CARICOM ENERGY QUARTERLY NEWSLETTER
SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20
Foreword – A Commitment to Action by Mr. David Hales, Director, External Trade Global oil price shock waves have continuously impacted intra and extra regional trade balances. This has resulted in serious alarms being raised by many policy makers in Member States, because of its aggressive effects on our predominantly net oil importing economies.
M R . D AVID H ALES , DIRECTOR ,E XTERNAL T RADE , CARICOM S ECRETARIAT
I am constantly reminded of the importance of energy to the competitiveness of our productive sectors. A history of unpredictable oil price spikes has consistently negatively impacted the majority of CARICOM Member States, exacerbating the several challenges already faced by the region. Among these challenges are high debt burdens and falling competitiveness of exports. A significant portion of this debt dates back to the price escalation of energy in the 1980s, which devastated many economies. The energy impact on debt was worsened by the 2008 fuel
price escalation which recorded a high of USD 147 per barrel. So acute has been the effects of the most recent price trends that today’s price of oil of USD 77 per barrel is considered to be “low”. The CARICOM Energy Programme was established in 2008 as a successor to the Caribbean Renewable Energy Development Programme (CREDP) funded by the United Nations Development Programme and implemented by the Secretariat from 2004 to 2009. The mandate of the Energy Programme includes, addressing matters related to the high price of fossil based energy services and providing the policy focus and direction on the use of renewable energy and energy efficiency towards the sustainable development of the Region. This is expected to provide an opportunity for the Community to transition to more affordable and predictable energy costs through the use of indigenous, renewable energy sources which, when coupled with more efficient production, delivery and use of the energy services provided, will address a critical component of the international trade competitiveness of the region. The regional strategy on energy has now been anchored within the framework of the Caribbean Community Strategic Plan: 2015-2019, and more specifically, within the CARICOM Energy Policy (CEP) and the Caribbean Sustainable Energy Roadmap and Strategy (CSERMS). Dr. Devon Gardner now has direct responsibility for the implementation of the CARICOM
Energy Programme following his appointment to the post of Programme Manager, Energy in September 2014. I take this opportunity to welcome Dr. Gardner to the Secretariat. He commences his sojourn at a time when the Region looks forward to continued diversification of its energy sector with renewable energy sources playing an expanded role. I also welcome the Renewable Energy and Energy and Energy Efficiency Technical Assistance (REETA) Project Team, comprising Dr. Andreas Christian Taeuber; Mr. Glynn Morris; Ms. Anja Schwerin, Mr. Ken Aldonza; and Mr. Nigel Duncan, who are being introduced to the Community through this newsletter. The 4.5 Million Euro REETA Project, funded by the Government of Germany through the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH or GIZ, is now a critical part of the CARICOM Energy Programme and is expected to provide greater impetus to the energy transformation agenda which we continue to pursue. We hope that our newsletter will help to convey to readers our commitment to action.
IN THIS ISSUE Energy – A Critical Integration Tool
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Meet the REETA Team
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Viewpoint
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Harmonising Energy Data Collection
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Caribbean Sustainable Energy Forum
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CARICOM Energy Week 2014
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CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20
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Energy – A Critical Integration Tool A few short weeks after he became a member of the Caribbean Community (CARICOM) Secretariat family, Dr. Devon Gardner got his feet wet at a meeting of the Council for Trade and Economic Development (COTED) where he made a presentation on a critical proposal to the Community’s energy thrust. His rapid-fire, succinct delivery, though late in the evening, held the attention of the Region’s Trade Ministers, and elicited discussion around the table. The proposal was endorsed and a Special COTED on Energy and the Environment was recommended to ensure exploration of the full ramifications and optimum exploitations of the proposal: the establishment of a Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE). Dr. Gardner assumed the post of Programme Manager, Energy, at the Secretariat, at a time when the Community is moving resolutely to chart its sustainable energy course, which will see increasing amounts of renewable energy use and energy efficiency applications within the Region.
efficient, and, of course, cost effective? There is sometimes a trivialization of energy in an environment where energy does not cost a lot, but the recent oil price trends, which has made energy very expensive to oil-importing countries such as ours, has placed energy issues squarely within the crosshairs of the average CARICOM citizen,” he said.
There are different layers of coordination that must be occurring at the same time, Dr. Gardner pointed out. With sources of renewable energy present in all CARICOM Member States, Dr. Gardner was of the view that the Community could be energy sufficient by 2027, conditioned on whether there is a confluence of technical, financial and socio-political readiness.
The energy sector is a very important component in CARICOM’s development agenda and can be found in its Post-2015 Agenda and its five-year Strategic Plan.
“It is a complex environment, but nonetheless it is an environment that has many confluences and similarities, and what the Energy Unit is trying to do is not to impose on Member States a regional issue per se, but to identify those areas that Member States themselves have prioritized that may have commonalities among multiple Members,” Dr. Gardner pointed out.
Dr. Gardner is charged with overseeing
The new Energy Programme Manager brings to his new portfolio a wealth of experience. Dr. Gardner holds a Ph.D., Physical Chemistry and a B.Sc., Special Chemistry, both from the University of the West Indies, Mona Campus. “I was always interested in energy but, in my formative years, from the nano-scale,” Dr. Gardner said. Following graduate school, the interest in energy led him to a research group at the University of Leiden in the Netherlands. There, his interest in the application side of energy was peaked, and this led him to understand the challenges in the energy sector as whole. He eventually gravitated to more macro-scale type analyses, and into mainstream energy.
D R . DEVON G ARDNER , PROGRAMME M ANAGER , E NERGY , CARICOM S ECRETARIAT
A proud son of rural Jamaica who was always interested in the sciences, Dr. Gardner sees energy as a critical integration tool, but conversely, also as the single entity that could most significantly retard sustainable growth and resilience building within the Region, given the way the energy sector is constructed. “The bottom line is that energy is the most cross-cutting of sectors. 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. The issue is how do you set your energy sector, above all-else, to become most
the broad-based, multi-country approach to growing the energy sector and his work includes attention to CARICOM-wide policies and activities as well as resource mobilization. His priorities include improving coordination and harmonization in the Region’s energy sector; mainstreaming energy issues throughout a number of critical cross-cutting sectors; and strengthening the pursuit of energy efficiency opportunities. With respect to the coordination and harmonization of the energy sector, Dr. Gardner used the analogy of an orchestra, and said that the Region should be playing from the same music sheet, but with the various stakeholders playing different instruments.
“I understand energy from the level of electronic and particle interactions all the way to the bulk interactions with which we are more familiar.” he said. The above is an extract of a wide-ranging interview Dr. Gardner granted to the Communications Unit of the CARICOM Secretariat. Please check CARICOM Today or the CARICOM website for more details.
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CARICOM – GIZ REETA Project The Renewable Energy and Energy Efficiency Technical Assistance (REETA) is a four year Project funded by the Government of Germany through the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH with a budget of 4.5 Million Euro. The project is headed by Dr. Andreas C. Taeuber and he is ably supported by a team of Energy experts. The REETA Project collaborates with the CARICOM Energy Programme in rendering support in the areas of Capacity-Building, Private Sector Cooperation and Regional Institutional Support.
Dr. Andreas Christian Taeuber, Project Head. Andreas is a German engineer and energy expert with nearly ten years of experience in the provision of policy advice in the field of sustainable energy. He has an MSc in Dr. Andreas Christian Agricultural Taeuber Economics from the University of Munich and has been working as an official in the German Government and at the Embassy of Germany in Moscow. Prior to coming to Guyana he spent four years in the development and implementation of renewable energy projects and investments in southern Russia. Besides managing the GIZ REETA programme, he will be focusing on Policy Advice and the implementation of sectoral model projects in the CARICOM Member States.
Mr. Glynn Morris, Energy Advisor. Glynn is a South African engineer and energy expert with nearly three decades of experience in the provision of more sustainable energy services. He has an MSc in Energy Studies from the University of Cape Town and has worked as a Mr. Glynn Morris consultant, entrepreneur and advisor in developing countries in Southern and East Africa as well as South Asia. Most recently he spent three years supporting the construction, operation and management of a portfolio of ten decentralised electricity schemes using mini-hydro and solar/diesel hybrid generation in Afghanistan. His main focus on the project will be on public and private sector collaboration on more energy efficient utilisation of energy in buildings in the CARICOM member states. Ms. Anja Schwerin, Advisor, Capacity Building. Anja is a national of Germany and a former employee of the Mitsubishi International Gmbh and was part of the founding members for their European head office for Renewable Energies in Dusseldorf, Germany. She also worked with the Caribbean Renewable Energy Ms. Anja Schwerin Development Programme (CREDP) in Saint Lucia. Anja holds a Master’s degree in Environmental Science with concentration in Renewable Energies and wrote her thesis on “Analysis of the Potential Solar Energy Market in the Caribbean” and a Diploma in Economics. Anja started working with GIZ in August 2013 and is located in the Dominican Republic.
Mr. Ken Aldonza, Sustainable Energy Project Officer. Ken is a national of Saint Lucia. He was formerly employed as an Energy Officer within the Ministry of Sustainable Development, Energy, Science and Technology, Mr. Ken Aldonza Saint Lucia. He holds an MSc degree in Renewable Energy Systems Technology and a BSc degree in Mechanical Engineering. Mr. Aldonza has been actively involved in the development and implementation of projects in the fields of bioenergy and solar photovoltaics for more than five years. Mr. Nigel Duncan, Project Assistant. Nigel is a national of Guyana and a former employee of the CARICOM Secretariat, he holds a BA degree in Business and Management and several other qualifications including the Project Management Mr. Nigel Duncan Professional (PMP) credentials. Mr. Duncan brings to the Project a wealth of office management and administrative experience.
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Are the Americas Emerging as the New Centre for Global Energy? by Professor Anthony T. Bryan Beyond the business fascination with the current undulating wave of oil and Liquefied Natural Gas (LGN) prices there is another story. Namely, there are energy developments in the Americas that will change the global architecture of oil and gas trades for a long time. Here is a broad (nontechnical) brush stroke. Speculation about the causes and impact of the current situation in global oil and gas trades has accelerated. Do lower oil prices reflect weak demand caused by increased supplies of crude? Will cheaper oil benefit the world’s largest economies as well as some of the energy deficient poorer countries? Can falling oil prices remove the profit incentive for the U.S., Canada, Australia, and other potential LNG exporters to continue investment in export plants? Is Saudi Arabia playing a waiting game to
November agree to reduce their production in order to keep oil prices stable? Clearly, these are issues that can only be resolved in time by economic, political and geopolitical moves. In the energy business, speculation has a short shelf life. But beyond the speculation there are a few certainties. The global supply of energy will continue to increase and diversify, not contract, and the ongoing increase in U.S. and Canadian oil production will continue to put downward pressure on the global price of oil. Oil and gas producing states that lack diversified economies will have less economic and geopolitical leverage. Though the Gulf Cooperation Council (GCC) members will remain a central element of the oil market, political turmoil around the Gulf monarchies has forced an increase in their social spending and made them even more dependent on high hydrocarbon revenues.
“The clarion call for other Caribbean and Central American countries is the waning of the PetroCaribe program. While it saved members more than USD 1 billion in financing energy costs, and several regional economies from certain collapse, it also became an addiction for its beneficiaries, a contributor to the unsustainable debt accumulation in some of the countries, and postponed any real incentive by its members to switch to cheaper fuel sources or to develop alternative energy.”
force shale oil and gas companies in those countries out of business? Will OPEC countries meeting again in
As additional North American oil floods the market, OPEC’s ability to control prices will be challenged. The traditional regulator of OPEC’s spare capacity – Saudi Arabia – is already facing growing fiscal constraints. OPEC will have a difficult time maintaining discipline among its members. China stands to benefit. Its relations with Russia will improve markedly absent new geopolitical rivalries. Moscow and Beijing can be expected to move closer together on long-stalled energy deals and pipelines through Central Asia.
In the past, the price of natural gas has varied greatly across the three largely
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distinct markets of North America, Europe, and Asia. Over time, as the Americas, Australia and other countries generate and export greater quantities of LNG, those markets will become increasingly integrated. There is one business principle that is constant. Capital and technology will flow to those countries that provide the most attractive investment environments. Investors will go elsewhere if they are denied a reasonable return. THE EMERGENCE AMERICA?
OF
SAUDI
Perhaps the real story for the longer term is that the countries of the Americas, driven largely by new extractive technologies, are a major part of the driving force behind this upheaval in global energy. From North America to Argentina, there is a dramatic increase in the discovery, production and export of oil and gas. Billions of barrels of oil and trillions of cubic feet of gas trapped in shale formations in North and South America, as well as the oil sands of Canada and Venezuela (where the heavy and extraheavy oil constitute the largest oil deposits in the world) are being unlocked. The statistics provided by the U.S. Energy Information Agency (EIA), and other global agencies, as well as the IOCs and NOCS reveal projections for oil and gas in the Western Hemisphere that are stunning. Taking into account the proven, and probable reserves of recoverable oil and gas in Canada, the United States, Mexico, and the countries of South America, Here is the bottom line: Oil: The amount of recoverable oil in the Americas is estimated at 600 billion barrels. Gas: The region has the gas equivalent of 342 billion barrels of oil. In other words, total oil and gas reserves for the Americas are almost the equivalent of 1 trillion barrels of oil. For
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comparison, the Oil Depletion Analysis Centre (ODAC) in London estimates that the world has consumed just a bit more than 1 trillion barrels of oil since the dawn of the oil age over 150 years ago!
U.S. oil production has already surpassed that of Saudi Arabia, and by 2020, the United States and Canada together could export close to Qatar’s current LNG capacity. The eventual integration of North American, European, and Asian gas markets will put downward pressure on natural gas prices in Europe and elsewhere. LNG cargoes from the Americas (particularly the U.S.) may flow to Europe as well, diversifying the regional gas supply base and diminishing Europe’s dependence on Russian gas imports and political influence. Gaining the global energy centre will not be smooth ride for the Americas but it will be constant. For example, in Latin America the challenges facing development of the region’s energy resources are large. According to some estimates, in order to meet future energy demand Latin America must invest a total of between USD 3-4 trillion in energy infrastructure needs between 2014 and 2035, with nearly USD 2 trillion in the oil sector alone. It also needs to invest USD 100 billion in refining alone over the next generation. It is by no means certain that all the needed investment will be forthcoming since the competition for investment dollars and technology to develop not only traditional fossil fuels but also the next generation of alternative energy sources is fierce.
CARIBBEAN MUSINGS Finally, where is the Caribbean in this emerging energy landscape in the Americas? Unless there are some sustainable deepwater discoveries in the insular Caribbean (other than T&T) in the near future, the region’s presence in this emergence is really a conversation about Venezuela, Trinidad and Tobago, and the 3 Guianas (French Guiana, Guyana and Surinam.) Venezuela is problematic at the moment. Its hydrocarbon resources are formidable. Its proven oil reserves, recoverable oil reserves, and conventional gas reserves are the major elements in the Americas’ global energy emergence. But Venezuela’s challenges are above ground – not below! Oil production has fallen 25 percent since 1998. Misguided presidential and government policies have greatly weakened the economy through reckless spending and abuse of the energy sector, and also driven off major investors such as ConocoPhillips and ExxonMobil. If Venezuela is to play its obvious role in the developing energy revolution in the Americas and globally, it must undertake major political changes and dramatically improve its investment environment. As for the 3 Guianas: French Guiana is the country that inspired the Caribbean’s current momentum in deepwater exploration following the discovery of the “Zaedyus” in late 2011. IOCs have rushed to tie up acreage in Surinam and Guyana. The results so far have been mixed, but the potential of the Guiana Basin is huge. Trinidad and Tobago has been successful in growing its now mature oil industry and its aggressive LNG industry partly because of continuity in administering the energy sector by successive political administrations that read from the same page. T&T can still expect to be highly competitive in a steadily expanding market for internationally traded gas. Current delays in utilizing cross-border reserves (Loran-Manatee fields in the Plataforma Deltana) with Venezuela; the apparent infrastructure delays in preparing to deploy natural gas to the small and
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medium markets in the Caribbean neighbourhood; the reduced demand for T&T LNG in North America; and new competing production in the U.S. for petrochemicals (ammonia, methanol and other downstream derivatives) are challenges that require management and some risk taking. As the insular Caribbean's lead energy economy T&T has the talent and resources to once more lead the Caribbean energy future—this time in regional energy cooperation with at least Guyana, Surinam and eventually a revived Venezuela. The clarion call for other Caribbean and Central American countries is the waning of the PetroCaribe program. While it saved members more than USD 1 billion in financing energy costs, and several regional economies from certain collapse, it also became an addiction for its beneficiaries, a contributor to the unsustainable debt accumulation in some of the countries, and postponed any real incentive by its members to switch to cheaper fuel sources or to develop alternative energy. Today only a few members of PetroCaribe appear to have advanced initiatives that can provide alternative sources of energy, or to promote renewables, which are key elements in their energy future. In sum, the energy revolution in the Americas is well underway. Are we looking at the Americas as the new centre of global energy, a position it has not held since the early 20th Century, and one that will bring balance to a landscape dominated since then by the Middle East? Professor Anthony T. Bryan, PhD is a Senior Associate of the Center for Strategic and International Studies (CSIS) in Washington, D.C., and Professor at the Institute of International Relations, UWI-St. Augustine. He writes often on energy P ROF . A NTHONY T. B RYAN security and energy geopolitics and is quoted frequently in energy publications.
Reproduced with permission from the Trinidad and Tobago Business Guardian, October 30, 2014 http://digital.guardian.co.tt/?iid=105635#folio=120
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Harmonising Energy Data Collection Caribbean Community (CARICOM) Member States have agreed to standardise methodologies for the collection of energy data to advance a regional and national energy databases by December 2015.
being experienced by the CEIS, with recommendations on the opportunities for its participation in an improved, modern regional energy information
This agreement was among several significant outcomes of a Workshop on Energy Information and Knowledge Management Systems held in Montego Bay, Jamaica, 24-25 September 2014. The CARICOM Secretariat in collaboration with the Deutsche Gesellschaft fĂźr Internationale Zusammenarbeit (GIZ) through the Renewable Energy and Energy Efficiency (REETA) project and the Organisation of American States (OAS) partnered in convening the Workshop. In an effort to accelerate the establishment of energy national databases, the CARICOM Secretariat is expected to work with Member States in ensuring they meet the December 2015 goal. It is envisioned that the database will be selected by each Member State, and appropriate for its circumstances. There was a firm agreement in the workshop to establish a regional energy database by 31 December 2015; this database is expected to link seamlessly with the respective national databases. The meeting also agreed to use a common modelling approach that is appropriate for the less complex or less developed energy economies, which characterise a number of CARICOM States. An agreement to undertake a strategic assessment of the challenges currently
and knowledge management architecture was also tabled and found consensus. It was the view of participants that good quality, reliable and accessible data and information within the regional energy sector are essential for planning, operation and management of energy systems in the Region. Overall, the two-day extremely productive participants were engaged by the presentations made and contributed substantially to the open discussions and working sessions. Participants included representatives from: (i) thirteen CARICOM Member States; (ii) the CARICOM Secretariat; and (iii) a number of partner institutions, such as CEIS, CARILEC, GIZ, IDB, OAS, OLADE,
event and
NRCan, SEI, UTECH, UWI and others. The Workshop followed an earlier meeting on Energy Planning, which was held in December 2013, and is part of a larger initiative within the CARICOM Energy Programme for promoting evidenced-based planning and monitoring of sustainable energy development in the Region. The outcomes of the workshop were seen as realistic and aligned with the mandate that was established by the Special Meeting of the Council for Trade and Economic Development (COTED) on Energy in March 2013 in its approval of the CARICOM Energy Policy and the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS).
was all
Participants attending the Workshop on Energy Information and Knowledge Management Systems
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senior technical officers from twelve Member States, representatives from regional and international institutions, international development partners, and senior academics from across the region.
“CARICOM Can Show the World Energy Use Paradigm” – Senator Darcy Boyce The Caribbean Community (CARICOM) “has the capacity to show the world a new paradigm of energy use that is consistent with climate change mitigation.” This was the view of Senator Darcy Boyce, Minister in the Office of the Prime with responsibility for Energy, which he shared at the Fourth Caribbean Sustainable Energy Forum (CSEF IV). The Forum was held 13-14 November 2014 at the Headquarters of the Caribbean Development Bank in St. Michael, Barbados. The Forum was organized by the CARICOM Secretariat and co sponsored by the Caribbean Development Bank, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ),
significant savings available from the “low hanging fruits” of energy efficiency. He was of the view that the major challenge for the Region is “reconciling the regional initiatives that are required to meet the policy goals and the CSERMS targets with the governmental actions that are necessary at the national level.” Minister Boyce further stated that some may consider that the targets set in the C-SERMS as ambitious but indicated his belief that these may be realised if the collective wisdom and efforts within the Region are harnessed towards these goals, which are necessary for our future development. The
The Forum had five technical sessions: (i) The CARICOM Energy Policy and the Caribbean Sustainable Energy Roadmap and Strategy; (ii) Sustainable Transport; (iii) Energy and Agriculture; (iv) Information and Communications Technologies in Energy Applications; and (v) Distributed Generation and Grid Connection. Each session featured a Plenary Speaker and a Panel of Experts with inputs from the audience through interactive discussions. The Plenary Speakers included Alexander Ochs of the Worldwatch Institute; Ms. Frida Youseff of UNCTAD; Dr. Al Binger of the CARICOM Climate Change Centre; Dr. Yannick Julliard of SIEMENS; and Dr. Gary Jackson of CC emPOWERed. Also, there were two parallel side events hosted by the CDB and GIZ on the Energy Strategy of the CDB and Electric Mobility in Transport respectively. The major decisions and outcomes of the Forum may be summarized as follows:
That Member States
S ENATOR D ARCY B OYCE , M INISTER IN THE OFFICE OF THE PRIME M INISTER OF B ARBADOS through the Renewable should make efforts to Energy and Energy improve coordination and Efficiency (REETA) Project and the cooperation between Climate Minister indicated that it was his Caribbean Renewable Energy Departments and Energy intention to bring the recommendations Development Programme (CREDP). Departments in countries in order from the Forum to the next meeting of to optimize potential synergies the Regional Commission on the Delivering the feature address to the within the climate¬ energy nexus in Economy, which he chairs. gathering, Minister Boyce indicated that the implementation of the CEP and the Forum focuses dialogue on core Other participants in the Opening the C SERMS. It was noted, in issues faced by CARICOM Governments Session of CSEF IV were Ambassador particular, that significant in seeking to build a sustainable and Gail Mathurin, Director-General, Office opportunities exist for the diversified energy supply, which of Trade Negotiations representing the utilization of climate adaptation includes significant renewable and CARICOM Secretariat; Dr. Warren funding toward energy affordability bioenergy resources. He said the Forum Smith, President of the Caribbean and energy security issues. was taking place within the context and Development Bank; Ambassador Lutz against the background of the That there should be increasing and Görgens, representing the Government CARICOM Energy Policy and the deliberate efforts paid by energy of the Federal Republic of Germany; and Caribbean Sustainable Energy Roadmap stakeholders to bounded rationality Ambassador Mikael Barfod, representing and Strategy (C-SERMS). He opined that during the proposal of policies and the European Union. In attendance at the C-SERMs called for Member States incentives to support renewable the two day Forum were Government in particular to make use of the energy and energy efficiency Ministers, Permanent Secretaries and
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measures. Decisions on renewable and energy efficiency-related incentives from government formally requires decision-makers to solve what may be extremely complex optimization problems in order to obtain the lowest-cost provision of energy services, thereby weighing the cost of revenue losses with the benefits of fuel and infrastructure expansion savings. But the simple rational view assumes that government is a single actor though in reality, it consists of many actors with different, sometimes conflicting, objectives. The interests of one department or agency may, for example, be in conflict with those of others. In particular, revenue loss seems to be a major deterrent to the embracing of some sustainable energy initiatives within the Region.
That addressing the financing gaps for renewable and energy efficiency development within the Region continues to be of critical importance and efforts towards this must be sustained. In particular, the role of the Caribbean Development Bank (CDB) has been identified as central to the attainment of sustainable development through the transitioning of the energy sector from one that is inefficient and mostly dependent on expensive imported oil products to one that is efficient and dependent on cost¬ effective indigenous sources. There was agreement that the CDB should play a greater role in facilitating the preparation of Financing and Business Plans for projects that have the potential to significantly impact the energy security of the Region. That there is greater need for transforming energy policies into regulations so as to provide firm bases for implementation of the Sustainable Energy Plans and Strategies within the Region, including the C-SERMS. It was highlighted that the framework for investment and market development continues to be stymied because, despite the existence of modern energy policies
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in many Member States, the regulations required to legitimatize the policy statements continue to be largely absent – e.g. Building Energy Codes.
That energy audits should be conducted for the transport sector in Member States. It was proposed that this should be supported as part of a Regional Project.
That a framework for the regional trade in energy products and services should be immediately pursued through the Council for Trade and Economic Development (COTED). The products suggested are, inter alia: fuels (conventional and biofuels); electricity; and technologies for renewable energy and energy efficiency.
That “Smart Grids” have the potential to improve the management of power supply and would create synergies with renewable energy generation. It was recommended that smart grid development should be complimented by regulations and protocols for cybersecurity.
That, in general, the decisions of the Forum should be submitted for the consideration of the next COTED of Energy Ministers and the Meeting of the Economic Commission.
That there is urgent need for more robust energy demand and generation forecasting as inputs for long-term planning in some Member States. The recommendations of the Montego Bay Workshop on Energy Information and Knowledge Management Systems were endorsed and it was reiterated that there should be an improvement in the mechanisms for the sharing information and best practices among Member States.
That despite some advances, there is urgent need within a number of Member States for modernization of legislation to allow for fair regulation of the utilities and for the allowance of customer¬ based grid generation, in keeping with the decision of March 2013 by the COTED (Energy) for Net Billing to be adopted as baseline regulation for supporting distributed renewable generation.
Regarding specific sectors, Forum agreed to the following:
the
That there was a need to recognize the potential contribution of sustainable biomass production to the energy and agricultural sectors and the urgent need to provide financial support to encourage the engagement of farmers in biomass production. That the cost of energy in transport was extremely high as a consequence of the high dependence on imported oil products (gasoline and diesel) and the inefficient way in which the transport sector uses energy. It was agreed however that there was urgent need for adequate information on the sector before determination on the appropriate policies and strategies for achieving sustainable energy use in transport could be achieved.
That a multi-stakeholder forum on sustainable transport, aimed at arriving at a framework agreement on policies for vehicle technologies, alternative fuel options and transport planning, should be held during 2015.
That the CARICOM Energy Unit should work with Member States to formulate energy sub policies for urban transport.
It was further agreed that a forum should be convened in 2015, through joint cooperation among Caribbean Association of Electric Utilities (CARILEC), Organization of Caribbean Utility Regulators (OOCUR) and the CARICOM Energy Unit, to bring regional utilities, regulators and senior energy policymakers together. The forum is intended to address lingering barriers to the facilitation of renewable energy generation within the Region.
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Achieving Climate and Economic Resilience through Sustainable Energy – CARICOM ENERGY WEEK 2014 Dr. the Honourable Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines on Monday 17, November 2014 officially launched the fourth CARICOM Energy Week (CEW) in Lowmans Bay, St. Vincent. Prime Minister Gonsalves underscored the relevance of the CEW 2014 theme: “Achieving Climate and Economic Resilience through Sustainable Energy” by describing the nexus between Climate Change and Economic Resilience in practical terms. He informed the gathering that Climate Change had adversely affected Small Island Developing States (SIDS), especially those within the Caribbean, more than any other group of nations. Using the example of St. Vincent and the Grenadines, he showed how around thirty-five per cent of the Gross Domestic Product of the Member State was lost due to unusual weather patterns, widely believed to be associated with climate change, between 2010 and 2014. Prime Minister Gonsalves noted that SIDS carried the main burden of Climate Change despite their minimal contributions to overall global carbon emissions. He went on to state that the countries of CARICOM should, nonetheless, continue making climate mitigation contributions through Renewable Energy and Energy Efficiency initiatives. In particular, he highlighted the commissioning of a 500 kilowatt solar photovoltaic system by the electric utility – St. Vincent Electricity Services (VINLEC) – as being indicative of the
commitment of his government to renewable energy. The project, which was introduced at the CEW launch, cost over 2.6 million Eastern Caribbean Dollars (approximately USD 1 million) and is expected to reduce carbon emission by eight hundred tonnes annually. The Prime Minister stressed that while he recognized the small magnitude of that contribution to global carbon emissions reduction, it would make a remarkable difference if, proportionately, OECD countries
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sustainable development and resilience building in CARICOM countries. Dr Gardner indicated that as part of the CARICOM energy agenda, there was an urgent need for Member States to identify the commitments and the steps that are necessary for a Regional trade arrangement in energy products and services under the CARICOM Single Market and Economy (CSME). He called for constructive and forward-looking discussion among Members of the
D R . THE H ONOURABLE R ALPH GONSALVES , PRIME M INISTER OF S T . V INCENT AND THE GRENADINES
demonstrated similar commitments. In his remarks to the gathering, CARICOM Energy Programme Manager, Dr. Devon Gardner, noted that the volume of GDP and foreign exchange resources that CARICOM Member States continue to pay for expensive energy imports could have otherwise been directed to making the investments necessary for driving sustainable growth; growth he believes was necessary for providing significant portions of the capital that was required for adaptation to climate change and sea level rise, and other critical interventions which were necessary for
Community on the rapidly expanding trade and energy interface, which is more necessary now than ever, focusing on “developing a framework through which the regional community can maximize the benefits of cooperation to achieve our energy policy objectives”. The launch was also addressed by Mr. Ellsworth Dacon, Director of the St. Vincent and the Grenadines Energy Unit; Dr. Andreas Taeuber representing the GIZ; Ms. Libby DeLucia representing the Clinton Global Initiative; Ms. Rene Baptiste who is the Chairman of the VINLEC Board of Directors; and Mr. Thornley Myers, who is the CEO of VINLEC. The launch was attended by a
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wide cross section of regional energy stakeholders, government ministers from St. Vincent and the Grenadines, board members and senior managers of VINLEC, as well as civil society. It was broadcasted via a number of national and regional media houses which were also in attendance. At the national level, the Energy Week activities included a number of Forums, Exhibitions, and public information – including social media – campaigns that targeted a wide cross section of stakeholders. In particular, there was a significant focus on students through a
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number of school based activities such as debates, quizzes and competitions across Member States. The CARICOM Energy Unit used the CEW to launch an Energy App Development Competition for high school and university students, which will kick off in January 2015. Caribbean Energy Week is part of the annual calendar of activities within the CARICOM Energy Programme and seeks to increase knowledge and awareness among diverse segments of the Community about critical energy issues. Through the coordinated staging of regional and national activities, CEW
provides targeted focus on key areas of sustainable energy implementation that are practical and realizable within the region. The CARICOM Energy Week is staged by the CARICOM Secretariat in collaboration with energy ministries and agencies within the respective Member States and, this year, was funded under the CARICOM Renewable Energy and Energy Efficiency (REETA) Project of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
Disclaimer
QUARTERLY NEWSLETTER
This Newsletter is distributed for the purposes of keeping stakeholders informed on energy sector developments and issues in the Region. The information contained here is not intended to be relied on for completeness or as an authoritative source. Notwithstanding all efforts to provide up-to-date and accurate information, the CARICOM Secretariat cannot accept any responsibility for the consequences of errors or omissions in the content of this newsletter.
The CARICOM Energy Unit can be contacted for further information at CARICOM Energy Programme Caribbean Community Secretariat Turkeyen, Greater Georgetown Guyana, S.A Telephone: 592-222-0001 / 75 (Ext. 3522) Fax: 592-222-0224 E-mail energy@caricom.org; energyprogramme.caricom@gmail.com