Wind of change sweeps through energy policy in the Caribbean

Aruba in the southern Caribbean has 107,000 people, a lot of wind and sun and, until very recently, one very big problem. Despite the trade winds and sunshine, it was spending more than 16% of its economy on importing 6,500 barrels of diesel fuel a day to generate electricity.

People were furious at the tripling of energy prices in 10 years and the resulting spiralling costs of imported water and food.

That changed at the Rio earth summit in 2012, when the prime minister, Mike Eman, announced that the former oil-producing Dutch island close to Venezuela planned to switch to 100% renewables by 2020.

Working with the independent US energy group the Rocky Mountain Institute and the business NGO Carbon War Room, Aruba ditched its old steam turbines for more efficient engines and changed the way it desalinated seawater.

It cost $300m (£183m), says the energy minister and deputy PM Mike D’Emeza, but Aruba immediately halved its fuel consumption and saved itself $85m a year. It then built a 30MW wind farm and cut its diesel consumption a further 50%. Now it is planning another wind farm and a large solar park. By 2020, Aruba will be free from fossil fuels and possibly storing renewable electricity under water or using ice.

The move to energy independence has had dramatic results, says De Meza. Electricity prices, which were US 33c/ KwH in 2009, have dropped 25% and are stable; inflation has been reversed; the island has nearly paid off the $300m it cost to switch out of diesel; the price of drinking water has fallen by almost a third; and the number of people unable to pay their bills has declined drastically.

“We had been grappling with very high energy costs for 15 years. We realised that our dependency on fossil fuels was leading to political and economic instability. We had to act,” De Meza says.

Aruba is already enjoying health and economic benefits. More tourists are keen to visit a green island, he adds, and children are fitter because it costs families less to pay for sports, and there is less illness. “It has been very popular. Instead of energy prices being the top of the political agenda, the debate now is about which is the best renewable energy source Aruba should go for next.”

Many other Caribbean islands are eager to follow Aruba. Some in the region pay more than 42c/ kwh – three or four times the price paid in most of the US and Europe – and up to 25% of their GDP on diesel for electricity.

Many are also locked into long-term contracts with monopolistic US or Canadian utility companies which have negotiated 17% or even higher guaranteed profit margins.

With many states also having to pay off onerous long-term loans to regional banks, the net effect of high power costs is continual misery, says Nicholas Robson, director of the Cayman Institute thinktank. “People are coming to me saying they cannot afford electricity. It costs 42c in the Caymans. It’s approaching a crisis point. People are struggling because of energy prices.”

“We are very concerned about the high cost of energy and how it affects jobs,” BVI prime minister Orlando Smith adds.

“We pay 38c/ KwH,” says James Fletcher, St Lucia’s energy and science minister. “The result is that industries like tourism, which are very heavy electricity users, are not competitive, our agriculture cannot move out of being just primary commodity producers, and our people have no money.”

St Lucia plans over the next 10 years to switch much of its electricity from diesel to renewables, using geothermal, wind and solar power. The government will make it easier for people to generate their own electricity to reduce diesel demand, and changing street lights to LEDs could reduce costs by $11m a year, he explains.

“Renewables will provide new jobs, everyone will have more money in their pockets, transport will be cheaper and companies will be able to expand more easily,” Fletcher says.

“Islands can get prices down to just 12c/ KwH,” says Ed Bosage, a wealthy American financier who bought the small island of Over Yonder Cay and who has switched it to 96% renewables with wind, solar and a tidal generator. “The wind blows at an average of 16 knots. The tidal is extremely reliable. We learned that wind trumps sun by 2:1. We now produce electricity for 12c, the cheapest in the Caribbean, and will get it cheaper. It’s repeatable everywhere,” he says.

Caribbean islands share similar problems to thousands of others in the Pacific and elsewhere. Mostly, they are not on national grids, which makes them vulnerable to high energy costs, fuel has to be imported at extra cost, and they are often reliant on just one utility company and most are too small to benefit from economies of scale.

While some can attract high-spending tourists and offshore finance companies, small island states are often heavily indebted, with weak economies, pockets of intense poverty and often rundown hospitals and schools.

But, says Peter Lilienthal, director of Colorado-based Homer Energy and former US national energy laboratory chief, islands stand to benefit from the renewable revolution more than anyone. “Diesel is now hurting small islands. They are burning money. But the price of solar has plummeted in the last few years. It’s now cost-efficient everywhere. Islands now can be the leaders.”

Jamaica is investing heavily in wind, Barbados in solar power and eight island states – Aruba, British Virgin Islands, Dominica, St Kitts and Nevis, Grenada, St Lucia, Turks and Caicos,and the Colombian islands of Providencia and San Andreas have joined the Carbon War Room’s “10 island challenge”. This gives them access to technological and funding help from the Rocky Mountain Institute and others.

“Renewables have come slowly to the Caribbean and other developing countries but the technology is now cheap enough and diverse enough to make it much easier to install,” says Amory Lovins, chief scientist at the Rocky Mountain Institute. “Small islands can move fast if they have coherent policies. They can be the future.” More

 

Elon Musk debuts the Tesla Powerwall

Why Tesla’s announcement is such a big deal: The coming revolution in energy storage

Tesla CEO Elon Musk presented his new Powerwall solar batteries on April 30, 2015. Musk says the batteries could dramatically reduce the use of fossil fuels by replacing use of the power grid. (AP)

Late Thursday, the glitzy electric car company Tesla Motors, run by billionaire Elon Musk, ceased to be just a car company. As was widely expected, Tesla announced that it is offering a home battery product, which people can use to store energy from their solar panels or to backstop their homes against blackouts, and also larger scale versions that could perform similar roles for companies or even parts of the grid.

The anticipation leading up to the announcement has been intense — words like “zeitgeist” are being used — which itself is one reason why the moment for “energy storage,” as energy wonks put it to describe batteries and other technologies that save energy for later use, may finally be arriving. Prices for batteries have already been dropping, but if Tesla adds a “coolness factor” to the equation, people might even be willing to stretch their finances to buy one.

The truth, though, is Tesla isn’t the only company in the battery game, and whatever happens with Tesla, this market is expected to grow. A study by GTM Research and the Energy Storage Association earlier this year found that while storage remains relatively niche — the market was sized at just $128 million in 2014 — it also grew 40 percent last year, and three times as many installations are expected this year.

By 2019, GTM Research forecasts, the overall market will have reached a size of $ 1.5 billion.

“The trend is more and more players being interested in the storage market,” says GTM Research’s Ravi Manghani. Tesla, he says, has two unique advantages — it is building a massive battery-making “gigafactory” which should drive down prices, and it is partnered with solar installer Solar City (Musk is Solar City’s chairman), which “gives Tesla access to a bigger pool of customers, both residential and commercial, who are looking to deploy storage with or without solar.”

The major upshot of more and cheaper batteries and much more widespread energy storage could, in the long term, be a true energy revolution — as well as a much greener planet. Here are just a few ways that storage can dramatically change — and green — the way we get power:

Almost everybody focusing the Tesla story has homed in on home batteries – but in truth, the biggest impact of storage could occur at the level of the electricity grid as a whole. Indeed, GTM Research’s survey of the storage market found that 90 percent of deployments are currently at the utility scale, rather than in homes and businesses.

That’s probably just the beginning: A late 2014 study by the Brattle Group, prepared for mega-Texas utility Oncor, found that energy storage “appears to be on the verge of becoming quite economically attractive” and that the benefits of deploying storage across Texas would “significantly exceed costs” thanks to improved energy grid reliability. Oncor has proposed spending as much as $ 5.2 billion on storage investments in the state. California, too, has directed state utilities to start developing storage capacity – for specifically environmental reasons.

For more power storage doesn’t just hold out the promise of a more reliable grid — it means one that can rely less on fossil fuels and more on renewable energy sources like wind and, especially, solar, which vary based on the time of day or the weather. Or as a 2013 Department of Energy report put it, “storage can ‘smooth’ the delivery of power generated from wind and solar technologies, in effect, increasing the value of renewable power.”

“Storage is a game changer,” said Tom Kimbis, vice president of executive affairs at the Solar Energy Industries Association, in a statement. That’s for many reasons, according to Kimbis, but one of them is that “grid-tied storage helps system operators manage shifting peak loads, renewable integration, and grid operations.” (In fairness, the wind industry questions how much storage will be needed to add more wind onto the grid.)

Consider how this might work using the example of California, a state that currently ramps up natural gas plants when power demand increases at peak times, explains Gavin Purchas, head of the Environmental Defense Fund’s California clean energy program.

In California, “renewable energy creates a load of energy in the day, then it drops off in the evening, and that leaves you with a big gap that you need to fill,” says Purchas. “If you had a plenitude of storage devices, way down the road, then you essentially would be able to charge up those storage devices during the day, and then dispatch them during the night, when the sun goes down. Essentially it allows you to defer when the solar power is used.”

This will be appealing to power companies, notes Purchas, because “gas is very quick to respond, but it’s not anywhere near as quick as battery, which can be done in seconds, as opposed to minutes with gas.” The consequences of adding large amounts of storage to the grid, then, could be not only a lot fewer greenhouse gas emissions, but also better performance.

2. Greening suburban homes and, maybe, their electric cars, too.

Shifting away from the grid to the home, batteries or other forms of storage have an equally profound potential, especially when paired with rooftop solar panels.

Currently, rooftop solar users are able to draw power during the day and, under net metering arrangements, return some of it to the grid and thus lower their bills. This has led to a great boom in individual solar installations, but there’s the same problem here as there is with the grid as a whole: Solar tapers off with the sun, but you still need a lot of power throughout the evening and overnight.

But storing excess solar power with batteries, and then switching them on once the solar panels stop drawing from the sun, makes a dramatic difference. Homes could shift even further away from reliance on the grid, while also using much more green power.

Moreover, they’d also be using it at a time of day when its environmental impact is greater. “If you think about solar, when it’s producing in the middle of the day, the environmental footprint is relatively modest,” explains Dartmouth College business professor Erin Mansur. That’s because at this time of day, Mansur explains, solar is more likely to be displacing electricity generated from less carbon intensive natural gas. “But if you can shift some of that to the evening … if you can save some to the middle of the night, it’s more likely to be displacing coal,” says Mansur.

Some day, perhaps, some of the sun-sourced and power could even be widely used to recharge electric vehicles like Teslas — which would solve another problem. According to a much discussed 2012 paper by Mansur and two colleagues, electric vehicles can have a surprisingly high energy footprint despite their lack of tailpipe emissions because they are often charged over night, a time when the power provided to the grid (said to be “on the margin”) often comes from coal.

But if electric vehicles could be charged overnight using stored power from the sun, that problem also goes away.

All of which contributes to a larger vision outlined recently by a team of researchers at the University of California at Los Angeles’s Institute of the Environment and Sustainability in which suburban homeowners, who can install rooftop solar combined with batteries and drive electric vehicles, start to dramatically reduce their carbon footprints — which have long tended to be bigger in suburbia, due in part to the need for long commutes — and also their home energy bills.

Granted, it’s still a vision right now, rather than a reality for the overwhelming number of suburbanites — but energy storage is a key part of that vision.

3. Helping adjust to smart energy pricing

And there’s another factor to add into the equation, which shows how energy storage could further help homeowners save money.

For a long time, economists have said that we need “smart” or “dynamic” electricity pricing — that people should be charged more for power at times of high energy demand, such as in the afternoon and early evening, when the actual electricity itself costs more on wholesale markets. This would lead to lower prices overall, but higher prices during peak periods. And slowly, such smart pricing schemes are being introduced to the grid (largely on a voluntary basis).

But if you combine “smart” pricing with solar and energy storage, then homeowners have another potential benefit, explains Ravi Manghani of GTM Research. They could store excess power from their solar panels during the day, and then actually use it in the evening when prices for electricity go up — and avoid the higher cost. “There’s an economic case to store the excess solar generation and use it during evening hours,” explains Manghani by email. (For more explanation, see here.)

Notably, if there are future reductions in how much money solar panel owners can make selling excess power back to the grid — and that’s one thing the current pushback against net metering wants to achieve — then energy storage comes in and gives panel owners a new way for using that power.

“Storage increases the options,” explains Sean Gallagher, vice president of state affairs at the Solar Energy Industries Association. “It’s an enabling technology for solar. It allows customers to meet more scenarios economically.”

So in sum — cheaper, more easily available energy storage helps at the scale of the power grid, and also at the level of our homes, to further advantage cleaner, renewable energy. So if the economics of storage are finally starting to line up — and its business side to ramp up — that can only be good news for the planet. More

 

It’s time to talk about what’s next

http://youtu.be/d6z4yDu3gco

It’s time to talk about what’s next.”

This statement also applies to the Cayman Islands, in fact is is more crucial to a Small Island Developing States (SIDS) than anywhere else. “It is time for Caymanians (Americans) to think boldly about… what it will take to move our country to a very different place, one where outcomes that are truly sustainable, equitable, and democratic are commonplace.’

Caymanians ask yourselves

‘Do we want cheaper energy generated by solar and wind’?

Ask ‘how will climate change affect us?’

Ask ‘how will sea level rise affect us?’

Ask ‘how will Cuba opening to US citizens affect us?’

These are questions that very few people or organizations in these islands are asking.

Those are the words of academic and author Gar Alperovitz, founder of the Democracy Collaborative, who—alongside veteran environmentalist Gus Speth—this week launched a new initiative called the “Next Systems Project” which seeks to address the interrelated threats of financial inequality, planetary climate disruption, and money-saturated democracies by advocating for deep, heretofore radical transformations of the current systems that govern the world’s economies, energy systems, and political institutions.

Micropower’s Quiet Takeover

In a cover story and article 14 years ago about the emergent disruption of utilities, The Economist’s Vijay Vaitheeswaran coined the umbrella term “micropower” to mean sources of electricity that are relatively small, modular, mass-producible, quick-to-deploy, and hence rapidly scalable—the opposite of cathedral-like power plants that cost billions of dollars and take about a decade to license and build.

His term combined two kinds of micropower: renewables other than big hydroelectric dams, and cogeneration of electricity together with useful heat in factories or buildings (also known as combined-heat-and-power, or CHP).

Besides being cost-competitive and rapidly scalable, why does micropower matter? First, as explained below, its operation releases little or no carbon.[1] Second, micropower enables individuals, communities, building owners, and factory operators to generate electricity, displacing dependence on centralized, inefficient, dirty generators. This democratizes energy choices, promotes competition, speeds learning and innovation, and can further accelerate deployment—because “vernacular” technologies accessible to many diverse market actors, even if individually small, tend to deploy faster in sum than a few big units requiring specialized institutions, complex approvals, intricate logistics, and hence long lead times.

Thanks to Bloomberg New Energy Finance, which tracks investments and generating capacity, and the global expert network REN21.net, which tracks capacity and (where known) electrical output, global progress in renewables has become rather transparent. Starting in 2005 and updated with a fifth edition in July 2014, RMI’s Micropower Database added a third source: industry sales data for cogeneration equipment. Tracking renewables, minus big hydro, plus cogeneration, this database documents the global progress of distributed, rapidly scalable, and (as we’ll see) no- or low-carbon generators.

The update’s most astonishing finding: micropower now produces about one-fourth of the world’s total electricity (Fig. 1).

MICROPOWER’S CLIMATE IMPLICATIONS

Operating modern renewables is essentially carbon-free, except for minor subsets fueled by biomass grown using unsustainable practices that gradually deplete soil carbon.[2] Of the estimated 3–5 percent of cogeneration fueled by biomass, most is in the forest products industry, whose biomass wastes produce most of its electricity and process heat.

Cogeneration in refineries often burns waste fuels that would otherwise be uselessly flared. Similarly, much industrial cogeneration harnesses waste heat previously thrown away. Where extra fuel is burned to make electricity as well as heat, typically far less is burned than when making them separately. If cogeneration also produces cooling and other services, it can convert as much as 93 percent of fuel energy into useful work, both in industry and in buildings. Moreover, the natural gas that fuels most cogeneration is only about half as carbon-intensive as the coal-fired power-only generation it often displaces.[3]

Big hydroelectric dams and nuclear power are also carbon-free in operation. Thus in 2013, nearly half of the world’s electricity was produced with little or no carbon release: 8.4 percent by modern renewables [4], 10.2 percent by nuclear power (set to be overtaken by modern renewables in 2015), 15.5 percent by cogeneration [5], and 13.5 percent by big hydroelectric dams (excluding the 2.8 percent small hydro classified under modern renewables).

The other half came from power-only plants, burning mainly coal. Those plants cost more to build, and often more just to run, than their competitors, so their orders are fading, their operations are dwindling, and over decades, they’ll retire in favor of cleaner, cheaper substitutes—both micropower and efficient use.

WINNERS AND LOSERS

Far from recognizing that they’re being rapidly overtaken, many advocates of coal or nuclear power stations don’t even acknowledge micropower as an important competitor—even as it grabs their markets and destroys their sales. In 2009, a senior strategic planner for a major nuclear vendor told me micropower was trivial—having failed to find it in official databases of utility-owned central power stations, without understanding the difference. And even at minor market share, micropower can have major effects. The solar 4.7 percent of Germany’s 2013 generation destroyed the incumbent utilities’ business model and wiped a half-trillion Euros off their market cap. More

 

Latin America And Caribbean Region Expected To Install 9 GW Of Solar In 5 Years

That solar photovoltaic (PV) technology is poised to become a dominant energy generation technology throughout the world is of no surprise to most, but the sheer wealth of possibility being forecast throughout the middle and southern hemispheres begins to give an idea of just how prevalent the technology will be by the end of the decade.

Figures published by NPD Solarbuzz have so far predicted that several of the major Asia Pacific nations will account for 60% of solar PV demand in 2014, while being primary drivers of growth over the next several years, at the same time as the Middle East and Africa region currently has close to 12 GW of solar demand in the pipeline.

So it should really come as no surprise that NPD Solarbuzz’s recent figures show that the Latin America and Caribbean region is set to install 9 GW of solar PV over the next five years.

Latin America and Caribbean Five-Year Cumulative Demand Forecast by Project Status

“Solar PV is now starting to emerge as a preferred energy technology for Latin American and Caribbean countries,” said Michael Barker, senior analyst at NPD Solarbuzz. “The region has high electricity prices and it also benefits from strong solar irradiation, which makes it a good candidate for solar PV deployment. As a result, experienced global solar PV developers are seeing strong solar PV growth potential in the region.”

NPD Solarbuzz’s Emerging PV Markets Report: Latin America and Caribbean shows that the total PV project pipeline now exceeds 22 GW of projects across all stages of development — with 1 GW of projects already under construction, and another 5 GW of projects have received the appropriate approval to proceed.

The Latin America and Caribbean region was previously home to many small-scale and off-grid solar PV applications, however governments are now looking to solar PV to address large-scale utility power requrements — specifically in Brazil, Chile, and Mexico.

“Many countries across the LAC region have the potential to develop into major solar PV markets in the future,” added Barker. “While project pipelines vary by country, there is a strong contribution from early-stage developments that have yet to finalize supply deals or find end-users to purchase the generated electricity, which presents both risks and opportunities for industry players.”

A number of countries throughout the developing and second-world countries are turning to renewable energy technologies to develop strong, future-proof, and economically efficient energy generation. Such a trend is being backed by major manufacturing companies who are focusing their efforts on these regions, hoping to increase their own profits while fulfilling renewable energy demand. More

 

OAS Workshop Seeks to Improve Caribbean Sustainable Energy Projects

20 August 2014: A regional workshop organized by the Organization of American States (OAS) discussed how to improve donor interventions regarding sustainable energy projects in the Caribbean.

The workshop, titled 'Development of Sustainable Energy Projects: Experiences, Strategies and Implementation,' took place on 19 August 2014 in Saint Lucia. The event brought together major donors for Caribbean energy projects with country representatives to: examine current and planned sustainable energy projects; discuss local barriers to commercialization of sustainable energy; identify Caribbean country project priorities and gaps in current assistance; and look at ways to foster collaboration and complementarity between projects.

During the opening session, OAS consultant Christina Becker-Birck provided an overview of the 80+ energy initiatives in the region, amounting since 2004 to around US$129 million in technical assistance and grants, about US$108 million in loans and lines of credit, with at least US$100 million pending and planned.

Philipp Blechinger, Reiner Lemoine Institut, outlined the results of a survey on barriers to the development of renewable energy technologies for power generation on Caribbean island States. Carolina Peña, OAS Sustainable Development Department (DSD), outlined OAS energy interventions in the region.

During a roundtable discussion on learning from success stories and failures, the Organization of Eastern Caribbean States (OECS) detailed its Sustainable Energy Programme on technical assistance and energy labeling. The Carbon War Room discussed its 10 Island Challenge to catalyze private investment and produce a Ten Island Renewable Roadmap/Blueprint. The Caribbean Development Bank outlined the proposed Sustainable Energy for the Eastern Caribbean (SEEC) and Geothermal Drill Risk Facility projects. The EU provided an overview of its support for energy projects in the region, and the Clean Energy Solutions Center (CESC) outlined its technical support.

The workshop was organized by the OAS DSD in the framework of the Sustainable Energy Capacity Building Initiative (SECBI) of the Energy and Climate Change Partnership of the Americas (ECPA). More

 

 

Geneva beckons Rolph Payet – Seychelles environment and energy minister lands top UN post

(Seychelles News Agency) – Seychelles Minister for Environment and Energy, Professor Rolph Payet has been appointed the new Executive Secretary of the Basel, Rotterdam and Stockholm Conventions by the United Nations Secretary General Ban Ki-moon.


Announcing the appointment in a press statement this afternoon, State House said Payet will contribute to the implementation of the mandates and missions of those three conventions including the formulation of their overall strategies and policies.

“He will also act in an advisory capacity to the UNEP Executive Director and the Presidents and the Bureaus of the conventions as well as their subsidiary bodies,” reads the statement.

The environment minister’s role will also include coordinating the preparation of the meetings and implement the substantive work programme of the conventions, including providing assistance to parties, in particular developing country parties and those with economies in transition.

He will also lead the development of strategies and policies and undertake fund raising and donor reporting, the strategic interagency work of the Secretariat in close coordination with UNEP and other Multilateral Environmental Agreements.

Responding to SNA in an email following this afternoon’s announcement, Payet said he is deeply honoured of such confidence in him to lead the conventions.

“I am equally happy that I have been chosen, coming from a Small Island Developing States, during this year dedicated to SIDS. My appointment represents the hard work of President James Michel and the government of Seychelles to continuously push so that Seychelles remains a leader in environment on the international scene. I will miss my work and even though I will be away from Seychelles I will continue to work for the benefit of my country,” he said.

Payet will take up his new post in October this year and he will be based in Geneva.

He will replace Kerstin Stendahl from Finland, who has been serving as interim since April this year following the retirement of US national Jim Willis as the Executive Director of the Basel, Rotterdam and Stockholm Conventions.

The Basel, Rotterdam and Stockholm Conventions.

The first convention is aimed at protecting human health and the environment from the effects of hazardous wastes.

This convention was adopted in 1989 and it entered into force in 1992.

The Rotterdam Convention, which entered into force ten years ago, also deals with the disposal of waste especially pesticides and industrial chemicals.

The third one, the Stockholm Convention which also came into force 10 years ago is a global treaty to protect human health and the environment from chemicals that remain intact in the environment for long periods. The latter or POPs is said to have serious consequences on humans and wildlife.

Seychelles president hails Payet’s appointment as “a memorable achievement.”

Seychelles President James Michel has hailed Payet’s appointment which he describes as “a memorable achievement.”

In a congratulatory message sent to the minister, Michel has wished him success in his new role and expressed his full cooperation and support in his tasks and challenges that lie ahead.

“Your appointment to this high office is a well-deserved recognition of your scientific and academic capabilities and crowns a professional life devoted to the environment and to the cause of Small Island Developing States. It also brings immense pride and satisfaction to Seychelles,” said Michel in the statement.

Michel said he would announce a new minister for environment and energy at a later date.

Payet and the environment cause

The 46 year old leaves vacant the portfolio of Environment and Energy which he assumed in March 2012.

Before that he was Special Advisor to the president on numerous environmental matters including sustainable development, biodiversity, climate change, energy and international environment policy

Payet who holds a Phd in Environmental Science from Linnaeus University of which is now an Associate Professor, is described as a leader in the protection of the environment on the international scene.

He has been at the forefront of several international discussions on issues affecting small islands developing states such as climate change, sustainable development, biodiversity and other environmental issues.

In recent years, he has been invited to participate or as a guest speaker on numerous international conference committees and panels including the United Nations General Assembly.

He has also contributed widely towards several publications on environmental issues.

Payet’s work in advancing environment, islands, ocean, biodiversity and climate issues at the global level has earned him numerous international awards and recognition.

In January 2007, he was recognised as a Young Global Leader by the World Economic Forum and in November that same year he shared in the IPCC Nobel Peace Prize as one of the authors of the Intergovernmental Panel on Climate Change (IPCC).

Locally, Payet has also helped to set up Seychelles first university, the University of Seychelles which was set up in September 2009. He is currently the pro chancellor of the university. More

 

 

Why Morgan Stanley Is Betting That Tesla Will Kill Your Power Company

There’s a reason that power companies are attacking rooftop solar across the nation: They see those silicon panels as nothing short of an existential threat.

As the cost of solar continues to fall, and more people opt for the distributed power offered by solar, there will be less demand for big power plants and the utilities that operate them. And one major investment giant has now released three separate reports arguing that Tesla Motors is going to help kill power companies off altogether.

Earlier this year, Morgan Stanley stirred up controversy when it released a report that suggested that the increasing viability of consumer solar, paired with better battery technology—that allows people to generate, and store, their own electricity—could send the decades-old utility industry into a death spiral. Then, the firm released another one, further emphasizing the points made in the first. Now, it’s tripling down on the idea with yet another report that spells out how Tesla and home solar will “disrupt” utilities.

“There may be a ‘tipping point’ that causes customers to seek an off-grid approach,” the March report argued. ”The more customers move to solar, the [more the] remaining utility customers’ bills will rise, creating even further ‘headroom’ for Tesla’s off-grid approach.”

Yes, Tesla Motors, everyone’s favorite electric car company. And that’s where the controversy comes in. Morgan Stanley breathlessly pegged Tesla as “the most important auto company in the world” in part because its electric car business was pushing it to develop better energy storage technology, and then mass manufacture said batteries. That’s exactly what Tesla CEO Elon Musk and company will be doing at its forthcoming Gigafactory, which it is building in the Southwest with Panasonic.

With the new manufacturing facility, Morgan Stanley reasons, Tesla stands to double its business (adding another $2 billion in revenue) by selling the lithium ion batteries it typically ships under the hood of a Model S to homeowners with solar panels, too. If consumers can store energy the panels generate during the day for use at night, it would ostensibly render the need for utilities to pipe in faraway power—and their electric bills—obsolete.

Energy storage, when combined with solar power, could disrupt utilities in the US and Europe to the extent customers move to an off-grid approach

Musk is also the chairman of Solar City, a company that leases rooftop solar setups to homeowners, and one that would benefit from the battery tech. Now, the shadiness here is that Morgan Stanley released the report trumpeting Tesla’s crossover energy storage potential—causing Tesla’s stock to rise—right before it underwrote a fundraising round for… Tesla.

So the whole thing is very incestuous, and it does render some of the projections a little suspect, but the bottom line here is that private solar and battery companies are viable enough that they’ve attracted the backing of one of the world’s biggest financial services companies—over the multi-trillion dollar utility industry.

“Energy storage, when combined with solar power, could disrupt utilities in the US and Europe to the extent customers move to an off-grid approach,” Morgan Stanley writes in its third report this year emphasizing the prospect. ”We believe Tesla’s energy storage product will be economically viable in parts of the US and Europe, and at a fraction of the cost of current storage alternatives.”

In other words, Morgan Stanley has Tesla’s back, big time. It’s betting that Musk is going to make the best solar energy batteries money can buy.

Ironically enough, however, even staunch clean energy advocates are wary about Morgan Stanley’s finding that utilities are going the way of the buffalo. “Barring extraordinary circumstances, the economic case for grid defection is still very weak for US consumers,” Stephen Lacey, the senior editor of Greentech Media, wrote of the Morgan Stanley report. ”The electricity system offers valuable backup in case a customer over- or under-invests in an on-site system.”

It’s more likely, then, that people will still buy home solar—by the tens of millions, Greentech suggests—but not unplug from the grid entirely. Utilities will be diminished, but not broken. This process is underway in Europe already, where countries like Germany have powerful incentives for consumers to switch to solar.

Last year, the Economist called the sharp decline of European utilities “startling,” noting that together, they lost half their value—$600 billion—in just five years. Here in the states, utilities and conservative politicians are fighting solar tax credits to prevent the same thing from happening. For the most part, the utilities are losing.

All of this is, ideally, what needs to happen. Climate change is accelerating, and we need to transition away from those massive, fossil fuel-slurping power plants. Distributed solar is an increasingly powerful force behind that weaning process.

And even if some of Morgan Stanley’s calculations are shaky, the trends that Tesla is helping to amplify are anything but—clean, personalized (or community-wide) power will play a major role in shaping our energy future.

The fact that a greed-driven titan of finance like Morgan Stanley recognizes as much, and is willing to triple down on its bets on battery storage and distributed power, is a promising sign that the energy revolution is underway. More

 

Energy Efficiency Simply Makes Sense

What simple tool offers the entire world an extended energy supply, increased energy security, lower carbon emissions, cleaner air and extra time to mitigate climate change? Energy efficiency. What’s more, higher efficiency can avoid infrastructure investment, cut energy bills, improve health, increase competitiveness and enhance consumer welfare — all while more than paying for itself.

Maria van der Hoeven - IEA

The challenge is getting governments, industry and citizens to take the first steps towards making these savings in energy and money.

The International Energy Agency (IEA) has long spearheaded a global move toward improved energy efficiency policy and technology in buildings, appliances, transport and industry, as well as end-use applications such as lighting. That’s because the core of our mandate is energy security — the uninterrupted availability of energy at an affordable price. Greater efficiency is a principal way to strengthen that security: it reduces reliance on energy supply, especially imports, for economic growth; mitigates threats to energy security from climate change; and lessens the global economy’s exposure to disruptions in fossil fuel supply.

In short, energy efficiency makes sense.

In 2006, the IEA presented to the Group of Eight leading industrialized nations its 25 energy efficiency recommendations, which identify best practice and policy approaches to realize the full potential of energy efficiency for our member countries. Every two years, the Agency reports on the gains made by member countries, and today we are working with a growing number of international organizations, including the European Bank for Reconstruction and Development, the Asian Development Bank and the German sustainable development cooperation services provider GIZ.

The opportunities of this “invisible fuel” are many and rich. More than half of the potential savings in industry and a whopping 80 percent of opportunities in the buildings sector worldwide remain untouched. The 25 recommendations, if adopted fully by all 28 IEA members, would save $1 trillion in annual energy costs as well as deliver incalculable security benefits in terms of energy supply and environmental protection.

Achieving even a small fraction of those gains does not require new technological breakthroughs or ruinous capital outlays: the know-how exists, and the investments generate positive returns in fuel savings and increased economic growth. What is required is foresight, patience, changed habits and the removal of the barriers to implementation of measures that are economically viable. For instance, as the World Energy Outlook 2012 demonstrates, investing less than $12 trillion in more energy-efficient technologies would not only quickly pay for itself through reduced energy costs, it would also increase cumulative economic output to 2035 by $18 trillion worldwide.

While current efforts come nowhere close to realizing the full benefits that efficiency offers, some countries are taking big steps forward. Members of the European Union have pledged to cut energy demand by 20 percent by 2020, while Japan plans to trim its electricity consumption 10 percent by 2030. China is committed to reducing the amount of energy needed for each unit of gross domestic product by 16 percent in the next two years. The United States has leaped to the forefront in transportation efficiency standards with new fuel economy rules that could more than double vehicle fuel consumption.

Such transitions entail challenges for policy, and experience shows that government and the private sector must work together to achieve the sustainability goals that societies demand, learning what works and what does not, and following the right path to optimal deployment of technology. Looking forward, energy efficiency will play a vital role in the transition to the secure and sustainable energy future that we all seek. The most secure energy is the barrel or megawatt we never have to use.

Maria van der Hoeven is the Executive Director of the International Energy Agency, an autonomous organization which works to ensure reliable, affordable and clean energy for its 28 member countries and beyond. This commentary appeared first this month in IEA Energy, the Agency’s journal.

 

How Saudi Arabia Helped Isis Take Over the North of Iraq

How far is Saudi Arabia complicit in the Isis takeover of much of northern Iraq, and is it stoking an escalating Sunni-Shia conflict across the Islamic world?

Some time before 9/11, Prince Bandar bin Sultan, once the powerful Saudi ambassador in Washington and head of Saudi intelligence until a few months ago, had a revealing and ominous conversation with the head of the British Secret Intelligence Service, MI6, Sir Richard Dearlove. Prince Bandar told him: “The time is not far off in the Middle East, Richard, when it will be literally ‘God help the Shia’. More than a billion Sunnis have simply had enough of them.”

The fatal moment predicted by Prince Bandar may now have come for many Shia, with Saudi Arabia playing an important role in bringing it about by supporting the anti-Shia jihad in Iraq and Syria. Since the capture of Mosul by the Islamic State of Iraq and the Levant (Isis) on 10 June, Shia women and children have been killed in villages south of Kirkuk, and Shia air force cadets machine-gunned and buried in mass graves near Tikrit.

In Mosul, Shia shrines and mosques have been blown up, and in the nearby Shia Turkoman city of Tal Afar 4,000 houses have been taken over by Isis fighters as “spoils of war”. Simply to be identified as Shia or a related sect, such as the Alawites, in Sunni rebel-held parts of Iraq and Syria today, has become as dangerous as being a Jew was in Nazi-controlled parts of Europe in 1940.

There is no doubt about the accuracy of the quote by Prince Bandar, secretary-general of the Saudi National Security Council from 2005 and head of General Intelligence between 2012 and 2014, the crucial two years when al-Qa’ida-type jihadis took over the Sunni-armed opposition in Iraq and Syria. Speaking at the Royal United Services Institute last week, Dearlove, who headed MI6 from 1999 to 2004, emphasised the significance of Prince Bandar’s words, saying that they constituted “a chilling comment that I remember very well indeed”.

He does not doubt that substantial and sustained funding from private donors in Saudi Arabia and Qatar, to which the authorities may have turned a blind eye, has played a central role in the Isis surge into Sunni areas of Iraq. He said: “Such things simply do not happen spontaneously.” This sounds realistic since the tribal and communal leadership in Sunni majority provinces is much beholden to Saudi and Gulf paymasters, and would be unlikely to cooperate with Isis without their consent.

Dearlove’s explosive revelation about the prediction of a day of reckoning for the Shia by Prince Bandar, and the former head of MI6′s view that Saudi Arabia is involved in the Isis-led Sunni rebellion, has attracted surprisingly little attention. Coverage of Dearlove’s speech focused instead on his main theme that the threat from Isis to the West is being exaggerated because, unlike Bin Laden’s al-Qa’ida, it is absorbed in a new conflict that “is essentially Muslim on Muslim”. Unfortunately, Christians in areas captured by Isis are finding this is not true, as their churches are desecrated and they are forced to flee. A difference between al-Qa’ida and Isis is that the latter is much better organised; if it does attack Western targets the results are likely to be devastating.

The forecast by Prince Bandar, who was at the heart of Saudi security policy for more than three decades, that the 100 million Shia in the Middle East face disaster at the hands of the Sunni majority, will convince many Shia that they are the victims of a Saudi-led campaign to crush them. “The Shia in general are getting very frightened after what happened in northern Iraq,” said an Iraqi commentator, who did not want his name published. Shia see the threat as not only military but stemming from the expanded influence over mainstream Sunni Islam of Wahhabism, the puritanical and intolerant version of Islam espoused by Saudi Arabia that condemns Shia and other Islamic sects as non-Muslim apostates and polytheists.

Dearlove says that he has no inside knowledge obtained since he retired as head of MI6 10 years ago to become Master of Pembroke College in Cambridge. But, drawing on past experience, he sees Saudi strategic thinking as being shaped by two deep-seated beliefs or attitudes. First, they are convinced that there “can be no legitimate or admissible challenge to the Islamic purity of their Wahhabi credentials as guardians of Islam’s holiest shrines”. But, perhaps more significantly given the deepening Sunni-Shia confrontation, the Saudi belief that they possess a monopoly of Islamic truth leads them to be “deeply attracted towards any militancy which can effectively challenge Shia-dom”.

Western governments traditionally play down the connection between Saudi Arabia and its Wahhabist faith, on the one hand, and jihadism, whether of the variety espoused by Osama bin Laden and al-Qa’ida or by Abu Bakr al-Baghdadi’s Isis. There is nothing conspiratorial or secret about these links: 15 out of 19 of the 9/11 hijackers were Saudis, as was Bin Laden and most of the private donors who funded the operation.

The difference between al-Qa’ida and Isis can be overstated: when Bin Laden was killed by United States forces in 2011, al-Baghdadi released a statement eulogising him, and Isis pledged to launch 100 attacks in revenge for his death.

But there has always been a second theme to Saudi policy towards al-Qa’ida type jihadis, contradicting Prince Bandar’s approach and seeing jihadis as a mortal threat to the Kingdom. Dearlove illustrates this attitude by relating how, soon after 9/11, he visited the Saudi capital Riyadh with Tony Blair.

He remembers the then head of Saudi General Intelligence “literally shouting at me across his office: ’9/11 is a mere pinprick on the West. In the medium term, it is nothing more than a series of personal tragedies. What these terrorists want is to destroy the House of Saud and remake the Middle East.’” In the event, Saudi Arabia adopted both policies, encouraging the jihadis as a useful tool of Saudi anti-Shia influence abroad but suppressing them at home as a threat to the status quo. It is this dual policy that has fallen apart over the last year.

Saudi sympathy for anti-Shia “militancy” is identified in leaked US official documents. The then US Secretary of State Hillary Clinton wrote in December 2009 in a cable released by Wikileaks that “Saudi Arabia remains a critical financial support base for al-Qa’ida, the Taliban, LeT [Lashkar-e-Taiba in Pakistan] and other terrorist groups.” She said that, in so far as Saudi Arabia did act against al-Qa’ida, it was as a domestic threat and not because of its activities abroad. This policy may now be changing with the dismissal of Prince Bandar as head of intelligence this year. But the change is very recent, still ambivalent and may be too late: it was only last week that a Saudi prince said he would no longer fund a satellite television station notorious for its anti-Shia bias based in Egypt.

The problem for the Saudis is that their attempts since Bandar lost his job to create an anti-Maliki and anti-Assad Sunni constituency which is simultaneously against al-Qa’ida and its clones have failed.

By seeking to weaken Maliki and Assad in the interest of a more moderate Sunni faction, Saudi Arabia and its allies are in practice playing into the hands of Isis which is swiftly gaining full control of the Sunni opposition in Syria and Iraq. In Mosul, as happened previously in its Syrian capital Raqqa, potential critics and opponents are disarmed, forced to swear allegiance to the new caliphate and killed if they resist.

The West may have to pay a price for its alliance with Saudi Arabia and the Gulf monarchies, which have always found Sunni jihadism more attractive than democracy. A striking example of double standards by the western powers was the Saudi-backed suppression of peaceful democratic protests by the Shia majority in Bahrain in March 2011. Some 1,500 Saudi troops were sent across the causeway to the island kingdom as the demonstrations were ended with great brutality and Shia mosques and shrines were destroyed.

An alibi used by the US and Britain is that the Sunni al-Khalifa royal family in Bahrain is pursuing dialogue and reform. But this excuse looked thin last week as Bahrain expelled a top US diplomat, the assistant secretary of state for human rights Tom Malinowksi, for meeting leaders of the main Shia opposition party al-Wifaq. Mr Malinowski tweeted that the Bahrain government’s action was “not about me but about undermining dialogue”.

Western powers and their regional allies have largely escaped criticism for their role in reigniting the war in Iraq. Publicly and privately, they have blamed the Iraqi Prime Minister Nouri al-Maliki for persecuting and marginalising the Sunni minority, so provoking them into supporting the Isis-led revolt. There is much truth in this, but it is by no means the whole story. Maliki did enough to enrage the Sunni, partly because he wanted to frighten Shia voters into supporting him in the 30 April election by claiming to be the Shia community’s protector against Sunni counter-revolution.

But for all his gargantuan mistakes, Maliki’s failings are not the reason why the Iraqi state is disintegrating. What destabilised Iraq from 2011 on was the revolt of the Sunni in Syria and the takeover of that revolt by jihadis, who were often sponsored by donors in Saudi Arabia, Qatar, Kuwait and United Arab Emirates. Again and again Iraqi politicians warned that by not seeking to close down the civil war in Syria, Western leaders were making it inevitable that the conflict in Iraq would restart. “I guess they just didn’t believe us and were fixated on getting rid of [President Bashar al-] Assad,” said an Iraqi leader in Baghdad last week.

Of course, US and British politicians and diplomats would argue that they were in no position to bring an end to the Syrian conflict. But this is misleading. By insisting that peace negotiations must be about the departure of Assad from power, something that was never going to happen since Assad held most of the cities in the country and his troops were advancing, the US and Britain made sure the war would continue.

The chief beneficiary is Isis which over the last two weeks has been mopping up the last opposition to its rule in eastern Syria. The Kurds in the north and the official al-Qa’ida representative, Jabhat al-Nusra, are faltering under the impact of Isis forces high in morale and using tanks and artillery captured from the Iraqi army. It is also, without the rest of the world taking notice, taking over many of the Syrian oil wells that it did not already control.

Saudi Arabia has created a Frankenstein’s monster over which it is rapidly losing control. The same is true of its allies such as Turkey which has been a vital back-base for Isis and Jabhat al-Nusra by keeping the 510-mile-long Turkish-Syrian border open. As Kurdish-held border crossings fall to Isis, Turkey will find it has a new neighbour of extraordinary violence, and one deeply ungrateful for past favours from the Turkish intelligence service.

As for Saudi Arabia, it may come to regret its support for the Sunni revolts in Syria and Iraq as jihadi social media begins to speak of the House of Saud as its next target. It is the unnamed head of Saudi General Intelligence quoted by Dearlove after 9/11 who is turning out to have analysed the potential threat to Saudi Arabia correctly and not Prince Bandar, which may explain why the latter was sacked earlier this year.

Nor is this the only point on which Prince Bandar was dangerously mistaken. The rise of Isis is bad news for the Shia of Iraq but it is worse news for the Sunni whose leadership has been ceded to a pathologically bloodthirsty and intolerant movement, a sort of Islamic Khmer Rouge, which has no aim but war without end.

The Sunni caliphate rules a large, impoverished and isolated area from which people are fleeing. Several million Sunni in and around Baghdad are vulnerable to attack and 255 Sunni prisoners have already been massacred. In the long term, Isis cannot win, but its mix of fanaticism and good organisation makes it difficult to dislodge.

“God help the Shia,” said Prince Bandar, but, partly thanks to him, the shattered Sunni communities of Iraq and Syria may need divine help even more than the Shia. More