conference magazine - Caribbean Environmental Health Institute

Caribbean’s sustainability problems. The potential of these technologies
to reduce overall carbon dioxide emissions and associated
climate change impacts has been a significant driver. From
an economic standpoint, use of indigenous renewable energy
sources can reduce foreign exchange in many countries where
petroleum products make up a sizeable proportion of countries’
imports. In terms of energy security, a more diverse energy supply
will reduce the overall vulnerability of the sector.
There have been a number of initiatives by governments in the
Caribbean as well as regional organizations to promote the use of
renewable energy. However, although there have been some
isolated success stories, progress in implementing renewable
energy projects has been limited. It is clear that access to capital
is a barrier to development, but aspects of organizational and
institutional structure also constitute impediments. These more
tacit variables tend to be ignored or dismissed in designing energy
programs or formulating policy.
This paper considers some of these organizational and institutional
challenges posed to developing renewable energy technologies
in the Caribbean. We investigate institutional aspects
both from the perspective of the formal; which is defined by aspects
such as legislation, regulation and written policies; and the
informal created by norms, local culture and the impact of individual
champions or entrepreneurs.
In determining the best way for policy and organizational sector
arrangements to be set up at regional and national levels, we
apply aspects of institutional theory.
The data for this study was collected via analysis of government
and electricity utility documents, participant observation and exploratory
semi- structured interviews with officials in Caribbean
states.
Feed-in-tariffs (FiT) – An attractive renewable energy policy
support mechanism for the Caribbean by Duane Rowe
Feed-in-tariff schemes (FiTs) are applied extensively over the
world – particularly in Europe – and have in general achieved
significant success (most notable in Germany and Spain) –
though the level of success, which depends on the particular
design of the FiT and other exogenous factors, varies widely.
A well designed FiT can provide an effective policy framework
that delivers transparent and long term certainty to investors
which, consequently, would spur investments in renewable electricity
(RES-E) generation. In addition, practice has shown welldesigned
FiTs to be superior to other renewable energy incentive
schemes in terms of effectiveness and cost-efficiency. In other
words, FiTs have been demonstrated to achieve larger deployment
at lower costs.
Based on the foregoing, the author is proposing that FiTs be seriously
examined as an attractive policy incentive scheme for adaptation
in the Caribbean. In the presentation, the author will: establish
the key objectives of any renewable energy incentive
scheme; establish the key characteristics of successful FiTs and
outline their comparative benefits to other RES-E support mechanisms;
examine the key design features of FiTs; and show how the
particular design of FiTs can affect their effectiveness. In delivering
the presentation, the author will use case studies of five countries
(including Germany and Spain) to present his arguments and will
draw on his experience of establishing the qualitative design framework
for the feed-in-tariff scheme that was recently instituted in Great
Britain.
Renewable Energy Development on Nevis - Lessons Learned by
Ernie Stapleton
The Nevis Island Administration (NIA) signed a Wind Resource Contract
with Windwatt Inc., a locally established or incorporated company.
In addition the Nevis Electricity Company (Nevlec) also signed
a Power Purchase Agreement (PPA). These agreements were executed
in July 2009. The objectives are that the company will develop
a wind farm with a capacity of 2.2 MW on government leased land
and supply 1.1 MW of wind energy to the Nevlec grid. Currently eight
(8) 275 KWh wind turbines are being constructed at the selected site
on the island of Nevis with commissioning expected by July 2010.
In April 2009 the NIA signed a Geothermal Resource Contract with
WIP for the production of geothermal power for the island of Nevis.
On the same date Nevlec also signed a PPA with WIP to supply 10
MW power to the company. WIP has to prove that it can produce an
economically developable resource by the end of December 2010.
However because of several setbacks including securing finance,
WIP requested an extension and was given until 30 June 2011 to
produce electricity and to obtain the necessary concessions from the
government. Hence the focus of the project now is to supply Nevis
with 10 MW and St. Kitts with 30 MW thereafter.
The threats to the islands from climate change, the uncertainty in the
movement in the price of oil, the need for energy independence, energy
security, and the need to diversify the economy and seek other
economic/development opportunities are all factors which should
cause all governments to remain focused and steadfast in the quest
to develop and implement renewable energy projects and sustainable
development in general. The paper will explore lessons learned from
these initiatives.
Policy achievements and perspectives for RE electricity generation
in the Caribbean by Detlef Loy
Electricity Generation from Renewable Energy Sources has received
growing attention in the Caribbean in recent years, due to the high
dependency on oil imports, rising petroleum prices with subsequent
consequences for electricity tariffs at consumer level and a continuously
more competitive RE cost regime, in particular for technologies
using wind and solar energy. This process has been accompanied in
various countries by new national strategies and targets for the use of
RE, including changes within the legal and regulatory framework that
open the power generation market for new innovative players and
investors.
The presentation will report on how island states such as Jamaica,
Dominica, St. Vincent and the Grenadines, St. Lucia and Grenada
have dealt so far with replacing the traditional fossil-fuel based elec-
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FIFTH BIENNIAL CARIBBEAN ENVIRONMENTAL FORUM AND EXHIBITION