Energy Policy and Analysis Caribbean

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Energy Policy and Analysis Caribbean ( energy-policy-and-analysis-caribbean )

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3.1.1 Energy Sector Outlook 3.1.1.1 Government Agencies The Sustainable Energy Desk within the Office of the Prime Minister is responsible for providing leadership on the energy policy and enacting the National Sustainable Energy Policy, following its approval. The National Energy Task Force has been commissioned to draft an energy policy (Government of Antigua and Barbuda 2009). 3.1.1.2 Utilities and Independent Power Producers The utility, Antigua Public Utilities Authority (APUA), is a government agency responsible for production, transmission, and distribution of electricity to both islands. Although government policy on self- generation is unknown, independent power producers are allowed to exist by contract with APUA. The Antigua Power Company (APC) is an independent power producer (IPP) that has supplied power to the APUA grid since 1996 (Antigua Public Utilities Authority 2004). 3.1.1.3 Sustainable Energy Desk The Prime Minister of Antigua and Barbuda established both the Sustainable Energy Desk and the National Energy Task Force in early 2010. The National Energy Task Force is commissioned to develop the National Sustainable Energy Policy (NSEP) with assistance of OAS/CSEP project, and includes government, business, financial, and utility stakeholders. 3.1.2 Electricity Market 3.1.2.1 Utilities The Antigua Public Utilities Authority (APUA) operates as a monopoly over both islands of Antigua and Barbuda, serving the nation’s production, transmission, and distribution of electricity (Antigua Public Utilities Authority 2004). The APC is a privately owned power generator and is chaired by a local politician and businessman (Simon 2005; Caribbean Professionals Directory 2009). It is effectively an IPP operating a set of diesel generators (Antigua Public Utilities Authority 2004). 3.1.2.2 Electricity Generation Electricity on Antigua and Barbuda is provided by a combination of leased generators and a diesel-fueled IPP, in addition to the utility’s own capacity. The total share of capacity contracted by the utility has grown from 40% in 2004 (Antigua Public Utilities Authority 2004), to 62% in 2009 (Nexant 2010, p. 5.3). Over the years, supply by APC has grown, as APUA has chosen the IPP to replace its own aging plants to supplement new investments in its own equipment. This transition has caused some power supply and political problems in the past, but these appear to have been resolved (Hadeed 2005; Spencer 2008). The APUA leases generators from West Indies Oil Company (WIOC), a regional oil products terminal in Antigua, and Aggreko, an international power-generator rental company (Aggreko 2010). One of the APUA plants is a combined power and desalination plant (Antigua Public Utilities Authority 2004). 15

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