caribbeanclimate

Home » Posts tagged 'The World Bank'

Tag Archives: The World Bank

Geothermal Energy in Nevis

Mount Nevis sits at the centre of the volcanic island of Nevis, which has reserves of geothermal energy. Nevis is the smaller island of the pair, known as the Federation of St. Kitts and Nevis. Credit: Desmond Brown/IPS

Mount Nevis sits at the centre of the volcanic island of Nevis, which has reserves of geothermal energy. Nevis is the smaller island of the pair, known as the Federation of St. Kitts and Nevis. Credit: Desmond Brown/IPS

Legislators on the tiny volcanic island of Nevis in the northern region of the Lesser Antilles say they are on a path to going completely green and have now set a date when they will replace diesel-fired electrical generation with 100 per cent renewable energy.

The island, with a population of 12,000 currently imports 4.2 million gallons of diesel fuel annually, at a cost of 12 million dollars, a bill it hopes to cut down significantly. Nevis consumes a maximum of 10 mw of energy annually.

Deputy Premier and Minister of Tourism of Nevis, and Minister of Foreign Affairs of St. Kitts and Nevis Mark Brantley said geothermal energy is something that sets Nevis apart.

Mark Brantley - Deputy Premier and Minister of Tourism of Nevis, and Minister of Foreign Affairs of St. Kitts. Credit: Desmond Brown/IPS

Mark Brantley – Deputy Premier and Minister of Tourism of Nevis, and Minister of Foreign Affairs of St. Kitts. Credit: Desmond Brown/IPS

“About 10 years ago we discovered that we have geothermal energy here. It has taken a while but we are not at a stage where all the exploration work has been done and we have been assured that geothermal goes live in December of 2017,” Brantley told IPS.

“What that means is that when that plant switches on in December of 2017, fully 100 per cent of Nevis’ electricity will be supplied by renewables. Nowhere else in the world can boast that and so it will make us the greenest place on planet earth. That’s the new tagline – the greenest place on planet earth.”

Nevis is the smaller island of the pair, known as the Federation of St. Kitts and Nevis. It is home to active hot springs and a large geothermal reservoir. Seven volcanic centres have been identified on Nevis and drilling at three sites has indicated that the geothermal reservoir is capable of producing up to 500 mw of constant base load power year round.

Brantley said the shift to geothermal could not have come at a better time.

“We’ve just come out of Paris with COP21; the world is talking about climate change and what we can do. I think it really gives Nevis another string to its bow in terms of things that we can talk about and exciting developments here that would drive traffic to the island as people come and would want to be a part of something that is so natural,” Brantley said.

“First of all, we’ll certainly go completely green. Our emissions, our carbon footprint is reduced to almost zero. Secondly, we have a situation where you have the cost savings are likely to be anywhere from 40 to 50 per cent.

Traditionally we pay anywhere from 40 to 45 US cents per kilowatt hour. Geothermal is being offered at about 17 or 18 cents per kilowatt hour. So just imagine, your operating costs are cut dramatically and how that can attract businesses. We are already having interest from people wanting to do electric scooters so just think Jetsons,” Brantley added.

Brantley referred to the 1960’s American animated sitcom ‘The Jetsons’ where the family resides in Orbit City. All homes and businesses are raised high above the ground on adjustable columns. George Jetson lives with his family in the Skypad Apartments: his wife Jane is a homemaker, their teenage daughter Judy attends Orbit High School, and their early-childhood son Elroy attends Little Dipper School. Housekeeping is seen to by a robot maid, Rosie, which handles chores not otherwise rendered trivial by the home’s numerous push-button Space Age-envisioned conveniences.

“The idea here, if you can imagine a place where visitors come, there are electric cars, electric scooters and everything because we have a cheap source of energy. Not only that, the experts are telling us that we have maybe somewhere north of 150 megawatts of available energy. Nevis only uses 10, so you have enough to export to St. Kitts because they are just two miles away,” Brantley said.

“In fact we’ve already done the interconnectivity studies; but also islands that are within that radius so Antigua is a possibility because they have no prospects for geothermal energy there.

“Anguilla has no prospects there but we also have neighbouring islands like St. Barts, Saba, St. Eustatius who have potential so Nevis can potentially, I think in a year become a net exporter of energy. And as a net exporter of energy we can change the whole economic paradigm in terms of what we rely on here so that we can wean ourselves even off tourism as a main stay and have energy and energy production instead. So I think there are some exciting times ahead for Nevis,” he added.

Dominica recently launched its own geothermal project with plans to construct a small power plant for domestic consumption and a bigger plant of up to 100 mw of electricity for export to the neighbouring French islands of Guadeloupe and Martinique.

A Geothermal Energy Bill is to go before the House of Assembly in the first quarter of this year. Prime Minister Roosevelt Skerrit said the Geothermal Bill shows the commitment by his Government to pursue geothermal energy development.

“We’re hoping in the first quarter of this year to go to parliament to pass the legislation. It had to go through a rigourous review by our partners. That has been concluded. You know we had the challenge with the French consortium. We are engaging new partners but we’re also looking at the possibility of going with a small plant on our own. We’re engaging friendly governments, we’re engaging institutions,” he said.

“As you know we have an offer of a loan from the World Bank and that is still on the table. So the government now has to look at the financing options and decide which way it’s going to go with the geothermal plant. But we believe, notwithstanding the storm, it is important for us to pursue those renewable energy imperatives because based on advice, this would certainly be a major plus for the economy of Dominica.”

In August Tropical Storm Erika tore across Dominica, devastating villages, wrecking bridges and leaving a reconstruction bill worth half the country’s annual GDP.

About 10 inches of rain fell in a few hours, turning rivers on the mountainous island into torrents and hillsides into deadly mudslides. The capital Roseau was engulfed by water, and the island’s main airport was out of action for close to a month and will cost some 15 million dollars to repair. At least 31 people died in the storm.

Credit: Inter Press Service News Agency

Is the Caribbean a paradise for renewable energy?

The Caribbean nations have all the incentives and resources to convert to 100% renewable energy. But is it happening?

Beach in Barbados

With plentiful natural resources and expensive fossil fuels, Caribbean countries have a strong incentive to be at the forefront of renewable energy development. Photograph: David Noton Photography/Alamy

What motivated Derek to get into solar power? Was it a desire to be green or combat climate change? “Climate change? I don’t even know what that is,” he says. “I just didn’t want to depend on the power company.” Electricity is expensive in Barbados. Derek bought a solar kit including one panel for $100 (£64).

Derek is a mechanic by trade and is using his system to charge car batteries. He has found a way to integrate his solar system into his business. This is entrepreneurship in its truest sense. A viable business venture for Derek and a chance for wider environmental benefits for the country are the win-wins, but neither of these was the prime driver for Derek. He was essentially a tinkerer with an idea and wanted to try it out in the hope of paying less for power.

Derek's shop

Derek’s shop Photograph: David Ince

If Derek can make it to such a level of self-sufficiency starting from small beginnings, does this mean that individuals and businesses with greater means have gone even further? Well, more Dereks are gradually popping up throughout the Caribbean, but generally the answer is no.

The Caribbean appears to be the ideal location for renewable energy development. Petroleum resources are scarce and renewable resources such as solar, wind and geothermal are plentiful. Energy prices are high as there is no opportunity for economy of scale benefits that large land masses enjoy. Added to that, climate change impacts pose a major threat to the region’s small-island economies that are largely dependent on tourism and agriculture.

Despite this, most Caribbean nations still use imported diesel or oil to generate 90-100% of their energy. So what has been the barrier to using renewables? Many people have pointed to the cost factor. Small economies mean that in most cases countries have difficulty in financing renewable energy projects that require high upfront capital. Also, regulations have been slow in setting clear rules for grid interconnection. These factors have led some international investors and developers to be cautious about entering the Caribbean market.

We can learn from Derek’s example and build on local talent. Indigenous grassroots knowledge paired with the experience and access to capital of larger local and international companies would be a winning combination.

The advantage of building on local interest and indigenous talent can be seen in Jamaica. The late Raymond Wright was trained as a petroleum geologist and was head of the Petroleum Corporation of Jamaica (PCJ) in the 1970s. His interest in wind energy was piqued while searching for areas with suitable geological characteristics for petroleum development. It soon became evident that Jamaica had a significant wind resource. Over time Wright shifted the focus of his energy development to renewables and PCJ took on a leading role in the establishment of the Wigton Wind Farm, which now generates about 0.1 % of Jamaica’s energy.

Jamaica is keen to build on Wright’s legacy. Expansion of the wind farm is under way and Jamaica plans to increase renewable energy use further, with a goal to reach 20% by 2030, as part of its Vision 2030 policy. There are plans for 20 MW of PV solar to be installed to compliment the wind farm. In addition, Jamaica is offering benefits for any company or individual selling electricity to the grid from a renewable source.

Back in Derek’s home island of Barbados, there is a story of another pioneer, the late Professor Oliver Headley. An organic chemist by training, he became a leading international voice for solar energy development. He got into developing renewable energy in the 1960s after a PhD student colleague challenged him to put the sun that was beating down on them daily to productive use. His pioneering efforts helped propel Barbados to a leader in solar water heater use in the western hemisphere.

There are three solar water heater companies in Barbados and more than half of households have heaters installed, which can be written off against income tax. This policy has been in place since 1974. The story goes that the then prime minister installed a solar water heater on his house and was so impressed with the results that he put the economic incentives in place.

Barbados is keen to expand the success of solar water heaters to solar photovoltaic with the introduction of the “renewable energy rider”. This allows people installing solar photovoltaics to sell their power back to the grid at 1.6 times the usual charge. As a result of this incentive, there are now more than 300 house-top PV systems in the island, and that is expanding. There is every possibility now that we will see more Dereks by 2020 and beyond, Barbados has set itself an ambitious goal of 29% of energy to be produced from renewable sources by 2029.

Wind farm in Curacao

Wind farm in Curacao Photograph: David Ince

A few other Caribbean countries have seen success with renewable energy. The Dutch Caribbean has led the way in terms of wind energy, with Curacao, Bonaire and Aruba all having significant generation capacity. The political connection to the Netherlands has helped with technical expertise and there has been economic support from the Dutch government. Jamaica has been able to build on the know-how of Dutch Caribbean countries in their own wind development.

Nevis, St Lucia and Dominica have all sought to develop geothermal energy projects, which is another source of renewable energy that has potential in the Caribbean. The Organisation of American States and the World Bank have provided capacity and financing support.

It is encouraging to see developments such as these. The groundwork has been laid through efforts of pioneers such as Wright and Headley and there are more grassroots leaders like Derek emerging.

But the efforts of individual champions cannot be successful without policies, legislation and economic incentives, which governments are slowly but surely putting in place. Having these policies on the books without recognising and supporting local businesses or providing an environment through which champions can come to the fore is likely to impede the progress of this spectacularly beautiful but vulnerable region in developing a flourishing green economy.

Some names have been changed.

Join the conversation with the hashtag#EnergyAccess.

Credit: The Guardian

Caribbean Energy Security Summit Commits to Energy Transition

Twenty-six countries, together with seven regional and international organizations, have released a joint statement in support of the transformation of the energy systems of Caribbean countries. The signatories of the statement, signed during the Caribbean Energy Security Summit, commit to pursuing comprehensive approaches to an energy transition toward “clean sustainable energy for all” and reforms that support the creation of favourable policy and regulatory environments for sustainable energy.

The Summit, which was co-hosted by the US Department of State, the Council of the Americas and the Atlantic Council, brought together finance and private sector leaders from the US and the Caribbean, and representatives of the international community. The event showcased the initiatives under the Caribbean Energy Security Initiative (CESI) in the areas of improved governance, access to finance and donor coordination, and featured discussions by partner countries on comprehensive energy diversification strategies.

During the event, the US Government announced enhanced support for technical assistance and capacity-building programs in the Caribbean, through the Energy and Climate Partnership of the Americas (ECPA) initiative, among others, with the aim of promoting a cleaner and more secure energy future in the region. Caribbean leaders agreed to pursue comprehensive energy diversification programs and facilitate the deployment of clean energy.

Furthermore, presentations and updates were provided by, inter alia: Caribbean leaders on energy sector goals; the World Bank on a proposed Caribbean Energy Investment Network for improved coordination and communication among partners; and the US Overseas Private Investment Corporation (OPIC) on a new focus on clean energy project development in the Caribbean, which includes US$43 million in financing for a 34 MW wind energy project in Jamaica.

Highlighting the role of the Organization of American States (OAS) in supporting the transition to sustainable energy in the Caribbean, OAS Secretary General José Miguel Insulza said the past five years had seen an “unprecedented push” in the Caribbean toward the development of the region’s renewable energy sources, noting this was “doubly impressive” “in a time of low oil prices.”

The Summit, which took place on 26 January 2015, in Washington, DC, US, is part of CESI, launched by US Vice President Joseph Biden in June 2014. The regional and international organizations signing the statement were the Caribbean Community (CARICOM) Secretariat, the Caribbean Development Bank, the EU, the Inter-American Development Bank (IADB), the International Renewable Energy Agency (IRENA), the OAS and the World Bank.

The joint statement was also signed by the Governments of Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Canada, Colombia, Curacao, Dominica, Dominican Republic, France, Germany, Grenada, Guyana, Haiti, Jamaica, Mexico, New Zealand, Spain, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, United Kingdom, and the United States.

Credit: SIDS Policy & Practice IISD

Small islands to sign historic treaty in Samoa

SIDS DOCK

Small islands to sign historic treaty in Samoa, to help finance climate change adaptation

Representatives from 31 small islands and low lying countries that are members of the Alliance of Small Island States (AOSIS) will reaffirm their commitment to the Small Island Developing States (SIDS) Sustainable Energy mechanism – SIDS DOCK – at an Official Ceremony for the Opening of Signature for the Statute Establishing the SIDS DOCK, on 1 September 2014, during the upcoming United Nations (UN) Third International Conference on SIDS, in Apia, Samoa, from 1-4 September. The opening for signature of this historic SIDS-SIDS Treaty is a significant highlight and outcome of the Conference, and a major step toward the treaty’s entry into force.

Representatives scheduled to attend the ceremony confirmed their continuing support for, and preparation to sign the Statute as soon as possible, and reiterated their resolve to continue cooperating to achieve its prompt entry into force and to support the SIDS DOCK goal of 25-50-25 by 2033: Island Energy For Island Life. SIDS need to mobilize and facilitate in excess of USD 20 billion by 2033, about USD 1 billion per year, to help finance the transformation of the SIDS energy sector in order to achieve a 25 percent (from the 2005 baseline) increase in energy efficiency, generation of a minimum of 50 percent of electric power from renewable sources, and a 25 percent decrease in conventional transportation fuel use, in order to significantly increase financial resources to enable climate change adaptation in SIDS.

The Hon. Roosevelt Skerrit, Prime Minister and Minister of Foreign Affairs and Finance, for the Commonwealth of Dominica, and acting in his country’s capacity as Chair of the SIDS DOCK Steering Committee, said that SIDS DOCK represents a significant achievement in solidifying SIDS-SIDS relationships and cooperation and is, “an extraordinary lesson learned of what can happen when a genuine partner takes ‘a chance’ on a new and innovative idea that has the potential to help SIDS adapt and become more resilient to the changing climate and sea level rise.”  Recognising that the lives of more than 20 million people in small islands and low lying states are at high risk, the majority of them young people, the Government of Denmark was the first country to provide support for SIDS DOCK start-up activities with a grant of USD 14.5 million in 2010, during climate talks in Copenhagen, Denmark.  This gesture and demonstration of support was followed by a grant of USD 15 million, over two years in 2011, from the Government of Japan during climate talks in Cancun, Mexico.

In March 2014, in partnership with the United Nations Industrial and Development Organization (UNIDO), the Government of Austria extended support under a Memorandum of Understanding, with a grant of 1 million euros, for start-up activities for Centres for Renewable Energy and Energy Efficiency in the Caribbean (CCREEE), the Pacific (PCREEE), and support to African SIDS through the Economic Community of West African States (ECOWAS) ECREEE in Cabo Verde, and at a later date, support for a centre in the Indian Ocean region (IOCREEE). The new centres will also act as SE4ALL Hubs, assisting SIDS to translate commitments to actions. SIDS DOCK is highly complementary to the work being done under the Sustainable Energy For All (SE4All) Initiative, a personal initiative of the UN Secretary-General, Ban Ki-moon, that has SIDS as the largest group of signatories and with the highest ambitions.

During the Third International Conference on SIDS, the Government of Samoa and its people will host hundreds of representatives from small islands and low lying states, donors, investors and civil society groups, to what is expected to be the most important conference on SIDS to date, and one that is expected to define SIDS in a Post-2015 world, with genuine partnerships at the core of the agenda.  SIDS DOCK is well-positioned to participate in the SIDS Post-2015 Agenda with its partners, the Governments of Denmark, Japan and Austria; the United Nations Development Programme (UNDP) and the United Nations Industrial and Development Organization (UNIDO); The World Bank; and The Clinton Foundation – Clinton Climate Initiative (CCI).

During the Signing Ceremony on September 1, the Dominican Prime Minister will invite other members of the AOSIS to consider joining the organisation.  The Statute will remain open for signature in Apia, Samoa until September 5, and will re-open for signature in Belmopan, Belize, from September 6, 2014 until it enters into force.  Belize is the host country for SIDS DOCK, with Samoa designated as the location for the Pacific regional office.

Banner for Climate Resilient Islands Partnership
Background Note

SMALL ISLAND DEVELOPING STATES (SIDS) SUSTAINABLE ENERGY INITIATIVE – SIDS DOCK

A SIMPLE MESSAGE: SIDS DOCK IS A “CLIMATE CHANGE STORY”

SIDS DOCK[1] is a SIDS–SIDS institutional mechanism established to facilitate the development of a sustainable energy economy within the small islands and low lying developing states. Transforming the energy sector away from petroleum dependency is the pathway for SIDS to generate the significant levels of financial resources that will be needed for adaptation to the impacts of climate change. It is estimated that SIDS consume in excess of 220 million barrels of fuels, annually, and emit some 38 million tons of carbon.

The goals of SIDS DOCK are to mobilize in excess of USD 20 Billion, by 2033, or USD 1 billion per year, to help finance the transformation of the SIDS Energy Sector to achieve a 25 percent (2005 baseline) increase in energy efficiency, generation of a minimum of 50 percent of electric power from renewable sources, and a 25 percent decrease in conventional transportation fuel use, in order to enable climate change adaptation in SIDS. Some SIDS governments have announced more ambitious goals for the reduction of fossil fuel use in order to reduce greenhouse gas (GHG) emissions. By providing SIDS with a dedicated and flexible mechanism to pursue sustainable energy, SIDS DOCK will make it easier for SIDS Development Partners to invest across multiple island States, and to more frequently reach investment scale that can be of interest to commercial global financing. 

SIDS DOCK will serve as a “DOCKing station” to increase SIDS access to international financing, technical expertise and technology, as well as a link to the multi-billion dollar  European and United States carbon markets – within which the potential value of trading avoided GHG emissions is estimated to be between USD 100-400 billion, annually. The funds generated will help countries develop and implement long-term adaptation measures.

SIDS DOCK has four principal functions:

  • Provide a mechanism to help SIDS generate the financial resources to invest in climate change adaptation;
  • Assist SIDS with developing a sustainable energy sector by increasing energy efficiency and developing renewable energy resources that minimizes dependence on imported fuels;
  • Provide a vehicle for mobilizing financial and technical resources to catalyse low carbon economic growth, and;
  • Provide SIDS with a mechanism for connecting with the global financial, technology, and carbon market taking advantage of the resource transfer possibilities that will be afforded.

SIDS DOCK is uniquely placed to work with private sector companies, tertiary institutions and governments to facilitate research across a range of specific environmental settings, technologies and best practices. This will produce a cyclical effect, as the stabilization of clean energy infrastructures will attract increased private sector and foreign investment. With respect to the legal framework, SIDS DOCK will be registered as a trans-regional international organization, vested with the legal personality of an international organization, and with the full rights, privileges, and immunities of an international organization. This Convention will be registered pursuant to Article 102 of the Charter of the United Nations.

Further, SIDS DOCK will also be able to make recommendations to Alliance of Small Island States (AOSIS) Member States on the optimal policy and legal framework necessary to encourage such investment. The associated assessments and research into policies, innovative approaches, and economic incentives will help to standardize and streamline the transition to a low carbon, highly efficient energy economy.  SIDS DOCK will finance its operations through a combination of multi-lateral and bilateral grants, philanthropic support and income generation from selected endeavours.

Financing, Institutionalization and Project Implementation

SIDS DOCK, the Federal Ministry for European and International Affairs of the Republic of Austria, and the United Nations Industrial Development Organization (UNIDO), announced a historic partnership in March 2014, worth millions of Euros, to establish a network of regional Centres for Renewable Energy and Energy Efficiency in SIDS. The Government of Austria, through the Austrian Development Agency (ADA), has committed to fund the establishment and first operational phase for Renewable Energy and Energy Efficiency Centres in the Caribbean (CCREEE), Indian Ocean (IOCREEE), and the Pacific (PCREEE), and to provide support to the African islands at the ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE).

Twenty-two SIDS have signed historic Memorandum of Understanding (MoU) establishing a long-term partnership with the Clinton Climate Initiative (CCI) that will see the Partners working together to speed up innovative renewable energy projects and solutions that would significantly transform the SIDS energy sector to the benefit the population.  In 2012, President Clinton established a Diesel Replacement Project in small island developing states, a decision that grew from his expressed concerns about the high cost of electricity for imported diesel fuel for small island developing states as well as the adverse impact on climate change from the use of fossil fuels. 

SIDS DOCK was launched in December 2010, in Cancun, Mexico, with four Partners: the Alliance of Small Island States (AOSIS); United Nations Development Programme (UNDP); The World Bank, and the Government of Denmark, which announced a grant of USD14.5 million in start-up contributions. In December 2011, in Durban, South Africa, the Government of Japan joined the SIDS DOCK Partnership with a pledge of USD 15 million, over two years (2012-2014). In 2009, SIDS DOCK Members began the process of establishing the organisation through a Memorandum of Agreement, and on 1 September 2014, the Ceremony for the Opening of the Signing of the Statute Establishing the SIDS DOCK, is scheduled to take place at the UN Third International Conference on SIDS, in Apia, Samoa.

[1] SIDS DOCK Members: Antigua & Barbuda, Barbados, Belize, Bahamas (Commonwealth of the), Dominica (Commonwealth of), Cabo Verde (Republic of), Cook Islands, Dominican Republic, Fiji (Republic of), Grenada, Jamaica, Kiribati (Republic of), Maldives (Republic of the), Marshall Islands (Republic of the), Mauritius (Republic of), Micronesia (Federated States of), Nauru (Republic of), Niue, Palau (Republic of), Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa (Independent State of), São Tomé and Príncipe (Democratic Republic of), Seychelles (Republic of the), Solomon Islands, Suriname (Republic of), Tonga (Kingdom of), Trinidad and Tobago (Republic of), Tuvalu, Vanuatu (Republic of)

Further information on SIDS DOCK participation at Samoa is available at: http://sidsdockforum2014.org/

Contact information:
Dr. Al Binger, Energy Advisor, CARICOM Climate Change Centre, and SIDS DOCK Coordinator, Belize. Email: abinger@sidsdock.org; Telephone: +1 301 873-4522
Mrs. Sheikha Bundhoo, Senior Information Officer, Office of the Prime Minister, Republic of Mauritius, and SIDS DOCK Communications Advisor. Email: jumpy952001@gmail.com; Telephone: +230 5728 0386
%d bloggers like this: