated Resource Plan the peak was projected to have been 17,771 kW in 2012 and 18,393 kW in 2013. So far this year a peak of 16,790 kW has been recorded.

15. As we critically look at the electricity needs of Dominica, it appears now is the opportune time to take some critical decisions which would have the least negative effect on this industry. An examination of the retirement schedule of the electricity generators shows that three of these should retire in the year 2013 with a capacity of 4.2MW, three in 2014 with a capacity of 2.95MW, another three in 2015 with a capacity of 4.2MW. Based on this retirement schedule the Independent Regulatory Commission should ensure that there is a staged addition of the geothermal generation capacity in a manner to prevent the need for stranded assets and at the same time to limit overcapacity.

16. It is evident that there has been a dramatic increase in the use of fossil fuel in the generation of electricity in the island over the past few years. The significance of this must be noted and all efforts must be made to reverse this trend. The impact of such an occurrence is not limited only to the level of fuel surcharge and its impact on the consumers but the large amounts spent on the importation of fuel. Over the last six years there has been a steady increase in this amount. We have seen cost of fuel range from $27.7 million to $51.7 million dollars over the years.

18. Given the plethora of natural resources available in Dominica, the possibility for this country to become one of the first State in the Caribbean to meet all its electricity needs is eminent. With the existing installed capacity of 6.64MW of hydro, and the potential to increase this further, given the fact that this plan is presently under consideration by DOMLEC all that is needed at this stage is a renewable plant with a minimum capacity of 15MW. • Apart from expanding the hydro capacity, geothermal energy development is an area that the Government of Dominica is actively pursuing. To date, the Government has spent as much as $33M in the exploration of this resource

19. Geothermal energy can be described as heat from the crust of the Earth. This form of energy is considered to be clean and can be an inexhaustible source of renewable energy. In the exploitation of this resource for electricity generation, there are various types of geothermal power plants that can be built. These are the flush, dry steam, binary and binary/flush power plants. • In the case of Dominica, the plant that will be used will be the flush type. The way this works is that geothermally heated water under pressure is separated in a steam separator into steam and hot water known as brine. The steam is delivered to the turbine and turbine in turn powers the generator. The liquid is injected back into the reservoir

20. The island of Dominica with help from the French and the European bank has been able to carry out the exploration to determine the feasibility to produce electricity through the use of geothermal resource. In the exploratory drilling that has taken place conditions have been determined to be very good for the development of at least 120 megawatts of electricity. The result of the exploration has found the temperature of the reservoir to be as high as 250 °C. In terms of the environment, there were some of the substances found that was slightly above the acceptable level. This includes mercury and arsenic. These can be easily managed with existing technologies.

22. The arguments for developing the electricity sector in a manner that meet all the needs of Dominica by utilizing renewable energy are many. One of the prime advantages that will be derived from this is the fact that there will be the assurance of security in the area of electricity. It is reasonable to assume that the island will be insulated from the instabilities that may occur in the oil producing countries. In addition to this we will experience a reduction in the price of electricity and prices will not change in sympathy with the variability of oil prices on the world market. It is worthy to note that for the first nine months of this year the average fuel surcharge was 42.7 EC cents per kW-h. At the very least we expect that cost to go.

23. Demand Side Management • It is necessary to concentrate on conservation as outlined in the Government Policy Document. It is noteworthy that in pursuing a strategy to meet all electricity needs by becoming fully renewable, that development of renewable supply and the demand side management be pursued concomitantly. • In any plan for a renewable, reliable and sustainable electricity sector, it is incumbent upon the regulator to ensure that the Utility has an integrated resource plan that considers strongly the demand side management. A lack of conservation, can translate into an unnecessary cost burden on the consumer and the State on a whole. • Currently DOMLEC the electricity utility on island has been doing some limited work in the area demand side management through a radio program it uses to do its public relations campaign. Ofcourse this gives a few tips to consumers on energy saving

24. DOMLEC has already deployed a number of smart meters known as the Advance Metering Infrastructure. These meters in addition to providing the capability for the introduction of rates based on the time of the day, has made it possible for a prepaid service to be provided, known as PAY-AS-YOU-GO which allows consumers to purchase the amount of electricity they need. • The incorporation of this level of technology in the distribution and sales side of the electricity business, allows for the availability of real time information for both the management of the Utility and users of the service, thus realizing greater efficiency and at the same time providing the consumers greater control over their electricity consumption. This in some way encourages conservation.

26. The load curve shows that for significant part of any given day that the average energy demand is in the region of 8 – 10 MW. But whereas the average level of energy demanded for the greater part may be at this low level, there is a responsibility on the Utility Company to ensure that the necessary equipment is procured to meet the peak demand. This capacity cost is borne by the consumers. Therefore it is imperative that this cost be reduced and as consequence the pattern of consumption by the consumers be changed. One clear way of achieving this objective, is to encourage consumer to use energy away from the peak period. But before such a move can be contemplated, it would be useful that either of a study or survey be conducted to inform the decision to move in this direction

27. Other Initiatives • Complement government provision of CLF light bulbs, erection solar powered street lights by influencing standards leaning towards use of LED bulbs and energy efficient appliances • Current private sector initiatives to link with the financial institutions to provide financing energy efficient projects

28. Conclusion • Dominica has the natural resources that can be exploited in a manner to fulfill all it’s electricity needs. Given the energy policy and the legislation, the environment has been created where this country can return to the stage where all its electricity demand can be met by renewable sources. • Coupled with a programme of conservation, we will surely guarantee a resource that is reliable, efficient, secure and most importantly sustainable.