ENERGY SECTOR BOOST

By Linda Straker

Prime Minister Dr. Keith Mitchell believes that the setting up of the Eastern Caribbean Energy Regulatory Authority (ECERA) can make a fundamental difference in seven specific ways with regards to the energy sector in the sub-region.

“It can improve the investment climate for incumbent energy providers and new investors in the industry by lowering the transaction costs of doing energy business in the OECS,” he said, while speaking at the launch of the Authority last week Thursday.

Elaborating further, he said that, “It can help to inform energy policies and establish energy standards for renewable, generation and energy efficiency. As a strong independent regulator, it can fill the void that currently exists, since there is no functioning regulator in Grenada. It can provide a fair mechanism for transparent fixing of rates for electricity.”

Prime Minister Mitchell also believes that the Authority, which was initially focused on the islands of Grenada and St. Lucia, can provide an effective mechanism to address consumer complaints; can lower the costs of regulation if an optimal number of countries (four or five) join ECERA; and promote an integrated energy market, such that a generator of wind energy can operate throughout the OECS as a
single space with attendant economies of scale.

Explaining that the development of the Caribbean requires that the supply of energy be reliable, accessible and affordable to all, he said that it is not unusual for Grenada to receive interest from investors in the areas of manufacturing, but the cost of electricity is simply too high.

“Very few manufacturers can open up businesses and create or sustain badly needed jobs with the current costs of energy,” he told those attending the launch of the Authority – a project which is funded through a loan from the World Bank.

Senator Dr. James Fletcher, Minister for Public Service, Sustainable Development, Energy, Science and Technology,  Government of St. Lucia who presented the speech for Prime Minister Dr. Kenny Anthony, said from the perspective of the Government of St. Lucia, there are several compelling reasons for the establishment of ECERA.

“The first and perhaps the most obvious is the economy of scale will arise from pooling specialised human resources for energy regulations and planning in one agency,” he said.