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understanding with Synergy, outlining the characteristics and conditions for moving ahead with the project. There is still significant reticence, however, due to project risks related to low short- run demand for energy – caused by current dependence on self-generators – and the isolated location of Amaila Falls.28 Barbados In 2005, Barbados developed the National Strategic Plan 2005-2025, which focuses on diversifying energy sources, reducing dependency on imported fuel, promoting energy conservation, and rationalizing fuel taxes. With regard to conservation, Barbados is planning to implement the National Energy Conservation Program, which will provide tax incentives for purchasing energy efficient goods and services, such as construction materials, light bulbs, and home energy audits. The effort to increase the use of renewable resources began long before this strategic plan. Since the mid-1970s, the Government of Barbados has provided tax and import incentives to produce solar-powered water heaters locally. By 2003, approximately one-third of water heaters (35,000) were solar-powered, producing 10 percent of total consumption of petroleum products (227,000 barrels of oil equivalent).29 There is also significant wind energy potential. The government and Barbados Light and Power are currently undertaking the final steps needed to begin the development of a 10-megawatt wind farm that could save approximately 45,000 barrels of oil equivalent with an investment cost of $15 million. As an incentive, the government is currently waiving import duties on the necessary equipment and materials for wind energy development. Finally, Barbados is making progress in transforming its sugar industry into a sugarcane industry, thereby promoting ethanol production. Barbados is also is working to increase imports of natural gas from Trinidad and Tobago, as mentioned above. The government recently decided to begin negotiations on building a liquefied natural gas pipeline after selecting this option over the alternative of compressed natural gas maritime transport. The potential demand for natural gas in 2010 is estimated at 24 million cubic feet per day and is expected to double to 50 million cubic feet per day by 2025. Initially, power generation would account for 90 percent of gas consumption and 10 percent would be distributed domestically.30 15PDF Image | Prospects for the Oil-Importing Countries of the Caribbean
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