Haiti is facing two energy challenges: a broken electricity sector and dependency on charcoal. The electricity sector in Haiti is among the most challenged in the region. Only about one-quarter of the population had access to electricity prior to the 2010 earthquake, and that remains the case today. Of these consumers, half were connected to the electrical grid illegally. In place of a national grid, the national power utility, Electricité d’Haïti (EDH), operates one primary grid serving the Port-au-Prince metropolitan area and a small number of isolated power grids for the rest of the country. Existing distribution systems are weak and require rehabilitation.

Even for those with access to electricity, reliability is inconsistent. This lack of reliability requires many businesses and households to install costly, inefficient, and environmentally unfriendly 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.

The fuel of choice for food preparation for the bulk of households in Haiti is wood, including charcoal. 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.