CARICOM ENERGY QUARTERLY NEWSLETTER SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20

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.

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 (C-

SERMS). 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

2

Meet the REETA Team 3

Viewpoint 4

Harmonising Energy Data Collection

6

Caribbean Sustainable Energy Forum

7

CARICOM Energy Week 2014 9

Foreword – A Commitment to Action by Mr. David Hales, Director, External Trade

MR. DAVID HALES, DIRECTOR,EXTERNAL TRADE,

CARICOM SECRETARIAT

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 2

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.

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.

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

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 cross-

hairs of the average CARICOM citizen,”

he said.

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.

Dr. Gardner is charged with overseeing

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.

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.

“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.

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.

“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.

Energy – A Critical Integration Tool

DR. DEVON GARDNER, PROGRAMME MANAGER, ENERGY, CARICOM SECRETARIAT

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 3

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

Agricultural

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

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

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,

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

Professional

(PMP) credentials. Mr. Duncan brings to

the Project a wealth of office

management and administrative

experience.

Mr. Glynn Morris

Ms. Anja Schwerin

Mr. Nigel Duncan

Mr. Ken Aldonza

Dr. Andreas Christian Taeuber

CARICOM – GIZ REETA Project

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 4

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

force shale oil and gas companies in those countries out of business? Will OPEC countries meeting again in

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.

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

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 OF SAUDI AMERICA?

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 extra-heavy 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

“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.”

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 5

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

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 security and energy

geopolitics and is quoted frequently in energy publications.

PROF. ANTHONY T. BRYAN

Reproduced with permission from the Trinidad and Tobago

Business Guardian, October 30, 2014

http://digital.guardian.co.tt/?iid=105635#folio=120

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 6

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.

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 für 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

being experienced by the CEIS, with

recommendations on the opportunities

for its participation in an improved,

modern regional energy information

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 event was

extremely productive and all

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,

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).

Participants attending the Workshop on Energy Information and

Knowledge Management Systems

Harmonising Energy Data Collection

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 7

“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),

through the Renewable Energy and Energy Efficiency (REETA) Project and the Caribbean Renewable Energy Development Programme (CREDP).

Delivering the feature address to the gathering, Minister Boyce indicated that the Forum focuses dialogue on core issues faced by CARICOM Governments in seeking to build a sustainable and diversified energy supply, which includes significant renewable and bioenergy resources. He said the Forum was taking place within the context and against the background of the CARICOM Energy Policy and the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS). He opined that the C-SERMs called for Member States in particular to make use of the

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 C-SERMS 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

Minister indicated that it was his intention to bring the recommendations from the Forum to the next meeting of the Regional Commission on the Economy, which he chairs.

Other participants in the Opening Session of CSEF IV were Ambassador Gail Mathurin, Director-General, Office of Trade Negotiations representing the CARICOM Secretariat; Dr. Warren Smith, President of the Caribbean Development Bank; Ambassador Lutz Görgens, representing the Government of the Federal Republic of Germany; and Ambassador Mikael Barfod, representing the European Union. In attendance at the two day Forum were Government Ministers, Permanent Secretaries and

senior technical officers from twelve Member States, representatives from regional and international institutions, international development partners, and senior academics from across the region.

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

should make efforts to improve coordination and

cooperation between Climate Departments and Energy Departments in countries in order to optimize potential synergies within the climate¬ energy nexus in the implementation of the CEP and the C SERMS. It was noted, in particular, that significant opportunities exist for the utilization of climate adaptation funding toward energy affordability and energy security issues.

That there should be increasing and deliberate efforts paid by energy stakeholders to bounded rationality during the proposal of policies and incentives to support renewable energy and energy efficiency

SENATOR DARCY BOYCE, MINISTER IN THE OFFICE OF THE PRIME MINISTER OF BARBADOS

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 8

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

in many Member States, the regulations required to legitimatize the policy statements continue to be largely absent – e.g. Building Energy Codes.

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, 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.

Regarding specific sectors, the Forum agreed to the following:

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.

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 “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 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.

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.

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 9

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

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

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

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

DR. THE HONOURABLE RALPH GONSALVES, PRIME MINISTER OF ST. VINCENT AND THE GRENADINES

CARICOM ENERGY | SEPTEMBER – NOVEMBER 2014 | ISSUE 19-20 10

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

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).

QUARTERLY 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

Disclaimer

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.