The CARICOM Energy Transition

The CARICOM Energy Transition

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  Joseph Williams Sustainable EnergyAdvisor 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
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  Objectives In the contextof 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
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  Some progress inlast decade… Quantum leap still required for future! ENERGY SECTOR 2017 ENERGY SECTOR 2027 Fossil Fuels >90% Transformation RE Fossil Fuels 53% RE 47%
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  Some Developments impacting SustainableEnergy 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 2011 2016 CESI Summit – Washington 2012 Rio+20 Conference; 2017 CSEF-V 2012
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  Progress in SEDevelopment 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 10 Source CSERMS Baseline Report 2015 | data since 2015 or otherwise stated.
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  Key ingredients fortransforming 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
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  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
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  X Lack ofGood 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
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  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
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  EE, The LowHanging Fruit: Hard to pick? Key Issues, Opportunities, Challenges - EE
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  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
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  Opportunities • More robustpolicies – Eliminate overlaps; contradictions • Framework for greater accountability – Timely, evidence-based review & evaluation of policies, vs KPIs; rating linked to reform
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  Questions Why do manypolicies 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?
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  THANK YOU [email protected] www.caribank.org