Regulatory Reforms and Compliance

The progress made so far in terms of the regulatory reforms, are as follows:

• In 1989, the Minerals (Vesting) Act was amended by Act 7 of 1989, in force from 28 October 1989. This Act vests in the Crown, all minerals in the island and was amended as a stop gap until the passage of geothermal resource development legislation.
• In 2001, the Government introduced the Physical Planning and Development Act. The Act establishes the need for Environmental Impact Assessments (EIAs) and the development of regulations to govern the said Act. To date, the Environmental Impact Assessment regulations are still in draft form.
• Government also enacted the Electricity Supply (Amendment) Act – also known as Act No. 2 of 2016 – which amended the Electricity Supply Act to provide for the regulation of Electricity Supply Service by a new National Utilities Regulatory Commission (NURC).
• In 2016, Government enacted legislation (Act No. 3 of 2016) which established the NURC, an independent multi-sectoral regulator for water and electricity. The NURC will have the authority for the provision of licenses and permits, tariff setting and will also have responsibility to monitor quality and service standards, as well as consumer affairs.

However, although there has been a significant level of interest from developers to finance Renewable Energy generation, private investments have been very slow due to a lack of regulatory clarity. In light of the above, the RESDP is to prepare all the relevant legal and regulatory documents for introducing and integrating renewable energy in the power system in Saint Lucia. During the life of the project the following will be undertaken:

An Environmental and Social Impact Assessment (ESIA) is a critical step in the RESDP implementation. It identifies environmental and social impacts that would result from the project. An ESIA was conducted in 2018 and the findings revealed that the impacts would be temporary and focused within the drilling area during well drilling and testing. Further, the project would not result in significant residual negative impacts.

There are also potential beneficial social impacts through creation of temporary local jobs during construction and drilling operations. The project would provide opportunities for training and increased knowledge of geothermal exploration, drilling and testing. The project would also create good working conditions with fair employment practices in accordance with all laws and policies governing labor rights and working conditions. If the project is successful, it could lead to development of a geothermal power plant to reduce Saint Lucia’s reliance on fossil fuels and reduce emissions of pollutants.

To read the detailed ESIA click here.

The natural signature of Saint Lucia is the Pitons. It is a unique geological feature and a key element within the UNESCO World Heritage Site. This spectacular geological feature and its surrounding environment is a highly sensitive biological resource area, rich in spectacular scenery, natural beauty and biodiversity. The Limits of Acceptable Change (The LAC) study of 2013, for the PMA World Heritage Site, concluded that geothermal exploration in the Green Buffer Zone would not necessarily have a negative impact on the PMA, as it would be hidden behind taller mountains. The study emphasized that any development must ensure that emissions, noise levels and structures would not have a negative impact on the landscape, particularly on Outstanding Views in the PMA and on tourism-related activities.

In 2018, the World Heritage Committee urged Saint Lucia to formally establish a buffer zone for the UNESCO World Heritage Site, prior to commencing the slim well drilling campaign. Details of the size and characteristics of the buffer zone as well as a map indicating the precise boundaries of the buffer zone are required under the World Heritage Convention. Steep and visible slopes near the Piton Management Area must be protected from development because of environmental impacts. The survey of the boundaries is therefore a step in the right direction.

Under the Department of Infrastructure, Ports and Transport, the Renewable Energy Sector Development Project (RESDP), in conjunction with the Office of the Pitons Management Area, has engaged the services of Land Surveyors to survey the limits of the Pitons Management Area. (Read News Story Link) The survey, which commenced on November 30, 2023, will continue for a nine-month period and will define the boundaries and coordinates of the Piton Management Area and the Green Buffer Zone.

The survey includes both the local coordinate system and the Global Positioning System (GPS) coordinates of the boundary lines and will be registered with the Survey and Mapping Section of the Department of Physical Development and Urban Renewal on completion.

Benefits Of The PMA Demarcation