RENEWABLE ENERGY AND CLIMATE CHANGE Presented by: Maxine Alexander Nestor Caribbean Community Climate Change Center and UNEP Risoe Centre Caribbean Regional Workshop for Designated National Authorities Crown Plaza, Trinidad November 8 9, 2011
OVERVIEW OF THE RELATIONSHIP BETWEEN ENERGY AND CLIMATE CHANGE 2
INTRODUCTION Energy Services are required to meet basic human needs and for productive processes: Energy is key to economic and social development. Currently each CARICOM Member State depends heavily on fossil fuel to satisfy energy services: Globally 85% of primary energy fueling the economies come from combustion of fossil fuels IPCC Special Report. GHG emissions associated with the burning of fossil fuel for the provision of energy services are a major cause for concern: Use of fossil fuels accounts for 56.6% of all anthropogenic GHG emissions IPCC Special Report.
ENERGY CONVERSION CHAIN Significant energy losses (inefficiencies) and GHG emissions occur during the energy conversion chain from: exploitation refining transportation end use Source: Robert Evans: Fueling Our Future: An Introduction to Sustainable Energy
OPTIONS FOR LOWERING GHG EMISSIONS Energy Conservation and efficiency Supply and end use Fuel Switching From fossil fuel to natural gas Carbon Capture and Storage Capturing CO 2 from large point sources and storing in a way that it does not enter the atmosphere Renewable Energy Median values for RE range from 4 46 g CO 2 eq/kwh Fossil Fuels range from 469 1,001 g CO 2 eq/kwh
SUSTAINABLE ENERGY vs. RENEWABLE ENERGY SUSTAINABLE SOURCES Long term availability to satisfy present and future consumption needs. Replenishable without human intervention. Energy Efficient the amount of energy consumed to exploit the available resources should not exceed the amount of energy these resources produce. RENEWABLE ENERGY SOURCES clean (do not pollute the environment during consumption) have minimum impact on human health and the ecosystems. 6
BACKGROUND ON REGIONAL ENERGY SECTOR 7
ENERGY CONSUMPTION PATTERNS World Bank Study completed a study in 2010 titled: Interconnection of Electricity Systems and Fuel Strategy. The projections are: Energy Demand is expected to double in the next 20 years. Average annual growth rate for the region is 3.7%. Population Growth Increased Economic Activity Higher Energy Use
MW NET PEAK DEMAND LOAD FORECAST FOR SELECTED CARICOM COUNTRIES MW
RENEWABLE ENERGY TECHNOLOGIES IN CARICOM 10
SUSTAINABLE ENERGY TECHNOLOGIES 11
ESTIMATED ENERGY MIX IN CARICOM COUNTRIES Estimated Energy Capacity and Supply Mix for grid generation in CARICOM countries 12
CURRENT REGIONAL SUSTAINABLE ENERGY INITIATIVES 13
CARICOM ENERGY POLICY GOALS Universal access to sustainable and secure supplies of energy Diversification of energy sectors as a foundation for economic development Optimization of domestic production of energy in an environment -ally sound manner Relationship between energy and international competitiveness of regional industries Efficient and reduced use of energy in all sectors Five pillars which underpin the regional policy 14
ENERGY AND CLIMATE CHANGE STRATEGIES IN REVISED DRAFT CARICOM POLICY Where feasible, Member States are encouraged to: Collaborate on the establishment of regional targets for emission reduction within the context of the Caribbean Sustainable Energy Roadmap and Strategy (C SERMS) that are informed by international obligations and voluntary commitments under the United Nations Framework Convention on Climate Change (UNFCCC) and the Alliance of Small Island States (AOSIS) climate change negotiating strategy and objectives; Explore the possibility of determining baselines and establishing national emission reduction targets for voluntary commitment as Nationally Appropriate Mitigation Actions (NAMAs); and Identify projects that could be funded from resources available under the global climate change agenda and make collective representation for such funds to be disbursed.
C SERMS ACTIVITIES PHASE 1 Existing initiatives and Projects Mapped Policies, Plans, Regulatory and Legislative Framework reviewed to determine gaps Capacity, Information / Awareness, Financing assessed to determine areas for strengthening Platform designed and Operationalised (subject to approval of Member States) Energy Modeling Framework and Data Requirements Assessed. First Level C SERMS Developed with preliminary regional targets for RE, EE and emission reduction in the energy sector. PHASE 2 2012-2013 Wide scale RE and EE assessments conducted Detailed gap analysis conducted Energy Balance Model and Framework Implemented Second Level C SERMS Developed with Comprehensive strategies and Actions and more concrete targets IDB Grant Fund of US $400,000 2013 onwards Government of the Federal Republic of Germany has committed 4.5 M for the period 2011 2014 16
17 Name of Project CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME Financing Agency Implementing Agency Objectives Duration Value Caribbean Renewable Energy Development Programme (CREDP) BMZ / GIZ, GEF/UNDP CARICOM Secretariat Reduction of greenhouse gas emissions by removing barriers to renewable energy development (Policy / legal and regulatory; Information / Awareness; Financing / Project Development; and Capacity Building). Support the implementation of policies, legislation and regulations that create an enabling framework for RE development. Develop innovative financing mechanisms for RE products and projects. Build capacity of players in the RE field. Improve regional RE information network. BMZ / GIZ : (2003 2012), UNDP/ GEF: 2004 2009 BMZ / GIZ : 7,45 Mio Euro, UNDP/GEF: 4.426 Mio USD
Name of Project Capacity Support for Sustainable Management of RE resources in the Caribbean Region (CRECS) CAPACITY SUPPORT FOR SUSTAINABLE MANAGEMENT OF RE RESOURCES IN THE CARIBBEAN REGION Financing Agency European Union Implementing Agency CARICOM Secretariat Objectives Duration Value Support the implementation of the regional energy policy and sustainable energy strategy for regional economic integration and development within CARIFORUM. Make progress towards addressing the identified barriers to the use of RE and increase investment in various RE sources. Outputs include: (i) development of a model energy and electricity supply legislation with emphasis on RE; (ii) support to Member States in developing national energy sector legislation governing the use of RE; (ii) development of model energy awareness programme; (iv) assist projects in preparing applications for CDM financing. November 2010 to December 2011 1,5 Mio Euro 18
Name of Project Caribbean Sustainable Energy Programme (CSEP) CARIBBEAN SUSTAINABLE ENERGY PROGRAMME Financing Agency European Union/ EU ACP Energy Initiative Implementing Agency Organisation of American States Objectives Duration Value Support specific actions in the target countries for improving the energy sector governance and management to accelerate the transition toward cleaner, more sustainable energy use. Facilitate market conditions for the development and use of renewable energy and energy efficiency (RE/EE) systems. Expected results: (i) RE/EE systems and practices will be increasingly deployed; (ii) at least 100 MW of renewable energy projects will be installed among the Project countries by 2016; (iii) energy demand will be reduced by 10% versus the projected baseline by 2016. November 2008 October 2011 19 1,97 Mio Euro
20 Name of Project Sustainable Energy Technical Assistance (SETA) SUSTAINABLE ENERGY TECHNICAL ASSISTANCE Financing Agency Caribbean Development Bank (CDB) Implementing Agency Organisation of Eastern Caribbean States Secretariat (OECS) Objectives Duration Value Provide guiding framework and create an enabling environment to support the efficient and sustainable production and use of energy in the OECS Member States. Outputs include the development of: (i) model legislation for the OECS; (ii) a sub-regional Renewable Energy Efficiency Strategy and Action Plan; (iii) a public education and awareness programme on RE. October 2010 to February 2014 1,586,805 USD
RENEWABLE ENERGY PROJECTS IN MEMBER STATES 21
MEMBER STATE FEDERATION OF NEVIS DOMINICA MONTSERRAT GEOTHERMAL OPERATIONAL EARLY STAGE DEVELOPMENT POTENTIAL Developer granted Exploration Licence in 2006. Exploration activities, plant design, negotiation for funding and the PPA for supply of power completed. 10 15 MW plant to be constructed in Phase 1 to supply Nevis and 30-35 MW plant in Phase 2 for St. Kitts. Involves installation of submarine cable. Steps are being taken to drill three slim hole test wells at Wotten Waven to assess the potential. Soufriere Area being studied by a private developer that was granted an Exploration and Exploitation Licence in 2008. EIA has been approved. Export of power to Guadeloupe and Martinique envisaged. Background picture shows exploration activities in Nevis conducted by West Indies Power <300 MW Assessment of the geothermal potential completed in January 2010. 22
MEMBER STATE BELIZE SURINAME HAITI JAMAICA GUYANA DOMINICA ST. VINCENT & THE GRENADINES HYDROPOWER OPERATIONAL Several existing plants with installed capacity of approximately 55 MW. Several projects with installed capacity in excess of 450 MW. Seven plants with total installed capacity of 55 MW supply the national grid. Several plants with installed capacity of 22 MW. Three facilities producing about 6 MW. Over 3 MW installed at two sites. EARLY STAGE DEVELOPMENT 154 MW plant at Amaila Falls on the Kuribrong River Picture shows Richmond Weir in St. Vincent & the Grenadines POTENTIAL Significant Significant Modest 98.5 MW Over 7000 MW 23
MEMBER STATE JAMAICA ST. KITTS & NEVIS ST. VINCENT & THE GRENADINES BARBADOS OPERATIONAL Wigton Windfarm has installed capacity of 38.7 MW. Munroe windfarm has 3 MW commissioned October 2010. 2.2 MW wind farm was commissioned at Maddens, Nevis in August 2010. WIND EARLY STAGE DEVELOPMENT Picture of the collapsible wind turbine in Nevis POTENTIAL Important fact: The Wigton Windfarm project is a registered CDM project with the United Nations Framework Convention on Climate Change. The project has been trading carbon credits under an Emissions Reduction Purchase Agreement (ERPA) with the Dutch Government since 2005. 5.4 MW wind farm to be commissioned in 2012 PPA signed. 7.2 MW Wind Park in grid-parallel operation is planned at Ribishi Point. The development of a 10 MW wind farm at Lambert is being studied. RENEWABLE ENERGY PROJECTS IN CARICOM 24
MEMBER STATE Available in all Member States. OPERATIONAL SOLAR Many small scale installations at demonstration and domestic use (solar technology is used to improve energy access in several Member States). EARLY STAGE DEVELOPMENT POTENTIAL Significant for both centralized and decentralized energy use. Barbados Approx. 50,000 Solar Hot Water Systems installed to date Barbados is saving: 21,400 metric tons of CO2 = 5.6% of all carbon emissions in Barbados. (Source: James Husbands presentation) Images show 2500 Watts Photovoltaic system installed in Guyana s hinterland The potential market is 2,282,500 solar hot water systems within CARICOM (Source: Husbands presentation) James
MEMBER STATE BELIZE GUYANA OPERATIONAL BIOMASS / BIOFUEL 31.5 MW plant installed by Belcogen that produces electric power from the burning of bagasse. 13.5 MW excess power is sold to the national grid. 2 X 15 MW turbines installed at the Guyana Sugar Corporation Skeldon Sugar factory for generation of power from burning bagasse for its own use. 8 MW is to be sold to the national grid from 2012. Biodiesel produced and used in power plant in the hinterland. JAMAICA In November 2008 the E10 fuel programme was launched - a blend of 10% ethanol from sugar cane and 90% 87 octane gasoline. EARLY STAGE DEVELOPMENT POTENTIA L Significant Significant 26
OCEAN THERMAL ENERGY CONVERSION MEMBER STATE OPERATIONAL EARLY STAGE DEVELOPMENT POTENTIAL The Bahamas In September 2011 the Bahamas Electricity Corporation signed an MOU with Ocean Thermal Energy Corporation of the USA to design and construct two OTEC plants of between 5 10 MW.
MEMBER STATE WASTE TO ENERGY OPERATIONAL EARLY STAGE DEVELOPMENT POTENTIA L BARBADOS Agreement between the Government of Barbados and Sustainable Barbados Recycling Centre allows for the diversion of waste from landfilling. Phase II includes the Design, construction and operation of a 2-5 MW electricity generating plant. Significant 28
CONCLUSIONS The question of the effectiveness of CDM as a financing mechanism remains a lingering one. Why to date only one RE project in the Region receives revenue from carbon trading credit? There needs to be continuous evaluation, monitoring and refashioning of the mechanism to ensure it is fulfilling its objectives. Countries / projects in the region should not pursue carbon financing on a standalone basis. There needs to be a regional coordinating agency that will oversee the bundling of projects to achieve economies of scale.
Joseph Williams Manager, Energy Programme Caribbean Community Secretariat Tele: 592 222 0001 75 Ext 3521 592 222 0139 (Direct) Fax :592 222 0155 E mail: jwilliams@caricom.org; jwilliams6764@gmail.com SKYPE 'jwilliams67641 Maxine Alexander Nestor Regional Energy Policy Advisor Caribbean Renewable Energy Development Project c/o Caribbean Community Secretariat Tele: 592 222 0001 75 Ext. 3501 592 222 0222 (direct) email: mnestor@caricom.org skype: maxine.alexander.nestor