With the announcement of a $20 million dollar loan to assist Barbados lessen its dependence on fossil fuel through the creation of a “Smart Fund”. The fund is designed to accomplish two things, finance renewable energy technologies and promote energy efficient measures thus reducing carbon dioxide emissions as well as promoting “sustainable energy”. The expected savings that this project will generate over the next 15 years is $283 million dollars.
Welcome to test tube Barbados.
This loan is a triumph of political correctness over empirical evidence and mathematical certainty. While I fully support the objectives of efficient use of power, the chimera of alternative energy replacing high density fossil fuel generating capacity and the promise of reduced CO2 emissions has not been realized anywhere else in the world. This is not to say that there are not legitimate cost effective alternative energy solutions for special conditions of remoteness, but in a small island state with a relatively high per capita use of power the alternative energy solutions are low density requiring large areas of land for deployment. This we do not have.
Both wind and solar energy power generation are highly variable and must be supported by fossil fuel generating capacity to ensure continuity of supply. For example Denmark has deployed more wind turbine capacity per capita than any other nation but this has not reduced their reliance on fossil fuels nor has it resulted in a decrease in CO2 emissions. In addition, Denmark has one of the highest residential electricity rates in the world with a 2008 rate of 76 Barbados cents per kilowatt hour.
Wave energy is another possibility for Barbados. This is arguably a more consistent source of power generation than either solar or wind power. However we must be aware of not only the capital investment necessary but also the high operating cost in a high temperature saline environment that not only has a highly corrosive effect but also promotes the growth of moss and barnacles that must be periodically removed.
Where this project might yield the best results is in the area of energy efficiency and conservation. We have experienced sporadic bouts of activity in this area as the price of oil spikes and the cost of power skyrockets. Now is the time for us to develop a sustained culture of efficiency and conservation through prudent investment in energy efficient devices from computer to freezers.
Most recently we have seen a relatively slow, but significant, rise in the cost of oil despite the stagnation of the global economy. We must then expect a more robust burst of oil price when economic expansion continues. This means that we must focus our energies on alternative high density power generating solutions that will be cost effective and reduce CO2 emissions. In a $200 or $300 a barrel oil environment there would be a certain urgency to find a solution. That day is coming and we should not wait for it to arrive without developing an alternative power generating solution that would rescue us from the noose of oil around our necks. Experimentation with the frivolities of wind, solar and waves only postpones the decisions that we have to make.
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