WSHPDR_2013_Final_Report-updated_version

The Overseas Territories Orientation Law, in place since
December 2000, is the platform pushing for the
decentralization of the French overseas departments
and the implementation of PRERURE. It is important to
take into consideration the support provided by the
European Union (EU). This includes direct support in the
form of research funding via tenders and indirect
support by the means of helping the regional authorities
to enable the application of EU policy in overseas
departments. 5
A goal of self-sufficiency by 2030 under the GERRI
project is proposed in light of the estimated population
stabilization at one million people by 2030. 5 The
renewable energy sources available on the island are
wind, solar, geothermal, wave, tidal, hydro and energy
from biomass, landfill gas, gas stations, wastewater
treatment and biogas. Act No. 2005-781 of 13 July 2005
lays down the guidelines of the programme for energy
policy and renewable energy in Article 29. 6
In addition, incentive mechanisms are also in place to
encourage the development of renewable sources,
including tax exemption, direct subsidies and feed-intariffs
(FITs) controlled by the EDF. 5 Private plants
however, have a tax credit rate that varies between 25
per cent and 50 per cent based on the technology of the
project.
Barriers to small hydropower development
The main disadvantage to small hydropower
development is the cost of technologies which increases
due to the island’s insularity seen through the cost of
transportation and taxes. As a result, higher capital costs
hinder contractors’ willingness to undergo financial risk
and investment in Réunion. 5 Based on the country’s
geographical characteristics, contractors are also faced
with the risk of climatic variation and destruction
coupled with volcanic activity which increases the risk
factor for investors.
Environmental impact assessments are stringent and
often a difficult barrier to small hydropower
development due to the classification of Réunion as a
World Heritage Site, under the United Nations
Educational, Scientific and Cultural Organization
(UNESCO). This has a further domino effect on the price
of land per square metre that over the last 10 years has
experienced a significant increase amplifying initial
investment expenditure. 5
Coordination between departments and authorities,
both local and overseas, are ineffectual prolonging the
implementation process for project owners coupled
with a lack of local technical support creates another
disincentive for potential investors.
The final major barrier to small hydropower
development is the lack of information and often
contradictory sources with different and misleading data
further slowing down the process of development.
Currently, the Réunion Regional Energy Agency (ARER) is
in the process of compiling renewable energy
technology information providing a one-stop data shop
for potential investors. In the near future this could
decrease the initial research stage of most projects and
encourage contractors to establish projects in Réunion. 5
Reference
1. Réunion, National Institute of Statistics and Economic
Studies (2011). Bilan démographique 2009. Résultats no.
40. Dijon. Available from
www.insee.fr/fr/insee_regions/reunion/themes/resultat
s/resultats40/resultats40.pdf.
2. Australian Government, Bureau of Meteorology
(2013). Frequently Asked Questions: What is the highest
rainfall associated with a tropical cyclone? Available
from
www.bom.gov.au/wa/cyclone/about/faq/faq_ext_2.sht
ml.
3. Agence Régionale Energie Réunion (2009). Ile de la
Reunion Plan Economique de Transition et de Relance
via des Energies 100 per cent Locales a l’ile de la
Reunion, Agence Regionale de l'Energie Reunion. Tech.
Rep. 2009.
4. Drouineau, Mathilde, Nadia Maizi and Vincent
Mazauricz (2010). TIMES model for the Reunion Island:
addressing reliability of electricity supply. Presentation
at the International Energy Workshop. Stockholm. 21-23
June.
5. Praene, Jean Philippe and others (2011). Renewable
energy: Progressing towards a net zero energy islands,
the case of Reunion Island. Renewable and Sustainable
Energy Reviews, pp. 1-17.
6. Batenbaum, Jean-Charles (2009). Le Grenelle de
l’environnement de la Réunion : le projet GERRI, 24
October. Available from www.actualites-newsenvironnement.com/21786-grenelle-environnement-lareunion-projet-GERRI.html.
7. Forum for Energy and Development and Thomas
Lynge Jensen (2000). Renewable Energy on Small Islands.
Second Edition. Available from
www.gdrc.org/oceans/Small-Islands-II.pdf.
8. Comité de bassin de la Réunion (2008). Note
d’évaluation du potentiel hydroélectrique du bassin
Réunion. Saint-Denis. Available from
www.comitedebassinreunion.fr/IMG/Files/File/valorisation_sdage/DA7/pdf/D
A7.pdf.
42