Joseph WilliamsSustainable Energy Advisor

The CARICOM Energy TransitionLessons from the Last Five Years

Fifth Caribbean Sustainable Energy ForumColonial Hilton Hotel, Nassau, The Bahamas

January 23-25, 2017

Objectives

In the context of sustainable energy transition in

CARICOM:

1. To discuss briefly, where we were and where we

are today

2. To identify a few issues, challenges, and

opportunities along the way to our destination

Some progress in last decade…

Quantum leap still required for future!

ENERGY SECTOR 2017 ENERGY SECTOR 2027

Fossil Fuels

>90%

Transformation

RE

Fossil

Fuels

53%

RE

47%

Some Developments impacting

Sustainable Energy in the Caribbean2004 CREDP / UNDP / GIZ 2013 REETA Project Launched

2008 CARICOM Energy Programme 2013 COTED; CARICOM Energy Policy; C-SERMS

2008 CSEF I 2014 SIDS Conference -SAMOA

2008 CSEP-EU / OAS Project 2014 CDB Renewable Energy / Energy Efficiency Unit

2009 Summit of America – ECPA 2014 CSEF IV; Year of SE4ALL

2009 CREF 2015 CESI – US Government Initiative

2009 IRENA 2015 COP21 (NDC Established)

2009 Launch of SIDS DOCK 2015 COTED Energy

2010 ECPA Ministerial Meeting – Washington 2015 Launch of CCREEE

2010 CSEF II 2015 UN SDGs, incl. Goal 7: Clean and Affordable Energy

2011 COTED Energy 2011 2016 CESI Summit – Washington

2012 Rio+20 Conference; 2017 CSEF-V

2012 CSEF III

Progress in SE Development over the last decade

Description Pre-Baseline

2007

Baseline

2012

2017

Regional Energy Policy Coordination 0 CC EU CC Energy Unit (CC EU)

Regional Energy Policy , & Strategy 0 0 CARICOM Energy Policy (since 2013)

Countries with Approved SE Policies 1 2 8 (ANG, BAH, GRN, JAM, SLU,SKN, SVG, MN)

Countries with Draft Energy Policies 0 3 6

Regional Sustainable Energy Targets 0 0 C-SERMS Targets

Countries with SE Targets 0 8 14

Energy Units/Desks in place 4 7 8

Countries with Utility Scale RE 5 6 12

RE Capacity Installed 271MW 420 MW 485MW (2016 to date)

Share of Capacity RE 5.5% 8.8% 9.7% of Installed Capacity (w T&T) ;18% no T&T

Regulator in place 4 6 10Source CSERMS Baseline Report 2015 | data since 2015 or otherwise stated.

Key ingredients for transforming sector

VISION: Policy, Strategy

GOOD GOVERNANCE

ENABLING FRAMEWORK: Leg & Reg for investment

ADEQUATE CAPACITY - Institutional, human

ENGAGE & MOBILIZE: Stakeholders, Partners, Citizenry

How important is leadership in this process?

Assumes

that

appropriate

financing is

available

Observations: Policy, strategy, plans

X Energy not reflected as a priority – e.g. not in Ministry’s name

X Many policies still in draft:

• Instances of lack of policy continuity for SE

• Policies include targets; necessary but not sufficient

X Lack of Good Governance can:

• set back progress for years

• lock out assistance from some Partners and MDBs

Best Practice approach: public tendering for utility scale generating

capacity observed in Jamaica, St. Lucia, Belize.

X Some Energy Ministries don’t have technical persons in place

X Weak capacity remains challenge especially in SE, this can

• derail the transformation process (e.g. wrong advice, technology, etc.)

• poor technology transfer e.g. no counterpart

Observations: Good governance and capacity

Observations: Enabling framework, engagement

Some RE policy instruments have brought good results

• Fiscal Incentives for solar water heaters

- including tax rebate; duty free

• IPP Approach: Jamaica, Belize,

• Net-billing, now FIT in Barbados for Solar PV

X Not sufficient learning among Policy makers from each other;

CARICOM Mechanisms: C-SERMS, CEP have started to bridge

the gap for sharing among policymakers; but need support

EE, The Low Hanging

Fruit: Hard to pick?

Key Issues, Opportunities, Challenges - EE

Key Issues, Challenges, Opportunities - RE

• How to pursue legislative reforms where incumbent is private electric utility

• Implementing independent regulatory body in small countries

• Integrated Resource Planning, now key for evidence based policy formulation

• How much utility-scale generation vs distributed generation to pursue?

• Local Content: - should be a feature of all national energy policies?

• Role for a “Champion”? – e.g: regional level

• Utility operations should not be exempted from impact of rising fuel cost – i.e.

100% pass-thru a disincentive for their supporting SE?

• How to engage/incentivizing commercial banking sector?

• Right pace for transformation given – new technologies and declining prices?

• Mobility of human capacity

• Bundling of procurement for RE projects not shown to be feasible

Opportunities

• More robust policies

– Eliminate overlaps;

contradictions

• Framework for greater

accountability

– Timely, evidence-based

review & evaluation of

policies, vs KPIs; rating

linked to reform

Questions

Why do many policies remain in draft stage and are there negative implications of this? Could approach to initiation, and agenda-setting be a part of the problem?

How can SE policy continuity be encouraged across administrations?

Is the public tendering / competitive approach for procurement of new generation always feasible or practical? When should there be exceptions?

Is there need for greater leadership on SE at regional level, a champion?

THANK YOU

reee@caribank.org

www.caribank.org