Assessment of Haiti’s Electricity Sector
The state of electricity in Haiti
Improving the quality of life in some of the world’s poorest economies requires greater access to dependable power. To assist entrepreneurs, philanthropists, and non-governmental organizations (NGOs) in Haiti—one of the least developed nations in the western hemisphere—the Institute for Sustainable Energy (now the Boston University Institute for Global Sustainability) developed a comprehensive assessment of the nation’s grid-based electricity sector and opportunities for incremental investments.
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AUTHORS
Richard Stuebi and Jennifer Hatch
Key Findings
- The largely government-run Electricite d’Haiti (EDH) is in dire straits, operationally and financially. EDH is responsible for electricity delivery nationwide, but only 20-40 percent of Haitians receive service, and few have reliable power 24/7.
- Due to technical and commercial losses, EDH collects revenues on only about 20 percent of the electricity it sells, requiring growing subsidies from the Haitian government, which is fiscally-strained.
- Three independent power producers (IPPs) provide a majority of all electricity generated in Haiti. But, for a variety of reasons stemming from a lack of adequate capital and skill, EDH has difficulty delivering all the electricity that IPPs are able to produce.
- In addition, the financial challenges of EDH mean the IPPs are likely reliant upon international agency guarantees for payments to provide the cash necessary to import fuel from outside the country.
- Because of the many difficulties associated with working with EDH, much of the incremental work to improve electricity access in Haiti is focused on developing microgrids. Microgrids can help bring electricity to rural villages that have never been reached by the EDH grid.
- Successful microgrid development requires overcoming significant challenges, including obtaining strong local buy-in from the community, establishing a clear regulatory framework for construction and operation, and achieving long-term financial viability.
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