the caricom energy transition
TRANSCRIPT
Joseph WilliamsSustainable Energy Advisor
The CARICOM Energy TransitionLessons from the Last Five Years
Fifth Caribbean Sustainable Energy ForumColonial Hilton Hotel, Nassau, The Bahamas
January 23-25, 2017
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
Some progress in last decade…
Quantum leap still required for future!
ENERGY SECTOR 2017 ENERGY SECTOR 2027
Fossil Fuels
>90%
Transformation
RE
Fossil
Fuels
53%
RE
47%
Some Developments impacting
Sustainable Energy in the Caribbean2004 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 2011 2016 CESI Summit – Washington
2012 Rio+20 Conference; 2017 CSEF-V
2012 CSEF III
Progress in SE Development over the last decade
Description Pre-Baseline
2007
Baseline
2012
2017
Regional Energy Policy Coordination 0 CC EU CC Energy Unit (CC EU)
Regional Energy Policy , & Strategy 0 0 CARICOM Energy Policy (since 2013)
Countries with Approved SE Policies 1 2 8 (ANG, BAH, GRN, JAM, SLU,SKN, SVG, MN)
Countries with Draft Energy Policies 0 3 6
Regional Sustainable Energy Targets 0 0 C-SERMS Targets
Countries with SE Targets 0 8 14
Energy Units/Desks in place 4 7 8
Countries with Utility Scale RE 5 6 12
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 4 6 10Source CSERMS Baseline Report 2015 | data since 2015 or otherwise stated.
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
How important is leadership in this process?
Assumes
that
appropriate
financing is
available
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
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
Observations: Good governance and capacity
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
EE, The Low Hanging
Fruit: Hard to pick?
Key Issues, Opportunities, Challenges - EE
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
Opportunities
• More robust policies
– Eliminate overlaps;
contradictions
• Framework for greater
accountability
– Timely, evidence-based
review & evaluation of
policies, vs KPIs; rating
linked to reform
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?
