Energy Efficiency Credits: Antigua And Barbuda's Incentives

Antigua and Barbuda is a two-island state located in the Eastern Caribbean, with a population of approximately 88,000 people. The country's energy sector relies almost entirely on imported fossil fuels for electricity generation, transport, and cooking. In recognition of the environmental and economic impact of this, the government has implemented initiatives to improve energy efficiency and conservation. One such initiative is the Sustainable Energy Action Plan (SEAP), which includes strategies for energy conservation, renewable energy development, and education and awareness. The SEAP aims to reduce energy costs, diversify energy sources, improve the reliability of electricity supply, protect the environment, and stimulate economic opportunities. While the existence of energy efficiency credits in Antigua and Barbuda is unclear, the country's focus on sustainable energy suggests that such credits or incentives may be a potential area of exploration.

Antigua and Barbuda's energy policy

The country's energy policy is formulated by the Sustainable Energy Desk, which operates under the Office of the Prime Minister. This desk was established in 2010 alongside the National Energy Task Force, which is responsible for developing the National Sustainable Energy Policy (NSEP). The country's overall energy policy includes standards for renewable energy technologies, but there is no independent regulatory agency in the energy or electricity sector.

Antigua and Barbuda's energy market is dominated by the Antigua Power Company Limited (APCL), an Independent Power Producer (IPP) that generates the majority of the country's electricity. The APCL's capacity reaches 44 MW, and it produces electricity at a significantly lower cost than the Antigua Public Utilities Authority (APUA), a tripartite government statutory agency that controls and regulates electricity services, among other utilities. The APUA purchases electricity from the APCL and distributes it to consumers.

The country's energy consumption is high relative to its population, and it spends about 12% of its GDP on energy, the highest proportion among Eastern Caribbean states. The import of oil products consumes about one-third of Antigua and Barbuda's foreign exchange. To address the rising cost of energy, the government implemented a pass-through pricing system in 2009, ending a period of subsidised fuel prices. As a result, energy costs for gasoline, diesel, and propane have increased significantly and are now more aligned with prices in other East Caribbean states.

Antigua and Barbuda is taking steps towards a more sustainable energy future by developing a National Energy Policy, with a draft released in December 2010. This policy aims to introduce a National Energy Unit and an independent regulatory agency, with participation in the planned Eastern Caribbean Energy Regulatory Authority (ECERA).

The role of the Sustainable Energy Desk

The Sustainable Energy Desk is part of the Office of the Prime Minister in Antigua and Barbuda. It was established in 2010 alongside the National Energy Task Force, which is responsible for developing the National Sustainable Energy Policy (NSEP). The desk plays a crucial role in shaping the country's overall energy policy, including setting standards for renewable energy technologies.

One of the key responsibilities of the Sustainable Energy Desk is to develop and implement energy efficiency programmes and measures. This includes creating appropriate structures, instruments, and tools to support the development and implementation of energy efficiency initiatives. For example, the desk is tasked with elaborating energy end-use statistics and monitoring tools, defining incentives for efficient energy use, and revising electricity tariffs to encourage energy conservation.

Additionally, the Sustainable Energy Desk coordinates national energy efficiency programmes with international and regional initiatives. This ensures that the country's efforts are aligned with global and regional sustainability goals. The desk also plays a vital role in developing and implementing horizontal energy efficiency measures, such as energy auditing and management programmes, building codes, energy efficiency standards, and labelling of energy-related products.

Furthermore, the Sustainable Energy Desk is responsible for targeted sector-specific energy efficiency programmes. These programmes cover various sectors, including electricity, public, residential, tourism, agro-industrial, and transport. The desk works closely with relevant industries and organisations to develop and implement tailored initiatives that promote energy efficiency and conservation within their respective sectors.

The Sustainable Energy Desk's work is guided by the National Energy Policy, which outlines key priorities for the energy sector, including energy cost reduction through targeted energy efficiency measures, diversification of energy sources, improving the reliability of electricity supply, environmental protection, and stimulating economic opportunities. The desk plays a crucial role in translating these priorities into actionable strategies and policies, contributing to Antigua and Barbuda's sustainable energy future.

The National Energy Policy's priorities

• Energy cost reduction through targeted energy efficiency and conservation measures. The aim is to reduce energy costs by implementing programmes and measures that promote the efficient use of energy. This includes developing energy end-use statistics and monitoring tools, defining incentives, and revising electricity tariffs.
• Diversification of energy sources. Antigua and Barbuda's energy sector relies almost exclusively on imported fossil fuels for electricity generation, transport, and cooking. The country aims to diversify its energy sources to reduce this reliance on imported fossil fuels.
• Improved reliability of electricity supply through regulatory reform. The country plans to improve the reliability of its electricity supply by reforming the regulatory framework that governs the energy and electricity sectors.
• Environmental protection. The National Energy Policy also prioritises protecting the environment, which is likely linked to the country's reliance on fossil fuels, as burning fossil fuels contributes to global greenhouse gas emissions and air pollution.
• Stimulation of economic opportunities. The policy aims to stimulate economic opportunities, potentially by creating appropriate structures, instruments, and tools to enable the development and implementation of energy efficiency programmes and measures.

The National Energy Task Force

The National Energy Policy, approved in 2011, outlines the following priorities for the energy sector:

• Energy cost reduction through targeted energy efficiency and conservation measures
• Diversification of energy sources
• Improved reliability of electricity supply through regulatory reform
• Environmental protection
• Stimulation of economic opportunities

The Sustainable Energy Action Plan (SEAP) was commissioned by the Government of Antigua and Barbuda and implemented in accordance with the National Energy Policy 2010-2030. The SEAP includes three main strategies: Energy Conservation and Energy Efficiency, Renewable Energy Development, and Education and Awareness.

The Energy Conservation and Energy Efficiency strategy proposes the following:

• Creating appropriate structures, instruments, and tools to enable the development and implementation of energy efficiency programs and measures
• Elaborating energy end-use statistics and monitoring tools
• Defining and implementing incentives for the efficient use of energy
• Defining the role of the APUA and other market actors in the promotion of energy efficiency
• Revising electricity tariffs to stimulate energy efficiency
• Coordinating national energy efficiency programs with international and regional initiatives
• Developing and implementing horizontal energy efficiency measures, such as an energy auditing and management program, building codes, energy efficiency standards, and labeling of energy-related products
• Developing and implementing targeted sector-specific energy efficiency programs and measures in various sectors, including electricity, public, residential, tourism, agro-industrial, and transport.

The Antigua Public Utilities Authority (APUA)

Three power stations are operated by APUA, while the other five are operated by one IPP, the Antigua Power Company Limited (APCL). In 2009, the base load was 42 MW, and the peak load was 50 MW. APCL's capacity alone reaches 44 MW, and it can produce electricity at a significantly lower cost than APUA. This helps explain why most electricity is produced by APCL and then purchased by APUA.

The Sustainable Energy Action Plan (SEAP) was commissioned by the Government of Antigua and Barbuda and implemented according to the National Energy Policy 2010-2030. The plan includes three main strategies: Energy Conservation and Energy Efficiency, Renewable Energy Development, and Education and Awareness.

Strategy I of the SEAP, "Energy Conservation and Energy Efficiency," proposes the following strategic intents and lines of action:

• Creating appropriate structures, instruments, and tools to enable the development and implementation of energy efficiency programs and measures.
• Elaborating energy end-use statistics and monitoring tools.
• Defining and implementing incentives for the efficient use of energy.
• Defining the role of APUA and other market actors in promoting energy efficiency.
• Revising electricity tariffs to stimulate energy efficiency.

Strategy I also aims to coordinate national energy efficiency programs with international and regional initiatives and develop and implement horizontal and targeted sector-specific energy efficiency measures.

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