Demand for the Zero Carbon Future Grows

I got a call this weekend from one of Grenada’s largest companies. They are feeling the squeeze of the high electricity costs, and are seeking a cost effective renewable solution. They want “in” on the GHTA campaign.

It comes as no surprise that in a nation with one of the highest electricity rates in the world, other major players want to get involved in the GHTA project. As a sustainable development specialist; this is an ideal situation (and one I could barely imagine 20 years ago!). However, even though I want to run with the excitement and advise the Grenada Hotel and Tourism Association to open their arms and let anyone join in: Doing so may not be as good of an idea as it seems on the surface.

Question: If we want a zero carbon future, why not have anyone and everyone possible join in the campaign???

Answer: This campaign needs phasing –there are so many logistical hurdles to overcome, if we want a sustainable and eventually national solution we need to be strategic about it. In Phase One, it’s best to stay focused, solve the problems that need solving and branch out from there in Phase Two.

One thing needs to be clear: The GHTA campaign is the beginning of a National energy transformation. Not because my clients demand it, but because the rest of Grenada does. Regardless of what the government and GRENLEC want – once the private sector and the people of Grenada start to sing with one voice – it must be listened to.
There are limited Grant funds available – so those grant funds need to be used in a way that opens doors to a national transformation. Grant funds also need to be applied within the context of an energy monopoly that necessitates GRENLEC’s cooperation. Also, since history has shown again and again that technology transfer from wealthy countries to developing nations are rife with challenges – the GHTA project can provide the learning ground to ensure that Grenada’s energy renaissance will be a sustainable one. GRENLEC is also looking at renewable investments, and their expertise and research cannot be underestimated.

Hopefully, if we approach this right – we can work with GRENLEC as partners, rather than adversaries by keeping our eye on a win-zone that is appealing to everyone. Not just one side or the other.

The other reason for keeping it simple is because the GHTA project must consider much more than installing panels on the roofs of hotels. The project needs to address issues like who will fix, install and decommission the technology, what would we do with the e-waste (decommissioned panels at a later date), which technologies are the best priced and most efficient, what are the best back-up systems and what does GRENLEC need to ensure that our investments feed efficiently into the grid. These issues and more have to be resolved and they have to be resolved with a very small pot of money (to start with). This project development is being done solely through Member financial contributions and if we wanted to go bigger we’d need donor support and that would slow the whole thing down as we waited to obtain grants to obtain more grants. No thanks – we want results now.

What is great about other members of the Private Sector expressing so much support for the GHTA campaign is there is power in numbers. When we need negotiating strength we have it. It means that our political leaders will have to recognize that the Nation is ready for sustainable development, and it also means that as the opportunity landscape for national transformation presents itself – it will be a quick and welcome transition!

Drafting the Roadmap Has Begun

Grenada is a phenomenally beautiful place to visit, and because of this most people in Grenada are accustomed to receiving visitors. In our household, we currently have our 5th international visitor in our home in the last 30 days, with two more expected before the middle of July! There's a reason why everyone wants to visit - Grenada is beautiful and the beaches (and diving!) are the best!


While playing host to these visitors, the drafting of the GHTA Zero Carbon roadmap has begun. Interviews with the individual members of the Hotel Cluster have been booked to obtain property specific data needed for proposal writing and at least the first three sections of the roadmap have been drafted already. The Roadmap will feature background and contextual information, a collection of information gathered, and a series of recommended actions to assist the Hotel Cluster to reach the Zero Carbon Goal.

There is no 'scheduled' publication date at this time, but it will be available once the data and stakeholder consultant is sufficiently completed to release it.

It is worthy to note that the GHTA is financing the production of this roadmap without external financial assistance.

Roadmap Taking Shape

The roadmap for Grenada's Hotels achieving their energy goals is finally taking shape. There is an incredible ammount of footwork to do to get there, but at least it's possible to see what needs to be done to get there now. Now that the roadmap outline is taking shape, I will be presenting my ideas to the Grenada Hotel and Tourism Association President. From there, I will have to work on gathering a lot of background data such as the surface area of the roofs so we can calculate how many PV's we can install, how much electricity we can produce, and of course - what it will cost.

So far, it doesn't look like Grants are going to provide enough money to install systems so I'm going to have to work with my national colleagues to find a really favourable financing arrangement - such as a revolving fund. Revolving funds are often used to stimulate private sector development by offering loans at favourable interest rates and with favourable terms that cannot be obtained with traditional commercial financing.

Perhaps with a combination of good commerical financing, grant funds and some donated energy saving hardware (such as LED lights) we can make a dent in our Carbon Footprint! The trick is working out the math:

Can we raise enough money to generate a surplus of electricty using PV's?

If the outline I present to the Chair is approved - next week will be a boring week of obtaining data. Every good job has it's share of grunt work!

IMF Echoes the GHTA's Concerns about Energy Costs

Statement by the IMF Mission to Grenada

[IMF] Press Release No. 12/198
May 30, 2012

An International Monetary Fund (IMF) mission led by Ms. Nita Thacker visited Grenada during May 7–17 for the 2012 Article IV consultation. This consultation is a bilateral discussion which the IMF typically has with its members, once a year. During this Consultation, a staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. The mission met with Finance Minister Nazim Burke, Permanent Secretary Timothy Antoine, other senior government officials, the opposition leader and members of his team, representatives of the business and financial sectors, and labor unions. At the end of the mission, Ms. Thacker issued the following statement:

“Following two years of consecutive decline, there are signs that a fragile recovery may be underway. Real GDP grew by 1.1 percent in 2011 and is expected to reach 1½ percent in 2012, on the back of a continued growth in agriculture and a gradual recovery in tourism stay-over arrivals. Inflation is expected to stay broadly stable at about 3 percent in 2012. However, the fiscal situation deteriorated in 2011, in part, reflecting revenue shortfalls due to the extension of various temporary tax exemptions. Private sector credit growth remains sluggish as banks continue to remain cautious and tighten lending standards given the increase of nonperforming loans. The current account deficit is expected to remain around 25 percent of GDP, reflecting high food and fuel prices. Looking ahead, significant downside risks remain. These include the high public sector debt level and budget financing constraints, high current account deficits and net external liabilities, and financial sector vulnerabilities, including potential spillovers from the region.

“Discussions focused on three policy areas: (i) restoring sustained growth and generating employment; (ii) resuming fiscal consolidation to put debt on a firm downward trajectory and to build a growth-oriented budget; and (iii) strengthening the financial sector. Ambitious reforms in these areas are essential to create jobs, boost medium term growth, and reduce poverty.

“Grenada faces a sizeable competitiveness gap. During the past years, increases in production costs—including from higher energy costs and wages, and lower productivity—have put downward pressure on profit margins and stifled investment. Achieving higher growth and sustained employment generation will therefore require the steadfast implementation of key structural reforms. Some measures for improving the business climate, including implementation of ASYCUDA World, have been implemented. Other key reforms that need to be implemented include wage discipline to reflect productivity combined with efforts to enhance labor skills, improving flexibility of labor and product markets, facilitating access to credit, fostering small enterprise development, addressing high energy costs by using alternative sources, better exploiting the linkages between the agricultural and tourism sectors, and more effective monitoring and implementation of efficiency-enhancing reforms at state-owned enterprises.

“On the fiscal front, the high public sector debt combined with budgetary rigidities and limited sources of financing are key challenges and underscore the urgent need for more lasting and significant fiscal consolidation. The authorities are committed to generating primary surpluses of at least 1½-2 percent of GDP over the medium term to put debt on a sustained downward trajectory and achieve debt sustainability through a combination of revenue and expenditure measures. Addressing existing budgetary rigidities on current spending, in particular with respect to the high wage bill, will strengthen the budget’s pro-growth orientation and create space for capital expenditure. On the revenue side, reducing and streamlining tax incentives and exemptions could generate fiscal space for much-needed investments in infrastructure and other development priorities to ensure sustained growth and create buffers against future shocks.

“Ongoing efforts to strengthen the financial sector could benefit from further improvements in monitoring and forceful action to address weakening of credit portfolios, low profitability, and the rising level of nonperforming loans, both at banks and credit unions. Potential spillovers from regional financial markets should continue to be monitored.

“Upon its return to Washington, the mission will prepare a report, to be discussed by the IMF's Executive Board, tentatively scheduled for July 2012. The mission thanks the authorities for their warm hospitality, candid discussions, and close cooperation during its stay in Grenada. The mission also thanks all other stakeholders for taking the time to discuss various issues.”

The Grantwriting Grind

When I work with clients who want me to develop project proposals for them, I often encounter an expectation that I will just fill in a form, make a budget and funding will follow. Thankfully Grenada’s Hotel and Tourism Association knows better - because the project planning process to reach a zero carbon and energy liberalization goal is pretty involved!

As it is I am splitting hairs over it already. It seems like such a simple goal, but it’s a logistical nightmare. We have to consider timing – there is a need to make changes now – not years from now. So this is something I have to factor into everything. Then, the harsh reality is that none of the funding pools are sufficient to make a dent in converting to renewable technology. Either the pots of money are too small, or the technology is too dear. Private sector funding and fast-track funding is an option, but the best place to get access to that would be at a conference like the Rio +20 but we don’t even know who Grenada’s delegation members are, let alone whether they’d be any good at attracting corporate or bilateral sponsors.

As I keep saying though – where there’s a will, there’s a way – and I will find it.
Looking at various scenarios to pursue is a start. Retrofitting properties is a nice idea, but it’s not possible to just develop an open ended proposal for a pot of money to buy products for retrofitting. Energy audits must be done, cost comparisons must be made and if the product orders are big enough, tender dossiers must be prepared.

For example, LED lighting can reduce carbon emissions and electricity costs significantly. Using a typical small grants scheme as an example; I can only raise enough money to get about 1500 bulbs to share among 20 properties (even with the properties putting in 30%) unless we are willing to wait years and years for them by going for larger long term grants. Small grants usually take 1.5 years to get, while larger ones usually take 2.5 years and longer. We don’t have that kind of time.

Solar panels are a great solution, but the funding out there would only convert about 3 properties, leaving everyone else out, and even if I could raise all the money needed there are issues with maintaining the stability of the grid. Commercial financing for solar panels are out because the local utility forces properties to sell 100% of their renewable energy to the utility and then the utility sells it back with an almost 200% mark up.

The national conversion seems to be the most logistically sound path to follow (and most results oriented) since the entire country’s peak energy draw is only about 30Mw. But this will not be a quick fix because national renewable energy conversion should not be done with a monopoly arrangement, which means the monopoly needs to be broken first. In the meantime, the hotels are being strangled by one of the highest electricity rates in the world. The hotels have been trying to get the utility to cut rates for a long time now and the utility won’t budge.
I’ve got to develop a more effective lobby on that front, for sure.

So, I sit at the ‘drawing board’ working out scenarios, phases, matching up funding sources to possible activities all the while knowing the clock is ticking........tomorrow I have meetings scheduled with what I will call high value “Assets” who may be able to help me see the forest for the trees!
At least I have been doing this long enough to know that I usually feel the most lost right before I come up with my brightest ideas.

Civil Society to Guide Development in Grenada?

In an interesting turn of events yesterday; participants of the Non-State Actors Panel were informed that the Alternative Growth and Poverty Reduction Strategy has been very warmly received by the European Union Delegation in the Barbados, and with some extra time and effort invested – it could become the “official” country PRSP! According to the EU, what the Non-State Actors have done is the first of its kind in the Region, and the PRSP that was written for the Government was deemed ‘not-acceptable’ by the EU leaving the Civil Society document as the only functional development strategy for the nation at this time.
This is a really commendable development for Grenada, and an incredible opportunity to transform Grenada’s future. Ample praise and appreciation is due to the people who invested their time to consult with stakeholders and prepare the document – particularly since most of the document was prepared with volunteer resources (I will rant about the inequities of consultant contracts another day) by people who should have been paid for their work. But I know that like me – those of us who are really committed to a sustainable future for our children don’t do this work for the money so the work will get done anyway.
If this PRSP is ‘mainstreamed’ it could be used as a benchmarking tool for EU Budget Support and for this fact alone – the prospect is thoroughly thrilling! The 10th EDF budget support is worth nearly €10 million Euros. Imagine if it was spent wisely!?

For generations the world over, development strategies have been defined by powerful elite and technocrats, and that neglected community oriented priorities, indigenous knowledge and many practical considerations. The cornerstone of sustainable development is local ownership – and that means ownership at the community level – not just among the elites. Put in simple terms – imagine any team oriented sport where the players on the team are all trying to score in different nets. Practically speaking, it means that if sustainable development is to be achieved, all the players must know what the win-zone looks like and they must have a desire or at least an interest in reaching it. Without that kind of buy –in, it means people are struck with the antiquated trickle-down effect, which yields muted results at best.

So for these reasons Grenada is poised to mature as a nation in a very important way, and quite ironically the global economic slowdown has put development pressures on the private sector (such as electricity prices) that have moved all the non-state actors closer together in terms of how they perceive the win-zone.
Now it is up to those of us who are good at communications and strategic planning to enable this momentous opportunity! As one local activist said yesterday, ‘It is time to inspire’ [people]. Development from the bottom up, that is informed by sound fiscal policy and technocratic experience is in my view, the best and most durable approach for getting on (and staying on) a sustainable development path that respects the economy, society and the environment.

As far as the Hotel and Tourism Association and my company are concerned, our contribution to this will be our efforts to bring some energy justice to Grenada through our lobby for price reductions, energy liberalization and ultimately the conversion to renewable energy. There is no way we can consider a sustainable future for this nation if our energy production leaves us import dependant in an unstable global environment – and there is no way we can be a sustainable nation if households earning $800 XCD a month (yes, that’s a full time wage for some people here!) have to pay $20 XCD a month for every fan they use to keep the mosquitoes and heat away from them at night.
So we will be contributing to the PRSP process by defining our energy goals that will very likely become part of the Strategy’s action plan. I am quite confident that the GHTA’s plans will be adopted by the Non-State Actors Advisory Panel and eventually mainstreamed as a national development priority.
How amazing is that!!????

Maybe just maybe, I will be able to look into my daughters eyes when she grows up and tell her ‘I did all I could to preserve your future and it made a difference’. I shudder to even think what kind of a world she will inherit if we fail.

The second day of meetings with the Non-State Actors Advisory Panel is about to begin. Yesterday, was a full day dedicated to presentations and discussion around thematic areas such as corporate social responsibility, investment, ICT4D and of course, energy.

Today, the group will be working together to provide input into project ideas for an action plan that will supplement the The Alternative Growth and Poverty Reduction Strategy for Grenada. This strategy is important, because the current development paradigm (at the international financial institutions, at least) places a great deal of emphasis on Poverty Reduction Strategy Papers (PRSPs). These are supposed to be 'home-grown' strategies developed by countries that outline the Nations own strategic development plans. The Non-State Actors Advsiory Panel is financially supported by the 10th European Development Fund (10th EDF) and it is a mandated requirement for the 10th EDF Budget Support (The European Union is now providing Official Development Assistance through budget support - but that's a whole other posting to explain!). The emphasis on local ownership is in part, a corrective measure from the era of Structural Adjustment Programmes (SAPs) of the 1980's and early 1990's that 'un-developed' a lot of countries due to the high level of outside influence on country development strategies. SAPs were focused on creating a favourable global investment climate that included devaluing local currencies to attract foreign investment, and cutting social spending. It was an appauling experiment in development that came with a high price tag for people and the environment.

So now, we have PRSP's serving as our global development rennaisance. Is it working? In Grenada's case, the country's official PRSP has not been published, so it's hard to tell. But if the Alternative PRSP developed by the Non-State Actors Panel gets any traction, it could be quite successful here. The Strategy applies critical development theory to practical local circumstances, and that is a good foundation for developing a practical action plan. It also has created a participatory forum for non-state actors to actively participate in development planning.

In yesterday's meeting, the most exciting contribution came from Dennis Noel, who owns a company called "Noelville" which makes a hugely successful pain relief product called "nutmed" produced with nutmeg oil. His proposal to the group was for us to focus on developing Grenada's herbal products and emphasize pharmaceudical research and development that would enable us to develop pharma products in Grenada for export to the world market. That's the kind of practical, forward thinking approach that can transform the nation if we all get behind it!

I explained the Grenada Hotel and Tourism's 'Earth Day Declaration' to the group; so that they might be informed of what private sector stakeholders are planning to do with respect to renewable energy. It wasn't clear whether the facilitator understood that our intention was to garner their endorsement, rather than asking them to take up our agenda. Needless to say that can be cleared up today.

I am quite proud of the fact that Grenada's private sector as a whole is ready to embrace sustainability and I think it is really important to blow that trumpet as often as possible, because if ALL of civil society can get behind a vision and own it, Grenada's development future is certain to be more prosperous and sustainable.