The energy challenge

Tue Nov 05, 2013

With the notable exception of Trinidad and Tobago, all Caribbean countries must surmount a formidable hurdle in their quest for economic and social development — the reliable provision of affordable energy.

This is a challenge which impacts every effort we make to provide a better standard of living, on a sustainable basis, for our people.{{more}}

For many of us in St Vincent and the Grenadines, the problem appears to be solely the most obvious manifestation, that of our high domestic electricity bills. But the matter is much more fundamental, for the cost of that electricity is not just a personal, domestic or even sectoral issue, it affects our overall well-being and competitiveness in a globalised market. The cost of doing business, and hence our competitiveness on open markets depend on the cost and efficiency in the energy sector.

In today’s highly competitive world, such factors can determine whether we survive or not, even in our own local market. Given our limited market size and population, the cost of energy affects manufacturing, tourism, and on the Government side, the quantity and quality of services and goods provided to the population.

There is obviously no escape, no room for manoeuvre, and those who do not identify the problem, analyze it correctly, and, above all, initiate measures to, at the minimum, permit survivability, are bound to feel the effects. Governments and Opposition, Chambers of Commerce, workers, farmers and people’s organizations must all face up to the reality.

From a governmental angle, there has been acknowledgement that our current energy costs are too high, and unsustainable, if we are thinking about development in a holistic sense. We live in a globalised environment where our competitor is no longer just our physical neighbour, but anyone, no matter how far removed in terms of distance, who can supply goods and services at a cheaper cost. Since energy cost is a major factor in determining our competitiveness, bold initiatives are needed, now.

From that standpoint, one can only applaud the initiative to move in the direction of our most renewable source, geothermal energy. Importantly, that initiative is being pursued in the context of a public/private partnership, with significant foreign investment. This allows those accountable to our taxpayers the flexibility to tap into the resources and expertise of those more experienced in such ventures, avoiding the route taken by several of our neighbours, who have sold out what they couldn’t manage.

In the final analysis, the issue of our energy vulnerability must be addressed frontally. While the Government is charged with undertaking initiatives, the challenges and our serious limitations must be understood by all. This calls for a commitment to public education on the issue, so that each and every citizen understands his or her role in the solution and so that tangible incentives for private sector investments and energy-saving initiatives could be developed.