Renewable Energy Renewable Energy Initiatives in the Initiatives in the

CaribbeanCaribbean

Paper presented at Workshop on Climate Change Enabling Activity – Jamaica

by Mona Whyte Mona Whyte

Caribbean Energy Information SystemCaribbean Energy Information System

CEIS Participating CEIS Participating Countries in the Caribbean Countries in the Caribbean

RegionRegion

Classification of countriesClassification of countries“Hotel“- Islands

( 1)“Continental”Caribbean (2)

“Special”Case (3)

Antigua/Barbuda The Bahamas Barbados British Virgin Isl. Dominica Grenada Jamaica St Kitts & Nevis St Lucia St Vincent & the

Grenadines Trinidad & Tobago Turks & Caicos

Belize Guyana Suriname

Cuba

“Hotel“- Islands( 1)

“Continental”Caribbean (2)

“Special”Case (3)

Antigua/Barbuda The Bahamas Barbados British Virgin Isl. Dominica Grenada Jamaica St Kitts & Nevis St Lucia St Vincent & the

Grenadines Trinidad & Tobago Turks & Caicos

Belize Guyana Suriname

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 RENEWABLE SOURCES OF ENERGY,

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

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 YEARBETWEEN 1993 AND 2002 ENERGY CONSUMPTION HAS GROWN BY OVER 36%CONTINUES TO GROW AT A RATE OF APPROXIMATELY 4% PER ANNUMTHIS 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 CaribbeanBARBADOS• 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 CaribbeanDOMINICA• 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 CaribbeanST. 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 CaribbeanSOLAR 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).

BIOMASSo Belcogen – 13 MW bagasse co-generation plant from sugar factories. Will sell

excess to grido 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 FEASIBILITY ASSESSMENT PHASEPHASE

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 STUDYPOWER 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 POWER SECTOR BASELINE STUDYSTUDY

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 BuildingCapacity Building

Three regional workshops were held to train Persons in baseline analyses and

benchmarking:

• St. Lucia

• Grenada

• Barbados

Caribbean Energy Caribbean Energy Efficiency ProjectEfficiency Project

Caribbean Energy Efficiency Caribbean Energy Efficiency ProjectProject

OLADE/GEF/UNDP

• Energy Efficiency Policy and Regulation

• Commercial Enterprise Development

• Awareness and Information Management

• Training and Human Capacity Building

• Financing Alternatives