Power policy

Import duties on wind and solar generation products as well as solar appliances were abolished in 2017 as the government adopted the Scaling-up Renewable Energy Plan (SREP) with advice from the Climate Investment Fund. However, this policy was not updated in 2020 or 2021. In addition, the country established a voluntary clean energy target on its Intended Nationally Determined Contribution (INDC). It aims to increase to 47% the share of renewable energy capacity by 2030, with 24.5% to come from hydro, 9.4% wind, 7.5% solar and 5.6% biomass.

Grants and projects have focused on restructuring Haiti’s national power company Electricité d’Haiti (EDH). On a smaller scale, microgrid projects are appearing across the country. On September 13, 2019, the United Nations Development Programme (UNDP) launched a tender for the construction of three microgrids in Capotille, Vallières and Mont-Organisé cities, as part of its Rural Electrification and Women Empowerment project.

In January 2018, Haiti announced it would open its generation, transmission and distribution sectors to private participation in eight regions of the country by awarding concessions. In September 2019, the government opened the pre-qualification process for companies interested in providing power services in Miragoâne, Les Cayes and Caracol.

Power prices and costs

Electricity prices in Haiti have remained flat since 2009. Tariffs rose 8% in 2021. The residential tariff was set at an average of $78.54/MWh. Commercial and industrial electricity prices in 2021 were $136.41/MWh and $138.99/MWh, respectively. Haiti heavily subsidies electricity and fuel prices.

Power market

Haiti has 372 megawatts of installed capacity, with the bulk (88%) represented by fossil fuels. The remaining 12% comes from the Péligre hydro plant, which is undergoing restoration, other small hydro plants and a small PV project. EDH owns 44% of capacity in Haiti and operates Haiti’s 1,500 kilometers of distribution lines. EDH is able to power Haiti’s capital Port-au-Prince and a few cities nearby only intermittently due to insufficient infrastructure. The use of diesel generators, kerosene lamps and other forms of off-grid technologies is commonplace. EDH has received grants from the World Bank, the Inter-American Development Bank (IDB) and other international organizations to help the country improve its infrastructure.

EDH is the only electricity retailer. As EDH only covers a minor section of the territory, a large portion of the population does not even have the option of a retail supplier. Off-grid and micro-grid solutions are emerging in areas where EDH is not present. In that case, consumers can opt into the electricity services provided by private entities. Haiti does not have standardized power purchase agreements; the contracts are negotiated between each independent power producer (IPP) and EDH. There are three private companies in the generation sector, Soneger, E-Power and Haytrac. Most electricity sold by EDH is supplied by those IPPs.

Doing business and barriers

Haiti lacks specific legislation mandating microgrids, and this has both slowed project development and kept risks high. Regardless, microgrids are appearing on the island. One, financed by the IDB, the United Nations Environment Programme and the United States Agency for International Development (USAID), links the towns of Côteaux, Port-à-Piment and Roche-à-Bateaux and is managed by a newly created electrical cooperative. Another in Feyo Bien, is supported by IDB. Both microgrids are powered by hybrid PV-diesel generators. Sigora Solar has also developed a diesel generator-powered microgrid in Mole Saint Nicolas, to which it will add solar generation.

In 2019, the government of Haiti and the World Bank established a new financing instrument to incentivize private companies to develop clean off-grid energy projects in the country. With $17 million in funding, it aims to provide electricity to 200,000 households in the next 10 years.

Only a quarter of the population has access to on-grid electricity. The national grid shortfalls have created opportunities for distributed clean energy generation solutions and the implementation of microgrids. With the help of a grant from USAID, EarthSpark was responsible for developing Haiti’s first microgrid, which started operation in the south of the country in 2015, providing solar power to around 450 households in the city of Les Anglais. The system relies on batteries to ensure reliability and smart meters for system stability and to facilitate pre-pay capability for its customers.

It is legally possible to set up mini-grid projects in areas where EDH is not present. There is no existing regulation on the topic. This means there are no barriers, but also no framework or assistance. Developers create, draft and sign agreements directly with local municipalities. In addition, solar projects based on Haiti Free Trade Zones are allowed to sell electricity directly to clients within the free zone.

Haiti has a 46% national electrification rate, the lowest in Latin America and Caribbean. In 2012, Haiti set a target to reach 50% of electrification by 2020, which was not reached. Prior to the assassination of President Jovenel Moïse, the country targeted universal electrification by 2022, with no further targets set. Its power sector is controlled by the vertically integrated utility EDH, which has been involved in some cases of corruption and faces serious financial problems. EDH’s collection of tariffs is insufficient, leading to the government to disburse around $200 million annually to keep the company working. Haiti needs an urgent fleet-modernization program. Only 60% of its total installed capacity is reliable and there is a huge loss of power during transmission and distribution.

Haiti has faced many natural disasters, including earthquakes and hurricanes, which have disabled most of its already weak electricity system. For instance, Haiti’s first microgrid was partially destroyed by Hurricane Matthew in late 2016. A total of 20% of the project’s PV panels and all its cabling and poles were destroyed. Haiti’s political crisis was only aggravated by Moïse’s assassination in 2021.

EV market

The government has yet to implement any substantive policy support in this sector and the electric vehicle (EV) market remains at an early stage. There are no EVs in Haiti to date.

EV policy

Haiti does not offer any sort of incentives nor support for EVs. Fossil fuels are highly subsidized.

Buildings market

The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.

Buildings policy

There are no energy efficiency policies nor measures in Haiti.