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Energy technologies to meet the national renewable highlighted the need for a competent and independent
energy targets faster. However, in a small island system regulator. The Utilities should remain responsible for
where transmission and distribution remain a monopolistic power planning coordinated with key stakeholders to
business then a strong regulatory environment is required. ensure security of supply as well as cost effectiveness.
Given the small markets in the Caribbean, the competition
The concept of “wheeling” power was being considered should be based on the single buyer model, tendering
in some small island systems. Under this method the IPPs additional generation capacity. However, the utility should
could deliver directly to himself at another location where be given the opportunity to participate in the bids. In this
he/she requires the power and sell the excess to the utility regard, the evaluation should be done by an independent
or in some cases to a client making use of the utility’s party. Additionally, there is an important role for renewable
grid for a fee. Small scale renewable energy by individuals energy in terms of fuel diversification and higher energy
and commercial enterprises would be allowed to do this security. However, the Government, the Utility and other
although under varying conditions and regulations. key stakeholder collaboration is important to execute the
diversification strategy and align to best practice and
CARILEC POSITION ON REGULATION principles of regulation to ensure the sector’s stability and
integrity. The Independent regulatory principle, the most
important of all principles, is to maintain consumer and
CARILEC position on regulation was a means to share investor confidence alike.
the views of the association on regulation as a result of
ongoing discussion about competition and Renewable
Energy Technologies interventions. This position The Principles Of Regulation Are As Follows:

Independence Most important principle Flexibility Ability to evolve and improve
Stakeholders should High level of knowledge and
Communication Capacity
understand initiatives expertise
Stakeholders should be
Consultation Effectiveness Monitor costs and benefits
able to provide feedback
Consistency Results in confidence Accountability Responsibility and appeals

Predictability Allow planning for future Transparency Visible and fair processes

Table 1: Principles of Regulation

RENEWABLE ENERGY AND REGULATION have opted to conduct pilot projects for RETs intervention
with a view to understand the technical nuances with
The role of renewables in any country’s energy sector interconnection and tariff structure to be able to regulate
needed to be recognized as a macro-policy decision. better using best practice principles. It has been argued
It was a matter of national energy policy rather than a that the two common Renewable Energy resources solar
regulatory issue. Regulators implemented decisions taken and wind peaks do not coincide with the system peak;
by governments which were part of the national energy resulting in higher prices to the consumers. Currently a
policy that addressed issues such as security of supply mix of feed-in tariffs and net metering were being used
from a national perspective. However, this did not suggest in the region. The feed-in tariff scheme dominates both
that a government could implement a policy without the developed and developing countries. This had been
adequate framework of transparency. effective in allowing the implementation of decisions taken
by government in terms of promoting the development of
Renewable Energy Technologies (RETs) intervention in renewable energy resources. The regulatory dimension
the Caribbean is based on Government policies. In light was the fact that the cost of those decisions must be
of the foregoing, tariffs were developed to encourage passed through in a transparent way to the tariffs paid
the use of RETs. In some jurisdiction, the tariff used for by the consumers unless the government decided to
interconnected RETs to the grid was based on the avoided implement a separate mechanism to avoid transferring
cost of conventional generation. In other jurisdiction, part or all of the costs.
net metering was instituted versus net billing. Countries

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