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CONTACT US When we speak of Smart Grid we refer to class of technology that is being used in the Utility Electricity Delivery Systems. This system is made possible through the use of computerized and automated sys- For humans, energy is a necessity and as a scarce resource, it has been an underlying cause of po- litical conflicts and wars. Many What is Smart Grid? continued on page 2/ New solar smart grid technology.Newsolarsmartgridtechnology. Source: www.inhabitat.comSource:www.inhabitat.com
Citation preview
have their own opinions on the technolo-
gies that are developed and used in the
energy sector. Two such technologies that
have emerged in the quest to efficiently
utilize our energy resources are Smart
Grids and Net Metering. These two tech-
nologies are used in one of the highest en-
ergy consuming sectors – the Electricity
Sector. In this issue of the CEIS Petroleum
Update we will take a look at these tech-
nologies, identify some of the potential
benefits for the Caribbean, highlight some
of the barriers that may have prevented
use of these technologies in the region and
suggest the way forward.
What is Smart Grid?
When we speak of Smart Grid we refer to
class of technology that is being used in
the Utility Electricity Delivery Systems.
This system is made possible through the
use of computerized and automated sys-
Caribbean Energy Information System (CEIS)
October 2011
CARIBBEAN PETROLEUM UPDATE is a monthly Bulletin which highlights petroleum issues affecting or relevant to the
Caribbean, international developments that may affect the region’s way of life and movements in oil prices and retail prices for fuel regionally.
To access CEIS website
New solar smart grid technology.New solar smart grid technology.
Source: www.inhabitat.comSource: www.inhabitat.com
CONTACT US
Caribbean Energy Information System Scientific Research Council
Hope Gardens, Kingston 6, Jamaica 1-876-927-1779 (Telephone)
1-876-977-1840 (Fax) [email protected]
www.ceis-caribenergy.org
continued on page 2/
As we strive to improve
our quality of life a lot of
focus is being placed on
the use of technology. In
this quest to improve our lifestyle,
it is also appearing that the more
we use technology, the greater our
energy consumption. This should
ultimately be the other way
around and brings to mind the
“seesaw” effect which basically
operates a fulcrum by shifting the
weight from one side to the other.
This means therefore, that as we
focus on the use of new technolo-
gies we should ensure that the
balance between the use of the
technology and the energy con-
sumption remains even or shifted
to the side that result in less use of
energy.
For humans, energy is a necessity
and as a scarce resource, it has
been an underlying cause of po-
litical conflicts and wars. Many
page 2 Call: 1-876-927-1779 | Caribbean Petroleum Update : October 2011
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
continued on page 3/
tems along with two way communica-
tion systems through one of the most
widely used technology in the 21st
century – the Internet. It provides the
opportunity for real-time efficient man-
agement of our energy both by the
consumer and the power provider
thereby reducing our energy consump-
tion and the associated cost.
The concept of Smart Grid has been in
use since 2005 with the first commer-
cial scale system installed in Italy. To-
day the technology is increasing in use
in the United States and in other parts
of the world. Smart Grid offers a lot of
valuable features that can be used
within the Caribbean on a large scale in
the near future to deliver electricity
from producers to consumers, control
energy flow, reduce losses, and make
the performance of the electric network
more controllable
and reliable. An
effective Smart
Grid:
Must be reli-
able to provide
power when and
where needed
and at the quality users value.
Must be secure to withstand and be
less vulnerable to attacks (physical
and cyber) without experiencing mas-
sive blackouts or inflated recovery
costs. It must also be secure enough
to quickly recover from natural disas-
ters.
Must be economical to operate under
the basic laws of supply and demand,
resulting in fair prices and adequate
supplies for all.
Must efficiently employ strategies
that lead to cost control, minimal
transmission and distribution losses,
efficient power production, and
optimal asset utilization while provid-
ing consumers options for managing
their energy usage.
Must be environmentally friendly in
order to reduce environmental im-
pacts thorough improvements in
efficiency and by facilitating the inte-
gration of more intermittent resources
than could otherwise be reliably
supported.
Must be safe enough not to harm any-
one and sensitive to users who
depend on it as a medical necessity.
The real-time, two-way communica-
tions available in Smart Grid will
enable consumers to be compensated
for their efforts to save energy and to
sell energy back to the grid through net-
metering.
What is Net Metering?
For people in the Caribbean who have
been producing energy through renew-
able means the term Net Metering is
not new and is a very welcomed idea.
This is because net metering is a special
billing arrangement which allows the
connection of renewable energy-
generating systems to the power grid.
A Net Meter operates normally by run-
ning forward when a customer uses
more power than is being produced.
The opposite occurs when the reverse
happens and the excess power is fed
Can Smart Grids & Net Metering reduce the Caribbean’s dependence on fossil fuels? continued from page 1/
Caribbean Petroleum Update : October 2011 | Call: 1-876-927-1779 page 3
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
What do you think about this Issue? Share your thoughts with us at
into the grid. Net metering customers
are charged only for the “net” power
that is consumed from the electricity
service provider over a set period or, if
their renewable energy-generating
systems make more electricity than is
consumed, they may be credited or paid
for the excess electricity contributed to
the grid over that same period at the rate
charged by the Utility Company.
1-ph to 3-ph Bi-Directional Net
Meters
Source: www.generalpacific.com
The billing system provides benefits for
the consumer and the Utility Company
by ensuring that
customers al-
ways have a reli-
able source of
energy from the
grid during times
when their re-
newable genera-
tors are not pro-
ducing energy, and by providing the
opportunity for the consumer to sell into
the grid any excess electricity that is
produced from the renewable energy
system.
Potential benefits to the Caribbean
The potential benefits for the Caribbean
from the use of these two technologies
are enormous whereby a “transactive
environment” would be created thereby
facilitating financial, information, elec-
trical transactions and greater use of
grid assets among consumers. In simple
terms the use of these technologies in
the Caribbean could open up markets in
ways similar to how the Internet has.
Smart Grid and Net Metering will give
consumers information, control, and
options that enable them to engage in
new “electricity markets.” Grid opera-
tors will treat willing consumers as re-
sources in the day-to-day operation of
the grid. Well-
informed consum-
ers will modify
c o n s u m p t i o n
based on the bal-
ancing of their
demands and re-
sources with the
electric system’s
capability to meet
those demands.
Greater use of
renewable energy
would be encour-
aged and reduced
dependence on
fossils would ultimately be realized
thereby resulting in greater economical
benefits for the country. The additional
benefits are substantial to the electric
power-generating system, the economy,
and the environment when Net Meter-
ing is combined in a Smart Grid allow-
ing for greater management and use of
the energy produced.
Looking further ahead, the use of these
technologies in the Caribbean could
also see the use of other technologies
that are available but not yet accessible
by Caribbean countries for example the
use of Plug-in Electric Vehicles. Sup-
port could also be made for the creation
of new electricity markets from the
home energy management system at the
consumer’s premise to technologies that
allow consumers and third parties to bid
their energy resources into the electric-
ity market.
The Smart Grid and Net Metering will
support consistent market operation
across regions and in summary provide
improved reliability of power quality
and transmission, reduce cost and
expenditure for electric utilities and
consumers (households and businesses),
lower Greenhouse Gases (GHGs) and
other gas emissions, and create greater
awareness and management of our en-
ergy resources. Most importantly the
use of these technologies in Caribbean
countries will help break our depend-
ence on dirty fossil fuels, add to the di-
versification of our current energy port-
folio, reduce the pressure on our econo-
mies having to source scarce foreign
exchange to purchase fuel and help
lessen the environmental footprint asso-
ciated with electricity generation and
consumption.
Evidence seen in countries that cur-
rently employ these technologies shows
that customers and Utility Companies
Can Smart Grids & Net Metering reduce the Caribbean’s dependence on fossil fuels? continued from page 2/
Petroleum News & Happenings
MORE POWER! Gov’t, JPS renegotiate some areas of
licence>> 20/10/2011
Barbados’ cuts energy usage >> 18/10/2011
Cuba's offshore oil drilling not fully monitored by US >>
18/10/2011
Damian Obiglio resigns as president of the JPS >> 15/10/2011
A.E. Parnell Secures Handling and Launch Services
Contract for Petrojam >> 13/10/2011
Nevis Airport to provide all aircraft fuel >> 11/10/2011
JPS upholding international standards, according
to company official >> 9/10/2011
Oil drops to new lows >> 5/10/2011
continued on page 4/
page 4 Call: 1-876-927-1779 | Caribbean Petroleum Update : October 2011
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
tend to be much more aware of energy
consumption and there is increased en-
ergy in the power grid to keep up with
increases in demand during peak power
-use times resulting in less black-outs or
brown-outs.
Why Caribbean countries have not
“bomb rushed” Smart Grid and Net
Meter technologies?
The answer to the question above is
simple when assessed from a business
perspective. Most Utility companies in
the Caribbean region are large monopo-
lies or quasi government operated.
These utilities have a primary goal in
mind - maximizing of profits. As such,
they will seek to sell energy at the high-
est rates possible with little regard to
the consumer in relation to expenditure.
In addition, large investments would be
required to introduce these technologies
particularly Smart Grids as many utili-
ties are owned and operated by entities
that are not native to the region. As
such, there is great reluctance by the
investors to invest too much. Govern-
ments that are in countries where these
monopoly utilities operate have not
taken the necessary steps to ensure that
the utilities provide the most efficient
technologies for the production, distri-
bution and consumption of the energy
and to some extent it is believed that
they are being held at ransom not hav-
ing the capital to make the investments
themselves.
As it relates to the use of Net Meters,
there is a school of thought that is put
forward that there is reluctance on the
part of the Utilities to pay the self gen-
erators supplying excess energy at the
same rate that is
charged by the
utilities for the
energy sold. The
justification being
put forward by the
utilities for not
wanting to pay the
same rate is that
there is an avoided cost to the consumer
having not incurred the expenses to put
in the necessary infrastructure to trans-
port the energy to the consumer either
way. This school of thought has ne-
gated many consumers that may have
been thinking of investing in renewable
energy systems for the purpose of gen-
erating their own energy, and to sell any
excess to the utility company. As such,
investments are more attractive if the
possibility is there to earn.
Other reasons relate to the lack of
awareness regarding the use and bene-
fits of the technologies. Since the tech-
nologies are fairly new, many countries
have not developed the necessary pro-
grammes to sensitize the population
(utilities, household consumers and
businesses) on how these technologies
would provide more efficient use of
energy. In addition, the necessary legis-
lative environments are not in place in
many countries to facilitate fair trading
and fair competition.
The way forward
As we look to the future and in our
quest to improve our lifestyles through
greater use of technology, our focus
must also be on self preservation and
greater efficiency in the use of our
resources. It is imperative that the tech-
nologies that are developed to improve
our lives are efficient, safe, environ-
mentally friendly, and economical. Any
use of energy in such technologies must
be targeted towards yielding high effi-
ciency whilst negating the side effects
on humans, nature and the environment.
The way in which we extract, convert,
transport, store and use energy must
result in tangible long-term benefits.
Smart Grid and Net Metering can reap
significant benefits for Caribbean coun-
tries if approached in the correct way.
Large Utilities in the Caribbean such as
the Jamaica Public Service – JPS that
are seeking to increase their efficiency
and expand generating capacity must
now put the necessary infrastructure in
place that would promote the use of
these technologies which within possi-
bly another five years may become the
norm. Governments must seek to rene-
gotiate contracts with Utilities in order
to enforce the use of technologies that
would provide the greatest benefits to
country and the environment.
Policy makers and educators have a
very key role to play in facilitating the
development of the necessary legisla-
tive framework, infrastructure and envi-
ronment to allow for the use of these
emerging technologies. They must learn
from best practices and not re-invent
wheel. In addition, more incentive
programmes should be created to facili-
tate the full support of the private sector
which can act as change agents. Having
the right incentives and information
available for the use of these technolo-
gies can create an environment of in-
vestments thereby leading to economic
growth.
Finally, the Caribbean people must seek
to educate themselves on the emerging
technologies. The availability of addi-
tional grid intelligence and real time
information from the use of Smart
Grids and Net Meters will give planners
and engineers the knowledge to build
what is needed when it is needed, to
extend the life of assets, to repair equip-
ment before it fails unexpectedly, and
to more effectively manage the work
force. Operational, maintenance and
capital costs will be reduced thereby
keeping downward pressure on prices
and hence reducing our dependency on
fossil fuels for electricity generation.
Can Smart Grids & Net Metering reduce the Caribbean’s dependence on fossil fuels? continued from page 1/
Caribbean Petroleum Update : October 2011 | Call: 1-876-927-1779 page 5
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
REGULAR UNLEADED GASOLINE AVERAGE PRICES AT THE PUMP
January - October 2011
Declines in Crude oil prices in September and during October were seen in the retail prices for Regular Unleaded Gasoline in
some countries which showed decreases in prices. Of the sixteen countries reviewed at the end of October, retail prices for this
product in ten Caribbean countries had shown decreases when compared to the previous month while two countries showed
increases and the other four remaining relatively stable.
NOTE:
*US
Gallon = 3.785 L
*Imperial
Gallon = 4.546 L
*As at November
1, 2009 MTBE
was phased out
from all gasoline
blends in
Jamaica and
replaced with
10% Ethanol.
CHART
See prices for other products at See prices for other products at See prices for other products at www.ceiswww.ceiswww.ceis---caribenergy.orgcaribenergy.orgcaribenergy.org ...
Table: Regular Unleaded Gasoline Average Retail Price (US$/Litre)
2 0 1 1
COUNTRIES JAN FEB MAR APR MAY JUN JUL AUG AVG OCT SEP
ANTIGUA/ BARBUDA 1.00 1.00 1.07 1.15 1.25 1.33 1.30 1.30 1.57 1.30 1.30
BAHAMAS [91 OCT] 1.24 1.25 1.30 1.46 1.47 1.47 1.45 1.43 1.20 1.34 1.44
BARBADOS 1.47 1.48 1.49 1.59 1.59 1.59 1.59 1.66 1.22 1.60 1.66
BELIZE [87 OCT] 1.33 1.34 1.48 1.50 1.54 1.51 1.49 1.51 1.39 1.47 1.44
B.V.I [87 OCT] 1.12 1.13 1.20 1.26 1.26 1.27 1.25 1.22 1.46 1.22 1.22
DOMINICA 1.01 1.05 1.06 1.11 1.21 1.24 1.22 1.22 1.15 1.17 1.22
GRENADA (95 OCT) 1.05 1.06 1.17 1.23 1.29 1.32 1.29 1.29 1.23 1.28 1.31
GUYANA 0.99 0.99 1.06 1.08 1.08 1.12 1.15 1.14 1.09 1.14 1.14
JAMAICA 87 Octane[E10] 1.17 1.18 1.25 1.28 1.29 1.29 1.31 1.29 1.26 1.25 1.28
MONTSERRAT 1.13 1.14 1.18 1.27 1.38 1.42 1.35 1.32 1.28 1.27 1.32
ST. KITTS/ NEVIS 1.04 1.07 1.20 1.13 1.14 1.23 1.27 1.28 1.19 1.29 1.28
ST. LUCIA 1.14 1.14 1.16 1.22 1.27 1.28 1.28 1.27 1.22 1.21 1.25
ST. VINCENT/GRENADINES 0.99 0.98 1.00 1.06 1.10 1.17 1.24 1.24 1.12 1.22 1.23
SURINAME [95 OCT] 1.21 1.32 1.34 1.47 1.55 1.51 1.48 1.48 1.42 1.40 1.45
TRINIDAD/[92 OCT] 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42 0.42
TURKS/ CAICOS 1.36 1.36 1.42 1.42 1.45 1.55 1.61 1.60 1.49 1.54 1.60
page 6 Call: 1-876-927-1779 | Caribbean Petroleum Update : October 2011
C A R I B B E A N E N E R G Y I N F O R M A T I O N S Y S T E M ( C E I S )
During the month of October International oil prices
showed slight increases when compared to the previ-
ous month. However, prices remained below the
US$100/BBL with the highest price seen during the
last week of October at approximately US$93/BBL.
In comparison to the same period in 2008, Crude oil
prices were approximately 10% higher in October
2011. When compared, the average prices seen for the
months (Aug, Sep & Oct) showed that the average
price in August was approximately 25% higher than
September and October.
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BL
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BL