The Caribbean: Making Renewables Happen

Here’s an old maxim: People who say it cannot be done should not interrupt those who are doing it.  Wow, that applies so beautifully to the rapid migration to renewable energy.  We get comments all the time promoting coal and dismissing the transition to clean energy as a pipe dream, while people all over the world are making it happen.

From Greentech Media:

In the span of just a few years, the focus at the annual Caribbean Electric Utility Services Corporation conference has shifted from issues around producing electricity from thermal capacity — usually oil — to what blend of renewable options constitutes the best path forward.

It is not just a theoretical question for the future, says Risto Paldanius, director of business development for Wärtsilä’s Energy Storage and Optimization business unit, a longtime attendee of the conference.  “It has clearly shifted, and now that the [levelized cost of energy, or LCOE] for renewables is on par or lower than any thermal generation, it’s all about solar and wind,” said Paldanius. “Then the questions become how to achieve the 100 percent renewable future everyone is talking about without causing disturbances in the grid and effectively managing solar ramp rates and generation optimization.”

Yes, it comes down to cost, but there are a few additional factors that make clean energy superior, especially in tourist destinations, where vacationers are turned off by the particulates from diesel-fired power plants.

I recall my trips to Bermuda (north of the Caribbean), where I was called on to help persuade their parliament to replace their 165 MW of diesel with renewables, insofar as tourists, for some nutty reason, objected to the thin film of black dust that rained down on their rental cars and beach chairs.  Above, left to right: Me, Michael Scott (Secretary of Energy), Dennis Lister (Member of Parliament).

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10 comments on “The Caribbean: Making Renewables Happen
  1. Candace Sneberger says:

    when will be get the USVI onboard with renewable energy?

    so glad to hear about the successes; keep up the good work, Craig!

    • craigshields says:

      Clean energy is coming to all of us, in time. The issue, of course, is how much long-term environmental damage we will have done in the meantime, or, more to the point, will we still have a civilization here at that point. Answer: no one knows.

      I can’t speak to the USVI, but I can say this: In most cases, it’s political. What I omitted in the post itself is that the top people in Bermuda, while they were very receptive and kind to me, didn’t budge an inch after I left.

      Thanks for the kind words.

      • marcopolo says:

        Craig,

        Decision making in a nation of only 72,0000 isn’t a very mysterious process!

        Bermuda has an active and vibrant political process of representative democracy, even if the process is not much different from the local government of a small city or county.

        The advantage of such a small electorate is everyone knows personally their member of Parliament, which makes for greater accountability.

        In such a small and fragile economy, major infrastructure policy decisions can’t be taken lightly. Unlike in large and diverse economies, there is no room for error in Bermuda.

        Bermuda has watched as other Small Island nations have sunk into poverty, corruption, crime and ruin through poorly made decisions and are determined to avoid the pain that accompanies such adventures.

        I imagine you left the people of Bermuda even more convinced of the arrogance and effrontery of foreign “experts’, with a total lack of local circumstances, lecturing Bermudians about how they should organize their affairs!

        It may have been more diplomatic if you had done just a little research about conditions and the economy of Bermuda before sermonizing.

        A discussion with the only vehicle rental provider, Piers Clarke, the young entrepreneur who operates a small fleet of electric Renault Twizzy vehicles, may have provided you with greater insight into the islands power needs and expectations.

        Did you know that more than 92% of the residents of Bermuda are connected to the grid? This is a marked contrast to countries like Costa Rica with less then 48% connected to electricity.

        Recently, Bermuda’s electricity generating company BELCO, was sold to the Canadian Algonquin Power & Utilities Corp.

        Algonquin is keen to explore the possibility of adding off-shore wind power if economically and technically feasible.

        BELCO is also negotiating with the US government to see if President Trump’s offer of greater access to cheap US LPG and Cetane fuels was a viable method of meeting environmental targets.

        BELCO has also invested in adaptable energy storage company technology.

        BELCO recently took delivery of a 10 MW power spinning reserves and frequency response facility to maintain grid stability with a storage capacity of 5.5MWh. This can accommodate power ingress from solar roof top surplus power.

        BELCO is to be commended for restoring power within hours after the devastation of Hurricanes Humberto. BELCO has been praised for the careful prior planning, training and emergency plan preparation that has made such a difference and sharp contrast to the chaotic conditions in Puerto Rico.

        BELCO was even able to render assistance to the Bahamas in restoring power after Hurricane Dorian.

        Perhaps you should take more note of he solid investment in basic groundwork, careful preparation and thorough understanding of local conditions by Algonquin Power & Utilities (and their advisors).

    • marcopolo says:

      Candace,

      Sadly, as Craig will be the first to admit, there is no ‘success’ to celebrate.

      The United States Virgin Islands are in a very different situation than Bermuda.

      For a start these islands are in the Caribbean and an unincorporated territory of the United States.

      Although the population of these islands is larger than Bermuda ( nearly 110,000 residents), the per capita income is only a quarter ($24,000 pa.).

      The only real economy is tourism and related activities.

      The USVI have a very sad history and never really recovered from the devastating combined hurricane, earthquake and tsunami of 1867.

      Unfortunately, the period of US administration has always been associated with violence,crime and corruption.

      Curiously, the USVI once possessed ha thriving oil refinery business ! The Hovensa plant on St. Croix, was one of the world’s largest petroleum refineries, and 25% of USVI’s GDP. The refinery was the largest and highest paid source of employment for local people.

      The election of President Obama and implementation of the policies of his administrations, saw the refinery close.

      The closure also negatively affected all the ancillary economic activity associated with the refinery.

      The closure dramatically decreased USVI tax revenue, and the USVI lost all the skilled workers and a large number of educated residents.

      The current Trump administration is working hard to encourage refurbishment and restarting of the refinery in a bid to eliminate poverty and restore tax revenue.

      In 2017, Category 5 Hurricane Irma, followed by Hurricane Maria, hit the USVI with winds on St. Croix reaching 99 to 104 mph.

      While even these catastrophic conditions didn’t equal the magnitude of the great 1867 event, the devastation was massive. The USVI, although better prepared and organized than Puerto Rica, have nevertheless suffered greatly.

      Such devastation rules out Wind power as a generating option. (too much wind!).

      Small scale Solar Panels would be less affected, although useless during much of the year due to weather.

      The small size of the islands, coupled with the depleted low tax base means re-starting the oil refinery an attractive option to produce cheap, reliable local electricity, and boost employment.

      The very high wages paid to government employees(paid at the same rate as US public servants) contrasts with low wages for workers in the privates sector. The largest USVI employer is government, and the disparity creates an opportunity for corruption and nepotism.

      By 2016, the USVI was experiencing a financial crisis with public debt having reached $4 billion and a budget deficit of $210 million pa. By 2017, the U.S. Virgin Islands government bonds were rejected from bond markes.

      Tourism still accounts for over 60% of GDP, however even with over 2.5 million tourists per year, most visitors are ‘backpackers’, package, or day visitors from cruise ships. Such visitors spend less than an average of $140 per day.

      (In contrast to the $1,070 per day in Bermuda).

      Only the production of Rum seems to be prospering.

      The US Virgin Islands has the highest murder and violent crime rate per capita than anywhere in the US, only second in the Caribbean behind Haiti,(FBI statistics). In fact per capita the USVI is the forth highest crime rate in the world!

      Crimes on the increase are mostly drugs, rape and corruption.

      Crime rates quadrupled during the Obama administration according to the UN, and largely due to economic conditions.

      (In contrast, Bermuda is one of he world least corrupt, and safest communities).

      The nearby British Virgin Islands is far more prosperous and peaceful.

      Here, the British Virgin Islands Electricity Corporation (BVIEC0 is exploring a plan to reduce reliance diesel by 80% between 2021 and 2025.

      The corporation hopes to combine Solar (wind if viable) American LPG, Cetane and diesel sources in a hybrid microgrid with battery energy storage.

      This ambitious project will be completed as part of a long term strategy plan.

      The far more prosperous BVI population is only 30,000, with about half living in the capital of Road Town, on the largest island of Tortola.

      BVI economic activity consists of Financial Services 50% of GDP and tourism 40-45% of GDP.

      The government is a large employer, but public sector wages are generally on a par or slightly lower than the private sector. Corruption is low.

      The government is pursuing an active plan to diversify the local economy, by encouraging agriculture and local craft industries including yacht repair and servicing.

      Green energy in the Caribbean is very dependent of the structure of the local economy, and lack of corruption.

      The difference in approaches can be seen in the highly effective British response to Hurricane relief in contrast to the American.

      The British response is far more frugal, based on helping the locals to rebuild, whereas the American is more idealist and patronizing.

  2. ron mccurdy says:

    check out my low energy trike, Craig and solar that is 114$ efficient- more info available here.

  3. Ronald Koh says:

    It is all about self-interest. If is benefits me, it is good

  4. Jose M says:

    In Puerto Rico 12 solar farms were quickly deployed to take advantage of the ARRA funds years ago. Only two were briefly connected. They eventually perish unused. The local goverment power authority (sole monopoly power provider) stated according to their engineers that solar was not a viable option for the island…

  5. jay peltz says:

    Hi Craig, Thanks for the info. The issue is time or the lack there of. Some numbers for you.
    The US used 4.2 trillion kWh last year, of that 66% was fossil fuel powered. And electricity is 38% of the energy total. To produce roughly 3 trillion kWh with renewables would take roughly 3 trillion watts of PV.
    Last year we installed 10 GW ( billion watts), world wide was 100GW. We need to install roughly 300 GW per year for the next 10 years to offset what we are doing right now, with no increases in electrical load and that’s just the electricity, then you’ve got the other 62% to produce.
    As the IPCC report gave us 10 more years to reduce carbon use by 60%+, we are no where near getting that done.
    It is possible, but we have to get out there the scope of what needs to be done, and the reason I post it here. No where is anyone stating what are the goals we have to meet are and because of that people are being misled thinking that we are getting there.
    Thanks

    jay

  6. marcopolo says:

    Craig,

    I think I can see why your “Mission” to Bermuda, was unsuccessful!

    When visiting any foreign clime, a modicum of research saves you from making a fool of yourself and cause necessary offence!

    “the thin film of black dust that rained down on their rental cars and beach chairs”.

    This ludicrous claim amazed the current minister in charge of energy, the Minister for Home Affairs the Hon. Walter H Roban JP MP, who quite rightly pointed out Bermuda has no “rental cars’!(Unless you count scooters and electric Twizzy’s).

    So why advance such an offensive and easily disproved lie?

    The concept of a “thin film of black dust raining down on rental cars and beach chairs”, is just a silly fantasy! How on earth do you imagine such a claim adds credibility to your expertise?

    Nor is Bermuda even in the Caribbean!

    Small Island nations are plagued by “fly-in, fly-out”, would be enthusiastic advocates, lacking any appreciation of local conditions or logistics.

    Bermuda, although a lot wealthier and better managed, has many of the same sort of problems encountered by all small island nations when it comes to energy.

    Although blessed with a sunny climate and lacking heavy industry, Bermuda still must contend with providing 72,000 local residents and more than 700,000 tourists and visitors each year with enough energy to provide ‘first world’ reliable “power on demand”.

    Bermuda’s unique economy requires the sort of power requirements usually encountered by major developed economies.

    85% of Bermuda’s revenue is derived from highly developed Financial services, Insurance and Re-Insurance and boutique banking industries.

    These industries with rapidly expanding data logistical support needs, rely on secure, reliable energy generation on a substantial scale.

    Bermuda is trying to discourage low cost or package tourism to prevent over-crowding and problem ranging from law and order to despoliation of natural resources. The emphasis has been on providing high quality luxury tourist facilities accompanied by first world medical care.

    I’m amazed you haven’t even researched how Bermuda’s power is generated!

    Bermuda’s aging power generation plants do not use conventional diesel.

    Electricity is generated by 17 ‘fuel oil’ engines. These were originally designed to burn cheap Marine grade No 6 fuel oil. or as it’s more commonly termed “bunker oil”.

    At the time of construction in the late 1940’s, it was hoped the Island would benefit from being able to use the same fuel as shipping, however in recent years the plant was converted to burn a much higher grade of naval fuel oil to help eliminate pollution, increase power output and save maintenance.

    The plant’s filtration systems were always adequate to cope with any obvious discharge. (No film of “black dust raining down on non existent rental cars! Although why rental customers would care is a mystery “).

    Bermuda Electric Light Company (BELCO), Bermuda’s sole electricity supplier has just signed a $100m deal to build a 56 MW dual fuel power plant in Bermuda.

    The deal will allow BELCO to replace 9 of the 17 aging engines with MAN 51/60 DF engines, thereby lowering emissions, boosting output and lowering operating costs dramatically.

    By 2022, BELCO will replace the remaining 8 engines, increasing the plant’s capacity to cope with future demand.

    Bermuda’s energy needs are set to increase as more data centres are built with ever increasing demands on the islands grid.

    Small scale solar power will certainly play an ancillary role in lowering household and business costs, but the island still must import fossil fuel for all heavy transport, aircraft, shipping and marine craft.

    Naturally,the import and storage of fossil fuel requires economies of scale the same as any other commodity and the Bermuda’s planning experts and politicians must formulate policies based on logic and commonsense, rather than ideological nonsense.

    Announcing the $300 million investment in the new BELCO facility ensured Google (among others) continued presence in Bermuda.

    The concentration of energy intensive industries in Bermuda is the primary reason why this small island archipelago has a nearly $6 billion per year economy and a per capita income of $93,000.

    I have been visiting Bermuda for more than 50 years. In all those years, I’ve never observed “a thin film of black soot”!

    This was true even during my participation in the long campaign to abolish the use of “bunker oil” on a global scale.

    (Cancer, lung disease and similar ailments in Bermuda are roughly equivalent or better than those in Europe and the USA, but considerably lower than rates in Cuba, Jamaica, Haiti, St Vincent, Dominican Republic etc).