VZCZCXRO2678
PP RUEHGR
DE RUEHWN #0533/01 0861238
ZNR UUUUU ZZH
P 271238Z MAR 06
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC PRIORITY 2173
INFO RUCNCOM/EC CARICOM COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 03 BRIDGETOWN 000533 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
OES/PCI FOR LYNN LEWIS 
WHA/CAR FOR BOB COLLINS 
EB/ESC/IEC/EPC FOR MATT MCMANUS 
WHA/EPSC FOR FAITH CORNEILLE 
 
E.O. 12958: N/A 
TAGS: SENS SOCI EAID EPET TRGY ENRG XL CU VE
SUBJECT: EASTERN CARIBBEAN ALTERNATIVE ENERGY POSSIBILITIES 
 
REF: A. SECSTATE 36153 
     ¶B. BRIDGETOWN 530 
     ¶C. BRIDGETOWN 178 
     ¶D. 05 BRIDGETOWN 2377 
 
¶1.  (U) This message is in response to the action request in 
Ref A.  See contact list in paragraph 9. 
 
¶2.  (SBU) Summary:  The Eastern Caribbean is a land of missed 
opportunities for alternative energy.  High oil prices, 
however, have recently brought the issue to the forefront. 
This is a very timely initiative, given Venezuela's 
PetroCaribe energy deal and new Cuban lightbulb aid (Ref B). 
Post looks forward to actively cooperating with the 
Department to encourage greater use of alternative energy in 
the region.  Paragraph 9 provides a list of potential 
contacts from the Barbados public and private sectors for 
engagement on sustainable alternative energy issues.  End 
Summary. 
 
¶3.  (U) Despite the potential to use wind farms, water power, 
geothermal power, Ocean Thermal Energy Conversion (OTEC), and 
sugar cane ethanol for energy, the Eastern Caribbean 
countries rely almost exclusively on diesel fuel from 
Trinidad to generate electricity.  (Note:  Dominica, where 
hydroelectric stations provide around forty percent of the 
island's energy, is a notable exception.  End Note.) 
Sustained high oil prices, however, may make renewable energy 
alternatives more attractive. 
 
¶4.  (SBU) Post has been actively engaged with the 
alternative-energy community in the Eastern Caribbean and 
wholeheartedly welcomes this USG initiative.  Through his 
PetroCaribe plan offering Caribbean countries soft loans to 
buy Venezuelan oil, Venezuelan President Hugo Chavez has cast 
himself as the region's savior, while castigating the USG and 
U.S. energy companies as greedy imperialists (Ref D).  Cuba 
has also recently pledged to supply energy-efficient 
lightbulbs to Antigua, Grenada, and St. Vincent (Ref B).  For 
these reasons, a USG alternative energy initiative as part of 
the U.N. Commission on Sustainable Development could 
simultaneously help the environment, improve our standing in 
the region, and attract support and funding from U.S. energy 
companies. 
 
------------------------------ 
Regional Efforts and Obstacles 
------------------------------ 
 
¶5.  (SBU)  Most Eastern Caribbean governments are not very 
environmentally sensitive and have not even implemented basic 
environmental strategies such as recycling and vehicle 
emissions standards.  High petroleum prices, however, have 
suddenly pushed the issue of alternative energy to the top of 
government agendas. 
 
¶6.  (U) Barbados Prime Minister Owen Arthur devoted a 
significant portion of his January budget speech (the Eastern 
Caribbean version of a "State of the Union" address) to 
alternate energy incentives (Ref C).  He pledged to lower 
import duties on energy-saving lightbulbs and construction 
materials and also promised to make tax deductible the cost 
of a home energy efficiency audit.  In addition, he pledged 
to spend US$150 million to shift the highly inefficient sugar 
industry to the production of ethanol and fuel cane.  Other 
commentators on the sugar industry in Barbados have suggested 
ramping up rum production and creating more high-value items 
such as sugar cane brandy. 
 
¶7.  (U) A U.S. energy company that has the monopoly on 
electricity production in Dominica and Grenada generates 
around forty percent of Dominica's electricity from the 
island's plentiful running water.  St. Vincent produces a 
small amount of hydroelectric power as well.  In addition, 
St. Lucia, Dominica, and St. Kitts are cooperating with a 
Global Environmental Fund-financed study looking into the 
feasibility of geothermal energy on the islands.  The French 
government and the Organization of American States are also 
supporting this geothermal project. 
 
¶8.  (U) Officials in Dominica have said they would like to 
export electricity to the neighboring islands of Martinique 
and Guadeloupe.  General Electric (GE) has sent technical 
experts and salespersons to several of the islands to pitch 
GE's alternative energy and water treatment products.  To 
help stimulate discussion of alternative energy, Post 
recently sponsored a trip by the head of the American 
 
BRIDGETOWN 00000533  002 OF 003 
 
 
Hydrogen Association, Roy McAlister, to give the keynote 
address at the annual Barbados Sci/Tech Green Expo. 
 
-------- 
Contacts 
-------- 
 
¶9.  (U) In accordance with the action request in reftel, Post 
recommends the following contacts for participation in the 
Department's initiative: 
 
Government: 
 
Elizabeth Thompson-McDowald 
Minister of Energy and the Environment 
Government of Barbados 
Tel:  246-467-5700 
 
Lionel Nurse 
Permanent Secretary 
Ministry of Energy and the Environment 
Government of Barbados 
Tel:  246-467-5700 
 
William Hinds 
Ministry of Energy and the Environment 
Government of Barbados 
Tel:  246-467-5700 
Email:  energydiv@sunbeach.net 
 
Academia: 
 
Leonard Nurse 
Senior Lecturer 
Center for Resource Management and Environmental Studies 
(CERMES) 
University of the West Indies 
Cave Hill Campus, Barbados 
Tel:  246-417-4344 
Email:  leonard.nurse@uwichill.edu.bb 
 
Leo Moseley 
Deputy Principal 
University of the West Indies 
Cave Hill Campus, Barbados 
Email:  lmoseley@uwichill.edu.bb 
 
NGO: 
 
Dr. Hugh Sealy 
Chairman 
National Commission for Sustainable Development 
Barbados 
Email:  HSealy@newwaterinc.com 
 
Private Sector: 
 
Rawleston Moore 
Private Consultant 
Barbados 
Email:  moorerawleston@caribsurf.com 
 
Vincent McLean 
Managing Director 
Aqua Sol Components 
Barbados 
Tel:  246-428-0255 
 
James Husbands 
Managing Director 
Solar Dynamics Ltd. 
Barbados 
Tel:  246-425-1540 
Alternate Tel:  246-425-3264 
 
¶10.  (SBU) Comment:  Venezuela's PetroCaribe initiative has 
grabbed most of the energy headlines, and Venezuelan 
President Hugo Chavez has cast himself as the only political 
leader who cares about the high energy costs these small 
islands are facing.  Cuba's recent entry into the energy-aid 
game as a lightbulb supplier ups the ante.  The U.S. cannot 
match Chavez's offer of concessionary oil financing, but we 
could help promote alternative energy and help connect 
leading alternative energy companies in the U.S. with local 
electric companies.  These partnerships could well bear fruit 
and increase U.S. influence in the region.  U.S.-based energy 
companies in the Eastern Caribbean, such as ChevronTexaco and 
 
BRIDGETOWN 00000533  003 OF 003 
 
 
ExxonMobil, would likely support this program to counter 
Chavez.  End Comment. 
 
KRAMER