This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 2/14/2019

Overview

Haiti has substantial renewable energy potential. Still, the country faces significant challenges to gaining access to clean and renewable energy. On average, 85 percent of electricity is produced from imported fossil fuels. The underutilized opportunities for small hydropower, smart grid, and biomass systems make Haiti an interesting renewable energy prospect. Much of the population relies on biomass such as charcoal and wood fuel as their main source of energy. Although solar and wind resources are available throughout the country, very little of this potential has been developed. The most significant contribution of renewables to Haiti’s energy source comes from hydropower, and one of the government’s priorities is to develop this sector. 
 
Local demand for U.S. electrical machinery and equipment was valued at $5 million in FY 2016. Electricite d’Haiti (EDH), an underperforming, largely government-owned company, provides about 5 to 13 hours of electricity per day throughout the country.  Port-au-Prince itself gets less than 20 hours of electricity per day. EDH only collects $50 million annually, which is not enough to finance the company’s daily operations.  The government of Haiti provides an annual grant of $200 million to keep the company afloat.
 
There is an urgent need to repair and expand existing power plants throughout the country. Haiti has an installed capacity of 250 to 400 Megawatts (MW) but only 60 percent of the installed capacity is reliable, as many generation units need rehabilitation and repair work. Total unmet demand for residential and commercial electricity in the country is estimated at approximately 500 MW per day. Only 38.5 percent of Haitians have access to electricity, with an average annual consumption of just 21 Kilowatts (KWH) per person.
 
Even for those with access to electricity, reliability is inconsistent. This lack of reliability requires many businesses and households to install diesel generators. Although residential tariffs in Haiti are relatively low compared with other fossil-fuel dependent countries in the region, commercial and industrial tariffs are amongst the highest. This lack of access to affordable and reliable power hinders investment, constrains the development of productive businesses, and degrades living standards for residential customers. It is reported that for every 100 Haitians, less than 30 have access to electricity.
 
The fuel of choice for food preparation for the bulk of households in Haiti is charcoal, including wood (main cause of deforestation). The annual consumption of wood products by Haitians is estimated at 4 million metric tons (MT), of which about one-third is transformed into charcoal to meet the cooking fuel needs of urban consumers. Apart from the negative environmental impact of cutting trees for fuel, cooking with firewood and charcoal exposes the populace, especially women and young children, to smoke and indoor air pollution. 
 
There are various sources of energy in Haiti including:
•506 million KWH produced from two private companies using diesel fuel
•284 million KWH generated from EDH power plants including 131.4 million KWH  produced from the Péligre hydro-electric plant located in the Artibonite Department
•334 million KWH produced from three heavy fuel oil power plants developed under a Cuba-Venezuela-Haiti tripartite agreement
•10,000 KWH power plant with transmission and distribution of uninterrupted (24/7) electricity that serves the Caracol industrial Park
 
Please note that more recent data on electricity generation is not available. The government hopes to modernize EDH and improve its performance. Recent efforts that sought to grant a concession to investors for the production and distribution of electricity in the South-East and North-West region through an international tender were unsuccessful. The tender did not receive bids from any firms, as they found the terms to be prohibitive.
 

 2014201520162017
Total Local Production0000
Total Exports0000
Total Imports / World176143119120
Imports from the US
 
69444552
Total Market Size176143119140
Exchange Rates44.3750.8563.0567.45

(total market size = (total local production + imports) - exports)
 

Leading Sub-Sectors

Electrical blackouts occur frequently in Haiti. Residential owners drive demand for low cost electrical generation equipment because of severe limits on local generating capacity. There is also a consistent residential demand for solar energy equipment and smart grids, as well as demand from private businesses. According to Haitian dealers’ records, 50 percent of power generators come from the U.S. Other suppliers include Japan, France, China, and South Korea. 
 
In Haiti, only 38.5 percent of the population have consistent access to electricity although the Ministry of Public Works estimates that the coverage could be higher when irregular connections are considered. In urban areas, the total electrification rate is 72 percent but only 15 percent in rural areas.
 
Some towns in Haiti, such as Fort-Liberté, the capital of Nord-Est, have an electricity distribution network, but have been effectively abandoned by the national utility EDH for about a decade. Users thus have to rely entirely on small, privately owned generators to meet their electricity demand.

Opportunities

EDH’s inability to provide reliable, centrally-supplied power continues to drive demand for power generation equipment, such as new electrical power systems, generators, inverters, solar panels, and batteries, as well as maintenance for the equipment. U.S. electrical companies, including those that supply generators, parts, and service, may find opportunities in Haiti. There is also a market for U.S. firms interested in contracting with EDH to repair existing equipment and to install additional electrical equipment in Port-au-Prince power plants. The World Bank has financed the Electricity Loss Reduction Project (PREPSEL) to increase production and strengthen the management of the electric network in Haiti. With Haiti’s tropical climate and high percentage of daily sunlight, the country could be a prime candidate for wind and solar power generation projects. There are also opportunities to generate energy from small hydropower and biomass projects. In 2017, total imports of electrical and electronic materials were valued at $120 million.
 
USAID funded the construction of a 10 megawatt (MW) power plant with transmission and distribution facilities to serve the Caracol Industrial Park tenants as well as commercial and residential customers in the surrounding villages. The 10MW power plant provides uninterrupted 24/7 electricity to 8,000-metered customers. 
 
The utility in the north has made in-roads in reducing electricity theft, and properly installing connections and improving collection of electricity bills for customers with working meters. For those customers with regularized electricity service (proper connections and meters), the collection rates for electricity bills is above 90 percent, compared to below 25 percent for those customers in other parts of the country with electricity provided by the national electric utility. 

Web Resources

Electricite d’Haiti (EDH)
Angle Rue Chareron et Boulevard Harry Truman Cite de l’Exposition
B.P. 1753
Port-au-Prince, Haïti
Tel: (509) 2813-1641 / 2813-0157/ 2813-0197/ 2223-0837 / 2212-2212
Fax: (509) 2223-8750
E-mail: info@edh.ht
(Mr. Hervé Pierre-Louis , Director General)
http://www.edh.ht/
 
E-Power
Hinsa Free Zone Park, Rue Lisius, Drouillard
Port-au-Prince, Haïti
Tel: (509) 2813-0015
Fax: (954) 323-4315
E-mail: admin@epowerhaiti.com
http://www.epowerhaiti.com
 
Sogener S.A.
30, Boulevard Toussaint Louverture,
Route de l’Aeroport
Port-au-Prince, Haïti
Tel: (509) 3707-0000 / 3708-0000
E-mail: sogeneradmin@sogener.com
http://www.sogener.com
 
HayTrac (Haitian Tractor & Equipment Co S.A.)
51, Blvd. Toussaint Louverture
Route de l’Aeroport
Port-au-Prince, Haïti
Tel: (509) 2814-8000
E-mail: haytrac@haytrac.com

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Haiti Energy Trade Development and Promotion