Antigua and Barbuda: Energy Resources

Extend network

Antigua has a generating capacity of 58 MW, and a peak load consumption of 40 MW, whereas Barbuda has a capacity of 700 kilowatts and an estimated peak load consumption of 700 kilowatts. Distribution occurs via an 11 kV line supplying 22 distribution feeders.

Virtually 100% of the country has access to the electricity network.

Energy procedure

The recently established National Energy Task Force Antigua and Barbuda has begun the process of data gathering, and is also gearing up for a series of stakeholder consultations as it fulfils its mandate of producing a comprehensive and strategic National Sustainable Energy Policy.

Energy debates

Currently, Antigua & Barbuda’s public, private and civil society energy stakeholders are engaged in a public debate around the new energy policy that the Government of Antigua & Barbuda seeks to put in place. A referendum was held on March 18th 2010 regarding the potential for renewable energy and the reduction in dependence on fossil fuels in the country.

Energy sources

Total installed electricity capacity (2007): 27 MW Reciprocating diesel: 70% Steam: 30%

Antigua and Barbuda has no indigenous sources of oil, natural gas, coal or hydropower. All energy and electricity generation is fossil fuel based. Petroleum is used extensively, mainly for electricity production and transportation. The dependence on imported fossil fuels makes electrical generation costs susceptible to fluctuating world oil prices. Additionally, the nation is located in a hurricane-vulnerable area of the Caribbean and depends on a structurally enhanced, hurricane-resistant model of power generation and transmission.

Total primary energy supply (2006): 226.8 ktoe Petroleum products: 100%.

Electricity on Antigua and Barbuda is provided by a combination of leased generators and a diesel fuelled IPP, in addition to the utility’s own capacity. The total share of capacity contracted by the utility has grown from 40% in 2004 to 62% in 2009.

Supply by APC has grown as APUA has chosen the IPP to replace its own aging plants to supplement new investments in its own equipment. This transition has caused some power supply and political problems in the past, but these appear to have been resolved. APUA leases generators from West Indies Oil Company (WIOC), a regional oil products terminal in Antigua, and Aggreko, an international power generator rental company. One of the APUA plants is a combined power and desalination plant.  

Regulatory roles

Electricity is generated from imported fuel and the price paid by the consumer fluctuates directly with the price of imported fuel through a set pricing formula, which leaves untouched the income accruing to APUA. In other words, the income of the utility company remains a function of the prices set by regulation and the regulatory pricing model in use.

The APUA is responsible for all areas of electricity regulation in the country, including tariffs for electricity, as well as performance standards and the allocation of generation licenses to private firms.

Competition

APUA is a vertically-integrated company, with divisions responsible for all aspects of the electricity sector. The company maintains a monopoly on electricity services in the country.  

Energy efficiency

The residential sector in the country contributes most to primary energy demand (42% in 1998), indicating the need for improved efficiency measures in the sector. Initiatives are planned in the country to create an institutional framework for energy management, as well as the undertaking of a complete energy review of the country.

Capacity concerns

The quality and delivery of electricity supplied by Antigua Public Utilities Authority (APUA), in particular, has deteriorated considerably in recent years, due to its electricity generating plants being old and in need of considerable maintenance. Currently, the APUA Electricity Division only supplies a portion of the country’s electricity needs. A privately-owned company meets the balance.

Even with the privately supplied electricity, Antigua and Barbuda suffers from frequent power outages because of breakdowns at the APUA power generation plants. APUA intends to upgrade its power generation facilities, but its financial situation is very weak.

Inefficiency of electrical supply appears to be a significant problem for APUA. Transmission and distribution losses were 38% in 2007. This number is expected to decrease significantly, to 10% after 2011.

Government agencies

The Prime Minister of Antigua and Barbuda established both the Sustainable Energy Desk and the National Energy Task Force in early 2010. The National Energy Task Force is commissioned to develop the National Sustainable Energy Policy (NSEP) with assistance of OAS/CSEP project, and includes government, business, financial, and utility stakeholders. It appears that the NSEP has the framework of a national energy National Energy Policy (NEP), since press releases for the NSEP do not refer to any existing energy goals. It is unknown whether the task force is engaged with any international organizations on the development of this energy policy.

Energy regulation role

The Office of the Prime Minister has, within it, a Sustainable Energy Officer, responsible for pursuing goals relating to the uptake of renewable energy technologies in the country.

Ownership

The Antigua Public Utilities Authority (APUA, http://www.apua.ag/) is a state-owned public utility responsible for the distribution and sale of electricity in the country; it is controlled by the Ministry of Works, Transportation and the Environment. While government policy on self-generation is unknown, independent power producers are allowed by contract with APUA. Antigua Power Company (APC) is an IPP that has supplied power to the APUA grid since 1996.

Degree of independence

The creation of regulatory legislation and policy is the responsibility of the Minister of Public Utilities, a Cabinet member.

Energy debates

Antigua and Barbuda are part of the Caribbean Community and Common Market (CARICOM) network, whose responsibilities include the quarterly publication of a newsletter relating to energy issues in the region, as well as investigations into a comprehensive energy policy for the entire region. 

Energy framework

The government has made important strides in its energy policy, establishing a Sustainable Energy Desk and commissioning a National Energy Task Force to develop a National Sustainable Energy Policy. Although the potential of most renewable energy sources are unknown at this point, Antigua and Barbuda is beginning assessment of wind resources with the installation of four meteorological towers in June 2010.

Reliance

The country is largely dependent on imported oil to generate electricity, with fuel imports comprising 35% of all import merchandise. Oil imports are around 4,500 barrels per day.

Role of the government

The Sustainable Energy Desk, within the Office of the Prime Minister, is responsible for leadership of energy policy and enacting the National Sustainable Energy Policy, following its approval.

Regulatory framework

The production of a National Sustainable Energy Policy is ongoing, with preliminary data collection having started in March 2010. Consultations were held with interested commercial and public parties, with recommendations accepted from all sources. The efficiency and energy conservation of Government ministries in the country is also monitored by the APUA.

Regulatory barriers

Unbundling of the APUA's activities in the sector into separate companies, followed by the establishment of an independent regulatory authority, could promote fair regulatory practice.

No dedicated policy for the promotion of sustainable energy exists in the country, although the necessity for such a policy is recognised by the Government, and progress in the area is ongoing.

Energy regulator

The Antigua Public Utilities Authority (APUA, www.apua.ag) is a Government agency established under the Public Utilities Act of 1973 to provide electricity, water and telecommunications services. It owns three power generating facilities, leases one from West Indies Oil Company and has contracted with the privately owned Antigua Power Company (APC) to supply about 40% of the country’s electric generation needs.

Renewable energy

As of 2003, no renewable energy installations were operating in the country.

Solar energy Antigua and Barbuda are reported to have one of the best potentials for solar energy development in the Caribbean. Solar water heaters have already achieved some commercial success in the country. Lack of awareness has been blamed for the lack of further uptake of the technology.

Wind energy In the past, Antigua produced sugar by wind power — indicating a good wind resource. However, recent attempts to use wind energy for electricity generation have proved less successful due to high up-front costs, lack of data on wind measurements, and low technical capacity.

A study sponsored by APUA (Wind Energy Survey Antigua and Barbuda, Energy Engineering Corporation, November 2008) indicated that in Barbuda, the “Highlands” area offers the most promising wind farm site. At 33 meters above sea level, this plateau of 38 km2 can support 400 MW of wind turbines, generating 900 GWh per year, with little visual impact because the area is five kilometres from population centres.

Biomass/Biofuels Little research has been done into the potential for these resources in the country; however, sugar production in the country indicates the potential for exploitation of bagasse for heat and co-generation purposes.

Geothermal/Hydropower No assessment into the potential for these resources in the country has been conducted. The highest point in the country stands at 399m above sea level, indicating a possible potential for small hydropower.