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Energy Policy and Analysis Caribbean

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

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• The island experiences the highest prices for electricity in the region, while it possesses huge geothermal resources, as well as wind, solar, hydro, and landfill gas—giving Dominica the potential to be an RE showcase nation. It has enough geothermal energy to become a net exporter of electricity to neighboring islands. Dominica has three legacy hydro plants, and installed its first wind turbine in 2008 (Posorski & Werner 2009, p. 53). Dominica should focus on developing these resources. • Dominica’s experience in energy-sector reform, particularly unbundling and privatizing the sector, could serve as example for other SIDS. • Despite the hydroelectricity generation and the current efforts made by the government, no measurable benefits from current legislation and projects developed in the country to reduce the rate of oil importation and consumption were demonstrated during the analysis period. Regardless the hydropower currently used—which has been surpassed by fossil-fuel use—the oil consumption still is increasing and internal volatility is affecting the national energy security. • The government should adopt a national energy policy to determine its energy policy goals and long-term supply strategy. This will reduce risk of “deterioration of the electricity sector” due to policy uncertainty, and will encourage long-term investment (Posorski & Werner 2009, p. 63; (Loy 2009, pp. 8–9). • Within the auspices of the NEP, the government should adopt a sustainable energy plan, as it has a unique opportunity to become the first country to rely completely on sustainable energy, and become a showcase nation (Loy & Farrell 2005, p. 12). • The government should address the policy deficiencies that have prevented IPPs from investing in RE and self-generation (Posorski & Werner 2009, p. 63; Loy 2009, pp. 8–9). • Policies specific to IPP’s should include: o Policy for IRC to determine excess, backup, and reserve power tariffs; o Policy for licensing and guidelines for operation of IPPs; and o Guidelines for power purchase agreements (Loy 2009, p. 12). • The government should address the lack of RE and self-generation policy, including: o Technical rules for grid connection of self-generators and small-scale RE installations; and o Rules for net metering (Loy 2009, p. 12). • The government of Dominica should address energy efficiency as follows. o Conduct energy audits in government, commercial, and public buildings. Table 8 can serve as a guideline to prioritize energy efficiency improvement efforts, starting with high energy consumers as the industry and hotel sectors; o Work with other islands to develop building codes that address energy efficiency o Ban incandescent light bulbs, and compel the standards agency to set standards for energy-consuming appliances (Loy 2009, p. 12) • The government should mandate the use of solar water heaters for new construction (Loy 2009, p. 12). The government should prioritize incentives for solar water heaters prior to considering whether to make them mandatory (per Loy 2009, p. 12). 50

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