THE PENDING SALE of Barbados National Terminal Company Limited (BNTCL) has stimulated much discussion in the public domain. There are many different views but the most common is the concern of a monopoly in fossil fuels being created and there is also a view that this will cause an increase in the cost of fossil fuel products like petrol and diesel.
While all of these views have some basis in reality, I have a different view. I share the view of the Barbados Renewable Energy Association (BREA), which issued a press release on the sale that I believe was widely misunderstood. BREA came out in support of the sale and this was seen in a negative light mainly because most of the public views are against the sale. However, BREA’s comments have to be taking in context for it to be truly understood. If, for a moment, you contemplate that BREA is a strong long-time advocate for 100 per cent renewable energy, then supporting the sale of an oil company by the Government would start to make sense.
It has been stated in the public domain that the BNTCL is one of the Government’s revenue earners as well as the Barbados National Oil Company Limited (BNOC). Therefore, to expect the Government to be aggressive with its mandate to move this country towards a higher penetration of renewable energy would be at odds with two of its biggest money earners. Therefore, if the Government is no longer the owner on this company it has to start the process of diversifying its revenue base.
Secondly, if this company is now in the control of a private entity, Government loses its ability to insulate the consuming public from price shocks. I see this as a good thing, because the greatest threat to the renewable energy sector over the last two years has been low oil prices. Lastly, there is a view that a private company will only be focused on profits and will increase the cost of fossil fuels products by increasing its storage fees. Once again, I see this as a good thing for renewable energy, because it would make Barbadians look at an alternative again.
Therefore, if you are only looking at this sale as a fossil fuel consumer and are only thinking about the possible impact it could have on the cost of these products that you use, I can see why you would be uncomfortable about the sale of BNTCL. However, if you look at a bigger picture and think about the Government’s environmental commitments to COP21 and its own ambitions of moving Barbados towards renewable energy, then you would join me and BREA to see this as a good thing and support it, with the caveat that the Government see it this way as well.
This would mean that the Government uses this opportunity to give serious consideration to transitioning BNOC to Barbados National Energy Company where there is not a focus on oil but rather a focus on energy. It would also be a bit ambitious but nevertheless it would good, to see the Government take some of the proceeds from the sale to retool and reskill the staff of BNOC to become the country’s leading authority on renewable energy, energy efficiency and energy conservation and become the reseller of solar panels instead of fossil fuel products.
It is on this basis that I believe BREA has publicly expressed it support for this sale and it is also on this basis that I add my voice to support this sale. However, it is with the understanding that this is a first step for our Government to divest itself of oil and increase and quicken its support for renewable energy. So, in an imperfect world I choose to be optimistic about the sale and that this is a sign of the Government moving in the right direction.
This sale is likely just about raising revenue for the government. However, once it’s done it automatically changes the playing field for the energy sector for the foreseeable future and creates the right environment for it to evolve in the right direction. It’s up to us the citizens of Barbados to drive the future we want and not wait for the Government to do it for us.
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