by Marlon Madden
Former Minister of Energy Clyde Griffith wants to see Barbados and other Caribbean countries strike a deal with the United States on a renewable energy scheme in order to ensure energy security for the region.
Stating that this could be led by Barbados, Griffith told Todays’s BUSINESS he believed the time had come for countries involved in the Petrocaribe deal with Venezuela to discard that arrangement, and for the entire Caribbean Community (CARICOM) to enter a renewable energy agreement with the US instead.
“I think the US would be happy if we can shake off Petrocaribe and use this as a bargaining chip,” he said.
Griffith argued that while the Petrocaribe arrangement had helped countries over the years when they had scarce foreign exchange, he believed it had done its time and that the region should push for the deal with the US to focus especially on building out a wind energy industry.
“We need the technology in the Caribbean and we have the appropriate wind speed particularly off the Atlantic coast.
I think this is something we should see as a priority and Barbados should lead it because we are better organised more than most of the Caribbean countries that need to get rid of this fossil import and look at how we can reduce the impact of fossil fuel,” said Griffith.
The Petrocaribe agreement was formed in 2005 between the oil-rich Venezuela and 12 CARICOM member states. Barbados, Trinidad and Tobago and Montserrat did not sign up.
It allows for member states to purchase oil from Caracas at market value and pay as little as 5 per cent or up to 50 per cent upfront while delaying the remaining payment for several years. They also benefit from an extremely low interest rate.
However, with continued volatile oil prices and against the backdrop of a recent application by Barbados’ sole electricity utility company seeking an 11.9 per cent rate increase, Griffith said he believed Barbados and other countries in the region should focus more on speeding up the expansion of the renewable energy sector.
“Barbados and the Caribbean need to get into bed with the US and the Joe Biden administration on an energy collaboration programme,” he said.
“We need to get Barbadians who are now eligible to vote to really be involved in the lobbying effort. Next year is a good year to push that because next year is an election year.
This is a time when we should get our leaders from the Caribbean to push to get a relationship with the United States as it relates to energy,” said Griffith, adding that the region should also seek to work closely with the US to the worrisome climate crisis.
Recalling that Biden, while he was Vice President under the Barack Obama administration between 2009 and 2017, introduced the Caribbean Energy Security Initiative after meeting with Caribbean leaders on the matter, said now was the right time for the region to push for deeper ties with the US to realise energy security.
“We have not had a real relationship with the US administration since the Caribbean basin initiative in 1981 and we did not even push that because we did not understand the importance of lobbying,” said Griffith.
“We don’t have the technological capability to set up offshore wind farms. We have limited land space and I think that we need to see how we can get the US administration to build a relationship with the Caribbean and bring their technology and investment into the Caribbean basin to see how we can take advantage of wind energy,” he explained.
Griffith said even as Barbados moves ahead with oil exploration in coming months, the emphasis should still be on building out the renewable energy sector.
He proposed that should Barbados’ exploration unearth fossil fuel, any revenue from that find should be used to push efforts in the renewable energy space.
Griffith, who was instrumental in the creation of the Barbados National Oil Company Limited (BNOCL) in the early 1980s while he served as Energy Minister, said that state-owned entity should now be seeking to acquire renewable energy products on a large scale and then supply the local market with those material to help drive down costs.
“It (BNOCL) can use its vast buying power to bring cheaper resource material to Barbados for the private installers to take advantage of.
The price of copper for example, is prohibitive when it comes to solar panel installation and solar thermal manufacturing. Is there not a way we can find something where BNOCL can be involved in procurement on a larger scale?” he said.
The renewable energy advocate also proposed that Government make it more attractive for individuals to invest in the sector and to get more young people engaged by looking “very seriously” at tax incentives, teaching about renewable energy in schools and creating more opportunities.
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