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VOLUME 27

NO. 1

MARCH 2012

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CEIS Update, VOLUME NO. 1 MARCH 2012 Information System A Publication of the27Caribbean Energy

In our Update on Energy Developments, we have

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showcased the OLADE Energy Efficiency seminar and launch of the RED-LAC-EE network; as we shine light on WELECTRICITY’s new strategic partnership. Consumer and Energy reveals the award-winning LED L Prize Lamp from Philips Lighting. With a wealth of experience in energy and environment sectors, Mr. David Barrett is our Outstanding Caribbean

Image: Nutdanai Apikhomboonwaroot / FreeDigitalPhotos.net

Energy Feature. In Energy & the Environment“Vestas believes in

the Caribbean”- find out more about their track record in the Caribbean. In Energy For Young Minds, we take on a past examination challenge and learn more about How solar cells and panels work.

For these and more, go inside and also enjoy our Entertainment Page, Events Listing and News on happenings from across the CARIBBEAN! www.ceis-caribenergy.org


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NETWORK NEWS ner, for which the company is actively searching.

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FUEL PRICE HIKE FOR ANTIGUA & BARBUDA

BPC holds five petroleum exploration licenses covering 3.87 million acres in Bahamian territorial waters and its maritime exclusive economic zone (EEZ). Four of the licenses, named Bain, Cooper, Donaldson and Eneas, are in the south-west Bahamas near the Cuban border. They vary in acreage from 775,468 acres to 780,316 acres. A fifth licence is held through a wholly-owned subsidiary of BPC, Island Offshore Petroleum Limited. The licenses expire on April 26, 2012, according to BPC’s web site.

A ntigua and Barbuda have become

CORAL REEF RESEARCH EXPEDITION TO BE LAUNCHED IN THE BAHAMAS

the latest in a string of Caribbean countries to announce a hike in fuel prices.

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BBC Caribbean reported that Antiguans will be paying 7% more for petrol and diesel at the pump.

BAHAMAS OIL EXPLORATION COMPANY CONFIDENT IT WILL START DRILLING IN 2012

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Motorists across the Caribbean have seen a sharp increase in the price of fuel since the beginning of March 2011. The unrest in the Middle East is said to be the main factor helping to push up world oil prices.

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Several countries, including Dominica, Jamaica, and St Maarten, have announced increases in fuel prices since the beginning of March.

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he Bahamas Petroleum Company (BPC) is optimistic that it will begin drilling in 2012. BPC chief executive officer Dr Paul Crevello revealed that the company and the government are working on establishing the necessary regulations so BPC can further conduct its operations in the country, and Crevello is feeling positive about the progress being made. Crevello mentioned that over $14 million to date has been spent by BPC. The oil exploration company raised around $73 million in March. Crevello outlined some of the costs associated with drilling, with seismic surveys ranging from $20-$35 million. Drilling a well can cost from $80-$150 million. The BPC executive said these will require the finding of a business part-

he Living Oceans Foundation has chosen The Bahamas for the opening of its Global Reef Expedition, a five year, worldwide study of the health of the coral reef environments. In making the announcement, Captain Philip Renaud, USN (ret), the Foundation’s executive director, noted that up to 80 percent of all life on the earth is found in the oceans, and that the health of the coral reefs is critical to the health of many species that inhabit the oceans. Under the banner of Science Without Borders, the ambitious Global Reef Expedition will be outfitted, equipped and financed by the Khaled bin Sultan Living Oceans Foundation, which is headquartered in the Washington DC suburb of Landover, Maryland. The Global Reef Expedition will begin with six months of research in strategic parts of The Bahamas, beginning with the Cay Sal Bank April 26 to May 18. It will then travel to the southernmost district to study the Hogsty Reef and other areas off the Inagua Islands in August, and then on to Andros and Abaco in October.


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Chavez Cuba, partners to drill 5 oil wells this summer wants Cuba and Barbados partner companies will to sign begin drilling oil wells PetroCaribe five in the Gulf of

Barbados to sign on to the PetroCaribe Energy Coop-

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eration Agreement, which allows Caribbean nations to

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Venezuela’s president Hugo Chavez would like

Mexico this summer in hopes of locating enough crude to justify the costly exploration. Cuba’s domestic production is exclusively heavy oil with a high sulphur content. Its off shore Gulf waters could contain large quantities of lighter, sweet crude, although a test well in 2004 turned up only modest deposits.

have oil and petroleum products from Venezuela on a

deferred payment scheme. This is one of two wishes

which new Venezuelan ambassador to Barbados Jose Gomez says Chavez has for relations between the two

countries. The other is that Barbados be represented

Studies since then have pointed to “oil traps” in the marine floor, persuading partner companies to take on the expensive task of exploration in deep water, Marrero said during an earth sciences convention. The drilling is expected to run through 2013.

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when the proposed grouping of the Community of

Latin American and Caribbean Nations is formed. After making a courtesy call on THE NATION’s Editor-In-

Chief Kaymar Jordan yesterday, Gomez said he had conveyed the message in his meetings with Govern-

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ment officials during the Barbados visit. He said Barbados had initially expressed concerns about payments

to the PetroCaribe scheme, but he explained a new scheme had been drawn up which eliminated those concerns.

Late Prime Minister David Thompson had said

Barbados would not shift towards the oil agreement with Venezuela and the agreement with neighbouring Trinidad and Tobago would remain intact. .

Source: bunkerville.wordpress.com


CEIS Update, June 2011

| 5 The contract for the over 4.5 million euros project was signed in Roseau last week. The contract was awarded to the Iceland Drilling Company and is being funded by the Agence Francaise de Development, the European Union and the government of Dominica.

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he Minister for Environment of Dominica, Kenneth Darroux, has been lobbying for funds to be made available to Dominica and the rest of the Organisation of Eastern Caribbean States (OECS) by the global climate change agency to implement climate change related projects.

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Charge d’Affaires of the EU delegation to Barbados and the Eastern Caribbean, Hubert Perr has voiced support for the project.

Meantime, Minister for Energy Rayburn Blackmoore said that the move towards this renewable source of energy is a welcome one for the Government and people of Dominica. Prime Minister and Minister for Finance, Roosevelt Skerrit, believes that the contract is being signed at a critical time in the global energy sector.

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The minister, recently added a global change climate change agency meeting in Belize, and took the opportunity to voice Dominica’s needs as it pertains to climate change issues including adaptation and mitigation.

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The minister said he was able to convince the meeting that the OECS sub region should be included in the budget of the climate change agency. The minister said his ministry will seek to write appropriate projects that will be considered for funding by the Global Change Climate Agency.

DRILLING OF GEOTHERMAL WELLS IN DOMINICA TO COMMENCE LATE JULY

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US$40M PLEDGED TO SAVE GUYANA’S RAINFOREST

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orway has pledged to deposit US$40 million into a World Bank fund as part of an ongoing agreement to help Guyana preserve its lush Amazon rainforest.

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MINISTER LOBBIES FOR FUNDS FOR DOMINICA TO IMPLEMENT CLIMATE CHANGE

Project Coordinator, Jason Timothy, explained that the long term objective is to confirm the nature and extent of the potential geothermal resource at various sites within the Wotten Waven area to determine the capacity of wells for sustainable commercial exploitation in generating electric power. The European Union is providing 1.5 million euros grant funds towards the project.

he drilling of three exploratory geothermal wells in the Roseau Valley in Dominica is expected to commence at the end of July this year.

The South American country is being rewarded for maintaining very low rates of deforestation, lower than previously anticipated, Erik Solheim, Norway’s environment minister, said at a ceremony late Thursday. Norway previously had deposited US$30 million into the account as part of a 2009 agreement under which Guyana could receive up to US$250 million by 2015 as an incentive to protect its forests through sustainable mining, timber harvesting and other projects. Guyana has sought up to US$580 million a year from nations and institutions to protect its 37-million acres (15 million hectares) of jungle. Norway’s initial deposit of US$30 million will not be released until both countries agree on how the money will be used. One of the proposed projects includes providing electricity to indigenous communities via solar and hydroelectric power.


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carries a one well commitment and now must be completed by December 15, 2013.

Jamaicans are turning out in large

Observers examine solar panel on a roof The distribution of the fluorescent lamps will have a significant impact on the national energy bill, as persons are swapping bulbs of up to 150 watts for 14-watt fluorescent lamps.

Chapman is a qualified reserves evaluator and is independent of Sagres. Sagres holds a 100% interest in each block and is currently seeking a partner to proceed with exploration drilling.

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numbers to exchange high energy consuming incandescent light bulbs for energy saving fluorescent bulbs, in the final phase of the Cuba-Jamaica Compact Fluorescent Lamp (CFL) Project, commonly called the Cuban light bulb programme.

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JAMAICANS SEE THE LIGHT IN FINAL PHASE OF THE CUBAJAMAICA COMPACT FLUORESCENT LAMP (CFL) PROJECT

Under Phase 1, Sagres has conducted bathymetric, geologic, seismic, and environmental surveys of blocks 9, 13, and 14, and regional geologic surveys of the adjacent Walton and Lower Walton basins, and the island of Jamaica. Sagres has met all the work commitment under Phase 1.

The project was restarted on March 26 in North West St Andrew, and has since covered over 30 communities.

JAMAICA EXTENDS OIL EXPLORATION FOR ADDITIONAL NINE

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In South St Andrew, at the People’s Church complex, Maxfield Avenue, for example, some 5,000 compact fluorescent lamps have been exchanged. There are several other centres in the area where lamps are being distributed.

The distribution programme will continue in St Thomas Eastern and Western from April 15 to 20.

The newly released blocks in the Lower Walton Basin lie immediately south and adjacent to Sagres’ blocks 13 and 14. The deep-water bid round is scheduled to close September 1, 2011.

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Jesus Diaz Camargo and Carlos Collado Martinez, representatives of the Ministry of Basic Industries in Cuba, who were at the People’s Church distribution centre, both expressed satisfaction with the process.

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he Petroleum Corporation of Jamaica (PCJ) has approved a ninemonth extension of the initial exploration period of offshore blocks licensed to Sagres Energy Inc., an international oil and gas exploration company with interests in Guyana, Colombia and Jamaica.

The initial exploration period, Phase 1 will now end December 15, 2011, by which time Sagres must elect whether to enter Phase 2. Phase 2 of the initial exploration period for each block

EDITORIAL STAFF

Managing Editor:

Tricia Williamson

Associate Editors:

Andrew Woods, Carol Thompson & Curtis Deenah

D. Maria Cornwall

Editorial Assistant:

FULL SPEED AHEAD FOR ST KITTS WIND ENERGY PROJECT

Approximately

10 to 15 percent of the overall capacity of the St Kitts national grid will be supplied by wind energy upon the completion of Phase I of the North Star Project at Belle Vue, St Kitts. This is according to Mark Tippit, founder and president of North Star, a US-based real estate and renewable Cont’d on page 32


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UPDATE ON ENERGY DEVELOPMENTS

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Jatropha (Jatropha curcas L.) (Euphorbiaceae) commonly known as physic nut is an oil plant that is found in sub-tropic and tropical regions of the world. It is known to have more than 200 common names and is found to grow wild or as a hedge specifically as live fencing by cattle farmers. Currently it is cultivated for its oil and production of bio-fuel for use in diesel engines. Jatropha is believed to have its origin in Central America. Its use also goes back to World War II, when the oil was utilized in motors by military teams.

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JATROPHA DIESEL PROCESSING CENTER at Central Farm in Belize A national two year project titled: “Jatropha Innovation Centre for Community-Adopted Technologies and Development in Belize” was approved for funding by the Organization of American States (OAS), with plans for execution by Central Farm Research and Development Department (MAF). MAF, is responsible for the establishment of a Jatropha curcas Oil Extraction and Utilization Centre that will provide processing and also demonstrate use of jatropha oil as an energy option.

Several development organizations and international cooperation, such as the World Bank, OAS and some NGO’s are developing similar projects based on the cultivation of the physic nut and uses of its fuel by small farmers in zones with unfavorable agro-ecological conditions. The economy of Belize has traditionally depended on agriculture, (bananas, sugar and citrus) which accounted for 12.7% of GDP and close to half of exports in 2005. While significant progress has been achieved, the alleviation of poverty continues to be a major challenge for Belize. Poverty levels based on the 2002 Living Standard Measurement Survey were unchanged at 33.5 percent compared to the 1996 survey. Many poor farmers can benefit from the production of bio-fuel, especially on lands not suitable for food production. The general purpose of this project is to establish a Jatropha


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Innovation Centre to utilize Jatropha curcas and its oil for community development. This will generate income, rehabilitate degraded land and reduce Green House Emissions. Furthermore, the Centre plans to produce information and educational material on the management of commercial jatropha production.

• Addressing farmers’ concerns that labor costs for manual harvesting may challenge profitability • Watching the prices for fossil fuel, as a fall in the future could affect farmers with large scale investments

its adoption by small farmers. A promotional video and brochures were recently produced and distributed to the six agricultural district offices. The Jatropha Innovation Centre will additionally function for the production, storage and processing of jatropha oil. A five acre jatropha grove is being established at Central Farm and will serve as a training and data collection facility for interested farmers, researchers and scientists. Certain zones have had high production performances while other regions of the world including Belize have seen much variation in production.

• Increasing local awareness on the benefits of renewable energy

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The implementation of the program has three pillars: institutional, regulatory, and human capacity building and pivots around the transfer of knowledge from the centre and its regional/local partners to Belizeans. Activities will include provision of hands-on workshops in grove cultivation, processing of diesel and using it in small machinery.

production, which is necessary before establishment of groves and creation of a cost effective processing unit.

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• Identifying characteristics such as adaptability, pests & disease tolerance, homogeneous flowering and high oil

Previously, a lack of availability of seed, technical assistance and information about management and use of Jatropha curcas hindered

Although the subject of renewable energy isn’t new to Belize, biodiesel and agro-fuel adaptability by small farmers is a fresh and growing concept. Central Farms’ collaborative efforts plan to identify factors and make recommendations for promotion of bio-fuel production for small scale farmers which will assist in the alleviation of rural poverty.

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Targeted concerns for the project include but are not limited to the following:

International advances in jatropha diesel have allowed for more efficient and mobile equipment to be available; however, these advances are customized for conditions in various domestic and regional markets.

PhotohighlightsoftheSRCAnnualPosterCompetition2011


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ENERGY FEATURE

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AnOutstandindingCaribbeanEnergy Private Sector Personality Position: Team Leader and Energy Specialist -PSOJ/CAIC (2010-2011) Location: Jamaica, Trinidad & Tobago Experience: Capacity Building of Caribbean Private Sector Environmental and Energy Management Capabilities FED/2010/239-660 Technical Energy and Environmental Audits in consortium with Egis Bceom International (France). An EU funded project; In progress. -------------------------Position: Team Leader (2010-2011) Location:St. Vincent & the Grenadines Experience: Energy efficiency study in the Public Sector of the Islands of St Vincent and the Grenadines under contract with Egis Bceom International (France). An EU funded project through the SFA 2006 fund. This was completed October 2010. -------------------------Position: Energy Consultant (20092010) Location: Jamaica and the Bahamas Experience: Conducted detailed Energy Audits of Small and Medium Size Enterprises (SME) in Jamaica and the Bahamas Islands as a Caribbean Expert on behalf of ALLPLAN GmbH, on contract with the Inter-America Investment Corporation (IIC). -------------------------Position: Energy Consultant (20092010) Location: Jamaica and Belize Experience: Carried out walk through Energy Audits of Small and Medium Size Enterprises(SME) in Jamaica and Belize as a Caribbean Expert on behalf of ECONOLER on contract with the Inter-America Investment Corporation (IIC). --------------------------

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orn Frank Eaton Haughton, this Energy Efficiency and Alternative Energy Specialist is an award winning Jamaican son and the Managing Director of Econergy Engineering Services Ltd a relationship that has spanned 29 years.

Mr Eaton Haughton

• Minister of Commerce Science and Technology’s, Innovations Award in Industry (2005).

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His education includes a Diploma in Energy Resources and Energy Saving from the U.N.D.P/ I.L.O. International Centre for Advanced Technical and Vocational Training (1981) encompassing areas such as Solar Photovoltaic systems, (France); Waste to Energy Systems, (Italy); Biogas Generation and Use, (Germany); Cogeneration Systems, (Germany); and Wind Energy, (Netherlands). He also has earned a Full Technological Certificate in Plant Engineering from the City and Guilds of London Institute (1973).

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Mr. Haughton has been the recipient of several awards including national accolades such as the

His membership includes professional bodies such as a Professional Engineer in the Jamaica Professional Engineer’s Registration ; member of the Association of Energy Engineers (AEE) and member of the American Society of Heating Refrigeration and Air Conditioning Engineers (ASHRAE).

• Government of Jamaica, for Contribution to Apprenticeship Training in Jamaica (1981) • NDB Energy Credit Fund, for Contribution to Energy Conservation in Jamaica (1985) • National Award for Entrepreneurship, 3rd Place, (1997) • St Ann Chamber of Commerce Corporate Award (2000) • ENCON Award for Outstanding Contribution to National Energy Conservation (2001) • Governor General’s Achievement Award (2002)

Over the years he has acquired a wealth of professional experience, a few are detailed here: Position: Managing Director/Energy Engineer (1980 - Present) Experience: HVAC Equipment Maintenance, and Energy Services Company. Provide Consultancy services in Energy Efficiency Improvements and alternative energy utilization. Implement energy efficiency and alternative energy projects. --------------------------

Cont’d on page 28


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ENERGY FEATURE cont’d Mr Eaton Haughton Cont’d from page 14

air conditioning heat exchangers, among other measures. -------------------------Position: Team Leader - Energy Consultant (1998-2000) Location: Jamaica Experience: Carried out a detailed energy audit and investigate the 9-MW cogeneration potential for Kaiser Bauxite Company Processing Plant. -------------------------Position: Team leader - Energy Consultant (1997-1998) Location: Grenada Experience: Trained engineers and technicians on assignment from the Government of Grenada and OLADE/UNDP, in Design, manufacture and installation of solar water heating systems. Designed and installed (3) Public Hospitals solar water heating for Grenada and Carracou,

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Position: Energy Consultant (2006) Location: Jamaica Experience: • Completed an energy audit of the University of the West Indies (UWI) Mona Campus and (1995 and 2006) University Hospital. Completed a Feasibility Study for the Installation and operation of a 1.5-MW Biogas Fueled Cogeneration Plant for the Mona Campus. -------------------------Position: Energy Services Consultant/Contractor (2005) Location: Jamaica Experience: Completed a detailed Energy Audit at the National Commercial Bank Headquarters. Installed a 350-kVAr variable capacitor bank for a Power Factor Correction system -------------------------Position: Energy Services Consultant/Contractor (2005) Location: Jamaica Experience: Designed and installed a high efficiency chilled water system with refrigerant-to-water heat exchanger, Thermal energy storage tank, and energy recovery ventilation system for the Bustamante Hospital for Children operating theatre Supplied and installed a variable capacitor bank for power factor correction. -------------------------Position: Team Leader - Energy Services Consultant/Contractor (2003-2005) Location: Jamaica Experience: Completed detailed energy audit of Denoes and Geddes, Red Stripe Beer Brewery; Co-designed and installed air conditioning thermal energy storage system (TES) Designed and installed high efficiency water cooled air conditioning system. -------------------------Position: Energy Consultant (20002004)

Location: Jamaica Experience: Completed detailed Energy Audits and training workshops on behalf the Jamaica Public Service Company (Utility Company) Demand Side Management Unit. -------------------------Position: Team Leader - Energy Services Consultant/Contractor (2003-2004) Location: Jamaica Experience: Completed energy audit and installed hotel guest room energy management and high efficiency air conditioning systems at Shaw Park Beach Hotel, Jamaica -------------------------Position: Team leader - Energy Consultant (2001) Location: Barbados Experience: Investigated energy efficiency measures and cogeneration potentials for the Queen Elizabeth Hospital, Barbados, under assignment from OLADE; Trained engineers and technicians in Barbados, in the fundamentals of cogeneration. -------------------------Position: Team leader - Energy Consultant(2001-2006) Location: Barbados Experience: Installed 32 Solar PV Street Lighting Systems for the Petroleum Corporation of Jamaica (PCJ). Engineered and installed over 400 solar water heating systems at Angels Housing Complex. Implemented Jamaica’s first complete energy services project at the PCJ Building, including: • Lighting retrofit, • Energy management system, • Thermal energy storage system, • High efficiency chiller, • Variable speed fans and pumps. -------------------------Position: Energy Consultant (2000) Location: Jamaica Experience: Completed a detailed energy audit of the (460 beds) Cornwall Regional Hospital. Recommended the installation of a thermal energy storage system with

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Mr. Haughton’s published works also include •

“Energy Conservation in the Jamaica Tourist Industry” paper presented to the international conference at the Organization of American States (OAS) Roundtable on Energy Efficiency in the Tourist Industry. • “Applications of Solar Thermal Technology to Economically Dry Agro-Products”, the international conference on Sustainable Applications for Tropical Island States (SATIS 2001). • “Energy Conservation Opportunities Relevant to Commercial Buildings” Caribbean Energy Information System (CEIS) Update – 2003). • “Thermal Energy Storage Systems” (CEIS) Update- 2008). Mr. Haughton can be contacted at Caribbean ESCo Ltd. Tel/Fax (876)974-5064 Mobile (876)881-5045 Email: caribbean_escoltd@yahoo.com


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ENERGY & THE ENVIRONMENT

Green Business Barbados

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In May 2009 members of the Future Centre Trust (a local nonprofit organization) at their visioning retreat, identified green business as being an important programme focus for the organization. This started the grass roots ‘bottom up’ inception of the Green Business Barbados programme. On the business side of things, leading local businesses have suggested The Future Centre Trust (FCT) be the leader of this initiative. To create such a programme, the FCT brought together a local environmental planning professional, members of the professional community (technical advisory committee) and government agencies (Ministry of the Environment) in the development of local green business standards.

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Background

Success Stories

The second green business for the year came from our offshore sector in an attempt to improve their social and environmental corporate responsibility and identity. Shell Western Supply & Trading and its Green Team Coordinator Lyn-Marie Sealy successfully implemented an internal recycling system that soon became so popular within the office they had to upgrade to a larger system shortly thereafter. The Nation Publishing Co. was next up as the first large organisation with over 200 employees to invest in a new Go Green Initiative.

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In 2010 several businesses stepped out of the box to explore how they could improve their operations through the Green Business Barbados programme. The British High Commission (BHC) got things going with their 8,000 gallon capacity rain water harvesting system to irrigate the grounds. The BHC also signed onto the 10:10 Carbon Initiative to reduce their carbon emissions by 10% in 2010 by putting energy reduction measures into place and measuring energy usage in order to benchmark use through

the use of a carbon calculator programme managed by the Foreign & Commonwealth Office.

Through the national newspaper and other media, The Nation has been able to reach out to the Barbadian community through their green ‘Habitat’ section in the newspaper and internal publication and to their employees during their green month. In addition, the Nation will also be the first large scale commercial entity to upgrade to a full systems recycling programme to improve the recoverability of waste materials such as paper, cardboard,

By Lani Edghill for Green Business Barbados City, Barbados lani@futurecentretrust.org


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newspapers, plastics, glass, metals and ewaste.

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Next up for the award was Verdun House a local non-profit organization focused on rehabilitating males within our community with substance abuse addictions. Verdun was very keen to have a green (Above) Lani Edghill (left), Green Business Barbados Coordinator, pointing Strategy and out features of a sustainable development project. Action Plan (Picture by Lennox Devonish) for their organization that reflected their commitment to sustainable Members of the Green Business operations Barbados programme at the British including inHigh Commission. (Left) vestment in renewable energy. Alternatively, Studio Blue Architects was the first small business and initiating a Troweltex pail return and upgrade to a cutting edge architectural firm to invest in the programme. This plan was part of sustainability strategy and acprogramme. Their practice has a much larger call to reduce waste tion plan that will help to propel been for many years, focused on within their plant and to work your business into the future and green building options and their with recycling companies to refocus on helping you improve investment in the Green Busicycle and/or reuse much of their all the facets of your business ness Barbados programme prooutputs. Finally, Rostrevor Hotel most important to your organisavided them with an opportunity the first hotel to invest in the protion. Invest in the environment, to fully transfer that interest to gramme was able to implement culture and future of your countheir operations and practice. a comprehensive recycling protry today. For more information With the help of the Green Busigramme that has reduced their about the Green Business Barbaness Barbados programme Harris overall landfill impacts by 50%. dos Programme visit our website Paints implemented a progresInvest in the future of your isat futurecentretrust.org or email sive initiative to reduce waste by land and your business in 2011 us at lani@futurecentretrust.org.


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ENERGY & THE ENVIRONMENT

INTRODUCTION

tiatives in the Caribbean to promote the use of renewable energy but progress in implementing renewable energy projects has been limited. We consider the reasons for this in the paper.

ECONOMIC FACTORS

Economics is undoubtedly a barrier to renewable energy development. Technologies such as solar and wind require significant upfront investments to establish them. When compared to conventional diesel or natural gas generation adopted in the islands it is often significantly more expensive on a per kWh basis. This argument was made by a senior manager in one island utility. He emphasized in discussions that the issues related to renewable energy development are “all about money,” and added that economic incentives are what is needed for the industry to flourish. He further stated that ; “The utility would have to justify, for example, why it would put in renewable energy generating plant at a cost of 40 cents per/kWh, when a conventional generation plant could produce energy for about 15 or 20 cents.”

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Renewable energy has for many years been considered as part of the answer to the Caribbean’s sustainability problems. The potential of these technologies to reduce overall carbon dioxide emissions and associated climate change impacts has been a significant driver. From an economic standpoint, use of indigenous renewable energy sources can reduce foreign exchange in many countries where petroleum products make up a sizeable proportion of imports. In terms of energy security, a more diverse energy supply will reduce the overall vulnerability of the sector. Of course, record high oil prices in 2008 reminded all that failure to develop renewable technologies could one day mean that energy could be simply unaffordable to segments of populations. On the other side of the coin the Caribbean is endowed with an abundant supply of renewable energy resources which include solar, wind, hydro and geothermal.

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More than Dollars and Cents: Why Renewable Energy has been Slow Take-off in the Caribbean [PART I]

In recognition of the foregoing, there have been a number of ini-

RESEARCH METHOD The data for this study was collected via analysis of government and electricity utility documents, participant observation and exploratory semi- structured interviews with electricity utility and government officials in three Caribbean states between June and July 2009.

This senior manager went on to reveal that in 2008 the price of electricity reached over 35 cents/ kWh when oil prices were at their highest. When questioned on whether there was any impe-


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| 17 Unfortunately as an institutional entrepreneur sets up the conditions for innovation and institutional change, it suffers from reduced legitimacy in the existing institution. This sets up a conundrum, greater innovation often means reduced industry legitimacy. Elliott (2000) outlines the changes that are identified by this paradigm shift which is in itself a significant institutional change; upfront cost of installation takes on a greater importance than the running cost of production; decentralized production replaces more centralized generation and there is more of an emphasis on cycles and systems and less on the conquer and plunder attitude that generally defines fossil fuel development.

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This is an example where the institution in the form of the regulatory framework constrains the decision making even when the economics favour change. We discuss these institutional factors in more detail in the following sections. ECONOMICS OR INSTITUTIONS- INSIGHTS FROM MANAGEMENT THEORY

Organizations become institutions through embracing organizational values which relate to the whole society (Selznick, 1957). Hollingsworth (2000) suggests that organizations shape institutions at the same time that institutions shape organizations. Di Maggio (1998) has expressed the view that organizations tend to have similar structures in similar environments and refers to this as institutional isomorphism. We can apply this model to the energy sector as utilities are subject to institutions which include government policies, structure of the sector, society perceptions and influential champions in different spheres. Di Maggio & Powell (1983) suggest that entities that conform to the constraints of institutional isomorphism are rewarded by enjoying increased legitimacy. It means that such agencies will garner greater support and acceptance from the society than the bodies that do not conform to surrounding institutions. Entities that attempt to defy the isomorphism, and break away from existing structures and norms, are known as institutional entrepreneurs (Garud, Hardy, & Maguire, 2007). In breaking existing institutions, such entrepreneurs need to form new ones in the process.

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tus to consider renewable energy sources at these prices, the manager responded with the following statement. “The issue at that point relates to the regulatory scheme, where the utility is expected to account only for known and measurable changes relying to a large extent on historical prices or test years. The utility therefore will ultimately not be penalized if conventional fuels suddenly increase to unexpected levels.�

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It is apparent that economics is a barrier to development but as illustrated in the example above, many barriers appear to be caused by organizational and institutional structures. These more tacit variables tend to be ignored or dismissed in designing energy programs or formulating policy. Institutions can be defined as the rules and norms that shape behavior (Hollingsworth, 2000); they may be formal or informal. Examples of formal institutions are legislation, regulations, education system and written policies. Informal institutions refer to less tangible aspects such as traditions, culture, societal attitudes and beliefs and effects of individual champions or entrepreneurs (Espinoza & Vredenburg, 2010).

A renewable energy proponent can be considered an institutional entrepreneur as he will need to confront many of the formal and informal institutions to implement projects. In seeking to break through these institutional barriers a considerable degree of legitimacy is lost. This effect may be part of the reason why many alternative fuels are generally not explored in the Caribbean as much as they could be. Regulatory sys-

Author: David Ince,

PhD Candidate in Renewable Energy (Interdisciplinary Graduate Program) Haskayne School of Business, University of Calgary Telephone: 403-809-3639 Fax: 403-282-0095 david.ince@haskayne.ucalgary.ca

Author: Harrie Vredenburg,

PhD Suncor Energy Chair in Competitive Strategy & Sustainable Development Haskayne School of Business, University of Calgary, Telephone: 403-220-7450 Fax: 403-282-0095 harrie.vredenburg@haskayne.ucalgary.ca


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ENERGY FOR YOUNG MINDS

COMBINED CYCLE principle is that the exhaust of one heat engine is used as the heat source for another, thus extracting more useful energy from the heat, increasing the system’s overall efficiency. This works because heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). Below is a diagram of the working principle of a combined cycle:

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generation and to suggest reasons for their answers. Performance on this part was extremely poor as most candidates were unaware of the term ‘combined cycle’.” In this issue of Energy for Young Minds, we will learn more about what is ‘Combined Cycle’?

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In the Caribbean Examinations Council’s Report on Candidate’s Work in the Advanced Proficiency Examination – May/ June 2010 for Environmental Science in the section of Module 2 that deals with Sustainable Energy, the examiners commented on the poor performance of candidates. It stated that, “In Part (b) (i), candidates were required to state what is meant by ‘combined cycle’ [and that] this part was poorly done as most candidates were unable to correctly define the term.” Additionally, “For Part (b) (ii), candidates were asked if they would recommend the use of combined cycles for energy

What is Combined Cycle?

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In electric power generation a combined cycle is an assembly of heat engines that work in tandem off the same source of heat, converting it into mechanical energy, which in turn usually drives electrical generators. The

Diagram showing the working principle of a combined cycle power plant.

Source: http://en.wikipedia.org/wiki/File:COGAS_diagram.svg

The diagram is an example of a turbo-electric COGAS powerplant. Such installations are used stationary and on some ships. The numbers represent the following areas: 1. 2. 3. 4. 5. 6.

Electric generators. Steam turbine. Condenser. Pump. Boiler/heat exchanger. Gas turbine

Reasons supporting the use of combined cycles for electricity generation include: • Improved Fuel Efficiency and Reduced Consumption: Through the combining of two or more thermodynamic cycles, these result in improved overall efficiency in fuel use. • Lowered Capital Costs: The fuel cost is also reduced as remaining heat from combustion that is normally


Can you think of any disadvantages of using combined cycles? Examples of combined cycles. • In stationary power plants, a successful, common combination is the Brayton cycle (in the form of a turbine burning natural gas or synthesis gas from coal) and the Rankine cycle (in the form of a steam power plant). • In a combined cycle power plant (CCPP), or combined cycle gas turbine (CCGT) plant, a gas turbine generator generates electricity and heat in the exhaust is used to make steam, which in turn drives a steam turbine to generate additional electricity. This last step enhances the efficiency of

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more decentralized, flexible generation.

electricity generation. Many new gas power plants in North America and Europe are of this type. • The turbines used in Combined Cycle Plants are commonly fuelled with natural gas. DID YOU KNOW BMW has proposed that automobiles use exhaust heat to drive steam turbines. This can even be connected to the car or truck’s cooling system to save space and weight, but also to provide a condenser in the same location as the radiator and preheating of the water using heat from the engine block.

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wasted is utilized in the generation of energy. Reduced Emissions: Reduction in carbon footprint for some systems. Commercial Availability: Combined cycle units are commercially available from suppliers anywhere in the world. Abundant Fuel Source: The turbines used in combined cycle plants are commonly fuelled with natural gas, which can be found in abundant reserves on most continents. Reduced Distance for Electricity Transmission: Combined cycle plants can be installed near industry or other demand centres, thereby reducing the need for transmission of electricity over long distances. Decentralized and Flexible Electricity Supply: The average size of plants is declining shifting towards a

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New BMW 5 Series Touring offers two models of the 520d and 523i: BMW 520d is a fuel efficient car with a 135kW fourcylinder turbodiesel engine. The 520d is capable of consuming as little as 5.3 l/100km on the combined cycle, emits 139g/km


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Abundant Fuel Source: The turbines used in combined cycle plants are commonly fuelled with natural gas, which can be found in abundant reserves on most continents.


CEIS Update, September 2011

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CEIS Update, September 2011

| 27 UN-REDD Programme POSTERS

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The United Nations Collaborative Programme on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries. GO TO LINK ON www.un-redd.org/MediaCentre

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State Minister in the Ministry of Energy and Mining, Hon. Laurence Broderick (left), interacting with Half-Way Tree Primary students, Shaquille Brown (centre), and Gavin Francis, at the awards ceremony for the Petroleum Corporation of Jamaica’s Energy Conservation Incentive Programme for Schools, held at the Knutsford Court Hotel, in St. Andrew, on June 25. Source: www.jis.gov.jm

STUDENTS of Trinidad and Tobago with then Energy and Energy Affairs Minister, and MP for San Fernando West, Carolyn Seepersad-Bachanan. At the Awards and Prize Giving Ceremony for the National Essay Competition at Petrotrin Staff Club (this was facilitated by the National Energy Sector Corporate Social Responsibility Taskforce). Source: mpsanfernandowest.blog.com


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CARILEC Renewable Energy Forum St. Thomas, U.S. Virgin Islands September 20-21, 2011

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CEIS Update, September 2011

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Energy Caribbean 2011 Conference IBC Trinidad & Tobago October 4-5, 2011

Green Growth Investment Forum 2011 ECS Brussels, Belgium October 6-7, 2011

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Caribbean Renewable Energy Forum New Energy Events Barbados October 12-14, 2011 Energy Week 2011 CARICOM Caribbean-wide/Regional November 6-12, 2011

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CEIS Update, September 2011

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NETWORK NEWS cont’d Cont’d from page 28

cluding a detailed description of all the stages of Clean Development Mechanism (CDM) project development.

strengthen knowledge and capacity to participate in carbon markets by the private and public sectors in Latin America and the Caribbean.

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It will also allow users to connect to experts in the field and communicate  through  communities of practice. The platform’s  main  objective  is  to

CONTENTS

NETWORK NEWS..……………………….………....3

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UPDATE ON ENERGY DEVELOPMENTS Energy Efficiency Seminar.......................…............…8 Climate Aid Grant.................……………………......10 Launch of RED-LAC-EE.......……………………......11 WELECTRICITY Partnership...………………….....11 ENERGY FEATURE…………….…………..….......13

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THE CONSUMER AND ENERGY Award-winning LED Lamp...……………...............14

A quarterly publication of the Caribbean Energy Information System

ENERGY AND THE ENVIRONMENT Vestas Believes in the Caribbean..............…............17 ENERGY FOR YOUNG MINDS Solar Cells & Panels......................……….…............22 Energy and you.............................……….…............27 ENTERTAINMENT PAGE……...……………......29 UPCOMING EVENTS……………………….........30


SAMPLE CEIS Update 2012