National Energy Policy 2010

SAINT LUCIA
              NATIONAL ENERGY POLICY




                            JANUARY 2010
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                             Prepared by the German Technical Cooperation and CARICOM Secretariat under the
                            Government of Germany funded initiative "Caribbean Renewable Energy Development
                                Programme (CREDP)" and the Department of Sustainable Development of the
                           General Secretariat of the Organization of American States with the expert advice of the
                          German ProfEC GmbH under the European Union funded initiative “Caribbean Sustainable
                      Energy Program (CSEP)”. The views expressed herein are presented for informational purposes only
                            and do not represent the opinions or official positions of the Government of Germany,
                              the German Technical Cooperation, the CARICOM Secretariat, the European Union,
                          the Organization of American States, its General Secretariat, or any of its member States.”



                                                  Cover photo: Courtesy of Carolina Peña
                                                                                                               National Energy Policy – Saint Lucia
                           Saint Lucia National Energy Policy



A. Background
    (1)   A secure and sustainable energy supply is critical to national development. Energy services are
          required for a number of activities including, inter alia; electricity generation, water supply,
          agriculture production, transportation and telecommunications. All of these services are integral
          to the development of Saint Lucia and to the well-being and advancement of its people.

    (2)   Saint Lucia is a net importer of fossil-based energy, with the power and transport sectors relying
          exclusively on imported oil derivates. All economic sectors have been affected by increasing oil
          prices in recent times. This has also had negative impacts on the country’s balance of trade. The
          effects of energy supply interruptions and oil price shocks on economic performance are
          therefore of major concern, given the island’s almost complete dependence on imported energy.

    (3)   The Government of Saint Lucia has recognised the influence that developments in the global
          energy markets have on domestic needs and has taken steps to achieve higher energy security
          and independence. In May 1999, the Government passed Cabinet Conclusion No. 464
          eliminating all import duties and consumption taxes on renewable energy equipment and
          materials. Further, in April 2001, it decided to make the purchase of solar water heaters tax-
          deductible. Meritorious as these initiatives may be, it has been recognised that they are
          insufficient for addressing the broader and deeper challenge of achieving energy efficiency in all
          sectors and reducing reliance on current energy sources.