Political Reasons Behind the Electricity Dilemma in Haiti
What it will take to have electricity in Haiti
Cost
Cost is one of the significant factors that contribute significantly to the development of electricity in Haiti. Since the investment in the sector of electricity has been extremely slow, combining the aspects inclusive of the non-payment culture for electric services, low-based metered customers, and fair consumer tariffs contributes significantly to electricity accessibility. The consideration of relative cost within the electricity production, distribution, and consumption should result into the efficient electricity network with higher levels of financial gains in Haiti
In Haiti, there is a need for the investment through donor finances to enable the generation, transmission and the distribution of electricity. This with estimation will cost up to U.S.$395 million with the inclusion of the hydroelectricity medium-term projects with distribution and transmission costing up to U.S.$55 million
. The investment in the network of electricity transmission will enable Haiti to have accessibility to electricity between consumption and production centers with the establishment of lines to enable the transmission of the generated electricity to potential consumers.
As part of the significant strategy in the development of electricity subsector as a major aspect in the improvement of electricity, in Haiti, the government is considering undertaking the rehabilitation and the respective renovation of the major system in the various capitals of some of the main departments. This involves an estimated cost of up to U.S.$42 million as one of the significant projects meant to boost electricity distribution and consumption in Haiti. The electricity prices in Haiti will reflect on the cost of building, finance, maintenance, managing, and operation of the power plants to be set up with the electricity grids. The setting of the complex power system is to cost the government heavily to enable the transmission and distribution of the generated electricity
Operating and administering the set up utilities that are to supply electricity to consumers will also be costly. Some of the utilities are to profit Haiti as a country with the prices including the owners and shareholders return
. Some of the factors that will affect the cost of generating, distributing, managing, and consumption of electricity in Haiti include:
Fuel, coal production, and use are relatively inexpensive compared to the natural gas, which will be costly.
Power plants, the construction, and maintenance general cost will be greater for some of the power plants compared to the rest.
Distribution and transmission lines, maintenance with the use of the transmission system in delivering electricity contributes to the relative cost of Haiti electricity.
Weather conditions in Haiti, the consistency of rains provide the water meant for the hydropower generation. Extreme heat will also enable the increment of electricity demand for cooling.
Regulations, the prices under the regulation by the set up departments will enable sufficient distribution and consumption of electricity in Haiti.
The cost of having electricity in Haiti has variances following the difference in consumption. The cost of electricity is high for the commercial and residential consumers since the cost of distribution is more. The industrial consumers also contribute to the utilization of electricity as higher voltages to make the price of electricity closer to the wholesale price
Time
Time factor in the generation, distribution, and consumption of electricity in Haiti has a higher degree of certainty. Following the aspect of Haiti as a destination for energy investment, the political and regulatory environment considers time with stability to open and progressive development through the provision of high degree certainty and confidence duration to make investment. The time dedicated to the stabilization of the electricity distribution system enables companies to consider investing heavily in the production of electricity to benefit the stable environment
Since Haiti host, a growing economy, time factor in the business environment is significant to enable the skilled and multi-lingual production workforce to show competitive service delivery in the development of the country. This will enable the provision of sophisticated market framework to enable innovation and drive technology in infrastructure development.
Stable political environment
Stability in the Haiti political system forms the strength of electricity investment destination stemming. This involves an effective response to the challenges on policy direction to enable electricity generation, distribution, and consumption success. The adaptability of the Haiti government policies within the system enables the aspect of electricity generation, distribution, and consumption possibility. The transparency and effectiveness of the framework...
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