The Tribune

By NEIL HARTNELL Tribune Business Editor RISING oil prices could dampen the pace of Bahamian economic recovery, the Bahamas Chamber of Commerce and Employers Confederation's (BCCEC) warned yesterday, emphasising the need for this nation to have "a true, articulated" renewable energy strategy with targets and timelines. Questioning whether the Bahamas was still "dabbling" in renewable energy, Winston Rolle said the rise in global oil prices, which at press time hit $106.01 and $122.90 per barrel on the key West Texas Intermediate and Brent Crude indices, would be "felt across the board" in this nation. Apart from rising gasoline prices, which have hit the US and are increasingly being felt in the Bahamas, "the biggest challenge and complaint" remained the cost of energy and Bahamas Electricity Corporation (BEC) bills, in which the fuel charge exceeded the consumption rate. "It's more a concern of affecting the pace of recovery, and how quickly we start to turnaround," Mr Rolle told Tribune Business on the implications for the Bahamian economy. "Any additional costs are going to be felt significantly, because it's not only businesses but individuals in their personal financial lives are running on a very tight rope, so their ability to absorb any additional impact is limited. "Trying to get out of a recession, the last thing you need at this point is additional costs." The BCCEC chairman, noting the increased fees associated with the new Arawak Cay port, said rising oil prices would increase freight and transportation costs for the Bahamian economy even further, "impacting across the board". Oil prices are being driven higher by surging demand in China and the Far East, coupled with concerns around Iran's nuclear programme and threats to close the Straits of Hormuz. All of which should be further motivation for the Bahamas to finalise its National Energy Policy, reform the sector and advance on sustainable, renewable energies. Disclosing that US renewable firm, BLOOM Energy, was set to return to Nassau in a bid to facilitate projects here, Mr Rolle added: "I think there are a number of initiatives being examined now to look at plans for alternative energy, but this [rising oil prices] gives us even more reason, and if the economy starts to turn around we can't get comfortable this is something we do not need to do. "How clear is our strategy? Do we have a clear, articulated strategy that has timelines, or are we still at the dabbling stage? I think what we are seeing now is that this whole issue of energy and renewable energy is not something that is going to go away, so we need to make a true, concerted effort to make changes in this area in the long-term, and to have a clear plan as to how to achieve them." And the BCCEC chairman added: "It's not just from the Government's and country's perspective, but in some cases decisions made can spur private sector investment to feed power into BEC's grid, and it gives the private sector opportunities to create new industries, and generate revenues and jobs. "Right now, with the legislative framework for energy the way it is, it's an impediment to private sector investment in the sector..... We really need to have a clear plan as to where we want to go, and put some timelines to it, so we can have some measurable results."