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The legal and regulatory framework The legal and regulatory frameworks of all five countries are simple. The electricity sector in each country is governed by an Electricity Supply Act. The only exception to this is Saint Kitts and Nevis, where the electricity sectors on each island are governed by separate laws.134 To simplify the discussion, we will refer to the legislation governing the electricity sectors of the countries in our study as ESAs. The ESAs establish the structures of the electricity sectors and regulate the sector. The ESAs either grant licenses to the vertically integrated utility or create the legal framework necessary for the ministry responsible for energy to do so. The ESAs also establish the price-setting mechanism that is used to determine tariffs. The exception to this is Saint Kitts and Nevis, where tariffs are set by the governor general with approval from the National Assembly in Saint Kitts and by NEVLEC in Nevis. The ESAs of all the countries in our study allow for IPPs.135 However, there is only one IPP in the countries studied. The IPP is located in Nevis, produces electricity from wind energy, and has 1.1 MW of generation capacity.136 Regulation of the electricity sectors varies between countries. Most countries in our study (Dominica, Grenada, and Saint Kitts and Nevis) have legislation that mandates creating an independent regulator for the electricity sector. Despite this, only Dominica has appointed a separate regulatory entity. Grenada and Saint Kitts and Nevis instead have assigned regulatory functions among different government agencies. In the other countries in our study (Saint Lucia and Saint Vincent and the Grenadines), regulation is established by statute in the ESAs and regulatory functions are spread among various government agencies. How regulatory functions are distributed between different ministries also varies from country to country. In some countries, there is one ministry that is responsible for overseeing the electricity sector and for policymaking in the sector. An example of this is Grenada, where the Ministry of Finance, Planning, Economic Development, Trade, Energy and Cooperatives oversees GRENLEC and also develops policies for expanding renewable energy use. On the opposite end of the spectrum, the Ministry of Transport and Works in Saint Vincent and the Grenadines is the main body responsible for overseeing the electricity sector, but regulatory functions are spread across five other governmental bodies. Most of the countries studied lack laws and regulations governing the exploration and exploitation of geothermal resources. Only Nevis has passed legislation that defines what a geothermal resource is and who owns it, and sets out the process for assigning rights to explore and exploit it. The rest of the countries are either working to prepare geothermal resource development bills or reviewing them for approval. 134. The Electricity Supply Act of 2011 governs the electricity sector of Saint Kitts and the Electricity Ordinance of 1998 governs the electricity sector of Nevis. 135. National Renewable Energy Laboratory and Organization of American States, “Energy Policy and Sector Analysis in the Caribbean 2010– 2011,” accessed October 31, 2014,http://www.ecpamericas.org/data/files/Initiatives/lccc_caribbean/LCCC_Report_Final_May2012.pdf. 136. Herbert Samuel, “A Review of the Status of the Interconnection of Distributed Renewables to the Grid in CARICOM Countries,” October 2013, accessed November 17, 2014, http://www.credp.org/Data/CREDP-GIZ_Interconnection_Report_Final_Oct_2013.pdf. 77PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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