Natural Resources Forum 31 (2007) 162– 165

Viewpoints
Blackwell Publishing Ltd

The Natural Resources Forum is running a special series related to the themes for the United Nations Commission on
Sustainable Development in its 2006/2007 cycle. The Viewpoints in this issue will focus on the situation of small island
developing States (SIDS) in relation to renewable energy.

Experts address the question:

“Given its relatively high cost, is renewable energy the answer for SIDS?”

The moot argument regarding higher cost of renewable
energy relative to the cost of fossil options seems to be
losing its contentious edge as advancing technology and
global petroleum pricing issues enhance the competitiveness
of renewables. The cost of renewables cannot be measured
truthfully by monetized values only (which distort sound
decision-making for sustainability), emergent negative and
positive externalities must also be considered. In reality,
accounting methods used to calculate the cost of entrenched
conventional fossil fuels do not include its externalities or
the full lifecycle of the fuel, thereby creating a flawed
comparison.
Advocacy for renewable energy use in SIDS emerges
from the need to optimise indigenous energy options to
move towards full energy security, implementing the
imperative for global competitiveness and achieving rapid
social and economic development in spite of uncontrollable
global fuel prices.
With few exceptions, SIDS from the Caribbean to the
Pacific are predominantly energy (petroleum) importers and
energy insecure. From Jamaica (91% fossil fuel imports)
to the French Overseas Departments (45% fossil fuel imports)
the cost for not using indigenous renewable energy is
reduced price competitiveness in the face of uncertain and
rising oil and gas prices. The hope for SIDS improving
energy security can only be achieved by utilising localized
wind, geothermal and biomass options, proven efficient for
industrial, commercial and domestic demands. Solar and
hydro are also critical resources. Energy security provided
by renewables is a ‘priceless’ hedge against fluctuating oil
and gas prices for economically vulnerable states.
Attaining 5–7 cents/kWh for power generation using
fossil fuels is a long standing fantasy of SIDS where real
(fossil fuel) electricity prices are 20–35 cents/kWh. The
fact is green funding, third party financing and other
financial mechanisms for renewables should be considered
© 2007 The Authors. Journal compilation © 2007 United Nations.
Published by Blackwell Publishing Ltd., 9600 Garsington Road, Oxford, OX4 2DQ, UK and 350 Main Street, Malden MA 02148, USA.
as equitable and valid a commercial option as the subsidy
to the Canadian oil and gas industry (over CDN$4 billion)
or the annual subsidies and other external costs related to
the gasoline lifecycle in the USA (over US$5 trillion). In
this context Jamaica’s 20.7 MW wind farm which receives
a grant of US$7 million to achieve 5.6 cents/kWh plus an
estimated income of US$3.1 million between 2004 and
2012 for CERs, is competitive on equitable terms with a
fossil option.
Biomass and specifically the options for fuel cane and
bagasse cogeneration to produce bioethanol will be critical
for improving the US$300 million cane industry in
CARICOM, as well as saving 125,000 jobs. The commercial
viability and economic attractiveness of ethanol is rapidly
increasing in SIDS such as Jamaica which already produces
40 million gallons and is expecting to produce another 60
million gallons in 2008 from agro-industry. Prices are
trending upwards from US$85 cents/gal in Brazil to
US$1.9/gal in USA and US$2.8/gal in Hawaii (which
would be cost competitive with production incentives, and
tax credits of about 4 cents/gal.)
Renewables using clean efficient technologies are
sustainable, commercially viable solutions. The debate is
ended and it is about time.
Pura Vida! (The pure life)
David Barrett
Energy and Environment Specialist
Kingston, Jamaica
Renewable energy is the lowest cost, long-term solution to
providing energy for sustainable development in Pacific SIDS.
There is an abundance of solar energy in the Pacific
region — used for water heating, crop drying and processing.
 Viewpoints / Natural Resources Forum 31 (2007) 162–165
The use of solar PV to provide electricity in rural areas and
remote islands with low load densities has been successful,
provided the right support mechanisms ensuring economic
and technical sustainability are in place.
The effectiveness of cleaner alternative energy sources
such as biofuel from sugarcane, coconuts and other
biomass products has been successfully demonstrated in
relation to fossil fuels. Hydropower resources for electricity
production are extensively used and developed in Fiji,
Papua New Guinea, Solomon Islands, Samoa and Vanuatu.
Nearly all Pacific SIDS have adopted strategies to
promote renewable energy technologies despite numerous
constraints, including high initial costs. The driving factor
behind this development is to reduce dependency, as well
as the millions of dollars spent on importing fossil fuels.
On average, the yearly cost of fuel imports account for 30%
of total imports and are a significant drain on national
budgets.
Despite the various challenges, renewable energy is still
one of the best solutions to providing access to modern and
sustainable energy services, particularly for rural areas and
remote islands in Pacific SIDS.
Paul Fairbairn
SOPAC (Secretariat of the Pacific Islands
Applied Geoscience Commission)
Suva, Fiji Islands
In short, yes and no. Yes many of the renewable energy
resources are appropriate for most SIDS. Furthermore,
using them demonstrates our support for Kyoto. No, some
renewable energy resources are not appropriate for some
SIDS. Global warming, climate change and sea level have
been increasing during the last 40 years. Many scientists
have been telling us that due to these conditions we will
experience more frequent and severe hurricanes, droughts
and flooding and that climate change is at least partly
caused by increased greenhouse gases, which come from
industries using inefficient and out of date technology.
Many SIDS have already experienced the effects of
climate change, even though some people insist there is no
climate change. In January and February, 2005 the Cook
Islands had five cyclones, one after another. Some years
before that, one hurricane struck one of our atolls in the
north, which is one metre above sea level. A three metre
wave went over the island, and about 10% of the population
died. Some of the bodies were never recovered. During the
last ten years, we have experienced frequent and more
severe hurricanes.
If all SIDS stop using fossil fuels, our emission
reductions would not significantly cut back the global
greenhouse gas emissions. However, SIDS should look for
alternative or renewable energy, because the cost of fossil
fuels will increase and fossil fuels will be running out.
© 2007 The Authors. Journal compilation © 2007 United Nations.
163
At this stage I would like to share with you the Cook
Islands experience with wind and solar power. The Cook
Islands lie 22 degrees south of the equator. At the moment,
we have two wind generators on two different islands.
Neither one of these generators has ever worked, nor do I
think they ever will. They were sold to the Cook Islands
Government by consultants who were interested in making
a quick buck, not to help the people of the Cooks. We
started using P.V. or solar in the late 70s. A lot of the solar
projects were designed and implemented by outside
consultants. By 1985, 90% of all solar projects had failed.
The Cook Islands Government therefore sent me to
S.P.I.R.E. in French Polynesia to train as a solar technician.
In 1986, I returned to S.P.I.R.E. to train as an instructor for
solar power. In 1988, I was requested to carry out the post
mortem on all the failed solar projects. We certainly learnt
a lot from the failed projects. Amongst these lessons is that
some solar panels are self regulating, and only suitable for
beacons. The size of the wires that are suitable for solar
application depends on the current required. The battery
must be D.C. (deep cycle) and the reserve should be
calculated equal to five times the amount required for use
in one day.
In 1990, we designed and implemented a US$1.5 million
solar project for one of our atolls, with a population of 800
people. Fifteen years later, 60% of the project was still in
operation. We are now in the process of replacing the
damaged equipment, and will be upgrading the system. The
cost of diesel generated power on the atolls is US$1.20 per
kWh; therefore solar power works out cheaper in the long
run.
Tomoavao (Tom) Wichman
Island Sustainability Alliance Cook
Islands Inc (I.S.A.C. Inc)
Rarotonga, Cook Islands
It is well known that SIDS contribute a minuscule
proportion of the global greenhouse gas emissions, yet are
amongst the most vulnerable to climate change impacts.
Many SIDS leaders have repeatedly stated that as far as
they are concerned it does not matter where GHG
emissions are reduced so long as they are reduced globally
to within safer limits. Consistent with this notion, SIDS
have supported renewable energy development in their
islands as a political statement. SIDS have also stated loud
and clear that if they can reduce emissions then everyone
else can and should.
The rising oil prices of 2005–2006 have severely
impacted many SIDS economies, due to increased costs to
the tourism and aviation industries, as well as increased
costs to exports and imports from rising transportation
costs. Local energy costs are also rising, creating greater
economic vulnerability for the citizens of SIDS. Renewable
164 Viewpoints / Natural Resources Forum 31 (2007) 162–165
energy with high local production content — such as
biofuels produced from sugar cane, coconuts and other
local plants, and biogas produced from animal waste or
local root crops such as cassava and taro — is therefore
looking more favourable.
The perception that renewable energy options for SIDS
are too costly rests on the faulty assumption that all
renewable energy technologies have to be very high-tech
and exogenous to SIDS. This perception perpetuates an
economic pattern where SIDS primarily import fuel for
their energy and transportation needs. A regional project in
the Pacific will seek to overcome some of these assumptions
and myths as implementation begins in 2007.
Espen Ronneberg
SPREP1
Apia, Samoa
The issue under consideration here is: if renewable energy
technology (RET) is the answer, then what is the question?
That question must be premised on the following
considerations:
Most small island developing States (SIDS) address their
domestic energy needs through the importation and use
of high-cost fossil fuels. Fossil fuel imports account for
the largest percentage of SIDS’ GNP. As such, meeting
sustainable development goals such as countering the
impacts of climate change and the eradication of poverty
cannot be adequately addressed. The need for lowering
the costs of energy production and services and the
development and application of innovative renewable
energy technologies is not only important but also
inevitable if SIDS are to pursue paths of sustainable
development. Additionally, SIDS remain the primary
victims of the effects of climate change, largely caused
by the consumption of fossil fuels.
However, notwithstanding the many inherent techno-
logical and human capacity constraints of SIDS, there
are other inherent obstacles associated with renewable energy
technologies, such as: commercial and market barriers
(e.g., competition with mature technologies; high costs
of financing and transaction; lack of infrastructure;
maintenance costs; public awareness of renewables’
advantages which affect demand and supply; etc.) and
institutional, legislative and regulatory barriers. Together,
these barriers and constraints become almost insurmountable.
In spite of these hurdles, renewable energy technologies
can be made within the reach of SIDS, especially if based
on readily available resources within them (e.g., solar
1 2
The views expressed are those of the author and not necessarily of the
organization he works for.
energy, biofuel raw materials, biomass, biogas, co-generation,
etc.). Most of the technologies associated with these
resources are already at some stage of development and
implementation in SIDS. High-end immature RETs such
as fuel cells and photovoltaics may be pie in the sky for
SIDS at the moment, but it can be argued that the gap of
cost-restrictive RETs can be narrowed if development of
relatively low-cost RETs, based on readily available
resources is pursued. This could be approached through
joint research and development (R&D) efforts between the
developed world and SIDS along with appropriate
incentives, particularly for the development of indigenous
energy sources and technologies. These joint R&D projects
can also serve to address issues related to Intellectual
Property Rights (an often-cited barrier to the transfer of
technology), capacity building and technology transfer.
The path to sustainable development should be pursued
in small manageable steps with the resources that can be
readily harnessed through innovative partnerships rather
than achieving renewable energy immediately through (an
unlikely) giant step. To say therefore, that the high cost of
renewable energy is likely to be the main reason for its non-
pursuance is reducing the issue of RETs and SIDS to a
simplistic, two-variable equation.
The question related to renewable energy and SIDS
should then be phrased: “Given the existent SIDS
renewable energy resources, can renewable energy be a
reality for SIDS?”
Kishan Kumarsingh
Environmental Management Authority 2
Port of Spain, Trinidad and Tobago W.I.
The cost of embarking on a renewable energy initiative
has to be weighed against the economic, social, and
environmental benefits to be derived from its use.
Generally, it is true that the initial capital costs of RE
projects are relatively high when compared with the costs
of conventional energy (electrification) projects. However,
from a SIDS perspective, RE can make a much stronger
contribution to resilience building than conventional
energy projects. For example, it is well known that SIDS
are highly vulnerable to energy price shocks that can and
have spawned severe economic, social and environmental
repercussions especially for the poor. Governments in SIDS
are usually forced to absorb the full impacts of energy price
shocks in order to maintain the competitiveness of small
businesses and relieve the pressure on the poor. RE
initiatives can, in the medium to long term, help to remove
this burden from Governments and allow more national
The views expressed are those of the author and not necessarily of the
organization he works for.
© 2007 The Authors. Journal compilation © 2007 United Nations.
 Viewpoints / Natural Resources Forum 31 (2007) 162–165 165

income to be applied towards critical social and economic
development initiatives.
Further, a critical macro-economic variable in SIDS is
foreign exchange variability. RE can, in the medium to long
term, help to cushion the adverse impacts of energy price
shocks on the economies and societies in SIDS by, inter
alia, eliminating the draw-down on scarce foreign exchange
reserves to meet spikes in energy costs and making more
foreign exchange available for strategic imports.
Finally, if the benefits of avoiding the risks of oil spills
and air pollution are factored into the equation, RE projects
will be found to produce significantly better “rates of
return” from an economic, social and environmental
perspective”.
Cletus I. Springer
Organisation of American States
Washington D.C., USA

© 2007 The Authors. Journal compilation © 2007 United Nations.