The energy sector in Haiti is characterized by a severe electricity crisis, with average annual electricity usage per capita at 37 kwh and approximately 10 percent of the population connected. The installed electric generating capacity is approximately 223 megawatts, with EdH’s current cost of generation at US$0.15/kWh and electric tariffs at USD$0.08/kWh, indicating an unsustainable situation. As a result, new investment and regular maintenance are not occurring, and the service situation is worsening.
Many private sector entities have resorted to purchasing distributed generation systems to meet their energy needs, estimated to be anywhere from 75 to 125 MW of additional capacity. The international community has agreed to work together under the Interim Cooperative Framework (ICFICCI) to help Haiti, which specifically outlines how the government (with the assistance of the international community) will again become functional and be fully responsible for providing public services, including energy, and promoting the rule of law.
The current electricity crisis in Haiti is so severe that USAID should seriously consider a substantial commitment to reform and rehabilitate the electricity sector. USAID should consider supporting energy sector activities in the following areas: institutional/legal reform and development, targeted support for rehabilitation of the physical infrastructure, targeted support for specific secondary cities, support coordination between other donor organizations, and support sustainable management and utilization of alternative energy sources such as biomass and/or solar.
The energy sector in Haiti is facing significant challenges, including a lack of investment and maintenance, inadequate infrastructure, and a severe electricity crisis. The situation has been exacerbated by recent political events, including the armed rebellion that forced Jean-Bertrand Aristide to step down as president, and the subsequent intervention by Canadian military forces and UN-mandated force. The hurricane that hit Haiti in September 2004 also had a devastating impact on the energy sector, with some infrastructure being destroyed.
The energy consumption patterns in Haiti are characterized by a high reliance on imported fuels, with energy consumption per capita and per GDP showing a significant decline in recent years. The energy sector activities of other donor agencies, including the Agence Française de Développement (Am), Canadian International Development Agency (CIDA), and the Inter-American Development Bank (IDB), are also discussed in the report.
The report highlights the need for a comprehensive approach to address the energy sector challenges in Haiti, including institutional/legal reform and development, targeted support for rehabilitation of the physical infrastructure, and support for sustainable management and utilization of alternative energy sources. The report also emphasizes the importance of coordination between the international community and the Haitian government to ensure a successful energy sector reform and rehabilitation program.