Renewable Energy Initiatives in the Caribbean

1. Renewable Energy Initiatives in the Caribbean Paper presented at Workshop on Climate Change Enabling Activity – Jamaica by Mona Whyte Caribbean Energy Information System

2. CEIS Participating Countries in the Caribbean Region

3. Classification of countries

4. ENERGY IN THE CARIBBEAN • CHARACTERISTICS • HIGH DEPENDENCE ON OIL AS A MAJOR SOURCE OF COMMERCIAL ENERGY, WHICH IN THE MAJORITY OF CASES IS IMPORTED WITH IMPACT ON THE BALANCE OF TRADE. • RELATIVELY HIGH INCOME FROM TOURISM • EXPOSED TO NEGATIVE IMPACT OF CLIMATE CHANGES AND ENVIRONMENTAL DAMAGES (SEA LEVEL RISING, HURRICANES, FLOODING, CORAL REEF IN DANGER)

5. ENERGY IN THE CARIBBEAN contd • DEPENDENCE ON TRADITIONAL BIOMASS FUELS LIKE FUELWOOD, CHARCOAL AND PLANT AND ANIMAL WASTE • UNEQUAL DISTRIBUTION OF AVAILABLE RESOURCES OF OIL, COAL, NATURAL GAS AND HYDROENERGY POTENTIAL • SUBSTANTIAL RENEWABLE SOURCES OF ENERGY,

6. ENERGY IN THE CARIBBEAN contd • LOW ELECTRIFICATION RATE IN SOME LARGE HINTERLANDS (GUYANA, BELIZE) • LOW DENSITY OF RURAL POPULATION • LOW PURCHASING POWER • ECONOMIC DIFFICULTIES • LITTLE ACCESS TO INTERNATIONAL FINANCING

7. THE PETROLEUM SITUATION IN THE CARIBBEAN

8. The Petroleum Situation in the Caribbean • Total commercial electricity generation in 1997 in the 16 CEIS countries was approx. 23.000 GWh of which about 93 % came from fossil fuels resulting in 21Mio tons of CO2. • In figures of 1997, the increase from 2% to 5% would result in an avoidance of CO2 emissions of some 680.000 tons/a

9. Energy Consumption in the Caribbean Data does not include energy consumption for Bahamas, Belize, Cuba and Suriname • THE REGION CONSUMES ON AVERAGE 90 MILLION BBLS OF PETROLEUM EACH YEAR • BETWEEN 1993 AND 2002 ENERGY CONSUMPTION HAS GROWN BY OVER 36% • CONTINUES TO GROW AT A RATE OF APPROXIMATELY 4% PER ANNUM • THIS CAN BE CONVERTED TO TONS OF CO2 PER YEAR

10. Energy Import Costs vs Total Merchandise Import Costs • THE REGION SPENDS ON AVERAGE US$2.54 BILLION EACH YEAR ON PETROLEUM IMPORTS. • PETROLEUM IMPORTS REPRESENT SOME 21% OF ALL OTHER IMPORTS (DRUGS, FOOD ETC)

11. Energy Imports Costs vs Earnings • THE REGION EARNS ON AVERAGE EACH YEAR US$14.4 BILLION FROM EXPORTS OF GOODS AND SERVICES (Bauxite, sugar, rice bananas, gold, petroleum products, tourism etc) • FROM THIS US$14.4 BILLION, US$2.5 BILLION OR 17% OF EARNINGS HAVE TO BE USED TO PURCHASE ENERGY

12. WHAT ARE WE DOING ABOUT THIS

13. RENEWABLE ENERGY IN THE CARIBBEAN

14. Renewable Energy Projects in the Caribbean BARBADOS • 10 MW windfarm at Lamberts St Lucy to come on stream later in the year • Certification program of companies which manufacture solar water heaters from Florida Solar Energy Centre. • 38,000 residential solar water heaters. • Establishment of a Renewable Energy Centre for Training and exposition BELIZE • Challillo Dam to come on stream shortly. • Provide additional storage for existing “run of river”facilities • Will move output from 359GWhs to 440GWhs • 2MW hydroplant HydroMaya southern part of the country. • Belcogen – 13 MW bagasse co-generation plant from sugar factories. Will sell excess to grid

15. Renewable Energy Projects in the Caribbean DOMINICA • Have identified some 7 to 9 Wind sites. Need to move to data collection. • 7 MW of installed capacity already. • Participates in the GeoCaraibe initiative which is looking at development of geothermal energy in St Kitts, Dominica, and St Lucia • Draft geothermal Bill to look at regulation and legislation.). GUYANA • 12 MW windfarm at Hope Beach on the East Coast – late 2005 – early 2006 • 0.5 MW Moco – Moco Hydro power plant out of commission – experienced severely damaged penstock

16. Renewable Energy Projects in the Caribbean GUADELOUPE • 4MW Pilot geothermal plant since 1986 • 18.1 MW wind farm JAMAICA • 20 MW Wind farm at Wigton – Manchester • Expansion of Hydropower at Laughlands – St. Ann • Establishment of Policy for all Public Sector entities – schools, hospitals, Government Buildings needing hot water must use Solar Energy • US$10M Upgrade of Petrojam Ethanol Plant to begin production of Ethanol by late July 2005

17. Renewable Energy Projects in the Caribbean ST. LUCIA • MOU signed with company – United network of the Eastern Caribbean to look at the exploration of geothermal energy in St Lucia. • Participates in the GeoCaraibe initiative which is looking at development of geothermal energy in St Kitts, Dominica, and St Lucia. • Draft geothermal Bill to look at regulation and legislation. • St Lucia/ UNIDO project for Credit Unions to finance for the Domestic market. ST. VINCENT Plans to establish a 2MW windfarm based on studies showing sites in Myreau and Canuoan • Currently have a capacity of 5.2MW of hydropower. • Plans for expansion of 2 existing plants at South Rivers and Richmond to about 2MW.

18. Renewable Energy Projects in the Caribbean HYDR0 POWER • Has installed capacity of 25MW (Belize). • Has installed capacity of 57.4 MW (Cuba). • Has installed capacity of 7.6 MW (Dominica). • Has installed capacity of 21.5 MW (Jamaica). • Has installed capacity of 5.6 MW (St Vincent). • Has installed capacity of 189 MW (Suriname) WIND POWER • Have identified some 7 to 9 Wind sites. Need to move to data collection. Dominica • 12 MW windfarm at Hope Beach on the East Coast – late 2005 – early 2006 - Guyana • 10 MW windfarm at Lamberts St Lucy to come on stream later in the year- Barbados • 18.1 MW wind farm – installed. (Guadeloupe) • 20 MW windfarm at Wigton, Manchester - installed (Jamaica)

19. Renewable Energy Projects in the Caribbean SOLAR ENERGY • Certification program of companies which manufacture solar water heaters from Florida Solar Energy Centre.(Barbados) • 38,000 residential solar water heaters.(Barbados) • Establishment of a Renewable Energy Centre for Training and exposition (.Barbados). • Establishment of Policy for all Public Sector entities – schools, hospitals, Government Buildings needing hot water must use Solar Energy (Jamaica) • St Lucia/ UNIDO project for Credit Unions to finance for the Domestic market.(St Lucia). BIOMASS • Belcogen – 13 MW bagasse co-generation plant from sugar factories. Will sell excess to grid • US$10M Upgrade of Petrojam Ethanol Plant to begin production of Ethanol by late July 2005

20. Renewable Energy Projects in the Caribbean GEOTHERMAL • OAS/GTZ GeoCaraibe initiative which is looking at quantifying the resources and development of geothermal energy in St Kitts, Dominica, and St Lucia. • Draft geothermal Bill to look at regulation and legislation. (St Kitts, Dominica, St Lucia. • 4 MW Pilot geothermal plant since 1986. – (Guadeloupe) • MOU signed with company – United network of the Eastern Caribbean to look at the exploration of geothermal energy (St Lucia).

21. OTHER INITIATIVES • Caribbean Renewable Energy Development (CREDP) • Caribbean Energy Efficiency Project • The Caribbean and the Clean Mechanism Project

22. Caribbean Renewable Energy Development (CREDP)

23. OBJECTIVES IMPROVE BUSINESS ENVIRONMENT IN RE FOR THE PRIVATE SECTOR: • Private sector will only investment in RE projects if the energy policy environment is supportive. - Divert investments from oil / petroleum based energy sector towards RE investments through provision of incremental costs and other supporting measures. - Involve the utilities as key partners • Significant RE investment in the Caribbean • Utilities are key players in the energy sector

24. FEASIBILITY ASSESSMENT PHASE BARRIERS STUDY • EXAMINED BARRIERS TO RENEWABLE ENERGY DEVELOPMENT • BARRIERS WERE FOUND AT THE LEVEL OF • POLICY • FINANCING • CAPACITY BUILDING • AWARENESS/INFORMATION

25. IMPLEMENTATION / CO-ORDINATION • CARICOM Secretariat responsible • Project Management Steering Committee for oversight

26. FUND MANAGEMENT • An Investment Fund for project financing based on equity of the private sector and (partly concessionary) loans of the financial sector with a moderateinvestment volume of US$10M • A Financial Assistance Fund on a non-grant basis of some US$1.6M • A Technical Assistance fund on a grant basis. • A Loan Guarantee Fund for the protectionof the borrower

27. The Caribbean and the Clean Mechanism Project

28. The Caribbean and the Clean Mechanism Project • Power Sector Baseline Study • Capacity Building

29. POWER SECTOR BASELINE STUDY • Objectives: • Simplify the CDM Project review process and reduce • transactions costs. • Attract Investment to the Region • Contribute to the necessary infrastructure to support • project development.

30. POWER SECTOR BASELINE STUDY Rationale for a regional baseline approach vs an individual country approach • A smaller island states individually did not have the advantage of economies of scale. • A larger grouping of countries could attract larger investments to the region as a whole result of projects arising from CDM activities. • Most of the countries Power Sectors had similar generating histories, fuel use and technologies.

31. Capacity Building Three regional workshops were held to train Persons in baseline analyses and benchmarking: • St. Lucia • Grenada • Barbados

32. Caribbean Energy Efficiency Project

33. Caribbean Energy Efficiency Project OLADE/GEF/UNDP • Energy Efficiency Policy and Regulation • Commercial Enterprise Development • Awareness and Information Management • Training and Human Capacity Building • Financing Alternatives