International
Public Policy
Review
Confronting the Energy Security
Dilemma of the Caribbean
Stefan Dennis Dominic Affonso
IPPR Volume 6 Issue 1 (July 2010)
pp 104-129
International Public Policy Review • The Department of Political science
The Rubin Building 29/30 • Tavistock Square • London • WC1 9QU
http://www.ucl.ac.uk/ippr/
Confronting the Energy Security Dilemma of the
Caribbean
Stefan Dennis Dominic Affonso*
Introduction
Energy security, alternative sources of energy and renewable energy sources have
been of major importance to the Caribbean since the 1970s. Renewable energy is
replenished through natural processes such as tides, geothermal vents, wind, solar
power and rain. In a similar vein, alternative energy sources replace conventional
sources of energy, such as petroleum, natural gas and nuclear power, so as to avoid
their undesired side effects. Both renewable and alternative energy sources seek to
provide sustainable energy to consumers, be they residential, commercial or industrial, while reducing or, where possible, eliminating carbon emissions and ensuring
energy security.
The renewable resources listed above are all found throughout the islands of the
Caribbean. In 1979, the Caribbean Alternative Energy Programme produced a report finding that,
the Caribbean region as a whole has been particularly hard hit by the dramatic rise
in the price of petroleum in the past several years. Many of the countries are dependent for well over 90 percent of their energy needs on imported oil. This has had
particularly damaging influence on the balance of payments, on employment, and on
development plans of the affected territories, and these have been seeking measures
which might mitigate to some extent the economic hardship (Organization of American States 1979:1)
This sufficiently sets the framework for understanding the Caribbean countries’ vulnerable situation, especially given their lack of control over maintaining and securing energy resources.
* Stefan D D Affonso is a recent Master of Science graduate in International Relations.
His research interests are the foreign relations of Latin America and the Caribbean,
particularly related to China.
ENERGY SECURITY OF THE CARIBBEAN
105
The use of oil and gas compounds a complicated dependency on non-renewable resources. This is further exacerbated where the reserves of these resources are not
evenly distributed among states. Additionally, the use of these energies results in the
emission of greenhouse gases, which pose severe environmental threats in the form
of global warming and climate change. Taking this into consideration and,
given that the current overwhelming dependence on coal, oil and gas for power generation, heating and transport is likely to continue for some considerable time into
the future, there is need for increasing attention to be given to improving efficiency
and the development of methods for carbon sequestration (Harrison and Hester
2003:v).
However, despite the constantly growing demand and dependence on various types
of energy, many populations throughout the world do not have access to electricity. This reality reflects not only the unequal distribution of conventional energy resources, but also the unequal access to energy. Such inequality spurs remarks that “it
is unconscionable that in this age of a global, digitally-connected economy, fully 1.6
billion people – one in every four people living on the planet – do not have access to
electricity” (Callahan 2009:58). Energy security is about preserving and ensuring
sustainable energy sources and resources, and more importantly, it is about being
able to meet the increasing energy consumption demands given that, “the rate of
energy consumption is predicted to triple over the next 50 years or so, emphasizing
the need to develop novel sources with lower environmental impact” (Harrison and
Hester 2003:5). The rapid rate of increase is important and critical to understand
how to progress in the future. However, increasing energy consumption rates must
be counteracted by a limitless, or at least constant, energy supply. This situation will
inevitably be “adding further to security challenges, meeting the projected growth
in demand with diminishing, carbon-based resources simply is not a sustainable option, meaning that new alternative fuels and technologies will have to be developed
and commercialised” (Callahan 2009:58).
With respect to new alternative and renewable energies, it is commendable that
many Caribbean states have been making great progress toward achieving energy
security. The energy political economy has reflected unstable and unpredictable
trends given rapid shifts in either price or supply. One reality, however, is that the
demand for energy has not declined. The continued and persistent growth of any
country or economy is based fundamentally on energy. Essentially, all production or
manufacturing activities require electricity.
The energy context of the Caribbean states must be highlighted. All Caribbean countries have one common resource in overwhelming abundance: the sun. The huge
potential for harnessing solar energy in the region is unprecedented elsewhere. Caribbean countries are in this regard attempting to utilize a resource of limitless abundance, and with no undesired side effects. In particular, Barbados is leading the way
with solar technology and solar-powered water-heating systems.
Continuing with the contextualization of Caribbean nations, the access to solar power does not automatically mean that implementing an infrastructure to harness so-
106
INTERNATIONAL PUBLIC POLICY REVIEW
lar power is feasible. In some cases, countries prefer alternative sources. Dominica,
for instance, has a relatively small surface area but has exceptional geothermal resources available for exploitation. Also, St. Kitts and Nevis has unutilized geothermal
energy potential. In both instances, oil, coal and natural gas have been nonexistent
within the territory and energy security was dependent on the capacity to import
fossil fuels. The administrations of both islands have adopted policies to ensure
energy security without being vulnerable to international energy practices and by
maximizing the use of their given renewable energy.
The cases of Jamaica and Guyana are very similar in many respects. Both countries
have considerable landmass compared to other countries within the Caribbean region. Additionally, there are extensive waterways and watersheds in both territories,
which pose significant potential for hydropower. The countries also share the possibility for solar power to be exploited, as is the case across the region. There is also
exploration in bioenergy in both territories. It is important to note that Jamaica and
Guyana are independent sovereign states whose energy policies have arisen separately. Unintentionally, perhaps, there is one common element with all the energy
policies of the countries that have been mentioned, which is to achieve energy security while moving to alternative or renewable energy in a sustainable way.
In comparison to other Caribbean territories, Trinidad and Tobago has extensive oil
and gas reserves. These reserves have driven the economy for decades and continues to play a dominant role. This situation has advantages and disadvantages for the
country and its economy. The economy has gained from increases in prices for oil
and gas in the international energy economy. However, the economy remains pinned
to an energy sector open to unpredictable fluctuations, with little to no attention to
alternative and renewable energy options.
Spain is very similar to Caribbean countries, specifically in the context of being vulnerable to the volatility of the global energy economy. Furthermore, this is a country
where energy resources are nowhere near sufficient to meet the demands of the
population. Spain’s situation needs to be mentioned to highlight the reality that it
is not only Small Island Developing States (SIDS hereafter) that are exposed to the
harsh conditions of an energy dependent economy. Moreover, Spain is just as fragile
as Caribbean states when it comes to energy security and has been investing heavily
in solar power as a renewable energy source. The case of Spain is therefore deemed
a pertinent comparison for this study.
Energy security is of great significance to the current international political economy, and is fundamental to the existence of any state in the global economy, as some
form of energy must be utilized to drive the production and manufacturing sectors.
It is important to note that energy consumption is no longer limited to conventional
fossil fuels. For instance, hydroelectricity accounts for more than 20% of the world’s
electricity supply. It is clean and does not produce greenhouse gas emissions or other forms of air pollutants. In fact, the National Hydropower Association estimated
that hydroelectric generation avoided 77 million metric tons of carbon from being
emitted from fossil fuel generated in 1999. That is the equivalent of burning an ad-
ENERGY SECURITY OF THE CARIBBEAN
107
ditional 121 million tons of coal, plus 27 million barrels of oil, and 741 Billion cubic
feet of natural gas combined. So not only is hydropower environmentally responsible, it is economically viable. With the price of fuel at an all time high, hydroelectricity can reduce aggregate production costs. It has contributed to poverty reduction and economic growth in developing countries like Sri Lanka and the Congo. Sri
Lanka, which is an agriculture based economy like Guyana is benefiting from 70% of
hydroelectric power, down from 93% in 1994.
The purpose of this paper is to highlight the greater need for exploration of feasible
alternative and renewable energy options and the potential for these in the Caribbean. This is carried out through a study of the energy policies that Caribbean Small
Island Developing States (SIDS) have been implementing. Such a comparative analysis can only be achieved with somewhat comparable economies, especially those
where significant progress has been made in developing and adjusting the economy
to alternative and renewable energies. It is vital to consider the need to ensure energy security given the vulnerability and volatility of the global energy economy.
This has been demonstrated by the reality of the rapid and drastic fluctuations in the
price of petroleum, natural gas and methanol since 2008.
Within the parameters of this paper, the focus shall be on general renewable and
alternative energy projects and their potential. The study refers to many important
related mandates, such as the Kyoto and Montreal Protocols, however the primary
focus shall be directed to energy security. As a result of this, the case studies of Jamaica, Guyana, Barbados, Dominica, St. Kitts and Nevis, Trinidad and Tobago and, for
an alternative perspective, Spain shall be used to investigate the progress towards
achieving energy security.
Endogenous growth, Porter’s national Diamond
Endogenous growth is usually referred to as growth from within the system, most
often within a nation-state. Knowledge and technology are characterized by increasing returns and technological progress is a result of economic activity. In order to be
competitive, the emergence of new and progressive ideas must be complemented by
economic demand. Moreover, it is essential to be flexible when dealing with global
markets of hastening trends and changes.
The ability of a country to adjust to changing conditions determines the efficiency
and capacity to dominate in terms of market share and in absolute terms. As such,
the ability of a country to maintain the pace of progress, and keep ahead of changing
international trends, reflects the level of competitiveness in the international global
economy:
Before a firm can begin to manufacture any variety, it must learn the production
technique specific to that variety. If the product is a new one (i.e. not previously
available in the marketplace), then this learning represents innovation. If, instead,
the product already exists on the market, then the learning represents imitation.
In either case, the learning activity requires an expenditure of resources by the en-
108
INTERNATIONAL PUBLIC POLICY REVIEW
trepreneur (presumable more for innovation that for imitation), with productivity
parameters that vary by region. After a production technique has been mastered, the
firm can manufacture the chosen product according to a constant-returns-to-scale
production function (Grossman and Helpman 1991:1217).
The theory posits that labour is a constant input and that the investment in human
capital is vital to achieving growth. Some advocates of the endogenous growth theory suggest that, all innovation occurs in the North, and that knowledge acquisition
in the South is confined to imitation. If two Southern firms have copied the same
variety of consumer goods, these two will set prices equal to their marginal costs
and earn zero profits. So the second of the imitators could never justify bearing the
cost of reverse engineering. Therefore the only market structure that we need to
consider for Southern producers is one where a single firm (an imitator) competes
with a single Northern firm (the innovator) in the market for some variety (Grossman and Helpman (1991:1218).
An essential element of the endogenous growth theory is the need for the intervention of the state to encourage and support innovative and competitive policies. More
specifically, research and development must coincide with government legislation
to protect patents, copyrights and various forms of intellectual property. Essentially,
government has an important role to play as a facilitator of economic activity. According to Michael Porter, direct government intervention in the economy can restrict competition and government policies and regulations need to be both pragmatic and interventionist, and flexible when necessary.
Michael Porter’s National Diamond on national competitiveness that national prosperity is created and not inherited, whereby this prosperity accumulates through
constant increased productivity. This creates another level where enhanced productivity leads to increased competitiveness. According to Porter, productivity defines
national competitiveness. He outlines four elements of national competitiveness:
1. Factor Conditions – referring to the factors of production: skilled labour, land and
capital.
2. Demand Conditions – the nature of the home market demand for the services or
goods produced by a given industry.
3. Related Industries – interconnected firms, related industries and institutions that
evolve in particular areas.
4. Firm Rivalry – the general conditions governing how companies are created, organized and managed, and importantly, the nature of rivalry among them.
To Porter, maximum efficiency in these key areas is key to achieving national competitiveness. The investment and re-investment in research and development
would continue to promote competition and improve technological innovations.
The Dynamic Model of International Competitiveness was designed in the context of
Caribbean economies and markets. The Model was intended to address the competitiveness requirements of small, developing countries such as Trinidad and Tobago.
According to Dr. Debbie Mohammed, lecturer at the Institute of International Rela-
ENERGY SECURITY OF THE CARIBBEAN
109
tions, The University of West Indies, it is intended to provide a more realistic framework for assessing competitiveness in the manufacturing and particularly services
sector. Also, Dr. Mohammed suggests that central to the Model is the attainment of
Platform Competitiveness; National Competitiveness (Platform 1) and International
Competitiveness (Platform 2).
Platform 1, pertains to the national level, includes 6 key factors1)Domestic demand;
2)Entrepreneurs;
3)Government;
4)Factor Conditions;
5)Business environment;
6)Related industries.
This Platform Model improves on Porter’s Diamond, and enhances the framework
of the core arguments, making the former more applicable to the Caribbean context.
The Platform Model has included the role of entrepreneurs and government, which
are both essential to sustainable economic development among Caribbean nations.
Also, the model implies that national competitiveness is a prerequisite for international competitiveness and that the 6 determinants of Platform 1 influence both levels of competitiveness.
Platform 2 builds on the foundation set by the determinants of the national level.
The progression from national to international competitiveness utilizes;
1)
Service customisation;
2)
Alliances, Partnerships or Foreign Direct Investment (FDI);
3)
International Accreditation/ Certification;
4)
Service Quality.
The purpose of these models and theories is to outline the framework and determinants essential for economic growth and national prosperity. In this, application
will pertain to the energy sector of some Caribbean countries, to demonstrate how
the state has been making a concerted effort to increase and improve research and
investment in renewable and alternative energies, albeit for the primary purpose
of achieving energy security. Essentially, Jamaica, Barbados, Guyana, Dominica, and
St. Kitts and Nevis have realized that, since energy vulnerability must be reduced,
or where possible eliminated, the best way to achieve this is to exploit the cheapest
and most abundant natural resources at their disposal. It is important to underscore
the potential within Caribbean countries to have a monopoly, albeit perhaps temporary, in the world market in the realm of renewable energies. In this regard, some
countries have already made substantial progress in developing hydro power, geothermal, wind and solar power resources, to the extent that export of this energy is
conceivable in the near future.
110
INTERNATIONAL PUBLIC POLICY REVIEW
Barbados
The island of Barbados has been a leader in the region in relation to the implementation of renewable energy; specifically solar energy and by extension solar waterheaters. With a total land area of some 431 square kilometres and a total population
of approximately 273,500 (Association of Caribbean States 2008:18), Barbados is
certainly one of the smaller Caribbean countries that has been investing extensively
in renewable and alternative energies. This Caribbean country is typical in demonstrating how an unlimited energy source, the sun, can be harnessed and exploited
for macro- and microeconomic benefits. In 1994, the Barbados Plan of Action (BPOA
hereafter) was developed for SIDs. The BPOA sets out a framework whereby, the role
of the international community is outlined, including its role in providing access to
adequate, predictable, new and additional financial resources; optimizing the use
of existing resources and mechanisms in accordance with chapter 33 of Agenda 21;
and adopting measures for supporting endogenous capacity-building, in particular
for developing human resources and promoting the access of small island developing States to environmentally sound and energy-efficient technology for their sustainable development. In that context, non-governmental organizations and other
major groups should be fully involved ().
The populations of small countries are particularly vulnerable to natural disasters,
environmental degradation and climate change. Limitations also experienced by
small countries are a lack of resources and unfavourable economies of scale.
Ironically, the BPOA was designed in a country that was leading the way in the exploration of exploiting solar energy, leading to a situation where “in Barbados for
example, there are 50,000 units for a population of 270,000” (Jamaica Energy Policy
2005), which is by far more than any other Caribbean nation. This suggests that
geographic size is not an element that can pose a hindrance to the exploration of
solar energy potential. The use of solar energy in Barbados is unprecedented in the
region. There has been extensive research and development of this renewable energy source, which is also potentially a niche market for this Caribbean island to
dominate. The domination in this market is highly possible as, to date there has been
much work into the development of solar technologies including solar water heating (Barbados is the leader in the Caribbean in this technology). Today a reduced
amount of electric water heaters are imported into Barbados since solar water heaters are almost a standard feature in the construction of new houses. Additionally
solar crop dryers and solar stills, solar photovoltaic system has been used successfully at Harrison’s Cave, the island’s No. 1 tourist attraction to provide electricity
for lighting of the Cave. The current capacity accounts for 8% of the lighting in the
Cave and is used as a demonstration project for similar initiatives (Government of
Barbados 2003:19)
The Gross Domestic Product (GDP hereafter) of the island was estimated at $2,500
million (Association of Caribbean States 2008:18), considerably smaller compared
to other Caribbean states like Trinidad and Tobago, and Jamaica.
ENERGY SECURITY OF THE CARIBBEAN
111
The size of a Barbados’ GDP does not limit its capacity to research or to realize its
potential for energy security. Barbados finds itself, inadvertently, a leader in the region, while trying and succeeding thus far with attaining energy security. Despite
the great strides Barbados has made towards achieving energy security through solar energy development, there continues to be significant emphasis on alternative
energy as another feasible option to assist with achieving security. This is evident as,
according to the Draft Barbados National Energy Policy, Government is looking to
introduce a 10 percent ethanol to gasoline mix termed ‘gasohol’. Under the reform
of the sugar industry it intends for approximately 14.7 million litres of ethanol to be
produced annually to meet that requirement. The levels of ethanol content in the
gasoline are to be progressively increased over the 20-year design period. Recognizing that ethanol can be used in the production of biodiesel, Government has pledged
to encourage further investment in ethanol production.
Barbados consumes approximately 100 million litres of diesel annually. Government
has also proposed in the draft policy to mandate two percent biodiesel content for all
diesel-fuelled vehicles by 2012, increased to 10 percent by 2025. An estimated 4.5
million litres of used cooking oil annually generated can be converted into biodiesel.
Government has expressed the intention of providing incentives to the private sector for the development of the biodiesel industry. Barbados has estimated natural
gas reserves of 141.4 million cubic metres, with an annual consumption of 29.17
million cubic metres. With national supplies expected to run out in the next five to
fifteen years, Government has turned its attention to its oil-rich neighbour Trinidad
and Tobago as a source of natural gas. Cabinet recently approved the importation of
gas through the pipeline being constructed by Trinidadian private company Eastern
Caribbean Gas Pipeline Co. The pipeline is designed to deliver gas from Tobago to
Barbados, St Lucia, Martinique, Guadeloupe and Dominica. The Minister of Energy
and the Environment has stated that the increased volume of gas (between 30 million and 40 million cubic feet a day) would allow the national grid to expand in the
first five years to supply a further 13 000 households across Barbados with natural
gas, while guaranteeing security of supply to the Barbados Light & Power, which is
in the process of constructing an 80-megawatt generation plant at Trents, St. Lucy
capable of using natural gas.
A feasibility study was carried out to build a wind farm in the north of the island.
Barbados Light and Power projects that the facility could generate as much as 26
million KWh annually. Given the current price of fuel imports, the facility could save
$4.6 million a year. A Fuel Cane Power Generation feasibility assessment was also
carried out. A 30 MW plant could generate 263 million KWh and reduce the fuel
import bill by US $29 million per year. The Draft Barbados National Energy Policy,
2007, outlined that the government is looking to increase energy efficiency by promoting energy efficient technologies and usage. Additionally, the government, in accordance with following the policy’s mandate, has recently turned its attention to
energy conservation and efficiency in sectors of the economy to promote its vision of
“green economics”. There are a number of initiatives outlined in the 2007 document,
which will include incentives to manage and minimize solid waste, while encourag-
112
INTERNATIONAL PUBLIC POLICY REVIEW
ing and promoting recycling and separation. There is also the integration of promoting “Green” building techniques and standards, making buildings and designs more
eco-friendly and enhancing energy sustainability. The use of alternative fuels and
renewable energy with tax incentives are a major element in the list of initiatives.
They are vital in increasing technologies that are most capable of reducing and, perhaps, eliminating the energy vulnerability of Barbados. The government has found it
necessary to lead by example and, as a result, the policy mandates the public sector
to ensure and improve energy conservation. This is essential to the progress and
sustainable development of the economy and society as a whole.
The government has made commitments, in the National Draft, to implement economic incentives to promote energy conservation and efficient energy use in order
to enhance the efficiency of renewable energy sources. Also, the government seeks
to introduce standards for efficient energy use in technologies in order to regulate
consumption in the sector. There is also a initiative to encourage the large-scale generation of energy using renewable sources and promote research and development
into renewable energy.
These initiatives and commitments apply to a plethora of options Barbados is exploring as some of the projects currently under consideration are listed as:
1. 16MW in wind turbine farms at good wind sites in northern Barbados.
2. A 3 MW ocean thermal energy conversion (OTEC) plant.
3. A 10 MW waste combustion plant.
4. A 2 MW wave power plant (consultations have begun with a UK company who
have just installed a 500 kW plant on an island off the west coast of Scotland)
5. 2 MW of solar PV distributed around the island.
6. Setting up manufacturing facilities to produce high purity silicon for the computer
chip and solar PV industries. (The possibility of a joint venture with Trinidad and
Guyana is being explored), (Government of Barbados 2003:26).
The research and development of renewable energy is fundamental to the endogenous growth theory, making the theory substantially applicable in many respects
to the context of Barbados. Considering that Barbados is also a SIDS, there is a great
need for research and development through investment in education and the application of skilled resources to produce higher value-added goods. Although small
economies generally do not have either the capacity or the resources to engage in
research and development, Barbados is making great strides in advancing itself in
the knowledge-driven global economy. This contextual transition allows this relatively small economy to transform higher value-added activities which evolve into
sustainable development and growth. This is all evidenced where the government
has acknowledged its efforts and developments in the field of solar water-heating
systems and, “the government now says that it will seek to promote and export the
solar hot water system (SHWS) model to the rest of the region” (Keith 2007). There
are exceptional benefits to renewable energies, not only in terms of achieving energy
and economic security, but also by providing a product and service in a niche market, where the SIDS are no longer vulnerable to international trends, but can lead the
ENERGY SECURITY OF THE CARIBBEAN
113
way and leapfrog other countries, with new technologies.
Dominica, St Kitts and Nevis
The government of Dominica has realized the potential of the natural resources
within its Caribbean context and has been creating the necessary infrastructure to
sustain itself. This small island covers some 751 square kilometres with a population
of near 71,460 (Association of Caribbean States 2008:22) .The exorbitant expenses
on fossil fuels for energy has been unnecessary given the abundance of geothermal
energies available. Moreover, the unpredictability of conventional fuel prices and
supply, together with the aforementioned vulnerabilities of island states, led to the
need to explore the most feasible renewable and alternative energy options within
Dominica to reduce and, for the most part, eliminate the energy import cost. The
country of Dominica is not markedly wealthy as in 2004 the GDP was an estimated
$285.7 million (Association of Caribbean States 2008:22) . There have been attempts
to reduce the fuel import costs of the country. Research and feasibility studies have
found that,on the Caribbean island of Dominica all electricity production is based
on imported fossil fuels, although the island had access to unutilized geothermal
resources. In the years 2007 electricity production was 86 GW and therefore it is estimated that a 15 MW geothermal power plant could cover the electricity consumption of the island (Ministry of Foreign Affairs).
This pragmatic approach has been in progress before 2007, and has made contributions where, “about 50% of the power supply which came from hydroelectric
sources, as in 1991, the Trafalgar Hydroelectric Power Station became operational.
Additionally, in 2000, 67 million kWh of electricity were produced, 47.8% from fossil
fuels and 52.2% from hydropower” (Government of Dominica 2006). In this regard,
contextualization is critical. Although Dominica does not have conventional energy
(oil, gas or coal) there is an abundance of both solar and geothermal energy. In this
instance, feasibility studies reflected that there was greater cost-benefit analysis to
venture with the geothermal energy option. This, however, is not to deny that Dominica still has unlimited access to solar energy.
To develop the hydropower resources of the country, Dominica has decided to partner with Iceland as Iceland’s Pilot Project participant. The partnership with Iceland
is practical and holds great potential, considering Dominica has the unrealized potential of geothermal energy and Iceland shares the expertise of harnessing and exploiting this geothermal energy capacity. For Dominica, this presents the prospect of
complete energy self-sufficiency. This is evidenced where, “Dominica has significant
geothermal resources and Iceland has longstanding expertise in using this sustainable energy source for economic, social and environmental benefits” (EDIN 2009). In
this regard, “the partnership with Dominica will build on Iceland’s proven model of
transition from a fossil fuel dependent economy to a clean energy economy” (EDIN
2009).
Dominica leads the way in renewable energy, more specifically geothermal energy.
114
INTERNATIONAL PUBLIC POLICY REVIEW
The agreement with Iceland will create a positive result for the island of Dominica
by improving human capital and resources and creating sustainable employment
in a niche sector. Most importantly, as stated in a Memorandum of Understanding
signed April 6, 2009, an important aspect of the initiative is capacity-building within
relevant Dominican government institutions. With this purpose in mind, the United
Nations Geothermal Training Program (UNU-GTP) in Iceland and short courses held
on various continents in geothermal training are open for qualified candidates from
energy institutions in Dominica (EDIN 2009). This secures not only the energy sector of the Dominican economy, but also enhances the human resources of the country and, by extension, the region.
In Dominica, it is evident that energy security is high on the national agenda. Moreover, there is a certainty that energy security can be guaranteed by exploiting the resources of our given context to ensure, by extension, economic survival. On 24 April
2009, the Minister for Public Utilities, Energy and Ports, Charles Savarin, realised
that energy security also had great potential for enhanced economic prosperity. The
minister spoke of a niche market, of renewable or alternative energy, in other island
states. The minister pointed out that the challenge is toturn away from the established precept of seeing electricity as a public service good to be guaranteed and
subsidized by Government, and treat our rich endowment in renewable sources of
energy, more particularly hydro, geothermal and wind, as a resource to be harnessed
and exploited for the production of electricity not only for local consumption but for
export to neighbouring islands as well” (Government of Dominica ) .
The partnership with Iceland is a strategic move to gain exceptional technical and
professional expertise, advice and training in the most feasible options for exploiting
geothermal energy. Iceland has been in the field of harnessing hydropower and geothermal energy since the 1970s, when the oil crisis struck Iceland in 1973 and 1979,
Iceland changed its energy policy, deemphasized oil, and turned to domestic energy
resources using hydropower and geothermal. As a result, Iceland is the world leader
in the use of renewable energy- 81% of the nation’s primary consumption and 99%
of electricity consumption is now from renewable (EDIN 2009). This is necessary for
understanding the reality that energy security is not a far-fetched concept that can
be successful only in countries of a specific region.
In St. Kitts and Nevis a list is being compiled of energy options that are being utilized
alongside each other to ensure energy security. In the move towards determining
feasibility, reducing dependence on imported energy and lowering, or eliminating,
energy costs, “Nevis’ geothermal energy exploration may provide a solution to high
energy prices” (Caribbean Net News ). The Nevis Geothermal Power Plan Project
will fund the creation of a geothermal power plant located at Spring Hill, Nevis. This
plant will use two 5.8 MW TurboMax 1000 single flash condensing turbines, along
with other necessary apparatus to produce 10 MW of electrical power. The Nevis
Electrical Company (NEVLEC) will purchase the power produce by the project and
redistribute it across the island.
ENERGY SECURITY OF THE CARIBBEAN
115
This is essential to the islands as the 10 MW geothermal plant will be the first such
power plant in the eastern Caribbean and will make Nevis the first 100 % green
island in the world. The acquisition of this technology and pragmatic approach to
energy security will ensure the population of Nevis low cost, reliable, clean, renewable energy. This development on the small 269 square-kilometre island will be extremely beneficial to the population of some 47,318’ . This will set St. Kitts and Nevis
apart from any other country in the region by creating a fully independent energy
economy and having a significantly reduced carbon footprint.
The context of St. Kitts and Nevis is very appropriate for the purposes of this research paper. The integration of this new energy in a SIDS, specifically in relation to
the endogenous growth theory, establishes a vital framework for other island states.
The company that is operating and managing the geothermal project is West Indies
Power (Nevis). This arm, operating in Nevis, is a subsidiary of West Indies Power
Holding B.V. The subsidiary arm commenced geothermal explorations and drilling
in Nevis in 2008. The latter is an independent power producer which specializes in
the exploration and development of geothermal energy in the Caribbean.
According to Dr. Denzil Douglas, Prime Minister of St Kitts and Nevis,
I am very, very impressed, very hopeful, that one of the serious challenges that we
face as a people, as a nation, in the escalating high energy prices, that we may be able
in the not too distant future, to provide a solution to this problem through the possibilities of geothermal energy the eventually that eventually will come to the island
of Nevis and will be able to be I am sure, shared by the people of St. Kitts and Nevis
generally and the people of the Caribbean islands, whom I am sure will benefit from
this very important exploration (Caribbean Net News ).
St. Kitts and Nevis has provided energy security given the most practical route available. Solar energy is limitlessly available as well, but in this instance, geothermal
energy is entirely sufficient to meet the demands and requirements of the country.
Guyana
It is important to note the invaluable role of new, environmentally friendly and efficient energy supplies. In its drive for sustainable development, Guyana has formulated a National Energy Policy (NEP) that promotes the substitution of imported fossil fuels and the increased use of renewable sources. Guyana covers a large land mass
of some 216,000 square kilometres with a population, as of 2004, of some 767,000
(Association of Caribbean States 2008:24). Additionally, in 2004, GDP was estimated at near $788.5 million. Despite the limited financial capacity of the country, there
has been significant headway towards promoting energy security in both fossil fuels
and renewable and alternative energies. New energy legislation has paved the way
for the establishment of a new Guyana Energy Agency with overall responsibility for
coordination among various energy related departments and units.
The exploration of renewable energies has been studied for a long time in Guyana.
The extensive waterways have been seen as a constant and underutilized energy
116
INTERNATIONAL PUBLIC POLICY REVIEW
resource available to the country. In attempts to realise the hidden potential of Guyana’s rivers and watersheds,since the 1970’s, there have been numerous attempts at
hydropower development in Guyana. In 1976, Montreal Engineering Company limited provided a report on the Kamaria hydroelectric potential located on the Cuyuni
River. The report showed an upstream capacity at Oko Blue of 180 MW. In 1974,
a Yugoslavia Engineering Company ENERGOPROJEKT did a comparative study between an Upper Mazaruni Project site and a Kamaria site, which showed a combined
installed capacity of 570 MW. A 1976 study funded by the United Nations identified Turtruba on the Mazuruni River with an output capacity of 1100MW. The Moco
Moco hydro project, located in the Moco Moco village in Region 9, which was sponsored by the Chinese government, is languishing from neglect and inefficiency. Then
there is the joint operation potential of the Kabalebo hydro- project on the Kabalebo
River, which was explored by the Surinamese Government in 1971. Building dams
for this project entails altering the flow of the Corentyne, upstream at the mouth of
the Kabalebo River, a disputed area. The Government of Guyana should re-engage
the Government of Suriname to realize optimum benefit from this project. GAPE estimates that Guyana has a hydropower potential of 7000MW.
In all this, Guyana has an exceptional capacity to produce hydropower with its resources. Guyana has a huge landmass, limited GDP, but abundant hydropower potential. This continues to be mentioned alongside the solar power energy that is also
available. In Guyana, there are a number of energy areas that are being explored. In
2001, the Guyana Energy Agency stated that renewable energy is being examined
comprehensively, especially in hydropower and eco-generation. Additionally, the
2001 statement made the proposal that solar energy can be used to deliver electricity in remote interior areas and that renewable energy is more affordable and more
environmentally friendly.
In this respect, Guyana is attempting to advance one step closer to utilizing its indigenous resources, while reducing the national oil bill given that the government
spends over U.S. $100 million per year on the import of fuel. National energy projects
that are related to development and the provision of sustainable energy resources
and systems include:
1 “Amaila Falls Hydropower project–a proposed 100MW facility with the National
grid as the main load centre located on the Kuribrong River. The project is currently awaiting a power purchase agreement.
2 Turtuba Hydropower Project- a potential 200-400MW facility to be located on the
Mazaruni River and has the potential to either export power to Brazil or the Caribbean island chain, or supply Guyana’s bauxite/aluminium industries.
3 Delta-Caribbean Wind Farm Project –a proposed 7-12MW-wind farm project
along the coast of Guyana.
4 Guyron Wind Energy - Guyron has been granted a MOU by the government to conduct wind studies at eight locations in Guyana.
5 Biomass Energy Farm Project- a Guyana Energy Agency project that links between
energy and natural resource management.
6 Cogeneration at the new Skeldon Sugar Factory - the construction of a new sugar
ENERGY SECURITY OF THE CARIBBEAN
117
factory that will include cogeneration facilities for the combined generation of
heat and power” (Government of Guyana 2004:41).
To govern and guide the country in a sustainable direction, Guyana has formulated
a National Energy Policy (NEP) in which the basic core idea is the substitution of
imported fossil fuels through the promotion and increased use of renewable sources
of energy with which Guyana is well endowed. Recognizing the vital link between
energy and development, the NEP administers short, medium and long term technological options for satisfying energy demand. Guyana is well endowed with renewable energy resources including hydropower, biomass, solar, wind and biogas. The
NEP reviewed energy supply mixes and recommended a shift toward further use of
renewable sources of energy (United Nations).
The progress Guyana has made given its limited financial resources must be acknowledged. Furthermore, the land mass of Guyana is both a benefit and a hindrance.
Guyana’s large territory holds many resources that remain untapped. However, this
large area is a challenge to ensuring energy security in even remote villages. The
energy sector finds the Institute of Applied Science and Technology (IAST hereafter)
intensely involved in the effort to draft an agro-energy policy for Guyana. Since 2006
the institute has begun an aggressive project targeted at the production of biodiesel
on a commercial basis in Guyana. The objective is to foster the adaptation of biodiesel and feedstock technologies, to improve the feasibility so that by 2020 the country
would derive 65% of its diesel demand from agricultural feedstock. Essentially, the
institute’s progress, “marked the first time that biodiesel has been produced, tested,
and implemented at commercial levels in Guyana – a seminal achievement” (IAST ).
According to the IAST, partnerships are vital to achieving and ensuring success in
various ventures. In order to produce, test, and advertise the benefits of the new
technology, the IAST has partnerships with a number of private companies and government institutions.The IAST and MACORP entered into a ‘Memorandum of Understanding’ to test the biodiesel produced on heavy duty machinery distributed by the
company. Furthermore, MACORP donated at the beginning of this project, some 10
barrels of methanol to the project, at an approximate cost of GUY$300,000. Banks
DIH ltd. and IAST entered into a partnership to utilize the used vegetable oil from
Banks food service and food retail operations. This partnership has existed since
2006 and the IAST continues to process used oil from Banks DIH, which would have
normally have to be composted into waste, into useful, high quality biodiesel. IAST
and the National Agricultural Research Institute (NARI) enjoy a partnership aimed
at a collaborative development of biodiesel and bioethanol feedstock. In particular,
the two sister agencies have an active collaboration in the cultivation of improved
strains of Jatropha Curcas (Physic Nut) and soya bean oil, both for the production
of biodiesel. Additionally, the two agencies collaborate on the technical due diligence of new feedstock for the production of biofuels which are proposed by investors wanting to invest in this sector in Guyana. IAST and the Guyana Energy Agency
(GEA) collaborate on biofuel matters and on energy conservation and solar energy
projects, both from regulatory and good practices perspectives, as well as on actual
118
INTERNATIONAL PUBLIC POLICY REVIEW
pilot projects (IAST ).
The collaboration of IAST along with its own research into alternative energy options
for Guyana reflects the dynamic approach the country has adopted. The Government
is exploring alternative and renewable energy in the context of the country’s endowments and also researching more indigenous methods. It is crucial to understand
Guyana’s emphasis on ensuring energy security by utilizing and maximizing the resources accessible. Guyana’s success thus far has been due to the relentless research
and exploration in alternative and renewable energy, despite its financial impediments.
Jamaica
The island of Jamaica has wealths of potential in the realms of renewable and alternative energy. This is not withstanding the reality that “energy represents a fundamental input for modern economies and social life. Jamaica has been almost entirely dependent on imported petroleum as its primary source of energy throughout
its modern history” (Government of Jamaica 2009 ). Jamaica has been vulnerable
to capricious oil prices and supply. This situation has encouraged a move towards
achieving energy security by means of a variety of choices. These choices complement each other, essentially resulting in two situations: firstly where energy security is achieved and, secondly, where the cost of energy, and by extension energy
imports, is significantly reduced.
In the case of Jamaica,the price of fossil fuel, a traded and exhaustible commodity,
is highly volatile and responds sensitively to factors other than supply and demand
balance. On the other hand, the cost of harnessing energy from renewable sources
is influenced largely by the initial high capital investments as well as uncertainties
with respect to constancy in availability. As the price of fossil fuels increases and,
with significant technological advances in harnessing the renewables, energy supply systems that complement fossil fuel consumption with energy from renewable
sources become more attractive (Jamaica Cabinet 2005 ). There has thus been a
progressive and determined approach to ensuring that exposure to the international
energy economy is reduced or, where possible, eliminated. This must be done in
a framework in keeping with international obligations to reduce carbon footprints
and greenhouse gases. As such, there has been significant emphasis on bio-energy,
hydropower, solar and wind power.
In June 2007, the Ministry of Industry, Technology, Energy and Commerce (MITEC
hereafter) presented a report on the renewable energy sources being explored in
Jamaica. The report found that in the period 1998-2002, there was an increase in
energy costs from US $316 million to US $640 million. Additionally, in 2004, the cost
of imported petroleum totalled more than US $1 billion, making the energy cost the
second largest user of foreign exchange after debt servicing.
Wind power in Jamaica is harnessed on a commercial basis through wind farms. A
wind farm is a collection of wind turbines in or around the same location used for
the production of electric power. Individual turbines are interconnected with a me-
ENERGY SECURITY OF THE CARIBBEAN
119
dium voltage power collection system and communications network. Essentially, the
individual wind turbines produce electric power that is harnessed under a central
collection and distribution system. MITEC has highlighted that in Jamaica, the largest wind farm is Wigton, which cost US $25 million to construct. This farm has the
potential to generate a maximum capacity of 20.7 MW, and a minimum output of 7
MW. This project was completed on 30 April 2004 and since then has accrued substantial benefits economically and environmentally.
This is a prime case study demonstrating the diversification of the energy sector
while preserving local control. This is illustrated with the Wigton wind farm working in collaboration with the Jamaica Public Service Company Ltd (JPSCo. Ltd). The
constant research and innovation in the exploration and implementation of renewable energies reflects the relevance and application of the endogenous growth theory
in the island. The MITEC Report ventured into the sphere of hydroenergy, which is
thought to hold exceptional potential in Jamaica. The 2007 Report estimates that the
generating potential is some 114 MW, whereas the installed capacity is approximately 24 MW, which accounts for almost 4% of total electrical capacity. With regard to
the potential for hydroenergy, Jamaica has many hydropower stations, including Upper White River, Lower White River, Roaring River, Maggotty Falls, Constant Spring
and Rio Bueno B along with others have a capacity ranging from 3.8 MW to 0.6 MW.
The MITEC Report of June, 2007 stated that bio-energy is energy derived from plants
and animals sources and that biomass is primarily extracted from bagasse, charcoal
and animal dung. Methane and Ethane are the main types of biogas. As such, biomass decomposes to produce biogases. MITEC realized that biogas in Jamaica has
been under-utilized, however there is still significant potential which has not yet
been fully exploited as, “current technology makes this process inefficient” (Jamaica
Gleaner News 2007:15). The use of biogas competes with the use and accessibility of charcoal and firewood, which is critical to rural households and the hospitality sector in Jamaica. The report listed that categories of biogas activities; farms,
schools and residences. These have had varying results, from producing 120 cubic
metres, in volume of biogas, to 20 cubic metres.
Jamaica’s domestic and economic trends have not restrained the country from moving forward in terms of ensuring energy security. As a matter of fact, there has been a
recent move to exploit the commodity product, sugar cane. This reflects the dynamic
and responsive nature of this Caribbean island to move to more indigenous alternative energy sources to achieve its goals. Moreover, sugar has been a critical element
throughout the history of the Caribbean and, “since the Caribbean island-nations
have had sugar industries for generations, it is only natural that they should also
jump on the ethanol bandwagon. Jamaica has been the leader in this regard, with
100 of its service-stations being converted to provide a 10 per cent ethanol blend
in conventional gasoline from 2008” (O Hopkin 2008:56). This demonstrates the
versatility of the government and diversification of the economy, using conventional
products to satisfy contemporary needs and requirements.
120
INTERNATIONAL PUBLIC POLICY REVIEW
Jamaica is maximizing its potential for extracting revenues from its international
obligations. In this instance, Jamaica has ratified the Kyoto Protocol which contains
a Clean Development Mechanism (CDM hereafter) where income is generated from
reduction in carbon emissions. The mechanism’s function is demonstrated as,
under the Kyoto Protocol, the Clean Development Mechanism (CDM) allows for countries to trade emissions reductions to meet their targets. As a result, Wigton Wind
Farm Limited is able to trade the emissions reductions saved by operating the wind
farm, thereby allowing for a secondary income stream. Thus the project has both
environmental and financial benefits (Wigton Wind Farm ). The immense benefits
of the CDM were cemented on 13 December 2005, when Wigton Wind Farm Limited
signed an agreement with the Corporacion Andina de Fomento (CAF), a multilateral
development bank, for the sale of Certified Emission Reduction (CER) to the Netherlands government. According to the agreement, which runs through the period April
2004 to December 2012, every ton of carbon dioxide saved has a sale price of €5.5
and will amount to total savings of some US $3.1 million over the period. “It is projected that an effective efficiency and conservation improvement programme can
reduce Jamaica’s oil import bill by US$150 million a year by 2015. An appropriate
fuel switch can improve these savings by another US$600 million per annum” (Mian
2008).
Under Vision 2030, Jamaica will diversify its energy supply to increase energy security and to contribute to the cost efficiency of the country’s energy sector. The
country has realized its dependence on a commodity with unpredictable price fluctuations, unstable supply and also hazardous effects on the environment. Jamaica
has made laudable efforts in its attempts to keep to international obligations and
also to pursue its own national development agenda. The island state holds exceptional potential and according to Mr. Conroy Watson, Senior Director for Energy in
the Ministry of Energy in Jamaica, “We are very blessed in terms of when you look
at the colder countries up north. We have a lot more solar exposure than them, and
they make greater use of solar energy. We should take a leaf from their book.”
Spain
Spain encompasses a total land area of 504,782 square kilometres, with a population of approximately 40,525,002 persons and an estimated GDP of USD $1.683 trillion (CIA World Factbook). Spain’s economy, population and land mass are all much
larger than any single Caribbean country. However, although there is extreme difference in size, there is far-reaching similarity when it comes to energy vulnerability.
Throughout Spain’s recent history this weakness has been caused by uncontrolled
fluctuations in energy supply and prices, especially with oil and gas. This is compounded by the reality that, Spain is poor in energy resources, with the exception of
coal. Rapid industrial growth has intensified the problems caused by insufficient oil
reserves, dwindling supplies of easily accessible high-quality coal, and inadequate
water for power generation. Until the early 1980s, Spain increasingly depended
upon imported petroleum, and overall energy consumption continued to grow in
the 1973-79 period. Following adjustment to a slower rate of economic growth and
ENERGY SECURITY OF THE CARIBBEAN
121
to the changed energy market of the 1970s, Spanish energy consumption declined in
the early 1980s (US Library of Congress). This reflects an important element of this
paper, emphasizing that in order to achieve and sustain rapid industrial growth, energy is a fundamental factor. The impetus to sustain this rapid industrial growth in
Spain has driven the renewable energy initiative in order to satisfy energy demand
and also reduce the energy import bill.
Spain’s major source of energy has been largely imported petroleum, accounting
for some two-thirds of the country’s primary energy requirements in the 1970s and
mid-1980s. However, after 1985, there was a move towards natural gas consumption in order to reduce dependence on petroleum, saving Spain billions of pesetas.
This came about when,in order to reduce Spain’s dependence on imported oil, PEN
encouraged natural gas consumption. Efforts to redirect the use of fuels were successful, and in the 1980s the consumption of natural gas increased faster than that
of any other fuel. Total natural gas demand doubled between 1973 and 1984, and
in 1987 it accounted for 3.85 percent of all energy consumption. Energy planners
hoped to increase this share to 7 percent by 1992 (US Library of Congress).
It is important to understand the recent history of Spain to appreciate the context
of the problem. In this respect, the country is vulnerable to international shocks
and volatility. Additionally, the scenario pertaining to Spain’s energy security has not
been altered much since the 1970s and 1980s where in 2005, 80 percent of energy
consumption has to be met from imported sources. Spain imports approximately
64 percent of the coal, 99.5 percent of the oil and 99.1 percent of the gas it uses.
Moreover, oil accounts for around 50 percent of primary energy consumption. The
strategies defined for the energy sector have been shaped by the international commitments of the European Union as a whole, and those of Spain in particular relating
to energy supply and climate change. Promoting the use of energy from renewable
sources plays a fundamental role in meeting both commitments (Gil and Lucas ).
There has been a persistent approach to reduce energy dependency on imported
fuels and this continued when, on August 26, 2005 the Spanish government approved the new Renewable Energy Plan (Plan de Energias Renovables, PER), which
supersedes the Renewable Energy Promotion Plan, which dates back to 1999. The
overall aim of the new Plan is to make it possible to achieve the target of 12 percent
of primary energy being met from renewable sources by 2010 and to do so it sets
more ambitious objectives in those areas that have been developing successfully
and establishes new measures to support technologies that have not yet managed to
take off. Renewable energy sources contribute to reducing energy dependence and
increasing security of supply. Moreover, the development of renewable energy can
make an active contribution to job creation, generally in less favoured and sparsely
populated areas (Gil and Lucas ).
The government has involved financial actors in order to realise its goals and has requested that the energy industry fund 77 percent of the overall cost for implementing the renewable energy plan. Also, there are requests to the private sector indus-
122
INTERNATIONAL PUBLIC POLICY REVIEW
tries to contribute 20 percent. The difference in cost will be funded by public money.
With all this, tax incentives will be offered for the use of ecologically sound fuel and
for the installation of plants generation electricity with renewable energy sources.
The plan puts the emphasis on renewable energy sources such as wind (raising the
13,000 MW target for the capacity of wind-powered electricity plants set by the previous government, to 20,155 MW), solar energy, biofuels and hydroelectricity (Euroresidentes ).
There is a new dimension to energy and energy security in the current international
energy economy. There is an increasing number of nations that are investing in research and infrastructure to keep abreast with the technological advancements of
the energy sector. The concept of energy security is no longer farfetched. This sector
creates jobs and also ensures survival in a rapidly mutating global community. According to the president of the Spanish government, José Luis Rodríguez Zapatero,
we are currently facing a third economic revolution, a revolution which, after the
industrial and technological revolutions, will consist of the transition from an economy dependant on carbon to an economy based on renewable energy.
According to a study about renewable energy by the Reference Centre of the Union
Institute of Work, Environment and Health (ISTAS), this energy provides work for
188, 682 people in Spain, and 89,000 of those directly. The renewable energy sector
is growing in Spain and according to official data in the last four years, the production of renewable energy has increased by 50% (Sanchez ).
Trinidad and Tobago
In Trinidad and Tobago, “the petroleum industry is central to the economy” (Association of Caribbean States 2008:35). In 2004, the country’s GDP totalled some
$12,210.8 million, and a growth rate of 6.5%. Energy security relates to the preservation and maintenance of energy consumption patterns and markets. The nature
of energy security is to ensure economic competitiveness and, furthermore, sustainable economic survival.
In the case of…Trinidad and Tobago, which is self sufficient in both oil and gas, it refers to its ability to be able to sell refined petroleum products to a long-established
Caribbean market. One-third of the 160,000 b/d output of its state-owned Petrotrin
refinery is gradually being pushed out of that market and being replaced by supplies
from Venezuela, under an arrangement called PetroCaribe. Venezuela now has preferential supply deals with 17 Caribbean and Central American states for supplying
petroleum products and, in a few cases, crude, in response to their need for “energy
security” on the supply side of the world in the face of record high oil prices… (Callahan 2009:58).
This is linked to an essential element: the price of the manufactured commodity.
Whether or not export markets are secure and supply is constant, this does not guarantee stability in price of the product. In 2007, the Ryder Scott report assessed the
ENERGY SECURITY OF THE CARIBBEAN
123
gas reserves of Trinidad and Tobago and concluded that some 12 years of known
reserves were left. However, in February 2008, the vice president of the National
Gas Company (NGC) stated adamantly that there were an estimated 50 years of reserves left to be exploited. In either scenario, be it either 12 years or 50 years, the
price of oil and the vulnerability of this price stability was the major element that
was consistently omitted in each argument. In mid-August 2007, oil prices were in
the vicinity of USD $70 per barrel, and less than one year later, in July 2008, crude oil
soared to USD $144 per barrel. By November, 2008, oil prices dropped to less than
USD $52 per barrel of crude oil. The drastic variations in oil prices have highlighted
that supply is not the only issue.
This is not, however, to suggest reluctance to invest in the energy sector. The investments by the Government continue in the conventional areas of oil, petroleum,
natural gas, methanol and ammonia. To buttress this, in 2008, the Minister of energy,
Conrad Enill, announced in December that energy projects approved by the government before the onset of the global credit crisis will proceed as planned. The stateowned National Energy Corporation (NEC) plans to proceed with construction of its
US $ 150 m Point Lisas SE industrial estate and port in 2009, as well as its US $ 80 m
port in Galeota, in south-east Trinidad. Other projects which are scheduled to move
ahead in 2009 include the US $800m Alutrint (Trinidad) smelter, the Methanol Holdings (Trinidad) ammonia-urea-melamine project (under construction since 2006),
the US $2.2 billion Essar (India) steel complex and the US $240 m CariSal (Trinidad)
caustic soda and calcium chloride plant (Economist Intelligence Unit 2009:20).
In this vein, the government of Trinidad and Tobago has embarked upon a comprehensive and extensive sustainable development program in a comprehensive
document titled “Vision 2020”. However, as comprehensive as this document is,
there is an essential area that is not sufficiently addressed: renewable and alternative energy. A simple illustration of this is that the term “alternative energy” is
mentioned twice in the energy section of the document, while “renewable energy” is
mentioned three times. Additionally, the word “solar” is mentioned once, while the
term “hydrocarbon” is referenced 37 times. This is evidence that diversification of
the energy sector into hydropower, solar or geothermal infrastructure to improve
energy security, away from oil, petroleum and natural gas, is not currently a major
or overwhelming concern. The economy of the country continues to pivot unstably
on the volatile petroleum and natural gas-based energy sector, where prices are not
controlled or determined by domestic production levels. The purpose of the policy
framework paper is to evolve the oil and energy-based economy to a knowledgebased economy. This necessitates the demand to preserve the energy sector while
expanding and not solely evolving. Economic evolution is resolutely required in T&T,
however it is certain that this must no longer result in the demise of our economic
lifelines- petroleum and natural gas.
In Trinidad and Tobago the petroleum sector is vital to the country’s GDP, foreign
exchange earnings and Government revenues. In this vein, it is necessary to understand the implications this sector has on sustainable development in the country.
124
INTERNATIONAL PUBLIC POLICY REVIEW
The Government, through the Ministry of Energy and Energy Industries (MEEI), has
been pursuing a number of initiatives in the context of its sustainable development
goals and objectives. The foremost initiatives are:
• “Creating a facilitative environment for the development of alternative energy
projects including renewable energy projects.
• Promoting compressed natural gas (CNG) as an alternative fuel to replace, as far
as possible, diesel from the transportation fuel mix. Special programmes to push
CNG use in vehicle fleets, especially those owned by the Government and state
agencies.
• Initiation of a project to completely phase out lead in gasoline. The new brand
of unleaded gasoline would be blended so as to be free both of lead and methyl
tertiary-butyl ether (MTBE).
• Natural Gas Compression: The National Gas Company compresses low-pressure
natural gas at its Teak and Poui platforms for use mainly in electricity generation.
The utilization of such gas, that was formerly flared, reduces the release of greenhouse gases into the atmosphere and promotes greater efficiency in the use of the
country’s gas resources, while providing a cheap form of energy for producing
electricity.
• Promotion of solar water heating to reduce demand for electricity generated by
fossil fuels by active involvement in two projects, one in Tobago managed by the
Tobago Bed and Breakfast Association and the other in Trinidad managed by the
Trinidad Host Homes Association. These projects are to be forerunners for other
renewable energy projects in remote areas outside of the existing grid” (Government of Trinidad and Tobago 2003).
The main renewable projects identified in Trinidad and Tobago are solar energy,
biomass, wave energy and wind energy. Being a Caribbean island, Trinidad and Tobago is exposed to limitless solar energy, which also permits this to be the most
widely utilized of all new and renewable energy technologies in the country. The
University of the West Indies (UWI) has been spearheading research in the region
in this area. This initiative by UWI has taken the fore in comparison to the initiatives
of the Government of Trinidad and Tobago. A number of solar dryers, solar cookers
and solar stills have been installed over the years in Trinidad and Tobago, some of
which are inactive today.
In terms of wind power, the wind resource in Trinidad and Tobago has been determined to be relatively poor. However, there has been experimentation in the 1990s
with the establishment of a hybrid wind and photovoltaic system at a school in Matelot Village on the North East coast of Trinidad. There was also a pilot wind project
which was also successfully completed in Tobago in 1999 in order to determine the
conditions under which a wind turbine generator could generate electricity and feed
it into the existing power grid.
As for alternative energy, biomass is generated from the by-products of sugar cane
harvesting. Some bagasse has been used together with this by Caroni to fire the boilers at the beginning of the sugar cane harvesting season. Additionally, some experi-
ENERGY SECURITY OF THE CARIBBEAN
125
mentation has also taken place by UWI in the development of more energy efficient
wood and charcoal burning cooking stoves and cooking utensils for use by rural
populations. In keeping with alternative energy research, the first biogas plant was
commissioned in 1989 and there may be a few still existing in the country.
Energy security in Trinidad and Tobago is determined by the secure markets for
oil and gas imports. The existence of oil and gas has hindered progress in the realm
of alternative and renewable energy. It is inevitable that these conventional energy
supplies will be depleted and renewable and alternative energy is the way forward,
especially in order to achieve energy security. This is not to imply to move abruptly
to these newer energies, but more so to diversify the domestic energy economy to
satisfy and sustain the expansion of the larger economy. The current energy sector
in Trinidad and Tobago is overly dependent on its primary commodities and this
places the country on an unstable platform. There needs to be greater involvement
by stakeholders to ensure that feasibility studies are done to determine the most
contextual alternative or renewable energy options available in Trinidad and Tobago.
Conclusion
The Caribbean has been unique in its own context, needs and geopolitical salience in
the international arena. Many Caribbean countries have been tweaking the energy
sectors to be more contextual and pragmatic in the face of changing and evolving
geopolitical salience. There is an improved attempt by many Caribbean countries to
pursue “the integration of renewable energy generation into the electricity supply
system without compromizing safety or reliability, which is key to the commercial
exploitation of RE” (Harrison and Hester 2003:v). This emphasizes the certainty
the energy security is a definite possibility; it simply requires the given country to
determine the most feasible alternative or renewable option available and move unwaveringly in that direction.
There have been many attempts to deal with challenges to the diversification of
economies, especially in terms of financing projects and initiatives. “Iceland’s Island
Growth Initiative (IGI), introduced in 2007, initiated Icelandic-Caribbean cooperation and was the cornerstone to collaboration between the two countries in the field
of energy” (EDIN 2009). This collaboration was essential to the exploitation of geothermal energy in Dominica to ensure energy security and economic survival. There
will no longer be the need to rely on imported fuels or be vulnerable to unstable
prices.
As stated by the International Energy Agency, “The challenge for all countries is to
put in motion a transition to a more secure, lower carbon energy system, without
undermining economic and social development” (IEA 2007: ). This is evident in
Spain, Dominica, Jamaica, Guyana, St. Kitts and Nevis and Barbados. There is greater
prudence in policymaking for the energy sector, realizing the greater potential beyond oil and natural gas or conventional energy supplies. The case is intricately designed to demonstrate how other comparable countries have policies that are fluid
126
INTERNATIONAL PUBLIC POLICY REVIEW
and more adapted to the respective country. More so, it is certain that the current
energy policy of Trinidad and Tobago needs to include not what currently is, but
what the future energy demands will be for certain.
There are many arguments either supporting or against the potential for renewable
energy. The size of a county or economy does not determine the importance of alternative and renewable energies. This is seen in the case of Spain, where the need
to look for alternatives is because of the same exact principle other Caribbean countries face: energy vulnerability. In both instances, there are obligations to the private
and public sector to ensure policies are progressive and demonstrate versatility. The
energy sector is dynamic and unquestionably fundamental to any economy in the
current international political economy. It is important to recognize that
the planning horizon to 2030 represents a transitional period in the evolution of the
world’s energy sector. During this period the world will be developing alternative
energy sources that will represent long-term solutions to the economic and environmental problems caused by fossil fuels (Wright 2007:).
Other Caribbean countries have made and are making commendable progress towards achieving energy security. The rationale is simple, instead of remaining dependent on a product that is unpredictable in both supply and cost, rely on a product
that is economically and financially prudent, environmentally friendly (or friendlier) and provides greater security to the given economy. Jamaica, Guyana, Barbados,
Dominica and St. Kitts and Nevis have all, in their respective contexts, invested in the
infrastructure that is essential for achieving the desired goals. The energy polices
of these countries, as compared to Trinidad and Tobago, take note of the dormant
potential in alternative and renewable energies while realizing that pragmatic evolution is fundamental to economic survival.
The policies of Trinidad and Tobago necessitate a broader agenda and deeper scope.
There must be greater inclusion by the public domain and local private sector to
achieve maximum benefit. The current initiatives are acknowledged, despite the
definite waning significance or importance in documents pertaining to energy policies of the country. There is no other way to vehemently state that the government
must invest in sound, sustainable alternative and renewable energy infrastructure
to preserve the economy in future decades. There is no alternative.
ENERGY SECURITY OF THE CARIBBEAN
127
Bibliography
Books:
1. Harrison, R.M and Hester R.E, Issues in Environmental Science and TechnologySustainability and Environmental Impact of Renewable Energy Resources, Vol.
19 (2003)
2. Wright, Raymond (2007). The Future of Energy. Kingston: OAS, May 16, 2007.
Reports:
1. Association of Caribbean States, Publication, 9th Edition. First Publications, United Kingdom, London, 2008.
2. Barbados National Assessment Report on the Implementation of the Barbados
Plan of Action (BPOA), September 2003.
3. Caribbean Alternative Energy Programme, Report on the Workshop on Energy
Accounting for the Caribbean, 14-18 May 1979.
4. Country Energy Information Dominica, Developing Renewables. (Government of
Dominica, September 2006.)
5. Country Report March 2009. The Economist Intelligence Unit Limited 2009. The
Economist, UK. Pg 16.
6. Government of Guyana, Guyana’s Assessment Report on the Barbados Plan of Actions, Plus 10. Guyana Publications, 2004. Pg 41.
7. Government of Jamaica, Vision 2030 Jamaica, National Development Plan (Draft).
Jamaica Cabinet, January 2009.
8. Green Paper, The Jamaica Energy Policy; 2006-2020, (Jamaica Cabinet) 2005.
9. National Assessment Report, Republic of Trinidad and Tobago, Barbados Programme of Action for Small Island Developing States, Oct, 2003.
10. Official Publication of the Fifth Summit of the Americas. POS, Trinidad and
Tobago, pg; 58.
11. United Nations General Assembly, Report of the Global Conference on the
Sustainable Development of Small Island Developing States, (United Nations Publications, 1994) - A/CONF.167/9
Articles:
1. Anonymous, Renewable Energy Sources Being Explored in Jamaica. Jamaica
Gleaner News, June 26, 2007, pg 15
2. Gene Grossman and Elhanan Helpman. “Endogenous Product Cycles,” The Economic Journal,101, no. 408 (Sep 1991): pg; 1217- 1218.
3. IEA. World Energy Outlook 2007.
4. Rattray, Garth, Jamaica’s Energy Conservation Policy, Jamaica Gleaner News, Monday, April 14, 2008.
http://www.jamaica-gleaner.com/gleaner/20080414/cleisure/cleisure3.html
Websites:
128
INTERNATIONAL PUBLIC POLICY REVIEW
1. Administrator. “Guyana desperately needs some form of renewable energy”.
http://mittelholzer.org/forum/showthread.php?t=776
2. Caribbean Net News, “St Kitts-Nevis PM impressed with geothermal energy exploration in Nevis.”
http://www.caribbeannetnews.com/
news-11569--35-35--.html
3. CIA, The World Factbook, Spain.
https://www.cia.gov/library/publications/
the-world-factbook/geos/sp.html
4. EDIN, “EDIN Announces New Projects in the U.S Virgin Islands, Dominica and
across the Pacific”. April, 9, 2009. http://www.edinenergy.org/news_projects.
html
5. Euroresidentes, “Renewable Energy Plan in Spain”. http://www.euroresidentes.
com/Blogs/2005/08/renewable-energy-plan-in-spain.htm
6. Gil, Jose and Lucas, Hugo, “Spain, New Plan for Renewable Energy”.
http://
www.renewableenergyworld.com/rea/news/article/2005/11/spain-new-planfor-renewable-energy-39046
7. Government of the Commonwealth of Dominica, “Energy Minister Outlines Efforts Aimed at Developing Dominica’s Renewable Energy,” April, 2009.
8. Government of Trinidad and Tobago, “National Assessment Report, Republic of
Trinidad and Tobago, Barbados Programme of Action for Small Island Developing
States” , Oct, 2003.
9. Institute of Applied Science and Technology, Biofuels, http://www.iast.gov.gy/index.php/biofuel.html
10. Maheswari, Sushmul, “Future Breeze, Spain to Install Offshore Wind Farms”,
http://spainrenewableenergy.79743.free-press-release.com/
11. Mian, Zia, Jamaica: Energy Policy and Strategy, Jamaica Gleaner, Sunday, June
22, 2008.
http://www.jamaicagleaner.com/gleaner/20080622/focus/focus2.html
12. Ministry of Foreign Affairs, Iceland and Dominica to cooperate on geothermal energy. http://diplomacymonitor.com/stu/dm.nsf/dn/dnE9DA25DF7A0892A98525759A0052C717
13. R. Keith. “A sustainable energy plan for Barbados”. http://www.temasactuales.com/temasblog/environmental-protection/a-sustainable-energy-plan-forbarbados/
14. Sanchez, Alvaro “Solúcar: renewable energy platform in Andalusia”. http://
www.eudebate2009.eu/inc/article/25586/trans-solucar-el-sol-es-el-futuro.
html
15. United Nations, “Economic Aspects of Sustainable Development in Guyana,”
Changing Consumption Patterns. http://www.un.org/esa/agenda21/natlinfo/
countr/guyana/eco.htm
16. United Nations Economic and Social Council, “Draft Barbados National Energy Policy”. http://webapps01.un.org/nvp/frontend!policy.action?id=171
17. Nations General Assembly, Report of the Global Conference on the Sustainable Development of Small Island Developing States, (United Nations Publications,
1994) - A/CONF.167/9,
http://www.un.org/special-rep/ohrlls/sid/Pages%20from%20Barbados%20POA.
pdf
ENERGY SECURITY OF THE CARIBBEAN
18. U.S Library of Congress, Library, Energy.
http://www.country-studies.com/spain/energy.html
19.Wigton WindFarm; Latest News.
http://www.pcj.com/wigton/news.html
Glossary
AE - Alternative Energy
BPOA- Barbados Plan of Action
CDM- Clean Development Mechanism
CEIS-Caribbean Energy Information System
CREDP- Caribbean Renewable Energy Development Project
EG- Endogenous Growth
GDP- Gross Domestic Product
GEA- Guyana Energy Agency
IAST- Institute of Applied Science and Technology.
MEEI- Ministry of Energy and Energy Industries
RE- Renewable Energies
SE - Solar Energy
SIDS- Small Island Developing States
SP- Solar Power
T&T - Trinidad and Tobago
UN- United Nations
V 2020 - Vision 2020
129