Prudence N. Barnes, Gleaner Writer
MOSS-SOLOMON
EXPRESSING SERIOUS concern over the escalating oil prices on the world market, James Moss-Solomon, newly-elected President of the Caribbean Association of Industry and Commerce (CAIC), is urging regional economies to intensify their push to explore renewable and alternative sources of energy.
The CAIC is a 50-year-old entity which is the umbrella organisation of businesses carrying out advocacy and lobby efforts to advance development of businesses in the region including CARICOM member states, the Dutch and French Caribbean.
Mr. Moss-Solomon who is also the chief corporate affairs officer at the GraceKennedy Group, issued a call for more emphasis on the exploration of renewable energy, and incentives to enable the average person to access cheaper renewable and alternative sources of energy. He said a push toward alternative sources of energy was critical in the face of unstable world oil prices and a commodity which was 'finite'.
Speaking in an interview with the Financial Gleaner, Mr. Moss-Solomon said that he "was very concerned about oil prices". He noted that Governments, businesses, the academic community along with ordinary Jamaicans had a role to play in advancing energy independence.
"I don't know where we are in terms of scientific exploration of alternative energy sources, but I think for the Caribbean, we need to focus on alternative energy. I would love to see every university that we have in Jamaica, focused on some research," he said. He noted that GraceKennedy had implemented energy conservation efforts and was now moving to explore alternative sources.
Much ground had been lost in the move to explore other energy sources, he said, observing that if the same aggressiveness that had been applied to the development of emergent computer technology had been applied to researching alternative energy sources, the region would have been far advanced in its push to reduce dependence on foreign oil.
"If solar cell research had produced one per cent of the advances that we have had in computer chip technology, then we would be running this place like sunlight. So all these alternate technologies that are still more costly than oil - if they had just made that leap that the computer had made, then solar cell technology would be cheaper than oil," Mr. Moss-Solomon said.
Ordinary people through their own ingenuity could also help to push for alternative energy sources, he said, expressing the view that persons did not have to rely on government to do everything.
He also wanted to see more incentives in the form of tax concessions offered to encourage persons to use solar energy in homes, as well as more public education to inform persons of the risk inherent in the regions dependence on oil.
Over the past year, oil prices have skyrocketed to unprecedented highs, moving from approximately $30 per barrel, to recently surpassing the US$60 per barrel mark, a benchmark that was virtually unfathomable
even a couple years ago. And predictions are that oil prices could go even higher.
Oil was a depletable resource and prices were subject to the "vagaries of political and military machinations", Mr. Moss-Solomon said, adding the rapid push towards industrialisation on oil-based economies by Asian countries such as India and China was expected to further stretch world demand, placing Caribbean economies under even more economic pressure.
"For countries like us who are heavily dependent now on oil, we need to find a way to get out of the grips ? we certainly do not have the leeway, the competitive advantage to be able to retain that in any way shape or form. What if oil prices were to reach US$100 per barrel?" he asked rhetorically.
Agreeing with recent comments by the head of the JPS that petroleum prices could push the electricity cost out of the reach of some Jamaicans, Mr. Moss-Solomon said the possibility existed that Jamaicans could have to undertake lifestyle changes and give up other necessities in order to pay for electricity if the prices continued to escalate and the region remained dependent.
He stressed that countries like Jamaica and other parts of the region should seek to take advantage of the resources that they do have for power generation. "We do not own any oil, we need power, we have a lot of sunshine, we have a lot of deep off shore trenches where we can get thermal energy, "Mr. Moss-Solomon said also citing ethanol a by-product of the sugar, as an alternative source of energy.
Mr. Moss-Solomon emphasised that "every possible form of cheap generation of electricity and alternative to oil should be aggressively explored by every small island developing economy.
The Government of Jamaica recently announced an oil deal with Venezuela under the San Jose Accord which is expected to help mitigate the impact of the massive oil prices on the Jamaican economy by providing a more attractive credit facility among other benefits. An earlier agreement was also forged with Trinidad to provide 1.15 million tonnes of Liquified Natural Gas (LNG) to the Jamaican economy at competitive prices.
Despite efforts at pursuing renewable energy development, according to the 2004 Economic and Social Survey, Jamaica has a heavy dependence on imported petroleum for its energy needs, importing over 90 per cent of its demand in 2004 costing the country some US$934 million.
An energy policy which was passed by Parliament in 1995 with an interim review in 2000, noted that, "with disruption in oil supplies, escalating oil prices, energy-price-related inflation, deterioration on balance of payments, and environmental degradation still being the main concerns in 2004, the energy policy continued to focus on: diversification of the energy base; energy conversation; efficiency in energy use and production; and reduction of environmental effects from the use of fossil fuels."
A number of renewable energy projects were in progress, including the commissioning of a 20.7 megawatt wind farm in Wighton, Manchester, a hydropower facility on the Laughlands Great River, St. Ann which was under-going study, and a feasibility study for producing co-generation using bagasse and ethanol from the sugar industry was being undertaken by an Indian consulting firm.
Dr. Cezley Sampson, National Director, Energy Efficiency at the Petroleum Corporation of Jamaica told the Gleaner that the Government was moving seriously to pursue renewable energy as part of its strategy for electricity generation, motor vehicle transportation and residential services. Noting that 10 per cent of the island's energy source was currently renewable energy, Dr. Sampson pointed out that wind the farm in Manchester and three hydro projects were up and running, as well as projects making use of bagasse and solar energy.
With respect to the bagasse and ethanol (bi-products of sugar) co-generation project under study, Dr. Sampson said that the Government of Jamaica had received a preliminary report from the Indian consulting firm. The Government was exploring certain options, he said, adding that a final report was to be presented shortly.
Adding that there was great concern at the governmental level regarding energy costs, Dr. Sampson indicated that further research, policy thrusts, and projects were being pursued in the area of alternative and renewable energy.
