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12.1.1 The electricity market in Dominica In 2014, DOMLEC’s total installed capacity was 26.7 MW, which consisted of 20.1 MW of diesel generation and 6.6 MW of hydropower units (the effective hydropower capacity during the dry months is approximately 3.2 MW). DOMLEC operates two diesel power stations and three hydroelectric power stations. DOMLEC’s installed capacity is well above peak demand, which was approximately 17 MW in 2014.220 The growth of DOMLEC’s electricity sales and peak demand has slowed during the last four years, but there was a slight increase in both electricity sales and peak demand in 2014. This increase was driven by increased sales in the residential sector. In 2014, DOMLEC served 35,354 customers—including 3,954 domestic customers, 4,055 commercial customers, 39 hotels, and 42 industrial customers. In 2014, domestic customers had the highest total demand (46 percent of the electricity consumed) and commercial consumers had the second highest total demand (41 percent of the electricity consumed; see Figure 12.1. In 2014, electricity sales increased by 2 percent, twice as high as the average annual growth rate of 1 percent between 2003 and 2012.221 Peak demand also increased by 1 percent in 2014; however, the growth rate for peak demand has decreased since 2009. FIGURE 12.1 100 90 80 70 60 50 40 30 20 10 Electricity Demand by Sector and Peak Demand (2004–2014) 20 18 16 14 12 10 8 6 4 2 24 33 25 33 26 34 29 34 30 34 00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Street Lighting Industrial Hotels Commercial Domestic Peak Demand Source: Source: DOMLEC, Annual Reports 2004–2014. 12.1.2 Key laws, regulations, and policies governing the sector 32 36 36 39 38 40 41 38 41 42 The electricity sector in Dominica is governed by the Electricity Supply Act of 2006, which establishes the structure of the electricity sector and creates the sector’s regulator. The ESA granted DOMLEC the exclusive right to supply electricity until December 2015. Discussions between IRC and DOMLEC since 2012 culminated in 2013 with IRC granting DOMLEC two new licenses; a Generation License gives DOMLEC the non-exclusive right to generate electricity, and a Transmission, Distribution, and Supply License gives DOMLEC the exclusive right to transmit, distribute, and supply electricity in Dominica. Both licenses are for 25 years and went into effect on January 1, 2014. 220. DOMLEC, 2014 Annual Report. 221. Ibid. The government has drafted several other laws and policies that will guide the development of the sector once they are approved. These include the Geothermal Resources Development Bill (2013), the Draft National Energy Policy (2014), and the Draft Sustainable Energy Plan (2014). The Geothermal Resources Development Bill will establish the legal framework for exploring and developing geothermal resources. The Draft National Energy Policy (2014) and the Draft Sustainable Energy Plan (2014) will establish the government’s objectives for the electricity sector and the actions that it would pursue to achieve these objectives. 100 39 38 Sales of Electricity (GWh) Peak Demand (MW)PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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