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OVERVIEW OF THE ENERGY SITUATION 2.2 THE REGIONAL SETTING N The Caribbean Community (CARICOM) region is heavily dependent on fossil fuels. It is estimated that up to 95% of commercial energy consumed in the CARICOM region is derived from fossil fuels, primarily oil.5 N Of the fifteen CARICOM member states6 Trinidad & Tobago produces a large surplus of oil and gas for export; Belize and Suriname each produce the equivalent of about three- quarters of their local petroleum products consumption, and Barbados produces the equivalent of about one-eighth of its local consumption. N The other CARICOM countries import all of their petroleum products which are supplied mostly from refineries in Trinidad and Tobago, Curaçao, Puerto Rico and St Croix, and furthermore entered into regional energy supply initiatives such as the Trinidad and Tobago-sponsored Petroleum Stabilization Fund (implemented in July 2004) and Venezuela’s Energy Co-operation Agreement (PetroCaribe), signed in June 2006. N The recent combination of record high, volatile energy prices and the 2007/08 recession has had a dramatic and negative impact on the economies of most CARICOM states, many of which depend on extra-regional travel and tourism for a significant portion of their economic performance.7 N Within the OECS, there is a movement towards economic union and where an OECS driven sub-regional energy policy is being developed to identify opportunities to reduce costs and achieve economies of scale through coordinated approaches. N Current studies under the aegis of the CREDP, GTZ, OAS, IDB and World Bank are ex- pected to be instrumental in the development of regional strategies and synergies; the GoG has accentuated the need for inclusion in such studies with a more participatory role and to ensure a holistic approach. N A World Bank sponsored project to establish the Eastern Caribbean Energy Regulatory Authority (ECERA) to oversee the electrical energy sectors of the participating countries has commenced and is also expected to inform policy planning. N Grenada (having a private monopolistic electric utility) has indicated an interest in joining ECERA. Negotiations and agreement on the terms of the establishment of the ECERA are still ongoing and it is premature to regard the birth of this new institution as a fait accompli. N Grenada is committed to regional approaches and will cooperate whenever national and regional interests converge. 2.3 GRENADA’S ENERGY SITUATION General information: N Grenada is a tri-island state comprised of the islands of Grenada, Carriacou and Petite Martinique, covering 133 square miles (344 square km), and located in the eastern Caribbean. Grenada is an independent nation, governed under a Westminster-style democracy with a population size of 105,552 and has a per capita GNI (2008) of US $5,710.00. 5. Trinidad & Tobago, an oil-producing CARICOM country, uses mostly natural gas for its electricity production 6. CARICOM is comprised of 15 member and 5 associate member states 7. The World Travel and Tourism Council (WTTC) ranks the Caribbean as the region of the world with the largest relative contribution of travel & tourism to its economy. 3 THE NATIONAL ENERGY POLICY OF GRENADAPDF Image | THE NATIONAL ENERGY POLICY OF GRENADA
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