Energy benefits exaggerated; 2030 goal overly ambitious

Senior economist Carlos Forte is describing Government’s ambitious 2030 national energy policy goal as unrealistic. He also questions what measures were being planned to ensure continued viability of the utility company to continue paying individuals for their excess electricity from renewable sources.

During an interview with Barbados TODAY, Forte said he did not believe the island would be able to achieve the 2030 goal, though agreeing that it was necessary to set demanding targets.

“The seven to eight years is unrealistic. It was not realistic from the get go. But I suppose if you set ambitious targets you will get closer to the destination even if you don’t actually reach it,” said Forte.

He said he believed officials have been exaggerating the benefits to be derived from the renewable energy sector, while he questioned the plan that was in place for a major increase in connection of renewable energy systems to the national grid and the Barbados Light & Power’s ability to maintain it through the current tariff system.

This is a position also shared by President of the Barbados Association of Professional Engineers (BAPE) Colonel Trevor Browne, who has been highlighting the need for careful and meticulous planning, innovation, design and conceptualisation to overcome “the many challenges and barriers to success that exists”.

“The alternative energy push is important [but] I think overstated in terms of the benefits it is going to derive for the country both in terms of economic growth, employment and savings to consumers. That is not to pour cold water on it because it is important, but policymakers in both this Mia Mottley administration and the Fruendel Stuart administration have overstated the benefits that are likely to be derived from that sector.

“It is important to note that even though people would suggest sunshine and wind are free, there is also maintenance cost and the capital cost is important. These things are not manufactured and produced in Barbados,” said Forte.

“The other thing is, Colonel Trevor Browne essentially raised the alarm that in the long-term, if you take the current framework to its logical conclusion, there are going to be some problems down the road,” he said.

Forte explained that with the returns predicated on selling excess alternative energy to the Barbados Light and Power Company and the company paying those persons that are generating electricity he was concerned about the long-term viability.

“What happens when the proportion of the energy consuming population increases beyond 50 per cent, from where does the Light and Power pay those people?

“Then it has implications for those people who are still on the Light and Power grid who don’t have alternative energy systems. It has implications for their rates being increased, their cost of energy, fossil fuel-generated energy increasing and because the Light and Power is guaranteed a fixed rate of return,” explained Forte.

“I don’t think the policymakers have fully thought through the existing policy and therefore, it isn’t going to generate the bonanza that some people think. Just as I have said the medical marijuana industry isn’t going to be the bonanza that a lot of people think either . .That is why I have recently urged Barbadians and public officials to be a little more sober in their pronouncements and planning, because it isn’t useful to get caught up in your own PR with respect to economic management,” he said.

Forte expressed little concern about the island’s energy bill, which increased to a whopping $836.8 million for the first nine months of this year or 26 per cent of total imports, saying it was reflective of the pandemic and the measures that had to be taken as well as the spike in oil prices throughout the year.