Road to zero fossil fuels still bumpy

Most political leaders around the world have coalesced around renewable energy (RE) targets which seem to be fraught with problems that are negatively impacting people’s attitudes toward RE.

We in Barbados have embraced the target of becoming a carbon-neutral economy by 2030, though it has been acknowledged in many circles that the target is overly ambitious and unlikely to be fulfilled despite our best efforts. The policy aims to completely eliminate local consumption of fossil fuels in the economy over the next seven years, though Barbadians are yet to be enlightened about the plan for persons driving diesel vehicles and cars powered by gasoline.

In fact, one is yet to hear from industry leaders like Mr Aldo Ho-Kong King, president of the Petrol Dealers Association of Barbados, about the business plan for operators of petrol stations.

This country’s main power supply company the Barbados Light & Power (BL&P) has invested millions of dollars in its own RE infrastructure and is seeking to have consumers underwrite some of that capital investment.

It too has indicated some concerns about the country’s renewable energy plan, what role the Canadian-owned Emera subsidiary will play in the entire process, and what protections will be in place for its ability to operate in the carbon-neutral space.

At the same time, the 2019-2030 energy policy which is a follow-on from the one developed and announced in 2017, still pursues the “export of all hydrocarbons produced both on land and offshore.”

Though many Barbadians would want to be a part of the renewable energy revolution, the high costs associated with acquiring solar systems to produce electricity for homes, as well as the high price of electric vehicles despite the tax concessions offered by the administration, are disincentives.

Admittedly, there is a need and an obligation on people in industrialised nations as well as developing states to reduce our carbon footprint and lower carbon emissions which are contributing to global warming and its associated climate crises.

The recently staged Green And Renewable Energy Expo at the Lloyd Erskine Sandiford Centre hosted by the Barbados Chamber of Commerce and Industry is a clear indication that the local private sector wants to be fully engaged on the issues surrounding renewable energy policies and how they are likely to impact them.

Minister of Energy and Business Senator Lisa Cummins has indicated that the administration intends to be very proactive in cooperating with the private sector, indicating there was a need to close the gap between policy and regulation.

We must concede that many of the issues now impacting the RE sector and causing serious logjams for homeowners wanting to enjoy the best returns from their investments, may seem complicated.

Cummins stated: “While policy and regulation don’t align, while policy and the investment infrastructure don’t align, and while infrastructure investment and regulation don’t align, investor funds are tied up. Commercial banks have had to suspend new lending to energy projects because there is a lack of clarity on the way forward. Last year, the Cabinet made a decision that we would extend all existing licences through December 2025.”

Advancing the cause for a new Electricity Supply Act, she stressed the need to get projects that have already gone to the bank “up and running”, adding: “We need to get you on the grid . . . . Government has been leading on the question of democratisation of energy supply.”

There are still many grey areas in the government’s overall energy policy, particularly the plans surrounding the overhaul of the sugar industry which is now in the hands of a credit union-based Barbados Sustainable Energy Cooperative Society Ltd (CoopEnergy Barbados).

The transfer of more than 4 500 acres of former Barbados Agricultural Management Company (BAMC) sugar lands to the Agricultural Business Company Ltd (ABC Ltd), and the Barbados Energy and Sugar Company Ltd (BESCO Ltd) still requires more detailed information on how it will all fit into the overall energy and agricultural policies for Barbados.