VZCZCXYZ0000
RR RUEHWEB

DE RUEHWN #0623/01 2811405
ZNR UUUUU ZZH
R 081405Z OCT 09
FM AMEMBASSY BRIDGETOWN
TO RUEHC/SECSTATE WASHDC 7841
INFO RUEHDG/AMEMBASSY SANTO DOMINGO 5976
RHMFISS/HQ USSOUTHCOM J1 MIAMI FL
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEAIIA/CIA WASHDC

UNCLAS BRIDGETOWN 000623 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR S/CIEA, EEB, AND WHA/CAR 
 
E.O. 12958: N/A 
TAGS: OECS ENRG EINV ETRD ECON SENV XL
SUBJECT: GRENADA EAGER TO DEVELOP ALTERNATIVE ENERGY -- BUT 
IS IT READY? 
 
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SUMMARY 
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¶1. (U) Poloff met with Ministry of Energy and Environment 
Officials, senior officials from GRENLEC, the American-owned 
private utility company in Grenada, and the President of 
Grensol, a solar power provider, to assess the state of play 
of alternative energy development in Grenada.  The consensus 
among our interlocutors was that Grenada has tremendous 
potential geothermal, wind, and solar power resources and the 
island nation could be powered entirely by green energy 
within 15 years.  End summary 
 
--------------------------------------------- ----- 
GRENLEC Cautiously Optimistic Regarding Geothermal 
--------------------------------------------- ----- 
 
¶2. (U) Poloff met with senior officials of GRENLEC, the local 
energy producer and distributor, and with senior officials 
from WRB, the Tampa, Florida company that owns both GRENLEC 
and DOMLEC in Dominica.  WRB execs claimed they are seriously 
looking at developing geothermal sites in the country. 
Grenada has ample geothermal resources, they noted, but the 
temperatures at the geothermal sites are below optimal for 
production using traditional geothermal extraction and 
production technology.  Consequently, GRENLEC is in 
negotiations with several geothermal power producers in the 
US that are developing "cool" geothermal technology -- 
technology that could make geothermal power production at 
lower temperatures a reality within ten years. 
 
¶3. (U) WRB, GRENLEC's parent company, is looking for joint 
venture partners to share both the relatively high upfront 
costs of drilling exploratory shafts, as well as eventual 
development of a geothermal power plant.  They believe that 
Grenada could easily meet 100 percent of its energy needs 
from the geothermal power if the potential and the technology 
intersect properly.  Installed electricity capacity is 30 MW 
in Grenada, 1 MW in Carriacou, and 150 KW in Petite 
Martinique.  Domestic consumers use 140 kwh, with St. 
George's University being the biggest single consumer, taking 
up to 2.5 mw, 10 percent of peak load.  Company executives 
feel that they have adequate supplies of electricity.  Power 
is 98 percent generated through diesel fuel, procured mostly 
under the Petrocaribe arrangement with Venezuela. 
 
¶4. (U) Environment Minister Michael Church and Minister of 
Public Works Joseph Gilbert likewise expressed enthusiasm for 
geothermal potential and affirmed their desire to see GRENLEC 
undertake development of the rich geothermal potential.  The 
Geothermal sites are located in the far north of the island, 
so new transmission grids would have to be installed, but 
GRENLEC officials said that was a minor problem in developing 
the site.  The real problem was finding a partner with the 
resources and upfront capital to invest.  According to Church 
and Gilbert, Prime Minister Tillman Thomas is particularly 
keen on developing geothermal sites as the sites sit in his 
and Gilbert's constituencies. 
 
----------------------------------------- 
Wind Power Potential Still Being Explored 
----------------------------------------- 
 
¶5. (U)  GRENLEC and the government also expressed interest in 
taking advantage of Grenada's abundant wind energy potential. 
 They are currently looking at erecting wind farms, and had 
almost broken ground on a wind farm in NE Grenada based on 
data collected on wind capacity over the last two years. 
However, reports some Grenadians culled from the internet 
that wind farms cause cancer, miscarriages in animals, and 
sterility in humans, as well as killing birds and bats, 
generated widespread anxiety and confounded those plans. 
(Note:  Similar fears postponed a potential wind farm project 
in Barbados.  End note.)  GRENLEC is now looking at 
developing a site on government-owned land on the neighboring 
island of Carriacou and has submitted a formal proposal. 
GRENLEC would like to generate 10 percent of their power from 
renewable energy from the wind farm by 2013 and 20 percent by 
¶2017. 
 
-------------------------------------------- 
Solar -- Two Percent of Power, More to Come? 
-------------------------------------------- 
 
¶6. (U) Grensol, a local solar power company, has entered into 
 
a power purchase agreement with GRENLEC that is capped at 1 
percent of grid capacity.  Grensol has installed 25 systems, 
mostly in residential buildings, and is looking at installing 
systems on hotels and government buildings.  They are also 
looking at installing solar power at St. George's University 
and at the local hospital.  A number of firms in Grenada, 
including one of the major hotels, are looking at installing 
solar power systems.  Grensol sources their solar panels from 
Evergreen Company, based in Massachusetts, and their 
converters from a German supplier.  Poloff briefed the 
company CEO, Dale Burhardt, who is also a St. George's 
Neurology Professor, on possible Ex-Im and OPIC financing 
options for renewable energy projects.  They would like to 
greatly expand their operations in Grenada, with or without 
GRENLEC's cooperation.  Grensol would like to sell solar 
systems that are off grid as well as connected to the grid. 
Grensol's president was skeptical that geothermal power will 
take off, noting the high cost of development and questioning 
whether GRENLEC is really committed to developing alternative 
power. 
 
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Comment 
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¶7. (SBU) All our interlocutors believe that alternative 
energy resources will be developed in Grenada over the next 
few years and that within ten years Grenada could be close to 
100 percent green energy.  At this stage, though, given high 
start-up costs and small markets, much of the buzz for 
renewable energy in Grenada appears to be at a rather 
abstract level.  This is particularly true for geothermal, 
which would require substantially more money, research, and 
technological advancement, but also applies to wind power, 
where "eyesore" and environmental concerns continue to slow 
development plans throughout the eastern Caribbean.  Solar 
has the most immediate potential, especially on small-scale 
projects, but will likely continue to face opposition from 
electrical utilities that have trouble staying in the black 
in these small markets. 
HARDT