Disclaimer: The views and opinions expressed by this author are their own and do not represent the official position of the Barbados Today.
by Michael Ray
It is all well and good to read that the Government is on track to become carbon neutral and 100 per cent efficient in renewable energy (RE) by the year 2030.
It is also gratifying to hear from the chief financial officer in the ministry of energy that the government will save more than one million US dollars annually on electricity bills.
But what about other social partners – workers and business people?
Government has access to multiple loans at concessionary rates and can benefit by investing in a range of renewable energy technologies. What is being done for others who make up the other segments of our society?
The announcement that 30 per cent of the renewable energy business will be reserved for locals has been ill-conceived and will not meet the expectations of prospective Barbadian investors, especially those from the non-traditional investment class.
The future growth and development of the RE industry is a “once-in-a-lifetime” opportunity for ambitious and enterprising entrepreneurs. Therefore, a larger slice of the investment pie must be made available to them.
This is about spreading wealth among the local population in an area of highly sustainable economic activity – if we do not want to leave anybody behind, and if we are in it together.
For far too long, the investment pie has been disproportionately allocated. At the same time, Barbadians are corralled away from investment opportunities by a mythical notion of being “risk-averse”, when in fact, too many of us are unjustifiably pre-determined to be risks.
The powers-that-be have a responsibility to reverse the 30 per cent portion of RE business and reserve 70 percent for prospective Barbadian investors who deserve to benefit just as the government will benefit.
Dr Olav Hohmeyer, a consultant and advisor to a former government of Barbados in the area of renewable energy technology, made the following comments as part of an economic analysis on the subject:
“Although some equipment for the generation of green energy will need to be imported, a first analysis shows that the transition to a domestic 100 per cent renewable energy supply can reduce net energy related imports by about 80 per cent – based on fuel costs of 2013 (see Hohmeyer 2015, p.27).
“By the virtue of import reductions, GDP (gross domestic product) will rise accordingly leaving hundreds of millions of dollars in the hands of Barbadians, which are presently spent on energy imports.
This will result in a substantial creation of additional employment.
By the same mechanism, the tax income of Barbados’ government will rise due to the fact that much more taxable income stays in Barbados’ economy.
“Nevertheless, it has to be pointed out that most of the possible positive economic effects for Barbados’ economy will only occur to the extent that the new energy system will be owned and operated by Barbadian nationals or by international investors leaving the money earned with renewable energy production in Barbados’ economy”.
There is hardly any commentary that can advance better reasons why Barbadians should be significant owners and managers of renewable energy systems on island Barbados.
