Dear Editor,
Fuel oil currently drives our national economy. If NV GEBE (utility company) did not receive a shipment of fuel for whatever reason, and the company’s reserves were to run out, the country’s economy would come to a complete standstill. This would costs millions of dollars in lost business, and would also have serious consequences for our tourism and travel sector.
St. Maarten’s energy security is not only an issue for the island, but for many other Caribbean island nations. According to the World Bank, the average cost of electricity is four times higher than in developed countries such as the United States. Some small island nations use between seven and 20 per cent of Gross Domestic Product on petroleum to meet their energy needs. This creates bottlenecks for economic growth and prosperity.
At the moment, St. Maarten and the rest of the Caribbean are currently enjoying low oil prices due to a stagnant and sputtering global economy. Once consumers around the globe start to spend again, the costs of production will increase and so will the price of a barrel of oil; and, what we are enjoying today in a low fuel clause at the end of every month since last year from NV GEBE, will increase because our utility company will have to pay more for fuel imports to run its generators in order to produce electricity for the nation and its economy.
The current low energy prices are seen as an opportunity for the Caribbean Region to draft a security energy strategy that would mean considerable investments in clean energy.
Last week, regional leaders attended the U.S. Caribbean Energy Security Summit in Washington D.C., chaired by Vice President Joe Biden. St. Maarten was also represented at this Summit by the Prime Minister and Minister of Public Housing, Spatial Planning, Environment and Infrastructure.
The Region, according to the World Bank, has a diverse and large renewable energy potential including and not only limited to solar, but also wind, geothermal, biomass and marine energy.
Guadeloupe is already generating 15 megawatts of electricity from geothermal energy. Several other Caribbean islands are exploring this energy potential namely: Dominica, Grenada, Montserrat, St. Lucia, St. Kitts & Nevis, and St. Vincent and the Grenadines.
Caribbean governments have been advised to reduce inefficiencies in their electricity production systems by reducing waste (replacing old equipment), modernizing its electricity distribution and grid systems; making buildings throughout the community energy efficient; replacing and using LED light bulbs, solar water heaters, high efficient air conditioners.
The Caribbean Community CARICOM secretariat estimates that it will take US $20 billion over the next five to 10 years to transform the energy sectors of the Region. Deputy Assistant Secretary of State for Central America and the Caribbean, during the Energy Summit last week, stated that governments will have to allocate money in their own national budgets to invest in internal energy renewables. This alone of course will not be sufficient, and the input of international donors and the private sector will also be necessary.
The aforementioned will require St. Maarten stakeholders to come together and discuss our national energy security and future needs based on current global trends and developments. Those to benefit in the end should be the consumer.
Roddy Heyliger
