budget statement 2012.indd - Grenada Customs & Excise Division

Energy Development is a pillar of the new and modern economy and
is essential to fuel Grenada’s transformation.
During the past year, the work programme articulated in the 2011
Budget Presentation was vigourously pursued. I now wish to update
the Nation on our progress in three areas:
Wind Energy Project in Carriacou
The Financing Agreement between the Government of Grenada
and the European Union for the grant of 2.5 million Euros (EC$8.5
million) for the purchase of equipment has now been signed.
Since GRENLEC has exclusive rights over generation, transmission
and distribution of electricity, an agreement has been negotiated
whereby the equipment will be leased to GRENLEC to generate
1.9 megawatts of electricity in Carriacou. That lease agreement is
expected to be signed this month.
Over the next few months, GRENLEC will commence a procurement
process under EU guidelines for the wind turbines required to make
this project a reality. Given the time for procurement, we anticipate
full implementation of this project in the first half of next year.
Geothermal Development
Unlike other indigenous sources such as wind and solar, geothermal
energy is a constant rather than an intermittent source of energy. That
said, the development of Grenada’s geothermal potential must be
properly planned and managed.
As a prudent Government, the first step is to ensure a sound legal
and regulatory framework for geothermal energy development. In
this regard, Government with financial support from the Organisation
of American States recruited experienced consultants to prepare the
Geothermal Resources Development Bill and Environmental Regulations.
This Bill was the subject of a national consultation last year and
is now being finalized.
2012 Budget Statement Page 31