The Future of Energy in The Bahamas: Urgent need for Reform
W
HAT
IF
WE
DID
NOTHING
?
T
HE
FUTURE
OF
T
HE
B
AHAMAS
WITHOUT
ENERGY
REFORM
MEASURES
Bahamas Chamber of Commerce and Employers’
Confederation
Nicola Virgill Rolle, PhD
Director
National Development and Planning
T
HE
E
NERGY
S
ITUATION
T
ODAY
Island chain makeup and the commitment to bring
electricity to every corner of The Bahamas
unified tariff system
Dependent on imported fossil fuels to meet energy needs.
Dependent on global oil prices
Continued price uncertainty given global trends
Balance of payments impacts
High cost of fuel per kilowatt-hour sold
High energy costs results in
Uncompetitive business environment
Reduces disposable household income
Serious impact of current technology on the environment
The need for renewable sources given issues of Climate
Change
T
HE
E
NERGY
S
ITUATION
T
ODAY
Reliability also appears to be an issue
forces many businesses and households to operate their
own generators
Management issues:
High system losses,
Maintenance issues
High delinquency rates
There are few energy conservation measures
Power consumption can be reduced by as much as 25 per
cent through more effective conservation and efficiency
measures.
Some progress in the business sector
Needs national standards for efficiency
W
HAT
DOES
DOING
NOTHING
LOOK
LIKE
?
Not addressing fossil fuel dependency
Not addressing inefficiencies to reduce energy costs to
consumers
Continuing to contribute to CO
2
emissions, climate
change and environmental damage
Not addressing management issues with respect to
reliability, maintenance and delinquencies
Not addressing conservation and alternative energy
W
HAT
DOES
DOING
NOTHING
LOOK
LIKE
?
Not addressing fossil fuel dependency
Not addressing inefficiencies to reduce energy costs to
consumers
Continuing to contribute to CO
2
emissions, climate
change and environmental damage
Not addressing management issues with respect to
reliability, maintenance and delinquencies
Not addressing conservation and alternative energy
IMPOSSIBLE
C
OSTS
OF
I
NACTION
: I
NEFFICIENCIES
IN
THE
ECONOMY
Inefficiencies and high cost production
result in
huge deadweight loss
in the
economy as people pay more than they
need to if supply side issues were
addressed
Higher demand for
fossil fuel based energy
than is optimal
because
of lack of alternatives and
conservation (suboptimal
demand curve)
Welfare Impacts
C
OST
OF
I
NACTION
: I
NCREASES
THE
COST
OF
DOING
BUSINESS
C
OST
OF
INACTION
: C
ONTINUED
DECLINES
IN
DBI
Overhead costs (fuel,
operational costs)
Aging infrastructure,
technology
C
OST
OF
G
LOBAL
I
NACTION
ON
C
LIMATE
C
HANGE
http://ase.tufts
.edu/gdae/Pub
s/rp/Caribbean
-full-Eng.pdf
C
OST
OF
I
NACTION
: C
LIMATE
I
MPACTS
http://www.ccrif.
org/sites/default/
files/publications
/Bahamas_Coun
tryRiskProfile_2
013.pdf
N
ATIONAL
E
NERGY
P
OLICY
OF
T
HE
B
AHAMAS
Bold policy announced with the National Energy
Policy
1.
Security of energy supply through diversification of
fuels;
2.
Modernizing the country’s energy infrastructure;
3.
Development of renewable energy sources such as solar,
ocean energy, biofuels, waste-to-energy and wind
4.
Energy conservation and efficiency;
5.
Development of a comprehensive governance/regulatory
framework to effectively support the advancement of the
energy sector to be effectively able to facilitate the
introduction of renewables and the diversification of
fuels; and
6.
Eco-efficiency in the manufacturing, agricultural and
tourism sectors and government as leaders in energy
conservation and the use of renewable energy .
T
HE
D
ISCUSSION
SHOULD
BE
ABOUT
THE
PATHWAY
TO
ACTION
THROUGH
AN
E
VALUATION
OF
P
RIORITIES
diversification
of fuels
Energy
conservation
and efficiency
comprehensive
governance/regulatory
framework to facilitate
the introduction of
renewables and the
diversification of fuels
Modernizing
the country’s
energy
infrastructure;
Eco-efficiency and
conservation and
alternatives in the
manufacturing,
agricultural and tourism
sectors
Cost
Impact
Development
of renewable
energy sources
Q
UESTIONS
The Bahamas currently faces challenges with its energy situation, heavily dependent on imported fossil fuels leading to high costs and environmental impact. Without energy reform measures, the country risks continued high energy costs, environmental damage, and inefficiencies in the economy. Taking action is crucial to address these issues and pave the way for a sustainable and competitive energy future.
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Presentation Transcript
WHAT IF WE DID NOTHING? THE FUTURE OF THE BAHAMAS WITHOUT ENERGY REFORM MEASURES Bahamas Chamber of Commerce and Employers Confederation Nicola Virgill Rolle, PhD Director National Development and Planning
THE ENERGY SITUATION TODAY Island chain makeup and the commitment to bring electricity to every corner of The Bahamas unified tariff system Dependent on imported fossil fuels to meet energy needs. Dependent on global oil prices Continued price uncertainty given global trends Balance of payments impacts High cost of fuel per kilowatt-hour sold High energy costs results in Uncompetitive business environment Reduces disposable household income Serious impact of current technology on the environment The need for renewable sources given issues of Climate Change
THE ENERGY SITUATION TODAY Reliability also appears to be an issue forces many businesses and households to operate their own generators Management issues: High system losses, Maintenance issues High delinquency rates There are few energy conservation measures Power consumption can be reduced by as much as 25 per cent through more effective conservation and efficiency measures. Some progress in the business sector Needs national standards for efficiency
WHAT DOES DOING NOTHING LOOK LIKE? Not addressing fossil fuel dependency Not addressing inefficiencies to reduce energy costs to consumers Continuing to contribute to CO2emissions, climate change and environmental damage Not addressing management issues with respect to reliability, maintenance and delinquencies Not addressing conservation and alternative energy
WHAT DOES DOING NOTHING LOOK LIKE? Not addressing fossil fuel dependency Not addressing inefficiencies to reduce energy costs to consumers Continuing to contribute to CO2emissions, climate change and environmental damage Not addressing management issues with respect to reliability, maintenance and delinquencies Not addressing conservation and alternative energy
COSTSOF INACTION: INEFFICIENCIESINTHEECONOMY Welfare Impacts Inefficiencies and high cost production result in huge deadweight loss in the economy as people pay more than they need to if supply side issues were addressed Price of energy Higher demand for fossil fuel based energy than is optimal because of lack of alternatives and conservation (suboptimal demand curve) D 1 D 2 Quantity of Energy
COSTOF INACTION: INCREASESTHECOST OFDOINGBUSINESS
COSTOFINACTION: CONTINUEDDECLINESIN DBI Overhead costs (fuel, operational costs) Aging infrastructure, technology
COSTOF GLOBAL INACTIONON CLIMATE CHANGE http://ase.tufts .edu/gdae/Pub s/rp/Caribbean -full-Eng.pdf
COSTOF INACTION: CLIMATE IMPACTS http://www.ccrif. org/sites/default/ files/publications /Bahamas_Coun tryRiskProfile_2 013.pdf
NATIONAL ENERGY POLICYOF THE BAHAMAS Bold policy announced with the National Energy Policy Security of energy supply through diversification of fuels; Modernizing the country s energy infrastructure; Development of renewable energy sources such as solar, ocean energy, biofuels, waste-to-energy and wind Energy conservation and efficiency; Development of a comprehensive governance/regulatory framework to effectively support the advancement of the energy sector to be effectively able to facilitate the introduction of renewables and the diversification of fuels; and Eco-efficiency in the manufacturing, agricultural and tourism sectors and government as leaders in energy conservation and the use of renewable energy . 1. 2. 3. 4. 5. 6.
THE DISCUSSIONSHOULDBEABOUTTHEPATHWAYTOACTION THROUGHAN EVALUATIONOF PRIORITIES comprehensive governance/regulatory framework to facilitate the introduction of renewables and the diversification of fuels Development of renewable energy sources Modernizing the country s energy infrastructure; Eco-efficiency and conservation and alternatives in the manufacturing, agricultural and tourism sectors diversification of fuels Impact Energy conservation and efficiency Cost
