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• Given the monopoly structure, there is no overarching independent commission or body to effectively regulate the energy sector. The ESA should be revised to address this issue. • The policy provisions noted above have been deemed insufficient for addressing significant challenges in energy efficiency and reducing reliance on fossil fuels. 3.6.15 Assessment of the National Energy Policy The Government of St. Lucia seeks to develop its energy policy and strategy within the context of the National Vision Plan and the Medium-Term Strategy (Government of St. Lucia 2010, p.4). The government’s objective is to “ensure the development, and/or exploitation, of new and renewable energy sources . . . in its efforts to establish St. Lucia and a Sustainable Development Energy Country” (Government of St. Lucia 2010, p. 4). The national energy policy is guided by the following principles. [P]rocurement of energy supplies at the least cost through liberalization of the energy sector and broad private sector participation; energy security and reliability; diversification of the energy base; exploitation of indigenous renewable energy resources; higher efficiency in energy production, conversion, and use with the overall objective of reducing energy intensity; reduction of adverse environmental impacts and pollution by rehabilitating existing energy sector facilities and introducing new standards for energy related products as well as mandating environmental impact assessments for new projects; implementation of appropriate pricing policies to ensure adequate energy supplies are efficiently delivered to all economic sectors and fostering an environment to facilitate an improved and sustained energy supply network with sufficient incentives to encourage private sector investments; and establishment of an appropriate regulatory framework to set clear guidelines for investors and protect the interests of consumers (Government of Grenada 2009). In terms of policy expression, the NEP addresses institutional arrangements, energy subsectors, energy- efficiency measures across subsectors, and environmental aspects. 3.6.15.1 Institutional Arrangements This section outlines the responsibilities of the ministry in charge of energy planning and the ministry in charge of public utilities. Further, it provides that the government will establish an Energy Advisory Policy Committee co-chaired by the two ministries, to provide advice on energy-related issues and activities including “creating a discussion forum open to state institutions and the private sector; and advise on adequate and strategies with a view to supporting reform in the energy sector.” The committee will be composed of senior experts from various ministries, private-sector organizations, and civil society groups. Moreover, the NEP provides for the establishment of an independent regulatory body to: • Recommend to the minister with responsibility for public utilities the terms and conditions for the issuance of licenses for LUCELEC to generate, transmit, and distribute electricity to consumers; • Recommend to the minister with responsibility for public utilities the terms and conditions for the issuance of licenses to independent power producers; • Undertake economic regulation; • Establish and monitor tendering procedures for any major investments in the electricity generation sector; • Set and monitor quality standards and reliability criteria for all licensees; and 84PDF Image | Energy Policy and Analysis Caribbean
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