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Grenada (2012)

Source: REEEP Policy Database (contributed by SERN for REEEP)

This policy & regulatory overview is not updated anymore since 2015. We decided to keep it online due to high demand but would like to make you aware of the fact that it might be outdated.

Energy sources

Total installed electricity capacity (2011):
-    Grenada: 45.9 MW
-    Carriacou: 3.2 MW
-    Petit Martinique: 0.5 MW
Plus a 2.8 MW of standby generation capacity at the St George’s University campus at True Blue.

In 2009, Grenada produced 195.4 million kWh and consumed 177.4 million kWh. 

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Reliance

Grenada imports almost 100% of the fuel used for transport (diesel and gasoline), electricity generation (diesel) and cooking (liquefied petroleum gas – LPG)

The ongoing increase in oil prices and the continued decline of US dollar continue to put upward pressure on the fuel charge to customers. As a consequence, Grenada has to spend as much as half its export revenues on imported fossil fuels.

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Extend network

National electrification rate (2008): 99.5%.

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Capacity concerns

Hurricane Ivan struck Grenada on September 7, 2004 and left tremendous devastation in its wake. A damage assessment by the Organization of Eastern Caribbean States (OECS) and the United Nations Economic Commission of Latin America and the Caribbean (ECLAC) estimated damage over US$800 million or twice Grenada’s Gross Domestic Product (GDP).  Power sector was severely affected, with the entire electricity distribution system destroyed, which had to be rebuilt.

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Renewable energy

Grenada has promoted capitalization of its natural resources by using renewables such as wind and solar energy, which according to 2006 OLADE data reached 588 thousand barrels of oil equivalent. Solar, wind and biomass are the main potential sources of renewable energy.

Hydropower
Possible hydropower potentials were studied in the 1980s but nothing beyond 500 kW was discovered.

Solar energy
Solar energy is mainly used for water heaters in hospitals and residences. Since 2006, the private Grenada Solar Power GRENSOL has been marketing photovoltaic systems –with ratings up to 9 kW- and more recently entered into an agreement with GRENLEC to inject power from systems with ratings up to 20 kW into the local grid in a net-metering arrangement.

Wind energy
Wind energy studies were conducted in the three islands of Grenada with the identification of three areas. There is an 80-kW wind power facility that became operational in March 2007 on the premises of a holiday resort in the southeast of the country.

Biomass energy
Fire wood is used for cooking in residential and rural areas. Bagasse is used as fuel by the sugarcane industry. The yearly sugarcane bagasse production was 3800 barrels of oil equivalent. In addition, wastes from nutmeg processing have been turned into energy potential, and over the coming decade may be used as fuel in steam turbine generation plants.

Geothermal
Grenada’s geothermal potential is estimated at 400 MW.

GRENLEC has recently indicated its interest in geothermal energy development and has submitted a proposed development strategy to the government. GRENLEC has suggested that a possible scenario would be the installation of a 20 MW geothermal plant to be operational by the last quarter of 2013, with a longer term plan to increase geothermal capacity to 40+ MW. This is a positive development that aligns with Government’s policy. The company’s capacity projections to 2015, short and long term business plans, future Annual Reports and the company’s formal documentation must now be made to reflect this stated intention if it is to be regarded and accepted by the wider public as part of GRENLEC’s intended business approach. It is also expected that GRENLEC will indicate where its priorities in renewable energy investments will be placed.

Waste-to-Energy
There is significant interest in Waste-to-Energy as an option in Grenada. GRENLEC has stated its interest in developing municipal solid waste as an alternative energy source and have conducted an analysis of the waste stream and content to inform their plans. Accordingly, their capacity projections show an addition of 1.5 MW of municipal Waste-to-Energy capacity in 2013.

According to the National Energy Policy, in order to make the transition to renewable energy for domestic demand, the Government of Grenada will:
- Complete Feasibility and Construct a 20 MW Geothermal Plant
- Construct an Additional 20 MW Geothermal Plant
- Construct a 2.5 MW Wind Turbine for Carriacou
- Achieve 10% Electricity Generation by Wind & Solar PV
- Establish Vehicle Fuel Efficiency Standards
- Achieve 20% Market Penetration with Hybrid and Electric Vehicles

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Energy efficiency

The Government will enact an Energy Efficiency Act, which will contain, inter alia, the following provisions:
- Mandate special commercial building planning regulations – for example: no new hotel will be granted planning permission without a specified contribution of solar-heated water, etc;
- Require the use of appropriate energy efficiency standards and building codes for ventilation, cooling, water- and process-heating, lighting and motive power equipment in institutional, commercial and industrial buildings;
- Require all government buildings of a certain size to have periodic energy audits and compliance audits and their results published;
- Mandate the compilation and publication of sectoral benchmarking data (e.g., kWh per hotel room-night for the hotels sector);
- Require certification of energy auditors;
- Require commercial banks to provide financial incentives for investments in energy efficiency to businesses and homeowners. This would be competitive, but based on a minimum level to start with – e.g., all new home mortgages could include a $5,000 interest-free amount for the purchase and installation of a solar water heater;
- Mandate specified fuel efficiencies for imported vehicles;
- Require training in ’eco–driving’ practices for public and private sector organisations;
- Develop, monitor, publish and update indicators of national energy consumption and efficiency (e.g. energy intensity - amount of energy required to produce a unit of GDP)

In order to maximise Energy Efficiency, the Government of Grenada will:
- Launch and Conduct a National Awareness Programme
- Conduct and Evaluate Public Sector Conservation Programme
- Continuously Review Economic Instruments to Spur Energy Efficiency

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Ownership

Electricity market
Grenada Electricity Services Ltd (GRENLEC) is the sole provider of electricity to the state of Grenada, comprised of the islands of Grenada, Carriacou and Petit Martinique. In 1994, GRENLEC became a private company. The Government of Grenada sold 50% of its shares to a U.S. investor, WRB Enterprises of Florida.  It retained 10% and sold the remainder of the shares to employees, Grenadian and Caribbean nationals.

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Competition

No competition exists in the market. The Electricity Supply Ordinance gave GRENLEC the sole and exclusive license to generate, transmit, distribute and sell electricity in Grenada for a period of 80 years with effect from 1st January, 1961.

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Energy framework

In 2011, the Cabinet of Grenada approved the official National Energy Policy (NEP). The formulation of the NEP started in 2009 through the technical and financial support of the OAS-EU financed project Caribbean Sustainable Energy Program (CSEP) with assistance of the Isada Consulting Group.

The NEP represents a collaboration of many stakeholders in Grenada led by the Ministry of Finance, Planning, Economy, Energy and Cooperatives with input from the public at large.

The Grenada National Energy Policy is the guideline and roadmap to the development of a healthy Energy Mix in Grenada and hence a step forward in resolving energy poverty which critically acts as a barrier to the achievement of the Millennium Development Goals (MDGs).

20% of all domestic energy usage (electricity and transport) will originate from renewable energy sources by 2020.

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Energy debates

The Government of Grenada will:
Promulgate an Energy Efficiency Act
Promulgate a Geothermal Act
Revise Offshore Petroleum Act and Regulations
Promulgate an Oil for Development Act
Revise the Electricity Supply Act
Establish and Join the Eastern Caribbean Energy Regulatory Authority

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Role of government

Ministry of Finance, Planning, Economy, Energy & Cooperatives
Vision: Efficient and effective delivery of finance and economic services to the national, regional and international communities, through strong leadership role in planning and management of the available resources.

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Government agencies

Ministry of Finance, Planning, Economy, Energy & Cooperatives, in pursuit of its mission (to effectively plan, generate, allocate and account for resources through the implementation of fiscal and economic policies and the facilitation of social and environmental policies in co-operation with other agencies thereby providing and enabling sustainable growth and development), has a wide mandate with responsibility for energy among others.

Within the Ministry, the Department of Energy & Sustainable Development has the role to ensure adequate, reliable and economical energy services to sustain economic development, while satisfying the current and projected demands; encourage and promote the use of renewable energy technologies and energy efficiency alternatives; promote energy efficiency and energy conservation at all levels of the economy, in order to achieve optimum economic use of renewable and non-renewable sources of energy; promote, encourage and facilitate petroleum exploration and development in an environmentally friendly (sustainable) manner; enable Grenada to meet its objectives relating to phasing out the use of Annex a CFC's under the Montreal Protocol; ensure timely, sustainable and cost-effective CFC phase-out through the development and implementation of a combination of investment, training, technical and policy/management support components.

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Energy procedure

Grenada Energy Development Strategy (2010-2020)

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Regulatory framework

A regulation dating from 1961 allows self-generation by individuals, but only with permission from GRENLEC and with governmental approval.  The same applies to other electricity market activities (transmission, distribution and or sale of electricity, plus generation).  Work has been ongoing since 2001 on a new electricity law, but it does not seem yet to have progressed beyond the draft stage.

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Regulatory barriers

Main barriers to the deployment of Renewable Energy Technologies:

- Utility dependence on established diesel technology

- Few successful demonstration projects, and

- Scarcity of finance

Grenada has been working to increase the efficiency of its energy use and to develop its renewable energy sector and following two years of extensive consultation, the Government approved a National Energy Policy and a Sustainable Energy Action Plan which will transition Grenada’s economy unto a low carbon development path.

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References

Government of Grenada. National Energy Policy of Grenada: A low carbon development strategy for Grenada, Carriacou and Petite Martinique. November 2011. National Energy Policy for Grenada. Available at: http://www.gov.gd/egov/docs/other/GNEP_Final_Nov_23_2011.pdf [Accessed 18th September 2013]

GTZ. Energy-policy Framework Conditions for Electricity Markets and Renewable Energies. Caribbean States. September 2007. Available at: http://www.giz.de/Themen/en/dokumente/en-windenergy-countrystudy-2007.pdf [Accessed 18th September 2013]

World Bank. Grenada: A nation rebuilding. An assessment of reconstruction and economic recovery one year after Hurrican Ivan. October 2005. Available at: http://siteresources.worldbank.org/INTLACREGTOPHAZMAN/Resources/grenanda_rebuilding.pdf [Accessed 18th September 2013]

OLADE. Olade celebrates a week in honour of Grenada. 6 February 2009. Available at: http://www.olade.org.ec/en/new/olade-celebrates-week-honour-grenada [Accessed 18th September 2013]

Nexant, for World Bank. Caribbean Regional Electricity Generation, Interconnection, and Fuels Supply Strategy. Available at: http://www.caricom.org/jsp/community_organs/energy_programme/electricity_gifs_strategy_final_report.pdf [Accessed 18th September 2013]

Grenada Electricity Services Ltd. website. History in Grenada. Available at: http://www.grenlec.com/index.php/corporate-information/history/grenada.html [Accessed 18th September 2013]

Ministry of Finance, Planning, Economy, Energy and Cooperatives. Available at: http://www.gov.gd/ministries/finance.html [Accessed 18th September 2013]

Minister for Foreign Affairs, the Environment, Foreign Trade and Export Development. Quoted on Grenada Broadcast. Address to First Assembly Meeting of IRENA. Available at: http://www.grenadabroadcast.com/the-radio-show/media-files/8-uncategorised-sp-910/10794-renewable-energy [Accessed 18th September 2013] Close References