Sector Reform and Utility Commercialization Task Order: Support to St. Lucia’s National Utilities Regulatory Commission (NURC) to Develop Its Grid Code

Agency for International Development (USAID) and implemented by Deloitte Consulting LLP. The SRUC Task Order aims to promote utility commercialization and equitable, effective reforms that will enhance the financial viability and long-term sustainability of developing countries' electricity systems. This effort involves supporting demonstration projects, trainings, workshops, and in-country technical assistance that strengthen developing country electricity sectors. As part of this initiative, the SRUC Task Order works with USAID Missions around the world to facilitate new electricity access to previously unconnected groups, improve the case for energy conservation, and create a better foundation to add new generation to the grid. The program focuses on enhancing the enabling environment for competition in the electric sector through the introduction of regulations that support gradual integration of renewables onto the grid. The Government of St. Lucia intends to improve the enabling environment for competition in the country's electric sector through the introduction of regulations that support gradual integration of renewables onto the grid. Part of this process includes strengthening the authority of the National Utilities Regulatory Commission (NURC) and its ability to act as an independent, technical regulator of the electricity sector. NURC was established in 2016 and has requested technical support in the tailoring and revision of a draft Grid Code for the electricity sector. The draft Grid Code aims to increase the existing capacity limits for renewable energy (RE) interconnection, which have stifled investments in distributed generation. The Grid Code will provide appropriate transition provisions to ensure safe and reliable grid operations. NURC and LUCELEC have indicated that the draft Grid Code of 2016 should be adapted to reflect the specific characteristics of St. Lucia's existing and planned power system with safe and reliable transition to higher concentrations of renewable energy generation. The SRUC Work Assignment aims to strengthen the technical capacity of the NURC in St. Lucia on refinement and implementation of a Grid Code through an active stakeholder process and dedicated training sessions. Technical assistance will be provided to NURC through the following activities: reviewing draft Grid Codes prepared by the World Bank's Energy Sector Management Assistance Program (ESMAP) and USAID Caribbean Clean Energy Program (CARCEP) to identify well-suited models for St. Lucia; engaging with Ministry of Infrastructure, Ports, Energy and Labour (MIPEL) and NURC to confirm a process for grid code rule development and adoption; and convening a Technical Working Group to develop a viable St. Lucia-tailored draft Grid Code. The Technical Working Group will include representatives from stakeholder entities in St. Lucia, including the MIPEL, Ministry for Education, Innovation, Gender Relations, and Sustainable Development (MOE), LUCELEC, and NURC. The group will develop a consensus-led draft Grid Code suitable to St. Lucia Grid operations, leveraging international leading practices, including the CARCEP-supported and ESMAP grid code models. The group will also develop consensus recommendations on the establishment of a long-term Grid Code Technical Committee with representatives from LUCELEC and other grid users to make recommendations on future Grid Code revisions. The consultant team will conduct desk research on the energy sector of St. Lucia and review draft legislation, focusing on understanding the technical requirements of the grid transition to facilitate the IRP goal of 38.9% RE generation by 2025 and future continued transition to increased use of RE resources. The team will hold a remote kick-off meeting with MIPEL and NURC leads, with responsible work teams, as well as LUCELEC in a single or series of meetings to confirm the workplan, process, and remote implementation approach for the project. The team will also review the existing 2016 draft Grid Code and other grid code models from the Caribbean region and send initial discussion topics on the grid codes to NURC in advance of the first trip or video-conference with clarifying questions/comments, etc.