Compiled by Sandra CA Ferguson
Timelines re Grenlec and the Electricity Sector, July 2008 – January 2013
Part 4 is an attempt to map key events in the evolution of Grenlec and the electricity sector in Grenada in order to be aware of the political and economic context of the various periods and therefore, assist we the people in putting in perspective the actions and decisions taken by our various political administrations. The writer apologises for any inadvertent errors.
Part 4.1. mapped the period 1960 – 2007. Part 4.2. looks at the period July 2008 – January 2013 which coincides with the tenure of the National Democratic Congress (NDC) administration.
| TIMELINE/EVENT |
REMARKS |
| 8 July 2008: General elections; National Democratic Congress elected to office |
| May 2009: Proposal for the Eastern Caribbean Energy Regulatory Authority[1] |
| At 49th meeting in May 2009, OECS Member States endorse proposal for the setting up of the Eastern Caribbean Energy Regulatory Authority, (ECERA). Grenada and St Lucia express interest in moving ahead with the setting up ECERA and request World Bank support |
| March 2011: OECS Commission appointed as Implementing Agency ECERA Project |
| March 2011: Grenada’s National Energy Policy Approved: |
- set out the 20-year vision of the government and goals to be achieved in 10 years;
- provisions for Grenada to explore energy development in the areas of Wind, Solar, Geothermal, Waste Material and Hydrocarbon
|
| June 2011: ECERA Project: World Bank approves US$5.6 million loan for the design and operationalisation of ECERA; US$2.8 million allocated to Grenada |
| 2011: Geothermal Resource Development Project Initiated with support from the OAS |
- Geothermal Energy Committee set up;
- Diagnostic Report for the Geothermal Resources Development Project, 11 November submitted to the OAS and to Grenada
- Work in progress re the development of Geothermal Legislation and Regulations
|
| June 2012 Grenada Vision 2030: Prime Minister Thomas launches Grenada Vision 2030[2] at the Rio Summit; by 2030, 100% of Grenada’s primary demand for electricity generation and for transport will be provided by renewable energy resources. |
- a public/private venture in which island states would be helped in their bid to reduce their reliance on fossil fuels.
- a joint effort between the Climate Institute, the Carbon War Room, the United Nations and other organisations.
|
| September 2012: Carriacou Wind Energy Project Launched[3], [4]; |
- Sod turning ceremony at Top Hill Carriacou on 12 September 2012
- European Union Financing, Euros 2.5 million to GoG; Euros 1.4 million counterpart funding from Grenlec
- a 1 MW – 2MW wind turbine to be erected for the generation of electricity
|
| November 2012: Commencement of implementation of ECERA Project – to establish and operationalise ECERA |
- Part A: Setting up the ECERA (US$2.61 million) focusing on the creation of a new institutional, legal, and regulatory framework for the electricity sector of the participating countries.
- Part B: Operationalising ECERA (US$2.99 million) covering operating costs, including specific core regulatory tasks
- The ECERA Project Management Unit was instructed to only undertake implementation of Part A activities pertinent to the development of new electricity sector laws in Grenada and St Lucia.
|
| 27 December 2012: WRB Offer of Shares to GOG: |
- Caribbean Media Corporation[5] reported: WRB had written to the Government of Grenada offering its shares in Grenlec for purchase;
- WRB was also in talks to sell its shares to a Canadian-based firm, EMERA, which has Caribbean subsidiaries, including the St Lucia Electricity Services Ltd. (LUCELEC).
|
| 2 January 2013: Minister of Finance News Conference[6]: |
- WRB Enterprises – 61.4% effective ownership of Grenlec – offered the Grenada government the option of retaking control of the company by purchasing its shares for almost EC$100 million.
- Light & Power Holdings (LPH) of Barbados – majority-owned by Canada-based Emera Inc. – had “reached an understanding” with WRB; was close to completing a purchase agreement for WRB’s shares in Grenlec – 50 % shares of Grenada Private Power and 11.4% owned by Eastern Caribbean Holdings controlled by WRB
- Share Value: Current share value at EC$11; but the new majority owners would be purchasing them for EC$7.50
- Ownership and Control: LPH would be allowed to purchase the 61.4%. Government Policy is that no entity should own more than 50 % of the shares of Grenlec; the new agreement will block LPH from having any voting rights associated with the Eastern Caribbean Holding shares; allows the Government to purchase them at the same price the LPH purchased the shares up to one year after the initial purchase is concluded
- Amendments to the Electricity Supply Act: The Minister and the Attorney-General were in talks with LPH; there would be a new regulatory framework
- New Developmental Framework for Grenada’s Electricity Sector; amendments to be made to the Electricity Supply Act to accommodate the new Framework
|
| 8 January 2013[7]: Minister of Finance meeting with stakeholders to discuss the proposed 20-point New Developmental Framework for Grenada’s Electricity Sector |
The new framework separated the generation of renewable energy from non-renewable sources. Among provisions were:
- Fossils Fuels Only: Grenlec’s Exclusive Licence would be for fossil-fuels only for a period of 45 years.
- Renewable Energy Special Purpose Vehicles (RESPVs) to be established for electricity generation from renewable energy sources including geothermal, wind, solar and waste materials.
- Ownership: No entity would be allowed to own more than 50% of Grenlec or of a RESPV without the consent of the GoG.
- Renewable Energy Portfolio Standards: to set standards re percentage of electricity to be generated by renewables; to be legislated in the new ESA.
- Regulatory Authority: Establishment of an independent regulatory authority.
- Compliance Mechanism: A robust compliance mechanism is to be inserted both into the Successor Agreement and the amended Electricity Supply Act.
|
[1] The World Bank Eastern Caribbean Energy Regulatory Authority (ECERA) (P101414)ICR, June 2019, Project Manager’s Exit Report, ECERA
[2] accessed at https://www.caribjournal.com/2012/06/22/grenadas-prime-minister-launches-green-initiative-during-rio-talks/
[3] Press Release No.62/2012. Ministry of Finance, Planning, Economy, Energy & Co-operatives, Sept. 10., 2012
[4] https://www.caribbeanlifenews.com/grenada-launches-its-first-wind-farm-project/
[5] https://www.dominicavibes.dm/politics-79790/
[6] http://grenadaadvocate.blogspot.com/2013/01/share-opportunity-public-could-buy-more.html
[7] Press Release No.1/2013, Ministry of Finance, Planning Economy, Energy and Co-operatives, 4 January 2013
NOW Grenada is not responsible for the opinions, statements or media content presented by contributors. In case of abuse,
click here to report.
