AS 2016 RAPIDLY comes to a close and we look to 2017 with much hope and optimism, what can be done to really make serious positive steps towards a future with renewable energy? Is it realistic to leave it up to the market to evolve a sector that is critical to our economic survival?
Government made some concessions in 2013, but to date they have left the sector in free fall, which has been disastrous with many companies collapsing in what is supposed to be a growth sector.
So, what can be done differently for 2017 to turn this situation around?
There are probably many things that can be done. The reality is Government has financial constraints which makes it very difficult to try to help the sector in any meaningful way.
However, difficult times are an incubator for innovation. So why aren’t we looking at this as a challenge and trying different approaches to achieve the desired result?
If we look at 2016 to see who was able to survive, naturally it’s the bigger companies. What if the biggest renewable energy company was the Barbados National Oil Company (BNOC)? The BNOC is the main Government-owned energy company that over the years has made millions of dollars. But if we are serious about renewable energy, why do we still have an oil company?
At the recently held sustainable energy conference hosted by the Barbados Renewable Energy Association, there was one very powerful presentation that should have sparked the imagination of all present. The presenter introduced the idea of the BNOC becoming the BNEC where “E” stands for “Energy”.
This is a very powerful statement. If our Government is serious about making a transition to renewable energy, this should be one of the first big steps to take. It would give them the mandate to explore wind, solar, biogas, oil, natural gas, ocean thermal energy conversion or any relevant emerging technology.
At that same conference, Prime Minister Freundel Stuart committed the Government to embracing a 100 per cent renewable energy future, and he added that the proceeds from oil would be used to fund the transition to renewable energy.
If we act on these two very far-reaching statements, we can really turn this situation around and make 2017 the beginning of a strong growth period for the sector. These two statements would clear the way for several significant initiatives.
Today, the energy sector is seeing a rapid lowering of the price of solar panels. However, it is only really relevant for large scale solar projects.
What if Government uses the proposed Barbados National Energy Company to purchase large quantities of solar panels at the best possible kilowatt (KW) cost, and then sells them to local companies at prices they would never be able to get?
The price of a system could drop, making it more accessible to Barbadians and at the same time levelling the playing field and giving smaller business a chance to survive.
Is this really far-fetched? The simple answer is: “of course not”. Does any gas station today buy diesel or gasoline on the open market?
No, Government buys it in volume and resells it to all gas stations and then sets the price to the consumer. So, Government makes money, the resellers make money and the consumer gets the products at the best possible price. What would be so difficult for the “BNEC” doing the same thing for solar panels?
This would accomplish several things: it would make the KW cost of a solar powered systems lower and more consistent for the consumer and would allow smaller companies to be competitive.
The Government would be truly using the revenues from oil to grow the renewable energy sector while making additional revenue, so it would not be a subsidy.
This seems like a win-win situation, so why aren’t we doing it? I believe it would be a big step in the right direction and it would show that Government is really serious about transitioning to 100 per cent renewable energy.
Jerry Franklin is managing director of EnSmart Inc. Franklin is an engineer, energy auditor, equipment tester, and energy solutions provider. He is also vice-president of the Barbados Renewable Energy Association. Email: jerryfranklin@ensmartinc.com