Inter-American Development Bank
facebook
twitter
youtube
linkedin
instagram
Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation
  • Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Caribbean Development Trends

  • HOME
  • CATEGORIES
    • Agribusiness
    • Antigua and Barbuda
    • Barbados
    • BehaviorChange
    • Belize
    • Bermuda
    • biodiversity
    • Blockchain
    • Caribbean
    • Caribbean Culture and Media
    • Climate Change
    • Creative Economy
    • Crime Prevention and Citizen Security
    • Data and Knowledge
    • De-risking
    • Dominica
    • Dutch
    • Early Childhood Development
    • Economic Growth
    • Education Policy
    • energy
    • entrepreneurship
    • Environmental and Climate Change
    • Events
    • Extractives
    • Finance
    • Fiscal Rules
    • gender
    • Governance and Regulatory Policy Reforms
    • Grenada
    • Guyana
    • Haiti
    • Health
    • Health Policy
    • Hurricane
    • Hurricane Irma
    • infrastructure
    • Innovation and change
    • Intellectual Property
    • IWD
    • Jamaica
    • JumpCaribbean
    • Labor
    • Labour Markets
    • MOOC
    • Music
    • Natural Disasters
    • Nurturing Institutions
    • OECS
    • Podcast
    • Poverty
    • Private Sector and Entrepreneurship
    • Saint Kitts and Nevis
    • Saint Lucia
    • Saint Vincent and Grenadines
    • skills
    • Sports for Development
    • Suriname
    • Technology
    • The Bahamas
    • The Blue Economy
    • Transportation
    • Tourism
    • Trinidad and Tobago
    • Uncategorized
    • VAWG
    • Webinar
    • women
    • Women for Change
    • youth
  • Country Offices
    • Bahamas
    • Barbados
    • Guyana
    • Jamaica
    • Trinidad and Tobago
    • Suriname
  • Press Releases
    • Bahamas
    • Barbados
    • Guyana
    • Jamaica
    • Trinidad and Tobago
    • Suriname
  • Authors

Grenada Energy Market

December 23, 2013 by Leave a Comment


Grenada: Energy Market Overview

The island state of Grenada is located at the southern end of the Grenadines in the eastern Caribbean. The state’s territory encompasses the three major islands Grenada, Carriacou and Petite Martinique, as well as a number of smaller islands. Together the islands are home to a population of 110,000 people. More than 90 percent of the population live on Grenada and about one third reside in the national capital of St. George’s. The national economy is dominated by service sector, primarily government services, education, banking and insurance, tourism and communications, which contributes 78 percent to the GDP. Industry and agriculture contribute 16 percent and 6 percent respectively. (IRENA, 2012) The tourism sector directly contributes to 7.3 percent of GDP but taking multiplier effects into account the sectors contribution is estimated to be around 24 percent. (Organization of American States, 2010)

Grenada is almost wholly dependent on imported oil products which provide 93 percent of its overall energy supply. The remaining 7 percent are provided by combustible renewables & waste.

Grenada Electricity Services Ltd. (GRENLEC), a private-public owned utility company, holds a monopoly on the generation, transmission and distribution of electricity, and provides electricity to the islands of Grenada, Petite Martinique, and Carriacou. Virtually all of Grenada’s electricity is generated with diesel. (Government of Grenada, 2011) GRENLEC operates diesel power plants at Queens Park on the main island of Grenada with an installed capacity of 45.9 MW. In addition it has capacity of 3.2 MW on Carriacou, 0.5 MW on Petit Martinique, and 2.8 MW of backup capacity on the campus of St. George’s University. (Castalia Consulting, 2012; Government of Grenada, 2011; Organization of American States, 2010; World Bank, 2010)

GRENLEC sold a total of 185.8 GWh to 41,222 customers. The cost of oil imports used for the generation of electricity is substantial representing 7 percent of total imports by value and equaling 76 percent of export revenues. Electricity prices, as in many other small islands states in the Caribbean, rank among the highest in the world and reached 0.64 US$ per kWh in 2008. (Government of Grenada, 2011; Grenada Electricity Services Ltd., 2012)

About half of Grenada’s energy supply is consumed by the transportation sector followed by the electricity sector at 40 percent. (IRENA, 2012) Electricity consumption in Grenada is dominated by the commercial sector, which accounts for 57 percent of consumed electricity, followed by the residential sector at 38%. Industrial consumption stands at 3 percent and street lighting  at 2 percent. Between 2000 and 2008 GRENLEC reduced system losses from 13 percent of generation to 9 percent. (Government of Grenada, 2011; Organization of American States, 2010)

Grenada: Energy and Electricity Sector Regulatory Framework

grenada_2

The Ministry of Finance, Planning, Economy, Energy & Cooperatives holds a broad mandate with responsibility for the energy sector. Within the ministry, the Department of Energy & Sustainable Development is tasked to ensure adequate, reliable and economical energy services and satisfy projected future demand. It is also responsible to encourage the use and promotion of renewable energy. (Organization of American States, 2010; Renewable Energy & Energy Efficiency Partnership, 2012)

The Electricity Supply Ordinance of 1961 provides GRENLEC with exclusive license for the generation, transmission, distribution and sale of electricity for a period of 80 years. (Grenada Electricity Services Ltd., 2012)In 1982 the Grenada government became the sole owner of GRENLECO which lasted until 1994 when the it sold all but a 10 percent stake to investors. A new Electricity Supply Act of the same year reaffirmed GRENLEC’s market dominating position and granted it a monopoly until December 31, 2073. (Castalia Consulting, 2012; Grenada Electricity Services Ltd., 2012; Renewable Energy & Energy Efficiency Partnership, 2012; World Bank, 2010)

Recently GRENLEC agreed to purchase electricity produced by GRENSOL up to a limit of 1 percent of total demand. As GRENSOL is likely to expand its efforts it is likely that the arbitrary 1 percent limit, set by GRENLAC, will be exceeded in the near future and may be “subject to review and negotiations” as part of a revised Electricity Supply Act. (Government of Grenada, 2011)

Castalia Consulting. (2012). Sustainable Energy in the Eastern Caribbean : Achieving an Unrealized Potential Report to the.

Government of Grenada. (2011). A Low Carbon Development Strategy for Grenada, Carriacou and Petite Martinique.

Grenada Electricity Services Ltd. (2012). GRENLEC Annual Report 2012. Retrieved from http://www.grenlec.com/images/Annual_Reports/Report2012.pdf

IRENA. (2012). Grenada Renewables readiness assessment.

Organization of American States. (2010). Energy Policy and Sector Analysis in the Caribbean 2010-2011.

Renewable Energy & Energy Efficiency Partnership. (2012). Grenada. Retrieved from http://www.reegle.info/policy-and-regulatory-overviews/GD

World Bank. (2010). Caribbean Regional Electricity Generation , Interconnection, and Fuels Supply Strategy Final Report.


Filed Under: Climate Change & Environment, Economy & Investment, Grenada Tagged With: caribbean, electricity, energy, Grenada, GRENLEC, natural gas, oil, renewable energy, tourism

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Us

Subscribe

Search

Caribbean Dev Trends

We provide unique and timely insights on the Caribbean and its political, social, and economic development. At the IDB, we strive to improve lives in the Caribbean by creating vibrant and resilient economies where people are safe, productive and happy.

Similar posts

  • Bahamas’ Energy Market
  • The Promise of Renewables in Grenada
  • Antigua and Barbuda’s Energy Market
  • Seeking to Transform Energy in Saint Lucia
  • Saint Vincent and the Grenadines’ Energy Market

Footer

Banco Interamericano de Desarrollo
facebook
twitter
youtube
youtube
youtube

Blog posts written by Bank employees:

Copyright © Inter-American Development Bank ("IDB"). This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives. (CC-IGO 3.0 BY-NC-ND) license and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC- IGO license. Note that link provided above includes additional terms and conditions of the license.


For blogs written by external parties:

For questions concerning copyright for authors that are not IADB employees please complete the contact form for this blog.

The opinions expressed in this blog are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

Attribution: in addition to giving attribution to the respective author and copyright owner, as appropriate, we would appreciate if you could include a link that remits back the IDB Blogs website.



Privacy Policy

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in

Banco Interamericano de Desarrollo

Aviso Legal

Las opiniones expresadas en estos blogs son las de los autores y no necesariamente reflejan las opiniones del Banco Interamericano de Desarrollo, sus directivas, la Asamblea de Gobernadores o sus países miembros.

facebook
twitter
youtube
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

SAVE & ACCEPT