The Renewable Energy Industry in CARIFORUM Countries

COUNTRY INDICATOR ANALYSIS

are most popular in countries with very remote rural communities like Guyana, Suriname and Belize or in countries where grid connections are still not permitted or not implementable. The need for RE on and off the grid requires a different treatment.

4.4.1 | OFF-GRID GENERATION All off-grid generation represents a direct opportunity for RECs. Generally, this supplies the community’s needs in the case of mini-grids and micro-grids, and the homeowners in the case of individual systems. There have been projects which sought to deploy enough capacity to provide for the community health, social and economic needs, e.g., OLADE in Guyana hinterlands in 2015. This represents some impact on community MSMEs but on a micro scale with no implication for exportation of electricity to the national grid. Such projects are usually funded by Government or other regional or multilateral partners and installed by RECs. Mini grids offer no threat to utilities by way of increased grid unit cost since they were never connected to the grid. However, RE off-grid systems for residents and businesses are perceived as a risk to grid unit costs and ultimately customer rates. 4.4.2 | ON-GRID GENERATION The grid connection requirements impact the utility and are shaped by the active policies of the government. While governments have set targets related to the amount of RE they hope to generate for the grid, and they have indicated the preferred technologies, they have not signalled how it would be generated in terms of KW from IPPs, businesses or homes. A few countries have leaned towards IPPs but the mix has not been specified. These IPPs are governed by power purchase agreements (PPA) negotiated by the utility, regulator and government. However, small residential and business generators depend on the terms and conditions of the liberalization process and the regulatory framework. In every scenario, there are opportunities for local RECs depending on their technical capabilities. 4.4.3 | IPP GENERATION In the current environments, large RECs may take on utility scale implementations for the utilities or investors in IPPs, or function as sub-contractors for international RECs. This IPP approach will minimize the need for individual generators, smaller RECs, and a Typical RE Industry. It will however still achieve the national objectives for cleaner, indigenous energy, possibly at a lower cost to MSMEs to contribute positively towards their competitiveness.

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The Renewable Energy Industry in CARIFORUM Countries