The Renewable Energy Industry in CARIFORUM Countries

COUNTRY INDICATOR ANALYSIS

4.5.3 | WATER

The water sector plays a very important role in the region. Unlike some of the others, it is not usually described as a productive sector but rather an essential service, given the importance of clean running water to the health of a nation. Pumping water is also a popular method of delivering water to customers and this makes the water utility the largest customer of the electricity utility. As with tourism, this is not an additional energy consideration and it is characterized by cost, reliability and dependency. The high cost of electricity is a direct cost to the water utility, notwithstanding the additional cost borne by some customers who have residential pumping systems to deal with water pressure inconsistency or access to individual storage tanks when there is a water outage. Water utilities are impacted when power to their pumping systems is lost. This can result in falling water levels in reservoirs causing a low-pressure supply or a complete water outage. These negative impacts stem from a strong if not total dependence on the electricity utility. Therefore, in order to maintain a sustained, high quality water supply service, the water sectors across the region have sought to enhance their energy systems by implementing energy efficiency options and some renewable energy options to generate electricity onsite. This approach should not be taken in isolation since there would most likely be regulatory implications in relation to electricity utility’s requirement to meet its cost-of-service obligations. It is critical that both utilities work together to develop solutions that would not result in increased tariffs for customers on the grid. This is a very specific isolated dilemma which, if managed properly, need not impact the cost of electricity to MSMEs while providing potential work for firms in the area of EE and RE. The GCF has committed US$68.4M 4 to the region for projects in the water sector. Opportunities include:

• Wastewater treatment and reuse • Water conservation • RE generation aligned with electricity utility

4.5.4 | ENVIRONMENT Energy and the environment have long enjoyed a strong synergy. The burning of fossil-based fuels is believed to be the single largest contributor to the emissions of greenhouse gases such as carbon dioxide and nitrous oxide. It is widely accepted that these gases are linked to global warming and climate change which negatively impacts beach erosion, bleaching of coral reefs, marine species and other natural ecosystems along the coastline. The region requires consistent adaptation to assist vulnerable countries like those in this study, to cope with the effects of climate change and decisive mitigation action to slow or prevent further damage. The latter is deeply reliant on renewable energy and energy efficiency which reduce harmful emissions into the atmosphere. The Kyoto Protocol to the UNFCCC which required developed countries to reduce greenhouse gas (GHG) emissions to an average of 5% against 1990 levels over the period 2008-2012, created added opportunities for RECs to contribute locally, subject to national policies. This and the subsequent Copenhagen and Paris

4 - GCF Portfolio for the Caribbean, 2020

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The Renewable Energy Industry in CARIFORUM Countries