Caribbean Perspectives
Affordable and Clean Energy in the Caribbean
Public-Private Partnerships & the Ege Haina Experience
By Wendy J. Singh
Just two hours away from the US mainland is the Dominican Republic- the second largest and most diverse Caribbean country and popular tourist destination to some 6 million visitors each year. Geographically diverse with rich flora and fauna and numerous beaches, this multicultural destination is replete with colonial historical sites and many captivating stories behind them.
Surrounded by the Atlantic Ocean on the north and the Caribbean Sea on the south, here tourists come for the beaches, world-class resorts, nature parks, water sports, buzzing night life, eco adventures and legendary cuisine. But like many other countries in the region, the Dominican Republic is marked by social contrasts of extreme wealth and persistent poverty. With one in five persons below the poverty line, it is not surprising that the Dominican Republic is ranked 94th among 189 countries by the Human Development Index (HDI, 2017).
Poverty remains a widespread phenomenon in the Dominican Republic. According to a World Bank Report (April 2019), approximately one in three persons is poor and about 20% live in abject poverty. Many are still without access to running water, proper sanitation and electricity. Roughly 20 per cent of the Dominican Republic’s population is struggling to make a living on less than two US dollars a day. In a country that is home to hundreds of luxury tourist resorts, one in five citizens is chronically undernourished.
Small island developing states (SIDS) remain the most susceptible to the effects of global warming, which is causing rising seas and unpredictable and destructive weather patterns. In the Caribbean, however, governments have been slow to put renewable energy systems in place. In 2017, hurricanes Irma and Maria wreaked havoc in the Caribbean, and propelled a new sense of urgency for countries with dilapidated, outdated and overburdened electric grids, to install and utilize renewable sources of energy.
Renewable Energy Caribbean reported progress in some countries such as: plans in Bermuda to establish an offshore wind farm; a push for 50% renewable energy in Jamaica by 2030; plans for geothermal projects in Dominica and St. Vincent & the Grenadines; construction of a waste- to-energy plant in Haiti; increased solar power in Barbados and the US Virgin Islands; plans to introduce utility-scale PV projects totaling 226 megawatts in Puerto Rico; and plans to install some 10 megawatts of wind and solar power in Antigua & Barbuda (www.renewableenergycaribbean. com). On the other hand, CARICOM member state Guyana, which has a huge potential for hydroelectric and bagasse-fueled power generation still uses thermoelectric diesel-engine driven generators. The recent discovery of oil and gas may make the idea of utilizing renewable energy systems even more remote.
In comparison to other Caribbean countries, the Dominican Republic seems to have progressed furthest with renewable energy systems. Haina Electricity Generating Company (EGE Haina), the leading Dominican mixed capital company, is an example of a successful alliance between private investors and the state with Haina holding 50% of the shares. Established in 1999, it currently operates eight plants, including the 77MW Los Cocos wind farm, the 7MW Quilvio Cabrera Park, the 49.5 MW Larimar wind project, and the second phase of the 175 MW Larimar project, which together make up the country’s major wind power plants. The company has a total installed capacity of 957MW, accounting for 20% of the country’s grid capacity. The second Larimar project features 14 Vesta-117 wind turbines rated as the most powerful in the Caribbean, with a height of 150 meters and 3.45 megawatts output each. “In total, the wind farms of EGE Haina will produce 585,000 MWH annually from a total of 69 wind turbines, which will avert the annual emission into the atmosphere of 300,000 tons of CO2 and the import of 900,000 barrels of oil, which translates into significant savings of foreign exchange” (www.dominicantoday.com/dr/ economy/2018/12/19).
The Los Cocos Wind Farm, which began operating in 2011, was selected as the 5,000th Global Initiative of the Kyoto Protocol’s Clean Development Mechanism that reduces greenhouse gas emissions in developing countries. During the first calendar year of its operation, the Wind Farm surpassed its goals, making it possible to save 205,000 barrels of oil, 5,000 more than projected, and prevented the emission into the atmosphere of 56,000 tons of CO2 thanks to its production of clean energy. Statistics are not yet available for the newer Larimar Wind Farm.
Ege Haina is not only a company that provides electricity, but it also provides employment throughout the country. For instance, the Larimar Wind Farm’s second stage was built over a period of one year at a cost of more than US$100 million, using 90% of Dominican labor from the nearby towns of Enriquillo, Caletón, La Ciénega, Paraíso, Juancho, Los Cocos and Oviedo. The company also places emphasis on strong partnerships, and currently maintains collaborative relationships with more than 50 governmental and non- governmental institutions for social action in communities. In keeping with its corporate social responsibility, EGE Haina has a very strict environmental policy, which gives priority to planning, maintenance and operations since it believes that a healthy environment is necessary for the well-being of the communities where it operates, its people and its business. EGE Haina believes that this is the basis of a strong and sustainable economy. The company also ensures that employees and contractors comply with environmental policy in order to achieve the goals defined by the company; requires suppliers to comply with Dominican environmental regulations; and ensures that all employees and contractors have the right and duty to stop work at any time the environment is in danger.
While its vision is to be the number one company in the generation of electricity, EGE Haina is results oriented, aims for operational excellence, is socially responsible, has integrity and is concerned about the well-being of Dominicans. In keeping with its corporate business principles EGE Haina contributes to the sustainable development of communities where it maintains a presence by providing training on activities that stimulate income generation. It also carries out social programmes that promote education, ethics, health, sports, culture and care of the environment.
Technical training is provided in the following areas:
- Increasing family income in agriculture, fishing, handicrafts, beekeeping, poultry rearing and farming
- Personal finances–savings, financial management, entrepreneurship, business development
- Improvement of community infrastructures
- Sports and school facilities, community centres, parks
- Strengthening of civil society and education in values and consolidation of community organizations
- Training of teachers and students, recognition of student merit, eco-schools programme
- Health promotion –training in: primary care, use of medication, nutrition and family hygiene
- Environment -recycling of waste, planting trees, beach cleaning, installation and maintenance of coral nurseries
Perhaps building private-public partnerships may be the way to move forward more speedily in diversifying to renewable energy. The successful partnership between EGE Haina and the Government of the Dominican Republic certainly underscores the need for this approach to be adopted by other Caribbean countries.
This article sourced information from various publications and web- based information including Renewable Energy Caribbean.
