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Energy Policy and Analysis Caribbean

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Energy Policy and Analysis Caribbean ( energy-policy-and-analysis-caribbean )

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• Solar: Per Action 20, analyze market potentials for the (extended) application of solar thermal and solar electric systems in all consumption sectors. Install a pilot photovoltaic plant and publish technical guidelines for the interconnection of small grid-connected RE systems. This is being pursued by the SVG Energy Unit with the assistance of the ECPA Caribbean Initiative. 3.7.20.1 Distributed Generation Per Action 21, investigate opportunities to tap wind and solar potentials cost efficiently for electricity generation in the Grenadines. Provide support of private power operators on initiatives to replace diesel fuel with alternative energy sources. Per Action 22, investigate opportunities for the installation of standalone PV and wind-power systems. 3.7.20.2 Building Efficiency Per Action 34, draft guidelines for the construction of energy-efficient and well-insulated building design, including daylighting. Per Action 38, identify those government buildings with the greatest energy cost-reduction opportunities and evaluate options to supply the energy needs by efficiency and RE technology. Although many policy documents and agencies currently are in draft or nascent stages, there are some tangible results from resource characterization, net metering, alternative energy investment, and power purchase agreements within the region that can serve as a rich pool of experience and inspiration and can provide insight into important considerations for other islands currently developing energy policies. An updated national energy policy and energy action plan should consider formalizing energy policies by drafting these documents. Organizations such as CREDP/GTZ and OAS/CSEP should be leveraged for the development of these plans, as they have expertise in policy development and considerable experience in the Caribbean. Additionally, the support organizations should strive to better communicate and coordinate with each other to facilitate a clear understanding of energy policy concepts as applied to Caribbean and to learn from the experience of island nations. Those nations that are developing or revising energy policy can look to specific attributes of other NEPs and EAPs used in the Caribbean region as examples. A number of lessons can be noted. Policy developers should ensure that the following actions are part of the development of or are included in any policy changes. • Clearly define energy mix targets with time frames. There also should be intermediate goals and associated time frames and clarification of the baseline and other issues (e.g., installed/sold, whether efficiency gains count towards meeting targets). • Encourage an iterative and cyclical integrated resource-planning process. Regardless of whether there is specification of the methodology, it is important that the utility company be expected to demonstrate consideration of fuel sources and electricity production technologies on long-term cost and benefit analysis. • Outline compliance monitoring and penalty charges for meeting energy mix standards and for the planning process or designate authority to develop such to a specific independent authority. There are examples of island power sectors where utility regulators have approved and excised penalty charges for non-compliance with RPS, under the stipulation that such charges cannot be included in the rate cases and thus be passed on to consumers. Along with monitoring regimes, the potential for penalties adds into cost considerations for companies, which can affect capacity expansion decision making and analysis. 100

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