Energizing the Island Community

A Review of Policy Standpoints

for Renewable Energy in Small Islands

E. Kathy Stuart

Graduate Student - M.A. in Island Studies

University of Prince Edward Island, Canada

The Imported Energy Cycle

Economic growth=>

more energy consumption=>

more imported fossil fuels=>

more GDP consumed by energy=>

less for health and social services

Largest Consumers of Fossil Fuels

• Electrical Power Generation

• Transportation

Energy Profile of Small Islands

• Islands tend to import rather than export fossil fuels

• Fossil fuels are costly on islands due to transportation, storage and scale issues

• Island industries tend to be less heavy users

• Supply issues are more critical than demand

Renewables, for instance

• Sun and Wind• Volcanoes• Rainfall • Ocean waves• Tidal power• Ocean heat pumps• Solar water heaters• Biomass

• Recycled heat• Waste for incineration• District heating• Sails for boats• Clotheslines• Wind for desalination• Solar stoves• Bicycles

Energy Prescriptions in the 90’s from the Metropolis

• Conserve energy

• Educate the public on conservation

• Supplement diesel with stored solar power

• Increase fuel prices

• Remove energy subsidies to consumers

• Research and develop alternative energy

Island Response to Energy Prescription for Islands

• Islands are not heavy industrial users

• Islands deserve a fair share of the supply

• Islands are price takers, not price setters

• Energy R& D is very costly and long-term

• Alternative energy technology is still under development in big economies

• Energy waste needs to be reduced

The Traditional Electricity Industry

• Territorial rather than global in scope

• Vertically integrated monopoly

• Single transmission network

• Goal to achieve economies of scale

• Objectives: to expand supply, minimize cost, improve operating efficiency

Power Sector Reform

• Globalization

• Privatization

• Free market economics => competition, increasing efficiency, maximized profit

• Commercialization, restructuring

• Customer/consumer benefits

• Do small islands benefit?

Reform Limitations in Small Islands

• Resource allocation and competition

• Resource utilization and reliability criteria

• Private sector investment

• Institutional support

• Subsidies

Appropriate Power for Islands

• Private energy company owned by island

• Carefully assess energy profile including renewables--get best available advice

• Carefully assess outcomes of reform--apply strategy for community buy-in

• Keep pace of reform manageable

• Allow independent power production

• Host demonstration projects