have their own opinions on the technolo-

gies that are developed and used in the

energy sector. Two such technologies that

have emerged in the quest to efficiently

utilize our energy resources are Smart

Grids and Net Metering. These two tech-

nologies are used in one of the highest en-

ergy consuming sectors – the Electricity

Sector. In this issue of the CEIS Petroleum

Update we will take a look at these tech-

nologies, identify some of the potential

benefits for the Caribbean, highlight some

of the barriers that may have prevented

use of these technologies in the region and

suggest the way forward.

What is Smart Grid?

When we speak of Smart Grid we refer to

class of technology that is being used in

the Utility Electricity Delivery Systems.

This system is made possible through the

use of computerized and automated sys-

Caribbean Energy Information System (CEIS)

October 2011

CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or relevant to the

Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.

To access CEIS website

New solar smart grid technology.New solar smart grid technology.

Source: www.inhabitat.comSource: www.inhabitat.com

CONTACT US

Caribbean Energy Information System Scientific Research Council

Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone)

1-876-977-1840 (Fax) ceis@src-jamaica.org

www.ceis-caribenergy.org

continued on page 2/

As we strive to improve

our quality of life a lot of

focus is being placed on

the use of technology. In

this quest to improve our lifestyle,

it is also appearing that the more

we use technology, the greater our

energy consumption. This should

ultimately be the other way

around and brings to mind the

“seesaw” effect which basically

operates a fulcrum by shifting the

weight from one side to the other.

This means therefore, that as we

focus on the use of new technolo-

gies we should ensure that the

balance between the use of the

technology and the energy con-

sumption remains even or shifted

to the side that result in less use of

energy.

For humans, energy is a necessity

and as a scarce resource, it has

been an underlying cause of po-

litical conflicts and wars. Many

page 2 Call: 1-876-927-1779 | Caribbean Petroleum Update : October 2011

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

continued on page 3/

tems along with two way communica-

tion systems through one of the most

widely used technology in the 21st

century – the Internet. It provides the

opportunity for real-time efficient man-

agement of our energy both by the

consumer and the power provider

thereby reducing our energy consump-

tion and the associated cost.

The concept of Smart Grid has been in

use since 2005 with the first commer-

cial scale system installed in Italy. To-

day the technology is increasing in use

in the United States and in other parts

of the world. Smart Grid offers a lot of

valuable features that can be used

within the Caribbean on a large scale in

the near future to deliver electricity

from producers to consumers, control

energy flow, reduce losses, and make

the performance of the electric network

more controllable

and reliable. An

effective Smart

Grid:

Must be reli-

able to provide

power when and

where needed

and at the quality users value.

Must be secure to withstand and be

less vulnerable to attacks (physical

and cyber) without experiencing mas-

sive blackouts or inflated recovery

costs. It must also be secure enough

to quickly recover from natural disas-

ters.

Must be economical to operate under

the basic laws of supply and demand,

resulting in fair prices and adequate

supplies for all.

Must efficiently employ strategies

that lead to cost control, minimal

transmission and distribution losses,

efficient power production, and

optimal asset utilization while provid-

ing consumers options for managing

their energy usage.

Must be environmentally friendly in

order to reduce environmental im-

pacts thorough improvements in

efficiency and by facilitating the inte-

gration of more intermittent resources

than could otherwise be reliably

supported.

Must be safe enough not to harm any-

one and sensitive to users who

depend on it as a medical necessity.

The real-time, two-way communica-

tions available in Smart Grid will

enable consumers to be compensated

for their efforts to save energy and to

sell energy back to the grid through net-

metering.

What is Net Metering?

For people in the Caribbean who have

been producing energy through renew-

able means the term Net Metering is

not new and is a very welcomed idea.

This is because net metering is a special

billing arrangement which allows the

connection of renewable energy-

generating systems to the power grid.

A Net Meter operates normally by run-

ning forward when a customer uses

more power than is being produced.

The opposite occurs when the reverse

happens and the excess power is fed

Can Smart Grids & Net Metering reduce the Caribbean’s dependence on fossil fuels? continued from page 1/

Caribbean Petroleum Update : October 2011 | Call: 1-876-927-1779 page 3

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

What do you think about this Issue? Share your thoughts with us at

ceis@src-jamaica.org

into the grid. Net metering customers

are charged only for the “net” power

that is consumed from the electricity

service provider over a set period or, if

their renewable energy-generating

systems make more electricity than is

consumed, they may be credited or paid

for the excess electricity contributed to

the grid over that same period at the rate

charged by the Utility Company.

1-ph to 3-ph Bi-Directional Net

Meters

Source: www.generalpacific.com

The billing system provides benefits for

the consumer and the Utility Company

by ensuring that

customers al-

ways have a reli-

able source of

energy from the

grid during times

when their re-

newable genera-

tors are not pro-

ducing energy, and by providing the

opportunity for the consumer to sell into

the grid any excess electricity that is

produced from the renewable energy

system.

Potential benefits to the Caribbean

The potential benefits for the Caribbean

from the use of these two technologies

are enormous whereby a “transactive

environment” would be created thereby

facilitating financial, information, elec-

trical transactions and greater use of

grid assets among consumers. In simple

terms the use of these technologies in

the Caribbean could open up markets in

ways similar to how the Internet has.

Smart Grid and Net Metering will give

consumers information, control, and

options that enable them to engage in

new “electricity markets.” Grid opera-

tors will treat willing consumers as re-

sources in the day-to-day operation of

the grid. Well-

informed consum-

ers will modify

c o n s u m p t i o n

based on the bal-

ancing of their

demands and re-

sources with the

electric system’s

capability to meet

those demands.

Greater use of

renewable energy

would be encour-

aged and reduced

dependence on

fossils would ultimately be realized

thereby resulting in greater economical

benefits for the country. The additional

benefits are substantial to the electric

power-generating system, the economy,

and the environment when Net Meter-

ing is combined in a Smart Grid allow-

ing for greater management and use of

the energy produced.

Looking further ahead, the use of these

technologies in the Caribbean could

also see the use of other technologies

that are available but not yet accessible

by Caribbean countries for example the

use of Plug-in Electric Vehicles. Sup-

port could also be made for the creation

of new electricity markets from the

home energy management system at the

consumer’s premise to technologies that

allow consumers and third parties to bid

their energy resources into the electric-

ity market.

The Smart Grid and Net Metering will

support consistent market operation

across regions and in summary provide

improved reliability of power quality

and transmission, reduce cost and

expenditure for electric utilities and

consumers (households and businesses),

lower Greenhouse Gases (GHGs) and

other gas emissions, and create greater

awareness and management of our en-

ergy resources. Most importantly the

use of these technologies in Caribbean

countries will help break our depend-

ence on dirty fossil fuels, add to the di-

versification of our current energy port-

folio, reduce the pressure on our econo-

mies having to source scarce foreign

exchange to purchase fuel and help

lessen the environmental footprint asso-

ciated with electricity generation and

consumption.

Evidence seen in countries that cur-

rently employ these technologies shows

that customers and Utility Companies

Can Smart Grids & Net Metering reduce the Caribbean’s dependence on fossil fuels? continued from page 2/

Petroleum News & Happenings

MORE POWER! Gov’t, JPS renegotiate some areas of

licence>> 20/10/2011

Barbados’ cuts energy usage >> 18/10/2011

Cuba's offshore oil drilling not fully monitored by US >>

18/10/2011

Damian Obiglio resigns as president of the JPS >> 15/10/2011

A.E. Parnell Secures Handling and Launch Services

Contract for Petrojam >> 13/10/2011

Nevis Airport to provide all aircraft fuel >> 11/10/2011

JPS upholding international standards, according

to company official >> 9/10/2011

Oil drops to new lows >> 5/10/2011

continued on page 4/

page 4 Call: 1-876-927-1779 | Caribbean Petroleum Update : October 2011

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

tend to be much more aware of energy

consumption and there is increased en-

ergy in the power grid to keep up with

increases in demand during peak power

-use times resulting in less black-outs or

brown-outs.

Why Caribbean countries have not

“bomb rushed” Smart Grid and Net

Meter technologies?

The answer to the question above is

simple when assessed from a business

perspective. Most Utility companies in

the Caribbean region are large monopo-

lies or quasi government operated.

These utilities have a primary goal in

mind - maximizing of profits. As such,

they will seek to sell energy at the high-

est rates possible with little regard to

the consumer in relation to expenditure.

In addition, large investments would be

required to introduce these technologies

particularly Smart Grids as many utili-

ties are owned and operated by entities

that are not native to the region. As

such, there is great reluctance by the

investors to invest too much. Govern-

ments that are in countries where these

monopoly utilities operate have not

taken the necessary steps to ensure that

the utilities provide the most efficient

technologies for the production, distri-

bution and consumption of the energy

and to some extent it is believed that

they are being held at ransom not hav-

ing the capital to make the investments

themselves.

As it relates to the use of Net Meters,

there is a school of thought that is put

forward that there is reluctance on the

part of the Utilities to pay the self gen-

erators supplying excess energy at the

same rate that is

charged by the

utilities for the

energy sold. The

justification being

put forward by the

utilities for not

wanting to pay the

same rate is that

there is an avoided cost to the consumer

having not incurred the expenses to put

in the necessary infrastructure to trans-

port the energy to the consumer either

way. This school of thought has ne-

gated many consumers that may have

been thinking of investing in renewable

energy systems for the purpose of gen-

erating their own energy, and to sell any

excess to the utility company. As such,

investments are more attractive if the

possibility is there to earn.

Other reasons relate to the lack of

awareness regarding the use and bene-

fits of the technologies. Since the tech-

nologies are fairly new, many countries

have not developed the necessary pro-

grammes to sensitize the population

(utilities, household consumers and

businesses) on how these technologies

would provide more efficient use of

energy. In addition, the necessary legis-

lative environments are not in place in

many countries to facilitate fair trading

and fair competition.

The way forward

As we look to the future and in our

quest to improve our lifestyles through

greater use of technology, our focus

must also be on self preservation and

greater efficiency in the use of our

resources. It is imperative that the tech-

nologies that are developed to improve

our lives are efficient, safe, environ-

mentally friendly, and economical. Any

use of energy in such technologies must

be targeted towards yielding high effi-

ciency whilst negating the side effects

on humans, nature and the environment.

The way in which we extract, convert,

transport, store and use energy must

result in tangible long-term benefits.

Smart Grid and Net Metering can reap

significant benefits for Caribbean coun-

tries if approached in the correct way.

Large Utilities in the Caribbean such as

the Jamaica Public Service – JPS that

are seeking to increase their efficiency

and expand generating capacity must

now put the necessary infrastructure in

place that would promote the use of

these technologies which within possi-

bly another five years may become the

norm. Governments must seek to rene-

gotiate contracts with Utilities in order

to enforce the use of technologies that

would provide the greatest benefits to

country and the environment.

Policy makers and educators have a

very key role to play in facilitating the

development of the necessary legisla-

tive framework, infrastructure and envi-

ronment to allow for the use of these

emerging technologies. They must learn

from best practices and not re-invent

wheel. In addition, more incentive

programmes should be created to facili-

tate the full support of the private sector

which can act as change agents. Having

the right incentives and information

available for the use of these technolo-

gies can create an environment of in-

vestments thereby leading to economic

growth.

Finally, the Caribbean people must seek

to educate themselves on the emerging

technologies. The availability of addi-

tional grid intelligence and real time

information from the use of Smart

Grids and Net Meters will give planners

and engineers the knowledge to build

what is needed when it is needed, to

extend the life of assets, to repair equip-

ment before it fails unexpectedly, and

to more effectively manage the work

force. Operational, maintenance and

capital costs will be reduced thereby

keeping downward pressure on prices

and hence reducing our dependency on

fossil fuels for electricity generation.

Can Smart Grids & Net Metering reduce the Caribbean’s dependence on fossil fuels? continued from page 1/

Caribbean Petroleum Update : October 2011 | Call: 1-876-927-1779 page 5

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP

January - October 2011

Declines in Crude oil prices in September and during October were seen in the retail prices for Regular Unleaded Gasoline in

some countries which showed decreases in prices. Of the sixteen countries reviewed at the end of October, retail prices for this

product in ten Caribbean countries had shown decreases when compared to the previous month while two countries showed

increases and the other four remaining relatively stable.

NOTE:

*US

Gallon = 3.785 L

*Imperial

Gallon = 4.546 L

*As at November

1, 2009 MTBE

was phased out

from all gasoline

blends in

Jamaica and

replaced with

10% Ethanol.

CHART

See prices for other products at See prices for other products at See prices for other products at www.ceiswww.ceiswww.ceis---caribenergy.orgcaribenergy.orgcaribenergy.org ...

Table: Regular Unleaded Gasoline Average Retail Price (US$/Litre)

2 0 1 1

COUNTRIES JAN FEB MAR APR MAY JUN JUL AUG AVG OCT SEP

ANTIGUA/ BARBUDA 1.00 1.00 1.07 1.15 1.25 1.33 1.30 1.30 1.57 1.30 1.30

BAHAMAS [91 OCT] 1.24 1.25 1.30 1.46 1.47 1.47 1.45 1.43 1.20 1.34 1.44

BARBADOS 1.47 1.48 1.49 1.59 1.59 1.59 1.59 1.66 1.22 1.60 1.66

BELIZE [87 OCT] 1.33 1.34 1.48 1.50 1.54 1.51 1.49 1.51 1.39 1.47 1.44

B.V.I [87 OCT] 1.12 1.13 1.20 1.26 1.26 1.27 1.25 1.22 1.46 1.22 1.22

DOMINICA 1.01 1.05 1.06 1.11 1.21 1.24 1.22 1.22 1.15 1.17 1.22

GRENADA (95 OCT) 1.05 1.06 1.17 1.23 1.29 1.32 1.29 1.29 1.23 1.28 1.31

GUYANA 0.99 0.99 1.06 1.08 1.08 1.12 1.15 1.14 1.09 1.14 1.14

JAMAICA 87 Octane[E10] 1.17 1.18 1.25 1.28 1.29 1.29 1.31 1.29 1.26 1.25 1.28

MONTSERRAT 1.13 1.14 1.18 1.27 1.38 1.42 1.35 1.32 1.28 1.27 1.32

ST. KITTS/ NEVIS 1.04 1.07 1.20 1.13 1.14 1.23 1.27 1.28 1.19 1.29 1.28

ST. LUCIA 1.14 1.14 1.16 1.22 1.27 1.28 1.28 1.27 1.22 1.21 1.25

ST. VINCENT/GRENADINES 0.99 0.98 1.00 1.06 1.10 1.17 1.24 1.24 1.12 1.22 1.23

SURINAME [95 OCT] 1.21 1.32 1.34 1.47 1.55 1.51 1.48 1.48 1.42 1.40 1.45

TRINIDAD/[92 OCT] 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42

TURKS/ CAICOS 1.36 1.36 1.42 1.42 1.45 1.55 1.61 1.60 1.49 1.54 1.60

page 6 Call: 1-876-927-1779 | Caribbean Petroleum Update : October 2011

C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )

During the month of October International oil prices

showed slight increases when compared to the previ-

ous month. However, prices remained below the

US$100/BBL with the highest price seen during the

last week of October at approximately US$93/BBL.

In comparison to the same period in 2008, Crude oil

prices were approximately 10% higher in October

2011. When compared, the average prices seen for the

months (Aug, Sep & Oct) showed that the average

price in August was approximately 25% higher than

September and October.

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