Port-au-prince electricity market

The Haitian electricity market comprises five isolated areas. Apart from in Port-au-Prince, these are powered by small generators. Electricity production in large cities is largely provided by independent producers, who enjoy monopolies without competition.
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The Haitian electricity market comprises five isolated areas. Apart from in Port-au-Prince, these are powered by small generators. Electricity production in large cities is largely provided by independent producers, who enjoy monopolies without competition.

In the early 1990s, Jamaica, the Dominican Republic and Haiti all set out to create national electricity networks. Jamaica and the Dominican Republic were successful, but Haiti failed because of its a political and economic crisis, weak support from financial backers, and a subsequent lack of interest from international donors who would prefer to fund small, off-grid or micro-grid electrification projects.

Today, the biggest obstacles to the development of the electricity sector in Haiti are the weakness of institutions, systems, and poverty. Many people take electricity without paying for it, severely affecting the income of the EDH and leaving it unable to fund infrastructure improvements.

It would require the construction of approximately 1,079 km of high-voltage power lines connecting the country''s main cities, the extension of 12 substations across the country, and the construction of a national energy control center.

The lines would be the most expensive component, costing more than 69 billion gourdes ($1 billion). The overall investment to build the network would be around 110 billion gourdes ($1.6 billion). With the ongoing costs for maintaining the transmission network, the total cost across the next three decades will land at 144 billion gourdes ($2 bn).

Setting up a distribution network involves fixing 1,920 km of medium voltage and low voltage lines, constructing 1,350 km of medium and low voltage lines, connecting around 750,000 new subscribers with electronic meters that can be read remotely, and updating the billing system.

Updating the billing system is the most expensive part of the investment, at around 6.9 billion gourdes ($100 million), making up about half of the overall set-up cost of 15.7 billion gourdes ($228 million). With operations and management and with transmission losses, the total cost over the next thirty years runs to 45 billion gourdes ($657 million).

The distribution network will help increase the rate of access to electricity from 25% to more than 50% of the population. It will allow for the reduction of theft and it will reduce the costs of electricity production. It will help to reduce the costs of breakdowns and improve the living conditions of the population. And it will lead to economic growth.

This project isundertaken with the financial support of the Government of Canada. The opinions and interpretations in the publications are those of the author and do not necessarily reflect those of the Government of Canada.

About Port-au-prince electricity market

About Port-au-prince electricity market

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