Water and Energy Policy issues in Saint Lucia

Prepared by Sarah LeonEconomist

Department of Planning and National Development-Saint Lucia

Outline of presentationProfile of Water and Energy sectors in Saint

Lucia

Institutional and Regulatory in those sectors

Broad Policy issues in those sectors

Initiatives under implementation in those sectors

Areas for further work - Water and Energy sectors

Conclusion

Profile of Energy Sector

Energy sector is not unlike other Caribbean countries -high dependence on imported fossil fuel

Sector is dominated by electricity and transportation

High electrification rate of 98 %Price of electricity in 2013 ranged from

US$0.34 /kWh for domestic usersUS$0.39/Kwh for commercial consumers and

hotels

Profile of Energy sector-sub sectorsRenewable Energy

The Government has set a target of 30 % of electricity generated by 2020 to be derived from renewables

Island possesses significant potential for the developments of solar, wind, geothermal and biomass energy.

Hydropower and waste-to-energy are also viable options that can be explored

Solar energy is in use for heating water and a small percentage of photovoltaic.

Profile of Energy Sector-Sub sectors

Solar solar energy can be used for both electricity generation and heating. Solar water heating holds much scope for use in both the domestic and hotel sectors in particularSolar Dynamics and Solar Connection ( St Luca) Inc are solar companies in St Lucia

Profile of Energy Sector-Sub sectorsWind energySaint Lucia lies in the path of

north-easterly trade wind belts These reliable winds create a good

wind regime for wind energy exploitation

The best wind sites can be found on the east coast and on the northern and southern tips of the island.

GoSL along with Wind Tex Energy constructed a test tower Wind Tower in east Coast of St Lucia to collect wind data toward construction of a 12 MW wind farm on the Island ( April 2015)

Profile of Energy Sector-sub sectorsGeothermalconsidered to be a viable

alternative for electricity generation

Most of the volcanic activity on the island is concentrated in the south-west part in the town of Soufriere

Geothermal energy is expected to provide a significant and reliable energy source for Saint Lucia in the near future

Profile of Energy Sector-sub sectorsHydro ElectricityThe island’s rivers are quite

small, there is some potential for mini hydro power applications, which can be used in the agricultural industry

Preliminary research has also suggested that the John Compton Dam could be used to produce electricity.

Profile of Energy Sector-sub sectors

Biomass and waste to energyConsideration is also being given to the

development of biomass energy especially from plant and animal materials

there is also an opportunity for waste to energy potential of the country-incineration or gasification of Waste. Eg the Deglos Sanitary landfill

Recycled Cooking and motor oil is another alternative form of energy currently being used by aleading linen Company , St Lucia Linen ServicesLtd

Profile of Water sectorSaint Lucia’s potable water requirements are met

through surface run-off collected from (28) intake sources and the John Compton Dam.

Available supply of surface water, after run-off, is estimated to be 7 billion gallons per annum or 20 million gallons per day

Water and Sewerage Company Ltd. (WASCO), a public corporation, is responsible for the provision of portable water

Profile of Water sector

(4) major water supply systems (WSS): the John Compton Dam/Theobalds Plant

WSSHill 20 WSS(in the north of the island)Grace Woodlands System WSS and Beausejour WSS (in the south)

(19) minor water supply systems.

Profile of Water sectorThe John Compton

Dam system has a production capacity of 45,500 cubic meters per day

Hill 20 System 5,915 cubic meters per day

Grace Woodlands System 7,735 cubic meters per day

:

WRMA - The Water Resource Management Agency established in 2008, forms part of the MSDEST. This agency is committed to the management of Saint Lucia’s water resources adhering strongly to the principles of integrated water resources management.

NWSC -The National Water and Sewerage Commission is a regulatory agency which is responsible for regulating the delivery of water supply services and sewerage services throughout St. Lucia. Established under the Water and Sewerage Act of 2005.

Institutional and Regulatory Framework – Water Sector

Institutional and Regulatory Framework – Water Sector

Other Players – The Forestry Department of the (MSDEST)Ministry of Sustainable Development, Energy, Science and Technology

Watershed management, Protection forest soil and water

Public Health Department of the Ministry of Health, Wellness, Human Services and Gender Relations,

Water quality

National Conservation Authority - Management of public parks and beaches

National Water PolicySaint Lucia National Water Policy (2004 ) is driven by

a vision of the future in which all users of water resources appreciate the value of water as fragile, finite and seeks to ensure access to safe secure adequate and affordable supply of fresh water.

Objectives of the Policy To foster the adoption of an integrated approach to the

management of water resources To enable people to lead healthier and more productive lives

through improved management of water resources To increase and sustain the contribution made by water

resources to the development of the agriculture and industrial sectors, environmental sustainability and the conservation of biological diversity

Water Policy cont’dThe policy addresses the following areas:

Promoting integrated water resource management Strengthening human resource capacity Promoting effective water pollution prevention and

control Establishing equitable and efficient allocation and

pricing mechanisms Water for health and sanitation, agriculture and

food Financing the provision and maintenance of water

and sanitation services Strengthening institutional capacity for monitoring,

surveillance and management Increasing private sector ownership and

participation

National Energy PolicyIn June 2010, the Cabinet of Saint Lucia

approved the official National Energy Policy (NEP). The policy provides :

For private participation in electricity generation,

Encourages the establishment of small-scale Encourages the establishment of small-scale renewable energy systems renewable energy systems

Proposes the establishment of an Independent Regulatory Commission for the electricity sector

For the creation of an enabling environment, For the creation of an enabling environment, both regulatory and institutional for the both regulatory and institutional for the introduction of indigenous renewable energy to introduction of indigenous renewable energy to the national energy mixthe national energy mix

Institutional and Regulatory Framework – Energy SectorThe island’s electricity market is dominated

by LUCELEC which is the sole electricity provider (transmission and distribution)

LUCELEC operates power stations equipped with diesel generators

The Electricity Supply Act (1964 Power Supply

Regulation) provides LUCELEC with an exclusive license to operate and to be the sole provider of electricity till 2045

Energy & Water Sector Policy Issues

GoSL Broad Policy issues

Other Policy IssuesWASCO lacks the financing required to re-

capitalize its physical plant and expand its distribution network, making it difficult to provide a regular, high quality supply of water to communities around the island.

A tariff increase of 66.15A tariff increase of 66.15% granted by the NWSC in April, 2013 % granted by the NWSC in April, 2013 (10.43% - desilting JCD, 55.72%- WASCO operations)(10.43% - desilting JCD, 55.72%- WASCO operations)

Mountainous terrain of the island WASCO spends a significant amount of money on energy cost to pump water island wide (68) pumps, $870, 274.53 mthly

Regulatory biases or absence of regulations to support energy development

Other Policy IssuesHigh transaction costs and limited fiscal incentives

for the purchase of energy efficient equipment

High initial costs of energy efficient technologies coupled with lack of access to credit acts as a deterrent

Lack of a revised energy efficiency building code which limits Government efforts to put measures in place to encourage energy efficiency in new and existing buildings.

Inadequate institutional capacity for some aspects of renewable energy project/program design, development, and implementation

Rapid population increases and high rates of urbanization has led to Increased pollution of fresh water resources, and increase demand on the water supply

Other Policy IssuesClimate change led disasters have

led to compromised water resources ( John Compton Damn 33% silt33% silt)

Waste water/ Sewage disposal remains a concern, Castries region the sewage system only collects and disposes of sewage into the harbor,limited treatment is done, 13 % use sewage system 7 % use no facility majority use pit/ latrine to dispose of

sewage. The island has a few sewage

treatment plants which are underutilized. ( National Water Policy)

The present water demands exceed the water supply. The JCD is designed to pump at least 10MG of water a day to the

treatment plant, records only 6-7MGs at the station approximately 3-4 MGs of unaccounted for water (UWF) and may

be due to aged/faulty pipelines.

The revised regulation (1994) is expected to stipulate that the LUCELEC long-term expansion plan take into account renewable energy projects

Saint Lucia does not have an independent electricity regulator . The Minister with responsibility for energy can intervene at a policy level to regulate the actions of LUCELEC. {although there are plans to put one in place}

Other Policy Issues

Other Policy IssuesThe national water policy requires an update- it

does not specifically address challenges associated with climate change; it also does not recognize the existence and role of the WRMA since it only became functional in November 2008. (NWRM)

Threats to water quality are not being adequately addressed due to the need for revision of legislation (both the Water and Sewerage Act and the Public Health Act)

Need for provision of resources for the entities/depts. responsible for environmental protection and public health.

Issues Cont’d

No national policy on waste water management exists however one will be developed under the Disaster Vulnerability Project (with funding from the World Bank)

Inadequate institutional capacity for some aspects of renewable energy project/program design, development, and implementation

Rapid population increases and high rates of urbanization has led to Increased pollution of fresh water resources, and increase demand on the water supply

Initiatives Under ImplementationDesilting of the John Compton Dam – Removal of

the large quantities of silt deposited in the reservoir due to the passage of Hurricane Tomas and the upgrading of the road

Re-development of the Water Supply in Vieux-Fort and Dennery – to improve the supply of water to these communities

Water Supply Development at Micoud - this project will involve the construction of a clarifier and a filter at the Micoud Water Treatment Plant.

Initiatives Under ImplementationRetrofitting of government buildings with LED

Lights

Revision of the Legislative Framework to support supply of Alternative Energy

Wind Energy - Wind farm constructed on the Island April 2015 ( West Tex)

National Utilities Regulatory Commission (NURC) a multi-sector independent regulator to regulate and monitor the water and electricity sectors is being established .

A First Draft of the Bill was presented on 26A First Draft of the Bill was presented on 26thth February, 2014 February, 2014 to stakeholdersto stakeholders

Initiatives Under Implementation

LED Street LightingThe Government has reviewed a pilot LED street lighting initiative and has realized savings. The intention of government is to have all existing lighting replaced by LED technology.

Transportation SectorThe import duties on electric, hybrid and sustainable fuel vehicles have been revised to provide an incentive for purchasing of more efficient vehicle technologies.

Revision of the Electricity Supply Act 1994 is currently being updated to facilitate a more competitive environment.

Areas for Further work –Future Projects: Solar Farm Project of 3.2MW in collaboration with Lucelec

Wind Farm Project of 12MW in collaboration with Lucelec

and Private Developer

Geothermal Exploration and Studies within the next two

years with assistance from Government of New Zealand and

World Bank.

Solar Drying Initiative to assist the Agriculture Department

in the use of Renewable Energy Resources

Biogas Digesters Initiative to assist the Agriculture

Department in the use of Renewable Energy Resources.

Development of Energy Efficiency Bill

Optimization of the meteorological and hydrological monitoring

network through the procurement of equipment by WRMA

ConclusionCurrently, Saint Lucia is in the process of

completing the National Development Plan (NDP). Climate Change impacts and adaptation will be mainstreamed into the process.

Green and Blue economy concepts will also be integrated into the process. A Scoping Study which will allow for the development of a Green Economy Policy Document to guide decision makers has been completed.

Thank you for your attention.