Energizing the Island Community

1
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

2
The Imported Energy Cycle

• Economic growthgt
• more energy consumptiongt
• more imported fossil fuelsgt
• more GDP consumed by energygt
• less for health and social services

3
Largest Consumers of Fossil Fuels

• Electrical Power Generation
• Transportation

4
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

5
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

6
Energy Prescriptions in the 90s 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

7
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

8
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

9
Power Sector Reform

• Globalization
• Privatization
• Free market economics gt competition, increasing
  efficiency, maximized profit
• Commercialization, restructuring
• Customer/consumer benefits
• Do small islands benefit?

10
Reform Limitations in Small Islands

• Resource allocation and competition
• Resource utilization and reliability criteria
• Private sector investment
• Institutional support
• Subsidies

11
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