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• Regarding the interconnection policy, unfortunately there has been no differentiation between technologies used or an assessment of their estimated cost to adequately remunerate customers and make investments more attractive. Also, there is no time commitment in the interconnection procedures, creating uncertainty among project developers. • The net-metering configuration as presently established does not provide security to the investor, because there is no long-term guarantee of the electricity exchange. The interconnection policy should be revisited and to evaluate the policy’s effectiveness in promoting the increased installation of small-scale renewable energy production systems, by particularly addressing the issue of feed-in- tariff structure and guaranteed duration. Unfortunately, there is limited available public information on the effectiveness of the duty-free concession for SWHs to be able to draw solid conclusions. A challenge in analyzing the effectiveness of fiscal incentives for SWHs is that such systems offset the use of electricity for heating water, which requires a multiple set of parameters, continuous monitoring, and relative complicated energy conversion methods to produce results. Thus, a separate policy analysis of fiscal incentives in place to promote the import and use of SWHs should be conducted. 3.4.13 Assessment of the National Energy Policy With the support of CSEP and through an extensive consultation process with a wide cross-section of stakeholders, in 2010 a national energy policy was created for Grenada. The Government of Grenada recognizes that “energy is a significant driver of development ... and requires policy priority” (Government of Grenada 2010, p. 2),15 and that the ultimate objective of the NEP is to “ensure and provide affordable, equitable, reliable, clean and sustainable energy sources and services to drive and secure national development, and improve the quality of life for all of its citizens” (Government of Grenada 2010, p. 10). The national energy policy is guided by the principles of: energy security, energy independence, energy efficiency, energy conservation, environmental sustainability, avoiding the unsustainable exploitation of energy resources, lower energy prices, and energy equity and solidarity. In terms of policy expression, the NEP establishes goals and policies for the following categories, institutional issues, legal and regulatory framework, hydrocarbons, renewable energy, energy efficiency, and conservation; and for the following sectors, transport, power, agriculture, hotel and commercial, manufacturing, and household. 3.4.13.1 Institutional Issues The government recognizes that a new institutional framework is required to ensure good governance of the energy sector. Thus, the goal is to “build and establish the adequate human capacity and institutional regime to guarantee the appropriate allocation and management of resources to achieve energy policy goals” (Government of Grenada 2010, p. 15). The policies as listed are very vague and lack specifics. One policy, for example, involves the establishment of a National Sustainable Energy Office (NSEO) and, although it outlines the NSEO’s organizational structure in Appendix IV of the NEP, it does not indicate whether the NSEO is an independent and autonomous body, and doesn’t include its proposed functions. It also is unclear what the relationship will be with the existing institutional structure, which includes the ministry and department having energy-related responsibilities. The NEP must include clear roles and responsibilities, and a defined hierarchy or chain of command, and should 15 Hon. Nazim Burke M.P. Grenada Minister of Finance, Planning, Economy, Energy and Cooperatives. 60PDF Image | Energy Policy and Analysis Caribbean
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