Message from

Thomas M. Scheutzlich

Principal Advisor CREDP-GTZ

Sky- rocketing oil prices on the world market have had an immediate and dramatic increase on the national import bills for fossil based economies. These price hikes, results in further increases in the cost of electricity and transport. Small island states like those of the Caribbean Region, which are heavily dependant on fossil fuels, are particularly vulnerable. This problem is compounded by the fact that consumers in the region pay some of the highest electricity tariffs in the world. While the consequences for domestic and commercial consumers are severe, the negative impact on the tourism industry could be even more severe, given that for many Caribbean Islands it is the largest economic sector and foreign exchange earner.

The ongoing price escalation on the world oil market puts the economical, political and social development in the Caribbean at risk and Caribbean governments are actively seeking ways out of that situation. High oil prices are not the only justification for action in the energy sector. While there are political, economic and social dimensions of the dependency on the imported fossil fuel, there is also increasing awareness and concern among governments and other stakeholders in the energy sector of Greenhouse Gas emissions (GHG) associated with the use of fossil fuel for energy conversion and its impact on the world climate.

For politicians, policy and decision makers, these considerations are not only mandatory but long overdue. It is absolutely necessary for the region to give serious thought, followed by concrete action to elaborate a consistent energy policy and an implementation strategy for the sustainable development of their country in terms of energy. The absence of energy policies in most of the Caribbean countries leads to reactive rather than proactive measures. Governments and electric utilities alike are forced to react on short notice in an emergency-like manner rather than to act judiciously on the basis of a solid sustainable energy sector strategy, derived from a well-balanced mix of indigenous energy sources, energy efficiency measures and imported fuel as required.

Despite the fact that Caribbean Countries are blessed with substantial wind, solar, hydropower, biomass and geothermal resources, these renewable energy sources provide less than 3 % of the region's commercial energy demand. The reasons for that are seen in the existence of a number of barriers such as the lack of consistent energy policies, lack of awareness and knowledge about alternative energies and lack of confidence of the financial sector such as the banks in investment in technologies which makes sourcing financing for such projects extremely difficult.

The removal of these barriers is the main objective of the Caribbean Renewable Energy Development Programme (CREDP) which is being implemented by the Caribbean Community (CARICOM) Secretariat since 2003 with funding from UNDP/GEF and the Government of Germany through its Technical Assistance Agency GTZ. To that end, CREDP offers to CARICOM member states assistance in energy policy, renewable energy project development, tailor-made capacity building and public awareness.

Having highlighted our limitations in meeting some of our energy needs, it is my hope that we move forward, from the successes we’ve achieved thus far such as developing draft Sustainable Energy Plan and a draft National Energy Policy.