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OVERVIEW OF THE ENERGY SITUATION Energy resources: N Preliminary seismic data of the geology offshore of Grenada is highly prospective and strongly suggests that the island’s Exclusive Economic Zone (EEZ) may contain hydrocarbons. N With regard to renewable resources, preliminary geochemical data has indicated that Grenada may possess geothermal resources of medium enthalpy in the Mount St. Catherine area and the government has signalled its desire to aggressively pursue this resource. N In June 2006 Grenada became a signatory to the PetroCaribe Agreement with Venezuela and is one of thirteen Caribbean signatory countries. Under this agreement petroleum products are accessible to signatories on a concessionary loan-financed basis.12 ThislongtermsupplyagreementwithVenezuela’sstatecompany,Petróleos de Venezuela (PDVSA) meant that Grenada would receive 340,000 barrels of gasoline, fuel oil and diesel annually. Energy consumption: N Grenada’s primary energy consumption is dominated by transportation, which took almost half of all energy consumed in 2008, followed by the power sector, with approximately 40% of the total consumption. N At the end-use level, approximately 12% of Grenada’s total commercial energy supply is estimated to be consumed by households for cooking and electricity, about 7% is consumed by business, industry and the public sector (in the form of electricity) and approximately 25% is lost, mostly as heat during electricity generation. Electricity generation and use: N In Grenada the private-public owned Grenada Electricity Services Ltd (GRENLEC) is the sole provider of electricity and operates diesel power stations at Queens Park (installed capacity 45.9 MW) and on the islands of Carriacou (3.2 MW) and Petit Martinique (0.5 MW). The company also maintains 2.8 MW of standby generation capacity at the St George’s University campus at True Blue. N Peak demand for electricity on GRENLEC’s system in 2010 was 30.8 MW, all of which was serviced by a total of 52 MW of diesel power. N Electricity sales in 2010 were 185.79 GWh to 41,222 customers, and demand is expected to increase at 4% per annum in the business as usual (BAU) scenario. N In 2008, Grenada’s oil import bill was EC$ $68,768,000 representing 7% of Grenada’s total import bill and 76% of Grenada’s total annual export revenues. N In 2008, the price of electricity soared to over 0.81 EC$ (US$0.30/kWh), which is among the highest in the world, placing severe hardship on householders and making businesses and industry uncompetitive. 12. Product is partially (60%) paid for after delivery with interest accruing at 1% on the balance and paid for over 25 years. 5 THE NATIONAL ENERGY POLICY OF GRENADAPDF Image | THE NATIONAL ENERGY POLICY OF GRENADA
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