The Project aims to develop 22 community-scale solar plus battery storage micro-grids in southern Haiti in communities where currently no grid power exists. The Project will provide affordable and reliable 24/7 access to modern energy services in communities previously identified through extensive Contact online >>
The Project aims to develop 22 community-scale solar plus battery storage micro-grids in southern Haiti in communities where currently no grid power exists. The Project will provide affordable and reliable 24/7 access to modern energy services in communities previously identified through extensive market scoping in this region of the country. This will be accompanied by technical assistance to build capacity for microgrid deployment and operation. The Project incorporates a battery storage solution, thus offering 24-hour service and a 100 per cent renewable energy- based viable economic alternative to diesel generators.
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Haiti faces significant challenges in generating and distributing energy reliably, and lack of access to affordable and reliable power significantly hinders investment and business development. The majority of electricity is produced using imported fossil fuels. The government is exploring various avenues to lower costs and promote more efficient generation, distribution, and usage of electricity. Prospects for renewables such as solar, wind, small hydropower, and biomass systems – as well as digital solutions, such as smart grid technologies – make Haiti a potential energy market opportunity, but these systems have not yet been developed for large-scale use.
While an older hydropower plant is providing renewable energy, the poorest Haitians rely on biomass such as charcoal and wood as their main source of energy for light and cooking. The annual consumption of wood products was estimated at 4 million metric tons (MT), of which about one-third is transformed into charcoal to meet the cooking fuel needs of urban consumers. Wood and charcoal usage contribute to deforestation and pollution problems.
The government has faced consistent problems maintaining equipment and generating and distributing power throughout the country. Even for those with access to electricity, reliability is inconsistent, leading many businesses and larger households to install diesel generators. The lack of access to affordable and reliable power hinders investment, constrains the development of productive businesses, and degrades living standards for residential customers. Multinational businesses have also expressed dissatisfaction at the expensive energy rates in the commercial and industrial sectors, compared to other countries in the Caribbean and Latin America.
On average consumption is 21 Kilowatts (kW) per person annually, although the Ministry of Public Works estimates that consumption might be higher if illegal connections were included. Poor billing practices and unpaid invoices, including from government offices, also result in consistent shortfalls for the company, which operates at a loss. EDH''s latest recovery rate is estimated at 50 percent, with $163 million (22 billion gourdes) of accumulated debt over a 10-year period with its customers. According to information provided in 2021 from the Commercial Directorate of EDH, the government subsidizes the utility with approximately $250 million annually.
At the same time, the government has taken measures that have limited the effectiveness and ability of independent power producers to operate. In October 2019, the Haitian Council of Ministers issued a resolution instructing the Ministry of Finance to suspend payments to three named independent power producers related to the execution of power purchase agreements between the Government of Haiti and the power producers, and by the end of November 2019, two of those companies were no longer actively operating as independent power producers. Availability of electricity on the Port-au-Prince metropolitan grid fell by nearly half as a result.
In April 2023, EDH workers at the Peligre hydroelectric dam started a three-week strike over five months of unpaid salary arrears which led to a Port-au-Prince wide black out. Peligre is critical infrastructure in terms of Port-au-Prince electricity production since E-power, the only other metropolitan electricity producer, is reliant on Peligre''s operations. The strike ended following a temporary agreement between workers and the government but started again in June for a few weeks.
In September 2023, EDH announced a revision in its tariffication. The kilowatt per hour price is increasing from 9.57 gourdes to 22.30 gourdes for residential area ($0.07 cents to $0.17 cents), 13.67 gourdes to 31.84 gourdes for commercial area ($0.10 cents to $0.23cents) and 13.97 gourdes to 32.41 gourdes for industrial area ($0.10 cents to $0.24 cents). These increases make electricity rates in Haiti higher than the average in the region.
Haiti''s energy regulator ANARSE launched prequalification rounds to identify potential concessionaires for several regional electricity grids, including production, transmission, and distribution, in late 2020 and 2021. During 2020, ANARSE also assisted EDH with a procurement tender for the installation and operation of several hundred thousand prepaid smart meters for the metropolitan area and rural areas. Haiti''s largest electricity grid is the Port-au-Prince metropolitan grid. Some towns, such as Fort-Liberté in the northeast, have an electricity distribution network, but have been effectively abandoned by the national utility EDH. Users thus have to rely entirely on small, privately owned generators to meet their electricity demand.
Haiti’s relatively underdeveloped electricity grid means it can integrate renewable energy into its energy supply. According to the World Watch Institute study in 2014, Lake Azuéi in the country has potential that makes it the most attractive wind site in Haiti.
A 12MW solar plant has been funded by the IDB and USAID. Once completed in 2023, it will be the largest solar plant in the country and may provide a model for further such development in the future. The Government of Haiti has received funding from the World Bank to finance the Renewable Energy for All Project.
The National Energy Sector Regulatory Authority launched a call for tenders for the Design, Supply, Installation and Commissioning of a Photovoltaic Solar Power Plant with a storage battery connected to the Jacmel network, with the possibility of Operation and Maintenance for an initial period of two (2) years. The solar generation capacity of the Solar Power Plant will be 1.2 MWp with a storage capacity of 800 kW / 330 kWh. in the Commune of Jacmel, in the South-East Department and will be connected to the regional electricity network of Jacmel.
Haiti''s 2020 total GHG Emissions (mtCO2e) per the World Bank is 10,267.
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[Port-au-Prince, January 25, 2021] – The United States government, via the U.S. Agency for International Development (USAID), in partnership with the Inter-American Development Bank (IDB), gave $6.5 million for the construction of a new solar power plant at the Caracol Industrial Park. This solar power plant will improve access to electricity services for tenants at the Caracol Industrial Park (PIC) and 14,000 residential customers in the surrounding communities and will lower overall electricity costs. This large renewable solar energy program initiated by IDB, to which USAID is contributing, will finance the construction of two solar power plants inside the PIC, an 8 MW plant and a 4 MW plant, with a construction value of $23 million.
The U.S. Ambassador to Haiti, Michele Sison, said: "In addition to attracting investors and creating jobs, more affordable and reliable energy will improve the lives of residents living near the PIC. The U.S. hopes this partnership with the Inter-American Development Bank will contribute to an improved standard of living for Haitian families."
Electricity supply to the PIC is currently provided by the $17 million thermal plant, which was built in 2012 by USAID. The plant is a 10 MW thermal power facility operating since 2013 with heavy fuel oil and/or diesel by the non-governmental organization National Rural Electric Cooperative Association (NRECA), on behalf of USAID. Currently, the plant provides electricity service to five industrial clients operating 14 factories inside the PIC and five neighboring communes, serving more than 14,000 residential and business customers. However, tariffs are high for industrial users due to the price of imported fuel. (They are far higher than prices in the Dominican Republic, for example.) High energy costs threaten the competitiveness and sustainability of the PIC.
With the construction of these two solar power plants, USAID and its partners, including the IDB and Government of Haiti, are seeking to improve the economic competitiveness and sustainability of the PIC and its surrounding communes by providing a more affordable and reliable electricity service. The incorporation of cheaper renewable energy power into the system provides an opportunity to significantly reduce energy costs, which may stimulate economic growth and job creation in the area.
The construction of these solar plants will be implemented by the Ministry of Finance Technical Operating Unit (UTE/MEF), with technical support from the State energy regulator, Autorité nationale de régulation du secteur de l’énergie (ANARSE) and the Ministry of Public Works, Transport and Communication (MTPTC).
Pierre Michel Joassaint, Director General of UTE, says: "Thanks to the solar power plant, electricity costs will drop significantly, and the PIC will become more competitive. This should help attract new tenants and create more jobs in the park. UTE also expects the tariff to decrease for customers in surrounding communities, providing the opportunity to expand the grid and increase access to electricity in the region."
Both solar plants will be built inside the PIC on approximately 18 hectares of land already assigned for industrial use and will be connected to the existing power plant. The two solar plants will be operated and maintained by a single independent private operator. The contract for the design, installation, operation, and maintenance of the two solar power plants will be awarded by UTE/MEF through an international competitive bidding process launched in September 2020.
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