Renewable Energy
Initiatives in the
Caribbean
Paper presented at Workshop on Climate Change
Enabling Activity – Jamaica
by
Mona Whyte
Caribbean Energy Information System
CEIS Participating
Countries in the Caribbean
Region
Classification of countries
“Hotel“- Islands
( 1)
 Antigua/Barbuda
 The Bahamas
 Barbados
 British Virgin Isl.
 Dominica
 Grenada
 Jamaica
 St Kitts & Nevis
 St Lucia
 St Vincent & the
Grenadines
 Trinidad & Tobago
 Turks & Caicos
“Continental”
Caribbean (2)
 Belize
 Guyana
 Suriname
“Special”
Case (3)
 Cuba
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)
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
ENERGY,
RENEWABLE
SOURCES
OF
ENERGY IN THE CARIBBEAN contd
 LOW ELECTRIFICATION RATE
HINTERLANDS (GUYANA, BELIZE)
IN
SOME
 LOW DENSITY OF RURAL POPULATION
 LOW PURCHASING POWER
 ECONOMIC DIFFICULTIES
 LITTLE ACCESS TO INTERNATIONAL FINANCING
LARGE
THE PETROLEUM
SITUATION IN THE
CARIBBEAN
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
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
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)
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
WHAT ARE WE DOING ABOUT
THIS
RENEWABLE ENERGY IN THE
CARIBBEAN
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
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
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
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.
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)
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
o
o
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
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).
OTHER INITIATIVES
•Caribbean Renewable Energy Development (CREDP)
•Caribbean Energy Efficiency Project
•The Caribbean and the Clean Mechanism Project
Caribbean Renewable Energy Development
(CREDP)
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
FEASIBILITY ASSESSMENT PHASE
BARRIERS STUDY
– EXAMINED BARRIERS TO RENEWABLE ENERGY DEVELOPMENT
– BARRIERS WERE FOUND AT THE LEVEL OF
• POLICY
• FINANCING
• CAPACITY BUILDING
• AWARENESS/INFORMATION
IMPLEMENTATION / CO-ORDINATION
• CARICOM Secretariat responsible
• Project Management Steering Committee
for oversight
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 moderate investment 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 protection of the borrower
The Caribbean and the Clean
Mechanism Project
The Caribbean and the Clean Mechanism Project
• Power Sector Baseline Study
• Capacity Building
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.
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.
Capacity Building
Three regional workshops were held to train Persons in baseline analyses and
benchmarking:
•
St. Lucia
•
Grenada
•
Barbados
Caribbean Energy Efficiency
Project
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