Energy switch

Government is proposing the establishment of a co-operative credit union to give residents an opportunity to invest in the expansion of the renewable energy sector here.

Officials in the ministry of Energy and Water Resources made the disclosure today as they addressed a special meeting of the Barbados Cooperatives Societies at the Lloyd Erskine Sandiford Centre.

Minister of Energy and Water Resources Wilfred Abrahams said the biggest single drain on the country’s foreign exchange was the importation of fossil fuel, and he insisted that Barbados simply could not afford it anymore.

Ditching his prepared speech as he addressed the gathering of credit union representatives, lawyers, regulators and other stakeholders, Abrahams said he was aware that the financial sector was awash with cash and it was about time that there be a “pooling of resources for a common good”.

“There is a lot of money in the credit union and the cooperative sector in Barbados. A lot of your charters are very limited in what you are allowed to invest in and the investments that you are allowed to do. You have a choice now. You can stick with what I call the outdated mode of doing things or you can actually start now to embrace the change now that has to happen in Barbados,” said Abrahams.

Stating that government was not playing when it came to making Barbados 100 per cent reliant on renewable forms of energy by 2030, he said if necessary Government would bring legislation to influence credit unions to invest in the sector.

“If you invest, every member that you have on your books is an investor . . . so it is an exciting time for you. I know that for many of you your framework is very specific about how you can invest. There is something called special general meetings and something called annual general meetings where you can change your charters and change your rules,” he said.

“If legislative intervention needs to happen to allow the cooperatives to get into this space then legislative intervention will happen. But it makes no sense for everybody else to come into Barbados now to benefit from what is a fantastic investment opportunity and the average Barbadian cannot benefit because we have tied the hands of the cooperatives,” he added.

The proposal put forward by the Electric Light and Power Advisory Committee (ELPAC) is for the establishment of a “special purpose” cooperative to be called the Barbados Energy Sustainable Co-op (BESCO).

Membership of the co-op would be opened to all co-operatives, energy suppliers, energy consumers and energy workers in Barbados.

It is also proposed that there be a membership fee of $100 per member and members would hold a minimum of $50 in shares in the new cooperative.

Abrahams expressed disappointment that Barbados “sat back and allowed everybody else to run with solar water heating” despite being the pioneer in that area.

And he said government could simply not allow the same to happen in the renewable energy sector.

He insisted that now was the time for locals to invest in the sector, pointing out that a lot of people were “knocking at the door trying to get into Barbados”.

He said he was recently in Miami where he met with a number of players in the solar and wind spaces and they were eager to invest in Barbados because they saw it as a favourable investment.

However, Abrahams insisted that while the island required major investment, it should include locals and government would make the investment climate attractive.

“We don’t want to be looking at big businesses only. We don’t want to be looking at the major conglomerates. We don’t want to be looking only at people outside with lots of money who can afford to spend in Barbados. It is the intention that in this new space a certain percentage of all investments should be to Barbadians,” said Abrahams.

Permanent Secretary in the Ministry of Energy and Water Resources Francine Blackman reiterated the need for the cooperative, saying it was the massive costs associated with the importation of fossil fuel that has resulted in the increased thrust towards growing the renewable energy sector.

“We believe that the cooperative movement has been a successful model for business in Barbados and is well placed to participate in the transition towards the 100 per cent renewable energy [targets]. We believe the time is opportune for the development of an energy cooperative,” said Blackman.

“It is my humble opinion that an energy cooperative can have an essential role in supporting government’s achievement in its energy and by extension the climate objective of a fossil free and socially sound transformation,” she said.

She said the development of an energy cooperative would be part of a wider comprehensive policy governing “new energy structures” in Barbados.

Member of the ELPAC Lieutenant Colonel Trevor Browne said the suggestions for a Barbados Energy Sustainable Co-op (BESCO) was just “a starting point”, adding that the name was not set in stone.

“It is not that we are seeking to get the cooperatives to bring their money and put into the new cooperatives. What we want you to bring to the new cooperative is the experience you have developed over the last 40 years and the trust that you have developed among ordinary Barbadians,” said Browne.
marlonmadden@barbadostoday.bb