Turks and Caicos Islands

Energy policy 3
The 2001 Environment Charter (OTEP, n.d.) lays out a general framework that according to Castalia (2011)
is consistent with the proposed Energy Conservation Policy and Implementation Strategy. Under the
Charter, the UK Government agrees to assist in funding projects of lasting benefit to the environment
through the existing Environment Fund for the Overseas Territories, other sources of public funding, and
helping to identify further funding partners. In addition the Turks and Caicos Government agrees to
integrate environmental considerations in social and economic planning processes following international
best practices and promote sustainable patterns of production and consumption, with specific mention of
energy.
In 2010, the Advisory Council on Renewable Energy recommended (Castalia, 2011):
Supporting private investment in renewable energy technologies through the use of Crown Land,
tax deferral and/or concessions
Reviewing and considering the feasibility of renewable energy generation targets binding on
utilities
Changing building and planning regulations to support micro-generation and water efficiency
Clarifying cost structures and incentives for existing suppliers to invest in renewable energy
The Climate Change Green Paper highlights the need to develop an Energy Policy as an important
adaptation strategy (Climate Change Committee, 2011b). It concludes that mitigation measures can
provide useful benefits to countries such as energy cost savings and recognition as a low-carbon
destination. “Increased use of renewable or alternative energy and the development of an energy
policy will benefit the Turks and Caicos Islands through reduced air pollution, lower negative effects of
fossil fuel pollution on the environment, and job creation as the Turks and Caicos Islands shifts away
from its dependence on fossil fuels” (Climate Change Committee, 2011b).
In 2011, a draft Energy Conservation Policy and Implementation Strategy was developed by Castalia (2011).
The report provides a thorough assessment of the energy sector and puts forward a number of
recommendations that form the basis of the suggested Implementation Strategy. In contrast to the
suggestions put forward in the Green Paper, Castalia (2011) states that “the TCI are one of the smallest
countries in the world—the price it would pay by mitigating greenhouse gas emissions would be hugely
disproportionate to any benefits it could reap.” This is a surprising statement, and not well-based in the
following calculations, which all underline that there are considerable economic and non-economic benefits
associated with mitigation, particularly with a view on reducing vulnerabilities arising out of importdependencies
of oil. The emphasis in the Castalia (2011) assessment is on energy efficiency and the
reduction of electricity costs and prices, which is not in line with suggestions by supranational organizations
to increase the cost of energy to reduce consumption (OECD & UNEP, 2011). Castalia (2011) recommends
that mitigation of greenhouse gases should be pursued only as long as energy costs may be reduced.
The suggested objectives for the Energy Conservation Policy put forward by Castalia (2011) are:
To promote viable renewable energy and energy efficiency and conservation projects that will
reduce the TCI’s dependency on imported fossil fuels, and therefore:
3 In the absence of other documents, most of the following sections are based on Castalia (2011).
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