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incentive programs and other fiscal projects to further the enablement of efficiency measures and the rational use of local energy resources. Such policies are useful in providing direction for the energy sector amidst a frequently changing political landscape and for creating a framework for progress. Often, though, the policy follow-through and implementation can be problematic, as is further discussed in the individual country assessments. Energy Policy Frameworks The conceptual distinction between different energy policy frameworks often is unclear. Motivated by Loy and Wilson’s comprehensive reports, this report distinguishes the frameworks using the following working definitions. National Energy Policy A national energy policy (NEP) is strategy with high-level short-term, medium-term, and long-term statements of a nation’s goals and direction of policy regarding its energy supply and consumption. A NEP should establish the institutions to carry out energy policy, and include the scope of their responsibilities. The NEP should be developed with input from multiple stakeholders, including existing utilities and energy suppliers, consuming industries in the economy, and community groups. This path leads to a NEP being less likely to be political in nature, although it usually requires approval by a national legislature or another top-level government body. Energy Action Plan An energy action plan (EAP) is a strategy or set of actions intended to achieve or work toward achievement of the energy goals, especially during the medium and short term (e.g., within 5 to 10 years). The strategies and actions that comprise the plan detail short-term programs and incentives, and specify which government ministries or regulators are responsible for carrying out the actions. This plan can be a statement by the elected government in power and usually requires approval by a national legislature or other top-level government body. Sustainable Energy Plan A sustainable energy action plan (SEP) (Loy 2007, pp. 18, 22) is virtually synonymous with an EAP, except that the SEP is intended to focus on the energy plan as relating to sustainability and environmental policy. A SEP typically includes specific sustainability criteria to enable the prioritization of proposed actions. A thorough SEP considers the economic, societal, and environmental consequences of energy decisions. Stakeholders Traditional stakeholders for energy policy include government bodies, established electrical utilities, independent regulatory authorities, and consumer organizations. As the Caribbean energy sector transforms, independent power producers are emerging. These stakeholders must work together to maintain the financial stability of the governments and utilities and to protect the interests of the energy users, especially residents, commercial and industrial customers, and the hospitality industry. Due to the typical electricity market structure found in the Caribbean, the governments of many nations historically have lacked any energy-specific policy-making bodies. Instead, after utilities were given license by an act of government, they were left to operate independently, as the developing nations dealt with other priorities. Recently, as nations have begun to develop more long-term energy policies, energy-specific government agencies have been created in a variety of ways. Some are based on the viiiPDF Image | Energy Policy and Analysis Caribbean
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