‘Bizzy’ defends renewable energy policy and investment

A renewable energy investor has taken a swipe at an overseas-based Barbadian consultant for criticising the country’s renewable energy policy.
Founder and non-executive chairman of Williams Industries Ralph ‘Bizzy’ Williams on Monday harshly chastised Mark Clarke who recently described the local discussion on renewable energy as “drivel” and contended that the Ministry of Energy and the Fair Trading Commission (FTC) were “swimming with their pants down”.
In a guest column published in Barbados TODAY on April 12, Clarke, who provides design engineering and project management consulting for major US gas companies, said he wanted to “help lead this discussion as the Government seeks to rewrite its National Energy Plan”, adding that he hoped “that this time around, the Ministry will select Barbadians both at home and in the diaspora with the relevant expertise rather than pale-skinned people from the developed north”.
“The country needs an honest discussion about the future of renewable energy in Barbados. Much of what we have been hearing is drivel and lacking in economic, regulatory or engineering reality,” added Clarke, who managed the National Petroleum Corporation (NPC) during the Owen Arthur administration.
However, Williams said Clarke was not in a position to advise either the stakeholders in the local renewable energy (RE) sector or the Government of Barbados.
“Had the Government and the FTC taken your advice years ago, only big foreign and local corporations would have invested in RE projects, while at the same time, the less fortunate citizens of our island would not have been able to finance any investment in the RE industry. That, Sir, is not the model that I, for one, nor our government wants to see in Barbados,” the RE investor contended.
Clarke, who specialises in strategic energy planning, had said he was shocked to learn last year that the FTC had set feed-in rates for the Barbados Light and Power Company (BL&P) for a 20-year period.
“In a dynamic industry such as energy, we do not know which innovation will disrupt the market,” he said. “These feed-in tariffs are set dangerously close to the costs of fuel oil, which is the lowest cost fuel used by the BL&P. What does this really mean? If your rates are set at about 40 cents per kWh for 20 years, how and when will Barbadians see a decrease in electricity bills over the next 20 years? Government has been less than honest about this measure.”
However, Williams challenged Clarke’s position.
“Please explain, for example, how would you convince a bank to finance the buildout of a RE project with no assurance of the rate that the utility would pay you for the electricity you produce over the life of the loan you are borrowing to invest in RE?” the prominent businessman asked.
“The current investors in the RE business in Barbados were able to finance the projects precisely because the FTC fixed the amount that would be paid for electricity for the life of each particular project that is connected by a given date, and left the option open to change the rates for new projects that improved technology would enable to produce electricity cheaper.”
The investor insisted there was a vast difference between investors in RE projects and people who were being paid guaranteed amounts of taxpayers’ money “to sit in their offices and say what they believe should be done with absolutely no consequences for them when their advice leads to disastrous results”.
“Investors actually put their assets at risk to borrow money to invest and create employment opportunities for people while reducing their island’s outflow of foreign exchange to import oil,” he added.
Williams suggested that Clarke “step down from the clouds with money and assets” and invest in the creation of employment opportunities and help Barbados to reduce its outflow of foreign exchange.
“We need workers here who are willing to risk everything to put Barbados first and get things done, not just talk down to us on the ground. Come and put your money where your mouth is and contribute to the creation of employment opportunities and the production and storage of RE electricity to reduce atmospheric pollution and our oil import bill,” he said.
(EJ)