Validation Workshop of Draft Final Barbados National Energy

Policy Document Presented by David Ince (Consultant)

July 24th, 2017

Today’s Presentation

• Changes to the Documents as a result of various feedback

• Document Structure

• Chapters Content

• Expanding on the Targets

• Moving from Policy to Implementation Plan

Organization of Sections

• Executive Summary

• Introduction

• Preliminary Energy Mix Targets

• Vision, Goals and Overall Objectives

• Sector Specific Objectives and Measures

• Policy Targets and Development of Implementation Plan

• Developing of Indicators and Monitoring System

Vision Statement

Visionary Goals

Overall Objectives

Specific Objectives

Measures

Links between Visionary Goals, Overall Objectives, Specific Objectives• Example- Energy Efficiency

• This importance of energy efficiency is stated in Visionary Goal 2.

• Visionary Goal 2: An energy sector where consumption and production of energy resources occur with the maximum level of efficiency that is feasible. (efficiency)

• The importance of the issue of ‘energy efficiency’ is further emphasised in Overall Objective 9.

• Overall Objective 9: Improving the efficiency in the production and consumption of energy products within the various subsectors

Description of Policy Analysis Matrix (PAM)Costs

Revenues Tradable Inputs Domestic Factors Profits

Valuation in Private Prices A B C D

Valuation in Social Prices E F G H

Transfers (Divergences) I J K L

Policy Transfers IP JP KP LP

Market Transfers IM JM KM LM

Domestic Resource Cost G/(A-B)

Private Profits D = A-B-CH = E-F-G

Social Profits

Energy Efficiency Emphasis increased

• Moved higher in the document

• Greater discussion around energy efficiency in the Introduction

• More discussion on energy efficiency as it relates to various energy resources. (Page 67-69)

Energy Efficiency Target

• The implementation of the BNEP is expected to reduce fuel consumption from 11 000 BOE/day to 5,400 BOE/day. This represents an estimated fuel reduction of 51%. Further, energy efficiency policy measures for electricity consumption are expected to result in a reduction in consumption of electricity of 22% over the planning period. (Page 37)

Other Section Additions and Enhancements

• Removal of Redundancies especially in Introduction (Page 3)

• History and background of Barbados Energy Sector Highlighting achievements (Page 4-9)

• Description of Multi Criteria Approach (Page 30)

• Energy Storage Discussion with Objectives added to the renewable energy section (Page 64-65)

• Solar Thermal- Added Discussion (Page 58-59)

• Wind energy- additional objectives (Page 64)

• Biogas and biomass Sections expanded, specific opportunities and challenges (Pages 63-64)

• More discussion on benefits and constraints of expanding use of natural gas (Page 38-39)

• More expansion of discussion on regulatory and governance issues (roles and responsibilities and effective legislation) (Page 102-103)

• Roles and Responsibilities of Organizations( including importance of BREA Involvement) (Page 4-9)

Cross Cutting Areas – Integration of Objectives • Agriculture

• Tourism

• Industrial sector- with emphasis on building/construction

• Waste management

• Water

• Health and Safety

• Highlighting these key areas that have impacts through the economy. Importance of energy efficiency and renewable energy and sustainable practices included among cross cutting measures in the sectors.

Energy Mix Targets (reduction in traditional fossil fuels - Expanded discussion• Traditional Fossil Fuel Reduction

2017-2037

• 19% reduction by 2022

• 38% reduction by 2027;

• 56% reduction by 2032;

• 75% reduction by 2037.

• Renewable and ‘Clean Energy’ Mix

• 15% Solar;

• 20% Wind;

• 30% Biomass;

• 15% Biofuels;

• 20% Natural Gas.It is envisaged that the BNEP will allow for the targets to be modified by the Division of Energy and Telecommunications in accordance with rules that will be defined by the Division in consultation with stakeholders in the energy sector. Under BNEP it is expected that the DET will be able to adjust the targets by a maximum of 40MW in the case of installed capacity to produce electricity after the first three years of a defined implementation period.

Energy Source Energy (GWh) Installed Capacity (MW)

Physical Units

Solar 320 195

Wind 411 127

Biomass (Including WTE)

643 79*

Natural Gas (Also Includes Biogas)

152 49 21 974 523m3**

Biofuels (B20) 141 500 (BBL)

*Biomass from Sugarcane, River Tamarind, and King Grass 39 MW, as well as Waste to Energy 40 MW.**Methane from Biogas.NB: The energy output is based on a long run output of 1600 GWh which includes power for transportation.

Expansion on Energy Mix Targets- Installed Capacity

Overall Sector Indicators and Baseline added

Name of Indicator (Units) Baseline (2015)

Aggregate Energy Intensity(BOE/MUS$)324

Total Energy Consumption per Capita (BOE/Persons)5.03

Percent Share of Renewable Energy of Total Energy (%)2

CO2 Emissions/Final Consumption (kt/BOE)0.0029

Total No. of Persons Employed in the Energy Sector (No.)

Electricity Generation Efficiency (%) 37Percent Share of Renewable Energy Investment of Total GDP (%)

The Amount of Energy Used to Produce US$1 Million of Output.

0.0000

100.0000

200.0000

300.0000

400.0000

500.0000

600.0000

700.0000

2006 2007 2008 2009 2010 2011 2012 2013 2014

BOE

Energy Intensiveness (BOE/MUS$)

0

50

100

150

200

250

300

350

400

2022 2027 2032 2037

Projected Aggregate Energy Intensity BBL/MUS$

BBL/MUS$

Expanding Discussion on Monitoring and Implementation Plan• An important next step following the development Specific Sector Targets, will be

the implementation of an appropriate monitoring system and suitable indicators.

•

• The Targets developed will need to be SMART.

• Specific

• Measurable

• Achievable

• Relevant

• Time bound

•

• It is expected that these indicators and targets will include economic indicators that assess the cost related to various policy measures.

P

From Policy to Implementation Plan

• Development of Programmes, Plans and Strategies

• Subsector basis

• Need for working group to steer overall activities

• Subsector groups to work on individual plans (energy efficiency, PV, transport, education, etc)

• Allocation of resources for implementation (human, financial, international support)