BARBADOS RELEASES DRAFT ENERGY POLICY

UNCLAS BRIDGETOWN 000178

SIPDIS

SIPDIS

DEPARTMENT FOR WHA/CAR, WHA/EPSC (F. CORNEILLE) AND
EEB/ESC/IEC (M.MCMANUS)
DEPARTMENT PASS TO DEPARTMENT OF ENERGY

E.O. 12958: N/A
TAGS: ENRG EAGR ETRO EAID EPET EINV PGOV PREL BB XL
SUBJECT: BARBADOS RELEASES DRAFT ENERGY POLICY

REF: 06 BRIDGETOWN 1852

SUMMARY
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1. The Ministry of Energy and the Environment of the
Government of Barbados (GOB) recently unveiled its draft
National Energy Policy and invited a wide range of
stakeholders to provide comments and suggestions. The
proposed policy's priorities include energy conservation,
alternative energy development, and drilling. In light of
the muted response to the new policy, it will likely be
adopted without controversy. Post will transmit via email a
copy of the draft National Energy Policy to the Department.
End Summary.

THE NEW POLICY
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2. Elizabeth Thompson, the GOB Minister of Energy and the
Environment, unveiled the draft Barbados National Energy
Policy on January 11. The 64-page document addresses the
following energy challenges and priorities: fuel prices,
dependence on fossil fuels, development of a renewable energy
sector, establishment of an appropriate regulatory framework,
research and development, environment protection, and
investment promotion. The draft policy announced
long-rumored plans for expanding onshore and offshore
drilling for natural gas and oil. The GOB also plans to
conclude a deal with Trinidad and Tobago for future natural
gas supplies. One noteworthy feature of the draft policy is
the inclusion of specific target dates by which certain
projects and policy goals are to be implemented. Once the
public review process is completed, it will be submitted for
another round of cabinet and parliamentary reviews.

THE NON-DEBATE
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3. The new draft policy includes nothing controversial and
spurred little debate in the parliament. Some members of
parliament encouraged the government to devote more attention
to developing the renewable energy sector, others suggested
the plan lacked sufficient focus on energy conservation. In
a pre-election season, where the opposition Democratic Labour
Party is looking for opportunities to pounce on the Barbados
Labour Party government, the draft energy policy's
anti-climactic debut shows that this draft energy policy,
which essentially amounts to a "motherhood and apple pie"
list of proposals, will likely face smooth passage when it
comes to parliament for a final vote.

COMMENT
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4. The GOB's draft National Energy Policy includes the right
mix of proposals on alternative energy, conservation, as well
as offshore and onshore drilling. Barbados' energy
consumption has been steadily rising with increased tourism,
construction and vehicle usage. Actual implementation of the
plan, however, is bound to raise more debate, since most of
the envisioned projects come with a hefty price tag.
Barbados does not have the resources, public or private, to
undertake large-scale energy projects. As the country moves
forward with the new energy policy, the United States is well
positioned to play a role, especially in alternative and
renewable energy projects.
OURISMAN