Saint Vincent and the Grenadines's dependency on imported energy
Saint Vincent and the Grenadines is a Caribbean nation heavily reliant on imported fossil fuels due to its lack of domestic oil and natural gas resources, resulting in a vulnerability to fluctuating energy prices. The country consumes around 2,000 barrels of oil per day, importing primarily from Puerto Rico and other Central American producers. This dependency not only impacts the economy but also exposes the nation to environmental challenges like rising sea levels and increased hurricane activity. The government has recognized the need for improved electricity generation and distribution systems, as well as the incorporation of new technologies to create a more resilient energy sector.
Efforts are underway to reduce this reliance through various Caribbean initiatives aimed at promoting renewable energy. Programs such as the Caribbean Renewable Energy Development Programme (CREDP) focus on developing indigenous renewable energy sources, including hydropower and wind resources. Currently, about 15% of the country's electricity comes from hydropower, with ongoing plans to harness geothermal energy as well. The government is also exploring energy efficiency measures and promoting private-sector involvement to enhance competitiveness and lower energy costs. Overall, the journey towards a more sustainable energy future reflects both the challenges and opportunities faced by Saint Vincent and the Grenadines in navigating its energy landscape.
Saint Vincent and the Grenadines's dependency on imported energy
Official Name: Saint Vincent and the Grenadines.
Summary: The Caribbean island nation of Saint Vincent and the Grenadines imports fossil fuels and has no resources in oil or natural gas, making the country vulnerable to fluctuating energy prices.
Formerly a British possession, Saint Vincent and the Grenadines (SVG) became autonomous in 1969 and independent in 1979. Because of high unemployment, Islanders migrate from the lower-middle-income country for work. The economy depends on bananas and other seasonal agriculture, construction, and tourism, as well as remittances from overseas. The Grenadines attract most of the country's 71,000 tourists a year (2014 estimate), and Saint Vincent has an offshore banking sector. Growth in gross domestic product (GDP) was 6.02 percent in 2023, down from 7.16 percent the previous year and 0.75 percent in 2021, when the global COVID-19 pandemic's effects were still being felt in the travel and tourism sector. The public debt burden in 2022 was nearly 88 percent of its GDP, limiting government efforts to provide social programs.
Importing and Volatility
There is no oil production or export, and in 2022 consumption was 2,000 barrels per day. As a member of the Caribbean Community (CARICOM), SVG imports fossil fuels from Puerto Rico and other Central American oil producers. Proven reserves of oil and natural gas are zero, and there is no consumption, export, or import of natural gas. Because the islands were greatly dependent on imported petroleum, they are vulnerable to volatile energy prices as well as the environmental impacts, including rising sea levels and stronger and more frequent hurricanes.
Installed electricity generating capacity in 2022 was 54,000 kilowatt-hours. Consumption of electricity was more than 162 million kilowatt-hours, ranking the country 193rd in the world. SVG does not export or import electricity. Its energy plan reported that SVG needs improved transmission and distribution of power and needs to incorporate new and commercially proven technologies into its power-generating systems. It needs to develop a stronger private electricity-generating sector and more equitable access to the grid.
Caribbean Initiatives
SVG has long been involved in Caribbean initiatives. In 1998, sixteen Caribbean countries established the Caribbean Renewable Energy Development Programme (CREDP) to remove barriers to development, use, and commercialization of renewable energy. The goals were to cut carbon dioxide emissions, create an indigenous renewable energy sector, and develop a regional program with projects supporting one another. CREDP became fully operational in 2004. Under its auspices, the $1.6 million Caribbean Renewable Energy Technical Assistance Facility (CRETAF) provides environmental impact statements, resource assessments, and other documents that developers need to get financing for high-risk but qualified projects. CREDP coinvests with regional financial institutions in wind, small hydropower, minihydropower, geothermal, and biomass grid-connected projects, as well as off-grid microhydropower, photovoltaic, and solar water heating projects. Solar collectors are in wide use in SVG.
With European Union (EU) funding, the Organization of American States (OAS) Caribbean Sustainable Energy Program (CSEP) ran from November 2008 through October 2011. CSEP goals included the adoption of policies and laws to remove barriers to the sustainable energy market. SVG was one of the seven countries in the program; the others were Antigua and Barbuda, Dominica, the Bahamas, Grenada, Saint Kitts and Nevis, and Saint Lucia.
The same seven Caribbean nations participated in the Low Carbon Communities in the Caribbean (LCCC) renewable energy strategy. This program, sponsored by the US Department of Energy, began in June 2009 to offer technical assistance and collaboration in transforming the renewable energy market. To reduce carbon dioxide emissions by increasing energy efficiency and switching to renewables, the participants were to become competent in performing local energy efficiency audits, deploying technology, and recognizing and evaluating their indigenous renewable resources.
Hydropower and Wind Resources
Since 2005, under the CREDP and with German assistance, the government of SVG has been developing an energy plan that includes evaluation of hydropower and wind energy resources. Approved in 2009, the plan calls for reducing dependence on imported fossil fuels, which will improve the balance of trade and provide funding for social and economic development.
SVG's history with hydropower dates to the 1950s. The country has steep terrain and many waterways where such projects can be located. Three hydropower plants on Saint Vincent provide about 15 percent of SVG's electricity. In 2018, the government commissioned a solar photovoltaic plant at the Argyle International Airport. When it begins operations, it is expected to provide about 765,000 kilowatt-hours of electricity a year.
Geothermal energy is another potential generator of electricity because of the islands' location on a volcanic arc. In 2015, the government signed an agreement to develop a 10 MW geothermal power plant. Plans were later downgraded to a 5 MW plant, but in 2024, the government said it remained committed to the project.
Energy efficiency should rise with the development of energy audits for commercial users. Aside from upgrading storage, emphasizing conservation, and developing stable and secure supplies of petroleum, other measures include restrictions on imports of old and inefficient automobiles, substituting liquefied petroleum gas (LPG) for gasoline in taxis, and supporting more use of public transport (which needs to be upgraded to burn petroleum more efficiently).
Utilization of Indigenous Resources
Other than conservation and efficiency, expanded exploitation of indigenous resources is key. This exploitation will occur through liberalization of the energy market and promotion of private-sector involvement, with the expectation that competition will lower prices. Subsidies to customers will be minimal, and rates will reflect actual full costs. Potential renewable improvements might include a site survey of all the islands, local expertise in renewable systems throughout SVG, more private-sector projects, an education program, and possible importation of biofuels rather than fossil fuels. Solar thermal collectors for heating water might become mandatory.
Bibliography
Caribbean Community Secretariat. “Caribbean Renewable Energy Development Programme.” www.credp.org/.
Joseph, Jacqueline. "Saint Vincent's Energy Market: Current Trends and Future Projections." CARILEC, 27 July 2023, carilec.org/saint-vincents-energy-market-current-trends-and-future-projections/. Accessed 9 Aug. 2024.
Saint Vincent and the Grenadines. “Sustainable Energy for SVG: The Government’s National Energy Policy.” March 2009. http://www.scribd.com/doc/18176549/National-Energy-Policy-of-St-Vincent-and-the-Grenadines-March-2009.
"Saint Vincent and the Grenadines." US Energy Information Administration, 2023, www.eia.gov/international/overview/country/VCT. Accessed 9 Aug. 2024.