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15.1.1 The electricity market in Saint Lucia LUCELEC is one of the top-performing electricity utilities in the Caribbean and is the sole provider of electricity in Saint Lucia. It holds an exclusive license to generate, transmit, distribute, and sell electricity in Saint Lucia until 2045. Saint Lucia has almost universal coverage; LUCELEC provides electricity to 96 percent of households. Almost all electricity sold is generated using diesel generation—solar generation only makes up 100 kW of Saint Lucia’s installed capacity. At the end of 2014, LUCELEC reported an installed diesel capacity of 86.2 MW and a peak demand of 57.2 MW.395 LUCELEC’s reserve margin—calculated as the difference between installed capacity and peak demand divided by total peak demand—was 51 percent in 2014. 400 350 300 266 250 200 96 150 100 50 0 302 105 171 315 331 333 333 334 334 FIGURE 15.1 Demand for Electricity in Saint Lucia by Sector, 2004–2014 284 99 101 2005 2006 Commercial 298 277 108 114 151 158 161 168 171 179 189 191 193 193 191 2004 2007 2008 2009 2010 2011 2012 2013 2014 Source: LUCELEC, Annual Reports 2004–2014. In Saint Lucia, electricity demand has remained flat during the last five years. Total demand grew steadily from 2004 to 2010, but has remained at about 333.5 GWh per year since then. In December 2014, LUCELEC had 67,100 customers, consisting of 59,790 residential customers, 7,193 commercial customers, 98 industrial customers, and 19 street lighting customers. In 2014, the commercial sector consumed more than half of electricity (57 percent), followed by the residential sector (33 percent), the industrial sector (5 percent), and street lighting (3 percent).396 395. LUCELEC, 2014 Annual Report. 396. Ibid. Key laws, regulations, and policies governing the sector Domestic Industrial 15.1.2 Street lighting Total 114 The electricity sector in Saint Lucia is governed by the Electricity Supply Act of 1994, which establishes the sector’s structure and the tariff- setting mechanism. The ESA grants LUCELEC the exclusive right to supply electricity until 2045—a period of 80 years. In addition to the ESA, the sector’s development is guided by the government’s National Energy Policy (2010). The National Energy Policy establishes the government’s plans to reform the energy sector and expand the supply of renewable energy to lower the cost and the price volatility of energy. 112 113 112 173 Electricity Sales (GWh)PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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