Grenada's reliance on fossil fuel imports
Grenada, an island nation in the Caribbean comprising Grenada, Carriacou, and Petite Martinique, relies significantly on fossil fuel imports to meet its energy needs. As of 2021, the country consumed about 1 terawatt hour (TWh) of energy, with refined petroleum accounting for nearly all its energy supply, particularly in transportation and residential sectors. Despite over 94 percent of the population having access to electricity, the energy sector faces challenges including high transmission losses and vulnerabilities to natural disasters, which have historically disrupted energy distribution.
In recent years, there has been a growing recognition of the economic and environmental risks associated with this heavy dependence on imported fossil fuels. Although Grenada’s government has made limited progress in integrating renewable energy solutions, it has initiated efforts to develop a sustainable energy plan emphasizing energy efficiency, conservation, and the exploration of renewable sources such as solar, wind, biomass, and geothermal energy. The country has also engaged in various regional renewable energy programs aimed at enhancing its energy resilience. With ongoing energy challenges and a proactive stance towards sustainability, Grenada is exploring pathways to diversify its energy portfolio and reduce its reliance on fossil fuels.
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Grenada's reliance on fossil fuel imports
Official Name: Grenada.
Summary: The state of Grenada includes the islands of Grenada, Carriacou, and Petite Martinique. Grenada relies heavily on fossil fuel imports, but there is interest in renewables.
In 1960, Grenada Electricity Services Limited (GRENLEC) gained the exclusive right to generate, transmit, distribute, and sell electricity to the islands of Grenada, Carriacou, and Petite Martinique for a period of eighty years, from January 1, 1961, according to Electricity Supply Ordinance 25. In 1994, the company went public, with the government of Grenada retaining 10 percent of the company and selling 50 percent of its shares to a US investor, WRB Enterprises, and the rest to employees and Caribbean nationals.
In 2021, the citizens of Grenada used an average of 9,432 kilowatt hours (kWh) of energy per person. The nation as a whole produced about consumed about 1 terawatt hours (TWh) of energy that same year. According to the World Factbook, more than 94 percent of the country had access to electricity as of 2022, with Grenada producing about 0.25 TWh of electricity.
Imported oil products made up almost all of the nation’s supply allocated to transportation, industrial, residential, and commercial needs. Biomass made up the remaining percentage. In 2015, refined petroleum consumption was 2,300 barrels per day, with imported oil making up nearly all of that was consumed.
Firewood is the primary energy source for cooking in residential and rural areas. Bagasse (the fibrous matter that remains after sugarcane is crushed) is used as fuel by the sugarcane industry. Given that the annual bagasse production has reached the equivalent of 3,800 barrels of oil, there is potential for further development of this energy source. Another biofuel source that is being developed is waste from nutmeg processing.
Grenada’s energy sector faces a number of efficiency barriers, which in turn impact the development of the state. As of 2022, about 15.9 million kWh of generated electricity was lost in transmission, considered excessively high, given that transmission and distribution lines are short. The increase in price of imported oil and shifts in the US dollar have also affected the energy sector, as the costs are handed down to the customer and the government is unable to invest in infrastructure upgrades. The country’s energy infrastructure is also vulnerable to natural disasters, such as Hurricane Ivan in 2004, which resulted in complete destruction of the entire electricity distribution system, and Hurricane Beryl in 2024, which 97 percent of the island without power.
Sustainable Energy Development
As of the 2020s, the government of Grenada had done little to bring renewable energy into the mix. However, the government did acknowledge that its dependence on importation of fossil fuels poses an economic and environmental risk.
In addition, the government of Grenada has worked with key stakeholders from all sectors of society to develop a sustainable energy plan, which was released in 2002 and revised in 2011. Included in the plan were the goals of providing and ensuring adequate and reliable energy services that sustain economic development, attract both local energy sector development and international investment, promote energy efficiency and conservation, and protect the local and global environment through maximizing renewable energy.
The plan recommended that renewable energy assessments for wind, biomass, geothermal, hydropower, and solar energy be conducted. According to the U.S. National Renewable Energy Laboratory, solar potential is estimated at 25 to 50 megawatts; 0.6 megawatts have been installed, as of 2015. A number of renewable energy programs in the region have been initiated, including the Pilot Program for Climate Resilience, the Caribbean-GTZ Renewable Energy Program, the Grenada-Caribbean Solar Finance Program, the Caribbean Sustainable Energy Program, and the Caribbean-National Renewable Energy Laboratory Cooperation.
Bibliography
"Energy Snapshot: Grenada." Energy Transition Initiative, March 2015, www.nrel.gov/docs/fy15osti/62699.pdf. Accessed 1 Aug. 2024.
"Grenada." CIA World Factbook, 29 July 2024, www.cia.gov/the-world-factbook/countries/grenada/. Accessed 1 Aug. 2024.
"Grenada." US Energy Information Administration, 2023, www.eia.gov/international/overview/country/GRD. Accessed 1 Aug. 2024.
"National Energy Policy." Organization of American States, November 2011, www.oas.org/en/sedi/dsd/energy/doc/nep‗grenada‗web.pdf. Accessed 1 Aug. 2024.
Ritchie, Hannah, and Max Roser. "Grenada: Energy Country Profile." Our World in Data, 2024, ourworldindata.org/energy/country/grenada. Accessed 1 Aug. 2024.