CARICOM Energy Programme

1. CARICOM Energy Programme Meeting with CROSQ and Bureaux of Standards on Energy Efficiency Standards and Labeling Joseph Williams Programme Manager, Energy Hotel PomMarine, Barbados 27 May 2011

2. CARICOM ENERGY PROGRAMME Background • Task Force on Energy & Draft CARICOM Energy Policy recommended energy desk at CARICOM Secretariat • Sustainable Energy Issues have evolved to be important for Member States • Indigenous Resources for most MS; need to diversify; reduce cost; enhance economic competitiveness • Climate Change Agenda – energy sector is a focus; Also opportunities to support development • Need for facilitation of energy sector coordination • Resource mobilization to assist Member States

3. CARICOM ENERGY PROGRAMME GOAL To increase regional energy security and advance the transformation of the Region towards a more sustainable energy developmental path (through the implementation of a regional energy policy and a regional sustainable energy strategy) and play a catalytic role in regional economic integration, economic competitiveness, economic growth and development. OBJECTIVES • Finalization and Implementation of CARICOM Energy Policy • Energy Sector Coordination in the Community- focus on SE • Mobilize resources to support MS’ Energy Sector development • Develop and implement regional level energy sector strategies • Implement regional level projects – focus on SE

4. Key Results AREAS - • Finalization of Regional Energy Policy which will form the basis of the integration of the energy sector of CARICOM • Increased number of energy policies and national energy plans implemented • Improved regulatory & legal framework to foster greater use of renewable energy and improvement in the energy efficiency (including increased incentives for RE use; increased investments in RE) • Development and implementation of a regional sustainable energy road map and strategy • Improved institutional capacity for planning and implementation of energy strategies • Increased Investment in RE and EE for greater contribution to the regional energy matrix

5. SOME ACTIVITIES • CARICOM Policy – Finalize & Implement • Sustainable roadmap and strategy C-SERMS • Facilitate dialogue; advance targeted functional cooperation on the issue of inter-island connection of electricity infrastructure. • Coordinate sustainable energy initiatives in CC • Implement CREDP/GIZ Activities in collaboration with Projeckt Consult; MOU between CARICOM and GIZ • Implement CRECS Project Activities - CCS • Implement Project Called: “Increasing sustainable Energy Awareness in Public Sector” (ISEAPS) - CCS • Caribbean Sustainable Energy Programme(C-SEP) - OAS • Energy and Climate Partnership of Americas (ECPA) – US Govt/OAS • Sustainable Energy Technical Assistance Project (SETA) –OECS • CARICOM EE labeling Assessment & Capacity Strengthing (CEELACS)

6. STATUS OF CC ENERGY POLICY • In February 2007 Draft CARICOM Energy Policy was submitted to the 18th Inter-Sessional Meeting of the Conference of Heads of Government by Task Force on energy. • Outstanding Pricing Study was completed over 2010 • Draft Policy was presented to COTED Energy March 2011 • CCS Mandated by COTED to revised Policy & to update Heads in July 2011 (NB Targets to be set within C-SERMS Framework; Energy Week November 2011) • Senior Official Meeting to review policy held on May 20 2011 • Follow up Meeting will be held June/July • Aimed to have finalized policy in February 2012 at Inter-sessional Conference of Heads.

7. The Draft Energy Policy covers • Petroleum Trade • Standardization of Specifications for Petroleum Products • Transportation of Petroleum and Petroleum Related Products; Optimization, storage, efficiency of transportation network • Optimize Use of Natural Gas: through regional projects, establishing Natural gas as a key energy resource in region • Renewable Energy Sources: to be promoted to reduce the dependence on fossil fuels, • Development of Hydro Power: to promote same • Power Generation: promote competition; use of alternate energy, cost reduction strategies • Transmission and Distribution of Electricity • Electricity Regulation • Energy Conservation and Efficiency • Energy Investment • Pricing • Energy and Environment • Human Resource Development • Institutional Strengthening • Research and Development • Public Education and Outreach • Energy and Poverty Alleviation

8. ENERGY CONSERVATION AND EFFICIENCY in DRAFT CARICOM ENERGY POLICY • Promote energy conservation & EE • Set, monitor & enforce targets. • Promote EE measures through the introduction of fiscal incentives. (Notable shortcoming is the promotion of incentives to proliferate the use of solar water heaters). • Mandate energy audits of residential and commercial buildings. • Develop capacity in national and regional agencies (electrical inspectors, Bureau of Standards, CARICOM Regional Organization for Standards and Quality - CROSQ).

9. Energy Policy in Member States • All have started to develop or have developed national energy policies with sustainable energy focus • Four countries have approved energy policies • Jamaica, St Vincent and Grenadines, St Lucia, Grenada • Guyana’s national energy policy is outdated (2004) however sustainable energy policies are articulated in the context of the Low Carbon Development Strategy. • Trinidad and Tobago and Suriname are pursuing development Renewable energy Policy • Haiti has articulated energy policy through strategy framework

10. Sustainable Energy Path • Maximize utilization of renewable energy sources • Minimize use of depletable sources (ie energy efficiency and conservation) • Varies for each country and will depend on resource endowment (100% to any %)

11. Renewable Energy Sources in CARICOM

12. What does a ‘Sustainable Energy Future look like? Modern Policy, Legal and Regulatory Framework. Institutions are adequately resources. Efficiency in Use of Energy at all Levels. Adequate data and information management. Efficiencies in transportation of persons and goods. Increased exploitation of indigenous energy sources for electricity generation. Reduced carbon footprint. Architectural design of Buildings take account of energy efficiency considerations. National Fuel bill reduced and savings utilised for infrastructural development. Electrical Appliances properly labelled on efficiency performance and easy to understand. Comprehensive knowledge of renewable source potential.

13. Sustainable Energy Path Through CARICOM Energy Policy Universal access to sustainable and secure supplies of energy Transformation of energy sectors to enhance sustainable development Optimization of domestic production of energy in an environmentally sound manner Relationship between energy and international competitiveness of regional industries Four pillars which underpin the regional policy 13

14. What is Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS)? MANDATE: • At the 20th Meeting of the Heads of Government of the Caribbean Community held in Belize City, in March 2009, it was Agreed that: a regional sustainable energy roadmap should be developed and implemented to guide, encourage and expedite the increased use of renewable energy and energy efficiency, as a key climate change mitigation strategy. WHAT IS C-SERMS: • Is conceptualised as an updateable sustainable energy planning and communication framework within which regional level Sustainable Energy targets and strategies will be articulated and pursued in CARICOM. Being developed by the CARICOM Energy Programme in collaboration with CARICOM Member States and other partners. • C-SERMS: Will define achievable short (2015), medium (2020),and long term targets (2025)on a Regional Level for renewable energy (RE) and energy efficiency (EE) contribution to the Regional energy mix based on resources available in the different Member States and based on regional level strategies.

15. C-SERMS Framework • C-SERMS Represents fast-tracking of sustainable energy because of: • Consensus on importance for energy security • Climate change agenda • Potential for economic competitiveness • Opportunities Define achievable short (2015), medium (2020),and long term targets (2025)on a Regional Level for renewable energy (RE) and energy efficiency (EE) contributions to the Regional energy mix based on resources available in the different Member States 2025 2020 2015

16. C-SERMS Framework • Set regional goals and specific targets for contribution of RE & BE to the energy mix as well as EE improvements in a strategic and targeted manner. • Define pathways to achieve the set targets. • Form the basis for commitment on the part of each Member State towards a Regional sustainable energy path. • Detail the finance and institutional capacity necessary for formulation of strategies and attainment of targets / goals. • Provide a clear framework for focusing research, development and investment efforts in EE, RE and BE towards the achievement of the policy goals.

17. Framework for Developing C-SERMS BASELINING • Map and assess existing sustainable energy initiatives in all Member States (including efficiencies and conservation in transportation, electricity and industrial sectors). • Review sustainable energy policies, plans, regulatory framework and legislation. • Conduct Gap analysis of policy, capacity, awareness/awareness, financing. TOOLS DEVELOPMENT • Mechanism to support the development of the C-SERMS (possibly Platform comprised of multidisciplinary and multi-stakeholders) • Regional Energy Balance Model for tracking progress, forecasting and monitoring the performance of the sector. STRATEGIES AND TARGETS • Establish short, medium and long term targets for RE, EE and BE • Identify areas for necessary policy, regulatory and legislative reforms • Identify areas for improvement in information and awareness, financing mechanism, R&D and innovation

18. CARICOM RE RESOURCES “for Illustration not reflective of actual”

19. 2015 TARGET SOURCES Existing support & GAPS Capacty Sustainable Energy 15% GAPS TO BE FILLED by NEW INITIATIVES; Local or IDP Awareness Policy & Legal Finance R & D EE 3% IN THIS CONTEXT ALL PROJECTS & INITIATIVES ARE MEANS TO SPECIFIC ENDS

20. Benefits of C-SERMS • Set regional goals and specific targets for contribution of RE & BE to the energy mix as well as EE improvements in a strategic and targeted manner. • Define pathways to achieve the set targets. • Form the basis for commitment on the part of each Member State towards a Regional sustainable energy path. • Detail the finance and institutional capacity necessary for formulation of strategies and attainment of targets / goals. • Provide a clear framework for focusing research, development and investment efforts in EE, RE and BE towards the achievement of the policy goals.

21. Benefits of Baselining • Will provide data that can be utilised to define a Regional Energy Investment Strategy. • Can produce a pipeline of projects for CDM financing. • Show opportunities that Governments could leverage and weaknesses that could be minimized through appropriate actions. • Will provide Governments with proprietary ownership over resource assessment information which could be used strategically. • Gaps identified will allow Governments and Developmental Partners to develop programmes / projects that address a particular need. • Create opportunities for small business development e.g. ESCOs and equipment suppliers.

22. Timelines and Proposed Achievements • PHASE 1 • Existing initiatives and Projects Mapped • Policies, Plans and Regulatory and Legislative Framework reviewed to determine gaps • Capacity, Information / Awareness, Financing assessed to determine areas for strengthening • Platform designed and Operationalised (subject to approval of Member States) • Energy Modeling Framework and Data Requirements Assessed. • First Level C-SERMS Developed with preliminary targets IDB Grant Fund of US $400,000 Government of the Federal Republic of Germany has committed €4.5 M for the period 2011 - 2014 2011 • PHASE 2 • Wide scale RE and EE assessments conducted • Detailed gap analysis conducted • Energy Balance Model and Framework Implemented • Second Level C-SERMS Developed with Comprehensive strategies and Actions and more concrete targets 2012 onwards

23. Energy Efficiency in C-SERMS • Energy Planning Model/Framework • Regulatory, Legislative Framework • Institutional Framework • Indicators – Benchmark and Baseline • Electricity – Gen, Trans, Distribution • Building, Industry, Transportation • Standards • Energy Management • Fuel Efficiency • Energy Efficiency Code • Appliance Labelling

24. Energy Efficiency Standards and Labeling • Improving energy efficiency in the residential- and commercial-buildings sectors not only saves money and reduces pollution but also improves the indoor environment of homes and the productivity in commercial buildings. Energy-efficiency labels and standards for appliances, equipment, and lighting offer a huge opportunity to improve energy efficiency and are especially effective as an energy policy. - Collaborative Labeling and Appliance Standards Program (CLASP)

28. Energy Labels Information affixed to manufactured products to describe the product’s energy performance (usually in the form of energy use, efficiency, or energy cost); these labels give consumers the data necessary to make informed purchases. Types of labels: • endorsement labels and • comparative labels. • Endorsement labels are essentially “seals of approval” given according to specified criteria. • Comparative labels allow consumers to compare performance among similar products.

29. ENDORSEMENT LABELS COMPARISON LABELS

30. Energy Labels • Stand alone or complement energy standards. • In addition to giving information, labels also provide a common energy-efficiency benchmark that makes it easier for utility companies and government energy-conservation agencies to offer consumers incentives to buy energy-efficient products. • The effectiveness of energy labels is heavily dependent on how they present information to the consumer and on how they are supported by information campaigns, financial incentives, and other related programs.

31. Energy-efficiency Standards • Procedures and regulations that prescribe the energy performance of manufactured products, sometimes prohibiting the sale of products that are less efficient than a minimum level (3 types of EE standards: prescriptive standards, minimum energy performance standards (MEPS) & class-average standards) • protocols (or laboratory test procedures) – provides a sufficiently accurate estimate of the energy performance of a product -as typically used, or at least a relative ranking • target limits on energy performance (usually maximum use or minimum efficiency) • “Norm” is sometimes used instead of standard.

32. ISSUES • Mandatory vs. Voluntary Programmes • Individual Products vs. Product Class • Adopting International Programmes • Frequency issue

33. Steps in Developing EE Labels and Standards Programs

34. STEPS IN DEVELOPING EE LABELING PROGRAM Decision to pursue EE labeling or standards-setting program is complex and difficult. Process should include: ■ assessing how local cultural, institutional, and political factors are likely to influence the adoption and effectiveness of the program ■ establishing strong and clear political legitimacy for standards ■ deciding how much to rely on existing test facilities, test procedures, label design, and international standard ■ assessing the data needs of the program and the capability of the government to acquire and manage the data ■ screening and selecting which types of products are the highest priorities

35. Major steps in deciding how to implement

36. Basic Elements • Assessing the Capacity to Develop and Implement a Program • Appropriate constitutional, legislative, and administrative authority must exist or be established, for conducting each of the steps of the standards-setting process. • Assessing Data Needs & Screening/Selecting • Products • Before deciding to implement energy standards in a country, it is important to estimate the potential impact of the standards by quantifying their predicted environmental and monetary benefits.

37. Basic Elements Assessment of the technical potential of labels and standards will be based on data collected on the use of consumer products that describe: ■ current levels and forecasted trends for efficiency of products in the marketplace ■ specific new technology that has recently or will soon become available in the marketplace ■ existence and characteristics of domestically manufactured products ■ existence and characteristics of imported products ■ existence and levels of standards in other countries • This assessment will usually involve collecting and interpreting new local data. This process and the • evaluation of how much of the technical potential can be achieved and how much it will cost

39. Energy Efficiency Building code • National • Voluntary • Mandatory • Regional

40. PROPOSAL – MEXICAN GOVT • Energy Sector Assessment And Capacity Building For A Regional Energy Efficiency Appliance Labelling Programme • In context of C-SERMS • Baseline ans Targets

41. EXPECTED OUTPUTS •  The potential of energy efficiency labelling of appliances used in residential and small business facilities to provide energy saving in five selected Caribbean countries assessed, and recommendations for appropriate approaches to actualising the potential documented. The CARICOM Member States targeted are Guyana, Suriname, Jamaica, Belize, and Trinidad and Tobago.

42. EXPECTED OUTPUTS • A model Regional energy efficiency appliance labelling programme which can be applied across Member States developed; •  Energy efficiency appliance labelling programmes for selected CARICOM Member States: Guyana, Suriname, Jamaica, Belize, Trinidad & Tobago developed; • Technical Officers from Energy Ministries and other related agencies trained in the implementation of the appliance labelling programme; and