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In 1999, the government eliminated all import duties and consumption taxes on renewable energy and equipment and material and 3 years later, in 2001, they even decided to make the purchase of solar water heaters tax-deductible. Nevertheless, it was recognized that this effort was not enough to achieve more energy efficiency and to reduce the reliance on the current energy sources (Ministry of Physical Development and the Environment 2010). So in May 2003, the government made a draft of an Energy Sector Policy and Strategy which identifies and develops short to medium-term energy policy options for renewable energy and energy efficiency (Loy & Farrell 2005). This draft was finalized in January 2010 and it is before the Cabinet of Ministers and waiting to be approved (D’Auvergne 10 May 2010). One key objective of the national energy policy is to create a proper regulatory and instrumental environment for the introduction of indigenous renewable energy to the national energy mix and to achieve greater energy security and independence as well as to support the Sustainable Energy Plan with a proper framework. The paper proposed new electricity targets out of renewable energies as: 5% by 2013, 15% by 2015 and 30% by 2020 (Ministry of Physical Development and the Environment 2010). Increasing oil prices are reflected in the fuel cost adjustment factor (fuel surcharge) charged to the customers. The high oil prices in 2008 caused an increase of approximately 12-15% in the average customer electricity bill. LUCELEC wants to minimize this impact and sees some sustainable options that “... include intensifying customer education in areas of efficient energy use to encourage customers to implement energy conservation measures, expediting action on all initiatives for generation expansion using alternative technologies and renewable or sustainable sources, reviewing and expanding tax and other concessions for renewable energy and energy efficient products, and the development and implementation of a broad energy policy which sets out targets for energy conservation, demand reduction, reduction of emissions, percentage of power derived from renewable and/or sustainable sources, etc., through which some of these initiatives may be implemented“ (CARILEC 2008, p.1,2). LUCELEC is also aware that various actions at different levels are required, from LUCELEC itself, the customers, as well as the government. Case Studies 51PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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