Barbados National Energy Policy 2019-2030

SECTION 1: INTRODUCTION 25 1.1 PURPOSE OF THE BARBADOS NATIONAL ENERGY POLICY (BNEP) (2019-2030) 26 What is the BNEP designed to achieve? 26 1.2 SECTION 1 OVERVIEW 26 1.3 BARBADOS ENERGY SECTOR- BRIEF DISCUSSION 26 Electricity 28 Solar Water Heaters 28 Solar PV 28 Wind Energy 28 Bio-energy 28 Natural Gas for Domestic Cooking and Industry 28 Transportation 29 Energy Efficiency 29 BREA 29 Energy Consumers 29 Petroleum 30 Barbados Energy Roadmap - Produced 30 by IRENA 3 TABLE OF CONTENTS cont’d 1.4 REGIONAL ENERGY CONTEXT AND ITS 31 4.2.1 Oil and Gas Supply Sector Objectives 66 INFLUENCE ON BARBADOS Policy Measures - Oil and Gas Supply 66 4.2.2 Renewable Energy Supply 67 1.5. INTERNATIONAL ENERGY CONTEXT AND ITS 32 Renewable Energy Supply Sector Objectives 69 INFLUENCE ON BARBADOS Sector Objectives Specific to Solar Energy 71 1.5.1 Economy 32 Sector Objectives Specific to Bio-energy 72 Expected Future International Energy Market 34 Sector Objectives Specific to Wind Energy 72 1.5.2 Climate Change 37 Energy Storage - Renewable Energy 72 1.5.3 Technology 37 Policy Measures - Renewable Energy Sector 74 and Storage 1.6 REGULATORY AND LEGISLATIVE CONTEXT 38 40 4.3 ENERGY EFFICIENCY AND 75 1.7 BARBADOS ENERGY CONSUMPTION AND ENERGY CONSERVATION DEMAND - SUMMARY CHARTS AND TABLES Energy Efficiency and Conservation Sector 76 1.7.1 National Energy Use 40 Specific Objectives 1.7.2 Electricity Generation 42 Policy Measures - Energy Efficiency 76 1.8 MULTI-CRITERIA APPROACH (MCA) 45 and Conservation 4.4 ELECTRICITY SECTOR 77

SECTION 2: PRELIMINARY ENERGY MIX TARGETS 47 Electricity Sector Specific Objectives 78 Policy Measures Electricity Supply 80 Energy Efficiency Target 49 The Natural Gas Factor 51 4.5 ENERGY AND TRANSPORTATION 80 Transport Sector Specific Objectives 81 Policy Measures Transport Sector 81

SECTION 3: VISION, GOALS, AND 53 OVERALL OBJECTIVES 4.6 ENERGY AND THE ENVIRONMENT 83 3.1 STRUCTURE 54 Energy and Environment Sector Objectives 84 3.2 CORE VALUES 57 Policy Measures -Energy and the Environment 84 3.3 VISIONARY GOALS 58 Climate Change 84 3.4 OVERALL OBJECTIVES 61 Climate Change Sector Specific Objectives 86 Policy Measures for Climate Change 86 Human Resources and Institutions: Capacity 86

SECTION 4: SECTOR SPECIFIC OBJECTIVES 63 and Development & MEASURES 4.7 HUMAN RESOURCES AND INSTITUTIONS - 87 4.1 INTRODUCTION 64 CAPACITY SPECIFIC OBJECTIVES 4.2 ENERGY SUPPLY 64 Policy Measures for Human Resources 88 Institutions: - Capacity and Development 4 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 4.8 ENERGY AND THE CROSS-CUTTING 89 SECTORS - OVERVIEW AND OBJECTIVES 4.8.1 Agriculture 90 Agriculture Sector Specific Objectives 90 4.8.2 Tourism 90 Tourism Sector Specific Objectives 91 Industry, Manufacturing and Construction 91 4.8.3 Manufacturing, Construction and Building Sector 91 Specific Objectives Key Policy Measures for the Waste 92 Management Sector 4.8.4 Waste Management Sector Specific Objectives 92 Water 92 Water Sector Specific Objectives 92 4.8.5 Health and Safety 92 Health and Safety and Environment Sector 93 Specific Objectives Disaster Management 93 Sector Specific Objectives - Disaster Management 95 Key Policy Measures - Cross Cutting Areas 95 4.12 IMPLEMENTATION, GOVERNANCE AND 99 REGULATORY FRAMEWORK 4.9 TRADE IN GOODS AND SERVICES WITHIN 96 Governance and Regulatory Framework Sector 103 THE ENERGY SECTOR Specific Objectives Trade in Energy Specific Objectives 96 Policy Measures - Governance and 103 Policy Measures - Energy Trade 96 Regulatory Framework 4.10 ENERGY ACCESS AND INFRASTRUCTURE 98 Energy Access and infrastructure Specific 98

SECTION 5: POLICY TARGETS & DEVELOPMENT 105 Sector Objectives OF IMPLEMENTATION PLAN Policy Measures for Energy Access 98 and Infrastructure SECTION 6: DEVELOPMENT OF INDICATORS & 109 MONITORING SYSTEM 4.11 ENERGY INVESTMENT AND FINANCING 98 Investment and Financing Sector Objectives 98 REFERENCES 124 Policy Measures Energy Investment 98 and Financing 5 List of TABLES Table 1: List of Main Indicators 23 Table 2: Total Fuel Consumption for Electricity 43 Production 2015 Table 3: Estimations of Installed Capacity 48 by Technology Table 4: Estimations of Installed Storage 49 Table 5: Main Indicators and Targets for BNEP 106 List of FIGURES Figure 1: Total Barrels of Oil Demand per Day 40 Figure 2: Demand by Energy Source 2006 to 2015 41 Figure 3: Fuel Inputs for Electricity Production 43 2015 Barbados Figure 4: Electricity Sales by Demand Group 44 Figure 5: Policy Inverted Pyramid 54 Figure 6: Summary Table of Vision Statement 59 and Visionary Goals Figure 7: Priority Geographical Areas for Renewable 100 Energy Deployment Figure 8: Source: Dr. Thomas Rogers, A Desktop 101 Study into the Wind Resource in Barbados, 2017 6 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 List of Acronyms BCC Barbados Community College kt Kilotonne BDS$ Barbados Dollar kW Kilowatt BFF Bridging Fossil Fuel kWh Kilowatt hours BL&P Barbados Light and Power Co. Ltd. LEED Leadership in Energy BNEP Barbados National Energy Policy and Environmental Design BNOC Barbados National Oil Company MCA Multi-Criteria Approach BOE Barrels of Oil Equivalent MMBTU Million British Thermal Units BOPD Barrels of Oil per Day MTBE Methyl Tertiary Butyl Ether BREA Barbados Renewable Energy MUS$ Millions of US Dollars Association BTU British Thermal Unit MWh Megawatt hours BWA Barbados Water Authority NDC Nationally Determined Contributions CIF Cost Insurance and Freight NGO Non-Governmental Organisation C-SERMS Caribbean Sustainable Energy NPC National Petroleum Corporation Roadmap and Strategy CARICOM OTEC Ocean Thermal Energy Conversion Caribbean Community PAM Policy Analysis Matrix MEWR Ministry of Energy and Water PPA Power Purchase Agreements Resources DRC Domestic PUB Public Utilities Board Resource Cost PV Photovoltaics EIA Energy Information Administration RER Renewable Energy Rider ELPA Electric Light and Power Act RFP Request for Proposals EU European Union SEFB Sustainable Energy Framework EV Electric Vehicle for Barbados FCA Fuel Clause Adjustment SIDS Small Island Developing States FOB Freight on Board SJPI Samuel Jackman Prescod Institute FTC Fair Trading Commission of Technology GDP Gross Domestic Product TCF Trillion Cubic Feet GWh Gigawatt hours TVET Technical Vocational Education IADB Inter-American Development Bank and Training IPCC Intergovernmental Panel on UNEP United Nations Environment Climate Change Programme IPP Independent Power Producer UWI University of the West Indies IRENA International Renewable Energy Agency WDA Woodbourne Development Area 7 FOREWORD exposure of volatile fossil fuel markets and has created a timeframe during which Barbados’ transition to a sustained Green Economy can and must be achieved. The Barbados National Energy Policy 2019-2030 through its set of visionary goals and objectives has fully endorsed the Government’s agenda and in this regard has as its vision: “Energy security and affordability through diversity and collaboration: Establishing and maintaining a sustainable energy sector for Barbados.” The Barbados National Energy Policy establishes a comprehensive policy for Barbados in areas relating to the supply and consumption of energy across all associated sectors. It was developed using a collaborative approach, which included several rounds of interviews, stakeholders meetings and consultations throughout Barbados’ energy sector. All views were It is with great pleasure that I present the Barbados considered. The policy also benefitted from the National Energy Policy 2019-2030. This revolutionary consideration of extensive research of regional and policy will see the transformation of Barbados from international jurisdictions that have experienced both a petroleum based economy to the first green, 100% challenges and opportunities in their transition to a renewable energy and carbon neutral island state in sustainable energy sector. the world. This initiative will build a sustainable energy sector based on the use of renewable energy, energy The key approach used in developing the policy was efficiency and conservation with the export of fossil a Multi-Criteria Approach (MCA), where the impact fuels found either onshore or offshore, to assist in the of the policies chosen were taken from as wide- development of this new paradigm. ranging a perspective as possible. This meant that the cross-cutting nature of the sector was highlighted We are cognizant of the fact that fossil fuels dominate and the often competing interests relating to finance, Barbados’ current energy mix, as over 90% of the economics, the natural environment, technology and energy used for electricity production in Barbados is social development were considered and consolidated. derived from carbon based fuels which is a drain on foreign exchange resources. In addition, the volatility The ambitious Barbados National Energy Policy has in pricing associated with these products exposes crafted a course of action to safeguard the responsible the economy to exogenous shocks which adversely exploration and production of fossil fuels both onshore impacts the competitiveness and economic resilience and offshore, which will be exported and some of of the country. The Government has therefore taken the proceeds used to further develop the island’s the decision to totally transform the economy of sustainable energy sector. Barbados through the de-risking of its direct link to the 8 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 “ Energy security and affordability through diversity and collaboration: Establishing and maintaining a sustainable energy sector for Barbados. As we embark upon this new journey, let us be ever mindful that we have set in train an energy revolution that will enrich the lives of all Barbadians and inspire others around the world. The Barbados National Energy Policy presents to us a course of action, that once implemented will result in a diverse sector where energy is reliably produced, efficiently consumed and makes a tangible contribution, however minute, to climate mitigation. This policy at its core seeks to ensure that energy is affordable to all, while powering our society on the basis of collaboration. Our task is therefore not only to produce energy but to do so in a manner which enfranchises the population by creating a market for the wealth generated to be spread and remain on- shore. We must therefore as a Small Island Developing State strive to realise the goals of this policy work and recognise that the sole responsibility for its failure or success lies with us. I wish to express my heartfelt gratitude to all the stakeholders who made contributions to the development of this policy and to the staff of the Ministry of Energy and Water Resources for their tireless efforts in this regard. This is a “big deal”; the realisation of which will define our future. 9 10 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 DIVISION OF ENERGY TEAM 11 12 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 EXECUTIVE SUMMARY 13 EXECUTIVE SUMMARY This Barbados National Energy Policy (BNEP) 2019-2030 cross-cutting nature of the sector was highlighted document is designed to achieve the 100% renewable and issues related to finance, economics, the natural energy and carbon neutral island- state transformational environment, technology and social development were goals by 2030. These include: considered in a consolidated manner. • Provision of reliable, safe, affordable, sustainable, The BNEP spans all aspects of the energy sector, modern and climate friendly energy services to all and provides a framework for moving the island residents and visitors. from a fossil fuel based economy to one completely based on renewable energy sources. The policy • Zero domestic consumption of fossil fuels provides direction for managing this revolutionary economy wide. transformation and ensuring viability from all points of view along the way. • Export of all hydrocarbons produced both on land and offshore. There is reason for optimism in Barbados’ bold embrace of renewable energy technology, as it builds • Maximising local participation (individual and on its reputation of being a leader in the Caribbean corporate) in distributed renewable energy and the western hemisphere. Indeed, the success of (RE) generation and storage (democratisation the solar water heating industry is a source of pride for of energy). the country, the recent development of the local solar photovoltaic (PV) industry and the burgeoning electric • Minimise the outflow of foreign exchange. vehicle market in Barbados are also encouraging. The BNEP provides a basis for building on these successes • Creating a regional centre of excellence in while seeking to expand the use of these and other RE research and development. renewable energy technologies such as wind and biofuels. The BNEP builds on efforts of previous projects and activities to establish a comprehensive policy However, even as Barbados promotes the development for Barbados in areas relating to the supply and of renewable energy, there are ongoing plans to consumption of energy across all associated sectors. It explore for fossil fuel resources offshore. This was developed using a collaborative approach, which patrimony will be pursued aggressively with the view included several rounds of interviews and consultations to maximise foreign exchange gains from the export of throughout Barbados’ energy sector in 2016 and 2017, any exploited hydrocarbons. as well stakeholder meetings in 2018. The policy also benefitted from the consideration of research and Recognising the importance of the prudent use of documented accounts of regional and international energy resources as a way to ensuring sustainability jurisdictions that have experienced both challenges and a thriving economy, the BNEP also highlights the and opportunities. importance of energy efficiency throughout the various sectors and subsectors in the industry. The key approach used in developing the BNEP was a Multi-Criteria Approach (MCA), where the impacts of the policies chosen were taken from as wide-ranging a perspective as possible. This meant that the 14 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Major sectors of the energy economy that were identified inter alia in completing the BNEP were the following: • Oil and Gas Supply • Renewable Energy Supply • Energy Efficiency and Conservation • Electricity • Transportation • Environment • Human Resources • Health and Safety • Trade • Governance and Regulation • Other Cross-Cutting Sectors. This MCA deviated to some extent from previous approaches where the least cost approach was more dominant. It was thought that in considering these sometimes conflicting elements of development, a number of core values for energy development in Barbados had to be identified. While these core values were not ranked, they clarified some of the priorities to be considered in making the decisions. The values formed the basis of the Vision Statement and Visionary Goals discussed later. 15 Core Values The Core Values identified were: • Economic enfranchisement – ensuring the average Barbadian can participate and benefit equitably in the new energy paradigm • Environmental responsibility - elimination of Barbados’ carbon footprint • Stability - price, regulatory, technical • Reliability - including continued access to energy • Efficiency in the production and consumption of all energy resources • Diversity - reduction of vulnerability through use of multiple sources • Ownership of business - opportunities for local investment that minimise the outflow of foreign exchange • Maximum use of indigenous energy resources • Maximum level of collaboration • Multidisciplinary cross-cutting approach • Systematic development of the energy sector based on renewable energy • Education, awareness and capacity building • Environmental protection and ecology, especially in connection with climate change and public health • Innovation - develop Barbados as a centre of excellence for research and development in renewable energy From these analyses the following Vision Statement and Visionary Goals were developed for Barbados. 16 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 BNEP Vision STATEMENT “ Energy security and affordability through diversity and “ collaboration: Establishing and maintaining a sustainable energy sector for Barbados. 17 An energy sector that offers a diversity of sustainable energy options... 18 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 19 Visionary Goals: Overall Objectives Visionary Goal 1: An energy sector that offers From these Visionary Goals, the following Overall a diversity of sustainable energy options, with a Objectives were developed for the energy sector. trajectory to achieve 100% Renewable Energy by 2030 (core value - diversity). Overall Objective 1: Increasing the amount of renewable energy sources used in the energy mix Visionary Goal 2: An energy sector where to 100% (related to Visionary Goal 1). consumption and production of energy resources occur with the maximum level of efficiency feasible Overall Objective 2: Achieving affordability and access (core value - efficiency). to all classes of consumers in energy products and services (related to Visionary Goal 3). Visionary Goal 3: An energy sector that offers basic energy products and services that are affordable to Overall Objective 3: Achieving stability and local citizens (core value - affordability). predictability in energy product prices over the long term (related to Visionary Goal 3). Visionary Goal 4: An energy sector that offers continuous and reliable supply of energy Overall Objective 4: Establishing a consistent and (core value - reliability). comprehensive legislative and regulatory framework to govern activities in various energy sub-sectors (related Visionary Goal 5: An energy sector that offers to Visionary Goal 8). opportunities for development of human capacity and collaboration (core value - capacity and collaboration). Overall Objective 5: Increasing diversity in the types of energy sources used within the energy sector (related Visionary Goal 6: An energy sector that offers to Visionary Goal 1). significant opportunities for local entrepreneurship and international investment (core value - Overall Objective 6: Increasing the extent of entrepreneurship). renewable energy resources used in Barbados that are obtained from indigenous sources Visionary Goal 7: An energy sector that minimises (related to Visionary Goal 6). the environmental impacts and contribution to global climate change (core value - environment). Overall Objective 7: Encouraging local investment in energy projects and programmes in Barbados, Visionary Goal 8: An energy sector that is governed with a view to increasing the number of shareholders by sound management and clear legal regulatory and players in the various energy sub-sectors frameworks (core value - regulation). (related to Visionary Goal 6). Visionary Goal 9: An energy sector that positions Overall Objective 8: Promoting more local Barbados as a centre of excellence for innovation, entrepreneurial activities in renewable energy and research and development in renewable energy increasing fossil fuel energy development for export (core value - innovation). throughout the energy sub-sectors (related to Visionary Goal 6). Visionary Goal 10: An energy sector that provides opportunities for all Barbadians (including the most Overall Objective 9: Increasing collaboration within vulnerable to the impacts of climate change) to the energy sub-sectors and among the cross-cutting participate in and benefit from the transformation sectors that have an impact on energy supply or to 100% RE (core value - equity). consumption (related to Visionary Goal 5). 20 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Overall Objective 10: Improving the efficiency in the These Overall Objectives were used as the basis for production and consumption of energy products within Specific Sector Objectives within the different sectors, the various sub-sectors (related to Visionary Goal 2). some of which were identified above. The discussion and list of Specific Sector Objectives are included in Overall Objective 11: Improving the awareness and the main document. understanding of energy production and consumption, its impacts and the associated environmental and The Specific Sector Objectives were used as the basis socio-economic consequences within all sections of some suggested measures also included in the main of the public (related to Visionary Goal 5). document. These measures will be expanded in the development of the Implementation Plan, which is Overall Objective 12: Increasing the number of expected to emerge as the next stage of the work persons locally with qualifications and skills relating to after the completion of the BNEP. energy production and management of renewable and fossil fuel sources (related to Visionary Goal 5). Overall Objective 13: Reducing the environmental impacts associated with the production and consumption of energy resources locally (related to Visionary Goal 7). Overall Objective 14: Ensuring reliability and continuity of energy supply in the various local energy subsectors (related to Visionary Goals 4). Overall Objective 15: Attaining the lowest price sustainable by the local economy for various energy sources consumed in Barbados, while maintaining environmental efficiency (related to Visionary Goal 3). Overall Objective 16: Establishing effective partnerships between national and international entities for local energy projects (related to Visionary Goal 6). Overall Objective 17: Establishing effective systems to support a hub for research and development in renewable energy (related to Visionary Goal 9). Overall Objective 18: Maximise the use of small scale distributed generation within the energy mix (related to Visionary Goal 10). 21 During the planning horizon (2019 to 2030) there Target Energy Mix will still be economic activities such as construction, cruise tourism, air transport and fisheries which may The BNEP used a planning horizon of 11 years not be technologically possible to power completely (2019-2030), and assessed current activities and by renewable energy. It is also noted that there are projections in energy use for Barbados to develop currently approximately 22,000 local consumers of targets in percentage mix for energy use in GWh. natural gas and the network is likely to be expanded. These targets were set more as a basis for discussion It is the Government’s policy to phase out local than as absolute goals. They generated much debate consumption of natural gas by 2030, replacing throughout the consultation process and are expected natural gas with an appropriate renewable fuel(s). to be reviewed and modified if necessary within the timeframe. The above fossil fuel reduction targets can be stated as increased production of energy from renewable Targets can be viewed as minimum levels to be energy targets for electricity generation where obtained. However, if stakeholders are able to exceed feasible. The targets below are expressed in terms the targets, this would be desirable, especially if of renewable energy. they improve financial, environmental, economic or technological performance. The proposed target mix is anticipated to result in an annual total energy savings of $400 - $800 million per year at current market prices. The discounted social profit or benefit to Barbados is estimated at $3.9 billion annually from the removal of fossil fuels. In order to achieve the above benefits the heavy fossil fuel reductions required are: 49% 100% fossil fuel fossil fuel reduction by 2023 reduction by 2030 52% 100% Increase in Increase in renewable renewable energy energy by 2023 by 2023 In this approach, factors including economic deficits, level of taxation, GDP, oil prices, and costs of tradeable and non-tradeable goods were considered. The indicators below are among those that will be used to monitor the performance of the energy sector over the planning horizon: 22 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Name of Indicator (Units) Baseline (2015) Aggregate Energy Intensity (BOE/MUS$) 324 Total Energy Consumption per Capita (BOE/Persons) 5.03 Percent Share of Renewable Energy of Total Energy (%) 2 CO2 Emissions/Final Consumption (kt/BOE) 0.0029 Total No. of Persons Employed in the Energy Sector (No.) N/A Electricity Generation Efficiency (%) 37 Percent of electric vehicles (%) 0 Percentage of distributed generation (%) 2 Percent Share of Renewable Energy Investment of Total GDP (%) 0.6 Table 1: List of Main Indicators Establishing the appropriate indicators is critical in It is important to note that the Implementation Plan determining an effective system of monitoring that will will not only develop indicators and targets, but it will allow the BNEP to be updated and revised on a timely also identify more specific programmes, determine basis for continuous improvement. It is expected that strategies and assign the roles and responsibilities to the government will work with members within the various groups, organisations and agencies to achieve different sectors to develop the Implementation Plan. these objectives. There will also be an assessment of resources needed for various actions, and some The recently developed NGO, Barbados Renewable suggestions of funding options for consideration. Energy Association (BREA), is expected to play a role in the area of renewable energy development and energy efficiency, advocating on behalf of the energy sector. Other stakeholders likely to be involved will include The Barbados Light & Power Co. Ltd. (BL&P), the Barbados National Oil Co. (BNOC), the Fair Trading Commission (FTC), the Barbados National Standards, Government Electrical and Engineering Department, various government ministries in energy and other cross-cutting sectors. 23 “ Over the years, Barbados has sought to maintain an energy sector where energy resources are universally available at reasonable prices. 24 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030

SECTION 1 INTRODUCTION 25 INTRODUCTION change. It is recommended that a policy review be 1.1 Purpose of the Barbados National undertaken at least once every five years. Modifications Energy Policy (BNEP) (2019-2030) to policy recommendations are not only possible, but expected. The BNEP was developed to provide clear direction to the government in the short, medium and long term, for the development of renewable and non-renewable aspects of energy. Issues related to energy production, energy consumption and energy efficiency are considered 1.2 Section 1 Overview and addressed. This first section discusses the Barbados energy sector, What is the BNEP designed to achieve? highlighting achievements, activities and challenges The BNEP is intended to provide a framework to guide up to 2017. The section also provides an assessment decision making with regard to energy development of likely present and future influencing factors on the in Barbados. At the outset, it defines a broad Vision sector from a regional and international perspective. Statement followed by Visionary Goals and Overall The legislative and regulatory framework that governs Objectives up to 2030. Later in the document, specific activities within the energy sector in Barbados is then objectives under the various sub-sectors are identified. presented within the context of information emerging There are also some recommended measures that are from these factors. expected to play a role in achieving the goals identified. Charts detailing the current energy mix and associated It is important to note that the BNEP is NOT designed costs are presented, as is a description of the Multi- to prescribe specific, detailed actions to be taken Criteria Approach (MCA), which is used as the in any of the sub-sectors identified. It also does not underlying approach for developing the BNEP. determine specific targets within the various sub-sectors, strategies needed within the sector, or specific roles and The section sets the context for the Objectives and responsibilities of individuals or agencies that are required Targets outlined later in the document. to achieve its stated goals and objectives. All these aspects are undeniably important if the BNEP is to be effective, but it is expected that these will be explored in more detail in the Implementation Plan, 1.3 Barbados Energy Sector - which will be developed as a follow-up to this document. Brief Discussion Nonetheless, the BNEP suggests some sector-wide Over the years, Barbados has sought to maintain an targets for energy mix based on the Ministry of Energy energy sector where energy resources are universally and Water Resources (MEWR) data, highlighting the available at reasonable prices. availability and cost of various energy sources. The island can be proud of the fact that there is The policy’s 11-year planning horizon allows for the virtually 100% access to electricity and that gradually, assessment of long- term scenarios and impacts, with more sustainable forms of energy were being frequent reviews of the document as circumstances integrated into the energy mix in terms of electricity 26 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 delivery and other energy services. However, the main fuel for electricity generation remains Bunker “C” heavy fuel oil and the main fuels for transportation remain diesel and gasoline. The rate of transformation to RE in both the electricity generation and transport sectors must be aggressively accelerated to meet the 2030 Vision. The island can be proud of the fact that there is virtually 100% access to electricity and that gradually, more sustainable forms of energy were being integrated into the energy mix in terms of electricity delivery and other energy services. 27 Electricity farm. The government has set a distributed generation The island’s electric utility, The Barbados Light & target of having at least 35,000 buildings with rooftop Power Co. Ltd. (BL&P), established in 1899, was one of or ground-mounted solar PV systems that are resilient the earliest in the Caribbean. It is a vertically integrated to extreme wind events (e.g. Category 4 Hurricanes). monopoly, regulated by the Fair Trading Commission (FTC), and is now totally owned by Emera Inc., a Wind Energy Canadian based company. Their existing license, which While wind energy has not taken off significantly, was gained in 1986, allows BL&P to have the sole there are plans to develop this technology to franchise to sell electricity in Barbados up to 2028. complement existing solar installations. BL&P continues to investigate the possibility of establishing Given the planning horizon of the BNEP, the issue of a wind farm in Lambert’s, St. Lucy alongside the extension of the license or a change in the structure existing PV farm there. of the electricity market will need to be addressed as this policy goes into implementation. We discuss later Bio-energy how changes in technology towards more renewable Also, in light of a declining sugar cane industry on the decentralised forms of energy may necessitate a island, there is increasing confidence in the agricultural change in the structure of the industry. However, sector that there can be greater use of biomass and details on the electricity industry and opportunities for biogas in the energy sector. Bagasse has, at times, competition or new business models are outside the been used to generate energy in the sugar cane scope of the BNEP. industry and there is considerable interest in building on this experience, with some farmers considering Solar Water Heaters switching to high fibre canes to produce biomass Starting in 1974, in the midst of the international oil rather than sugar. crisis, Barbados invested in the area of solar water heating, and that industry now stands out like a beacon Natural Gas for Domestic Cooking and Industry of success in the Caribbean. A series of government The National Petroleum Corporation (NPC) currently economic incentives and tax write-offs coupled with has approximately 22,000 customers of which strong entrepreneurship shown by early developers, approximately 1,000 are commercial entities. There is led to significant growth of the industry. There are continued demand for piped natural gas for cooking local companies that now export to the rest of the as an alternative to liquified petroleum gas (LPG) Caribbean and even further afield. Indeed, Barbados influenced by the current pricing mechanism for is one of the leading countries for solar water heaters natural gas and convenience. Similarly, industries use per capita, both in the western hemisphere and natural gas as the fuel source for their boilers. Current the world. demand for natural gas is approximately 1.7 million cubic feet per day (approximately half of which is now Barbados, having established itself as a regional leader imported as domestic supply has declined). It is noted in renewable energy through its success in solar water that the NPC plans to expand the natural gas distribution heating, seeks to build on that reputation by achieving network. To achieve the 2030 Vision of zero fossil fuel similar success in developing other renewable energy consumption domestically, it will be necessary to switch technologies. However, while there have been some from piped natural gas to a piped biogas if the distribution successes, there is still much more that can be done on network is not to become a stranded asset. the island to achieve the desired level of sustainability. In the new energy scenario, with a significant Solar PV amount of distributed rooftop solar PV and battery Recent efforts in securing a more sustainable energy storage, widespread use of electric vehicles and mix provide reason for optimism. The establishment of the discontinuation of the use of natural gas, it is photovoltaic projects throughout the island in the last anticipated that consumers (households currently five years has led to many new players either getting using natural gas or LPG) may switch to energy involved or expanding in the market. The local utility efficient, modern electric stoves. has also played its part by establishing a 10 MW solar 28 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 While the use of solar water heaters for hot water only Energy Efficiency contribute a small percentage of energy in the overall Efforts in Barbados have not been limited to energy energy mix, there is no doubt that this industry has production. In the area of energy conservation and made a significant social impact at a household level. energy efficiency, there have also been projects This signals to consumers that it is possible to achieve designed to retrofit incandescent and fluorescent environmental sustainability in energy use, while at the lights with LEDs. Moreover, efforts are ongoing to same time achieving economic benefits. establish and implement efficiency standards for buildings, refrigeration and air conditioners. Transportation Barbados is already a leader in the region with over BREA 300 electric vehicles on the road. However, this is Interest in pursuing renewable energy development a small percentage of the approximately 100,000 further has been such that a NGO, the Barbados vehicles on the island. The 2030 Vision calls for the Renewable Energy Association (BREA), was elimination of the use of diesel and gasoline for local established within the last eight years. BREA was transport over the next decade. This will require either created to advocate for the use of renewable energy, retrofitting of the existing fleet and/or restricting the and facilitate the continued growth of the industry. The importation of conventional vehicles and incentivising advocacy and research roles of NGOs will be critical to the importation of electric and alternative renewable achieving the 2030 Vision. fuel vehicles. Additionally, a much more efficient mass transit system will be required. A reliable charging Energy Consumers station infrastructure will need to be rapidly developed Apart from efforts made at the domestic and the to provide consumer confidence along with training of individual entrepreneurship levels, large consumers of a cadre of technicians to install, operate and maintain electricity have also begun to address sustainability the new green transportation technologies. through self-generation or developing large-scale renewable energy projects for themselves. The While there is still a lot to be done to establish Barbados Water Authority (BWA) is one such entity suitable infrastructure for increased use of EVs and that has been exploring that option. other vehicles powered by alternative fuels, the local petroleum companies appear open to facilitating the change as long as the costs for such transitions can be done in the most equitable manner feasible. 29 Petroleum The draft roadmap considers future scenarios with Meanwhile, even as there are considerable efforts increased energy efficiency on the demand customer to develop renewable energy projects and improve side, a low oil price scenario, and a scenario where a energy efficiency in the sector, there are continued greater number of electric vehicles are imported. All of efforts to gain more fossil fuel resources through this is considered within the context of the government’s government’s drilling and exploration exercises intended Nationally Determined Contributions (NDC) offshore. The possibility of a significant oil or gas emerging from the Paris Agreement in 2015. This NDC find could potentially lead to considerable economic sets a goal of 65% of electricity generation to be produced benefits for Barbados when used for export. Any such from renewable sources by 2030. The NDC will be revised fossil fuel resource should be developed in a way to reflect the new 100% RE, economy wide, goal. that it does not affect the overall trajectory to the sustainability of the entire energy sector. Although the BNEP attempts to give direction for the Implementation Plan and activities in the various Barbados Energy Roadmap - Produced by IRENA sectors, there was need for a level of flexibility to allow During the development of the BNEP, the Ministry of for the assessment and evaluation of technologies Energy and Water Resources (MEWR) also engaged not yet considered viable, but that may become major the International Renewable Energy Agency (IRENA) players in the future. to develop a daft Renewable Energy Roadmap for Barbados. The BNEP therefore is designed to focus on the ‘how’ rather than the ‘what’ with respect to energy sector IRENA’s study focused largely on the electricity sector development. and the possibilities for greater efficiency, as well as an increased use of renewable energy. That draft roadmap In addition to the focus on flexibility, it is recognised identified the following goals as part of the Barbados that the BNEP will need to be considered in the Government’s vision. context of broader economic policy documents in other sub-sectors of the Barbados Government. This An energy sector that: will include policies such as the industrial policy, the trade policy, the transport policy and the disaster • Enhances economic growth by reducing management policy. energy costs. It is also expected that the BNEP will help in giving • Improves energy security by reducing further guidance and streamline existing processes. dependency on imported fossil fuels. • Reduces cost of energy service for consumers. • Reduces investments needed for power generation by promoting energy efficiency and conservation. • Reduces the emission of greenhouse gases and local pollutants from fossil fuels. The economic, environmental and social goals identified in their study are in keeping with the goals identified through the analysis of the Barbados energy sector in developing this policy. The BNEP’s goals are consistent with many of the goals presented in the roadmap and provide a framework for further actions that can be developed from it. 30 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 (c) optimisation of domestic production of energy 1.4 Regional Energy Context and its in an environmentally sound manner; and Influence on Barbados (d) facilitation of the growth of internationally The Caribbean Community (CARICOM) encompasses competitive regional industries. twenty countries in the Caribbean region focusing on “economic integration; foreign policy coordination; These goals are similar to some of the core values of the human and social development; and security” BNEP that are discussed in the next section. (CARICOM, 2016). CARICOM seeks to safeguard each member’s access to clean, reliable, affordable Regional integration with other Caribbean countries and stable energy and also aids the progression of is an option for meeting future energy supply needs comparable regional industries. (regional projects, sharing of research and development, harmonisation of policies, laws etc.). However, there are Within the Caribbean, the energy context is dictated distinct challenges in the coordination of relevant policies, by the international energy market, as fossil fuels strategies and plans. There are also issues pertaining to account for 80% of the primary energy supply. Other the unavailability of timely and relevant data, pricing and major resources of energy within the region are hydro, the increasing international demand for petroleum, rising solar, wind, biomass and geothermal. The Caribbean petroleum prices, and the security of supplies for regional Community has established targets of 47% reduction in trade (CARICOM Energy Policy, 2013). fossil fuel use by 2027 (C-SERMS). “ The CARICOM Energy Policy (2013) is a wide-ranging framework document that considers issues of energy production and consumption (both renewable and non-renewable programmes) from a regional perspective. The issue of trade between territories and the impacts of programmes such as Petro Caribe are discussed in this policy. However, it should be noted that Barbados was fossil fuels not a signatory to the Petro Caribe agreement. The main goals of the CARICOM Energy Policy are: account for 80% (a) provision of sustainable and secure supplies of energy, accessible to all CARICOM citizens; (b) fundamental transformation of the energy sectors of the Member States of the Community so that they can contribute to the sustainable development of the Community; of the primary energy supply. Other major resources of energy within the region are hydro, solar, wind, biomass and geothermal. 31 Small Island Developing States (SIDS) such as 1.5. International Energy Context and Barbados are especially vulnerable to international its Influence on Barbados factors, mainly because of their remoteness, lack of economic diversification and high reliance on international imports. 1.5.1 Economy International oil prices have an impact on short and The state of the international or global economy medium term renewable energy development. Higher can impact the economic performance of Barbados oil prices often result in greater local interest in and affect attitudes to spending and investments. renewable energy development to offset the high cost Over the last eight years, the international economy of energy from fossil fuels. experienced contraction and low growth in some major industrialised countries. The global economy, according For example, as oil prices soared to $147 per barrel to the United Nations, grew at a slower pace of 1.8% in 2008 (far above the long-run average of $45 over the period 2008 to 2015. During the last 8 to 10 per barrel), there was considerable interest in the years, the global economy was characterised by: development of renewable energy technologies throughout the Caribbean, to mitigate the impact of • A financial debt crisis. the higher cost of energy from fossil fuels. In 2010, the Renewable Energy Rider (RER) was introduced • High and escalating oil prices. and this led to a substantial increase in the number of solar photovoltaic (PV) installations. During the • Declining and low interest rates. period 2013 to 2015, PV installations expanded five-fold, moving capacity from 1.6 megawatts to 9MW • High liquidity in the banking sector. (Investigation of Likely Reactions to the Removal of Green Energy Incentives – Antilles Economics 2016). • Weak demand for goods and services. The expansion of PV installations benefited in large • Fluctuating employment. measure from the facilitation of the RER, and the fiscal incentives implemented in 2013 to support the use The global economy is comprised of countries and of renewable energy in electricity supply by homes trading blocs that are recovering, as well as those that and businesses (Investigation of Likely Reactions to continue to grapple with economic uncertainty. The the Removal of Green Energy Incentives – Antilles USA, for example, employed monetary policies such as Economics 2016). This proved to be a good incentive quantitative easing to address its debt problem, while for the development and installation of PV and other the European Union (EU) initially used austerity but renewable energy technologies. However, as oil prices with limited success. However, the EU has engaged its have fallen, the BL&P’s Fuel Clause Adjustment (FCA) own brand of quantitative easing, which has resulted has also been reduced, resulting in considerably less in some stabilization in employment, inflation, and incentive for new individuals to start generating GDP. Other countries whose economies are based electricity to sell to the grid through renewable on commodities, especially those based on oil, energy technologies. Meanwhile, higher oil prices experienced economic contraction beginning in 2014. internationally also increased the incentive to explore and extract petroleum resources that may be more China, which operates a planned (not market driven) costly to produce. economy, has engaged in a controlled decline of economic output of 7%. This controlled decline has One of the main aspects of the BNEP and the resulted in decline in other markets, and in commodity Implementation Plan that will follow, is to ensure based economies in particular. It is expected that global that the incentives for renewable energy generation economic growth will continue to be uneven over the remains high at times when oil prices are both high and next decade. low. There will also be a need to ensure that Barbados is able to take advantage of onshore and offshore petroleum resources when prices on the international market are favourable totheir development. 32 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 33 Expected Future International Energy Market The increased consumption in global energy is Given that Barbados currently remains a net expected to be driven by increased economic growth importer of petroleum products, it is a price taker. in the developing and emerging economies. Indeed, Therefore an understanding of oil price forecasts the International Energy Outlook 2016 has projected in the short-term and the long-term can help to that the world’s GDP, adjusted for purchasing power, inform appropriate courses of action by policy will increase at an annual rate of 3.3%. Furthermore, makers. According to the U.S. Energy Information the Outlook projects that economic growth in the Administration (EIA), it is expected that global energy developing and emerging economies will expand on consumption will continue on its upward trend over average by 4.2% per annum. the next thirty years. This view of future demand is driven by the conclusion that economies such as The International Energy Outlook 2016 further China and India will account for more than half of indicates that its expectation is for increased the world’s total increase in energy by 2040. The consumption across all the major energy sources. International Energy Outlook 2016 as presented by the Interestingly, the Outlook points to renewable energy EIA, projects that by 2040 global energy consumption sources being the fastest growing energy source will increase by 48% from 549 quadrillion BTUs (99.2 for the period up to 2040, with consumption of this billion barrels of oil) to 815 quadrillion BTUs (147.2 resource growing at an annual rate of 2.6%. The view billion barrels of oil). It is further anticipated that much of the International Energy Outlook 2016 is that of the increased consumption of global energy will be nuclear power will be the second- fastest growing derived from the developing and emerging economies, energy source by 2040, expanding at an annual rate which are expected to register an increase in energy of 2.3%. The long term international consumption of consumption of 71% by 2040. natural gas is expected to increase at a rate of 1.9% 34 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 per year where annual consumption is forecasted to The previous target for renewable energy consumption be approximately 203 TCF by 2040. According to the was that 29% of its electricity consumption was to be US Energy Information Administration – International supplied by renewable energy by 2029 (Draft Energy Energy Outlook 2016, natural gas is an important Policy, 2013). The long-term energy price outlook fuel in the production of electricity. This is the case, for Barbados will be influenced by the global price as natural gas is viewed as an attractive fuel source of energy on the one hand, and its ability to move because of its fuel efficiency. Consequently, several away significantly from fossil-based consumption on governments worldwide, as a means of reducing CO2 the other hand. One of the fundamental constraints emissions, promoted the use of natural gas to displace to moving towards more renewable energy sources the more carbon-intensive fuels. To meet the expected is government’s heavy reliance on the revenue growing demand, world producers are projected to derived from fossil fuel consumption. Indeed, this is a increase natural gas supplies by an estimated 69% paradox because fossil fuel consumption contributes by 2040. Although consumption of non-fossil fuels is significantly to the loss of the national resource. expected to grow at a faster rate than fossil fuel, the Therefore, as Barbados moves towards elimination of Outlook projects that fossil fuel will account for 78% fossil fuel use by 2030, the Government of Barbados of energy use by 2040. must overcome its dependence on such sources for revenue. This will be one of the key issues to be Volatility in oil prices is expected to continue, thereby addressed in determining the measures and strategies contributing to uncertainty within the energy sector in the Implementation Plan which follows the in the future. If expectations for future consumption BNEP and for the long-term energy development within the developing and emerging economies hold of Barbados. true, the follow-on would be significant increases in oil prices. However, a countervailing factor to this “ view is that renewable energy is projected to hold more prominence within the energy market and will be a constraining factor on energy prices. The International Energy Outlook 2016 proffers a reference oil price forecast of US$141.00 per barrel for the period up to 2040. Of course, this forecast may vary and, consequently, the Outlook points to a minimum price of US$76.00 per barrel and a maximum oil price The increased consumption in global of US$252.00 per barrel in the long-run. However, international oil prices are expected to fluctuate between US$20.00 to US$52.00 in the short to medium terms, with some occasions where there may be breaches of these support and resistance boundaries. energy is expected to Over the last ten years, Barbados faced significant be driven by increased constraints, which led to weak economic performance where average Gross Domestic Product registered flat growth (Barbados Economic Report, 2015). economic growth in Additionally, Barbados has been grappling with high fiscal deficits. For example, the fiscal deficit as a percentage of GDP was 11.8% in 2013. Rising debt has the developing and emerging economies. also presented a significant challenge to Barbados over the last ten (10) years in terms of its unemployment rate. This unemployment rate has hovered between 10% and 12%. The economic challenges that Barbados faced over the last ten years have been observed through several credit downgrades by international agencies. These downgrades have had a negative impact on the cost of debt to the Barbados Government and the private sector. 35 36 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 “ 1.5.2 Climate Change In seeking to develop the BNEP, it was important to examine Barbados in the regional and international context, including its position as one of the group of countries known as Small Island Developing States (SIDS). effects such as higher Barbados, as a SIDS, is vulnerable to international frequency of extreme and regional trends and momentary shocks that can affect technology, resource availability and the pricing of energy products. Barbados and other Caribbean weather events, rising Community (CARICOM) members face challenges with regard to climate change. These impacts can be felt through effects such as higher frequency of extreme sea levels, destruction weather events, rising sea levels, destruction of coastlines and inundation of ground water. Generally, small islands lack the natural and financial resources of coastlines and to alleviate these ongoing challenges (UN 2015). “Due to their size and location, Caribbean SIDS inundation of ground are particularly susceptible to the impacts of climate change. As developing economies relying water. Generally, small on sectors vulnerable to climate patterns such as tourism, agriculture and fishing, Caribbean nations would be greatly affected by the ongoing islands lack the natural rise in sea levels, changes in rain patterns and temperatures, and increasing intensity of natural disasters identified by the Intergovernmental Panel and financial resources on Climate Change (IPCC).” (IADB, 2016) These types of impacts can have a profound effect on to alleviate these ongoing the economy, and are caused largely by carbon dioxide emissions related to the combustion of fossil fuels. The economic consequence of fossil fuel consumption challenges (UN 2015) in Barbados is that there is a loss of resources through foreign exchange, efficiency and environmental costs. develop schemes to reduce carbon dioxide emissions Analysis indicates that under a business-as–usual worldwide. Carbon trading schemes such as the scenario, the Barbados economy is likely to lose Clean Development Mechanism, have provided some on average $0.64 for every dollar of benefit it funding opportunities for Caribbean islands to develop receives from the supply and consumption of renewable energy and energy efficiency projects. fossil fuel (MEWR). Barbados is energy import-dependent and relies on trade to meet its energy needs. Consequently, a 1.5.3 Technology momentary disruption or trade imbalance can lead to uncertainty in access to energy as prices fluctuate on The development of technology to more easily extract the world market. petroleum resources or to use renewable resources more efficiently and at a lower cost, can increase the A way of mitigating these impacts is to reduce the economic viability of activities in the energy sector. volume of carbon dioxide emissions by increasing the This can result in more attractive costs to investors use of renewable energy technologies or investing with lower payback times. Additionally, improvements more in energy efficiency. Over the years, there in energy storage technologies improve the stability have been attempts at the international level to and reliability of renewable energy technologies. 37 There have been developments in technology worldwide that have affected energy development within Barbados and the Caribbean. For example, the development of fracking as a means of extracting natural gas reserves has increased the availability of this particular commodity worldwide, and costs have been reduced as a result. Therefore, some traditional natural gas producers, such as Trinidad and Tobago, have lost market share in locations such as the US. Also, there has been greater incentive to look for markets in the Caribbean, including Barbados, to purchase this natural gas. Developments in renewable energy technologies such as wind and solar have also led to reduction in prices per kilowatt hour in recent years. This increased economic viability of many renewable energy technologies, has led to growth in the industries worldwide, as investors and IPPs can now have lower payback times and higher rates of return for their investments. Barbados and Caribbean islands, with INTERNATIONAL BARBADOS their high resource availability of wind and solar Tecnologies New tecnologies energy, and comparatively high cost of conventional Fracking In Pvs Solar Energy fossil fuels, have become more attractive to investors in renewable energy technologies in various parts of the world. In Barbados, solar electricity from PVs is the renewable energy technology that is growing to the greatest extent, with prices per kilowatt hour steadily declining. The BNEP promotes a practical approach that engages solar electricity technologies that result 1.6 Regulatory and Legislative Context in an overall benefit for Barbados. The policy advances an energy mix that considers both intermittent and In developing the BNEP, it was important to take into base load renewable energy technologies. consideration the current regulatory and legislative framework within Barbados. In 2007, the Government For further development of renewable energy of Barbados produced an Energy Policy to give technologies, there will also need to be improvements direction to the development of the overall sector. in energy storage technologies. This will reduce the This wide-ranging policy addressed issues relevant to variability of grid tied renewable energy technologies the fossil fuel sector and renewable energy resources. which, due to their intermittent nature, affect the At that time, the Barbados Government was seeking stability of the grid. to explore new potential offshore petroleum wells while taking advantage of emerging renewable energy The opportunity for energy storage is particularly technologies and markets. relevant to a small island such as Barbados, as the grid is isolated, with no provision to interconnect to In keeping with the interest in developing offshore other islands. This means that in many cases, the petroleum, the government established the Offshore installed capacity for renewable energy sources is Petroleum Act and the Offshore Petroleum Taxation far greater than that which would be needed for a Act in 2007. These Acts contain the rules governing conventional fossil fuel generator to produce the same the exploration and production of offshore oil in amount of energy in GWh. This is discussed later when Barbados and consider the limits and optimum levels considering specific challenges to renewable energy of production to ensure the long-term sustainability of development and associated targets. the petroleum sector. 38 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Recognising the changes and recent advances in energy technologies, a number of legislative and regulatory provisions have been introduced or updated in anticipation of the development of new energy markets in Barbados. Many of these changes in regulation and legislation have been in the area of the electricity sector. In January 2001, the Fair Trading Commission (FTC) was established, taking over from the Public Utilities Board (PUB) in ensuring that rates and standards of service for The Barbados Light & Power Company Ltd (BL&P) were maintained at a reasonable level. The provisions governing the regulation of the electric utility are contained in the Utilities Regulations Act Cap 282. The electricity sector has changed significantly in recent years, with the company being now wholly owned by a Canadian company, Emera Inc. The • Pilot Consumer Finance Facility introduction of more renewable energy sources has (BDS $ 1 million): Provides interest rate rebates made it more likely that BL&P will face competition for commercial entities offering renewable from other companies with the ability to generate energy or energy efficiency products. electricity at a commercial level. In anticipation of such continuing developments, a new Electric Light & • CFL Distribution Facility (BDS$2 million): Power Act (ELPA) was produced in 2013, incorporating Provides free compact fluorescent lamps to revisions for the first time since the early 1900s. BL&P residential customers. In view of the changing energy markets and • A/C Rebate Trade in Facility (BDS$3 million): technologies, there were also further energy policy A 50% rebate to residences and businesses, documents produced in 2010 and 2013. In 2010, which replace older air conditioners with more the Sustainable Energy Framework for Barbados energy efficient models. (SEFB) was executed through the Inter-American Development Bank (IADB). The programme was • Discretionary Grant Facility (BDS$2 million): designed to establish areas of technical assistance Funds for institutional support to execute and support for sustainable energy programmes in and implement the Smart Fund. This includes Barbados. One element of this technical assistance education and awareness programmes. was the development of the Energy Smart Fund. In 2013, a Draft National Sustainable Energy Policy was Below are the six facilities provided through the produced in an attempt to build on many aspects of Energy Smart Fund provided by the IADB. the Draft Energy Policy developed in 2007. The 2013 document emphasised the sustainable production • Technical Assistance Facility (BDS $1 million): and use of various energy resources. Efficient use of Grants for pre-investment, economic and fossil fuel production and consumption, along with technical feasibility studies. the development of renewable energy technologies, were the key areas of focus of this draft policy. • Energy Efficiency Retrofit and Renewable Energy Finance Facility (BDS$12 million): Further incentive for developing renewable energy Provides subsidised loans for implementing technologies, was given through the establishment of renewable energy projects that have shown the Renewable Energy Rider (RER) proposed by BL&P to be financially viable. and approved by the FTC in 2010. The RER allowed domestic customers to sell renewable energy back 39 to the utility at the rate of 1.6 times the level of the Fuel Clause Adjustment (FCA). This was under a 1.7 Barbados Energy Consumption and “sale of excess” or a “buy all, sell all” arrangement, Demand - Summary Charts and Tables depending on the metering configuration. In July 2016, the RER credit changed, and the rate is now no longer tied to the FCA but rather is calculated using 1.7.1 National Energy Use a resource cost approach. The temporary RER credit The demand for energy in Barbados over the last is now $0.416/ kWh for PV and $0.315/kWh for wind ten years is characterised by a declining trend. The energy, for systems up to 500 kW of installed capacity. average demand of primary and secondary energy was estimated at 11,297 BOE per day. Energy demand over A list of the energy projects and programmes the period declined, reflecting the economic challenges undertaken by the Ministry of Energy and Water that Barbados has been facing. Barbados’ demand for Resources during the period 2009 to 2017 is attached energy peaked in 2008 at an estimated 12,056 barrels to this document. of oil per day (BOPD), while the lowest level of demand was observed in 2014, estimated at 10,132 BOPD. The BNEP further facilitates economic and environmental sustainability through development of regulatory and legislative mechanisms to build on and support those that currently exist. TOTAL BARRELS OF OIL DEMAND PER DAY Figure 1: Total Barrels of Oil Demand per Day 40 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Currently, fossil fuels, predominantly heavy fuel oil, Natural gas is not a significant contributor in the dominate Barbados’s energy mix: energy sector, adding only 2% to the energy mix. However, its widespread use in Barbados for • Heavy Fuel Oil – 37% (domestic) cooking, and various activities in the • Diesel - 18% tourism and industrial sectors, has had a considerable • Gasoline – 17% social impact. The benefit of this fuel source is that it is • Kerosene – 7% less carbon intensive than other fossil fuels. However, • LPG – 2% it is still a fossil fuel, and its use without carbon capture • Sugar Cane Bagasse – 3% and storage is unsustainable in the context of • Natural Gas – 2% climate change. • Other (electricity produced within utility) – 14% • Solar water heaters - < 1% The use of solar water heaters for domestic water heating has also risen significantly since 1974. However, The heavy fuel oil is mainly used in the generation its effect on the overall energy mix is still under 1%. of electricity. DEMAND BY ENERGY SOURCE Figure 2: Demand by Energy Source 2006 to 2015 41 Oil was discovered in Barbados as far back as the 18th century. Currently, oil that is produced on the island is sent to Trinidad for refining. The Barbados National Oil Company (BNOC) is a government-owned company that produces oil and gas onshore, and imports fossil fuels. Onshore oil production is mainly from the Scotland Sand Formation located in the Woodbourne Development Area (WDA) field; Barbados produces approximately 700 BOPD. Regarding natural gas, the equivalent of 500 BOPD are produced by the BNOC under the operation of the National Petroleum Corporation (NPC). The BNOC and the NPC are being merged into one entity. • Heavy Fuel Oil – 74% • Kerosene – 17.4% 1.7.2 Electricity Generation • Bagasse – 5.6% • Diesel – 2.2% Fuel Feed Stock for Electricity Production: • Natural Gas – 0.2% Over the last 11 years, the fuel feedstock used in • Solar – 0.6% Barbados for the production of electricity consisted in large measure of fossil fuels. The main fuels included The configuration above demonstrates the high trade heavy fuel oil, kerosene, diesel and natural gas. Within dependence required for Barbados to produce its the sugar industry, electricity production was mainly electricity. However, in 2016, Barbados’ production fuelled by bagasse. In recent times, solar energy has capacity for solar electricity increased from 10MW become a small but growing contributor to electricity to over 22 MW, contributing an estimated 2.4% of production. In 2015, the fuel input sources for the total electricity distributed. The table and chart electricity production was registered as follows: on the following page demonstrate the current fuel contribution to the total amount of electricity produced. 42 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Fuels Fuel Feedstock MMBTUs Diesel 230,426.80 HFO 7,830,143.87 Kerosene 1,841,808.78 Bagasse 592,962.40 Solar 59,022.04 Natural Gas* 24,522.80 Total MMBTUS 10,578,886.69 Table 2: Total Fuel Consumption for Electricity Production 2015 * Accounts for use of natural gas to produce electricity in the manufacturing sector. FUEL INPUTS FOR ELECTRICITY PRODUCTION 2015 BARBADOS Figure 3: Fuel Inputs for Electricity Production 2015 Barbados 43 Electricity consumption over the last ten years was distributed as follows: • Domestic – 33% • Commercial – 21% • Public – 16% • Tourism/Hotel – 15% • Industrial – 9% • Other – 6% ELECTRICITY SALES BY DEMAND GROUP Figure 4: Electricity Sales by Demand Group 44 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 The average consumption for electricity in Barbados during the period under consideration is 926.8 MWh. 1.8 Multi-Criteria Approach (MCA) Electricity is central to economic output in Barbados Given the previous discussions in this section, it is and brings significant value to the country from a clear that there is a need to consider the broad factors social perspective. The social cost of the production that influence energy availability, cost, and global of electricity was estimated to be $0.06 for every environmental impacts in Barbados. It is recognised dollar earned from the production and distribution of that policies which consider energy in terms of its electricity, and the Barbados economy produced on overall impact on economic, environmental and social average, BDS$8.00 from every KWh produced and systems, will allow the country to become more energy distributed. The BNEP seeks to build on the value that independent (UNEP, 2014). the electricity sector brings to Barbados by introducing the appropriate energy sources and ensuring that the The BNEP attempts to achieve sustainability in the highest level of efficiency in electricity generation energy sector by using a Multi-Criteria Approach that from these sources is achieved and maintained. This is consistent with the overall mandate to have zero focus and the resulting activities will be important in fossil fuel consumption domestically. improving the sustainability of the electricity supply. Additionally, the policy will attempt to provide a In seeking to determine the ideal option or path balance between the interest of the society and that of renewable energy development, this policy will of the electricity producers. consider the broad economic, environmental and social impacts. This means that an option with a Barbados intends to steadily increase its share of higher per kilowatt-hour cost may still be chosen renewable energy in the local market, widening the if it is deemed to have a lower environmental impact diversification of energy resources, promoting energy or can provide wider social gains. security and eliminating the reliance on imported fossil fuels, which is now based on about 90% In all of the sub-sectors, various stakeholders are imported resources. However, an analysis conducted encouraged to consider energy, economic and social by the MEWR suggests that this target could lead factors in determining the best energy options. This to high electricity prices if only solar PV installation approach is consistent with more recent international is undertaken. There may be a more sustainable approaches to global sustainability, where issues of mix of renewable energy resources which will lead social equity and global environmental impact of issues to a reduced long-term cost. Possible ways for such as climate change are strongly considered before achieving this target were identified as increased use any change or expansion of energy production of renewable energy technologies such as waste to or development. energy, biomass, cogeneration, wind energy, solar photovoltaic and solar thermal. This Multi-Criteria Approach was the basis on which the preliminary targets presented in the next section The Government has increased its efforts to achieve were chosen. See Section 2 for further details on the increased energy efficiency and sustainability by specific model used to determine the targets. promoting energy efficient technologies and its vision of “green economics,” which provides incentives Consideration was given to the use of rankings and to the public to be energy efficient. Barriers to this weights for the model. However, at this stage, given sustainability effort have been identified as limited the number of stakeholders to be considered, and the access to capital, lack of detailed regulations, limited contextual precedence allotted to value or objective, access to technology and lack of grid connection rules. these aspects were omitted. Nevertheless, it is possible that they will be considered while the Implementation The BNEP further considers these issues as it seeks Plan is being developed. to provide strategies for overcoming some of the limitations to sustainable development in Barbados. 45 “ It is the policy position of the Government to phase out local consumption of natural gas and liquefied petroleum gas by 2030.” 46 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030

SECTION 2 PRELIMINARY ENERGY MIX TARGETS 47 PRELIMINARY ENERGY MIX TARGETS Another significant challenge is that the benefits, 2. Preliminary Energy Mix Targets i.e. savings in foreign exchange from renewable energy sources, are not immediately transferred to Using the MCA to determine the energy mix targets government’s revenues. The concern is that in order discussed below, some key factors were considered, for the country to make substantial progress towards including: a more sustainable energy mix, government will likely be required to provide further incentives. • The market cost of energy. • The socio-economic and environmental cost The energy mix target in the BNEP consists of of energy. renewable energy, variable and intermittent • The maturity of energy technologies. technologies. The target proposed in the BNEP • The financial and economic benefits of applying requires 100% reduction in fossil fuel (heavy fuel various energy sources and technologies. oil, diesel, gasoline, kerosene, natural gas and LPG) • The economic and fiscal context of Barbados. consumption; one possible replacement scenario is depicted below: The market and economic costs of energy dictated the rate at which fuel switching could occur given the need to ensure that Barbados’ competitiveness was Potential Installed Energy Source not negatively impacted over the eleven-year planning Capacity (MW) horizon of the BNEP. This factor had to be balanced Solar Centralised 205 against the fact that fossil fuel represents a significant drain on the economic resources of the country. From Solar Distributed 105 the outset, it was recognised that a move towards greater use of renewable energy was attractive for Wind onshore 150 both economic and environmental reasons. Wind offshore 150 The major constraint in moving from an economy Biomass and Waste-To-Energy 15 based on fossil fuels to one based on renewable energy, is the fact that many of the renewable energy Energy Storage (Centralised 200 sources are intermittent in nature. This means that and Distributed) they are unable to be dispatched on demand. This Total (Excluding storage) 635 is in contrast to traditional fossil fuels, which are available whenever needed. Renewable energy sources Table 3: Estimations of Installed Capacity by Technology therefore operate at less than full capacity much of the time, and this increases the cost of generation from a utility’s perspective. However, to compensate for the intermittency of wind and solar highlighted in the energy mix, investment in storage is needed to provide stability to the operation of the grid. It is anticipated that approximately 150MW of storage is required. 48 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Energy Source Potential Installed Impact of modern battery storage technology Capacity The percentages in the energy mix above reflect only Energy storage centralised 132 one possible future scenario. Battery storage and Energy storage distributed 68 smart grid technologies are likely to play a key role in the future energy mix, reducing the need for baseload Total 200 energy. More detail on the future renewable energy mix will emerge as the Implementation Plan and Integrated Resource and Resilience Plan are developed Table 4: Estimations of Installed Storage in consultation with the major stakeholders. Energy Efficiency Target The implementation of the BNEP is expected to reduce This installed capacity of renewable energy domestic fossil fuel consumption from 11000 BOE/ technologies is expected to generate approximately day to 0 BOE/day. This represents an estimated fossil 1400GWh and this will result in savings of fuel reduction of 100%. Further, energy efficiency approximately $400BDS to $800BDS million annually policy measures for electricity consumption and in fuel savings with an estimated capital cost of transportation are expected to result in a reduction in $4.4 billion. Additionally this scenario is anticipated energy consumption of 20% below Business as Usual to displace approximately 2 million tonnes of (BAU) over the planning period. The total expected CO2 equivalent. generation is contingent on the energy efficiency target being met on an annual basis. 49 50 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 “ It is anticipated that some of the natural gas will be replaced by bio-methane, as specified within the energy mix, produced from renewable biogas sources. Indeed, the potential of bio-methane Currently, the National makes it likely to become a viable source of domestic gas. The organic component of Petroleum Corporation municipal solid waste (MSW) can also be converted to bio-methane. (NPC) supplies 1 million Not withstanding the government’s policy position to phase out natural gas in the long-term, it is expected that natural gas production for domestic cubic feet (mmcf) per day cooking will expand in the near term as well, and that there may be also greater uptake of natural gas as a fuel for commercial and to 22,000 customers of industrial consumers. Currently, the National Petroleum Corporation which approximately 750 (NPC) supplies 1 million cubic feet (mmcf) per day to 22,000 customers of which approximately 750 are commercial customers are commercial customers and, it is expected to increase due to expansion. There is potential to produce biogas from municipal solid waste, organic and, it is expected to waste streams, growth of biofuels et al which could potentially replace natural gas. The residential customers are expected to phase out their use of increase due to expansion. natural gas to an alternative product. Similarly, to meet the government’s target of being a 100% renewable energy and carbon neutral island state by 2030, customers who use liquefied . petroleum gas will also have to use electric stoves There is potential to produce or an alternative product. biogas from municipal solid waste, organic waste In order to achieve the benefits discussed above, a streams, growth of biofuels reduction in the volume of fossil fuels currently used in et al which could potentially energy generation will have to occur by the following replace natural gas. increments over the eleven-year planning horizon: • 49% fossil fuel reduction by 2023. • 100% fossil fuel reduction by 2030. The Natural Gas Factor It is the policy position of the Government to phase The above fossil fuel reduction targets can be stated out local consumption of natural gas and liquefied as increased production of energy from renewable petroleum gas by 2030. energy targets for electricity generation. Economy wide targets are expressed below in terms of In Barbados, despite our best efforts, there may renewable energy. be some economic activities that prove difficult to transition to renewable energy sources such • 50% renewable energy by 2023. as cruise tourism, and air transport. However, • 100% renewable energy by 2030. the GHG emissions from these sectors may not be wholly attributable to the host country under to-be-decided international rules. 51 “ …there is cohesion between activities within the sector, the objectives and the overarching Vision Statements.” 52 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030

SECTION 3 VISION, GOALS AND OVERALL OBJECTIVES 53 VISION, GOALS AND OVERALL OBJECTIVES The Overall Objectives are seen as appropriate for the 3.1 Structure policy makers in the energy sector, and are not viewed as critical to communicate to the general public. They, The BNEP provides a broad policy framework, which however, set the tone for the Specific Objectives, and has a Vision Statement, Visionary Goals, Overall are the basis for moving towards results and activities Objectives, and Specific Objectives that are presented that are more tangible. These Overall Objectives can at different levels of abstraction. Higher levels of be modified over the planning horizon of the BNEP as abstractions present statements that are more general the economic and social circumstances change and over-arching whereas lower levels of abstraction and as new technologies emerge to become provide statements that are more specific. commercially viable. First (Highest Level of Abstraction) - Level Vision Statement Second Visionary Goals Level Third Overall Objectives Level Fourth Specific Objectives Level (Lowest Level of Abstraction) - Fifth Level Measures The Vision Statement and Visionary Goals are given Figure 5: Policy Inverted Pyramid with the general public and overall government policy makers in mind. For this reason, Visionary Goals are The Specific Objectives are expected to be developed limited to eight, making them easier to memorise or by members working within those specific sectors, integrate into shorter presentations. It is not expected and can be modified as priorities change and new that these will be changed over the time of the industries develop. Although these will be modified, it BNEP planning horizon, as they represent broad is important to make sure that each level of abstraction wide-ranging goals. flows directly from the one above it. 54 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 This relationship is illustrated in Fig 5, which • Visionary Goal: An energy sector that offers presents the Policy Inverted Pyramid. diversity of sustainable energy options with a trajectory towards 100%. In the BNEP, the overarching statement is the Vision Statement. This statement flows into the Visionary • Overall Objective: Increasing diversity in Goals, which then give rise to the Overall Objectives. the types of energy sources used in both the These Overall Objectives inform the Specific renewable and fossil fuels sectors. Objectives which relate to individual sub-sectors of the energy economy. The measures chosen for each • Specific Objective: A renewable energy sector sector will feed into those Specific Objectives. that has a greater involvement of smaller investors in the system. Structuring the BNEP in this way ensures that there is coordination and cohesion between activities within • Measure: Establish a system to ensure the sector, the objectives and the overarching protection of intellectual property and patents. Vision Statement. The Vision Statement and all of the emerging goals Below is an example showing how the Vision and objectives were structured around a number of Statement can be traced all the way to a measure, Core Values that were obtained from interviews and through different levels of abstraction. consultations with local stakeholders, as well as the assessment of issues identified in previous policy • Vision Statement: Energy security and documents prepared for Barbados and members affordability through diversity and collaboration: of CARICOM. The CARICOM Energy Policy and the establishing and maintaining a sustainable Jamaica National Energy Policy were referred to in this energy sector. regard. Recent research conducted by the consultant into factors affecting the development of renewable energy in the Caribbean was also considered (Ince, Vredenburg, Liu, 2016). 55 56 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 In general, stakeholders believed that the policy should • Education, awareness and capacity building. aim to provide a level playing field to support anyone with an interest in participating in renewable and • Environmental protection and ecology, sustainable energy activities in the energy markets. especially in connection with public health. The view was that with the size of the Barbados market, a collaborative approach was likely to be more • Innovation - developing Barbados as a centre effective than a competitive one. of excellence for research and development in renewable energy. With respect to the electricity sector in particular, it was thought that the most important aspect was Based on the Core Values identified above, to maintain standards and reliability of production the following Vision Statement was developed. and supply for all customers in Barbados at a reasonable price, regardless of the eventual structure Vision Statement: “Energy security and affordability of the market and the regulatory environment. through diversity and collaboration: Establishing It was considered essential that those standards and maintaining a sustainable energy sector of production and service should be safeguarded for Barbados.” throughout the sector. 3.2 Core Values Below is a list of some of the general core values identified: • Stability - price, regulatory, technical. • Reliability - including continued access to energy. • Efficiency in the production and consumption of all energy resources. • Diversity - reduction of vulnerability through use of multiple sources. • Ownership of business - opportunities for local investment. • Maximum use of indigenous energy resources • Entrepreneurship development. • Maximum level of collaboration. • Multidisciplinary cross-cutting approach. • Systematic development of the energy sector based on renewable energy. 57 The following are potential visionary goals for Visionary Goal 4: An energy sector that offers Barbados emerging from the Vision Statement and continuous and reliable supply of energy are supporting statements that reflect the general (core value - reliability). direction where stakeholders wished the sector to go and what they wanted to see the sector achieve. Visionary Goal 5: An energy sector that offers These are also consistent with previous policy opportunities for development of human capacity and documents produced in Barbados and the collaboration (core value - capacity and collaboration). wider Caribbean. Visionary Goal 6: An energy sector that offers significant opportunities for local entrepreneurship and international investment (core value - 3.3 Visionary Goals entrepreneurship). Visionary Goal 7: An energy sector that minimises the environmental impacts and contribution to global climate change (core value - environment). Visionary Goal 8: An energy sector that is governed by sound management and clear legal regulatory frameworks. (core value - regulation). Visionary Goal 9: An energy sector that positions Barbados as a centre of excellence for innovation, research and development in renewable energy (core value - innovation). Visionary Goal 10: An energy sector that provides opportunities for all Barbadians (including the most vulnerable to the impacts of climate change) to participate in and benefit from the transformation to 100% RE (core value – equity). The following Overall Objectives were developed from the Visionary Goals. These objectives are not specific to any sector within the industry but are relevant to the general energy sector: Visionary Goal 1: An energy sector that offers Overall Objective 1: Achieving stability and a diversity of sustainable energy options, with a predictability in energy product prices over the long trajectory to achieve 100% Renewable Energy term (related to Visionary Goal 3). by 2030 (core value - diversity). Overall Objective 2: Achieving affordability and access Visionary Goal 2: An energy sector where to all classes of consumers in energy products and consumption and production of energy resources services (related to Visionary Goal 3). occur with the maximum level of efficiency feasible (core value - efficiency). Overall Objective 3: Establishing a consistent and comprehensive regulatory framework to Visionary Goal 3: An energy sector that offers basic govern activities in various energy sub-sectors energy products and services that are affordable to (related to Visionary Goal 8). local citizens (core value - affordability). 58 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 BNEP VISION STATEMENT: “Energy security and affordability through diversity and collaboration: Establishing and maintaining a sustainable energy sector for Barbados.” Figure 6: Summary Table of Vision Statement and Visionary Goals 59 60 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 3.4 Overall Objectives Overall Objective 9: Increasing collaboration within the energy sub-sectors and among the cross-cutting sectors that have an impact on energy supply or consumption (related to Visionary Goal 5). Overall Objective 10: Improving the efficiency in the production and consumption of energy products within the various subsectors (related to Visionary Goal 2). Overall Objective 11: Improving the awareness and understanding of energy production and consumption, its impacts and the associated environmental and socio-economic consequences within all sections of the public (related to Visionary Goal 5). Overall Objective 12: Increasing the number of persons locally with qualifications and skills relating to energy production and management of renewable and fossil fuel sources (related to Visionary Goal 5). Overall Objective 13: Reducing the environmental impacts associated with the production and consumption of energy resources locally (related to Visionary Goal 7). Overall Objective 4: Increasing the amount of Overall Objective 14: Ensuring reliability and continuity renewable energy sources used in the energy mix to of energy supply in the various local energy subsectors the extent that it can be accommodated from (related to Visionary Goal 4). a technical and socio-economic perspective (related to Visionary Goal 1). Overall Objective 15: Attaining the lowest price sustainable by the local economy for various energy Overall Objective 5: Increasing diversity in the types of sources consumed in Barbados, while maintaining energy sources used within the energy sector (related environmental efficiency (related to Visionary Goal 3). to Visionary Goal 1). Overall Objective 16: Establishing effective Overall Objective 6: Increasing the extent of energy partnerships between national and international resources used in Barbados that are obtained from entities for local energy projects indigenous sources (related to Visionary Goal 6). (related to Visionary Goal 6). Overall Objective 7: Encouraging local investment Overall Objective 17: Establishing effective systems in energy projects and programmes in Barbados, to support a hub for research and development in with a view to increasing the number of shareholders renewable energy (related to Visionary Goal 9). and players in the various energy subsectors (related to Visionary Goal 6). Overall Objective 18: Maximising the use of small scale distributed generation within the energy mix. Overall Objective 8: Promoting more local (related to Visionary Goal 10). entrepreneurial activities in renewable energy and increasing fossil fuel energy development throughout the energy sub-sectors (related to Visionary Goal 6). 61 “ A critical part of the policy sets a path to the one based entirely on renewable energy.” 62 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030

SECTION 4 SECTOR SPECIFIC OBJECTIVES & MEASURES 63 SECTOR SPECIFIC OBJECTIVES & MEASURES 4.1 Introduction 4.2 Energy Supply The following Sector Specific Objectives emerged The theme of Energy Supply focuses on both the from the Overall Objectives in Section 3. They also renewable and fossil fuel energy sectors. A critical part reflect specific objectives that were suggested during of the policy sets a path for the necessary transition the interviews with members of the various sectors from a fossil fuel economy to one based entirely on identified. Based on the Sector Specific Objectives, renewable energy. Cognisant that the transition will possible measures under the various themes were be rapid, Barbados has also turned its attention to identified. The categorisation of the themes and the exploring for hydrocarbon resources in its Exclusive sectors were based in part on those suggested by the Economic Zone. Indeed, the BNEP recognises that if Energy Task Force in the document Policy Outline and Barbados locates significant quantities of natural gas, Thematic Areas (2016). this resource could play a role in assisting the country in its transition to renewable energy and in reducing its overall carbon footprint, by choosing what some refer to as the Norwegian model and exporting all exploited hydrocarbons (on land or offshore). The objectives identified in this section relate to the following important energy supply issues, and are separated into Oil and Gas, and Renewable Energy supply sectors: • Production - renewable energy and the exploration and production of oil and gas. • Distribution and sale of energy output. • Fuel and energy diversification. • Energy pricing and affordability. • Energy security. • Cross-border trade in energy. • Energy integration. • Storage – energy and fuel. 64 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 “ if Barbados locates significant quantities of natural gas, this resource could play a role in assisting the country in its transition to renewable energy and in reducing its overall carbon footprint. 65 ,,• Clearly defines rules surrounding allocation 4.2.1 Oil and Gas Supply Sector Objectives of economic rent payable to government and developers. The importance of optimising the use of fossil fuel resources relates to the Overall Objectives discussed • Has a system to allow for a fraction of the in Section 3. These objectives relate to the stability revenues generated in petroleum resources of supply, efficiency of operation, development of to be used in advancing a renewable energy- indigenous and human resources in the potential based economy that is self-sustaining. new oil and gas industry, and the establishment of appropriate regulatory and legislative frameworks. • Has a ‘zero harm’ health, safety and environment protocol that governs activities Recently, there have also been significant technological in the oil and gas sector. advancements in deep water oil and gas exploration, drilling and production. These advances have made • Includes a clear retirement strategy for deep water basins more economic to explore. generation plants owned by the utility and Developments that improved efficiency have other regulated energy producing entities. occurred in areas such as compression systems, pipeline technology and drilling equipment, making it • Has stability in as many components of energy advantageous for Barbados to continue to develop its pricing as possible. oil and gas resource to the greatest extent possible, while maintaining the quality of the terrestrial and • Has well understood links between upstream marine environment. and downstream processes in the energy systems by energy providers and consumers. The Specific Objectives listed below will be important in helping the overall energy sector in attaining the Policy Measures - Oil and Gas Supply Overall Objectives. The importance of sustainability In order to achieve sustainable production of oil and in the oil and gas sector relates to the following gas in Barbados’ Exclusive Economic Zone, all relevant Visionary Goal. entities in Barbados shall work together to: Visionary Goal 6: An energy sector that offers • Establish regularly held investor conferences significant opportunities for local entrepreneurship to inform potential developers about the and international investment. rules and requirements needed to undertake activities in the oil and gas sector. The Specific Objectives will result in a sector that: • Increase the cultivation of data relating • Ensures the security of supply of oil and to the geological and geophysical gas products where economically and conditions in the offshore oil and gas sector financially viable. to aid the government in setting licence fees and determining levels of royalties. • Ensures a suitable legal and administrative regime to promote the successful exploration • Develop a licensing system with clear criteria and development of commercial discoveries of on the ranking of various factors critical to oil and gas. the decision on bids. This system should be made available widely to potential bidders as • Clearly identifies agencies such as the well as the general public. National Petroleum Corporation (NPC) and Barbados National Oil Company (BNOC) as the • Formulate clear legislation governing implementing agencies for government policies environmental management in offshore oil in various energy areas. and gas activities, with provisions for removal of licences if stipulations are not met. • Maximises exploration, production and export of petroleum products. 66 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 “ • Develop a capacity-building program locally to prepare the workforce for employment in the emerging oil and gas offshore sector. • Create an enabling environment that will empower local businesses to It is expected that solar participate effectively in the supply of goods and services to the offshore oil and gas sector. PV, solar thermal, wind, • Offer fiscal incentives for developers, which are tied to factors such as the expected internal biofuels and biogas will rate of return. • Establish a wealth management programme to all form part of the mix of ensure that revenues from the offshore oil and gas sector are used effectively. renewable energy • Export all commercially produced oil and gas where it is financially and economically feasible. • Produce legislation that identifies limits on In the area of solar thermal, there is an interest in the amount of oil and gas resources that can increasing the use of solar water heaters as far as it is be exploited in the short term. financially and economically feasible. The development of solar water heaters for low income residents could • Build a defence and security framework to be pursued under a suitable regulatory framework. protect the Exclusive Economic Zone. Development of solar thermal technology for air conditioning systems, distillation and electricity using concentrated solar, are all areas where solar thermal could be part of long-term sustainability solutions 4.2.2 Renewable Energy Supply for Barbados. The potential for these and other innovations in renewable energy to be exported to The development of renewable energy resources other Caribbean markets, offering the opportunity for available in Barbados will be essential to maintaining further entrepreneurship in Barbados, should also be and improving the overall sustainability of the sector. considered. If such markets were developed, Barbados Barbados is proud to be seen as one of the leaders in could establish a goal in the medium and long term to renewable energy in the Caribbean, particularly in the be a renewable energy hub for the Caribbean. area of solar water heaters. Similarly, there is also potential for research into The success in solar water heaters was one of the improving efficiencies and designs of some of the spurs for the solar PV industry, which has expanded exponentially over the last five years, due in part to existing solar and renewable energy technologies. the introduction of BL&P’s Renewable Energy Rider. Despite these successes, there is still a lot that can be There is a need to identify overall strategies to increase done to expand solar thermal and PV technologies to the penetration of renewable energy technologies their full potential, and extend the use of renewable in the energy generation mix, while at the same time energy resources to include more energy generated identifying the appropriate level of development of from wind, biomass and biogas. specific renewable energy technologies for Barbados. Proposed targets for renewable energy are outlined in Section 2. 67 68 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 While discussing the opportunities for further use of Renewable Energy Supply Sector Objectives renewable energy within Barbados, there is a need to The importance of the renewable energy sector is high also explore the potential for exporting technologies in the context of all sectors, especially as the transition to other countries in the Caribbean and further afield. towards the aspirational goal of 100% renewable This is especially so in the area of solar thermal and energy is one of the key aspects of the energy policy, solar photovoltaic technologies. which is encapsulated in Visionary Goal 1, Overall Objective 4 and Overall Objective 17. It is expected that solar PV, solar thermal, wind, biofuels and biogas will all form part of the mix of Visionary Goal 1: An energy sector that offers renewable energy as described above. There will also a diversity of sustainable energy options, with a need to be development in storage technology to trajectory to achieve 100% Renewable Energy increase possible off-grid applications and to improve by 2030. the capacity factor for grid-tied technologies. Visionary Goal 9: An energy sector that positions It is important to determine the activities that will be Barbados as a centre of excellence for innovation, needed to ensure that each of these technologies research and development in renewable energy is developed to their full potential. As a result, some (core value - innovation). of the objectives identified will relate to renewable energy as a whole, while others will speak to a specific Overall Objective 4: Increasing the amount of technology or a subset of technologies. renewable energy sources used in the energy mix to the extent that it can be accommodated from a In addition to the existing renewable energy technical and socio-economic perspective. technologies that are currently viable in the Caribbean, there are emerging renewable energy technologies Overall Objective 17: Establishing effective that may become more feasible for development over systems to support a hub for research and the planning horizon of the BNEP. development in renewable energy (related to Visionary Goal 9). Technologies such as ocean thermal, tidal, geothermal or ground source heat are a few that are not factored Sustainability within the renewable energy supply side in at the moment, but that may play a part in the is also important for objectives relating to stability energy portfolio before 2030. of supply, costs and affordability of energy, efficiency of operation, development of indigenous resources, development of human capacity, and the establishment of appropriate regulatory and legislative frameworks. The needs which will be addressed by the transition to an economy powered significantly by renewable energy are: • Reduced importation and consumption of fossil fuels, which result in loss of foreign exchange. 100% • More efficient energy producing technologies. • Reduced dependence on fossil fuel. • Preservation of Barbados’ natural environment. 2030 Renewable Energy by 69 In order to increase the consumption of renewable • Encourages ongoing research into newer, less energy, the Specific Objectives below will ensure a mature renewable energy technologies to allow renewable energy sector that: for effective development in the long-term. • Takes into context the need for retooling the • Demonstrates a clear understanding of roles workforce to work with newer renewable and accountability for installation and energy technologies. maintenance of new renewable energy systems. • Allows for the greatest viable number of • Provides strong NGO representation, competing players in the market, and provides with the capacity to promote awareness significant opportunities to generate wealth. and understanding of issues in the general community. • Includes a fair, transparent and stable tariff regime to facilitate greater integration of • Establishes clear measurements of indicators renewables in the electricity grid. and standards for various renewable energy technologies. • Shows greater involvement of smaller investors in the system, playing an important role in • Maximises the amount of manufacturing or sector decision making. assembly of renewable energy products within the country that is financially and • Exhibits a strong relationship between local economically viable. renewable energy projects and regional and international renewable energy initiatives. • Optimises training opportunities in the application of established and emerging • Demonstrates clarity in determining the renewable energy technologies. long-term strategies that would be needed in order to get to 100% energy from renewable • Offers appropriate tax incentives to motivate energy sources in the long-term and support investment in new renewable energy economic growth and competitiveness in technologies that are adjusted with the the process. maturity of technology. • Facilitates investments in storage technologies • Operates within a regulatory regime that to make renewable energy technologies more incentivises investment. technically and environmentally viable. • Shows an increased use of renewable energy in • Provides for greater access to studies vehicles (e.g. biofuels and electric vehicles). conducted on the renewable energy sector. • Promotes greater use of renewable resources • Has optimum account separation of generation produced in a business for manufacture of from transmission and distribution assets. energy within that business (e.g. use of biogas rather than PV for farms). • Establishes a clear direction for optimum diversification of energy resources in the • Offers a programme that allows for low income renewable energy sub-sector. households to benefit from renewable energy installations such as solar water heaters, • Provides clarity for the electric utility on the PV and wind. direction regarding the type of energy market that is desired. • Shows a high level of transparency in the granting of licenses to players within the • Engenders an effective system to enable a renewable energy sector. hub for research and development in renewable energy. 70 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Encourages technicians highly skilled in the Sector Objectives Specific to Solar Energy maintenance of EVs. A sector that: • Contains an optimum level of diversity in • Encourages greater penetration of solar water energy resources used in the renewable energy heaters as far as is financially and economically sub-sector (cost to be balanced against the feasible for residential customers. level of diversity). • Supports greater use of solar water • Provides equity for customers unable to pay for heaters in other commercial and industrial renewable energy installations. sectors including the hotel sector. • Allows effective collaboration and coordination • Offers improved economic incentives for of players in the renewable energy industry. installation of both solar thermal and solar PV technologies. • Incorporates a programme to stimulate job creation within the renewable energy sector. • Carves out a niche for distributed generation (e.g. householders with rooftop solar PV and • Includes a clear system for end-of-life disposal small community wind or solar systems). of renewable energy equipment and associated technologies such as batteries. • Demonstrates significant use of solar thermal applications beyond the use of domestic • Provides a special arrangement to establish solar water heaters (e.g. solar cooling, community and household involvement in distillation, parabolic solar for power production). renewable energy. • Shows greater integration of electric • Places greater emphasis on the development installation companies into the solar PV and of renewable energy technologies ideally suited other renewable energy grid connected to Barbados or Caribbean conditions. technology industries. 71 • Makes use of economies of scale that can be Sector Objectives Specific to Wind Energy gained through utility scale solar installations, A sector that: to ensure viability and sustainability. • Provides specific, clearly defined wind Sector Objectives Specific to Bio-energy energy zones. A sector that: • Includes planning standards and a system for • Shows increased use of liquid fuels prepared public engagement. from local crops on unused land (e.g. bio-diesel) to replace imported fossil fuel where feasible. • Establishes an environment conducive to joint ventures for wind energy. • Requires larger farms to install capacity on site for producing biogas for electricity production • Promotes the removal of barriers to or to replace natural gas in the NPC investment for wind energy. distribution network. • Establishes a system of investment to facilitate • Uses streamlined systems for waste transportation, cranes and construction management/separation to facilitate waste equipment to support large-scale to energy projects. wind development. • Allocates an adequate amount of agricultural • Encourages understanding and awareness land for development of bio-energy. of issues surrounding wind energy in the general public. • Includes the production of bio-diesel for transportation. • Provides economic incentives for setting up small wind installations for domestic/residential • Optimises land used in the production of energy and commercial purposes. from bio-fuels. Energy Storage - Renewable Energy • Supports a bio-methane industry based on Given the fact that many of the renewable energy fermentation technologies, and with clearly technologies are intermittent in nature, development defined markets. of technologies that enable the storage of energy from sources such as wind, solar and tidal energy will be • Articulates clearly established standards for important. This is especially so if the establishment methane production from biogas. of off-grid renewable energy technologies is expected to become more prominent. • Provides several options to promote flexibility in energy supply. Even with grid-connected renewable energy, there are limits for renewable energy penetration. The Barbados • Provides specific regulations for the storage of Solar and Wind Integration Study (2015) discusses this bio-methane. in more detail. The larger the amount of renewable energy in the energy mix, the greater the need for • Clearly regulates health, safety and spinning reserves at the electric utility. the environment. It is clear that without investment in energy storage, • Provides appropriate fiscal and financial support the capacity factors for renewable energy technologies framework for the bio-methane industry. will remain low, with a far greater investment of installed capacity needed to produce similar amounts • Accommodates strong systems to support of energy to that provided by traditional, conventional research and development. energy sources. 72 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 73 Technologies using batteries, compressed air and • Establish a capacity building program locally pumped storage have all been discussed as possibilities to prepare the workforce for employment in for energy storage in Barbados. Significant investment the renewable energy sector. in research and development of energy storage technology will be required to help satisfy the • Develop a central database containing details long-term vision of attaining 100% of energy on the extent of renewable energy resources produced from renewable energy. available at various locations in Barbados (solar, wind and bioenergy potential). In determining the final targets for intermittent renewable energy technologies, there will need to • Establish legislation and regulations that be concomitant increases and investment in energy provide for a transparent process in acquiring storage technologies. licences for supplying electricity from renewable energy sources. Below are specific objectives in energy storage to ensure a sector that: • Provide an enabling environment that encourages collaborative approaches • Commands access to research detailing to producing renewable energy that is the potential for use of various energy storage technically sound, and is financially, technologies such as batteries, pumped economically and environmentally viable. storage, and compressed air. • Establish a program of international financing • Articulates standards for energy storage and ‘in kind’ assistance that effectively supports technologies that are used in combination with the supply of renewable energy, and renewable energy technologies. promotes Barbados’ economic growth and competitiveness. • Provides concessions and economic incentives to promote the development of energy storage • Increase staffing (secretariat) and human technologies that work in conjunction with capacity to support local NGOs such as BREA. renewable energy technologies to improve stability and reliability. The establishment of • Develop a clear protocol for clients to follow an industry in Barbados for the manufacture for investigating and trouble-shooting in and maintenance of batteries for energy new renewable energy systems with a method storage will be facilitated. of recourse for clients in case of unsatisfactory company performance. • Liberalises the energy storage market to allow for others besides the main electric utility and • Provide regular and clear communication grid operator to provide energy storage to the public on developments within the services (distributed and centralised). renewable energy industry. Policy Measures - Renewable Energy Sector • Institute efficiency standards for and Storage manufacturing local renewable energy In order to achieve a sustainable transition to a sector products such as solar water heaters. more strongly based on renewable energy, all relevant entities in Barbados shall work together to: • Establish appropriate fiscal incentives for emerging renewable energy and • Diversify and optimise the renewable energy storage technologies. mix that results in the maximisation of socio-economic and financial benefits • Promote an enabling environment that to Barbados. encourages local involvement in renewable energy projects. 74 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Establish a hub for innovation, research and development in renewable energy. 4.3 Energy Efficiency and Energy Conservation • Create a system to ensure the protection of intellectual property and patents for renewable Energy efficiency and conservation are critical to energy technologies. achieving the national desire to contain the foreign exchange expenditure relating to the fuel import bill. • Define land areas for bio-energy and Changing energy use to provide more output for less wind production in Barbados’ Physical input improves both the economic and environmental Development Plan. performance of any technology. Looking across the planning horizon of the BNEP, it is expected that • Establish and support infrastructure for the the economy will experience growth, and potentially collection, handling, and processing of organic increase the demand for energy. In promoting energy material to produce energy. efficiency and conservation, growth across sectors such as manufacturing and construction should not • Establish a renewable energy spatial be compromised. The indicators developed and the licensing regime for residential and measures pursued should lead to improvements in the commercial producers. way that energy is produced, even if there is long-term growth in overall use. • Provide fiscal and financial support for research and development in renewable One of the main strategies for attaining a sustainable energy and storage technologies and methods. energy production and consumption sector is to attain maximum efficiency. A focus on energy efficiency • Develop standards of production for can improve the performance in both the renewable bio-methane from biogas. energy and fossil fuel sectors. • Create standards for electricity generation The importance of energy efficiency is stated in efficiency in the bio-energy, wind energy and Visionary Goal 2. other renewable energy sub sectors. Visionary Goal 2: An energy sector where • Produce a legislative and regulatory framework consumption and production of energy resources for bio-energy production, distribution, occur with the maximum level of efficiency that is storage, and plant decommissioning. feasible. • Devise a strategy for expanding Barbados’ The importance of energy efficiency is further renewable energy markets into the Caribbean. emphasised in Overall Objective 10. • Establish a transparent decision protocol for Overall Objective 10: Improving the efficiency choosing between energy storage measures. in the production and consumption of energy products within the various sub-sectors. • Create clear guidelines for integration of battery technology in PV systems. The importance of energy efficiency and its overarching role in improving sustainability throughout • Implement proven storage technologies the sectors, make it sufficiently significant to merit its and systems that promote renewable own policy or plan emerging from the BNEP. For this energy and are economically, environmentally reason the development of an Energy Efficiency Plan and financially viable. is included among the recommended measures below. The Energy Efficiency Plan would have sub-sections to • Establish a system for recycling and disposing consider areas of energy management and planning, of batteries at end of use (cradle to cradle). lighting and exterior energy efficiency activities. 75 The BNEP seeks to address and promote energy Policy Measures - Energy Efficiency efficiency activities through the following: and Conservation To improve the efficiency of energy use in • Retrofitting. the country, all relevant entities in Barbados shall work together to: • Energy efficiency management. • Establish efficiency standards governing • Energy efficiency and electricity. electricity production for utility and distribution-scale operations. • Incentive development for energy efficiency and energy conservation. • Develop a maximum useful life and cost/ performance ratio of operations for • Standards for energy efficiency and generation equipment. energy conservation. • Create legislation and regulations to govern • Regulatory development. movement towards greater energy efficiency in businesses and residences in Barbados. • Promotion of public awareness. • Craft an energy efficiency plan as a policy • Human resources development. guideline document. Energy Efficiency and Conservation Sector • Develop an energy conservation education Specific Objectives and awareness programme that will promote The efficient consumption of energy in Barbados will lifestyle changes among Barbadians with regard result in a sector that: to energy consumption. • Establishes efficiency standards for • Promote energy efficiency in the productive and manufacturing of local renewable trading sectors. energy products. • Develop sectoral energy efficiency and • Provides energy efficiency standards for consumption standards for buildings, and importation of electrical and electronic encode them in the Town and Country equipment into Barbados. Planning Act. • Creates an energy efficiency labelling protocol • Establish or adopt business standards for the for electric and electronic equipment. design of energy efficient homes and offices. • Integrates energy efficiency activities with • Create energy efficiency standards for renewable energy, and views renewable energy appliances and equipment used for residential, as energy efficiency with zero cost. commercial and industrial purposes. • Establishes retrofits or energy efficiency where • Provide equity for households that are unable feasible; e.g. replacing florescent bulbs with to pay for energy efficiency retrofits LED lights. and products. • Considers energy efficiency alongside • Develop a set of regulations in tandem with renewable energy development in an integrated all government ministries involved in the approach to sustainability throughout energy sector, which identifies a clear and the sector. defined process for new applicants in energy efficiency projects. 76 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Given that 50% of energy used in Barbados is provided by the electricity utility, more renewable sources in the generation of electricity will go a long way towards reaching long-term targets. • Produce a system of duties, taxes and economic incentives to promote greater use 4.4 Electricity Sector of high-efficiency energy technologies. The electricity sector is a critical sector to be addressed in the movement towards a sustainable • Implement standards for insulation in buildings. energy sector and the goal of 100% renewable energy. In order to obtain the maximum benefit of renewable • Use Life Cycle Analysis to determine the best energy technologies, there will need to be integration materials to be used for buildings and other of these technologies into the existing grid. construction projects. 77 The resulting agreements between the electric utility A utility in a single buyer market such as Barbados and renewable energy developers should share the requires a licence to operate. A degree of certainty risks and opportunities appropriately. The involvement with regards to licensing is important if the utility is to of the utility is also important in promoting demand- invest in technologies and programmes in the long-run. side management and energy efficiency within various customer classes. There may also be an opening up of the electricity market for competition or other participation, in order Given that 50% of energy used in Barbados is provided to facilitate Overall Objective 7. by the electricity utility, more renewable sources in the generation of electricity will go a long way Overall Objective 7: Encouraging local investment towards reaching long-term targets. It is important in energy projects and programmes in Barbados, that the electric utility is clear on government’s long- with a view to increasing the number of term strategy to ensure that decisions regarding shareholders and players in the various technological investments are made in support of the energy subsectors. targets. The utility should also play a part in setting the targets and establishing plans for the transition The sustainability of the energy sector will be achieved towards a grid using more renewable energy and through an electricity sector that: sustainable fossil fuels. One of the ways in which transitions to renewable energy and energy efficiency • Provides a reliable service, minimising technology will be included is through the use of brownouts and blackouts. SMART grids, which will need to be integrated into the existing distribution system. • Offers an affordable service to customers in all categories. One other significant aspect relating policy to consider is the degree to which liberalisation of the market is • Establishes a greater percentage of renewable possible. This can be viewed in terms of generation, energy in the fuel mix for electricity generation transmission and distribution, but there may be other (Aspirational goal of 100%). specific services that the utility is currently responsible for that might involve a third party. These could include • Expresses clear rules governing the aspects of energy storage to facilitate greater use of participation of Independent Power Producers renewable energy technologies. (IPPs) in the sector. Electricity Sector Specific Objectives • Has specific pricing for each renewable energy As Barbados transitions towards a renewable energy- source in any pricing agreement. based economy, the production and distribution of affordable electricity to all citizens in Barbados will be • Establishes clear rules governing the write- maintained, as stated in Overall Objective 1. off of sunken assets by BL&P, NPC, BNOC and other electricity producing entities that may Overall Objective 1: Achieving stability and be regulated. predictability in energy product prices over the long term. • Provides clear rules defining investments for firm capacity and intermittent capacity. Other Objectives and Visionary goals related to efficiency and environmental quality also speak • Demarcates obligations for provision of directly to the electric utility’s ability to achieve universal service between the incumbent utility the objectives within the sector. and potential new renewable energy players. Important in considering the electricity sector, • Defines an optimum mix of technologies are issues related to regulation and licensing. in renewable energy, i.e. percentage to be This is because the extent to which investments provided by wind, solar, biomass etc. can be undertaken by the utility is determined to some extent by the regulator, the FTC. 78 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Provides guidance on optimising the size of • Increases the involvement of the electricity components of the renewable energy system utility in other sectors such as transport (e.g. (utility scale vs. distributed renewable energy). supply of energy for EVs; vehicle to home and vehicle to grid technologies). • Establishes a transparent system for determining when to include newer renewable • Determines the optimum level of competition technologies into long-term utility planning and collaboration in the sector, while (OTEC, wave, etc.). maintaining reliability of supply. • Maximises the potential in using storage • Provides clear and transparent rules for technologies to improve the dispatch of supply. dispatch of generation, with assigned roles and responsibilities. • Articulates clear rules on how utility planning should be undertaken; moving away from a • Offers streamlined and transparent rules least cost model to an MCA sustainable model. determining the issue of licenses for IPPs (could be an auctioning or RFP process by • Demonstrates transparency in the roles of an independent body). the utility, the government ministry and the regulator in establishing long-term planning • Establishes a market with the maximum and integration of IPPs in the new participation of local entrepreneurs competitive market. and international partners that can be accommodated. • Prioritises reduction of carbon emissions in line with climate change, and national and global targets. 79 • Develops an equitable and stable pricing • Promote the use of renewable and other clean regime that is consistent with social and sources of energy to produce electricity. environmental values. • Develop clear rules for determining roles • Provides financial incentives for investors and timelines for updating the Integrated that promote renewable or more sustainable Resource Plan. energy sources. • Use SMART meters as part of an advanced • Creates tariff and pricing regimes for the communication infrastructure for distribution utility that include consideration of the cost management, to facilitate the use of more of storage technologies. intermittent technologies and aid in demand-side management. • Includes the integration of SMART grid technologies. • Improves efficiency of electricity generation. 4.5 Energy and Transportation • Establishes efficiency in consumption practices, The transportation sector is a large consumer of including the use of demand-side management. fossil fuel and, therefore, a significant contributor to greenhouse gas emissions in Barbados. Transportation Policy Measures Electricity Supply is responsible for about 33% of energy consumed In order to establish an electricity sector that is on the local energy sector. Given the ever expanding powered by affordable renewable energy, all relevant fleet of vehicles on the roads, management within the entities in Barbados shall work together to: transport sector will be vital in charting a sustainable path for energy development. • Establish electric market structures that reduce the effects of monopolistic operations where In addressing the transport sector, it is crucial to financially and economically feasible. consider both the technological development and issues of management and organisation within the • Create a pricing mechanism for electricity from sector. There is also a need for focus on infrastructure renewable energy suppliers. such as roads and refuelling systems. • Devise protocols for interconnectivity between The expansion of the local fleet of electric vehicles was IPPs and the utility to supply electricity. identified as a principal area of development alongside other changes to alternative fuels or improvements in • Expand electricity regulation to include the overall efficiency. wide ranging aspects of the market, generation, distribution, supply, dispatch, transmission, and Enhancements in the transport sector will play a electricity use within the electricity sector. significant role in achieving the Visionary Goals and Overall Objectives, including the following: • Produce standards and specifications for generation, supply, dispatch, transmission, Visionary Goal 1: An energy sector that offers distribution, storage and consumption that a diversity of sustainable energy options with a allow the electricity sector to operate in a trajectory to achieve 100% Renewable Energy. financially, economically, environmentally, and technically viable manner. Overall Objective 4: Increasing the amount of renewable energy sources used in the energy mix • Institute targets for limits on CO2 emissions in to the extent that it can be accommodated from a the electricity sector. technical and socio-economic perspective. 80 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Consequently, the BNEP seeks to provide measures to • Uses fewer vehicles per capita to reduce the address the following issues: level of traffic congestion in the country. • Energy consumption and efficiency within the • Provides more convenient and attractive public transportation sector. transport options to consumers. • Conversion from fossil fuel use to electricity. • Sensitises the public to the benefits of using mass public transit rather than private cars. • Transportation management. • Has created a disaggregated sector plan. • Fuel switching within the transportation sector. • Has defined a consistent transportation • Clean energy use and emissions control within policy that makes investment in new the transportation sector. technologies worthwhile. Transport Sector Specific Objectives • Supports a well maintained system of charging The transformation of the type of energy consumption stations at strategic points in the country. within the transportation sector will be achieved, thereby giving rise to a sector that: • Owns a fleet with a greater average performance efficiency of vehicles in Barbados. • Operates with a greater percentage of electric vehicles (EVs) and hybrid vehicles in the Policy Measures Transport Sector local fleet. In order to achieve the significant change in the consumption of energy to more efficient, clean and • Utilises a skilled workforce available to renewable energy, all relevant entities in Barbados shall provide effective maintenance on EVs. work together to: • Provides more information to customers on • Create biofuel standards for wholesale and comparative operating costs of running diesel, retail supply of vehicles. gasoline and EVs. • Establish a transportation information system • Has a greater number of renewable energy to provide data for transportation and energy systems installed that can be used as policies, strategic planning, tracking of CO2 charging stations for EVs (carports and emissions, and environmental impacts. charging stations). • Introduce more renewable energy and clean • Reduces the duties on the importation of EVs. energy into the public transportation system. • Uses more batteries and other storage • Provide appropriate incentives to promote technology to facilitate the charging of “green pumps” within service stations and on vehicles 24 hours per day. commercial properties. • Offers greater concessions in infrastructural • Remove MTBE from gasoline and diesel, and cost to encourage more local automobile replace it with ethanol and bio-diesel. dealers to be involved in the EV market. • Promote linkages with the agriculture sector • Collects more detailed information on the to encourage the production of agro-energy number of EVs, hybrids and other alternative crops where financially and economically viable. fuel vehicles in the country. • Encourage energy efficiency in the • Includes the use of EVs, biofuels, and other transportation sector. alternative fuels in public transport. 81 82 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Create a system that includes mobile charging stations for vehicles. • Introduce ethanol rather than MTBE as an anti-knock agent. • Implement more stringent regulations on vehicles’ exhausts and emissions. • Integrate charging stations with traditional gas stations. • Construct more charging stations for EVs. • Control and maintain CO2 emissions at levels consistent with local and global climate change targets. • Establish a system that facilitates the change from traditional vehicles to those powered by renewable energy, taking transition costs into consideration. • Implement standards for streetlight efficiency. • Provide cost incentives that encourage investment in required infrastructure with charging stations etc. • Acquire more details on the number of vehicles using each fuel type. • Provide tax incentives to vehicle dealerships that train their mechanics to maintain and • Establish standards in charging and other repair EVs. renewable energy infrastructure related to fuelling. • Establish a programme for identifying appropriate international sources of funding • Develop a regulatory framework for the to facilitate and assist the government in implementation of vehicle to grid storage transitioning from fossil fuels to EVs. and supply technology. • Remove duties and VAT from EVs and encourage a scheduled approach to increasing their use in the national transportation 4.6 Energy and the Environment fleet, while at the same time, not harming government’s revenue stream. It has long been observed that the production of energy has had an impact on our natural environment • Develop a road network that promotes through the emission of various pollutants, energy efficiency. and that such costs have, for many years, been externalised from the sector, and not seen as a • Establish the use of management technology cost to doing business. in public transit, e.g. using smartphone apps to verify arrival times of buses. 83 Given the focus on long-term health and environmental • Requires (through legislation and regulation) all issues related to marine life, ground water and air participants to adhere to the principle of zero quality, it is important to explore the impact of energy, harm to people and the environment in the environment and associated costs. This pertains to pursuit of energy production, transportation the Visionary Goals and Overall Objectives below: and distribution. Visionary Goal 7: An energy sector that minimises Policy Measures -Energy and the Environment the environmental impacts and contribution to To ensure that environmental concerns and objectives global climate change (environment). are addressed fully, all relevant entities in Barbados shall work together to establish: Overall Objective 13: Reducing the environmental impacts associated with the production and • Standards and protocols for the safe and consumption of energy resources locally. effective disposal of equipment and devices in the energy sector. The BNEP will establish a course of action for the following issues: • A sustainable environmental management framework for the upstream offshore • Energy’s impact on the environment, such petroleum sector. as air and ground water quality. • A decommissioning fund for the energy • Oil spill management. sector to facilitate the decommissioning and abandonment of energy operations • Information management and education. and facilities. • Establishment and enforcement of • Standards and protocols for energy production environmental standards. in the petroleum and renewable energy sub-sectors that promote and encourage • Clean energy. the goal of zero harm to the people and the environment. • Waste and energy. • Information systems and infrastructure Energy and Environment Sector Objectives that promote the flow of information The achievement of a sustainable balance between requiring environmental standards, energy production, transport and consumption, and best practices and legislation. protecting the environment will produce a sector that: • Studies within the sector that assess the • Has a strong flow of information on the correlation between carbon dioxide emissions environmental effects of various types of and health risks (e.g. cancer and asthma). energy production technologies in the energy sector and the wider society. Climate Change The statement in Visionary Goal 7 emphasises • Provides infrastructure that allows the the importance of climate change among the authorities responsible for environmental environmental factors. Barbados and all SIDS are protection to assess and monitor environmental particularly vulnerable to climate change impacts. standards in the energy sector. Contamination of groundwater, damage to coral reefs, destruction of coastlines and more frequent extreme • Possesses the information infrastructure that weather events are just a few of the occurrences that would allow for the dissemination of could severely impact Barbados’ economy and those environmental best practices on the production, of other SIDS. transportation and consumption of energy. 84 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 85 It is therefore in Barbados’ and other small islands’ Human Resources and Institutions: Capacity interest to lead the way internationally in promoting and Development the mitigation of climate change. In order for the BNEP to be effective, the institutions and human resources which service the energy sector BNEP speaks to the following: must be honed and applied in a meaningful way. The move of the energy industry towards a greater reliance • Climate change financing. on renewable energy represents a paradigm change in energy production and consumption. It will be • Carbon pricing and trading. necessary to ensure that the workforce is adequately prepared for the new skills that are needed, and for • Moving the international energy sector towards institutions to be restructured to regulate and manage a climate change neutrality. activities within the new sector. • Information flow. Of extreme importance in capacity building is the education system; especially the promotion of • Implementation of the nationally appropriate energy efficiency and renewable energy in the mitigation action. school curriculum at primary, secondary and tertiary institutions. Climate Change Sector Specific Objectives Climate change mitigation will require a sector that: Visionary Goal 5 and Overall Objectives 11 and 12 specifically identify these key issues related to • Contributes to the reduction of CO2 emissions human resource development. by promoting the use of clean and Visionary Goal 5: An energy sector that offers renewable energy. opportunities for development of human capacity and collaboration. • Fosters collaboration and cooperation amongst all stakeholders to reduce CO2 emissions. Overall Objective 11: Improving the awareness and understanding of energy production and • Works with international investors and agencies consumption, its impacts and the associated to finance climate change mitigation initiatives. environmental and socio-economic consequences within all sections of the public. • Establishes a baseline database for the level of greenhouse gases associated with economic Overall Objective 12: Increasing the number and developmental activities in the of persons locally with qualifications and skills various sectors. relating to energy production and management of renewable and fossil fuel sources. Policy Measures for Climate Change To achieve success in the reduction of CO2 emissions This section addresses and anticipates these changes within the energy sector, all relevant entities in and developments needed in the area of human Barbados shall work together to: resources and institutional capacity. • Create a mechanism and infrastructure to The Specific Objectives for human capacity will internationally transferred mitigation outcomes. address issues relating to: • Establish a clear international agenda • Research and development. for the acquisition of climate change mitigation funding. • Education and skills development. • Energy information management. 86 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 “ • Knowledge development. • Capacity development and institutional a skilled workforce strengthening. 4.7 Human Resource and Institutions - able to fulfil the Capacity Specific Objectives requirements of The development of skills and knowledge in the energy sector will result in a sector that: the new renewable • Has a skilled workforce able to fulfil the requirements of the new renewable energy sectors. energy sector • Uses more qualified persons in conducting • Maintains standards of qualification for energy audits. all aspects of the energy sector, especially in renewable energy. • Emphasises the concept of ‘innovation’ in energy-related curricula at various levels • Maximises information sharing between of education. educational institutions and the energy sector in establishing school curricula, and degree and • Regularly uses various media to communicate vocational programmes. with the general public about issues relevant to energy policy and sustainable energy • Incorporates new skills relevant to emerging, development in the country. conventional and renewable energy sectors into syllabi in tertiary institutions such as • Maximises the commercialisation of new and the Barbados Community College (BCC), the renewable energy technologies in the country. Samuel Jackman Prescod Polytechnic (SJPP), and the University of the West Indies (UWI). • Offers significant internship opportunities in energy technology development in the • Offers an increased number of scholarships private sector. for persons interested in studying new areas related to renewable energy and aspects of • Provides significant opportunities for sustainability in the oil and gas sector. the private sector to sponsor local energy development projects. • Allows for the flow of energy information from regional institutions to the local environment, • Facilitates financial contributions from the and from local industry to regional institutions. general public for the development of various projects. Incorporates new skills relevant to emerging, conventional and renewable energy sectors into syllabi in tertiary institutions such as the Barbados Community College (BCC), the Samuel Jackman Prescod Polytechnic (SJPP), and the University of the West Indies (UWI). 87 • Makes greater use of international standards • Develop and promote institutional capabilities and best practices in the development of the in the energy sector including: energy sector. • Energy policy formulation, management, assessment and audit. • Encourages the pursuit of vocational skills that • Legislative review and reform. are important in building an effective renewable • Energy sector planning. energy sector through support of institutions such as the Technical Vocational and Education • Support, promote and maintain the timely Training (TVET) Council. supply of data and information to the Barbados National Energy Information System. • Creates an environment that motivates personal entrepreneurship in areas of small • Establish regional and international agendas to business development in energy-related fields. develop technical capacity. • Provides a community teaching programme in • Implement guidelines for the adaptation, renewable energy. diffusion, and transfer of energy technologies. • Offers clear levels of acceptable standards • Promote cooperation in research and of service for various energy products, with technological development within the the possibility of recourse for consumers if energy sector. standards are not met. • Support research and development into Policy Measures for Human Resources Institutions: - smart-grid technologies. Capacity and Development To achieve the objectives that will lead to a significant • Enable an effective system of knowledge improvement in human resources and capacity transfer of higher order energy skills available in development, all relevant entities in Barbados shall international institutions to local educational work together to: and vocational facilities. • Develop energy studies curricula for secondary • Establish an educational system that and tertiary institutions. supports efforts for entrepreneurship in the energy sector. • Establish a knowledge base for the energy sector within an appropriate • Introduce research programmes that illustrate institutional framework. the link between the development of the local energy sector and the economy. • Develop an energy workbook that makes use of an integrated approach, including general • Create new jobs throughout the energy concepts in math, science, etc. industry that increase overall employment opportunities in Barbados. • Formulate a partnership between stakeholders within the energy sector and the Ministry • Empower a working group, including members of Education. of educational institutions and the energy sector to ensure the on-going relevance of • Create an information network between the education in the changing energy environment. energy and educational sectors to communicate requirements pertaining to skills and expertise. • Institute demonstration projects that illustrate innovation and the commercialisation of • Mobilise funding for training and development energy projects. of persons employed in the energy sector, and fields of disciplines that support it. 88 BARBADOS BARBADOS NATIONAL NATIONAL ENERGY POLICY 2019 ENERGY POLICY 2019 -- 2030 2030 “ Sustainability in agriculture will help safeguard the sustainability of the entire energy sector in the long term. have a significant impact on energy production or 4.8 Energy and the Cross-Cutting Sectors consumption, and/or will be impacted by energy production or consumption practices. The energy sector has a significant impact on all aspects of Barbados’ socio- economic life, touching It is possible that along the planning horizon of the all the critical sectors of production and consumption. BNEP, other sectors will be added as they become It is important that this policy harmonizes with more significant in terms of their impacts on the identified goals and policy objectives of the other overall energy sector. During this time, the BNEP sectors stated below: should be modified as necessary to remain consistent with policies in other sectors such as transport, • Agriculture. tourism, agriculture and small business. Considering thesepolicies in a consolidated manner will ensure • Tourism. synchronicity and harmony in all policies relating to the Barbados economy. • Industrial sector. The importance of the cross-cutting approach is • Waste management. summarised in Overall Objective 9. • Water. Overall Objective 9: Increasing collaboration within the energy subsectors and among the • Health and safety. cross-cutting sectors that have an impact on energy supply or consumption. Using the Multi Criteria Approach (MCA) means that it will always be necessary to examine the impacts of any policy decision or strategy on the energy sector from as wide a perspective as possible. The sectors identified above emerged from various discussions within the sector. These sectors are expected to 89 • Incorporates biomass (possibly river tamarind) Overview of Cross Cutting Sectors - as an off-season fuel to complement bagasse Overview and Objectives fuel production. • Uses a higher percentage of bio-gas, bio-fuels, 4.8.1 Agriculture bagasse and other biomass, such as king grass, to produce greater price stability. Agriculture is critical because there are potential uses of land for crops to produce bio-fuels. Animal waste • Uses more electricity in services such from farms can also be used for production of biogas. as cooking, in order to create additional In addition, the agricultural sector is a major consumer applications for renewable energy. of energy in the process of food cultivation and production. • Includes the use of ethanol from sugar cane in the transportation sector to replace MTBE. Traditionally, the sugar cane industry in Barbados was one of the pillars of its economy. However significant • Establishes a virtual museum to demonstrate decline over the last twenty years has meant that various aspects of the sugar industry and much of the land, which was formerly used in this linkages relating to energy and sustainability. productive sector, now lies idle. There is considerable interest in developing crops, which can be used for • Increases the use of biomass, while reducing energy production on this land. In recent years, there reliance on fossil fuel in the manufacture have been investigations into the viability of using river of plastics. tamarind as a crop to complement bagasse production from sugar cane. 4.8.2 Tourism More activity and discussions in these areas are expected. Sustainability in agriculture will help The tourism sector is a major contributor to the safeguard the sustainability of the entire energy Barbados economy. The success of the industry sector in the long term. relies, in part, on maintaining the natural environment; specifically marine and coastal resources, and air Agriculture Sector Specific Objectives and water quality. A programme that highlights the To achieve sustainability and the Visionary Goals, importance of protecting these resources for citizens Barbados seeks to develop an agricultural sector that: and visitors to the island will be of great benefit. Energy conservation, efficiency and promotion of • Maximises the use of bagasse from the sugar renewable energy are key elements in these activities cane industry and king grass to generate relating to the Vision Statement and Visionary Goals electricity that can be used within the industry of the BNEP. and/or sold to the utility. Sustainable tourism is also a way for Barbados • Maintains efficient sugar production processes to market its tourism product more broadly, as a and supports products made from sugar cane. greater number of visitors are becoming aware of environmental issues, and are taking them into • Optimises the use of waste heat produced in consideration when choosing a vacation destination. agriculture for cogeneration. Although hotels have become more aware of energy • Makes use of available land to maximise efficiency and renewable energy, there are areas where production using energy technologies to their actions can go further. For example, there is room improve the yields and diversity of products. for improvement in the area of solar water heaters, where growth in the domestic sector has not been • Has increased commercial viability of sugar mirrored within the hotel industry. cane and the overall agricultural industry through efficiency improvements. 90 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Solar thermal energy for air conditioning is another Industry, Manufacturing and Construction potential area of growth if the appropriate incentives Over the last decade, the Barbados economy has are implemented. International environmental expanded in the industrial sectors, with an increase standards, such as “Green Globe” or “EarthCheck,” in manufacturing. This expansion has resulted in could lead to a greater focus on renewable energy a concomitant increase in both peak demand for and energy efficiency standards across the sector. energy and total energy consumption. The price of energy for the industrial sector has often been higher Integrating hotel operations with activities in than the cost of service, as the electricity tariffs for industries, such as the rental car business, can extend domestic customers are kept at a lower level because energy sustainability efforts in the area of transport, of social considerations. The higher cost of energy which is another key energy sector. for industrial users affects the cost of production for both manufactured goods and services. This means In addition, the expanding tourism sector is currently that the prices at which goods are sold in wholesale responsible for a considerable amount of the and retail outlets are also higher. At times, this high electricity demand on the island. Therefore, energy price affects the competitiveness of businesses efficiency improvements in this sector, and the from an international perspective; especially when uptake of renewable energy, will enhance the energy compared to the neighbouring twin island state of sustainability potential of the country. In this regard, Trinidad & Tobago, where the cost of fossil fuel based it would be useful to focus on areas such as energy products is much lower. Energy policy and refrigeration, air conditioning, lighting, industrial regulation will need to address the cost of such energy cleaning and cooking. products for the industrial sectors, to ensure that businesses remain competitive, and costs of services Tourism Sector Specific Objectives to consumers remain reasonable. A sector that: Barbados has also expanded its activities in the areas • Integrates EVs and other renewable energy of building and construction. This is one of the more vehicles within into the rental car business energy intensive sub-sectors in the Barbados economy and other tourism-related services. and, as such, areas of sustainability and energy efficiency are critical. The attainment of international • Develops an educational programme for hotel energy efficiency standards, such as Leadership in guests and tourists in Barbados, emphasising Energy and Environmental Design (LEED), can play a the importance of energy efficiency and major part in ensuring that standards are maintained environmental conservation. in the long term. • Allows the electric utility to invest in the hotel sector in a way that will reduce the hotels’ overall energy costs and help make them 4.8.3 Manufacturing, Construction and more competitive. Building Sector Specific ObjectiveS • Allows the hotel sector to take advantage of A sector that: fuel hedging programmes offered by the utility to help stabilise energy costs and facilitate • Maintains electricity tariffs at levels better cost-control planning and budgeting. that encourage entrepreneurship and maintain competitiveness. • Provides further incentives to promote the use of solar water heaters and solar cooling • Makes use of renewable energy technologies technology for air conditioning. available to improve overall sustainability. • Supports a programme to encourage hotels • Encourages and educates the sector on to achieve international energy efficiency and potential options with respect to renewable environmental standards such as “EarthCheck.” energy and self-generation. 91 • Provides standards for buildings and Water construction that are in line with international Protection and maintenance of a good quality supply standards such as LEED. of water has also become a source of concern. Barbados is supplied entirely by ground water aquifers, Key Policy Measures for the Waste although there have been efforts to develop additional Management Sector desalination plants. The energy required to pump and In small island states such as Barbados, the issue of distribute water across Barbados is significant, and waste management is also one that will need to be the Barbados Water Authority (BWA) is the customer addressed, especially because the availability of land with the highest usage of electricity from BL&P in the for use in landfills is limited. The environmental impact country. As a result, the BWA has explored renewable of waste materials such as non-biodegradable plastics energy options such as solar and wind energy for can also be significant and, with the development of an generating electricity on its premises. effective waste separation system, there is potential for more recycling efforts. Alternative ways of waste It is important that within this policy, the link disposal, including incineration, have been considered between water conservation and energy efficiency in Barbados. Options such as these will have an impact is emphasised. There is also a need to consider on energy consumption, which will in turn affect the specific renewable energy technologies that could be cost of waste management. developed for the water sector. It should be noted that there may be a regulatory impact if the BWA decides In addition to how waste management is impacted by to pursue an energy source that is separate from the consumption, there are opportunities for using various grid. The loss of the BWA as a customer to BL&P waste products as fuel sources. Bagasse obtained could result in increased tariffs for customers that from the sugar cane industry is an example of a waste stay on the grid. In this situation, BL&P would still be product that has been used to generate electricity. required to meet its cost-of-service obligations. Any Various options using gasification of other organic future policy and regulatory measures should take this waste have been considered in recent times. These into account. waste- to-energy options could represent solutions for reducing the amount of garbage entering the landfill It could be beneficial for the BWA and BL&P to work and increasing the use of indigenous energy resources together to develop energy efficiency, renewable in Barbados. energy and storage projects that reduce the overall energy burden of the water system, and utilises the BWA assets more effectively. 4.8.4 Waste Management Sector Water Sector Specific Objectives Specific ObjectiveS A sector that: A sector that: • Uses an integrated management approach that promotes efficiency in the consumption • Maximises the use of waste resources and production of this resource to the greatest in industrial processes for the generation extent possible. of electricity within the industry and to the grid. • Includes the use of renewable energy • Provides a clear assessment of the potential technology to reduce the overall demand and of identified waste products in generating environmental impact of energy use. electricity or producing biofuels based on availability and energy calorific content. • Minimises the impacts of wastewater 4.8.5 Health and Safety production in generating electricity and other manufacturing processes. Apart from the environmental factors associated with emissions generated from fossil fuel energy production, there are impacts that these emissions 92 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 can have on health. Nitrous and sulphur oxides • Has safety standards for oil and gas exploration associated with burning fossil fuels for generating that are in line with international best practices. electricity are linked to respiratory ailments. In addition, emissions from gasoline and diesel vehicles Disaster Management can have a similar impact. MTBE that is used in Barbados, as an island state, is susceptible to natural unleaded gasoline vehicles as an anti-knock agent is and man-made disasters, especially related to also carcinogenic. It is partially for this reason that hurricanes and other extreme weather- related events. the replacement of MTBE by ethanol or gasohol has Many of these are associated with climate change and been explored as an alternative. There are also safety other impacts that affect the environment. considerations when it comes to interconnection of renewable energy technologies to the grid. Overall Objective 13: Reducing the environmental For example, there is danger of electrocution to impacts associated with the production and technicians on lines for distributed renewable energy consumption of energy resources locally. generation flowing back to the centralized grid. For stand-alone systems, batteries that are not properly Consequently, disaster management and mitigation is a maintained and stored can create risks of explosion. very important component of any plan of action within the energy sector. The BNEP speaks to the following There are also safety concerns related to the disaster management issues: development of the new offshore oil and gas “ exploration industry. It is important that safety standards be in line with international best practices for all activities on the rig. Related to the issue of health and safety in the energy sector is that of disaster management. Objectives and measures related to disaster management are also considered below. There are also safety Health and Safety and Environment Sector Specific Objectives concerns related to the A sector that: • Supports health and safety, with clear standards development of the new and protocols for establishing and maintaining new renewable energy systems. offshore oil and gas • Establishes studies that quantify the link between energy use and various health ailments observed in Barbados. exploration industry. It is important that safety standards be in line with international best practices for all activities on the rig. 93 94 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Energy and fuel reserves/stocks management. • Bolster the use of waste from the industrial, agricultural and tourism sectors, along with • Renewable energy use as a mitigation tool other municipal sources to produce energy of disaster management. where feasible. • Oil spill management and mitigation planning. • Establish legislation and regulations to encourage the safe disposal of waste from • Electricity restoration management. the energy sector. • Petroleum fuel transport disaster mitigation. • Implement time-of-use rates for the manufacturing sector in order to improve • Disaster management and natural overall efficiency. gas distribution. • Develop programmes to highlight possible Sector Specific Objectives - Disaster Management uses for renewable energy technologies The development of a disaster management in the manufacturing and other industrial programme will create an energy sector that: sectors (grid-tied and off-grid options). • Ensures the safety of renewable energy • Establish and implement standards of systems in the event of a natural disaster. energy efficiency in manufacturing, building and construction; • Makes renewable energy resources available to contribute to relief in the wake of a • Formulate and implement a building code, natural disaster. focusing on aspects such as passive cooling, energy efficiency and general ‘green building’ • Develops capabilities and resources for rapid solutions. disaster management. • Introduce standards to ensure the safety of • Requires (by law) that all participants adhere renewable energy systems in the event of a to the principle of zero harm to people natural disaster. and the environment in pursuit of energy production, transportation and distribution. • Establish renewable energy resources that could provide relief in the wake of a • Ensures that the regulations for the location natural disaster. of generation plant consider vulnerability to natural disasters such as hurricanes, • Develop protocols for disaster management earthquakes and tsunamis. in service stations and charging stations with renewable energy infrastructure. Key Policy Measures - Cross-Cutting Areas In order to achieve these multi-sector objectives, as • Create an energy sector disaster response plan. well as ensure safety and mitigate against disaster, all relevant entities in Barbados shall work together to: • Review legislation in the energy sector to enshrine the principle of zero harm. • Promote balanced land use for energy and food production. • Offer economic incentives to give hotels the opportunity to provide more energy efficiency • Encourage energy efficiency for irrigation and and renewable energy products. animal production. • Introduce a pilot project to illustrate the • Support the use of fisheries and agricultural impact of renewable energy and energy waste for bio-energy production. efficiency measures on the overall economy. • Promote energy efficiency within the industrial, agricultural and tourism sectors by employing 95 internationally recognised efficiency standards. include the development and implementation of an 4.9 Trade in Goods and Services within enabling environment that facilitates local content for: the Energy Sector • Exploration and production of oil and gas The continued development of the energy sector offshore in Barbados. necessitates an enabling environment that promotes the capacity of Barbadian companies to provide • Renewable energy operations. goods and services competitively. Although maximum growth in renewable and sustainable energy will Trade in Energy Specific Objectives depend largely on the international funding available The improvement of trade in energy goods and for the technology, there will also be a significant services requires a sector that: need for local investment and entrepreneurship. The importance of investment and entrepreneurship that • Addresses the barriers restricting relates to trade is encapsulated in Visionary Goal 6. participation in emerging renewable energy markets. Visionary Goal 6: An energy sector that offers significant opportunities for local entrepreneurship • Offers financial terms to encourage small and international investment. businesses to enter the renewable energy market. Overall Objective 7: Encouraging local investment in energy projects and programmes in Barbados, • Provides local investors with opportunities with a view to increasing the number of to be involved in local oil and gas exploration shareholders and players in the various energy projects. sub-sectors. • Allows the flow of information to empower Overall Objective 8: Promoting more local investment and the flow of financial resources. entrepreneurial activities in renewable energy and increasing fossil fuel energy development • Maintains a strong local content supporting the throughout the energy sub-sectors. exploration and production of oil and gas. To this extent, the facilitation of business and trade Policy Measures - Energy Trade within the local energy sector is a key component of To accomplish an enabling environment that will lead the BNEP. Local trade is also important in making sure to a more desirable trade environment, all relevant that the industry has long-term sustainability and that entities in Barbados shall work together to: the economic benefits of development are shared in the local business community. • Strengthen networks between renewable energy businesses to foster greater collaboration. There are currently a number of local enterprises that are supplying renewable energy products and services • Develop a database of potential local projects in in Barbados. The BNEP will provide for a course of renewable and non- renewable energy, and the action to promote the vigorous participation of local investment and skills needed. enterprises in all aspects of the energy sector. These 96 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Minimise all barriers to entering the renewable energy market. • Promote the enabling infrastructure that will encourage the establishment of financial mechanisms to fund renewable energy. • Determine the needs and readiness of local firms and suppliers of goods and services to meet the standards of supply for the offshore oil and gas sector. • Review and adjust government’s regulatory and operational framework to allow an enabling environment for local companies to acquire the standards of supply. • Establish legislation and regulations to govern the modes of supply for electricity from renewable energy sources. 97 97 • Introduce a lifeline rate for persons unable to 4.10 Energy Access and Infrastructure afford the cost of basic energy services. Over the years, Barbados has successfully ensured that its population has access to energy. However, over the next twenty years, the challenge will be to provide 4.11 Energy Investment and Financing affordable energy, as traditional sources will become more difficult and expensive to acquire. The policy will Investment management will determine the success tackle the following: or failure achieved within the sector and its growth in the future. A policy that recognizes the magnitude • Affordable energy for all citizens. of investment required will establish the enabling environment that allows investment to flow. The BNEP • Access to clean and renewable energy. considers a course of action to address the following: The Visionary Goal and Overall Objective that speaks • Investment sources: to this are as follows: • Private sector investment • Public sector investment Visionary Goal 3: An energy sector that offers • Foreign direct investment basic energy products and services that are affordable to local citizens. • Investment Structure: • Debt Overall Objective 2: Achieving affordability and • Equity access to all classes of consumers in energy • Grant products and services. • Resource requirements for energy Energy Access and infrastructure Specific sector development. Sector Objectives Barbados will ensure that accessibility to energy is • Information mobilization and investment. maintained and enhanced by creating a sector that: • Investment scheduling. • Guarantees that access to electricity is extended and maintained for all citizens of Barbados. Investment and Financing Sector Objectives Sound energy investment and financing will see the • Possesses a developed electricity and energy emergence of an energy sector that: infrastructure that allows for a greater degree of distributed generation where financially and • Maintains an optimum level of private and public economically feasible. sector investment for development of energy projects in Barbados. Policy Measures for Energy Access and Infrastructure • Operates with an optimum mix of foreign and local To accomplish an enabling environment through investment for development of energy projects improved energy access and infrastructure, all relevant in Barbados. entities in Barbados shall work together to: Policy Measures Energy Investment and Financing • Establish an energy mix that promotes affordable To encourage sound, practical and timely investment in energy prices. the energy sector, all relevant entities in Barbados shall work together to: • Formulate legislative and regulatory requirements within the energy sector to contain excessive • Establish rules to guide local and overseas pricing. developers on requirements for investing in Barbados’ oil and gas sector. • Promote market structures that encourage transparent, competitive and stable energy pricing. 98 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Create a local content programme for the In some cases, legislation and regulations are in upstream petroleum sector. place, but there are no clear rules or procedures to ensure implementation. In other cases, there • Develop local investment and ownership within the are contradictions in the provisions of the existing renewable energy sub-sector where feasible. legislation, and this creates a level of ambiguity in interpretation. • Promote foreign/local partnerships for investment within the energy sector. There are areas of current legislation which provide for changes to be made at the discretion of the minister • Build a business enabling framework that allows responsible. While, it can be useful for the government for timely and easy establishment of operations. and the person in charge to have the flexibility to change the direction of policy, it can lead to instability • Improve the flow of information within the energy if such changes are made without consideration of the sector to ensure access to all available sources of multi-criteria impact on the wider stakeholder group. financing (equity, debt and grant). Moreover, when such powers of discretion exist • Ensure that a process is in place for government for the Minister, there should be a system of to facilitate the acceptance of renewable energy considerations in place to inform the decisions to proposals and the financing required to implement the extent that it is possible. a project. 4.12 Implementation, Governance and Regulatory Framework It is apparent that despite the technological developments and increase in business activities in new and traditional energy activities, there is a need for clearly defined regulatory frameworks. Such certainty in regulation and decision making helps to give confidence to potential investors and reduce the risk for all the players involved. 99 In other instances, new legislation will be needed, but The energy policy identifies the following priority there are other situations where modifications might geographical areas for renewable energy development. be required to facilitate the policy direction. Legislation The following types of sites are suitable for wind and exists in some areas, but additional legal instruments solar projects e.g. land to be reclassified as Zone A (see and procedural rules are needed to bring it to the point Figure 7) in the Draft Ground Water Protection Zone where it can be implemented. Policy, large waste management sites and large swaths of agricultural land. Potential wind sites are highlighted in Figure 8. The policy encourages mixed use of land. Figure 7: Priority geographical areas for renewable energy deployment 100 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Figure 8: Source: Dr. Thomas Rogers, A Desktop Study into the Wind Resource in Barbados, 2017 With respect to the setbacks for renewable energy • Amend existing legislation and regulation or development, the Town and Country Development promulgate new ones where necessary to Planning Office (TCDPO) is presently addressing ensure responsible market behaviour and this in the regulations in the new Planning and industrial harmonisation. Development Act. • Rationalise the number of existing acts governing Visionary Goal 8 and Overall Objective 3 point to the the sector through the introduction of new key issues of focus in establishing an effective system industry legislation. of governance, regulation and legislation. • Review, on an ongoing basis, the existing Visionary Goal 8: An energy sector that is legal framework for performance, strengths, governed by sound management of energy weaknesses and lessons learnt to formulate resources, and a clear regulatory framework. and implement programmes of legal reform. Overall Objective 3: Establishing a consistent and • Develop regimes for the pricing of electricity comprehensive regulatory framework to govern and petroleum products that will balance activities in various energy sub-sectors. requirements for competitiveness with the long-term viability of the sector. In relation to the governance and regulatory framework, the BNEP shall speak to processes to: 101 102 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Governance and Regulatory Framework Sector “ Specific Objectives The Government of Barbados will seek to establish a sector that: • Establishes clarity in identifying the specific legislation governing business activities in both the renewable, and oil and gas sectors in Barbados. all relevant entities • Develops and identifies the specific agencies responsible for the governance of business in Barbados shall activities in the renewable energy, and oil and gas sectors. work together to • Promotes the use of multi-criteria analysis for decision makers responsible for establishing policy measures. identify priority Policy Measures - Governance and Regulatory Framework geographical areas To accomplish an enabling environment that will lead to a more desirable governance and regulatory framework, all relevant entities in Barbados shall work for renewable energy together to: development. • Undertake a project to establish procedural rules to support all of the existing legislation governing the renewable energy, and oil and gas sectors. • Conduct sensitisation and awareness programmes for all agencies involved in the enforcement of legislation and governance of activities within the energy sector. • Identify priority geographical areas for renewable energy development. 103 “ OUR approach TO designing the targets considered the overall impact of the measures on the economy, government and civil society. 104 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030

SECTION 5 POLICY TARGETS & DEVELOPMENT OF IMPLEMENTATION PLAN 105 Policy Targets and Development of Implementation Plan Given the objectives and measures identified in Section The results of this assessment will form the basis for 4 and the sector targets given in Section 2, a number the Implementation Plan, which will be developed of associated targets are provided here. based on the BNEP. The approach in designing the targets considered In the Implementation Plan, targets will be assigned the overall impact of the measures on the economy, in the sectors, wherever possible, for the measures government and civil society. This technique of outlined in Section 4. assessment is consistent with the Multi-Criteria Approach (MCA) discussed earlier. These sector targets will then be discussed in order to determine the appropriate measures and strategies In this approach, natural gas scenarios and factors such that will be required to achieve the targets. These will as economic deficits, level of taxation, GDP, oil prices be broken down into smaller, five-year time horizons. and costs of tradeable and non- tradeable goods are considered. Below are the suggested Overall Energy Sector targets based on the MCA used. These will form the basis of the Sector Specific Targets. Name of Indicator (Units) Baseline (2015) 2030 Aggregate Energy Intensity (BOE/MUS$) 324 Total Energy Consumption per Capita (BOE/Persons) 5.03 Percent Share of Renewable Energy of Total Energy (%) 2 CO2 Emissions/Final Consumption (kt/BOE) 0.0029 Total No. of Persons Employed in the Energy Sector (No.) N/A Electricity Generation Efficiency (%) 37 Percent Share of Renewable Energy Investment of Total GDP (%) 0.6 Table 5: Main Indicators and Targets for BNEP 106 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 107 “ An important next step, following the development of Specific Sector Targets, will be the implementation of an appropriate monitoring system and suitable indicators. 108 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030

SECTION 6 DEVELOPMENT OF INDICATORS & MONITORING SYSTEM 109 Development of Indicators and Monitoring System An important next step, following the development Establishing the appropriate indicators will be critical of Specific Sector Targets, will be the implementation in determining an effective monitoring system that of an appropriate monitoring system and will allow timely policy updates and revisions to ensure suitable indicators. continuous improvement. A full list of indicators is included at the end of the section. The targets developed will need to be SMART. It is important to note that the Implementation Plan Specific will not only develop indicators and targets, but it will also identify more specific programmes, determine strategies, and assign roles and responsibilities to Measurable various groups, organisations and agencies. There will also be an assessment of resources needed for various actions, and some suggestions of funding options Achievable for consideration. Relevant It is possible that the indicators identified will be used to establish targets for the sector. These may ultimately be mandatory or voluntary. Time bound Decisions on whether to implement mandatory standards will be based on the resources needed to administer and enforce them, and whether they are likely to reduce innovation. The cultural issues related It is expected that these indicators and targets will to the implementation of mandatory standards will include economic indicators that assess the cost also need to be assessed going forward. related to various policy measures. Indicators that relate to aspects of energy efficiency will also be The targets will also need to be considered when included. For example, changes in ‘energy intensity,’ forming any legislation to support the policy and overall and within individual consumption sectors, may the Implementation Plan. Even if the targets are not be useful in assessing the success of current measures. mandatory, the Government of Barbados will need to Other indicators that relate to the natural environment outline a plan of action should targets not be achieved. and social development will also be considered in the short, medium and long term. 110 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 111 ENERGY POLICY PERFORMANCE INDICATORS Performance of Energy Sector AGGREGATE ENERGY INTENSITY (BOE/MUS$) ENERGY INTENSITY BY ECONOMIC SECTOR Energy Intensity Agriculture (BOE/MUS$) Energy Intensity Manufacturing/Industrial (BOE/MUS$) Energy Intensity Construction (BOE/MUS$) Energy Intensity Transportation (BOE/MUS$) Energy Intensity Commercial, Services, Public (BOE/MUS$) Percentage Of Energy From Indigenous Sources (Primary Energy) Ratio Of Energy Imports To Total Imports Energy Consumption Dependency On Energy Imports Total Energy Consumption Per capita (BOE/Capita) Share Of Renewable Energy In The Total Energy Supply (BOE) Total Emissions Intensity With Respect To GDP (Ton/MUS$) RENEWABLE ENERGY Percentage Share Of The Renewable Energy Supply In The Total Energy Supply For Given Period Percentage Share Of The Solar Supply In The Total Energy Supply For Given Period Percentage Share Of The Biomass Supply In The Total Energy Supply For Given Period Percentage Share Of The Bio-diesel Supply In The Total Energy Supply For Given Period Percentage Share Of The Electricity Generated From Renewable Supply In The Total Electricity Generated For Given Period Percentage Share Of The Electricity Generated For Solar Supply In The Total Electricity Generated For Given Period Percent Share Of The Electricity Generated For Biomass Supply In The Total Electricity Generated For Given Period 112 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Baseline 2022 2027 2032 2037 Comment Assessment Adjustment in 2015 Policy Action 324.454 370.506 1169.034 181.683 2048.693 1299.875 2.40% 0.185 5.027 0.02 79.908 2.00% 0.30% 2.10% 14.00% 1.70% 12.30% 113 ENERGY POLICY PERFORMANCE INDICATORS Performance of Energy Sector cont’d Renewable Energy Intensity (BOE/MUS$) Bio-diesel Intensity (BOE/MUS$) Solar Intensity (BOE/MUS$) Biomass Intensity (BOE/MUS$) ELECTRICITY Total Electricity Intensity (BOE/MUS$) Agriculture Electricity Intensity (BOE/MUS$) Manufacturing/Industrial Electricity Intensity (BOE/MUS$) Construction Electricity Intensity (BOE/MUS$) Commercial, Services, Public Sector Electricity Intensity (BOE/MUS$) Transportation Electricity Intensity (BOE/MUS$) Households/Residential Electricity Intensity (BOE/MUS$) Greenhouse Gas Emissions Per Unit Of Electricity Generated 114 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Baseline 2022 2027 2032 2037 Comment Assessment Adjustment in 2015 Policy Action 20.782 2.501 18.282 132.295 31.731 483.260 13.900 841.536 73.367 115 ENERGY POLICY PERFORMANCE INDICATORS Performance of Energy Sector cont’d ENERGY AND TRANSPORTATION Percentage Share Of Biofuels Of The Total Energy Supply To The Transportation Sector Percent Share Of Electricity Of The Total Energy Supply To The Transportation Sector Percentage Share of Hydrocarbon Of The Total Energy Supply To The Transportation Sector The Amount of Energy Consumed By Transportation (KBOE) Greenhouse Gas Emissions Per Unit Of Energy Consumed By The Transportation Sector ENERGY EFFICIENCY AND ENERGY CONSERVATION Residential Sector Total Energy Consumption (BOE) Total Fuel Consumption (BOE) Energy Consumption Per Household (BOE) Electricity Consumption Per Household (BOE) Fuel Consumption Per Household (BOE) Energy Consumption Per Capita (BOE) Electricity Consumption Per Capita (BOE) Energy Efficiency (Energy Consumed Per Unit of Fuel Input) Greenhouse Gas Emissions Per Household Electricity Generation Efficiency (%) ENERGY AND THE ENVIRONMENT CO2 Emissions / Final Consumption (Kt/BOE) CO2 Emissions Intensity (Gg/MUS$) - CARBON DIOXIDE CO2 Industrial Emissions/Industrial Energy Consum. (Kt/BOE) - CARBON DIOXIDE CO2 Industrial Emissions/Industrial Energy Consum. (Kt/BOE) - HYDROCARBONS 116 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Baseline 2022 2027 2032 2037 Comment Assessment Adjustment in 2015 Policy Action 271,297.35 499,491.12 3.44 2.53 6.33 0.98 0.72 0.38 0.37 0.0029 0.0009 2.094 0.0005 117 ENERGY POLICY PERFORMANCE INDICATORS Performance of Energy Sector cont’d CO2 Transport Emissions/Transport Energy Consum. (Kt/BOE) - HYDROCARBONS Per Capita total CO2 Emissions (Gg/khab) - CARBON DIOXIDE Per Capita Total CO2 Emissions (Gg/khab) - HYDROCARBONS Total Emissions Intensity With Respect To GDP (Ton/MUS$) - HYDROCARBONS Percentage Increase In The Use Of Cleaner Technologies ENERGY INVESTMENT AND FINANCING Percentage Share Of Energy Investment Of Total GDP (Current Prices) Percentage Share Of Energy Investment Of Total Investment Percentage Share Of Renewable Energy Investment Of Total Energy Investment Percentage Share Of Renewable Energy Investment Of Total GDP (Current Prices) Percentage Share Of Hydrcarbon Investment Of Total Energy Investment Percentage Share Of Hydrcarbon Investment Of Total GDP (Current Prices) HUMAN RESOURCES DEVELOPMENT Total No. Of Persons Employed In The Energy Sector Total No. Of Persons Employed In The Renewable Energy Sector Total No. Of Persons Employed In The Energy Efficiency Sector Total No. Of Persons With Certification In Renewable Energy Total No. Of Institutions OfferIng Certified Training In Renewable Energy Total No. Of Institutions OfferIng Certified Training In Energy Efficiency 118 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Baseline 2022 2027 2032 2037 Comment Assessment Adjustment in 2015 Policy Action 0.0001 29.4504 0.0063 0.4083 119 ENERGY POLICY PERFORMANCE INDICATORS Performance of Energy Sector cont’d CROSS-CUTTING SECTOR AGRICULTURE Total amount of Land Used To Produce Agro-energy Crops Total Amount Of Agricultural Land Used In The Production of Energy Total Energy Used In Agricultural Production (BOE) Percentage Of Energy From Renewables Percentage Of Energy From Bagasse Percentage Of Energy From Bioenergy Percentage Of Energy From Local Sources MANUFACTURING/INDUSTRIAL Total Energy Used In The Manufacturing/Industrial Production (BOE) Percentage Of Renewable Energy Used In Manufacturing/Industrial Production Percentage Of Cleaner Energy Technologies In Manufacturing/Industrial Production Percentage Increase Use Of Renewable Energy Percentage Increase Use Of Cleaner Energy Technologies WATER MANAGEMENT Total Energy Used In Water Production and Distribution Percentage Of Renewable Energy Used In Water Production and Distribution Percentage Of Cleaner Energy Technologies Percentage Increase Use Of Renewable Energy Percentage Increase Use Of Cleaner Energy Technologies 120 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Baseline 2022 2027 2032 2037 Comment Assessment Adjustment in 2015 Policy Action 0 0 22,928.57 0 182,865.80 2.27% 121 ENERGY POLICY PERFORMANCE INDICATORS Performance of Energy Sector cont’d TOURISM Total Energy Used In Tourism Percentage Of Cleaner Energy Technologies Percentage Increase Use Of Renewable Energy Percentage Increase Use Of Cleaner Energy Technologies WASTE MANAGEMENT Total Amount Of Waste Used In The Production Of Energy (MT) ECONOMIC CONTRIBUTION AND COST Energy Contribution Economic Output BDS$ Cost Of Energy BDS$ ($/BOE) Cost of Electricity BDS$ ($/kWh) Average Electricity Rate - Utility ($/kWh) AVERAGE UTILITY RATE - INDEPENDENT POWER PRODUCER ($/kWh) Wind Solar Electric Biomass Biogas Waste to Energy Other 122 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 Baseline 2022 2027 2032 2037 Comment Assessment Adjustment in 2015 Policy Action $ 300.00 $ 0.37 $ 0.43 $ 0.315 $ 0.416 123 REFERENCES 124 BARBADOS NATIONAL ENERGY POLICY 2019 - 2030 • Alexander Ochs et al., (2015). 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