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ranging from as low as $0.20 per kWh (Schwerin, 2010) in Trinidad and Tobago to as high as $0.38 per kWh (McClintock, 2011) in Barbados.c Comparatively, the average cost for electricity in the United States is approximately $0.12 per kWh. Considering the cost of power, it is no surprise that off-grid diesel generators, which cause significant pollution, are so commonplace. Although the high cost of energy negatively affects many people and businesses (34 million people are without electricity in LAC), high energy costs can be a tremendous catalyst for renewable energy production. Hawaii, for example, has the most expensive electricity in the United States at $0.25 per kWh. As a result, the state has made an aggressive push for more renewable energy incentives and policies, creating, in the process, one of the most robust renewable energy markets in the United States. Notwithstanding the economic and security benefits, there is another compelling reason for Caribbean nations to incorporate renewable energy into their energy portfolio: climate change. It is estimated that a 0.5 meter rise in sea level will submerge 38 percent of Caribbean beach land (Schwerin, 2010). This seemingly insignificant increase in sea level could have dramatic effects on people’s access to energy, their livelihoods, and their basic safety. Renewable Energy Markets in Latin America and the Caribbean Because renewable energy is locally sourced, clean, and abundant, it is considered a means to increasing energy security, yet renewable energy in LAC accounts for only 23 percent of the region’s total energy production (UNEP, 2010). South America generates almost 29 percent of its energy from renewable sources, which, compared to the global renewable energy production average of 13 percent, is impressive (Meisen and Krumpel, 2009). However, the majority of South America’s production comes from hydropower and bio-energy, which are both associated with negative environmental effects. • Hydropower energy production is not reliable during long periods of drought or low rain levels and can affect flood cycles of rivers and waterways, thereby, increasing the chance of drought. • Biomass is often obtained from deforestation or through other non-sustainable methods. For example, nearly 40 percent of Guatemala’s energy is wood-fuel obtained by what are arguably considered non-sustainable de-forestation methods. Furthermore, bio-energy crops such as sugar cane and soy necessitate the use of fertilizers that contain nitrates and phosphates that cause pollution run-off. Finally, because it takes c Other countries with high electricity costs include Guyana, Saint Kitts, Nevis, and Puerto Rico. Renewable Energy Best Practices in Promotion and Use — Andrea Luecke — Page 7PDF Image | Waste Heat Recovery and RPS Policies in the US
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