1. Energy
CARICOM Energy Programme Quarterly Newsletter
April - June 2011 Issue 7
Energy Security and Food Security Link
Brought into Focus during the First Half of 2011
The link between the energy and Integration of the CARICOM
agriculture sectors in the Caribbean Secretariat, which falls under
Community (CARICOM) was the responsibility of Assistant
brought into sharp focus during the Secretary-General,
second quarter of 2011 as the Region Ambassador Irwin
sought to better understand the key LaRocque. Following those
drivers of the escalation in food prices presentations, CARICOM
and to develop appropriate responses. Trade Ministers engaged in
This issue was first raised by Senator spirited discussions on the
the Hon. Joanne Massiah, Minister of matter.
State within the Ministry of Legal
Affairs, Antigua and Barbuda in her Rising world oil prices affect
remarks as Chair of the 35th Special the prices of food and non
Meeting of the Council for Trade and food commodities mainly
Economic Development (COTED) on through the increased cost of
Energy in March 2011. inputs to the production and
distribution process. For food
This matter again took centre stage at commodities, the cost of
the 32nd Regular Meeting of the fertilizer, irrigation, farm to
COTED in May 2011, where it was market transportation,
included as a key Agenda Item at the processing, export trade Senator the Hon. Joanne Massiah
request of the Government of Antigua transportation, packaging Minister of State within the Ministry
and Barbuda. Presentations on this cost, storage and the cost of of Legal Affairs, Antigua and Barbuda
issue were made by various Units transport for distribution to
(including Energy and Agriculture) of end users are all impacted. A
the Directorate of Trade and Economic debate is occurring however, as to whether increases in world oil
prices are a significant driver of higher
Explore this issue Page
food prices, especially since the
impact at the national level depends on
the food production processes, as well
Some Positive Developments in the Second Quarter of 201 3
1
as, the proportion of food commodities
Minister with Responsibility for Energy - Part 6 5 imported and domestically produced
Carbon Footprint Labelling: An Increasing Trend which has inputs, etc.
Implications for CARICOM 7
Two recent reports, one by the World
Preparations are Underway for Staging of the First
Bank (WB) Food Price Watch, April
CARICOM ENERGY WEEK in November 2011 8
2011, and the other, a Policy note by
Update on the Caribbean Renewable Energy the Inter American Development Bank
Capacity Support (CRECS) Project 9 (IDB), April 2011, support different
Organisation of Eastern Caribbean States to Benefit sides of this debate. The former report
from Sustainable Energy Technical Assistance titled, “Poverty Reduction and
from the Caribbean Development Bank 10 Equity” seemed to make a strong link
Energy News 11 between recent increases in food
Natural Gas Brief 15 page 2

2. Energy Security and Food Security Link...
from page 1 failures that contributed to the price
surges of both 2007-8 and 2010-11. In treating with energy as an important
prices and the surge in oil prices, and
input to the cost of food production and
their association with events in the The Link in CARICOM: It has been distribution in CARICOM, it was
Middle East (see figure below). It the experience in CARICOM, that reiterated that Member States needed
noted also that a 10% increase in crude increases in world oil prices have to re-double their efforts towards
oil prices is associated with a 2.7% significantly negatively impacted energy efficiency and conservation,
increase in the World Bank Food Price food commodities prices. This is explore alternate energy options, as
Index through multiple channels. The considered to be related to the large well as, coordinate efforts towards
latter report titled, “How Will the Food import component of food regional strategic approaches. These
Price Shock Affect Inflation in Latin commodities, the resulting higher approaches include the integration of
America 1 and the Caribbean?” electricity costs (the Region having energy systems to facilitate cross
pointed to other factors and identified among the highest in the world) and border trade in energy, as well as a
rising oil prices as having only higher transportation costs. The review of the system used to reference
minimal impact on some Latin degree of impact varies from one the pricing of petroleum products in
American and two Caribbean Member State to another and needs to CARICOM.
countries involved in the study, viz, be further studied, using region and
The Bahamas and the Dominican country specific data. With regard to food production and
Republic. It argued that the hike in distribution, it was noted that the
responses needed to be multi-sectoral,
and effected through partnerships that
include the private sector, regional
institutions (e.g. UWI, CARDI) and
international development partners,
such as, the FAO, IICA, etc. The
COTED also cited the need to review
and assess items that are inputs to the
food production process so as to
identify those that could benefit from
removal of the Common External
Tariff (CET) as a means towards
reduction of the cost of food
commodities. The need to implement
previously agreed policy actions, as
Figure: Food and Fuel Price Trends well as the food and nutrition policy
Source: Food Price Watch – World Bank was also underscored.
A Consultation staged by the Food and
food prices is a result of a combination CARICOM's Response to the Agriculture Association of the United
of medium-term demand increases, Impact of Rising World Oil Prices Nations (FAO) in Trinidad and
slower agriculture productivity on Regional Food Prices: Inter alia, Tobago, June 2011, which benefitted
growth and short term supply the 32nd COTED concluded that while from the input of regional and
disruptions. It concluded that the short term options are limited, international experts, seemed to point
medium-term trends had been medium and long term strategies must to the need for improved information
exacerbated by a series of shorter-term be sustainable and impacting. In sharing of the prices of products and
events such as, the increasing use of general, the Region was challenged to inputs, improved research and
corn (maize) to produce ethanol in the adopt bold, innovative and more development (R&D), facilitation of
United States2. Also on the supply proactive approaches based on risk cross-border investment, support for
side, the higher frequency of extreme analyses, forecasting utilisation of farmers organizations, strengthened
climatic events (from droughts in regional natural resources and legislative and regulatory frameworks,
Australia, Argentina and Russia, to aggressive resource mobilisation at as well as, harmonization in various
floods in the staple producing areas of the international level. areas.
the US) are to be blamed for the crop
1
Bolivia , Brazil, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama , Peru , Uruguay
2
The production of corn-based ethanol absorbed nearly 35 percent of the US crop, or about 15 percent of the global corn crop.
Page 2 CARICOM Energy Programme Quarterly Newsletter

3. Some Positive Developments in the Second Quarter of 2011
by Joseph Williams - Programme Manager, Energy
1. Heads of Government CARICOM countries, this apparent
Identify Renewabale turning point in the upward trajectory
of world oil prices observed in the
Energy Development second quarter of 2011 is welcomed.
Among Top Priorities
for the Community It is also clear that the members of the
International Energy Agency (IEA)
At their Retreat held in Guyana in May will not stand idly by and watch oil
2 0 11 , C A R I C O M H e a d s o f prices spiral to further catastrophic
Government in seeking to focus the levels, as seen from their decision near
efforts of the Community identified the end of June to release into the
Renewable Energy Development as market some 60 million barrels from
one of the key priority areas for focus. their Strategic Petroleum Reserves
This is significant given the critical (which is maintained for major supply
importance of renewable energy disruptions). The USA is contributing
development for: i) contributing to the approximately 50% of this amount Joseph Williams
increased energy security of the which will reduce its reserves by 5%. Programme Manager, Energy
Region by forming a hedge to world oil At the time of writing, this move higher world oil prices have positive
price volatility though diversification appeared to have slashed US$10 per revenue implications for the
of supplies; ii) laying the basis for barrel off the two leading benchmark significant petroleum exporters in
economic competitiveness (through crude prices, WTI and Brent (see CARICOM (Trinidad and Tobago, and
stable and lower cost over time); and figure below). It is noted however, that Suriname), it is also generally agreed
iii) achieving a sustainable energy despite reduced oil demand from the that excessively high world oil prices
pathway and attaining low carbon North American market, the tightening will not be beneficial to the global
development. of supplies from OPEC member economy and their longer term interest.
countries may add to upward pressure The International Energy Agency
It is considered that this decision by the on prices over the coming months. It (IEA) considers prices in the range of
CARICOM Heads of Government should also be noted that any reprieve US$70-US$80 per barrel to be “fair
coupled with the earlier mandate to in the upward trend in prices is price” to encourage continued
develop a Regional Sustainable welcomed by net oil importing investment in the petroleum sector.
Roadmap and Strategy, now form the countries within CARICOM. While
basis for the galvanizing support to
assist Member States with their
national strategies and related projects
towards building capacity and
increasing investments for RE.
2. World Oil Price
Trend in the Second
Quarter of 2011
The market remains quite volatile, but
it is significant that after reaching a 33-
month high in April 2011 (with Brent
trading at US$127 and West Texas
Intermediate (WTI) trading at US$114
per barrel), crude oil prices eased on Figure: Trend in World Oil Prices (WTI and Brent)
average in May 2011, registering their NOTE: The WTI is the main US Benchmark for crude oil prices while the Brent is the main
first monthly decline since July 2010, European benchmark price. The difference between the WTI and Brent is attributed to
owing to uncertainties in the global other supply and demand issues.
economic recovery, a stronger US
dollar and speculative trading during page 4
the month. For net energy importing
CARICOM Energy Programme Quarterly Newsletter Page 3

4. Some Positive Developments in the Second Quarter of 2011...
from page 3
3. Finalization of the CARICOM Energy Policy
The process of finalization of the determined that Member States should As mandated by the 35th Special
CARICOM Energy Policy was be given more time to submit COTED on Energy, an update on the
advanced in May 2011 with the hosting comments and that it would be status of the Policy was submitted to
of a Meeting of Senior Energy necessary for another Meeting of the 32nd Regular Meeting of the
Officials via video conference to Senior Officials to be convened, to Conference of Heads of Government
consider the updated version of the further review the updates and finalise of CARICOM in July 2011. It is
Draft Policy reflecting inputs from the the draft to be submitted to CARICOM intended that the finalized CARICOM
35th Special COTED (Energy), March Energy Ministers. Another Meeting of Energy Policy will be ready for
2011, as well as subsequent feedback Senior Energy Officials is being presentation to the Inter-Sessional
from Member States. The process also targeted for September 2011, while the Heads of Government Meeting during
benefitted from feedback from Meeting of Energy Ministers via video the first quarter of 2012.
International Consultants, Detlef Loy conference is targeted for the last
and Dr. Trevor Byer. The Meeting quarter of this year.
4. Plans for CARICOM Energy Week Advanced
A virtual dialogue of Energy Week June 27 to discuss plans and OLADE through the utilisation of its
Focal Points, representatives of preparations for CARICOM Energy Online Training Platform. See update
CARICOM Member States and Week scheduled for 6-12 November on page 8.
Implementing Partners was held on 2011. This dialogue was supported by
5. Strong Global Performance in Growth of RE in 2010 -
Renewables 2011 Global Status Report
The Renewable Energy Policy global electricity supply last year, and Government policies and incentives
Network for the 21st century (REN-21) by early 2011 this increased to one programmes, as well as a reduction in
reported that despite continued quarter of the global power capacity the price of PV modules.
economic recession and incentive cuts, from all sources. Global investments
in 2010, global renewable energy in renewables increased over 30% to a The Renewables 2011 Global Status
performed well, showing strong record $211 billion. The strong Report can be accessed at
growth in all end-use sectors (viz, performance was driven by increased http://www.ren21.net
power, heat and transport) and
supplied an estimated 16% of global
final energy consumption. Renewable
energy accounted for approximately
half of the estimated 194 gigawatts
(GW) of new electric capacity added
globally during the year. Renewables
also delivered close to 20% of the
Page 4 CARICOM Energy Programme Quarterly Newsletter

5. Minister with Responsibility for Energy - Part 6
access to electricity by 1999. In 2002, and how could these be surmounted?
rural electrification continued under
the Unserved Areas Electrification Prime Minister: Indeed, the
Programme which was intended to hydropower potential of Guyana has
target 40,000 households. In fact, by long warranted attention with
2008, networks were completed to considerations and preparations for
allow 47,000 households access to exploiting some sites in the 1960s and
electricity service. Over the past two 1970s. A study over the 1970s to early
decades, the customer base for the 1980s listed over 70 sites with
fully state owned electricity company potential of more than 7000 MW,
(except for during the period 1997 to about two thirds of this potential at
2003) has more than doubled from about a dozen sites in two adjacent
Honourable Samuel Hinds 70,000 to 152, 000 consumers. river basins arising in the Pakaraima
Prime Minister and Minister
mountains – the Mazaruni and the
Responsible for Energy, Republic of Guyana
The opportunity is being taken to Potaro. The challenges facing
Energy : Prime Minister, what would
consolidate and upgrade the sugar development so far have been:
factories to better integrate their i) Geography – the sites are far from
you say are some of the most electricity production into the grid,
significant changes in Guyana's the coast where the local population
and to install new bagasse fired boilers and demand exist.
energy sector over the past two of higher pressure so that they can
decades? export power to the grid. The Guyana
Sugar Corporation commissioned 10 ii) Development costs – hitherto, the
Prime Minister: The most significant MW of HFO fired capacity in 2007 alternating rainy and dry seasons and
change in the energy sector in Guyana and 30 MW of Bagasse fired co- the topography of the land have led to
over the past two decades has been in generation capacity in 2008 at its new projected prices of power for a purpose
electricity generation and increased Skeldon Sugar Factory. In 2009, the
access to this service. At the built large consumer, such as an
Guyana Power and Light (GPL) aluminium smelter, being
commencement of the period under completed a 20 km, 69 kV
consideration, power generation uncompetitive with electricity from
transmission interconnection to the
capacity was inadequate to meet factory that allows for the dispatch of cheap gas and other fuels.
demand, with up to 50% load shedding more than 10 MW of power from that
being effected on a daily basis. The facility. This generation capacity is The potential for hydropower
limited available generating capacity currently providing base-load service development in Guyana is now bright
consisted mostly of diesel fired units to the Berbice Interconnected System as:
supplemented by three old, unreliable which has approximately 35,000
10 MW steam turbines. fossil fuel prices have increased
consumers. dramatically over the last decades.
An incremental transformation of the In 2009, a new 20.7 MW HFO fired
sector commenced in 1993 and by power plant consisting of three 6.9 awareness of the additions to
1997, 54 MW of new power MW units was commissioned with Climate Change from the
generation equipment was installed in work currently in progress to expand combustion of fossil fuels have
six power plants (48 MW of which was this plant by 15.6 MW (2x7.8 MW sparked a worldwide effort to pursue
HFO fired), a new 28 km, 69 kV units). Today, over 98% of the
transmission line was constructed renewables with concomitant
potential consumers on Guyana's interest in Guyana's potential.
while two 69 kV substations were Coast, where 90% of the population
expanded and electricity was reside, have access to electricity.
introduced to an island in the less costly hydropower sites around
Essequibo River to serve over 1,000 Energy :Guyana has significant the world are used up and developers
consumers. hydropower potential, more than any now see Guyana as having the
other CARICOM country, what in potential to meet regional power
In 1997 also, a rural electrification your opinion are the main challenges needs.
programme was implemented which faced by the country in fully
allowed more than 5,000 consumers page 6
exploiting its hydropower resources
CARICOM Energy Programme Quarterly Newsletter Page 5

6. Minister with Responsibility for Energy - Part 6
from page 5 and bagasse based. Transportation Prime Minister: There should be
there is greater readiness to conceive fuels would be switched to blends of maximum sharing of information,
arrangements which can accept large biofuels and petroleum. Studies are experiences and practices. This should
swings in generation linked to the ongoing to produce sufficient ethanol foster the realization of good solutions
from available molasses to initiate an in each country, and create and
large seasonal variation in river flow.
E-10 blend in about three years time. maintain alertness and willingness to
It is well known that Guyana hopes that undertake joint actions for mutual
arrangements for the construction of a Energy : In your view, how important benefit.
165 MW hydropower plant at the is the regional approach to energy
Amaila Falls on the Kuribrong River sector development?
would be concluded by the end of the
year. This plant will be able to meet the
peak demand of the national grid in
Guyana. Also, it has been announced Editor's Note
also that the Guyana-Brazil Highlighting Pioneers of CREDP Project: The Caribbean
Cooperation includes reviews of the Renewable Energy Development Programme (CREDP) is a
hydropower potential at other sites in landmark renewable energy Project in the Caribbean. The
Guyana and possible electricity Project is considered to have laid an important foundation
supplies to Brazil. upon which many of the emerging sustainable energy
developments are based and upon which future scaling-up
Energy : At the 35th Special Meeting could take place. Energy hails the pioneers of the CREDP
of the Council for Trade and Economic Project who were instrumental in its design and seek to
Development (Energy), CARICOM
Energy Ministers called for urgent
highlight their contributions. Mrs. Mona Whyte is one of the
response at the national and regional architects of CREDP.
levels to surges in oil prices on the
world market, given its generally Energy congratulates Mrs. Mona Whyte for her contribution
negative impact on food prices as well to the development of the CREDP Project, as well as her
as macro-economic indicators. In contribution to the development of Caribbean Energy
what ways can Guyana respond to such Information System (CEIS) over the years. (Owing to a
challenges in the immediate future? number of constraints information for this usual feature was
not secured).
Prime Minister: Guyana will increase
the call to its people to conserve on the
use of petroleum based fuels, improve
efficiencies and to consider renewable
energy where it might now be
economic. Recall also, Guyana's thrust
towards switching electricity
generation for its connected electricity
grid from petroleum based fuels to
hydropower and Guyana's call to its
people to grow more food for local and
national food security, and for export.
Energy : If you were to paint a picture
of the energy use situation in Guyana's
power generation and transportation
sectors in the next twenty-years, say by
2030, what would that picture look
like?
Prime Minister: Power generation
should have been switched from 90%
petroleum based to 90% hydropower
Page 6 CARICOM Energy Programme Quarterly Newsletter

7. Implications for CARICOM
Countries
Although there are many challenges
to overcome before widespread
carbon labeling (including the need
for harmonization of standards and
simplifying the process), the
implications of the current trends for
energy production and energy
efficiency in countries like those of
CARICOM are apparent. Simply put,
having national energy systems that
Carbon Footprint Labels indicate a France to set the Pace for European are based on clean and renewable
product's environmental impact or the Countries energy sources, as well as, energy
quantity (in grams) of carbon dioxide France is considered to be making an efficient productive sectors will
emissions associated with making and aggressive push where, in addition to become increasingly important to
transporting them. The practice which the Government-backed initiatives, achieve and sustain relative
began in 2007 in Britain was aimed at there is the planned introduction of competitiveness of the Region's
letting shoppers identify products with compulsory carbon labeling rules export products and services.
the smallest footprints, thereby possibly as early as 2012, based on a
causing producers to compete to law that was passed in 2010. This will Further, it is considered that given the
reduce the carbon footprint of their be preceded by a yearlong experiment international nature of many supply
products and also provide information slated to begin this July 2011, that will chains, the process of calculating
as to whether locally made goods involve 168 firms in a range of products' carbon footprints has started
really were greener than imported industries applying carbon labels to a focus on cross-border carbon flows
ones. products including furniture and rather than traditional national totals.
cleaning products. The accompanying This latter may provide importing
Although the practice is not yet campaign will raise awareness of firms in rich countries with an
widespread globally, it is quickly carbon labels among consumers. incentive to support the reduction of
catching on, with labels now attached Product category rules have already emissions in developing countries
to a wide range of products. For been drawn up by the French through investment in efficiency
example, in Britain, nine out of ten Standards Agency and the French improvements and clean
households reported buying products Environment Ministry for shoes, technologies.
with carbon labels last year. In Japan, wood, furniture, shampoo and fabric
the Ministry of Economy, Trade and chairs. “Other European countries
Industry launched a calculation and will be watching the French
labeling programme in 2008 for which experiment closely, not the least
more than 300 retailers and because their own exporters may have Energy
manufacturers have signed up. South to adhere to the French rules.
Korea has introduced a “Cool Label” Inevitably this has led to calls for a wishes to extend an invitation
which is now carried on over 220 European standard for carbon to readers to submit news or
relevant articles of interest in
products including furniture, rice and labeling.” The Economist, June 4,
relation energy sector
consumer electronics. Labels have 2010 developments and in particular,
been launched in Thailand (for 65 sustainable energy
products), USA, Canada, Switzerland, development in their territories.
Sweden and France.
CARICOM Energy Programme Quarterly Newsletter Page 7

8. Preparations are Underway for Staging of the First
CARICOM ENERGY WEEK in November 2011
– by Maxine Nestor, Regional Energy Policy Advisor –
among Member States and States is available under several
Development Partners through an R e g i o n a l S u s t a i n a b l e E n e rg y
online meeting arrangement facilitated Initiatives that include an Energy
by the Latin American Energy Awareness Component. However,
Organization (OLADE). During this Member States were encouraged at the
Meeting, Member States benefited First Virtual Dialogue (held in June
from: a presentation on the Energy 2011) to consider options for the
Awareness Week Guide developed sustainability of CARICOM Energy
under the CREDP/GIZ; guidance on Week activities in subsequent years,
how to organize Energy Week including sponsorship from the
activities; and lessons learnt from corporate community.
Maxine Nestor Guyana's and Saint Lucia's previous
Regional Energy Policy Advisor experience in staging Energy Visual Identity and Themes for
Awareness Week. National Energy Week Events
CARICOM Member States to National Energy Week activities
Stage Energy Week with National Guyana emphasized the need for within Member States will be staged
Events thorough planning, stakeholders' under a common CARICOM Energy
CARICOM Member States are consultation, team work, Week visual identity. It is proposed that
preparing to stage CARICOM Energy
Week from 6 – 12 November 2011,
with the implementation of a series of The staging of CARICOM Energy Week as an annual event is a
activities at a national level that target decision taken at the 35th Special Meeting of the Council for
the general public, schools, and Trade and Economic Development (COTED) on Energy held in
technical and skilled persons. The Georgetown on 22-24 March 2011. CARICOM Energy Ministers
programme for CARICOM Energy also agreed that CARICOM Energy Week would be staged from
Week will vary in the different 6-12 November 2011, and in subsequent years, during the
Member States but will cover second week of November each year.
activities such as Sustainable Energy
Exhibition, Symposium, Televised The broad objective of the CARICOM Energy Week is to raise
Panel Discussion, distribution of
awareness in relation to energy in general. This event will also
brochures, flyers and posters,
televised documentary on sustainable serve to convey the critical importance of energy to economic
energy, seminar, workshop, essay development, as well as, the important role that renewable
competition, debating competition, energy, energy efficiency and conservation must play.
quiz, science and technology fair, and
tours among others. innovativeness and proactive several prototypes for a logo will be
approaches. Meanwhile, some of the developed by mid-August and that the
Planning and Preparation challenges highlighted by Saint Lucia process for selection of a suitable logo
CARICOM Energy Week planning were prioritizing energy awareness will be one that involves the
and preparation activities are being week among the other competing participation of the wider public in all
coordinated among Member States activities, fitting activities into the Member States, possibility through
and development partners under the school curriculum, sourcing funding online voting.
CARICOM Energy Programme. and sponsorship for activities,
Member States are currently ensuring that Energy Week remains Member States will develop their
establishing Organizing Committees relevant through creative approaches individual theme for Energy Week
in their respective countries and and being prepared for the unexpected. 2011 that fits with the issues that are
developing their proposals for Energy most important to them. National
Week together with the budget. In Funding to Support National events will be built around their
June 2011, the CARICOM Energy Events distinctive theme and concept.
Unit hosted the First CARICOM Funding to support 2011 Energy Week
Energy Week Coordination Dialogue Activities in the various Member
Page 8 CARICOM Energy Programme Quarterly Newsletter

9. Update on the Caribbean Renewable Energy
Capacity Support (CRECS) Project
– by Project Manager, Dr. Robert Stoddard –
supply legislation; (ii) develop or primarily to assess the energy situation
amend national energy supply laws; and to establish a framework for
and (iii) develop regulations under the support. On the other hand, the visit to
Nevis Geothermal Resources the DR was to identify opportunities
Development Ordinance 2008. It is for South-South Cooperation in the
now recognised that energy awareness field of energy.
is a critical activity for sensitizing the
Region to a number of important issues Under the CRECS, two major
and developments with respect to presentations were made to key
renewable energy sources and options, stakeholders with respect to
conservation and efficiency, etc. “Renewable Energy Financing” and
Hence, a tender was also launched to “Sustainable Energy and Risk
Dr. Robert Stoddard
Sustainable Energy Specialist, engage the services of a Consultant to Financing” in Jamaica, May 2011, and
CARICOM Secretariat develop a Model Energy Awareness Trinidad and Tobago, July 2011,
Programme. Most of these tenders respectively.
failed on budgetary and technical
Introduction grounds. Permission to relaunch the The University of the West Indies was
The CARICOM Energy Programme tenders has been sought from the engaged in initial planning and scoping
has been implementing the Caribbean European Union. towards the provision of support for the
Renewable Energy Capacity Support development of a MSc. Programme in
(CRECS) Project funded by the In March 2011, a fact finding mission Renewable Energy and finalization of
European Union, since signing of the from the CARICOM Secretariat’s the development of a MSc. in RE
Contribution Agreement by the Energy Unit visited Haiti following a Management for the University.
European Union and the CARICOM visit to the Dominican Republic (DR)
Secretariat in late November 2011. late last year. The visit to Haiti was
The Project seeks to build on work
done under the landmark Caribbean
Renewable Energy Development
Programme (CREDP) aimed at
removing barriers to renewable energy
development, viz, financing,
Energy
information and awareness, capacity CARICOM Energy Programme Quarterly Newsletter
building and policy in the energy
sector. The Energy Newsletter is a quarterly electronic publication which
aims to increase awareness about issues and developments in the
The Key Elements of the CRECS
Project are:
energy sector of CARICOM Member States. It also seeks to
(i) Addressing capacity barriers to provide information on activities under the CARICOM Energy
increase renewable energy penetration Programme in support of Member States' energy sector
in Member States; and development.
(ii) Increased investment in various
renewable energy enterprises among There is a heavy emphasis on sustainable energy development
CARIFORUM countries. issues, given the importance of these for enhancing the
diversification of energy supply towards increased energy security
Update on Activities
To date, five tenders have been in all Member States, as well as for increasing their climate
launched. These tenders included the compatibility.
procurement of Consultants' services
to: (i) develop model electricity and
CARICOM Energy Programme Quarterly Newsletter Page 9

10. Organisation of Eastern Caribbean States to Benefit
from Sustainable Energy Technical Assistance
from the Caribbean Development Bank
– by Leonard Deane –
National Energy Efficiency increasing the economic
Strategies and Action Plans as part competitiveness of the member
of an overall cost reduction countries of the OECS.
programme;
model legislation including Importance of Energy to the
regulations and rules for energy Economic Competitiveness of the
management in the OECS within the OECS
context of the OECS Economic Union At present, member countries of the
that foster the implementation of OECS are highly reliant on fossil fuels
initiatives for the efficient and to supply almost all of their energy
sustainable production, and utilization needs, albeit that over the past years
Leonard Deane of energy; and there has been a slow but steady
SETA Project Coordinator,
OECS Secretariat
a public education and awareness increase in the utilization of renewable
programme that will address the energy technologies to supply energy
Member countries of the Organization knowledge, attitudes and practices of needs for power generation. Rising oil
of the Eastern Caribbean States the general public within the OECS as prices have resulted in the drain of
(OECS) 1 will soon benefit from it pertains to renewable energy and foreign exchange reserves for fuel-
additional technical support to energy efficiency. related imports, consumer price
complement their on-going initiatives inflation, as well as increased
toward establishing a clearer path to a Background to SETA production costs for industries with
more sustainable energy future. The Sustainable energy has been identified high energy use. This translates to
Caribbean Development Bank (CDB) as a priority thematic area by the consequential negative impact on
has made grant funding in excess of US OECS Ministers of Environment. competitiveness. Additionally,
$1.5 million available to the Secretariat Following the 12th Meeting of the concerns about climate change and
to the OECS for the Sustainable Energy Ministerial Environmental Policy energy security have resulted in
Technical Assistance (SETA) Project. Committee in June 2000, a mandate intensified efforts to identify
was given to the then OECS Natural alternatives to fossil fuels and ways to
Objectives and Outputs of SETA Resources Management Unit to efficiently produce and use energy.
The general objective of the SETA develop approaches for improving the
project is to “provide the guiding performance of the energy sector of The general consensus is that the path
framework and create an enabling the OECS. In particular, the Ministers towards economic competitiveness,
environment to support the efficient requested that the OECS Secretariat poverty alleviation, and economic
and sustainable production and use of prepare a recommended policy and resilience for the member countries of
energy in the member countries of the public awareness strategy on energy the OECS must be informed by an
OECS”. In addition, the Project aims to management for their consideration energy programme that improves
develop the capability of the member and adoption. Subsequently, at a sector efficiency, reduces the burden of
countries to employ holistic Special Meeting on the Economy held energy costs on economies, diversifies
approaches to energy management in in St. Kitts on October 10, 2002, the fuel sources, leverages private capital
support of the OECS' objective of Heads of Government of the OECS and safeguards the environment. This
integration of economies, and member countries charged the OECS will require the establishment of an
coordination and harmonisation of Secretariat to consider, among other enabling environment in the OECS
policies of its member countries. things, “a clear and strategic energy Sub-Region to encourage investment
policy” as part of a stabilization, in these alternatives, coupled with a
Specifically, SETA activities will stimulation and transformation change in the mindset of energy
deliver: package for the economies of the consumers.
an OECS Sub-Regional Energy member countries of the OECS. The
instructions were specifically aimed at page 12
Efficiency Strategy complemented by
1
OECS comprises the six independent states of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and
the Grenadines, and the British Overseas Territories of Anguilla, British Virgin Islands and Montserrat
Page 10 CARICOM Energy Programme Quarterly Newsletter

11. Energy News
New Ministers with Responsibility for Energy
in Jamaica and Trinidad and Tobago
In June 2011, both Jamaica and
Trinidad and Tobago appointed new
Ministers with responsibility for
Energy following Cabinet re-
organization in these countries. The
new Minister of Energy and Mining in
Jamaica is the Honourable Clive
Mullings, who previously occupied
this post up to April 2009. He has
indicated that, inter alia, one of his key
objectives is the implementation of a
LNG fuel supply option as efficiently
and quickly as possible, inline with
Government's policy.
The new Minister of Energy and
Energy Affairs in Trinidad and Tobago Hon. Clive Mullings Senator the Hon.Kevin C. Ramnarine
is Senator the Honourable Kevin Minister of Energy and Mining, Jamaica Minister of Energy and Energy Affairs,
Ramnarine. Minister Ramnarine, a Trinidad and Tobago
former Parliamentary Secretary in the Trinidad and Tobago has fallen from CC Ene congratulates Ministers
Energy
Ministry of Energy, has indicated that approximately 140,000 barrels per day Mullings and Ramnarine on their
his first priority is to increase the level (bpd) to current levels of respective appointments and wishes
of oil production, while the second is approximately 95,000 bdp. Further, them success in the discharge of their
to attract foreign direct investment: oil and natural gas remain critical to mandates.
“We need to get the downstream the country's economy contributing 45
industries moving”. percent to its GDP and 60 percent of its
foreign exchange earnings.
Over the last decade, oil production in
OLADE AND CARICOM SECRETARIAT ENGAGE
IN MEETING ON COOPERATION
On Friday, 10 June 2011, the Alicia Vallejo, Training Coordinator, CARICOM Member States; ii) the
CARICOM Secretariat and the Latin Mr. Gabriel Hernandez, Information decision to explore the OLADE
American Energy Organization Coordinator, and Mr. Jorge Asturias, Energy Balance and other tools for use
(OLADE) hosted a virtual (online) Coordinator Sub- regional Office. as standard tools within the
meeting to further advance general Community; and iii) the CARICOM
cooperation and collaboration on a The objectives of the Meeting were to Secretariat's indicative willingness to
range of activities. The Meeting was share and exchange information on support the promotion of OLADE's
attended by the team from the each organization's energy upcoming Energy Balance and Energy
CARICOM Energy Unit lead by programmes and to identify specific Information Systems Workshops in its
Programme Manager, Energy, Joseph areas for collaboration and support. Member States. Training Sessions are
Williams. Attending the Meeting Key outcomes of the meeting include: scheduled for 11-15 July in Guyana,
from OLADE were Mr. Fernando i) OLADE's offer to facilitate training 25-29 July in Belize and 1-5 August in
Ferreira, Director of Integration, Ms. to energy sector officials of Suriname.
CARICOM Energy Programme Quarterly Newsletter Page 11

12. Energy Unit’s Mission
to Haiti under CRECS
An important component of the
Caribbean Renewable Energy L-R: Dr. Robert Stoddard
(CARICOM Secretariat),
Capacity Support (CRECS) Project
Dr. Rene Jean-Jumeau
funded by the European Union (EU) (Advisor on Energy), Herve
and being executed by the CARICOM Pierre-Louis (Technical
Secretariat is the provision of technical Director of EDH), Isidore
assistance for energy policy and Priso Kotta (Consultant,
strategy development, as well as Delegate Director for
capacity building in Haiti. This has Planning), Garry Jean
taken on significant importance in (Inspector General of
light of the current re-construction EDH), Myk Mannon
efforts in the aftermath of the (Consultant, Delegate
earthquake in 2010. Technical Director).
A fact-finding mission was conducted
by Programme Manager Energy,
Joseph Williams and Sustainable
Energy Specialist, Dr. Robert Dr. Rene Jean-Jumeau
makes point to the Hon.
Stoddard of CARICOM Secretariat, at Jacques Gabriel, Minister
e n d o f M a r c h 2 0 11 , w h e r e responsible for Energy
engagements were made with all key andJoseph Williams,
players in the energy sector. The Programme Manager,
CARICOM Energy Unit Mission also Energy, CARICOM
engaged with the Inter-American Secretariat
Development Bank (IDB) during the
visit to Haiti and with the Office of
CARICOM Special Envoy to Haiti in
May 2011 during a separate visit to
Jamaica.
Organisation of Eastern Caribbean
In addition to the broader support for
strategy development, some areas for
States to Benefit ...
short term technical assistance and from page 10 Secretariat will supervise
capacity building in Haiti were also
Implementation Mechanism implementation of the SETA's
identified. Capacity building and
and Funding for SETA activities through a Project
advisory support in resource
SETA will be executed through the Coordinator who, among other
assessment and project development
engagement of a number of things, will have responsibility for
were identified as urgent matters for
consultancy services over a 35- facilitating the required
support.
month period until 2014. The consultations and participation in
process of procuring consultants each member country.
In general, the objectives of the
Mission were achieved. has commenced. It is expected that
the engagement of consultants for The project is funded by a
some components of the SETA technical assistance grant from
project will take place in the third the CDB and a contribution from
quarter of 2011. the OECS Secretariat.
Energy The Environment and Sustainable
Development Unit of the OECS
Page 12 CARICOM Energy Programme Quarterly Newsletter

13. Meeting with CROSQ:
Sustainable Energy & Standards
A meeting to facilitate the exchange of Caribbean on Energy Efficiency Sustainable Roadmap and Strategy (C-
information on the role of standards Standards and Labeling Schemes, SERMS) being pursued by CARICOM
bodies in the Region in area of energy especially as it relates to existing Secretariat, especially in the building
efficiency was convened among key activities under the CSEP Project sector. An overview of the institutional
partners and the CARICOM Regional being executed by OAS Secretariat, as capacities within the NSOs was
Organisation for Standards and
Quality (CROSQ) in Christ Church,
Barbados on 27 May 2011.
In attendance were representatives of
the Bureaus of Standards from
Antigua and Barbuda, Barbados,
Dominica, Guyana, Grenada, Haiti,
St. Kitts and Nevis, St. Vincent and the
Grenadines, as well as, executives of
CROSQ.
Mrs. Diane Lalla-Rodrigues, Chairman of CROSQ & Section of Audience: Directors & Senior Officials of
Ms. Carolina Pena, Manager, OAS Regional Coordinating Unit Bureaus of Standards in CARICOM
The lead coordinating role was carried well as, nascent energy efficiency provided, as well as their involvement
out by CSEP/OAS Project in standards and appliance labeling in sustainable energy activities. A key
conjunction with the Energy projects to be pursued by the gap identified was that in general (with
Programme of the CARICOM CARICOM and OECS Secretariats, few exceptions) there was little or no
Secretariat. Other key partners were and the SETA Project. link between the work of NSOs and that
the CREDP/GIZ Project and the of the energy units in the various
SETA/OECS Project. The meeting The forum provided an opportunity for Member States, especially as it relates
was convened to take advantage of the articulation of the relevant elements of to sustainable energy development. It
presence of senior officials of the CARICOM Energy Programme. It was recommended that the CARICOM
Regional and National Standards was identified that CROSQ and NSOs Secretariat should seek to facilitate the
Organizations (NSOs) who were in have a key role to play in the development of stronger linkages
Barbados for their Council Meeting. development and implementation of between the programmes of NSOs and
the Regional Energy Efficiency the work programme of Energy
The meeting facilitated dialogue on Strategy under the Caribbean Units/Energy Ministries in Member
Regional Cooperation in the
CARICOM Energy Programme Quarterly Newsletter Page 13

14. Drilling of Three Exploratory Geothermal Wells
in the Roseau Valley to Commence Late July 2011
Project Coordinator, Jason Timothy,
explained that the long term objective is
to confirm the nature and extent of the
potential geothermal resource at
various sites within the Wotten Waven
area and to determine the capacity of
wells for sustainable commercial
exploitation in generating electric
power.
VISIT cipore.org
for Information on
Renewable
Energy
developments and
Signing Ceremony happenings in the
The drilling of exploratory geothermal ceremony at the Public Service Caribbean
wells in the Roseau Valley is expected Training Centre in Roseau, Dominica. including a listing
to commence at the end of July this The contract was awarded to the
year. Iceland Drilling Company and is being of upcoming
funded by the Agence Francaise de
The contract for the over 4.5 million Development, the European Union and
Sustainable
Euros Project was signed on the Government of Dominica. Energy events
Wednesday, 6 April 2011, during a
World Bank Loan for the Establishment of Eastern
Caribbean Energy Regulatory Authority (ECERA) Approved
The World Bank has approved two implement regional arrangements for regulatory tasks, such as, tariff and
zero-interest loans totaling US$5.6 electricity supply. investment plan reviews, and the
million to facilitate establishment of definition of a regional licensing
the Eastern Caribbean Energy The loan will fund activities to set up framework for electricity market
Regulatory Authority (ECERA). and operationalise ECERA. These participants.
The loans are repayable in 35 years, activities include carrying out the legal
including a 10-year grace period. and consultative process leading to the The first phase of the ECERA
formulation and ratification of the program will be launched with
As a regional electricity sector ECERA treaty, defining options for the Grenada and Saint Lucia as
regulator, ECERA aims to improve ECERA self-financing mechanism, participating countries. At the 35th
electricity service delivery and reviewing tariffs and examining Special COTED on Energy held
diversify sources of energy incentive mechanisms to promote during the first quarter of this year,
generation, including renewables, renewable energy. The loan will also Antigua and Barbuda had signaled
across the Organization of Eastern fund ECERA's initial three years of its intent to join ECERA. Other
Caribbean States (OECS) countries. operation including its day-to-day OECS members have expressed
Importantly, ECERA will increase operations and execution of core interest in joining ECERA at a later
the capacity of OECS countries to
Page 14 CARICOM Energy Programme Quarterly Newsletter

15. NATURAL GAS BRIEF
Changing Natural Gas Landscape spell good and bad respectively for five power plants.
and the Caribbean some Caribbean countries. Firstly,
The global landscape for natural gas Trinidad and Tobago has been the Jamaica is pursuing the introduction
has rapidly changed over the last few largest supplier of LNG to the USA for of LNG for electricity production and
years and the change continues. Just a many years. Countries pursuing or therefore welcomes the increasing
few years ago, the US was a modest contemplating natural gas options do abundance in natural gas on the global
Liquified Natural Gas (LNG) importer, so to lower their energy costs, but market at generally depressed prices.
at least in relation to its overall
consumption, and it was widely Many proponents of
expected that American LNG imports the coal option have
would grow tremendously as a result of always pointed to the
the country's declining domestic gas oil-gas price
production. However, the current indexation as a basis
unconventional gas revolution is for concern that natural
literally turning the situation on the gas prices would rise in
supply side on its head. Moreover, the the future, compared to
recession has led to lower demand for coal which has a long
LNG. The US is now expected to be history of flat and
largely self-sufficient in terms of its stable prices.
natural gas supply for the coming However, with the
decades. abundance of gas on
the global market, and
The revolution had its genesis in the natural gas is also a cleaner fossil fuel with LNG becoming the main tradable
development of new drilling with significantly lower global form, there seems to be de-coupling of
technologies, viz, hydraulic fracturing warming potential than petroleum. the price trend in gas and oil as more
(fracking) and horizontal drilling and more the market seems to be
which have allowed the recovery of The Dominican Republic, (a member increasingly flexible, so much so, that
gas from sand shales. The economic of CARIFORUM and market for LNG gas prices have remained relatively
success of shale gas (unconventional from Trinidad and Tobago) earlier this low despite surges in oil prices.
gas) in the United States since 2000 has year, saw its largest independent
led to a rapid development of shale gas power producer, Empresa Generadora Other CARICOM Countries:
in Canada, and more recently, has de Electricidad Haina (EGE Haina), Electric utilities in many OECS
spurred interest in shale gas and largest generator, Compañía de countries, urged by leading gen-set
possibilities in Europe, Asia and Electricidad de San Pedro de Macorís manufacturers, are considering
Australia. (CESPM), sign Memoranda of supplying the electricity sector from
Understanding (MOUs) with Cheniere LNG. The big challenges have been
The boom in American shale gas Energy to supply up to 0.6 million the small size of demand in the various
(which now represents 23% of that tonnes per annum of liquefied natural islands and the logistics associated
country's gas production, up from 4% gas to that market beginning in 2015. with delivering small shipments of
five years ago) has kept the price low in 15,000-20,000 cubic meters compared
America, inspired exploration for Similarly, Puerto Rico (US territory) to traditional cargoes of above 160,000
similar fields elsewhere and allowed which is another regional market for cubic meters.
many LNG cargoes that were supposed LNG from Trinidad and Tobago, has
to be regasified at American terminals signed a contract with a US-based In Trinidad and Tobago, the lower
to seek other markets. LNG specialist, Excelerate Energy, to priced gas especially on the North
provide Puerto Rico's electricity firm American market may be providing a
Over the past five years, global with a floating regasification and challenge, as gas suppliers want higher
production capacity for LNG storage unit (FSRU). This is an initial prices for their gas, while the
increased by 58% and its share of the step in the island state's widespread downstream petrochemical
international gas trade has risen from transformation to natural gas which manufacturers need low-priced gas if
23% to 31%, helping the world to shift includes ambitious LNG plans, they are to compete in North America
towards more integrated and flexible including a proposed 92-mile (148km) and the Region. Some analysts are of
markets. This increased supply pipeline project that will underpin the
(especially in USA) and lower prices shift from fuel oil to natural gas at its page 16
CARICOM Energy Programme Quarterly Newsletter Page 15

16. UPCOMING EVENTS
1. CARILEC Engineers Support Renewable Energy Barbados Hotel, Barbados,
Conference, World Trade Development in the 12-14 October 2011
Center, Curacao, 25-27 Caribbean, Suriname, 28-29
July 2011 September 2011 8. RE Investors Forum –
Margins of CREF, Hilton
2. Meeting of Senior Energy 5. 11th Annual Energy Barbados Hotel, Barbados,
Officials via Video Caribbean 2011 Conference, 12-14 October 2011
Conference to Review the Hilton Hotel, Trinidad &
Draft CARICOM Energy Tobago, 4-5 October 2011 9. 9th OOCUR Annual
Policy, 7 September 2011 Conference, Accra Beach
6. International 100% Hotel, Barbados, 2-4
3. CARILEC Renewable Renewable Energy November 2011
Energy Forum 2011, St. Conference and Exhibition,
Thomas, 20-21 IRENEC 2011, Maltepe 10. SATIS 2011, Barbados, 8-
September 2011 Türkan Saylan Cultural 11 November 2011
Center, Turkey, 6-8 October
4. Regional Workshop 2011. 11. CARICOM Energy Week,
on Research, Development 6-12 November 2011
and Capacity Building at 7. Caribbean Renewable
the University Level to Energy Forum 2011, Hilton
NATURAL GAS BRIEF The Energy Unit can be
from page 15 petroleum production and significant contacted for further
the opinion that lower gas prices in expansion in natural gas production information on:
North America may be attracting over the years) coupled with relatively
lower prices for gas in global market, Telephone: 592-222-0139 (direct)
investors to re-establish petrochemical
592-222-0001/75
plants there, thereby providing a new means that Trinidad and Tobago may extensions 3521 and 3522
source of competition for Trinidad and not be deriving maximum benefits
Tobago. This, they opine, has from prevailing higher world oil Fax: 592-222-0224
implications for the LNG market, as prices. Some commentators opine that
seen from the signalled export from this has given urgency for increased E-mail:
the USA to the DR and Puerto Rico, petroleum production, with some energy@caricom.org;
which are markets for LNG from players arguing strongly that the jwilliams@caricom.org
Trinidad and Tobago. Government should encourage
exploration of heavy oils and tar sands.
The fact that natural gas production in Exploration of heavy oils is considered
Trinidad and Tobago exceeded
petroleum production since 1996
to have additional potential negative
environmental impacts.
Energy
(there has been significant decline in
Disclaimer
This Newsletter is distributed for the purpose 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 complete and authoritative source. Notwithstanding our 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.
Nothing in the Newsletter should be construed as the intention of the CARICOM Secretariat to infringe upon any trademarks or brand names or other intellectual property
rights.
This Publication was
sponsored by CREDP - GIZ
Page 16 CARICOM Energy Programme Quarterly Newsletter