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FIGURE 13.1 Electricity Demand by Sector (2004–2014) 200 150 100 50 - Source: GRENLEC, Annual Reports 2004–2014. 13.1.2 Key laws, regulations, and policies governing the sector The electricity sector in Grenada is governed by the Electricity Supply Act of 1994, which established the structure of the electricity sector and the mechanism for setting tariffs. The ESA grants GRENLEC the exclusive right to supply electricity until 2073. The Energy Policy outlines the government’s objectives and plan for reforming the energy market to reduce electricity costs and increase renewable energy generation. However, the Energy Policy has not been implemented yet. Also, the government has yet to approve the Geothermal Resources Development Bill and the Geothermal Resources Environmental and Planning Regulations. They will establish the legal framework for exploring and developing geothermal resources. Policies in the energy sector The Energy Policy presents the government’s objectives of reducing electricity prices and increasing energy security. The Energy Policy prioritizes developing renewable energy and reforming the national energy market to achieve its objectives. However, the government has not yet implemented the measures called for in the Energy Policy. The Energy Policy delineates the following actions: • Establishing a National Sustainable Energy Office (NSEO) to pursue the objectives of the Energy Policy; 177 185 181 178 176 179 165 151 173 126 132 48 70 50 74 60 82 66 90 66 97 68 99 72 102 70 100 69 99 68 97 68 100 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Commercial Domestic Industrial Street lighting Total 280. Government of Grenada, “The National Energy Policy of Grenada: A Low Carbon Development Strategy for Grenada, Carriacou and Petite Martinique,” November 2011, http://www.gov.gd/egov/docs/other/GNEP_Final_Nov_23_2011.pdf. 125 • Creating a regulatory body for licensing, oversight, regulation, and rate setting for the electricity and transport sector; • Formulating legislation and contracts consistent with a modern energy sector that would support the development of hydrocarbons and geothermal resources; and • Setting the objective of renewable energy sources providing 20 percent of all domestic energy used for electricity and transport by 2020—specifically targeting geothermal, wind energy, and solar water heaters.280 To meet the renewable energy target, the Energy Policy calls for various measures, including: providing fiscal incentives for renewable energy; collecting and publishing data on energy production, energy consumption, and resource assessments; and developing local expertise for the installation and operation of renewable energy technologies. For the last measure, the Energy Policy states that the government will engage donors to join geothermal development programs that provide financing for technical assistance. Laws and regulations governing the electricity sector The Electricity Supply Act—which was passed in 1994 and amended in 1998, 2005, and 2013— governs electricity supply in Grenada. It grants GRENLEC an exclusive license to generate, transmit, distribute, and sell electricity until 2073 on all of the islands of Grenada. Any other party seeking to generate electricity in Grenada must do so with a Electricity Sales Electricity Sales (GWh) (GWh)PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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