A leading manufacturer in the Caribbean is lamenting the high price of electricity and its impact on the manufacturing sector in the region.
Speaking at the Dominica Manufacturers Association’s annual general meeting last night, President of the Jamaica Manufacturers Association, Brian Pengelley, said the cost of electricity in the region must be addressed.
“Energy is a critical cost component for our respective manufacturers and I think we are both somewhere in the US49 cents range per kilowat hour,” he remarked. “We cannot survive in manufacturing with that kind of rate.”
Pengelley noted that Trinidad is the only country in the Caribbean which has a clear competitive advantage in terms of electricity generation, which he said is based on oil subsidies. He called on the region to put its house in order in terms of diversifying energy resources but insisted that “this issue of energy must be addressed.”
He is suggesting that regional manufacturers “talk to each other more” because “there are no short term solutions” to the high electricity costs and other problems plaguing the sector.
“There is no regional manufacturers’ association,” he pointed out. “So we need to develop relationships …we need a regional association where we can gather and discuss these issues from each country and then agree on a course of action.”
Pengelley also called on manufacturers to make their economies efficient through “effective management, modernization of our plants, energy efficiency and productivity improvements”
let look at something immediate to address this issue.
The GOVT should establish with DOMLEC a standard lower rate per KW for any manufacturing plant putting its operation on island that would provide local employment.
1. People- would receive employment
2. Domlec- profits and revenues would increase due to the increase consumption from the manufacturing plants
3. GOVT- would receive more taxes as more people will be gainfully employed by these manufaturers.
The stakeholders managing our institutions need to think outside the box.
Dominica need any alternative it can find.. It is a land of few resources. We do not have oil which is a pollutant. We have a gas in the ground.
Skeritt! Take note and if you cannot do it let office for someone who can.
So our PM responsible for the region too? Well he real powerful papa.
What do you think geothermal is? If skeritt had said the same, it would have been met with your same opposition.
I thought there was a Caribbean Association of Industry and Commerce where matters such as cost of energy are dealt with. I guess if you split the Industry from the Commerce another person will hold a top regional position. More bread for a few.
that’s another compelling reason for the development of alternative energy sources in Dominica – geothermal energy is definitely the way to go. Wind energy is also a possible viable alternative. Dominica would definitely have a tremendous advantage in drawing foreign investment to its shores if it can provide cheap energy.
A truer word has never been spoken.
Add to that the amount of rubbish that get disposed from households each week. These can be recycled to bring in some energy. All these supposed educated people only come with foolish solutions. Ask an uneducated man his idea and see his logical explanation
I agree with the statement with regards to developing alternative sources of energy, but geothermal energy is NOT the answer.
Instead, the focus should be placed on building small hydro electric plants and tie them together as part of a national grid. There are supposedly 365 rivers in Dominica; I am sure we can find at least 12 that are suitable for this purpose.
Water power is the renewable energy way to go. Alternatives are just too expensive. Geothermal energy production is a pipe dream. If it was a such a good idea why aren’t the French and other islands harnessing its promise?
Nacinimod – I am not averse to the development of Hydro power, but let’s face some facts. Dominica’s “365 rivers” are not of the size that can generate the amount of excess, cheap power that a single geothermal plant can produce. Our rivers are small, almost stream-like, and if you want to install micro-hydro plants, you will have to have a dam at each installation. That means a lot of arable land now being used in agriculture, would be flooded and made useless – there goes a significant amount of our agricultural output. These dams would have to be high in order for the water to generate enough of a force to drive the turbines. Dams are prohibitively expensive. The efficiency of each plant depends on the volume of rain we get – we’re at the mercy of the weather. In the case of a geothermal plant, we’re in good shape as long as Dominica continues to be a volcanic island – do you have any clue as to when that might stop? You don’t, and neither do I, and both of us both know that we can run into a dry weather spell at any time in a calendar year. You get my point? I love our land as it is – I would pass on hydro and do geothermal and wind. I am sure it is feasible to have an offshore wind farm on the Atlantic side of DA. The wind coming off the ocean is tremendous. That’s a source that can be tapped.
And by the way, you know why we’re the best to develop geothermal energy? It’s because Dominica, more than any other island in the Caribbean, is best suited to develop it because we’re the most volcanic and we have more possible vents that can be tapped to extract the steam coming from deep down that is used to drive the turbines to produce the energy. None of the other islands can compete with DA in that category. And the prevalence of all these possible geothermal sights here in DA makes it far more feasible and cost-effective to place a plant here than anywhere else. You think they can do that in Antigua? or Barbados? or even Jamaica? or pick any other island. They do not have the potential generative capacity that we have, that’s why we need to explore what we have. We’re not a country with many commercial natural resources so we ought to do the best with what we’ve got. I am totally for abundant, cheap energy – companies flock to places that can provide that. I can guarantee you that if we provide this energy and simultaneously put in place an attractive business package for foreign investment, our economy will be jumping. We may not want to attract manufacturing plants here, but we can certainly develop a service industry – accounting, communications, business services, call centers — companies involved in providing services to other businesses, they would jump.
So, because the french is not doing something means it is a bad idea? America does not have medical care for it citizens is that a good thing? We need to be innovators not looking on other countries and seeing what they are doing. Is that what we are teaching our children to only do as the powers do. if that is the case we will never move forward. Does mean they are always right and they have your best interest at heart.
Pull your businesses out and go where the rates are better and let them hold their power