The CARICOM Energy Transition Lessons from the Last Five Years
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- Beryl Stafford
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1 The CARICOM Energy Transition Lessons from the Last Five Years Fifth Caribbean Sustainable Energy Forum Colonial Hilton Hotel, Nassau, The Bahamas January 23-25, 2017 Joseph Williams Sustainable Energy Advisor
2 Objectives In the context of sustainable energy transition in CARICOM: 1. To discuss briefly, where we were and where we are today 2. To identify a few issues, challenges, and opportunities along the way to our destination
3 RE Some progress in last decade Quantum leap still required for future! ENERGY SECTOR 2017 ENERGY SECTOR 2027 Fossil Fuels >90% Transformation RE 47% Fossil Fuels 53%
4 2012 Some Developments impacting Sustainable Energy in the Caribbean 2004 CREDP / UNDP / GIZ 2013 REETA Project Launched 2008 CARICOM Energy Programme 2013 COTED; CARICOM Energy Policy; C-SERMS 2008 CSEF I 2014 SIDS Conference -SAMOA 2008 CSEP-EU / OAS Project 2014 CDB Renewable Energy / Energy Efficiency Unit 2009 Summit of America ECPA 2014 CSEF IV; Year of SE4ALL 2009 CREF 2015 CESI US Government Initiative 2009 IRENA 2015 COP21 (NDC Established) 2009 Launch of SIDS DOCK 2015 COTED Energy 2010 ECPA Ministerial Meeting Washington 2015 Launch of CCREEE 2010 CSEF II 2015 UN SDGs, incl. Goal 7: Clean and Affordable Energy 2011 COTED Energy CESI Summit Washington 2012 Rio+20 Conference; 2017 CSEF-V
5 Progress in SE Development over the last decade Description Pre-Baseline 2007 Baseline 2012 Regional Energy Policy Coordination 0 CC EU CC Energy Unit (CC EU) Regional Energy Policy, & Strategy 0 0 CARICOM Energy Policy (since 2013) 2017 Countries with Approved SE Policies (ANG, BAH, GRN, JAM, SLU,SKN, SVG, MN) Countries with Draft Energy Policies Regional Sustainable Energy Targets 0 0 C-SERMS Targets Countries with SE Targets Energy Units/Desks in place Countries with Utility Scale RE RE Capacity Installed 271MW 420 MW 485MW (2016 to date) Share of Capacity RE 5.5% 8.8% 9.7% of Installed Capacity (w T&T) ;18% no T&T Regulator in place Source CSERMS Baseline Report 2015 data since 2015 or otherwise stated.
6 Key ingredients for transforming sector VISION: Policy, Strategy GOOD GOVERNANCE ENABLING FRAMEWORK: Leg & Reg for investment ADEQUATE CAPACITY - Institutional, human ENGAGE & MOBILIZE: Stakeholders, Partners, Citizenry Assumes that appropriate financing is available How important is leadership in this process?
7 Observations: Policy, strategy, plans X Energy not reflected as a priority e.g. not in Ministry s name X Many policies still in draft: Instances of lack of policy continuity for SE Policies include targets; necessary but not sufficient
8 Observations: Good governance and capacity X Lack of Good Governance can: set back progress for years lock out assistance from some Partners and MDBs Best Practice approach: public tendering for utility scale generating capacity observed in Jamaica, St. Lucia, Belize. X Some Energy Ministries don t have technical persons in place X Weak capacity remains challenge especially in SE, this can derail the transformation process (e.g. wrong advice, technology, etc.) poor technology transfer e.g. no counterpart
9 Observations: Enabling framework, engagement Some RE policy instruments have brought good results Fiscal Incentives for solar water heaters - including tax rebate; duty free IPP Approach: Jamaica, Belize, Net-billing, now FIT in Barbados for Solar PV X Not sufficient learning among Policy makers from each other; CARICOM Mechanisms: C-SERMS, CEP have started to bridge the gap for sharing among policymakers; but need support
10 EE, The Low Hanging Fruit: Hard to pick? Key Issues, Opportunities, Challenges - EE
11 Key Issues, Challenges, Opportunities - RE How to pursue legislative reforms where incumbent is private electric utility Implementing independent regulatory body in small countries Integrated Resource Planning, now key for evidence based policy formulation How much utility-scale generation vs distributed generation to pursue? Local Content: - should be a feature of all national energy policies? Role for a Champion? e.g: regional level Utility operations should not be exempted from impact of rising fuel cost i.e. 100% pass-thru a disincentive for their supporting SE? How to engage/incentivizing commercial banking sector? Right pace for transformation given new technologies and declining prices? Mobility of human capacity Bundling of procurement for RE projects not shown to be feasible
12 Opportunities More robust policies Eliminate overlaps; contradictions Framework for greater accountability Timely, evidence-based review & evaluation of policies, vs KPIs; rating linked to reform
13 Questions Why do many policies remain in draft stage and are there negative implications of this? Could approach to initiation, and agenda-setting be a part of the problem? How can SE policy continuity be encouraged across administrations? Is the public tendering / competitive approach for procurement of new generation always feasible or practical? When should there be exceptions? Is there need for greater leadership on SE at regional level, a champion?
14 THANK YOU
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