12 March 2013

This document is the National Energy Policy (NEP) of the Cayman Islands.

The NEP is structured as follows:

Vision for the NEP—this defines the orientation towards which the Cayman Islands intends to steer its energy sector; and provides the overall setting for the NEP’s Goals, Objectives, and Policies

•          Goals for the NEP—these state what the Cayman Islands wants to achieve for its energy sector: decrease costs of energy (as a priority), increase environmental sustainability, increase energy security, and contribute to economic development of the energy industry

•          Objectives of the NEP—these are dynamic objectives (in that they may evolve over time if technological and economic conditions allow it), and define measurable and quantifiable results expected to be produced in the long term: 21 percent of overall energy savings, 13.5 percent of electricity sold generated from renewable sources, and 19 percent reduction (3.5 million tons) in greenhouse gas emissions compared to a business as usual scenario

•          Policies for electricity (renewable energy, energy conservation, and energy efficiency in supply and demand), transportation, fuel products, land use, and public awareness and education: these (divided into general and specific policies) identify how to pursue desired results.

The Implementation Strategy and Plan complements this NEP by specifying the actions and resources to put the NEP in place, and monitor actual progress against the NEP’s goals and objectives.

Vision for the NEP

The vision for the NEP is the following:

To be an efficient, diversified energy sector, supported by informed public behavior within the Cayman Islands, which provides secure, reliable, and affordable energy in an environmentally sustainable manner.

Goals of the NEP

Through the NEP, the Cayman Islands aims at achieving the following four Goals:

1.         Decrease the cost of energy for the Cayman Islands as a whole, as a priority

2.         Increase the environmental sustainability of the Cayman Islands’ energy sector

3.         Increase energy security (the ability to access energy resources in sufficient quantities, reliably, and at prices that are reasonably stable, to support economic welfare and growth) for the Cayman Islands

4.         Contribute to economic development of the energy industry in the Cayman Islands.

Decreasing energy costs to the country as a whole should be pursued as the priority goal, given very high costs and prices of energy in the Cayman Islands. The priority granted to decreasing energy costs to the country as a whole has three important implications:

•          Pursuit of technology neutrality. The Government shall promote all and any energy technologies that allow reducing costs, as soon as they become viable and can benefit the country. Prioritizing certain technologies that are viable today shall not mean discarding once and for all other technologies that are not yet viable

•          Pursuit of net economic benefits. Where a sustainable energy policy would increase energy security, environmental sustainability, and economic development in the energy industry, but would also increase energy costs to the country, the Government shall pursue that policy only if local economic benefits exceed the economic costs—that is, provided that the Government is convinced that the policy may lead to net economic benefits for the country as a whole

•          Priority to local environmental sustainability. In assessing the net economic benefits that a policy should create for the Cayman Islands when it achieves greater energy security, environmental sustainability, and economic development, but increases energy costs to the country as a whole, the Government shall prioritize the increase in local environmental sustainability (that is, reduction of pollution and particulate matter emitted locally) over global environmental sustainability (that is, reduction of greenhouse gases, the emission of which matters at a global, and not local scale). The reason for this priority is threefold: (i) the Cayman Islands may enjoy the entire benefits of any additional costs that it incurs to increase local environmental sustainability by reducing emissions of pollutants and particulate matter—whereas it would only enjoy a minimal fraction of benefits (if any) of reducing global emissions of greenhouse gases; (ii) the Cayman Islands is a small island country that contributes marginally to global emissions of greenhouse gases, but may suffer disproportionally high damages from the emissions of other larger countries—prioritizing global over local environmental sustainability would mean spending disproportionately to try to solve a problem that is created by far larger countries, and that is beyond the Cayman Island’s control; (iii) many unrealized options are available to the Cayman Islands to avoid emissions of greenhouse gases while also achieving cost savings—it is possible for the Cayman Islands to contribute to greenhouse gas abatement in many ways while also saving money.

Objectives of the NEP

Objectives of the NEP shall be clearly measurable and quantifiable. This is necessary to allow objectives to be tracked, and to inform policy making.

The Objectives of the NEP shall be dynamic, not fixed. Dynamic objectives are intended to allow for appropriate flexibility in policy making and implementation. Progress against objectives shall be monitored, measured, and assessed periodically; and dynamic objectives shall be periodically updated as necessary.

In pursuing its objectives, the NEP shall be technology neutral in that it shall prioritize technologies that are feasible and commercially viable, while remaining open to supporting any technology as soon as it becomes technically feasible and economically viable in the Cayman Islands.

The Implementation Strategy and Plan includes interim objectives at five-year intervals, provisions for monitoring actual progress against the objectives set, and processes to revisit policies and objectives.

The 2030 NEP Energy Matrix shown in the figure below summarizes the country-level Objectives of the NEP for the long term compared to a Business as Usual scenario:

•          21 percent overall savings in energy use from all sectors:

–          27 percent savings in the use of electricity

–          20 percent reduction in water use

–          16.5 percent reduction of fuel use for transportation (a result of 20 percent increase in overall fuel efficiency, and 5 percent of additional fuel conservation)

–          8 percent of electricity displaced thanks to increased penetration of solar water heaters

–          no change in stationary uses

•          13.5 percent of electricity sold generated from renewable energy sources (9 percent of all energy consumed):

–          5MW of waste to energy in Grand Cayman

–          8MW of utility scale wind energy in Grand Cayman

–          18.8MW of solar photovoltaic (PV) energy (9MW utility scale and 8MW distributed scale on Grand Cayman; 1.3MW in Cayman Brac; and 0.5MW in Little Cayman)

•          19 percent overall reduction in emissions of CO2 (3.5 million tCO2 abated).

The above dynamic Objectives are the result of a forward-looking model that projects demand for energy over the long term, and identifies how to meet that demand at least cost by integrating sustainable measures to generate or consume energy. The model is a dynamic Excel-based tool that may be updated and used to revisit objectives in the future.

 

Energy Matrix in graphic 2030NEP illustrates end-uses of energy. SHW = solar hot water; solar PV = solar photovoltaic energy, achieved by transforming solar energy into electricity.

 

Electricity Policies

It is the Government’s policy that the electricity sector in the Cayman Islands develop according to principles of economic efficiency in cost, high quality and reliability of service, safety, and environmental protection.

 

The Government recognizes that renewable sources of energy may represent an economically viable way for the Cayman Islands to reduce its dependency on imported fossil fuels, while preserving the environment of the country and contributing to reducing global emissions of greenhouse gases.

 

The Government also recognizes that increased efficiency in the generation and consumption of electricity (including that related to water and wastewater) represents a significant and unrealized potential to save energy, money, imported fuels, and local as well as global emissions.

 

Considering the above, it is the Government’s policy to:

1.         Maintain and improve utility regulation for renewable energy

2.         Improve permitting and planning for renewable energy

3.         Promote the investigation of utility scale renewable energy potential

4.         Support consumer owned renewable generation

5.         Maintain and improve utility regulation for energy efficiency

6.         Ensure increased energy efficiency of new facilities and major renovations

7.         Support energy efficiency retrofits of existing facilities

8.         Consider undergrounding utility lines to enhance energy security

9.         Maintain and promote efficiency and conservation for water and wastewater.

Electricity Policy 1: Maintain and improve utility regulation for renewable energy

To maintain and improve utility regulation for renewable energy, it is the Government’s policy to:

•          Ensure that promoting renewable energy may lower the cost of power to the country, while achieving safety, reliability, power quality, and a prudent diversification of the generation portfolio

•          Allow electric utilities to obtain the Electricity Regulatory Authority’s approval of proposed renewable energy projects. The Electricity Regulatory Authority would approve them if it is satisfied that projects are reasonably likely to lower the total cost of generation

•          Preserve existing competition in procuring utility scale firm renewable generation to achieve least cost

•          Allow electric utilities to securely recover through tariffs the cost of investing in firm as well as non-firm renewable energy, and to make a return on those investments

•          Make cost recovery of renewable energy investments transparent and easy through a dedicated tariff component. The tariff component could be described as a ‘Sustainable Energy Factor’, and would allow utilities to recover their direct investment in all sustainable energy projects (renewable energy as well as fuel efficiency and end-use energy efficiency) plus an allowable return on that investment. Ideally, the ‘Sustainable Energy Factor’ would be established as part of a rate case, but would consequently allow the recovery of efficient investments as soon as they are approved and operational, to the benefit of customers

•          Require electric utilities to purchase renewable and cogenerated power from third parties at a margin below the electric utilities’ avoided cost. This obligation should extend to non-firm capacity at utility and distributed scale, as long as third parties provide adequate guarantees of reliability, comply with technical standards needed to preserve quality of power supply, and impose no unreasonable financial risks

•          Ensure that the tariff structure allows increased penetration of distributed renewable generation while preserving the utilities’ ability to recover fixed costs.  A disaggregated, cost-reflective tariff structure that charges separately for energy, backup and standby, and interconnection would allow increased uptake of distributed renewables (in addition to increasing transparency) while preserving the utilities’ financial viability

•          Expand Consumer Owned Renewable Energy (CORE) Programs in Grand Cayman and the Sister Islands while ensuring:

–          A fair rate that does not increase costs of energy to the country—this should be no more than avoided fuel cost under realistic dispatching conditions

–          An appropriate net billing mechanism—this would allow measuring separately the flow of energy sold to a customer (at the retail tariff) and the flow of energy bought from a customer (at the CORE rate). This can be done with just one bidirectional meter

–          A possibility to self-generate—as long as a disaggregated, cost-reflective tariff structure is implemented, to preserve the financial viability of electric utilities

–          A fair term that is no less than distributed systems’ economic lifetime

–          An easy and safe interconnection through a standard agreement

–          Reasonable limitations to the individual and overall eligible systems, having regard to economic and technical considerations that may evolve over time.

 

Electricity Policy 2: Improve permitting and planning for renewable energy

 

To improve permitting and planning for renewable energy, it is the Government’s policy to:

•          Consider implications for renewable generation on all islands in the permitting and planning process

•          Establish standardized permitting and planning requirements and processes for each renewable energy technology, prioritizing those that are technically and commercially viable

•          Review strata development rules to ensure that distributed solar systems (PV and water heaters) may be installed

•          Include any permitting and planning requirements for distributed renewable generation in the process for interconnecting under CORE Programs, to allow a streamlined procedure for small projects and limit transaction costs. Limits below which no particular permitting or planning requirement is needed could also be established, consistent with individual caps (kilowatt installed) for eligibility to CORE Programs

•          Review the airport exclusion zone requirements and restrictions, to consider whether and how to revise them to accommodate utility scale wind energy on Grand Cayman

•          Review the exclusion zone requirements and restrictions for a Doppler Radar Station, recognizing the benefits of such station coexisting with renewable generation, to consider whether and how to revise exclusion zones to accommodate utility scale wind energy on Grand Cayman

•          Periodically review permitting and planning requirements and other regulations, and revise them as necessary to ensure that they allow installing viable renewable generation and energy storage technologies.

Electricity Policy 3: Promote the investigation of utility scale renewable energy potential

To promote the investigation of utility scale renewable energy potential, it is the Government’s policy to:

•          Enable and support technical and commercial feasibility studies on utility scale renewable generation

•          Prioritize renewable technologies that are technically and commercially viable when committing public financial resources

•          Allow private parties to investigate the viability of innovative renewable energy technologies in the Cayman Islands, provided that they do so safely and sustainably, and in compliance with any appropriate safeguards and requirements.

 

Electricity Policy 4: Support consumer owned renewable energy (CORE) generation

 

To support consumer owned renewable energy (CORE) generation, it is the Government’s policy to:

•          Consider the removal or reduction of all import duty liabilities from consumer owned renewable energy systems and related equipment

•          Consider adopting fiscal incentives for consumer owned renewable energy systems and related equipment, including rebates on permitting and planning fees, fiscal exemptions, and tax credits

•          Secure funding and create ‘green’ financial incentives for consumer owned renewable energy systems and related equipment, including dedicated consumer finance facilities, favorable loan terms (preferential interest rates, grace periods, extended terms, preferential collateral requirements), risk management tools (loan guarantees, risk sharing facilities), grants, and rebates.

Electricity Policy 5: Maintain and improve utility regulation for energy efficiency

To maintain and improve utility regulation for energy efficiency, it is the Government’s policy to:

•          Require electric utilities to demonstrate that their capital investment plans include generation options that are likely to lead to least cost in generation as well as other fuel efficiency options, and to pass on through tariffs the resulting cost savings

•          Allow electric utilities to securely recover through tariffs the cost of investing in energy efficiency in generation and consumption, and to make a return on those investments

•          Make cost recovery of energy efficiency investments transparent and easy through a dedicated tariff component. The tariff component may be the same ‘Sustainable Energy Factor’ one used for investments in renewable energy

•          Implement a disaggregated and cost-reflective tariff structure. In addition to enabling a sustainable increase in distributed renewable generation, such a tariff structure would promote energy conservation and efficiency. The tariff structure should:

–          Charge separately for supply of energy, provision of generation capacity for backup and standby, and interconnection to the grid

–          Charge rates that reflect the actual cost of providing service to different types of customers (the cost of servicing larger customers is usually lower than that of servicing smaller customers)

–          Charge rates that vary by time of use in line with cost variations over the day, so far as this is practical and cost-benefit justified

–          Allow achieving any social objectives through cash transfers or other means that do not distort cost-reflective electricity rates.

•          Consider advanced metering and smart grid technologies to optimize electricity generation by utilities and consumption by customers, to the extent that they may reduce overall cost of service and allows customer savings.

Electricity Policy 6: Ensure increased energy efficiency of new facilities and major renovation.

To ensure increased energy efficiency of new facilities and major renovations, it is the Government’s policy to:

•          Amend the Building Code to mandate energy efficiency in:

–          Lighting, by defining a minimum standard for lighting density based on space type

–          Insulation, by defining minimum standards for insulation values of walls, doors, roofs, and ceilings; window properties; and tightness of building envelope

–          Equipment, by setting minimum standards for electrical, thermal, and mechanical devices

–          Ventilation

–          Water use

Existing codes, such as the International Energy Conservation Code or those of the American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE), shall be reviewed and adapted for use in the Cayman Islands

•          Amend the Building Code to allow safe and easy incorporation of renewable energy systems, particularly solar PV systems and solar water heaters

•          Require new or redesigned landscaping to optimize irrigation and use of local vegetation

•          Incentivize and recognize international building efficiency standards that exceed minimum Building Code requirements. Fiscal measures and rebates on permitting and planning fees may be used as incentives.

Electricity Policy 7: Support energy efficiency retrofits of existing facilities

To support energy efficiency retrofits of existing facilities, it is the Government’s policy to:

•          Define energy efficiency standards for equipment and material, adopting existing ones from other countries

•          Remove or decrease duties on equipment and material at or above the standard

•          Ban or increase duties on equipment and material below the standard

•          Aim at making the duty regime for equipment revenue neutral for the Government

•          Promote an energy audit system providing energy efficiency information on buildings for sale and leased property to potential tenants.

 

Electricity Policy 8: Consider undergrounding utility lines to enhance energy security

To consider undergrounding utility lines to enhance energy security, it is the Government’s policy to:

•          Encourage utilities to assess whether benefits of undergrounding lines would exceed costs

•          Allow utilities to recover approved costs of undergrounding lines.

Electricity Policy 9: Maintain and promote efficiency and conservation for water and wastewater

To maintain and promote efficiency and conservation for water and wastewater, it is the Government’s policy to:

•          Maintain or improve water utilities’ specific energy consumption for desalination

•          Maintain current low levels of non-revenue water

•          Adopt a cost-reflective rate structure for water, incentivizing its efficiency and conservation

•          Encourage rainwater harvesting to supplement municipal piped water, through measures such as increased information and awareness, or requirements in the building code (or permitting and planning rules) to include underground rainwater tanks in new developments

•          Encourage use of fresh groundwater, but limiting extraction rates to make them sustainable with regard to replenishing rates

•          Encourage customers to conserve water through low-flow fixtures, water-saving appliances, and landscaping methods that rely on limited water requirements

•          Consider preferential duties or fiscal incentives for efficient water fixtures adopting existing standards

•          Encourage water utilities to invest in renewable energy generation and water efficiency of their customers by allowing them to recover the cost of those investments through tariffs, and earn a return on them

•          Carry out benchmarking of the central wastewater system that serves the Seven Mile Beach Area to identify and achieve higher efficiency in wastewater collection and treatment

•          Repair, improve, and upgrade the centralized wastewater collection and treatment system serving the Seven Mile Beach Area to reduce saline groundwater infiltration so that effluents may be used for irrigation

•          Establish a comprehensive regulatory framework for the beneficial reuse of wastewater treatment products (effluent and biosolids) as a source for irrigation water, soil amendment and biogas generation

•          Introduce a septage manifest system to maximize the potential for beneficial reuse of wastewater treatment products (effluent and biosolids) as a source for irrigation water, biogas production, and soil amendments

•          Develop island-wide wastewater management and storm water management plans to optimize treatment and disposal of wastewater and storm water, inclusive reuse throughout the islands

•          Introduce an energy rating system, administered by the Water Authority, to assess the relative efficiency of onsite wastewater treatment systems.

Transportation Policies

It is the Government’s policy that the transportation sector in the Cayman Islands develop in a safe, energy efficient, and environmentally sustainable way; and that transportation flows be optimized to reduce congestion and increase good service to the population.

The Government recognizes that the transportation sector represents a major unrealized potential for energy efficiency and conservation.

Considering the above, it is the Government’s policy to develop a National Transportation Plan that will:

1.         Encourage the purchase of more fuel efficient vehicles

2.         Consider a prudent encouragement of alternative fuel transportation

3.         Encourage cycling as an alternative mode of transportation

4.         Encourage walking as an alternative mode of transportation

5.         Increase traffic efficiency

6.         Improve parking efficiency

7.         Improve public transportation.

Transportation Policy 1: Encourage the purchase of more fuel efficient vehicles

This policy aims at increasing the relative share of more fuel-efficient vehicles in the fleet of the Cayman Islands. To encourage the purchase of more fuel efficient vehicles, it is the Government’s policy to:

•          Adopt a differentiated customs and fiscal regime for vehicles based on relative fuel efficiency—in particular, through programs that charge vehicles that are above a median point an additional fee, and grant a rebate on the fee to vehicles that are below that point, aiming at a revenue neutral effect on Government

•          Provide information about vehicle fuel efficiency—carrying out an information campaign based on available data, and adopting vehicle labeling requirements to show comparative fuel efficiency and operating costs at dealerships

•          Purchase more fuel efficient vehicles for use by Government and other public entities—leading by example may encourage the population to adopt similar choices, and also contribute to providing more information.

Transportation Policy 2: Consider a prudent encouragement of alternative fuel transportation

Alternative fuel for transportation that makes economic sense should be enabled to develop in the country, while being cautious about providing incentives to options that may or may not provide net economic benefits. To consider a prudent encouragement of alternative fuel transportation, it is the Government’s policy to:

•          Make alternative fuel vehicles eligible for the differentiated customs and fiscal regime, based on relative fuel efficiency adjusted by fuel content

•          Explore the technical and commercial viability of limited blends of ethanol in gasoline (up to E10) and biodiesel in diesel (up to B5)

•          Observe the development of containerized compressed natural gas (CNG) technology

•          Further assess the viability of liquefied petroleum gas (LPG) for transportation.

Transportation Policy 3: Encourage cycling as an alternative mode of transportation

Cycling should be encouraged to increase safety, reduce transportation costs, alleviate traffic congestion, and decrease vehicle emissions while supporting a more healthy lifestyle of the population. To encourage cycling as an alternative mode of transportation, it is the Government’s policy to:

•          Identify willingness to use cycling as an alternative mode of transportation, and key cycling routes, recognizing the ‘network effects’ of bike facilities and the need to target the most cost-benefit justified actions

•          Provide customs and fiscal incentives for purchasing bicycles

•          Require including bike lanes on selected roads, considering commuting and tourist routes, as well as those routes that interconnect schools—and considering in particular new roads where bike lanes may be included from the outset

•          Consider the development of bike paths for selected itineraries, and provide them  with sufficient vegetation or shelter to protect from the sun and encourage their use

•          Consider incentives for developers that include bike lanes or paths

•          Provide bike-friendly facilities in selected areas, including locking docks, covered spaces at commuter destinations, pumps, footrests at traffic lights, and showers in office buildings.

Transportation Policy 4: Encourage walking as an alternative mode of transportation

Walking should be encouraged to increase safety, reduce transportation costs, alleviate traffic congestion, and decrease vehicle emissions while supporting a more healthy lifestyle of the population. To encourage walking as an alternative mode of transportation, it is the Government’s policy to:

•          Identify key areas for pedestrian development, planning them to optimize costs and benefits

•          Designate pedestrian-only areas where appropriate

•          Improve and expand the network of sidewalks and pedestrian crossings, increasing their quantity, quality, and safety

•          Consider incentives for developers that incorporate walkability in project design.

Transportation Policy 5: Increase traffic efficiency

The efficiency of traffic should be improved with approaches that enhance the collective interest in the use of shared roads. To increase traffic efficiency, it is the Government’s policy to:

•          Plan and deploy modern traffic planning and management technologies, including provision of real-time traffic information, use of sensors to regulate traffic lights, and use of multi-function message panels

•          Adopt measures to increase road supply, to the extent necessary and possible, such as new roads and additional lanes and one-way traffic on selected routes and at selected times

•          Adopt measures to decrease road demand, including congestion pricing, restrictions to circulation, and staggering selected public services (such as trash collection) to off-peak times

•          Encourage flexible work practices, such as telecommuting or flexible work schedules, starting from the public sector to lead by example

•          Increase the efficiency of seaport and airport connections through a comprehensive plan including new infrastructure, green travel plan for workers, and better access to public transportation modes.

Transportation Policy 6: Improve parking efficiency

The efficiency of parking should be increased with approaches that privilege the collective interest in sharing limited common resources. To improve parking efficiency, it is the Government’s policy to:

•          Reduce demand for parking in selected areas through parking fees or parking prohibitions

•          Increase supply of parking, particularly just outside congested or pedestrian areas, and in coordination with policies to encourage modular commuting (such as providing Park-and-Ride facilities). In some pedestrian areas, conversely, angled parking may be beneficial to traffic

•          Require large developments to use parking garages.

Transportation Policy 7: Improve public transportation

Public transportation should be improved to increase its use by the population, reducing traffic congestion and increasing the overall efficiency of transportation in the Cayman Islands. To improve public transportation, it is the Government’s policy to:

•          Improve service coverage to meet demand, extending routes and stops

•          Improve service quality, including bus shelters

•          Consider amending traffic law to allow public transportation on private roads

•          Improve payment modes, such as electronic rechargeable tickets

•          Provide incentives to the elderly, students, and frequent users, where the cost of incentives would be more than compensated by benefits of increased demand

•          Consider supporting new modes of public transportation, in particular shuttles between residential areas and employment, Park-and-Ride centers, and Bus Rapid Transit (BRT) systems, as part of a National Transportation Plan.

Fuel Products Policies

It is the Government’s policy that fuel products be imported and used in the Cayman Islands according to economic efficiency, security of supply, public safety and health, and environmental sustainability.

The Government recognizes that imported fossil fuels are likely to represent the major primary energy resource for electricity, transportation, and stationary uses of energy in the Cayman Islands for the foreseeable future. The Government also recognizes that the Cayman Islands’ potential for using cleaner fuels, both fossil-based and not, may be limited due to current and foreseeable economic or technological conditions.

Considering the above, it is the Government’s policy to:

1.         Ensure sustainable handling, storage, and off-island disposal of waste oil

2.         Ensure a secure, reliable, and competitive supply of petroleum products

3.         Indefinitely postpone any assessment of the viability of nuclear energy for power generation

4.         Ensure quality of aviation jet fuel and kerosene

5.         Carefully consider the viability of Heavy Fuel Oil.

Fuel Products Policy 1: Ensure sustainable handling, storage, and off-island disposal of waste oil

To ensure sustainable handling, storage, and off-island disposal of waste oil, it is the Government’s policy to:

•          Maintain existing efficient practices to collect and handle waste oil

•          Require all private operators that generate waste oil to follow best practices for handling and storage of waste oil, ensuring safety for the environment, and making off-island export possible

•          Provide information on sustainable waste oil handling and storage, as a complement to requirements

•          Define a backstop option for waste oil environmental emergencies, to ensure a reliable access to collection and disposal systems, and if necessary cooperation with overseas entities, in the event of an emergency

•          Encourage private operators to collect and export waste oil for off-island recycling and disposal, while leaving the recycling business to free market forces

•          Ensure compliance with international agreements on the export of hazardous waste.

Fuel Products Policy 2: Ensure a secure, reliable, sustainable, and competitive supply of petroleum products

To ensure a secure, reliable, and competitive supply of petroleum products, it is the Government’s policy to:

•          Maintain efficient procurement and storage practices, including hurricane risk insurance, adequate storage capacity, and fuel hedging contracts

•          Maintain and improve transparent and competitive fuel procurement processes for power generation, possibly combined with additional storage capacity to increase the opportunity to reduce costs

•          Consider increasing the resilience of fuel supply to national disasters or emergencies

•          Consider mandating the procurement of ultra low sulfur diesel

•          Treat alternative fuels according to the principles of technology neutrality and pursuit of net economic benefits—Liquefied Natural Gas (LNG) for power generation, CNG, and LPG might be considered if and when they become viable for the Cayman Islands, although they do not seem a priority currently.

Fuel Products Policy 3: Indefinitely postpone any assessment of the viability of nuclear energy for power generation

It is the Government’s policy to indefinitely postpone any assessment of the viability of nuclear energy for power generation, considering the unfavorable economics of Small Modular Reactors (SMRs) at present and for the foreseeable future, as well as problems of regulatory competence, accident liability, and handling of spent nuclear fuel.

Clause 23(4)(c)(vi) of the ERA Law, which states that the primary source of energy shall in no circumstance include the use of nuclear fission for the generation of electricity, shall remain unchanged.

Fuel Products Policy 4: Ensure quality of aviation jet fuel and kerosene

To ensure quality of aviation jet fuel and kerosene, it is the Government’s policy to:

•          Maintain industry test standards for aviation jet fuel and kerosene

•          Maintain current procurement practices for aviation jet fuel and kerosene

•          Ensure that fuel suppliers comply with set international regulatory standards for quality control.

Fuel Products Policy 5: Carefully consider the viability of Heavy Fuel Oil

 

It is the Government’s policy to:

•          Assess whether using HFO compared to diesel for power generation would create net economic benefits, considering fixed (capital) and variable (operational) costs

•          Decide whether the environmental risk of importing HFO instead of diesel fuel is acceptable.

Land Use Policies

It is the Government’s policy that land use in the Cayman Islands be optimized to contribute to overall efficiency in energy use and energy conservation.

The Government recognizes that land use represents a key potential to for ensuring the NEP’s Goals. Therefore, it is the Government’s policy to:

1.         Encourage zoning diversity and mixed use development

2.         Increase the efficiency of commercial and industrial zoning and land use

3.         Increase the efficiency of residential zoning and land use

4.         Increase the efficiency of hotel and resorts zoning and land use

5.         Increase the efficiency of agriculture zoning and land use

6.         Increase the efficiency of public service zoning and land use

7.         Support the incorporation of sustainable energy measures in landscaping

8.         Promote densification of new developments and proximity to major transit corridors

9.         Improve connectivity between housing developments

10.       Increase local and global environmental sustainability in land use.

Since zoning in the Cayman Islands is applicable only to Grand Cayman, the Government intends to optimize land use for increased energy efficiency and conservation in the Sister Islands in a way that achieves results comparable to those of the above policies, while being consistent with the planning framework applicable in Little Cayman and Cayman Brac.

Land Use Policy 1: Encourage zoning diversity and mixed use development

To encourage zoning diversity and mixed use development, it is the Government’s policy to:

•          Identify the feasible level of zoning diversification and mixed use development

•          Determine quality and quantity benchmarks for mixed use development for all districts

•          Establish guidelines for land use and development to support public transportation

•          Increase public awareness about the benefits of mixed use development

•          Consider amending existing legislation, regulations, and plans to allow zoning diversity and more mixed use development.

Land Use Policy 2: Increase the efficiency of commercial and industrial zoning and land use

To increase the efficiency of commercial and industrial zoning and land use, it is the Government’s policy to:

•          Identify suitable sites to locate commercial and industrial zones by district

•          Revise the Development Plan as needed to define commercial and industrial zones

•          Amend planning legislation to allow commercial and industrial development in other zone types as long as it does not hurt public health.

Land Use Policy 3: Increase the efficiency of residential zoning and land use

To increase the efficiency of residential zoning and land use , it is the Government’s policy to:

•          Site new residential developments near employment, education, and commercial areas

•          Allow more commercial development in residential zoning where appropriate

•          Locate higher density residences closer to transportation corridors

•          Assess the introduction of more energy efficient houses

•          Amend legislation, if needed, to allow new housing types.

Land Use Policy 4: Increase the efficiency of hotel and resorts zoning and land use

To increase the efficiency of hotel and resorts zoning and land use, it is the Government’s policy to:

•          Grant preferential permitting and planning to certified energy efficient hotels and resorts

•          Require hotels and resorts to integrate pedestrian- and public-transport friendly design in the planning application process.

Land Use Policy 5: Increase the efficiency of agriculture zoning and land use

To increase the efficiency of agriculture zoning and land use, it is the Government’s policy to:

•          Rezone agricultural areas as needed to reflect appropriate land use

•          Rezone areas best suited to agriculture as agricultural

•          Allow and promote agriculture in other zone types

•          Encourage energy efficient agricultural practices.

Land Use Policy 6: Increase the efficiency of public service zoning and land use

 

To increase the efficiency of public service zoning and land use, it is the Government’s policy to:

•          Improve diversion of recyclable materials from waste stream to conserve landfill space

•          Require public service providers to be cognizant of their service areas from a public service perspective, as well as an energy conservation perspective

•          Develop an open space strategy (including land banking, community gardens, habitat preservation, and others).

Land Use Policy 7: Support the incorporation of sustainable energy measures in landscaping

To support the incorporation of sustainable energy measures in landscaping , it is the Government’s policy to:

•          Require landscaping plans submitted as part of planning applications to include energy efficient measures, including passive shading, cooling microclimates, and irrigation efficiency

•          Encourage shading and aesthetics to stimulate pedestrianism

•          Promote the use of solar pumps and lighting where commercially viable

•          Encourage breeding of plants in local nurseries

•          Consider plants in containers with built-in reservoirs when in-soil rooting is not possible.

Land Use Policy 8: Promote densification of new developments and proximity to major transit corridors

To promote densification of new developments and proximity to major transit corridors, it is the Government’s policy to:

•          Review consistency of current rules on development density with energy efficiency

•          Revise rules on development density and area and allowable building height to encourage denser buildings

•          Revise planning and strata rules to incorporate higher densities at development nodes and adjoining transportation corridors

•          Revise lot sizes, widths, and access to encourage compact development

•          Develop and implement standards for cluster development—an approach that promotes higher walkability and density while preserving open space and decreasing the cost of development.

Land Use Policy 9: Improve connectivity between housing developments

To improve connectivity between housing developments, it is the Government’s policy to:

•          Require subdivision developers to incorporate connections between housing developments and pedestrian infrastructure

•          Improve routing system for solid waste collection by connecting subdivisions and neighborhoods.

Land Use Policy 10: Increase local and global environmental sustainability in land use

It is the Government’s policy to:

•          Consider creating dedicated zones for environmentally sensitive areas such as mangrove, coast, and forest habitats

•          Consider the global greenhouse gas mitigation effects of preserving mangrove and forest habitats.

Public Awareness and Education Policies

It is the Government’s policy that the population become more aware of, and educated on sustainable supply and demand of energy, in support of all NEP Goals. The Government recognizes that increased awareness and education are key to ensuring a successful achievement of the NEP’s Objectives.

It is therefore the Government’s policy to:

1.         Increase public awareness for informed choices on sustainable energy

2.         Improve public education and professional qualifications for sustainable energy.

Public Awareness and Education Policy 1: Increase public awareness for informed choices on sustainable energy

To increase awareness among the general public, allowing it to contribute to the country’s efforts to move towards a more sustainable supply and demand of energy, and to make more informed choices, it is the Government’s policy to:

•          Allow the public to be more aware of how it consumes energy, and what options are best suited to conserve it and use it more efficiently to save money

•          Ensure that the public is effectively informed of all incentives, programs, and initiatives in place to support sustainable energy, and that it is actually able to participate in and benefit from them

•          Adopt the Communications Strategy to inform the public about the NEP, obtain their feedback at pre-implementation stage, and disseminate it at implementation stage

•          Adopt a Public Awareness Plan under which the following public awareness tools are to be developed and implemented, or improved as needed when already existing:

–          Energy labeling for energy-consuming appliances (including requirements for display at retail stores) and equipment (including vehicles)

–          Web-based resources by Government, public service utilities, and other entities

–          Printed, radio, and television media campaigns

–          Public outreach events—seminars, workshops, and town hall meetings

–          Information about energy efficient commuting options (carpooling, public transit, walking, biking)

–          Bicycle safety

–          Driving efficiency techniques for reduced diesel and gasoline consumption

–          Benefits of mixed-use development and denser zoning

–          Efficient building design and landscaping (through a sustainable design guide)

–          Water conservation (water saving appliances, low water consumption landscaping, rainwater harvesting)

–          Solid waste collection and disposal (waste reduction, recycling)

–          Handling and disposal for collectors of waste oil to avoid contaminations and ensure compliance with international agreements.

Public Awareness and Education Policy 2: Improve public education and professional qualifications for sustainable energy

To educate citizens and form professionals that are competent and skilled for energy-related services, it is the Government’s policy to:

•          Ensure that primary education covers basic information regarding energy efficiency and conservation, through teaching as well as empirical observations and practical examples

•          Ensure that individuals who want to work in energy-related fields may acquire satisfactory knowledge and skills to do so successfully through secondary and tertiary education or vocational training, in cooperation with the University of the Cayman Islands and other entities

•          Adopt a Public Education and Professional Strengthening Plan under which the following would be implemented:

–          A gap analysis for curricula at primary, secondary, and tertiary education entities

–          Updating of curricula based on the results of the gap analysis

–          Workshops for primary, secondary, and tertiary level education to introduce sustainable energy topics in existing coursework

–          Laboratory facilities and training equipment

–          Establishment, as needed, of new vocational colleges or polytechnics

–          Scholarships and incentive programs

•          Adopt certifications informing consumers about the qualifications of professionals in energy-related fields. External certifications may be recognized, or local ones developed (including vocational qualifications) if necessary

•          Review licensing requirements for local professionals to ensure that they have the necessary skills to carry out dangerous activities without putting the health and safety of the population or the environment at risk.