LVXXU

Chapter VI: Integrating North American Energy Markets
Caribbean would require the TS&D infrastructure associated with LNG imports. To date, Caribbean demand
has been too small to justify the expense of the necessary infrastructure. However, a 2014 study commissioned
by the Inter-American Development Bank determined that establishing a natural gas supply chain in the
Caribbean (based on small-scale LNG transport and floating regasification infrastructure) presented an
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economical method of displacing fuel oil as a method for energy delivery to eight Caribbean region nations.
The study estimated a 30 percent decrease in carbon dioxide emission by 2032, resulting from the displacement
of fuel oil by natural gas in current generation. 61
Other proposals to displace fuel oil have gained traction, including the use of propane, other liquid fuels, and
renewable sources for electricity generation. In July 2013, the U.S. Virgin Islands Water and Power Authority
began the process to design and construct propane TS&D infrastructure for two electricity generation units in
St. Croix and St. Thomas. To produce the same amount of electricity as the fuel oil plants they are replacing, the
propane generators will emit on average 96 percent less sulfur dioxide, 84 percent less coarse particulate matter,
85 percent less carbon monoxide, 24 percent less nitrogen oxide, and 17 percent less greenhouse gases. 62
Administration Activities and Plans
U.S.-CARICOM Summit—Deepening Energy Cooperation. In April 2015, President Obama met with Caribbean
leaders in a U.S.-CARICOM Summit in Kingston, Jamaica, to reaffirm the importance of our relationship with the region
and the United States’ commitment to partner with Caribbean countries to advance economic development, security, and
good governance. Leaders discussed a broad range of issues, from our important trade and investment linkages to security
cooperation, including the importance of improving energy security, reducing energy costs, and fighting climate change. This
follows robust engagement on these issues over the last year, including the White House Caribbean Energy Security Summit
hosted by the Vice President in January 2015 and the launch of the Caribbean Energy Security Initiative (CESI) coordinated
by the State Department. The United States is deepening this collaboration through a Clean Energy Finance Facility for the
Caribbean and Central America; an Energy Security Task Force, driving clean energy finance to support renewable energy
and clean energy technology collaboration to promote energy efficiency and storage; spurring a clean energy transition;
greening tourism through a new Clean Energy Program to establish the pre-conditions for clean energy development, optimize
renewable energy integration, and accelerate private-sector clean energy investment.
Caribbean Energy Security Initiative. In 2014, Vice President Biden announced CESI, which recognizes the diversity of
Caribbean nation economies, natural resources, and energy constraints. Led by the State Department, in coordination with
the U.S. Overseas Private Investment Corporation, DOE, and other agencies, CESI seeks to improve energy sector governance,
to increase access to affordable finance, and to improve communication and coordination among regional governments and
their development partners. CESI also is aimed at the full spectrum of the Caribbean energy sector, from production and
generation through transmission, storage, and distribution to end uses. This scope is broader than the transmission, storage,
and distribution focus of this Quadrennial Energy Review, but infrastructure will play a key role in the success of the projects
under CESI.
On January 26, 2015, the Vice President, Energy Secretary Moniz, Deputy Secretary of State Blinken, and other senior
Administration officials joined Caribbean heads of government, multilateral development banks, and other international
partners in a Caribbean Energy Security Summit in Washington, D.C. The summit highlighted ongoing CESI efforts, such as
improved governance of the energy sector, and recognized the continuing need for legal and regulatory reforms to introduce
a broad range of clean energy technologies into the Caribbean. A variety of other commitments to promote and finance clean
energy projects were announced. Administration engagement to promote energy security in the Caribbean, including through
support for the necessary transmission, storage, and distribution infrastructure, will continue to be a priority.
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The Inter-American Development Bank study discussed the Bahamas, Barbados, Belize, the Dominican Republic, Guyana, Haiti,
Jamaica, and Suriname.
6-18 QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015