CARICOM Energy Quarterly: Volume 1 Issue 1-2

30 JUNE 2015

Volume 1, Issue 1–2

CARICOM ENERGY QUARTERLY January–June

Powered by the CARICOM Secretariat

In this Issue

3. PAST HAPPENINGS, 2015

25.

MEMBER STATE PROFILE

+ St. Vincent’s Geothermal Revolution Full Steam Ahead

36.

CEP PROFILE

+ Caribbean Energy Security Summit + F ifty-Fourth Special Meeting of the Council for Trade and Economic Development (COTED), Energy + F ifty-Fifth Special Meeting of the Council for Trade and Economic Development (COTED), Energy and Environment + Caribbean Clean Energy Technology Summit (CCETS) + US CARICOM Summit + Energy and Climate Partnership of the Americas (ECPA) Ministerial + Clean Energy Ministerial (CEM) + Vienna Energy Forum + IRENA Island Conference

UPCOMING EVENTS, 2015

+ C urricula Development Workshop, Master’s Degree in Sustainable Energy and Climate Change Kingston, Jamaica + R egional Workshop on Creative Financing Tools and Approaches for Sustainable Energy Projects St. Michaels, Barbados + Caribbean Renewable Energy Conference Point a Pierre, Guadeloupe + Caribbean Renewable Energy Forum Punta Cana, Dominican Republic

29. PERSONALITY PROFILE Kelly Tomblin, Jamaica

33. REETA PROJECT PROFILE

The CARICOM Building Energy Efficiency Project (CARICOM BEEP)

37. FEATURE ARTICLE

T he Caribbean Centre for Renewal Energy and Energy Efficiency (CCREEE): Is There Ever a Right Time?

41. PROGRAMME BRIEFS

PAST HAPPENINGS

The Caribbean Energy Security Summit The Caribbean Community (CARICOM) at this year’s Caribbean Energy Security Summit welcomed the commitment made by the United States Government, as well as other partners and institutions, to assist in plugging the gaps that continue to arise in the Caribbean energy sector.

The Prime Minister of the Bahamas and current chair of CARICOM, Rt. Hon. Perry Christie, on behalf of the Community, lauded the US’ commitment at the conclusion of the Summit.

The Summit which was held on 26 January 2015 in Washington DC, brought together leaders from the Caribbean, including CARICOM Member States, International Financial Institutions (IFIs), bilateral and multilateral organisations and the Vice President of the United States of America, Joseph Biden.

The Summit was held in keeping with a commitment made by Vice President Biden to meet with beneficiaries and other key stakeholders of the Caribbean Energy Security Initiative. The primary objective of the interaction was the identification of mechanisms, focusing mainly on the regulatory environment and coordination aimed at attracting increased private sector investments within the Region’s sustainable energy sector.

In his remarks at the Summit, Vice President Biden stated that, “the US is prepared to assist the Region, through the Caribbean Energy Security Initiative, to create the conditions to attract private-sector investment.” He pointed out the need for clear, transparent and fair procurement processes for power generation and the harmonisation

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“the US was prepared to assist the Region, through the Caribbean Energy Security Initiative, to create the conditions to attract private-sector investment” – Vice President Joesph Biden, U.S. of the regulatory framework, which may allow businesses to invest in the entire region, rather than just in a single country.

He further stated that the Overseas Private Investment Corporation (OPIC) of the US will intensify its focus on developing clean energy projects in the Caribbean and also went on to note that OPIC had indicated that it would disburse the first tranche in the amount of US$43M in financing for the US$90M for the Blue Mountain Renewables 34 MW wind project in Jamaica In addition, Prime Minister Christie welcomed the explicit commitment by Vice President Biden to address the methodology and criteria utilised for ‘graduation’ of Caribbean countries by his Government as well as International Financial Institutions (IFIs) such as the World Bank, in which the US has high-level representation.

In his presentation to the Summit, the CARICOM Chairman provided an overview of the Regional energy situation and underscored the importance of moving sustainable energy and the predictable supply and pricing benefits to the top of the list of investment priorities for the Caribbean. He, however, indicated that the economies of the Region were characterised by very limited fiscal space, and that in such instances, conditions imposed in agreements with IFIs further restricted the “space within which government could play”. He highlighted some of the progress made by Regional governments, including the adoption of National Energy Policies and regional renewable energy targets under the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS), as well as the recently approved CARICOM Energy Policy. . He agreed that although the Region faced challenges, opportunities exist for development partners to promote sustainable energy investment within the existing framework.

During the forum, there were interventions from a number of delegation heads, including The Bahamas, Dominica, Jamaica, St. Vincent and the Grenadines, Trinidad and Tobago, Aruba, the Dominican Republic, the European Union, New Zealand and Spain, as well as from multilateral organisations such as the Inter-American Development Bank (IDB), the International Renewable Energy Agency (IRENA), and the Organisation of American States (OAS).

The Summit was apprised of lessons from Aruba which had contributed to a significant reduction of that country’s electricity tariff from an average of US38 cents per kWh in 2013 to US26 cents in 2014, through the increased penetration of solar photovoltaics and the introduction of propane as a ‘replacement’ from diesel in some of its generation facilities.

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CARICOM Leaders and Secretary-General, Amb. Irwin LaRocque, with Vice-President of the United States, Joseph Biden (5th from the right in the middle row) at the Caribbean Energy Security Summit, 26 January, 2015, in Washington, D.C.

Vice President Biden used the Aruba experience to make the case of what was possible for the rest of the Caribbean through fuel-switching and highlighted potential opportunities for power

generation from natural gas within the Region. He said that an appropriate regulatory framework and political will was needed in order to attract investments to diversify the power generation in the Caribbean from oil to a mix that included natural gas and renewable sources was.

While noting the opportunities highlighted, Member States indicated that a number of situations,

including the fiscal circumstances of the Region, were prohibitive. In addition, the need for the identification of global public resources to stimulate investments in the infrastructure required to support alternative energy technologies and energy efficiency applications within the Region was

noted. It was also noted that the natural gas option was only cost-effective in some countries and that the Eastern Caribbean States were committed to developing their indigenous geothermal resources to provide base load power.

CARICOM also raised concerns about the graduation of a number of Member States, which have relatively high per capita GDP, thus limiting their access to grants and concessionary loans

for addressing sustainable development issues. In particular, it was recommended that bilateral

donors and IFIs use the vulnerability indices of countries rather than per capita GDP, as Member

States deem it as more a realistic reflection of their sustainable development situation. Member

States continue to lose significant portions of their GDP due to the frequency and intensity of natural disasters. While Vice President Biden supported the recommendation, he indicated that access would be limited to financing earmarked for the energy sector.

The Community pointed out that the Region was dedicating significant efforts and resources towards improving its energy situation, through the support of a number of Development Partners,

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but reiterated the need for Partners to recognise and implement Regional strategies and initiatives. The Region highlighted the fact that the strategies for financing and coordination required the support of Development Partners but that Regional ownership was key to the process. In this vein, Trinidad and

Tobago advised of its intent to develop a regional financing mechanism, the Caribbean Energy Fund with support from the IDB. Once operational, the Fund is expected to be used to leverage additional grant funding and private investments in support of clean energy projects within the Region.

During the Summit, there were three panel sessions that focused on –

+ Comprehensive Approaches to Energy Transformation which was moderated by the World Bank and featured presentations from Aruba, Colombia, Saint Lucia and the Carbon War Room; + Public Sector Catalysing International Finance which was moderated by the Council of the Americas and featured the IDB, Caribbean Development Bank (CDB), CARICOM Secretariat and the Canadian Government among the panelist; and + Overcoming Barriers to Investment which was moderated by the Atlantic Council and had representation from IRENA, OPIC, AES Corporation and Emera Caribbean Limited.

The aim of the Sessions was to troubleshoot some practical and realistic options and opportunities for building, public-private partnerships in the Caribbean Energy Sector.

At the conclusion of the Summit, a joint Declaration was issued under the theme ‘Fostering a Cleaner and More Sustainable Energy Future in the Caribbean’ which can be accessed via the link.

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PAST HAPPENINGS

Highlights of the Fifty-Fourth Special COTED (Energy)

During the first week of February 2015, the Caribbean Community (CARICOM) Secretariat convened the Fifty-Fourth Special Meeting of the Council for Trade and Economic and Development (COTED) (Energy) at its Headquarters in Georgetown, Guyana. The Meeting of Officials preparatory to the Fifty-Fourth Special Meeting of the COTED (Energy) was held on 2 February 2015, prior to the Ministerial Session which was held on 4 February.

Her Excellency, Amb. Manorma Soeknandan, Deputy Secretary-General, CARICOM, in her remarks, declared the meeting as an opportunity for advancing along the sustainable energy path by developing reliable access to secure, affordable, clean and sustainable energy services, stating that “there is a broad consensus that our Regional energy system, despite the progress already made, has to undergo significant additional changes in order to urgently meet the demands for modern, secure, reliable, efficient, cost effective energy services”.

Ambassador Soeknandan also reminded the Meeting of the need to utilise resources in a more effective and efficient way, noting that Energy was about sustainable livelihoods and job creation alike, which has led to it being identified as a crosscutting area within the Strategic Plan [2015-2019] of the Caribbean Community (CARICOM) for building economic resilience within the Region.

The keynote address was delivered by the Honourable Phillip Paulwell, Minister of Science, Technology, Energy and Mining of Jamaica and Chairman of the Meeting. He highlighted the significance of the proposed establishment of the CCREEE, noting that “In adopting a CARICOM Energy Policy, our commitment to the meaningful The Honourable Phillip Paulwell, Minister of Science, Technology, Energy and Mining of Jamaica and Chairman of the meeting

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achievement of renewable energy targets is demonstrably clear... We must now give momentum to the process of translating our ambitious commitments into tangible action at the regional and national levels. In this regard, the establishment of the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREE), which was endorsed by the Thirty-Ninth COTED in November 2014 is most welcome and we must now proceed with those details which will ensure its effective and harmonious operations”.

Minister Paulwell commended the Region’s efforts in the area of sustainable energy development and reiterated the sentiments expressed by the Deputy Secretary-General, CARICOM, that significant gaps remain and urged the collective action as a Community in addressing the development of the energy sector and a reduction of the Region’s fuel bill, he stated that “although sustainable energy solutions have made great strides in our region, many significant gaps and barriers remain. In the coming decades, these barriers to renewable energy access, energy efficiency, and reliable grid development and deployment must be overcome through a cohesive regional effort coordinated and fully supported by each of us as Member States of CARICOM and I am confident that we will achieve our objectives”.

The most significant aspects of the day were the key decisions taken at Meeting by the CARICOM Energy Ministers. The Meeting endorsed the criteria and selection process for the Host Country of the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) Secretariat, clearly noting that the host country selection would be done through a competitive bidding process.

The Meeting also endorsed the CCREEE as the coordination hub for the implementation of regional renewable energy and energy efficiency programmes, projects and activities, and recommended the selection of an Interim Director, noting that the appointment shall not prejudice the competitive process for selection of an Executive Director for the CCREEE. The Interim Director will be responsible for providing dedicated attention to and managing the process of the establishment of the Centre, prior to the appointment of the Executive Director.

In addition to the aforementioned consensus reached on matters related to the proposed establishment of the CCREEE, the Meeting also agreed on a number of areas for supporting sustainable energy development in CARICOM, including:

+ The strengthening of the regional coordination mechanism that was being implemented by the Energy Unit of the CARICOM Secretariat. + Adjustment of the scope of services that have been proposed by the CCREEE, to ensure the necessary synergies and congruence with the work of the Energy Unit of the CARICOM Secretariat, so that there is no duplication of efforts, following completion of an analysis of the institutions involved in sustainable energy activities in the Region. + Recommendations from the Fourth Caribbean Sustainable Energy Forum (CSEF IV) and that it was imperative to pursue actions for promoting sustainable energy use in the transportation sector. + That the Energy Unit of the CARICOM Secretariat, with the assistance of the CCREEE, should identify opportunities and make recommendations for greater energy efficiency in the regional transport sector. + Recommendations from the Workshop on Energy Information Systems and Knowledge Management Systems. + To explore possibilities for regional benefit under the Caribbean Energy Security Initiative (CESI). + Areas of cooperation in energy and climate change, including emerging opportunities under the Post-2015 Development Agenda, for recommendations to the Fifty-Fifth Special Meeting of the COTED (Energy and Environment). + That Trinidad and Tobago, through the CARICOM Secretariat, would provide details on the Caribbean Energy Fund (CEF), which would be considered and discussed at the next Special Meeting of the COTED on Energy.

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PAST HAPPENINGS

Key Decisions of the Fifty-Fifth Special COTED (Energy and Environment) The Fifty-Fifth Special Meeting of the Council for Trade and Economic Development (COTED) (Energy and Environment) was convened on the Thursday, 5 February 2015 at the Headquarters of the Caribbean Community (CARICOM) Secretariat and was chaired by the Honourable Robert Pickersgill, Minister of Water, Land, Environment and Climate Change, Jamaica.

In her brief Opening Remarks, Ambassador Manorma Soeknandan, Deputy Secretary-General, CARICOM noted that prior to this, a Special COTED on Energy and the Environment had never been held. Hence the meeting was considered timely, given the fact that issues under both portfolios were related and sometimes overlapped. She further stated that the Meeting can be deemed as a significant step in advancing the Energy and Climate Change nexus and their contribution to the sustainable development of the Community.

The Chairman, in his brief Opening Remarks, commended the Secretariat for organising the Meeting which was considered a timely and laudable initiative. He urged that a unified Energy Policy Framework, as well as integration in regulation, be pursued. In addition, he acknowledged that Energy Transformation and Climate Resilience Building were complex issues, and stated that critical steps would have to be taken for Member States to achieve Sustainable Development.

In view of the foregoing, he welcomed the discussions that would occur during the Meeting, especially those related to the identification of strategies for investment that would assist the Region in realising Sustainable Energy Development, whilst mitigating and adapting to the effects of Climate Change.

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The Honourable Robert Pickersgill, Minister of Water, Land, Environment and Climate Change, Jamaica delivering Opening Remarks (Centre) is flanked by Ambassador Manorma Soeknandan, Deputy Secretary-General, CARICOM (R) and Dr. Douglas Slater, Assistant Secretary-General, Human and Social Development, CARICOM Secretariat (L)

.Key Decisions On conclusion of the Meeting, some key decisions which were taken by CARICOM Ministers with responsibility for Energy and the Environment included:

+ The Caribbean Centre for Renewable Energy and Energy efficiency (CCREEE) - the Meeting reiterated support for the process of selection of the Host Country as agreed at the Fifty-Fourth Special Meeting of the COTED (Energy) held prior to the convening of this Meeting, in Guyana from 2-4 February 2015. + Integrating Climate Issues into the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS) - the Meeting agreed that sustainable energy and climate change were closely linked and that the transition to a low carbon energy sector within Member States simultaneously contributes to climate resilience, and also agreed to support the development of a regional strategy for reducing the vulnerability of the energy sector to climate effects. + The Post 2015 Development Agenda, including the Climate, Water and Energy Nexus, Strategies for Increasing Climate Adaptation Capital Inflows into Sustainable Energy Development, and Climate Resilience Building into Energy Planning - the Meeting approved that Secretariat’s proposed plan on the Think-Tank for supporting Member States during the Inter-governmental negotiations on the Post-2015 Development Agenda and underscored the importance of effective coordination between the Inter-governmental negotiations on the Post-2015 Development Agenda and the preparatory process for the Third International Conference on Financing for Development, in order to ensure coherent and integrated regional positions. + Strategies for Optimising Cooperation between the Climate and Energy Divisions at the National Level - the Meeting agreed on areas of functional cooperation in energy and the environment, including potential opportunities under the Post-2015 Development Agenda.

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PAST HAPPENINGS

Caribbean Clean Energy Technology Symposium (CCETS) Over two hundred delegates from CARICOM and other countries attended the first ever Caribbean

Clean Energy Technology Symposium which was held from 24-27 March 2015 in the United

States Virgin Islands (USVI). The symposium was co-hosted by the US Department of Energy, Caribbean-Central American Action (C-CAA), and the government of the USVI in collaboration with the Inter-American Development Bank (IDB).

The CCETS brought together sector experts of the Caribbean to share best practices as well

as their knowledge on clean energy efficiency and security for the Caribbean. Here, they were able to work together to identify common goals and create action plans with deliverables that will

lead to increased access to energy efficiency and renewable energy technology in Caribbean countries.

The Caribbean Community (CARICOM) Secretariat during the pre-symposium session made a presentation on the strategies for Caribbean sustainable energy and variable renewable

energy (VRE) grid integration which was presented by Dr. Devon Gardner, Programme Manager for Energy at the CARICOM Secretariat.

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During the CCETS there were several discussions and these were led by energy leaders and other stakeholders within and outside the Region. The discussion topics included assessing the current energy landscape, developing a workforce around green energy, financing clean energy technologies and exploring how utilities in the Caribbean region and other areas are adapting to a cleaner energy economy as they maintain profitable and more sustainable operations.

After the panel discussions several experts in the field of energy shared their thoughts and ideas on energy education, economic growth and clean energy, buildings and energy efficiency, electricity generation and delivery, energy assurance, base load electricity diversification and clean transportation.

The US Department of Energy also presented the “Energy Transition Initiative: Islands Playbook”, an action-oriented guide with steps on how to organise for a transition towards an energy system which will eliminate dependence on one or two imported fuels by relying on local resources. The Islands Playbook also includes templates and worksheets that highlight lessons learned from the symposium in the USVI and other areas.

Furthermore, the Clean Energy Solutions Center highlighted its resources, webinars, training and expert assistance services, as remarks on climate change were provided by representatives of the US Environmental Protection Agency.

Strategic partners of the CCETS and for future Caribbean energy initiatives included the CARICOM Secretariat, The Caribbean Council, CARILEC, University of the Virgin Islands’ Caribbean Green Technology Center, Institute of the Americas, New Energy Events, Organization of American States, Virgin Islands Economic Development Authority, Virgin Islands Energy Office, and the Virgin Islands Water and Power Authority.

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PAST HAPPENINGS

US CARICOM SUMMIT: Obama Commits to Deepening Energy Cooperation Through Clean Energy Initiatives CARICOM Leaders on the 9th April 2015 met with United States President Barack Obama in Kingston, Jamaica for the US-CARICOM Summit which was centered largely on energy security, affordable energy and climate change mitigation. It was here, that President Obama reaffirmed his country’s commitment in partnering with the Region towards advancing economic development, security and good governance.

During the Summit, Leaders of the Region discussed broad ranging issues including improving energy security, reducing energy costs, and fighting climate change.

CARICOM leaders were reassured that the United States would be deepening its cooperation with the Region through several important initiatives.

One such initiative was the launch of a US$20 million Clean Energy Finance Facility for the Caribbean and Central America to encourage investment in clean energy projects.

The Facility would provide early-stage funding to catalyze greater private and public sector investment in clean energy projects. It would also draw on the expertise of the U.S. Overseas Private Investment Corporation (OPIC) and the U.S. Trade and Development Agency (USTDA) in coordination with the U.S. Agency for International Development (USAID) and the Department of State.

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It was also highlighted that the OPIC was in advanced talks to finance a 20 MW solar farm in Jamaica, and has already committed to financing Jamaica’s largest private-sector wind farm, a 36 MW facility in Malvern, St. Elizabeth Parish. OPIC is actively looking for opportunities to support solar and wind energy projects in Jamaica and throughout the broader Caribbean region.

Because of the reliance of Caribbean States on imported fuel the United States would be working with the Region towards the establishment of an Energy Security Task Force. The Task force would evaluate progress of the cooperation between the US, the Caribbean and Central American countries with the aim of identifying concrete steps to advance energy sector reform, regional integration and clean energy development.

Through the Summit it was revealed that the Caribbean Clean Energy Technology Symposium (CCETS) was held in St. Thomas, USVI in March. There the Department of Energy of the United States assembled energy stakeholders and experts within the Caribbean to explore opportunities ranging from clean energy, efficiency, diversifying electricity generation, clean transportation and energy education. Stakeholders were divided into working groups and these groups would report on their progress at the 2016 Symposium to be hosted by Jamaica. Also, it was indicated that the Department of Energy had launched a new Energy Scenario Planning Tool¸ building on its Energy Transitions: Island Playbook, to help island communities plan clean energy projects that are most likely to attract investment, capitalize on local resources, and meet the energy needs of consumers.

The U.S. Department of Energy (DOE) and the Ministry of Science, Technology, Energy, and Mining in Jamaica signed a statement of intent that sought to advance shared interest in sustainable energy. Potential areas that were identified for cooperation included energy conservation and efficiency, energy infrastructure, micro grids and energy storage, fuel diversification, and energy policy. Moreover, USAID was launching a complementary project focused on the Eastern Caribbean that would develop new financing tools for energy efficiency and renewables.

In conclusion, it was agreed that the tourism industry was the largest energy user in the Caribbean. The Department of Energy, with its Pacific Northwest National Laboratory, and OPIC are undertaking the Caribbean Hotel Energy Efficiency and Renewables (CHEER) initiative, which supports projects to improve energy and water efficiency as well as the exchange of best practices in the hotel and tourism industry.

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PAST HAPPENINGS

Clean Energy Initiatives Launched at the Second Ministerial Meeting of the Energy and Climate Partnership of the Americas (ECPA) Several CARICOM Energy Ministers joined fellow western hemispheric energy ministers and representatives from International Organisations at the Second Ministerial Meeting of the Energy and Climate Partnership of the Americas (ECPA) on 25 – 26 May 2015 in Merida, Mexico, to advance discussions aimed at developing concrete actions to combat climate change and enhancing the sustainability of the energy sector.

The Ministerial Meeting, which was held just prior to the Sixth Clean Energy Ministerial (CEM6) on 27 – 28 May 2015, announced the creation of the Western Hemisphere Clean Energy Initiative and the establishment of the North American Energy Ministers Working Group on Climate and Energy. The Meeting also established an ECPA Steering Committee tasked with reviewing, validating and monitoring the policy and technical activities of the Work Plan.

Through the ECPA Western Hemisphere Clean Energy Initiative, participating countries agreed to work towards collectively doubling their renewable sources, such as, solar, wind, small-scale hydropower, sustainable biomass, and geothermal, by 2030.

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The initiative seeks to increase collaboration among participating countries to:

+ Facilitate each country’s roadmap to achieve its renewable energy goals in the context of its broader energy infrastructure + Increase availability of quality renewable resource data + Share modeling and simulation toolkits + Cooperate on effective energy policy development and planning + Enhance the flexibility and resilience of grid systems + Foster energy innovation and promote workforce capacity and training + Focus on the energy-water nexus + Promote energy access, including for remote communities The North American Energy Ministers Working Group on Climate and Energy, comprising Canada, Mexico and the United States, will focus on a number of issues, including reliable and low-carbon electricity grids, deployment of clean energy technologies including renewables, and energy efficiency for equipment, appliances, industries and buildings. The Ministerial-level Working Group will also look at carbon-capture, use and storage, climate change adaptation and resilience emissions from the oil and gas sector.

The ECPA was launched at the 2009 Summit of the Americas in Trinidad and Tobago by President Obama, in support of the Summit Declaration on Energy. It provides a medium for independent states within the Western Hemisphere to collaborate on efforts aimed at addressing common energy and climate change issues through collective programs, projects, and initiatives.

At the First Hemispheric Energy Ministerial held in April 2010, seven thematic areas for regional collaboration were agreed on, namely: (i) energy efficiency; (ii) renewable energy; (iii) efficient use of fossil fuels; (iv) energy infrastructure; (v) energy poverty; (vi) sustainable forests and land use; and (vii) adaptation.

The Third ECPA Ministerial will be hosted by Chile in 2017.

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PAST HAPPENINGS

New Global Challenges announced at the Sixth Clean Energy Ministerial (CEM6) Several CARICOM Energy Ministers, along with US Energy Secretary Ernest Moniz joined Energy Ministers from the Western Hemisphere and International Development Partners at the Sixth Clean Energy Ministerial (CEM6) on the 27 – 28 May 2015 in Merida, Mexico. The main objective of this year’s Ministerial was to develop clean energy technology solutions and policies that could assist in reducing of the devastating effects of climate change and pollution.

US Energy Secretary Ernest Moniz, in his address, declared that both the Clean Energy Ministerial and Energy and Climate Partnership of the Americas (ECPA) provide, “a vital opportunity for some of the world’s most important clean energy leaders to come together to cooperate on clean energy solutions ahead of the climate negotiations which is slated to be held in Paris this December”. He also highlighted the pivotal role of the Ministerial in fast-tracking the transition towards a cleaner and friendlier global economy.

A key output of the Meeting was the launch of the second phase of the CEM (CEM 2.0) which is expected to play a key role in accelerating the transition to a global clean energy economy. In an effort to facilitate this process, a CEM Steering Committee was established to provide year round strategic guidance and leadership for CEM-related initiatives, and to prioritise efforts aimed at deriving greatest impact.. Three new global initiatives under the CEM which will address major technology and policy issues across

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the globe were also announced. These are:

+ The establishment of a global race under the Clean Energy Ministerial Global Lighting Challenge to accelerate the sale of good, affordable and energy efficient lighting products to 10 billion in the shortest possible time. The initiative will be supported by the United States, India, South Africa, Australia, China, France, Germany, Indonesia, Korea, Sweden, Mexico, Russia and the Directorate General for Energy of the European Commission and is aimed at decreasing the annual amount of Carbon Dioxide emissions. + The announcement of efforts by the United States to significantly scale up the Clean Energy Solutions Center which has just formed a partnership with the Climate Technology Centre and Network. This will be achieved through an increase in the number of global experts employed and is aimed at significantly boosting the response to requests for assistance. It is also intended that a new portal dedicated to Clean Energy Finance, will be established. The Solutions Center has provided expert policy assistance to more than 80 countries worldwide. + The establishment of national roadmaps and strategies under the CEM Power System Challenge geared at increasing energy efficiency by capitalising on renewable sources of energy, such as solar and wind power, as well as by focusing on the introduction of smart grid technologies. Countries such as Denmark, Finland, France, Germany, India, Indonesia, Japan, Korea, Mexico, Norway, South Africa, Sweden, the United Arab Emirates, the United States, and the Directorate General for Energy of the European Commission have pledged their support by endorsing principles which will drive their countries towards more resilient, affordable and clean supply of energy in the future.

President Barack Obama, via a video message, announced that the Seventh CEM would be held in the United States in 2016, while China’s Minister of Science and Technology Wan Gang signaled that country’s intent to host the 8th CEM in 2017.

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VIENNA ENERGY FORUM (VEF) 2015 The Vienna Energy Forum (VEF) 2015 themed ‘Sustainable Energy for Inclusive Development’ was held from 18-20 June 2015 at the Hofburg Palace, Vienna, Austria. The event brought together participants from about 60 countries, including 24 ministers, as well as high-level dignitaries and senior representatives of international and non-governmental organizations,

academia, civil society and the private sector. The event was organized by the UN Industrial Development Organization (UNIDO), Austrian Federal Ministry for European and International

Affairs, International Institute for Applied Systems Analysis (IIASA), the UN Secretary-General’s Sustainable Energy for All (SE4All) initiative and the Austrian Development Agency (ADA).

VEF 2015 convened against the backdrop of three crucial events set to take place in 2015: the Third International Conference on Financing for Development to be held in Addis Ababa,

Ethiopia, in July; the UN Summit for the Adoption of the post-2015 Development Agenda taking place in New York, US, in September; and the 21st session of the Conference of the Parties (COP 21) to the UN Framework Convention on Climate Change (UNFCCC) to be held in Paris,

France, in December. VEF 2015 aimed to contribute to the post-2015 development agenda and climate processes by emphasizing their multiple co-benefits, and by showcasing best practices and actions on the ground.

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The event consisted of high-level panel discussions

and parallel sessions considering a range of issues, including energy efficiency, public-private partnerships (PPPs), sustainable transport and innovative financing

mechanisms for sustainable energy. Speaking in HighLevel Panel IV, Regional Strategies for Sustainable

Energy and Best Practices, His Excellency Dr. Vince Henderson, Permanent Representative of Dominica

to the UN and Chair of the Small Islands’ Energy

The event brought together participants from about 60 countries, including 24 ministers, as well as...

– Vienna Energy Forum 2015

Initiative (SIDS DOCK), gave the perspective of Small

A series of side events also took place throughout the

approaches work best. He discussed similarities and

SAMOA Pathway – Launch of the Global Network of

Island Developing States (SIDS) and said that regional

differences in the SIDS regions, noting, for instance,

that the issue of access was different in each as the Pacific suffers from a lack of modern energy infrastructure, whilst the Caribbean has infrastructure

but the cost for access is at times, prohibitive. He

lauded partners, such as UNIDO, Austria and the EU, and called for resource rich-islands to help pass clean

energy technologies on to islands. Hon. Darcy Boyce, Minister for Energy, Telecommunications, Immigration and Investment, Barbados, participated in High

Level Panel VIII, Post 2015 Development Agenda,

and described issues of energy security in SIDS

and the linkages with investments and the economy.

He underscored the importance of involving youth, discussed borrowing rates and access to funding for climate adaptation, and welcomed the future opening

of the Caribbean Center for Renewable Energy and

three-day forum. One of these was the “Energizing the Regional Sustainable Energy Centres for Small Island

Developing States (SIDS)” Session, which was co hosted by SIDS DOCK, the Energy Branch of UNIDO

and the Energy Unit of the CARICOM Secretariat. The

event included a panel that featured, inter alia: H.E. Dr. Vince Henderson, Hon. Darcy Boyce and Dr. Devon Gardner. The Panelists highlighted the opportunities and synergies that are possible under the centres and

emphasized the transformative role that the network of

regional sustainable energy centres for SIDS – Pacific, Caribbean, Africa and Indian Ocean – can play in enhancing SIDS SIDS cooperation.

The VEF concluded with the presentation of the Outcome Document consisting of eight key messages which will be transmitted to the three 2015 global processes.

Energy Efficiency. He called for research on how to

In key message one, the Forum recommends the

emerging technologies such as Ocean Thermal Energy

Assembly, in particular SDGs 7 (access to sustainable

get more energy, food and water from the sea through

Conversion (OTEC). Dr. Warren Smith, President of the Caribbean Development Bank (CDB), was the keynote speaker in High Level Panel IX, New and Innovative

Financing Mechanisms for Sustainable Energy. Dr. Smith highlighted “adequate, timely and appropriate financing” as a key challenge to realizing sustainable

energy. Emphasizing concessional financing, he explained that traditional financing instruments used

for diesel and gas power generation are inadequate for renewable energy development because of real and perceived barriers.

approval of the SDGs in September by the UN General

energy) and 9 (sustainable industrialization). This message further cites major scaling up of action on the ground as key to the success of the 2015 global

development debates. Key message two links climate action to action on SDGs. This message describes

the three major global debates in 2015 as a rare

opportunity to link climate action and the SDGs. Key message three states that two-thirds of energy

efficiency potential will go untapped unless effective policies and measures are put in place to allow

necessary action and investments. Key message four

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underlines that, to meet energy efficiency and renewable energy potential, scaled up action and investments are needed in targeted areas, such as cities, and in key sectors such as industry, transport, power generation

and buildings. Key message five states that the nexus between energy, transport, food, water and health is inseparable is an essential contributor to social progress and human wellbeing, and needs to be approached in an integrated manner for adequate solutions. Key message six states that greater effort is needed to strengthen

the synergies between the three 2030 SE4All goals: (ensure universal energy access, double the global rate of improvement in energy efficiency and double the share of renewable energy). Key message seven outlines

that much of the potential for greater impact in climate and development action goes untapped because of lack of regulatory cohesion and lack of synergy between national and sub- national efforts. This message highlights

the need for regional approaches, such as regional centers, on renewable energy and energy efficiency, and cohesive policy actions for lowering transaction costs and promoting economies of scale for regional approaches.

Key message eight states that sustainable energy and women’s empowerment are mutually reinforcing goals

and that empowering women to become agents of sustainable energy will be key to achieving truly inclusive and sustainable development.

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ISLAND ENERGY TRANSITIONS: Pathways for Accelerated Uptake of Renewables The International Renewable Energy Agency (IRENA) and the French Government, with the regional Government of Martinique, convened the Conference on Island Energy Transition which focused on accelerating the uptake of renewables on islands. There were over two hundred invited participants from Caribbean islands who discussed, inter alia: renewable resource

assessments as a prerequisite to investment; waste-to-energy systems, which can reduce waste disposal and electricity costs; and renewable-based desalination, which can provide islands with fresh water from the surrounding sea. This was stimulated by the fact that energy is a critical

development challenge for islands, and most electricity is generated from imported diesel fuel at a

high cost; thus, fuel import bills often exceed total export revenues. Conference participants from the Caribbean Community (CARICOM) included Hon. Ian Liburd, Minister of Public Infrastructure,

Post Urban Development and Transport in the Federal Government of St. Kitts and Nevis, and Dr. Devon Gardner, Programme Manager for Energy at the CARICOM Secretariat.

The outcome of the meeting was summarized through the Martinique Action Plan (MAP):

We, the participants of the Martinique Conference on Island Energy Transitions, have met in Martinique on 22-24 June 2015 to advance the goal of unlocking and mobilizing the human,

financial and technical and natural resources that are needed to transition the energy systems of small island developing states (SIDS) to a sustainable energy future.

We note that SIDS face significant economic and social challenges, including those arising

from climate change, energy price and supply volatility, and energy insecurity stemming from

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the reliance on imported fossil fuels. In this context, we underline that many islands are global leaders in the promotion of renewable energy but much remains to be done to reach set ambitions.

We further note that SIDS possess immense renewable resource potential, including biomass, geothermal, hydro,

marine, solar and wind. We recognize that rapid progress to diversify the energy mix by accelerating the costeffective use of domestic renewable energy sources, coupled with energy efficiency measures, is an essential element of a safer and more prosperous future.

We recall the SIDS Accelerated Modalities of Action Pathway (SAMOA pathway), adopted in September 2014 at the Third International Conference on SIDS, which stresses the importance of renewable energy and requests

a strategy for deployment of renewable energy resources, development of sustainable energy roadmaps, and access to increased capital flows for sustainable energy projects.

We emphasise that renewable energy is one of the key means for mitigating climate change and strengthening

resilience against its impact. The upcoming UN Climate Change Conference in Paris (COP21) will be an

opportunity to showcase the progress in deployment of renewable energy to date and to renew commitments to act in the years to come.

We recognise that the SIDS Lighthouses Initiative, launched at the UN Secretary-General’s Climate Summit in 2014, provides a holistic framework for action to support the transformation of island energy systems, and a means for communication through its Global Renewable Energy Islands Network (GREIN).We acknowledge

that partners of the SIDS Lighthouse Initiative continue to grow, a testament to the commitment of partners to accelerate an energy transition in SIDS.

We recognize also that existing programs and strategies of SIDS – inter alia, the Sustainable Island Initiative (SIDS DOCK), Caribbean Sustainable Energy Roadmap and Strategy (C SERMS), and Pacific Islands Energy Policy and Strategic Action Plan (PIESAP) – provide orientation for the SIDS Lighthouse Initiative and other global partnerships to support the transformation of island energy systems.

We note that public-private partnerships can be instrumental in unlocking the investment capital that islands require to fully exploit their renewable energy potential and acknowledge that this exploiting potential will require focused and targeted action to improve access to capital at affordable rates.

We acknowledge that community engagement and support of civil society is critical for the long term success of the transition process.

We welcome the opportunity for dialogue in Martinique that has provided a platform for exchange of views and experiences of many stakeholders and, based on this dialogue we recommend to:

+ Support the energy transition of SIDS through concrete actions to open island markets and planning processes to renewable energy options in a fair and systematic way, facilitate the financing of such options, and build human and institutional capacities to exploit them effectively.

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+ Facilitate the implementation of programmes and projects to achieve concrete outcomes through: E nabling policy and regulatory environments to attract renewable energy investment, including strengthened independent regulatory authority to set ambitious renewable energy targets, allow fair returns on capital investments, and provide incentives for future projects which can support the energy transformation of SIDS while helping to ensure reliable, affordable energy services to island citizens.

Encouraging the use of financial risk mitigation instruments and blended publicprivate financing structures to reduce the cost of capital.

Dissemination and promotion of successful business models.

Strengthening of technical and institutional capacities to assess and develop renewable energy potentials, generate proposals for bankable renewable energy projects, and manage their integration into energy systems.

Intensifying efforts to assess and develop all sources of renewable energy including those not commonly considered in islands settings, such as biomass, geothermal and marine, that can have a transformative impact to countries and regions.

Enhancing the application of solutions such as waste-to-energy systems, renewable energy desalination systems, hybrid systems incorporating greater shares of solar and wind generation in the power sector, and electric vehicles fueled by renewable electricity in the transport sector, to fully benefit from the potential renewable energy offers.

Regional and international cooperation including among SIDS to encourage the exchange of experiences, accelerate the learning process, and facilitate coordination of effort.

+ Contribute, where applicable and appropriate, to the development of concrete actions and the realization of projects outlined below with a view to demonstrating progress atCOP 21 in Paris We encourage the continuing focus on the deployment of renewable energy in SIDS and welcome the upcoming

Lighthouses events in Hawaii, Bangkok, and Cape Town [supported by USA, Japan and Germany, respectively] in the lead up to COP21 to maintain the momentum for action.

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MEMBER STATE PROFILE

St. Vincent & The Grenadines

St. Vincent’s Geothermal Revolution: Full Steam Ahead St. Vincent and the Grenadines has a population of 104,000 people and is 150 square miles,

lying 61o West or approximately 100 miles west of Barbados, and 13o North or 24 miles south of Saint Lucia. From a morphological point of view, St. Vincent shares similarity with the remaining Windward Islands and consists of a central axial range of mountains, starting from La Soufriere

(1,234 m) in the north and extending to Mt. St. Andrew in the south. The island is entirely volcanic and has six main volcanic centres located along its central axis.

Like a majority of CARICOM Member States, with the exception of Trinidad and Tobago, St. Vincent and the Grenadines is heavily dependent on imported oil for its commercial energy

needs, including electricity generation. This oil dependency was most significantly reflected in the

historically high electricity rate of 40 US cents per kilowatt hour during 2014, which resulted from an increase in the fuel surcharge passed unto customers due to damage caused by the floods of December 2013 to hydropower plants in the island. St. Vincent and the Grenadines has a long

history of hydroelectricity generation, dating back to 1952, which now constitutes around 20% of the electricity supply.

Despite the obvious benefits, the Government of St. Vincent and the Grenadines in recent years

made the decision to restrict further hydropower development on account of what was deemed to be the “significant social impacts to villagers that relied heavily on the rivers”. Geothermal power

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emerged therefore as the most suitable option for

seeming unsuitability of the area to the engineering

renewable source

seeming unsuitability of the area to the engineering

production of baseload electricity from an indigenous, of

Vincent. According to Prime

energy

within

St.

Minister Hon. Ralph

Gonsalves:

equipment for test drilling. This is compounded by the and construction of the power plant, should the tests

yield success, and the electricity transmission upgrade

“Geothermal power will become the game changer for economic development in St. Vincent and the Grenadines”. – Prime Minister Hon. Ralph Gonsalves, St. Vincent Interest in geothermal development in St. Vincent is not new and, as early as 1991, studies were conducted

as part of the larger Eastern Caribbean geothermal

reconnaissance project. Those studies suggested that St. Vincent was not a primary geothermal development

area when compared to the islands of Nevis, Montserrat and Dominica, which were identified as being most suited for geothermal development within the Eastern Caribbean.

Later

studies

(1996-2012)

revealed

however, that St. Vincent’s geothermal resource is deeply hosted and the electricity generating capacity

in excess of 100 megawatts, which is well beyond the required capacity.

Given the revelations from the last two decades of studies, the obvious question is:

that would be required for grid connection. Moreover,

there are also challenges related to geohazards such The bottom line is that an “absence of economies of scale” makes geothermal development in St. Vincent a

very expensive option, which does not attract sufficient interest from private investors. This is not a situation

that is unique to St. Vincent; it is, in fact, similar to the case of other OECS countries. Dominica, which

has made the most significant progress, also has load demand and similar challenges. Nonetheless, that country has successfully drilled three exploration

wells and one production well, proving the commercial viability of their geothermal reservoir, through public financing of which a significant component was grant

aid – approximately US $27 million – that was provided

Why has geothermal development in St. Vincent not progressed beyond the preliminary survey phase?

The short answer is likely to be the high upfront

by the French Government and the European Union.

exploration, particularly drilling. A more extensive

This injection of capital bridged the crucial funding gap

incised valley-ridge topography on the flanks of La

less risky production phase of the project, when the

costs and the risks involved in geothermal resource

answer would however be related to the deeply

Soufriere and the significant challenges that this morphology pose to geological field work, including the mobilization of drilling rigs and other engineering

equipment for test drilling. This is compounded by the

between the early, risky startup phase and the mature, resource have been proven and the project is bankable

and attractive to private capital. Dominica’s rich

geothermal resource and its geographical proximity to the French Overseas Departments of Martinique and

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Guadeloupe captured the attention of France. It was in the interest of the Government of France to support the development of the geothermal resources in Dominica as the project has the

potential to provide electricity to the overseas departments via submarine cables, which, one the one hand, reduces their cost of electricity and, on the other hand, adds to the carbon reduction

strategy of France, in particular, and the EU, in general. Only one other OECS country, Montserrat which is a British Dependency, has made similar progress. This has been mostly attributed to the injection of public funds from the UK Department for International Development (DFID).

The lesson of the aforementioned experiences is that “derisking” of geothermal projects requires

public financing, which is frequently not available within our respective countries. An ability to attract international public (donor) financing is therefore important for the replication of the more successful of the OECS models, viz. Dominica and Montserrat.

A critical fact is that test drilling can account for up to 15% of the overall capital cost of the project

and is typically required at a stage where the risk of project failure is still high. For countries such as St. Vincent that have very limited fiscal flexibility, the Government cannot absorb the risk and overcoming the funding gap will require the injection of grants. An inability of the St. Vincent project to attract the requisite grant funding caused the Government to approach its geothermal

development in an alternative way. The “public private partnership (PPP)” method seemed to be a logical choice for achieving the capital injection that was necessary for financing some of the

early stage activities without the injection of capital from Government; this required, nonetheless, some degree of public commitment to geothermal power development.

The Government of St. Vincent and the Grenadines invited proposals from private companies to develop “new geothermal sites” through concessions, in which a majority of the risk associated with the exploration was taken by the private developer. A Letter of Intent was signed in January 2013 between the Government and two private partners – Reykjavik Geothermal and Light &

Power Holdings respectively. The Letter signaled the mutual intent of the Parties to proceed with

additional good faith negotiations designed to develop the Geothermal Project on the basis of an investment decision, which will contain detailed estimates of capital and operating costs, target

tariffs, rates of return and rates of taxation, after the resource have been proven. This model provides immediate access to technical expertise and financial resources and requires:

Under this arrangement, the geothermal consortium (Reykjavik Geothermal and Light & Power

Holdings) and the Government will incorporate a company under which the project will be

developed under an equity sharing arrangement. Government’s equity portion will be financed through concessionary loans, grants (where available), land contribution, and tax concessions.

Though there is cognizance that the injection of capital by the private investor will come at a “high cost” on the basis of the fact that this is being done during the riskier phase of the project development, there is optimism that the return on equity may be brought above the threshold

required by the investor if Government, with the support of its international development partners,

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can increase the grant portion of the initial project

is currently being finalized and the Government is

the opportunities available for assistance from the Drill

transform the energy sector of St. Vincent and the

development costs. St. Vincent is therefore anticipating

Risk Fund of the CDB, IDB and JICA, which has the potential to keep the return on equity for the project

investors above their threshold rate and lower the cost of power to the utility.

The project is using best practice project management

methods and control processes, including the decision gate process typically deployed for large engineering

projects. Using the decision gate, all Parties are able to assess progress, and the concomitant technical

and economic feasibility associated with same, at key project milestones. The Clinton Foundation has been providing decision support to Government, ensuring

that the agreements developed contain, legal, financial,

confident that this project still has the potential to Grenadines, thereby reducing (perhaps eliminating

altogether) dependency on imported diesel for power

generation. Once operational, the plant is expected to supply the entire baseload power requirements for the

country and increase renewable power generation to over 80%, which is in excess of the target of 60% by 2020 that was committed to under the National Energy Action Plan.

The expectation is that the geothermal revolution

in St. Vincent will happen; as a consequence, the “game changing shift� in the sustainable economic

development of St. Vincent and the Grenadines is becoming increasingly possible.

and other terms that are reasonable for all Parties.

The preliminary phase of the project was concluded

and the result was a very optimistic outlook. The positive outlook was largely due to the combination

of innovative data analysis; advanced technology use; and partnership with an internationally credible

development team. The business model for the project

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PERSONALITY PROFILE

Ms. Kelly Tomblin JAMAICA PUBLIC SERVICE COMPANY JAMAICA, WEST INDIES

Making Energy Strides in Jamaica Ms. Kelly Tomblin’s trademark of rebuilding, rebranding and repositioning appears to be paying dividends in the energy sector in Jamaica. In just a few short years, the Jamaica Public Service Company (JPS), under the leadership of the charismatic Ms. Tomblin, has been making great strides to transform itself into a market standard company.

JPS is a vertically integrated electric utility company and the sole distributor of electricity in Jamaica. The Company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. It owns and operates thirteen power generation facilities four of which are conventional thermal generation plants and nine of which are small hydropower plants. Additionally, the company recently acquired minority shares in a number of ventures seeking to add around 120 MW of renewables to the national grid. And speaking of grid, JPS manages 43 substations and approximately 14,000 kilometers of distribution and transmission lines.

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Ms. Tomblin, the President and Chief Executive Officer of JPS, comes with years of experience and industry knowledge and an unpretentious love of what she

describes as “the most fascinating industry in the world”. Her journey with JPS, which began in April 2012, has witnessed, renewed interest in diversification

of power generation – including the addition of

increasing amounts of renewable energy to the grid

and the advancement of liquid fuel replacement by gas generation systems. But it is perhaps the non-technical

issues, which are so frequently overlooked, that have paved the way for much of the transformation within the company. JPS, during her tenure, developed a

new mission and vision, which she recollects as an important milestone.

energy efficiency” is the greatest challenge that faces the JPS as the company seeks to increasingly shift to a business model that meets the challenges of customers and explores the opportunities provided by the emerging energy situation. She explained that the company was only paid for kilowatt hours. She also suggested that there was urgent need for an industrial zone, with an economic development tariff, supported by a strong utility with a strong grid that can achieve greater resilience to natural disasters in what is a hurricane zone (Jamaica).

According to Ms Tomblin, it was extremely pivotal that policy-makers establish a policy pathway that, not only articulates, but explicitly supports energy efficiency and conservation. Moreover, they is need to take a holistic approach, which may be achieved through such

“One of the proudest moments I’ve had was when I was standing in that room, in a line office which is out in the field and they went around the room after saying, that’s like a pledge of the allegiance, the vision and mission of our company, and throughout the room, people were able to not only repeat it, but really say how they contributed to it and I just felt really a sense of alignment with that.” Kelly Tomblin Under Ms. Kelly Tomblin’s management, JPS is well on its way to accomplishing a new energy revolution which aims to find a solution for every Jamaican. Moving away from the recent internal and external trust crisis, JPS has spent some US$22M to replace basic infrastructure technology systems and distribution automation which Ms. Tomblin believes is continuing to position the company as a market standard. Nonetheless, JPS is not without its share of difficulties. Achieving public satisfaction and proving that JPS is all about caring for its customers has not been easy in a country where there is a history of mistrust between consumers and the utility.

“You’ve got to rebuild trust before you can be a true energy partner and I think we are on the cusp of being that true energy partner and having customers believe that, ”the CEO stated.

Ms. Tomblin thinks that “functioning under a regulatory framework which does not support conservation and

tools as integrated resource planning, to make the decisions that are necessary to support the established priorities. She believes that, for instance, renewable energy and natural gas, can work together to foster and drive sustainable growth not only in Jamaica but the wider CARICOM Region. But most importantly, she believes that there is an absence of clarity regarding what the decision makers within the Region want; she quickly interjected that this issue has been a barrier to transformation within the energy sector as frequently, not enough was being done to “ensure that the policy initiatives work together”.

“What we need to do to ensure that we keep prices stable and affordable and to do that, we need to: (a) Ensure we are looking at a holistic approach to the environment; and (b) make sure that we have clear priorities. In the energy triangle, there has got to be affordability, security and sustainability,” she said.

Referring to Jamaica, in particular, the JPS CEO was of

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the view that for the National Energy Policy to deliver on its goal of breaking oil dependency, there is need for greater transparency in policy-making. She also believes that, once the policy decision has been made, greater focus should be placed on their implementation; the policy to introduce natural gas into the electricity generation mix of Jamaica, for instance, she felt was not being sufficiently supported by strong policies to attract the requisite gas supply for Jamaica. Though renewable energy within the Caribbean was not the cheapest option, Ms. Tomblin suggested, she held the firm belief that the Region has a strong renewable energy policy. The task at hand, she suggested however, is that there is need to ensure that the approach to renewable energy investments was organized and efficiently managed.

Ms. Tomblin also spoke of the role for smart grids in contributing to the energy transition, stating that JPS have begun “playing it smart” by implementing smart grid architecture, especially to manage their large customers. The company, she says, intended to extend this facility to the entire customer base on the grid. This, she believes, can be coupled with other major innovations to help customers to manage their energy use more efficiently and may help to reduce non revenue losses. She stated that the future energy needs of consumers in Jamaica and the Caribbean are rapidly increasing, and innovation for customers, such as the use of mobile money to pay for electricity services will become pivotal. This she says however, must be done so as to provide a single end result: cost-efficient energy to the consumer!

And what of CARILEC, the Caribbean Association of Electric Utilities?

Ms. Tomblin, recently elected to the CARILEC Board of Directors, is optimistic that in this era of energy transition, that organization can help to shape the transformation of the energy systems within the Caribbean, especially serving as a “real source of knowledge-sharing” and operating as a forum for members to assess and share industry best practices and regulatory policies. The expectation is that this will allow other utility managers within the Region to explore the kinds of innovation that Kelly Tomblin have started and perhaps, uproot the status quo and achieve ground-breaking ideas and results.

As Ms. Tomblin said “everyone wants cheaper energy and that’s always the number one goal”.

The maintenance of a balance that provides affordable energy through an efficient, stable, reliable grid from secure, clean (and where possible), indigenous sources is no easy task.

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Corporate Profile JAMAICA PUBLIC SERVICE COMPANY LIMITED (JPS) is an integrated electric utility

company and the sole distributor of electricity in Jamaica. The Company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers.

In April 2011, Marubeni Corporation entered into a Purchase and Sale Agreement with Korea East-West Power (EWP), for joint ownership of majority shares (80%) in the Jamaica Public Service Company Ltd (JPS). The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has approximately 606,654 customers who are served by a workforce of approximately 1,690 employees.

The Company owns and operates: 4 power stations, 9 hydroelectric plants, 43 substations and approximately 14,000 kilometers of distribution and transmission lines.

Along with the provision of electricity, JPS is a key partner in national development. The company has a vibrant corporate social responsibility portfolio and makes significant contributions in the areas of education, health and sports. The company also has a strong environmental focus and carries out its operations in an environmentally friendly manner.

The Office of Utilities Regulation (OUR), is the independent regulatory agency with responsibility for the electricity sector.

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REETA PROJECT PROFILE

The CARICOM Building Energy Efficiency Project (BEEP) From the very beginning of 2015, the CARICOM Secretariat has been operating 15 per cent more efficiently in terms of energy utilisation and has provided all the services which are expected and required of it while using five sixths of the energy that was budgeted for in the overall budget.

This is a remarkably significant achievement which has resulted in financial savings of more than USD 25,000 over the first four months of 2015 compared to the corresponding period in 2014. The result has been one of the initial and direct benefits of the CARICOM Building Energy Efficiency Project – also known as the CARICOM BEEP. The project is one which has been initiated by the Energy Unit in the CARICOM Secretariat and has been supported with technical assistance from the Renewable and Energy Efficiency Technical Assistance (REETA) Project that is implemented by Deutsche Gesellschaft fßr Internationale Zusammenarbeit (GIZ) with funding from the German government.

The project is intended to make real improvements in the utilisation of energy in the CARICOM Secretariat by means of a number of complementary measures including -

+ Improved energy management; + Energy efficiency investments; and + On-site electricity generation using solar and biomass energy systems + Capacity building among staff members in CARICOM

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CARIBBEAN ENERGY QUARTERLY

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One of the first steps of BEEP was to establish a clear policy from the Management of the Secretariat and this has been published in the form of posters which highlight the Energy Vision of the organisation.

The Project Officer with responsibility for utilities has been mandated by the Secretariat to fulfil the role of Energy Manager, who will be charged with actively addressing opportunities to improve the utilisation of energy. Moreover, at the same time, an energy audit was undertaken to update the management team on the issues and of opportunities to further improve the utilisation of energy through investments in more energy efficient equipment and on-site electricity generation.

The key findings of the energy audit included the following –

+ The main use of energy (78%) is for air-conditioning to maintain a comfortable working environment for CARICOM staff; + The other uses of energy are for artificial lighting (13%) and computers (7%); + Investing in all the energy efficiency measures suggested in the audit would result in energy savings of 70% and financial savings of USD $347,027; + A 250 kW solar PV system could deliver approximately 465,375 kWh annually; + The combined EE and RE implementation cost is estimated at approximately USD $1,887,069; + The financial benefits of USD 556,445 could result in a simple payback period of approximately three and a half years.

The CARICOM BEEP is currently engaging with other development partners, apart from the German Government, to explore opportunities for funding the energy efficiency and renewable energy elements of the overall project.

In terms of energy efficiency, the project will implement –

+ Efficient lighting through the replacement of existing incandescent indoor lights with LEDs, as well as the retrofitting of exterior HPS lamps with induction lighting. + Efficiency improvements in the air conditioning systems through replacement of existing chillers. + Passive building interventions, to include the use of radiation barrier and reflective insulation to reduce the cooling cost for the building.

The more high profile aspects of the BEEP are for renewable energy and include –

+ The installation of around 500 kW solar PV for self generation of electricity through creative infrastructure that do not compromise the architecture and design of the Building. + The possible introduction of biogas generation to supply power from bioenergy sources, which are abundant in Guyana.

A major achievement of the BEEP is the fact that the Management of the Secretariat is re-investing savings derived from the energy management strategies in measures that support the implementation of low cost energy efficiency applications.

Overall, the BEEP is already showing some real benefits within a few months of the project’s initiation. It is intended that the experience in the CARICOM Secretariat buildings can be replicated in other public buildings across the Region. Under the Regional Collaboration on Efficient Energy use in Building (RCEEB), there are significant activities that target public buildings including the development of a Minimum Energy Performance Standard (MEPS) in collaboration with CROS Q, as well as the pilot demonstration projects of the GEF funded Energy for Sustainable Development in Caribeean Buildings (ESD) Project.

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CEP PROFILE

The New CARICOM ENERGY Portal Together with GIZ, through the Renewable Energy and Energy Efficiency Technical Assistance (REETA) Project, the CARICOM Energy Programme (CEP) has redesigned and transformed its website into a Knowledge Management Portal to provide timely and consistent information exchange and coordination between the CEP and its multiple stakeholders. This transformation will allow for greater sharing and collaboration among partners in the design and execution of energy initiatives and projects as well as lay the foundational platform for the C-SERMS Information and Awareness Network.

Key Elements of the CARICOM KM Portal Traditional approaches to knowledge management have centered around two distinct perspectives: that of knowledge as an asset and knowledge as a process. The CARICOM Energy Portal adopts a fusion of these two approaches to be truly effective: a Content Management Systems (CMS), Localized “Best Practices”, Expertise and Opportunity Location, and Communities of Practice (CoP).

Getting the Right Information to the Right People at the Right Time The Portal is based upon the premise of getting the right information to the right people at the right time, in “real time” by making documents simpler to categorize and easier to retrieve.

The KM Portal integrates with other sustainable energy sources like Reegle and partners (REN21, the World Bank, the UN, NREL), SEIN, CEIS, and the SIDS DOCK that are capable of accessing, codifying and sharing structured as well as ad hoc, informal knowledge from across the globe, with expertise distributed rather than centralized, and users getting information where they are and in the format they prefer.

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Filling the Existing Data Gaps The C-SERMS Phase I Report identified several critical energy data and information gaps in the CARICOM member states: Electricity System/Infrastructure, Renewable Energy and Energy Efficiency, Transportation, CO2 Emissions, Policy and Administration In support of filling these existing data gaps, and together with the CEIS, the CEP will use the Energy Portal as the basis for an improved, modern regional energy information and knowledge management architecture.

The CREEEM Database Working with the World Bank and a consultant, the CEP has created the Caribbean Renewable Energy and Energy Efficiency Matrix (CREEEM). This preliminary database is hosted on the new Energy Portal. The CARICOM members have agreed to build and establish this as the regional energy database by 31st December 2015. This database is expected to link seamlessly with the respective national databases.

There is already a tremendous amount of data produced in CARICOM about renewable energy (RE) and energy efficiency and conservation (EEC). By contributing to the CARICOM Energy Portal members will gain access to next-generation digital tools, services, platforms, and systems that support the collection, analysis, and reporting of energy data and information. Visit the new CARICOM Energy Knowledge Management Portal today at www.caricomenergy.org.

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FEATURE ARTICLE

The Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE): Is There Ever a Right Time? “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair.�

Charles Dickens. A Tale of Two Cities

Over the past nine months, the establishment of the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) has been an agenda item in the majority of meetings related to energy within the Caribbean Community (CARICOM). But The CCREEE, which has been designed to address the implementation deficit in the CARICOM sustainable energy sector and to support and coordinate the execution of regional Renewable Energy (RE) and Energy Efficiency (EE) projects and activities, would be a new regional institution. As a result, concerns have been expressed around whether the CCREEE can add value to a region where: (i) Member States, most of which face challenges with regard to debt and limited fiscal space, are already inhibited in their ability to service the cost of existing regional institutions; and (ii) there are already an increasing number of stakeholders assisting Member States in improving their energy situations.

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A critical fact is that past efforts to transition CARICOM economies to more sustainable energy use have exposed significant weaknesses in the design and institutional arrangements of the regional energy sector.

Energy plays a vital role in the economic development of any society: Energy is the engine for the production of goods and services across all economic sectors. With the exception of Trinidad and Tobago, Member States are dependent on imported oil and petroleum products for more than 90% of their energy services. But, collectively, CARICOM countries account for less than 0.2% of global oil imports. Evidently therefore, the Region is very small as a market within the context of the global oil economy and the heavy reliance on fuel imports exposes the Caribbean to a high degree of price volatility.

Over the past six months, the world has experienced a serendipitous drop in oil prices from around US$ 90 per barrel in October 2014 to nearly US$ 40 per barrel in March 2015. At current prices of around US$ 60 per barrel, global oil prices are at a four year low.

Nonetheless, energy has found itself among the top strategic issues shaping the global agenda in 2015; the uncertainty and impact of energy and commodity price volatility has now established itself as the number one issue for energy leaders worldwide as fossil energy sources have been becoming progressively costlier and prices, as demonstrated by the most recent dramatic drop, are more volatile than ever.

Emerging risks and the resulting need to redefine energy infrastructure resilience, changing market designs, evolving business models and shifting geopolitical conditions, have resulted in a new global energy landscape in which energy price volatility has become the “new normal�.

High and generally unpredictable oil prices have consistently retarded the competitiveness of region goods and services, which has negatively impacted extraregional trade and stymied economic growth. The cyclical escalation of global crude oil prices makes the economies of the Region extremely vulnerable to oil price shocks and is neither sustainable for supplies nor affordable in the medium to long term. In terms of impact on growth and development, it has been estimated by the UNDP [2007] that for SIDS, such as CARICOM Member States, an increase of US$ 10 in the world crude oil price translates to a 1.5% decrease in GDP. But the impact of the decline in oil price will not necessarily be similarly reflected in the economy; it has been reported, for instance, that a 10% decline in the price of oil typically produces very little or no impact on growth and levels of employment. More recently, the United Nations Environment Programme [2014], in its Adaptation Gap Assessment Report which examined sixteen SIDS between 2000 and 2013, reported that for every 1% increase in renewable energy investments within SIDS, there was an associated 0.05% increase in GDP. These correlations build credence to the potential transformative benefits of increasing EE applications and RE deployment within CARICOM in the near and medium terms.

A critical fact is that past efforts to transition CARICOM economies to more sustainable energy use have exposed significant weaknesses in the design and institutional arrangements of the regional energy sector. The existing framework,

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despite the millions of dollars in development funding spent by multiple actors over the past decades, has not yielded significant results because it is, in its current state, not capable of generating the transformation we desire.

Member States will therefore remain at risk of not achieving their sustainable energy goals and the established national and Regional targets on renewable energy and energy efficiency.

In particular, the Caribbean Sustainable Energy Roadmap and Strategy (CSERMS) was approved and is intended to guide, encourage and expedite implementation of the sustainable energy aspects of the CARICOM Energy Policy, with initial regional level targets for renewable energy contribution to total electricity generation in CARICOM of 20% in 2017, 28% by 2022 and 47% by 2027. At present, there is around 490 MW of installed renewable capacity (mainly hydropower) within CARICOM; this accounts less than 10% of power generation.

Estimates suggest that there is around 4,300 MW of proven, commercially developable renewable sources (geothermal, hydro, solar, wind, waste and biomass) within the region, even without consideration to emerging options such as ocean and wave technology, or generation offset applications such as solar water heating and solar cooling. Given that cost-effective, renewable energy sources can reduce energy costs while, at the same time, increasing self-sufficiency, economic growth, and climate resilience, there is need for the region to accelerate the transition to new energy systems that favour sustainable and clean energy production, which simultaneously provides legal certainty for investors and improved predictability in price and supply for users.

It was on this basis that the CCREEE was designed to squarely address what may be referred to as an “implementation gap� within the regional energy system, with the principal objective of assisting

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Member States in their navigation of what can be described as a competitive, yet lucrative RE and EE investment climate and support a modern energy landscape and sustainable development within the region.

The CCREEE is intended to function as an implementation hub for the CARICOM Energy Policy, roadmap and strategy, thereby enhancing the environment for sustainable energy investments and markets in the Region and, when established, would improve the quantity and quality of programmes and projects in sustainable energy. The expectation is that the CCREEE can result in transformative benefits and a coordination of the vastly assorted energy systems among CARICOM members will be enhanced by the presence of the Centre. The ThirtyNineth Meeting of the COTED [November 2014], the FiftyFourth Special Meeting of the COTED on Energy and the FiftyFifth Joint Special Meeting of the COTED on Energy and Environment [February 2015] endorsed the establishment of the CCREEE. The establishment of the CCREEE was recommended to the ThirtySixth Conference of the Heads of Governments by the ThirtySixth Community Council of Ministers [June 2015] and was considered and approved [July 2015]. So far, the process of establishment engaged all Member States, as well as regional institutions and development partners.

The Energy Unit of the CARICOM Secretariat, through the Energy Programme, will maintain responsibility for designing and managing the programmatic approach to energy sector developments, thereby orienting the course for sustainable energy development, within the region. It is the CCREEE, however which will generate and support the programmes and activities that will translate policies and strategies into action. The CCREEE, which is being designed

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The CCREEE is intended to function as an implementation hub for the CARICOM Energy Policy, roadmap and strategy... as a repository for technical capacity in strategic areas of the regions energy sectors, the Centre represents an innovative fusion of regional and international efforts and capabilities. Its design allows for the leveraging of a network of intra and extra regional partnerships that are intended to support its growth and technical capacity in strategic areas of the regional energy sector.

By linking into the “established global network of regional centres”, CCREEE is expected to engage actively in, and strengthen, cooperation on RE and EE development within SIDS. The Austrian Government through the Austrian Development Agency (ADA), the German Government through GIZ and the German Ministry of Development (BMZ), UNIDO, SIDS DOCK and the Clinton Climate Initiative have already committed resources in excess of 3 million Euros (US $3.3 million) – in cash and kind – to support the First Operational Phase of the Centre. And other development partners – including the European Union, the Governments of Germany, Mexico, Spain, Sweden and the United States, the World Bank and IDB – have indicated a willingness to also support the operations of the Centre upon its establishment. When established, the CCREEE Secretariat will consistently engage in resource mobilisation for the resources required for work in further operational phases. This effort will also be supported by the three core partners, viz. CARICOM Secretariat, the SIDS DOCK and UNIDO. Although the CCREEE is modelled on, and will join, an established global network of UNIDO supported regional Centres, the realities of the financial situation in CARICOM countries

are taken into account in that the Centre’s strategic, financial and operating plan will not require any resource commitments by Member States. This approach ensures the financial sustainability of the Centre and sets it apart from the traditional regional institutions. The Centre will provide clear benefits to Member States, including a displacement of the financial burden of high upfront RE and EE project costs, through, inter alia, transformation of innovative project concepts and studies into business plans, capable of attracting financing from emerging global and regional facilities, which would – by lowering transaction costs – increase the number of viable projects available for implementation within the region. Critically, the Centre will demonstrate Regional ownership and is expected to become a repository of regional knowledge and capacity.

The Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) or “the Centre” enters the regional energy stage during the best of times, where the confluence of low oil prices plus the plummeting costs of renewable energy technologies provide a window of opportunity for enabling investments, and the worst of times, in which the region faces significant economic challenges. If given the chance, the Centre can become a critical tool for assisting Member States in their navigation of the competitive, yet lucrative global RE and EE investment climate.

By leveraging some of the Centre’s key strengths, attainment of regional and national targets and goals will become more likely.

Contributor: Fern Gray, M.A. Law &

Diplomacy: Int’l Energy Policy

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PROGRAMME BRIEFS

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Increased planning and implementation capacity in Member States and strengthened regional coordination capabilities: Though some Member States are making good progress in the adoption of energy efficiency applications and renewable energy technologies, there is a need to ensure that decisions and planning are supported by fact based scenarios and information, derived from data of an appropriate quality and quantity. To support the planning and coordination mechanisms in the Region, the CARICOM Secretariat Energy Programme is partnering with OLADE, the World Bank, the Inter-American Development Bank (IDB) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), as well as the Department of Energy and the State Department of the United States (US), to implement –

+ CARICOM Energy Portal, is a Knowledge Management Portal which is intended to function as: (i) a “first stop shop” for information on the regional energy sector; and (ii) a collaboration platform for information sharing and knowledge exchange among general stakeholder groups. The Portal will include the Caribbean Renewable Energy and Energy Efficiency Matrix (CREEEM), which is intended to serve as a tool and resource for tracking and monitoring the activities of multiple stakeholder groups operating within the CARICOM energy sector; + Regional Energy Statistics and Information Management (RESIM) Project, which is intended to provide - (i) standardised methodology and training for energy data collection and energy statistics management; and (ii) energy information and knowledge management tools, which will include the Regional Energy Information System (SIER) of the Latin American Energy Organisation (OLADE). The expectation is to that all Member States will have realtime access to functional, modern energy databases, which will “rollup” into a Regional database and provide energy planning and decision support to Member States and regional institutions; and + CSERMS Platform, which is being implemented as a high level coordination, planning and knowledge sharing mechanism for developing and designing activities and programmes to support the implementation of CSERMS. The Platform will be supported by a number of Working Groups and will be managed through the CARICOM Secretariat.

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2 Increased efficiency in energy production, transmission and use:

The CARICOM region wastes more than half the available energy in the imported fuels, which results in relatively high energy consumption per unit of GDP. The Energy Programme has prioritized activities toward the systematic improvement of energy intensity and is focusing on the electricity sector, to include –

+ Regional Collaboration on Efficient Energy use in Buildings (RCEEB), which targets energy use in the public and commercial buildings sector. The collaboration is a coordinated effort among multiple projects and partners and includes a mix of policy and demonstration interventions. In terms of regulations, an Energy Efficiency Building Code (EEBC) for public and commercial buildings, Energy Performance Standards for Public Buildings, and Minimum Energy Performance Standards for Refrigerators and Freezers, Air Conditioning Systems and Lighting Devices (CFL and LED) are being developed through partnership, which includes a number of development partners and the CARICOM Regional Organisation for Standards and Quality (CROSQ). The CARICOM Building Energy Efficiency Project (CARICOM BEEP) is being implemented under this partnership and is intended to transform the Main Building of the CARICOM Secretariat into a high performance building with respect to energy use.

3

Increasing the share of cost effective renewable energy within the regional energy systems: There are a number of projects and activities that are seeking to integrate cost effective RE options into CARICOM power generation and grid systems -

+ Integrated Renewable Energy Atlas, an activity that will involve the quantification and mapping of RE resources within CARICOM. This will involve the integration of existing RE assessments, as well as new assessments where necessary, into a single regional atlas and is expected to provide clear guidance on the available and commercially developable RE options for the region. The outcome of this is that there will be reduction in the uncertainties and costs for RE development within Member States, which will stimulate better planning and increased investments. + Programme for Integration of Renewable Energy (PIRE), A regional program for Grid Integration of Variable Renewables, which is being developed to provide understanding of the characteristics of energy systems and markets that hinder or enable the reliable, economic integration of large shares of variable renewable, viz. wind and solar, in Member States. The knowledge generated will not only inform and further enhance Regional energy planning but also identify what is possible and realistic under the CSERMS targets for renewable power generation, i.e. 20 per cent in 2017, 28 per cent by 2022 and 47 per cent by 2027.

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4

Increasing the share of cost effective renewable energy within the regional energy systems: The CCREEE is intended to function as an implementation hub for the CARICOM Energy Policy, roadmap and strategy, thereby enhancing the environment for sustainable energy investments and markets in the Region and, when established, would improve the quantity and quality of programmes and projects in sustainable energy. The expectation is that the CCREEE can result in transformative benefits and a coordination of the vastly assorted energy systems among CARICOM members will be enhanced by the presence of the Centre. The establishment of the CCREEE has been endorsed in February,2015 by the Thirty Ninth Meeting of the Council for Trade and Economic Development (COTED) in November 2014, the Fifty -Fourth Special Meeting of the COTED on Energy and the Fifty-Fifth Joint Special Meeting of the COTED on Energy and Environment and it was also reviewed by the Thirty-Sixth Community Council of Ministers in June 2015 and recommended for consideration by the Thirty-Sixth Meeting of the Conference of the Heads of Government of the Caribbean Community (CARICOM) in July 2015. The Conference of Heads on Saturday, 4 July 2015 approved the establishment of the CCREEE and the selection of Barbados as the Host Country for the CCREEE Secretariat. The establishment of the Centre serves as a best practice in inclusive engagement as so far, the process of establishment engaged all Member States, as well as major regional actors, since the initial regional discussion, which took the form of a Technical Validation Workshop in Dominica during July 2014.

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Caribbean Community (CARICOM) Secretariat Phone: 592 222-0001 (Ext 3522) Fax: 592 222-0224 Turkeyen, P.O. Box 10827 Greater Georgetown, GUYANA