Suffering from a crippling and ongoing trade deficit and from some of the highest poverty rates
in the Americas, Haiti is a country desperate for a vision for
sustained economic growth. Currently, Haiti sources 85 percent of its
electricity needs, and spends 4 percent of its GDP annually, on dirty
and expensive imported fossil fuels. This not only limits the availability of capital for domestic economic investment, but also exposes the country to the volatile global oil market.
These challenges are compounded by the sluggish recovery efforts seen
in the aftermath of the 2010 earthquake. Although five years have
passed since the magnitude 7.0 tremor struck Haiti, scars of its
devastation remain. The earthquake resulted in the loss of some 200,000
lives and in an estimated $628 million
in infrastructure damage, across all sectors of Haitian society.
Recovery efforts have been insufficient, leaving the country reliant on
aging, damaged, and often unreliable energy infrastructure.
As a result, roughly three quarters of Haitians lack access to modern and reliable electricity services. Those that do have access are charged rates
significantly higher than global averages, further dampening the
country’s potential for economic growth. As a consequence, Haiti’s power
sector priorities differ greatly from those of other Caribbean nations.
The country must dramatically grow its generation capacity simply to
meet current demand.
Unfortunately, utility provider Electricité d’Haiti
(EDH) has only limited financial and human capacity to expand
electricity services and already struggles to provide reliable
electricity to its existing customer base. It is unlikely that
underserved and rural areas will be connected to Haiti’s existing and
fossil fuel-powered grid anytime soon. More often than not, this dynamic
forces consumers to rely on self-generation, using inefficient and
dirty diesel generating units. This limitation could yet become an
opportunity, however, as “distributed” renewable energy generation from independent power producers is emerging as a viable option for serving these communities.
Distributed Solar: A Decent Start
Haitian President Jean-Claude Martelly has made distributed renewable
energy a major priority. In January 2012, Martelly declared the
ambitious target of electrifying 200,000 rural households over two years
through the Ban m limyè, Ban m lavi (“Give me light, give me life”) program,
based primarily on distributed solar energy. Building from this
declaration, a number of small companies and nonprofits have begun
deploying renewables-based mini-grids throughout the country.
In the southern town of Les Anglais, the nonprofit EarthSpark
has created a mini-grid—using smart meter technology and powered by a
diesel-solar system hybrid—to supply more than 400 previously unserved
customers. In the capital Port-au-Prince, the newly constructed L’Hôpital Universitaire de Mirebalais
(HUM) is illustrating the degree to which self-generation from
affordable, renewable electricity sources can have broad positive
impacts. Powered by 1,800 rooftop solar panels and supported with
technical expertise and financial resources from Boston-based
Partners-in-Health, the hospital covers 100% of its electricity needs
during peak hours and feeds surplus energy back into the grid. More
importantly, HUM provides primary and secondary care services to an
estimated 185,000 people, building vital human capacity lost in the
fallout of the 2010 earthquake. The success and momentum behind such
projects highlights the abundant potential for distributed electricity
generation from renewables in Haiti.
A Vision for Sustainable Energy in Haiti
Unfortunately, solar alone cannot break the chokehold that fossil
fuels have on Haiti’s energy system. Only by harnessing its full
endowment of renewable energy resources can Haiti achieve the energy
independence essential for a bright future. New research
from the Worldwatch institute suggests that the country’s abundant
hydropower, wind, biomass, and geothermal energy resources are primed
for introduction into the grid. By developing these resources, in
addition to solar, Haiti can realistically meet 52 percent of its
projected energy demand through 2030.
What will really turn heads is that this path would lead to a more
reliable and affordable energy system compared to continued reliance on
fossil fuels. By pursuing opportunities to develop renewable energy
generation capacity, Haiti can decrease energy prices for residential
consumers to at least a third of current levels while incurring savings
in excess of $5.8 billion through 2030 in fossil fuel import costs. Time
is of the essence, however, as Haitian demand for electricity is expected to grow 11.8 percent annually through 2030.
Aren’t Fossil Fuels Cheaper?
It’s undeniable that the price for petroleum in international markets is plunging.
Between higher standards for fuel efficiency in oil-importing states
and a robust American natural gas market, demand for petroleum is well
below typical levels. These dynamics apply downward pressure on oil
prices globally. However, these markets are well known for being unstable over the long term.
Moreover, fuel prices alone do not capture the true costs of fossil
fuel-based electricity generation. With an isolated electricity grid,
Haiti incurs additional costs from the expensive shipping of fossil
fuels. Operation and management costs for the country’s antiquated
petroleum-charged power plants are 4.5 times more than projected costs
for solar, wind, and hydro. Combined, these factors mean that, despite
the slump in global oil market costs, total generation costs for
petroleum-based power plants in Haiti are projected
to increase nearly 6 percent annually through 2030. Already, these
costs are hindering EDH’s ability to invest in expanded coverage for the
roughly two thirds of Haitians who lack access to modern and reliable
electricity services.
Jumping the investment barrier
In Haiti, as in much of the Caribbean, the first hurdle for
sustainability is also the highest. Upfront investment costs are
significantly higher for new renewable generation capacity than for
conventional generation sources. In the long run, however, the
transition to sustainable energy can result in savings in excess of
$5.84 billion compared to business as usual by 2030. Yet more must be
done to encourage stakeholders and investors in the energy sector to
take the leap.
In general, investment in Haiti’s electricity sector has been very
low. Rates of electricity losses from the grid—due to widespread
electricity theft as well as to antiquated generation, transmission, and
distribution equipment—are the highest in the Caribbean, at over 60 percent. This makes it difficult for EDH to recover costs and discourages further investment in new power plants. Exploiting readily available opportunities to integrate renewables
into Haiti’s energy mix is critical to encouraging this investment.
Distributed generation in rural and underserved areas from wind, solar,
and run-of-the-river hydropower can help reduce stress on the grid while
promoting economic productivity by releasing those communities from the
bottleneck of energy access.
Success stories like EarthSpark, HUM, and the Ban m limyè, Ban m lavi
program demonstrate that clear signaling from the government on
promoting renewables, as well as the participation of foreign technical
and financial support bodies, can catalyze results on the ground.
Communicating these stories is critical to conveying the tremendous
potential of renewable energy resources in Haiti.
Philip Killeen is a Research Assistant for the Climate and Energy
Team at Worldwatch Institute. There he contributes to the Institute’s
portfolio of project work, including co-authoring the 2015 Caribbean
Sustainable Energy Roadmap Strategy (C-SERMS) and independent research
on sustainable urbanization and climate finance in developing states.
Philip also manages the Low Emissions Development Strategies Global
Partnership (LEDS GP) Energy Working Grou
http://cleantechnica.com/2015/11/15/how-renewables-are-rekindling-hope-in-haiti-part-3/
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