In the face of rising oil prices which world citizens can expect to impact negatively on global economies, BU was driven by desperation to ask the Barbados Light & Power (BL&P) the hard questions.
Here are the questions which Barbados Underground posed to Chief Marketing Manager Stephen Worme of Barbados Light & Power Co Ltd:
BU have read your comments in recent days against the backdrop of rising oil prices. Although your explanations make perfect sense to us, the earned media which you are getting out of it is starting to conflict with the genuine fear of Barbadians given the uncertainty which faces us and the world.
Anyway, you are the expert in managing the media and this kind of situation!
We want to ask you what initiatives can you table at this time. Is it a case that you will just go along with the market? What can you do to lobby, push the government on those initiatives to move forward on the alternative sources of energy?
What can you tell us!
How can we sit an play dead in the face of rising oil prices?
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We are pleased to report that Mr. Worme was gracious enough to respond as he has in the past:
The recent information we shared in the press regarding the increasing price of oil and other commodities was intended to inform the public of the further impact these increases would on them if it was necessary for Government to revise the current level of subsidies being provided on electricity, gasoline, diesel and some food items. It was also intended to encourage them to make choices – by conserving energy, etc. – that would help to mitigate the price shock that may result if this were to occur.
In our communication, we aim is to keep customers informed on issues that impact on them and this hopefully will help them make more informed choices. Our hope is that this recent communication would have been received in this way by the broader cross section of customers.
We take seriously our responsibility to meet the needs of our customers by providing a safe and reliable electricity supply at reasonable prices. In the past, because of the higher prices and the stage of development of many of the renewable technologies, our fuel choice has been limited to oil and our generation expansion has been based on the least cost options for oil fueled generators.
Our investments are long term (25 years and more) and have to be based on sound economics and the technologies we use must be proven. As the price of oil continues to rise, research and development of renewable technologies has escalated and many of them are becoming both commercially proven and economically viable. Wind is one of these and one which would suit our situation in Barbados. We have done a lot of work over the years to establish a wind farm in St Lucy but this is still pending approval from the Chief Town Planner.
We are also aware of the developments in photovoltaics and have installed grid-tied test systems at two locations to gain experience in their operation. We are presently developing an interconnection agreement for these systems and looking into a rate for purchase of energy supplied on to our grid by these systems. The Government has articulated its interest in expanding the use of these systems and we are looking forward to working with them to make this a reality.
The source we think has the greatest potential for reducing energy costs to Barbadians in the short to medium term is natural gas from Trinidad, which is not only significantly cheaper than oil but is also more environmentally friendly . For some time we have been working with the Eastern Caribbean Gas Pipeline Company of Trinidad & Tobago and local Government agencies to realise this opportunity. It is estimated that the equivalent price will be in the region of 50% to 60% of the price of what we presently pay for heavy fuel oil. We will continue to work with Government to bring this project to fruition at the earliest opportunity.
We will also continue to work with Government on projects such as the cane industry restructuring project, landfill gas generation and waste-to-energy.
We very much appreciate the feedback and discussion which you and others facilitate to keep people informed of the many issues that impact on us here in Barbados. We will continue to benefit from this as we all work to find the right solutions for our country.
On behalf of Barbados Underground and the Bajan blogosphere we want to thank the Barbados Light & Power for demonstrating the vision to work with all media sources to educate Barbadians and others on the serious matter of developing sustainable alternative energy sources.
Barbados Underground 
Barbados has the ability to lead the world in this area, and would gain infinite favourable attention/publicity. If clean energy and favourable terms were mandated, then legislated, we could become a world model for study.
“We are presently developing an interconnection agreement for these systems and looking into a rate for purchase of energy supplied..” quote.
Will this agreement allow the offset of energy harnessed privately using a meter in (from blp) and meter out (from private energy generation)? In other words can we subtract and barter kilowatts for kilowatts, allowing the private suppliers’ electricity bill to be factored into equipment and maintenance costs?
Payment rate established by government for blp to pay private persons will be pivotal in whether only the blp will be able to afford to generate electricity. This has to be higher and is a sticking point because blp wants to only pay for electricity using the fuel surcharge amount, and wishes to leave out the rest.
This could kill the whole enterprise. Calculations must be made in consultation with experts who know, to nurture small enterproses who harness green energy. What big percentage tax allowance or incentive would need to be used to stimulate this in businesses, or in homes?
Couple this with garbage recycling and incineration into energy in the north and we might be on our way to sustainability.
Do you have the ability to lead rather than follow?
hi there all,
a lot of BS… the BL& profit for 2006 was around $18M … that is just about what the Gov of Barbados pays to BL&P or was it BLP….
I’m watching BL&P and the DLP & Thompy..
Hmmmm
Independent Dem
At one time, about 30 years ago, there was a proposal to build a prototype wave power generator on the East Coast.
This technology has recently advanced:
http://www.wavegen.co.uk/index.html
I am not totally in favour as it may spoil the scenery.
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Our sense from reading the response from the Chief Marketing Officer of BL&P suggests that they are willing to work with government. Government obviously will be an important partner because there is legislation and planning issues. More importantly the government must be at the lead of a national energy plan. Why are we allowing such an important project to wallow in government bureaucracy?
It is early to pressure the new DLP government but given the volatility in the world financial market etc this government needs to hot the ground running.!
Slightly off message I know but how can the island’s only provider of electricity not facilitate on-line bill payments for everyone?
Imagine all the trees lost to make their invoices, envelopes, receipts and stamps for us to pay the old-fashioned pre-electricity way?
The only way that small scale domestic generation of electricity (by domestic I mean at a person’s home or business) will work is by employing net metering.
With net metering, the electricity the PV system or wind turbine generates directly offsets the power the consumes at the site. There would be times (such as during the day with a PV system) that the meter could actually spin backwards, and this would occur when more electricity is being generated than being consumed. At the end of each billing period, the consumer pays only the net amount of electricity consumed, but would not get a credit if they generated more than they consumed. Net metering is always resisted by utility companies, but is now allowed in all US states as it has been enforced through the Energy Policy Act of 2005.
PV systems are expensive, with a system that would generate about 3500 watts-hours during daylight hours costing about US$32,000 plus installation. At the current rate of Bds$0.52 (excluding subsidy) per kilowatt hour, the system would pay for itself in about six years. The BL&P would probably wish to offer Bds$0.15 per kilowatt hour or less, meaning that the system would break even in 18 to 24 years.
David, ask the BL&P about net metering.
Talking about alternative energy, check out the report from the Toronto Star on the futuristic vehicles we will be driving in a few years once oil starts getting really expensive and internal combustion engines are obsolete..
http://www.thestar.com/News/GTA/article/410165
Barbados’ people and Government (past & present) remind me of my current employers…i.e living in the dark ages…but anyways. How long will we continue to bury our heads in the sand and ignore the facts that tell us the fossil fuel supply is FINITE ? This is 2008 and all those who have made comments thus far are all right. The technologies have all developed and continue to do so quite drastically. Yes, the cost to the average homeowner is presently substantial but we cannot continue to languish about hoping that a superpower will come to our rescue. We have to act now… selling a few light bulbs and other such items is no enough. There is a need for legislation and policies that would provide incentives to businesses and homeowners, to invest in the technologies available. The Power company has to consider the consequences of trying to squeeze every last dollar from the consumer versus implementing the systems and measures that would facilitate the combination of alternative and traditional power sources.
We would like to ask Mr. Worme how many of his well-paid engineers are assigned and dedicated to researching and developing such systems.
Can you imagine where would Barbados be if Mr. Husbands had not taken the initiative years ago to pursue, research and develop the solar water-heating business here ?
The solutions are out there… solar (pv), wind, waves, hybrid vehicles, fuel cells, even nuclear! You name it … Barbados can do it !
I fully support a rapid move to net metering. What do we have to lose?
We continue to read in the local press their fixation with the level of subsidy being given to the BL&P by the government to buffer the rising oil cost for residential consumers. On BU we prefer to focus on highlighting the need to mobilize plans to create alternative sources of energy. This seems to be the more sustainable route to travel
I cannot agree with you more, David.
Barbados Treasury cannot afford to subsidise the cost of oil derived energy for any length of time.
That route is needlessly expensive and, in the final analysis counter-productive and totally futile.
We are protecting Bajans from world reality, and only delaying the time when we have to face up to the fact …. there will never be cheap oil again.
The sooner we realise this and adapt our lives to these changed circumstances the better placed we will be.
Subsidies may be the easy route for popularity-seeking politicians, but it stifles the vital innovation and forward planning.
Jamaica and TT may choose to use their arable land to prop up the USA’s refusal to change their profligacy.
They have made their choice, filling up monster SUVs at the expense of filling up the hungry bellies of the world’s poor.
David
..here’s the problem.
When an organisation has been through so many years of success as BL&P, a certain kind of fatness sets in…. same as with Barbados really.
Leaders that gravitate to the top tend not to be change agents, but peace makers and status quo maintainers.
Indeed, in this scenario, the kind of persons needed to advance innovation and change tends to be ‘personas non gratia’ and are often seen as rebels and trouble-makers.
When change is forced on the organisation then, the incumbent leaders try their utmost to maintain course as best they can …..
…this is why Government ( by that I mean the civil servant advisors) instinctively jumps to subsidies for fuel, flour, labour costs, etc…
It is also why BL&P continues to build large capital plant and lobby for Government to remove the subsidy on fuel to manufacturers (disadvantage the competition)… instead of changing so as to be able to succeed in a world of high energy costs…
Actually this is also why the Nation news, Advocate, VOB, CBC and all the established press pretend that blogs do not exists…. they have no idea how to change to meet the new environment.
…read my article again on ‘what is wrong with Barbados’ ….
WE HAVE NO REAL LEADERS IN POSITIONS TO TAKE THE COUNTRY FORWARD….
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