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ENERGY POLICY FORMULATION,
IMPLEMENTATION AND MONITORING
– WHAT’S BEST FOR HAITI
Presented by: Maxine Alexander Nestor
Energy Workshop in Haiti
Hotel Ritz Kinm
Pétion-Ville, Haiti
ISSUES CONFRONTING HAITI’S ELECTRICITY AND ENERGY SECTOR
High dependence on diesel especially for
electricity production:
• High
generation
costs translate
to high tariffs;
• Drain on
treasury as
about 50% of
balance of is
payments used
to pay a
fraction of
energy needs
(⅕);
• Environmental
and climate
change
concerns.
• Security of
energy
supplies issues.
Inadequate electricity supplies:
• Limited
installed
capacity – 300
MW;
• Inadequate
maintenance
of generating
units;
• Weak
transmission
and
distribution
system;
• Stymies
economic
development.
Operational issues at EDH
•Lowelectrificationrate – 16% or 9%if only activeconsumersconsidered. Howcould this beincreasedwithout creatinga burden on themasses?;
•High systemlosses (about18% technicaland 35%commercial);
•Billing andcollection issues;
•Hugh subsidiesrequired tosustainoperations.
Heavy Utilization of Woodfuel :
• Deforestation dueto over exploitation;
• Inefficient energysource;
• Health andenvironment issues;
• Substitutionrequires retrainingof large workforce;
• Strategy to promoteLPG has not yieldthe desired results– barriers includeinvestment andregulation;
• No or little potentialfor crude oilexploitation andrefining howeverthere is potentialfor someindigenousresources otherthan biomass(hydro, solar, wind).
Governance, Legal and Regulatory
Reforms:
• Primary Ministrycovers multiplesector – dilutedresponsible forenergy sectormanagement atdecision andstrategic makinglevel ;
• Dearth of skills;
• Responsibility forenergy matters splitamong fourMinistries – needfor clear lines ofauthority to avoidconflict;
• Lack of adequatelegal and regulatoryframeworkparticularly for thepower sector(market structure,tariff setting, qualityof service, licensing,auto-generation,planning andgovernance).
Source: Haiti Energy Sector White Paper December 2010 draft and National Energy Sector Development Plan February 2011 2
MODEL FOR MARKET STRUCTURE
– SINGLE BUYER MODELIndependent
Power Producers
/ Distribution
Generators
Utility
(EDH) Consumers
The Red line represents electricity trade3
EN
ER
GY
PO
LIC
Y F
OR
MU
LA
TIO
N, IM
PLE
ME
NT
AT
IO
N A
ND
MO
NIT
OR
IN
G –
WH
AT
’S B
EST
FO
R H
AIT
I
ENERGY POLICY DIMENSIONS
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Vision (why):
the impetus tostrategy activities.
Content (what):
product of theprocess - policies
and strategies.
Process (how,
who, when): thecontinuum fromplanning, formation,implementation andcontrol.
Context (where): circumstancesand environment within whichprocess and content embedded.
4
PROPOSED STEPS
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Develop a
Vision and
Conduct
Environment
Scan to
determine
problems and
issue
(regional,
national and
local)
Commence Engagementon Strategies designed to provide solution
Formulate
Energy
Policy to
provide
Sustainable
Solutions
DevelopandImplementResultsOrientedActionPlans andPrograms
Establish
Strategic
Controls
to analyze
results of
strategies
and detect
any
problems
Amend
Energy
Policy
Strategies,
Action Plan
and
Legislation
as
necessary
to achieve
objectives
and vision
5
STEP 1 – THE VISION
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Develop a
Vision and
Conduct
Environment
Scan to
determine
problems and
issue
(regional,
national and
local)
6
STEP 1 – THE VISION
�National EnergyPolicies set thevision, guidingprinciples andobjectives for asustainable energypathway.�Vision could have along-range horizon(e.g. 20 years inJamaica & St.Vincent & theGrenadines).
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI7
STEP 1 – ENVIRONMENT SCAN –
The Context
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
• To scan the wider environment and assess globalperspective and regional setting.
Tool-driven approach
• Appropriate for assessing external environment. Little controlover certain global issues. Need to design strategies to mitigate.
PESTEL framework
• For internal analysis of the country’s energy sector.
Opportunities and strengths maximized and weaknesses and
threats minimized. Baseline data useful.
SWOT analysis
8
STEP 2 - ENGAGEMENT
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Commence Engagementon Strategies designed to provide solution
9
STEP 2 - ENGAGEMENT
� EXTREMELY IMPORTANT to engage allstakeholders in the process of energy policyformulation (relevant Ministries; Governmental &NGOs; private sector; manufacturers; citizenry;electricity consumers; interest groups, mediaetc).
� Energy plays an important part in daily lives ofeveryone.
�There will be dissention BUT involvementengenders trust, buy-in, ownership & avertsresistance and derailment of process.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI10
UNDESIRED OUTCOME
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Everyone pulling in different directions
11
DESIRED OUTCOME
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
… pull in the same direction
12
PURPOSE OF ENGAGEMENT?
� Provides a forum for views of various stakeholdersto be discussed.
� Stimulates exploration of a wide-range of solutions– Governments do not have all the answers.
� Feedback is instructive in informing energystrategies and decision-making on options andalternatives.
HOWEVER GOVERNMENTS MUST MAINTAINRESPONSIBILITY FOR ULTIMATE STRATEGIES ANDSOLUTIONS.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI13
PROCESS FOR ENGAGEMENT
�Varies from country-to-country – no prescribedformula – determine what works best.
�Antigua and Barbuda commenced theengagement process by establishing 18 Memberbroad-based task force.
� In Jamaica:
- the initial draft document (Green Paper) was in the public
domain for over 2 years online.
- public consultation on revised draft held over 3 – 4
month period throughout island.
�Town hall style engagement becoming popular.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI14
STEP 3 – FORMULATE POLICY
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Formulate
Energy
Policy to
provide
Sustainable
Solutions
15
STRATEGIC PRIORITIES AND POLICY OPTIONS - the Content
Energy Planning
and Management
• Streamline
policy and
decision making
• Improvement of
the energy
information and
database
• Introduction of
an effective
coordination of
the energy
sector
• Regular
elaboration and
updating of an
Energy Action
and
Implementation
Plan
• Institutional
strengthening
and capacity
building
Power Sector
• Improvement
of efficiency
at all levels of
electricity
supply
•Rural
electrification
• Encourage
net metering
• Establishment
of a
Regulatory
Authority
• Electricity
tariffs
reflective of
actual costs
•Market
Structure to
include
private sector
participation
– SBM and
IPPs common
in Region
Renewable
Energy
• Promote
appropriate
Renewable
Energy
technologies –
on-grid and off
grid
• Analyse RES
potential
• Development of
local capacity for
RET
• Encouragement
of private sector
participation in
RE projects
• Provision of
financial and
fiscal incentives
for RET
• Incentives for
installation of
solar water
heaters
Energy Efficiency
• Promotion of
Energy Audits
for key energy
consuming
sector
• Fiscal incentives
for the import of
energy-efficient
products
• Establishment of
standards and
guidelines for
electrical
appliances,
equipment and
materials
• Increase
awareness on
energy
conservation,
efficient use and
energy-efficient
appliances
• Ban inefficient
incandescent
light bulbs
• Efficiency in the
use of fire wood
and charcoal
Biomass
• Substitution
of firewood
and charcoal
as the major
source of
energy for
residential
cooking and
industrial
heating
• Incentives to
promote the
use of LPG
Transportation
•Taxation
system that
provides
incentives for
low-
consuming
vehicles
•Restrict the
importation
of second-
hand cars
with
excessive fuel
consumption
• Set emission
and fuel-
consumption
controls for
vehicles
16
APPROVAL OF NATIONAL ENERGY POLICY
Cabinet Approved document is Official Energy Policy.
Tabled in Parliament – no debate required.
Cabinet may:Consider and approve policy Appoint a select sub-committee for review and comments
Final Policy document prepared and sent to Cabinet for approval:In St. Vincent & the Grenadines draft submitted first to the National Energy Committee prior to submission to Cabinet
Feedback during consultation considered and incorporated and ‘white paper’ prepared. Several drafts of the ‘white paper’ may be circulated to stakeholders for comments.
Approval process varies in slightly in Member States:In Jamaica the first draft document circulated for discussion and consultation is termed ‘green paper’.
Usually the line Ministry takes the lead during the Energy Policy formation process.
17
LEGAL FORCE
�Enactment of new legislation or amendmentof existing legislation may be required to givelegal force to range of policy issues:
�Policies and strategies could impact a rangeof legislation and other statutory instrumentsincluding:
Re-negotiation of monopoly utility licence to allow for competition in generation;
Building code to set standards for energy efficiency in building sector;
Motor Vehicles Act set emission levels on vehicles;
Tax and Fiscal Act – exemptions.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI18
STEP 4 - ACTION / IMPLEMENTATION PLAN
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
DevelopandImplementResultsOrientedActionPlans andPrograms
19
ACTION / IMPLEMENTATION PLAN
� Support Policies with an Energy Action Plan designedto enhance the achievement of strategies and goals.
� Plan must detail clear measurable targets, activities,timeframes, tasks, responsibilities, resourcesallocation, milestones and performance measures(indicators).
� Targets and activities could be classified according totime-scale (short, medium, long-term).
� Haiti’s December 2010 White Paper examines severalscenarios for the Energy Sector and combines theseOptions with an Action Plan outlined as a Roadmap.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI20
STEP 5 – ESTABLISH CONTROLS
/ MONITOR
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Establish
Strategic
Controls
to analyze
results of
strategies
and detect
any
problems
21
WHAT AND WHY
�Strategic controls are essential for trackingstrategies and activities duringimplementation to detect problems orchanges.
�Since energy policies and strategies arefuture-oriented and forward looking they arebased on assumptions.
�Lapse in time between implementation ofstrategies and activities and achievement ofresults.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI22
TYPES OF CONTROLS
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Premise Control
• Check Continuouslywhether the underlyingassumptions orpredictions are still valid– (specific ).
Strategic Surveillance•Monitor global and regionalevents that are likely toimpact the achievement ofintended results (loose andunfocused).
Special Alert Control• Sudden, unexpected or
unforeseen event thatnecessitates a reconsiderationof strategies e.g. January2010 Earthquake.
Implementation Control• Monitor milestone results to
determine whetherimplementation activitiesshould be revised.
23
STEP 6 – AMEND TO STAY ALIGNED
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Amend
Energy
Policy
Strategies,
Action Plan
and
Legislation
as
necessary
to achieve
objectives
and vision
24
STEP 6 – AMEND TO STAY ALIGNED
Based on information obtained from controls:
�Implement strategic changes as necessary toremain in harmony with any shifts inopportunities or threats in the environment –‘strategic renewal’.
�Amend Policies, Action plan, Legislation etc.
�Failure to align with environment could resultin ‘strategic drift’.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI25
SUMMARY OF POLICY ACTIVITIES –
WHERE IS HAITI?
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
INDENTIFYING
• Know the problem
• Set vision
DIAGNOSING
• External and Internal Assessment
CONCEIVING
• Generate and selectpolicy options anddevelop instruments.
REALISING
• Develop and implement Action Plan
• Implement Controls & Monitor
STAKEHOLDERS
ENGAGEMENT
26
CONCLUDING THOUGHTS
�Haiti is moving in the right direction in terms offormulating an Energy Policy.� Several documents have been developed that
inter alia:- provide baseline data of the energy sector; - identify key strategy priorities for the country based on
five broad categories;- highlight the pros and cons of several options on several
matters for decision making. These options need to bedistilled and crystallized into succinct strategies to beoutlined in an Energy Policy.
�Based on the outcome of Consultations on theoptions, an Energy Policy needs to beformulated supported by an Action Plan.� Support should be leveraged from donors to
support implementation of the Action Plan.ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING – WHAT’S
BEST FOR HAITI
27
CONCLUDING THOUGHTS
� Maybe some gaps in the instruments developed to dateare:
- Absence of a vision statement around which the strategicpriorities revolve;
- Scan of the globally and regional energy outlook;- SWOT analysis matrix that summaries the issues and problems
confronting the sector;- Consider the use of energy in the transportation sector as a
strategic priority.
� An Energy Policy or Strategy is not an end in itself, but ameans for reaching particular objectives or achieving acertain vision.
� Usually the end is the creation of a sustainable EnergySector to meet the present and future energy needs ofthe country.
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING – WHAT’S
BEST FOR HAITI
28
ENERGY POLICY FORMULATION, IMPLEMENTATION AND MONITORING –
WHAT’S BEST FOR HAITI
Contact:
Joseph Williams
Manager, Energy Programme
Caribbean Community Secretariat
Tele: 592 -222-0001-75 Ext 3521
592-222-0139 (Direct)
Fax :592-222-0155
E-mail: jwilliams@caricom.org;
jwilliams6764@gmail.com
SKYPE 'jwilliams67641“
__________________________
Maxine Alexander Nestor
Regional Energy Policy Advisor
Caribbean Renewable Energy
Development Project
c/o Caribbean Community Secretariat
Tele: 592-222-0001-75 Ext. 3501
592-222-0222 (direct)
email: mnestor@caricom.org
skype: maxine.alexander.nestor
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