Islands Energy Snapshot: Haiti (Energy Transition Initiative)

Islands Energy Snapshot Haiti This profile provides a snapshot of the energy landscape Haiti of Haiti, an independent nation that occupies the western portion of the island of Hispaniola in the northern Caribbean Sea. Haiti’s utility rates are roughly $0.35 U.S. dollars (USD) per kilowatt-hour (kWh), above the Caribbean regional average of $0.33 USD/kWh. Like many island nations, Haiti is highly dependent on Haiti’s Renewable Energy Goals:3 imported fossil fuels for electric generation—roughly 85% of its electricity is produced from the combustion • 30% reduction in energy intensity by 2030 of petroleum-based fuels. This leaves the country • 50% of electricity from renewable sources by 2020 vulnerable to global oil price fluctuations, which directly impact the cost of electricity. Haiti also faces challenges • 50% electrification rate by 2020. in terms of lack of grid access, reliability of electricity service, and the prevalence of wood and charcoal fuels for home energy consumption. Government and Utility Overview Ministry: Ministry of Public Works, Government Transport and Communication Population 1 9,997,000 Authority Key Figure: Minister Jacques Rousseau Total Area 27,750 sq. km Designated Office of Energy Security, Gross Domestic Product (GDP) $18.54 billion USD Institution for Ministry of Public Work, Renewable Energy Transport and Communication Share of GDP Spent on Electricity – Unknown Fuel and Imports Total – 4%2 Regulator None GDP Per Capita $1,800 USD Government- Utility Name: Electricité d’Haïti Owned Urban Population Share 57.4% nameplate installed capacity is nearly 400 megawatts (MW), Electricity Sector Data although equipment age and condition limit the available The electric utility for Haiti is Electricité d’Haïti (EDH). capacity from those units to 244 MW.4 The country does not Though EDH technically holds monopoly rights for the have a single centralized transmission and distribution system provision of electricity, it contracts for power from a number but rather 10 isolated regional grids, all operated by EDH.5 It of independent power producers (IPPs).4 The country’s also lacks an interconnection with the Dominican Republic, Electricity Sector Overview Total Installed 244 MW Capacity (2011)7 Energy Consumption by Sector (2011) Peak Demand 250–500 MW (est.) Residential 11% Total Generation Losses 66% Commercial & 875 gigawatt-hours Public Agencies 8% (2011) Commercial, Large 15% Renewable Share 15% (2011) Energy Generation Mix (2011) Transmission & Distribution Losses 66% (2011) Hydroelectric Petroleum 15% 85% Electrification Rate 25% (2010) Residential $0.28 Commercial $0.37 Existing Policy and Regulatory Framework3 Average Electricity Tariffs Industrial $0.39 Renewable Energy (USD/kWh)8 Feed-in Tariff Public Authorities $0.37 Net Metering/Billing Public Lighting $0.37 Interconnection Standards Renewables Portfolio Standard/Quota its neighbor to the east with which it shares the island of Tax Credits Hispaniola. Several studies have suggested that such a link Tax Reduction/Exemption would be technically feasible, although political and energy security concerns in Haiti have forestalled that option.4,5 Public Loans/Grants The electricity sector in Haiti faces numerous challenges. Green Public Procurement First, it has a very high rate of losses, with almost two-thirds Energy Efficiency of the electricity produced failing to reach a paying customer. Roughly 70% of those system losses, or 46% of all energy Energy Efficiency Standards produced, are due to non-technical factors including energy Tax Credits theft and the inability of EDH to effectively bill customers and collect payment.4 Second, Haiti has one of the lowest Tax Reduction/Exemption electrification rates in the world, with 12.5% of the popula- Public Demonstration tion using an official grid connection and an equal number connecting illegally for a total electrification rate of 25%.4 Restrictions on Incandescent Bulbs In the past, illegal connections and artificially low rates charged to official customers have driven EDH to require an Appliance Labeling Standards annual operating subsidy of $170 million from the Haitian Targets government.6 Additionally, those customers may only receive electricity between 5 and 15 hours per day.4 Renewable Energy Energy Efficiency In Place In Development Renewable Energy Status and Potential4,10 Wind Hydropower Geothermal Ocean Biomass Solar Potential: High Potential: High Installed Capacity: Potential: Unknown Potential: Unknown Potential: Low Potential: High Installed Capacity: 0 40 MW Installed Capacity: 0 Installed Capacity: 0 Installed Capacity: 1 MW Installed Capacity: 0 Clean Energy Policy Environment Energy Efficiency and Haiti’s clean energy policy environment has yet to be defined. Renewable Energy Projects Responsibility for energy policy and implementation is To date, Haiti’s renewable energy development has been lim- fragmented between many government bodies that have ited to a number of small hydroelectric installations. Despite direct or indirect influence on the energy sector. This diffu- having a total installed hydroelectric capacity of 62 MW, the sion of responsibilities stems in part from the lack of a single operational capacity is only 40 MW due to out-of-service agency wholly focused on energy issues. Among the agencies turbines or reduced water flow rates due to accumulation of responsible for energy policy are the Ministry of Public silt.4 There have been a number of small-scale solar projects, Works, Transport, and Communications, and the Bureau of including the distribution of home solar lights and an off- Mines and Energy. Since 2006, these two agencies have been grid solar system at a teaching hospital near Port-au-Prince.9 working with EDH to develop a national energy policy, with However, there has not yet been any significant adoption the most recent draft released in 2012. However, as of this of grid-tied solar systems, whether at the customer or publication it still has not been implemented.3 utility scale. The current draft of the proposed national energy policy also sets several energy goals for Haiti to be achieved by the year Opportunities for Clean 2020, including reducing energy intensity of the economy by Energy Transformation 30% and increasing the portion of electricity generated from Haiti faces many challenges in its transition toward clean renewable sources to 50%.3 Recognizing the widespread energy, such as its aging electrical infrastructure, lack of clear deforestation caused by household reliance on wood and governance in the energy sector, and the poverty faced by charcoal fuels and the overall lack of access to electricity, the many of its citizens. However, these obstacles also suggest draft would seek to raise the electrification rate to 50% by that the impact of increased adoption of clean energy will be 2020.3 To enable greater adoption of renewable energy, the felt far beyond the electricity system. For example, instead draft national energy plan also calls for the completion of simply replacing diesel electricity generation with wind of nationwide wind, solar, and hydroelectric resource or solar, Haiti could displace the combustion of wood and assessment maps.4 charcoal fuels that make up 77% of primary energy use in Haiti and the cooking fuel in 93% of households.4 This shift would create huge benefits in term of respiratory health, public safety, economic productivity, and environmental preservation. Energy Transition Initiative This energy snapshot was prepared to support the Energy Transition Initiative, which leverages the experiences of islands, states, and cities that have established a long-term vision for energy transformation and are successfully implementing energy efficiency and renewable energy projects to achieve established clean energy goals. Through the initiative, the U.S. Department of Energy and its partners provide government entities and other stakeholders with a proven framework, objective guidance, and technical tools and resources for transitioning to a clean energy system/economy that relies on local resources to substantially reduce reliance on fossil fuels. 1 All information in this table is from the CIA World Factbook, unless otherwise 6 http://www.usaid.gov/haiti/energy. noted; https://www.cia.gov/library/publications/the-world-factbook/geos/ha.html. 7 All information in this table is from the Haiti Sustainable Energy Roadmap, 2 http://stat.wto.org/StatisticalProgram/WSDBStatProgramHome.aspx?Language=E. unless otherwise noted; http://www.worldwatch.org/system/files/Haiti-Roadmap- English_0.pdf. 3 http://www.bme.gouv.ht/energie/Declaration%20de%20politique%20 energetique_ebauche9.pdf. 8 http://www.edh.ht/tarif.php. 4 http://www.worldwatch.org/system/files/Haiti-Roadmap-English_0.pdf. 9 http://www.theguardian.com/global-development/2013/dec/17/haiti-solar-power- sustainable-electricity-solution. 5 http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/ 2011/02/27/000356161_20110227233101/Rendered/PDF/594590ESW0WHIT1 10 http://www.worldwatch.org/system/files/nPhase%201%20C-SERMS%20 icity0Supply0Options.pdf. Summary%20for%20Policymakers%20(1).pdf. Page 1 photo from IStock 886989; page 4 photo from iStock 29878236 Prepared by the National Renewable Energy Laboratory (NREL), a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy; NREL is operated by the Alliance for Sustainable Energy, LLC. Islands DOE/GO-102015-4657 • June 2015