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• Under the Electricity Supply Act, DOMLEC had exclusive rights to generate, transmit, distribute, and sell electricity in Dominica until December 2025, with an option to renew (Section 3, Section 21(1)). Further, although self-generation was permitted, it required a license from DOMLEC. With assistance of the World Bank, the Electricity Supply Act (ESA) was revised in 2006, thereby ushering in regulatory and sectoral reform. Among the changes is the shortening of DOMLEC’s exclusive license period from 2025 to 2015. Further, private entities can receive a license for self-generation and to feed into the grid. • Renewable energy systems continue to be exempted from import taxes. • The energy sector had no discernible regulatory structure. The revised ESA (2006) provides for the establishment of an Independent Regulatory Commission, with a mandate to regulate all electricity entities and all related licenses (Section 19). 3.3.13 Assessment of the Draft National Energy Policy The volatility of energy prices, acute dependency on fossil fuels, and climatic/weather events, are among the key challenges facing Dominica’s energy sector. There also is tremendous potential for the exploitation of—and even trade in—renewable energies such as geothermal power. The NEP represents the government’s strategy for the development and use of sustainable energy which is a key component toward Dominica’s overall sustainable development. The core objectives of the NEP include greater energy security, increased energy independence, greater environmental sustainability; and the reduction of energy costs and tariffs (Government of the Commonwealth of Dominica 2010b, p. 7). Moreover, the guiding principles of the NEP are gleaned from the Saint George’s Declaration of Principles for Sustainability in the OECS, which provides that “the promotion of energy conservation through the use of energy efficient technologies and systems will be a high priority for everyone in the region. However, the people of the region will expand their use of renewable energy sources such as solar and wind power” (OCES Principle 16). In terms of policy expression, the NEP establishes goals and policies for the following categories: Institutional issues, non-renewable energy resources, renewable energy resources, renewable energy technologies, energy efficiency, and conservation; and for the transport, power, agriculture, hotel and tourism, industry, and domestic sectors. 3.3.13.1 Institutional Issues In this respect, the goal of the government is to develop new energy policies supported by action plans which define measurable targets and timeframes. The actions in pursuance of the goal, however, must be further developed. The overall institutional framework makes no mention of the Independent Regulatory Commission. Although it does establish a National Sustainable Energy Office within the Ministry of Public Works, Energy and Ports, it does not include sufficient provisions for effective inter- institutional cooperation, including clear mandates, roles and responsibilities of various government agents in the energy sector, and a chain of command and responsibility. 3.3.13.2 Non-Renewable Energy Resources The goal of the government is to “provide a safe, reliable, and affordable petroleum supply and promote their clean management and use, in an effort to foster efficiency and cost saving” (Fichtner 2010). It would seem that, given volatile energy prices and high consumption of fossil fuels, part of the goal also should include reducing fossil-fuel use and imports. Moreover, in terms of the activities to be executed for the goal’s accomplishment, the provision of subsidies to enable access to energy by “marginalized groups in society” should be exercised with caution lest they lead to increased and inefficient energy 48PDF Image | Energy Policy and Analysis Caribbean
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