STAR Businessweek - 28 October 2017 by STAR Publishing

THE STAR BUSINESSWEEK OCTOBER 28, 2017

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Executive members of LUCELEC, Grupotech, and RMI-CWR in La Tourney, Vieux Fort

Prepare for NAFTA, the zombie edition

Discussions of the North American Free Trade Agreement tend to be binary these days. Will it live or will it die? Page 3

SAINT LUCIA GOES SOLAR

Construction begins on Saint Lucia’s first solar power farm as the island embraces the world’s fastest growing alternative energy source

BY CATHERINE MORRIS, STAR BUSINESSWEEK CORRESPONDENT

aint Lucia took its first steps towards utility-scale renewable energy generation last month when the country broke ground on a landmark new solar power facility - funded, owned and operated by Saint Lucia Electricity Services Limited (LUCELEC). LUCELEC is collaborating with solar power firm GRUPOTEC to construct a 3 megawatt solar photovoltaic (PV) farm in the south of the island. When it opens in spring 2018, the EC$20m farm is expected to generate enough electricity to power nearly 3,500 homes. LUCELEC is right on trend. Earlier this month, the International Energy Agency (IEA) released its Renewables 2017 report declaring that solar power is fast outpacing any other source of fuel. According to the IEA, solar PV grew by 50 per cent last year and capacity growth

is expected to surpass that of other renewables through to 2022. “[This is] the birth of a new era in solar PV,” said IEA Executive Director Fatih Birol.

SETTING THE GROUNDWORK

Roy Torbert, Principal of the Islands Energy Program, run by the Rocky Mountain Institute-Carbon War Room (RMI-CWR) says this upsurge in solar power can be attributed to advances in the technology combined with a greater understanding of the dangers of climate change. “Global action around climate change has really raised awareness of the need for low carbon solutions,” he says. “There’s also increased improvement in making technology high quality and very low cost.” Continued on page 4

Emerging markets poised to lead pack on renewable energy

Emerging markets are set to eclipse developed nations next year in their capacity to generate wind and solar power as equipment costs fall and the energy market approaches “peak coal”, according to Moody’s, the credit rating agency. Page 7

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A Shining Example BY CHRISTIAN WAYNE – EDITOR AT LARGE

It’s not quite as hard as catching lightning in a bottle, but predicting when innovation will occur, or where it will occur, can be a tricky thing. That’s why our team was so intrigued once we caught wind of LUCELEC’s plans to install the country’s first solar power farm in the south of Saint Lucia. Last month, Managing Director of LUCELEC Mr Trevor Louisy and his team broke ground on the EC$20m landmark renewable energy project with a sod-turning ceremony held in La Tourney, Vieux Fort. Beginning on page 1, The STAR Businessweek learns what makes this solar project the most advanced the region has ever seen, and also how a parastatal utility company became an unlikely innovator. While Canada, Mexico and the US continue hammering out the details of a revised North American Free Trade Agreement (see page 3: Prepare for NAFTA, Zombie Edition), The STAR Businessweek considered the question: What would a Caribbean Free Trade Agreement look like and how likely is it? See What’s The Chance of a Caribbean Free Trade Agreement starting on page 2. The STAR Businessweek – “Nothing Personal. It’s Just Business.” Stay connected with us at: Web: www.stluciastar.com Social: www.facebook.com/stluciastar Email: starbusinessweek@stluciastar.com

WHAT’S THE CHANCE OF A CARIBBEAN FREE TRADE AGREEMENT? BY ED KENNEDY, STAR BUSINESSWEEK CORRESPONDENT

Recent years have seen a seismic shift in global politics. The election of US President Donald Trump, Brexit, and ongoing political turmoil in the European Union (EU) that’s seen imbalance between prosperous nations like Germany and embattled nations like Greece, has shaken the foundations of political consensus on globalization that

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existed for decades previously. This in tandem with China’s growth. Beijing’s growing global influence has seen many nations looking inwards and to protectionism, seeking to defend against the Chinese government’s currency manipulation, and other economic manoeuvres by the Chinese Communist Party (CCP) that have resulted in an uneven playing field in global trade for many nations. Within this global dynamic sits the Caribbean, and it is clear that inaction in this area will not suffice. Other nations and regions of the world may be content and able to turn inwards; as a maritime region intent on greater growth and development, the Caribbean must grow trade. Yet, what is the path to grow regional trade? Is a free trade agreement (FTA) possible in the era of Trump, especially following the Trump administration’s high profile withdrawal of the Trans Pacific Partnership (TPP) free trade deal in Asia? A brief recap of the Asia region to find the path forward for this one is essential.

THE PROSPECTS

US President Donald Trump’s greatest fans and biggest detractors would agree on one thing, he is a political phenomenon. Campaigning and winning office on the promise to ‘Make America Great Again’, Trump has been a leading voice in the critique of global free trade. While his observations surrounding the CCP’s currency manipulation and its impact on global trade won acclaim - with even The New York Times affirming his view - Trump’s critique of the North American Free Trade Agreement (NAFTA) has raised the ire of America’s trading partners in Canada and Mexico. As The Economist detailed earlier this month, the idea of a revised agreement on the Trump Administration’s terms is highly unlikely to win support in Ottawa or Mexico City. Yet, notwithstanding Trump’s critique of agreements in place, the decision to withdraw America from the TPP may ultimately come to be the landmark moment in his economic legacy. Though the TPP would’ve seen the US build on already strong trade links it held with regional allies like Australia and Japan, it also promised to serve as a guard against Beijing’s economic dominance of the Asian region. Like Brexit may do for the UK in Europe, the US withdrawal from the TPP - to put ‘America First’ as President Trump aspires - has ultimately diminished American economic leadership (in tandem with diplomacy and defence) influence in the region. Though the TPP is ultimately a trade matter for Asia, it’s illustrative of the dynamics in which the Caribbean may grow its trade. Just as the TPP has continued with its 11 other members (including Chile, Mexico,

Peru and Canada), the absence of the US’s economic power and access to its market will be felt, and greatly diminish the power of the TPP as an FTA. This is a vital consideration for any Caribbean FTA in future: Washington’s participation would be a key target. With this in mind, what are the prospects for a regional agreement as it exists today?

CARIBBEAN FREE TRADE AGREEMENT AS IT EXISTS NOW

At present the US has free trade agreements with the following Latin American nations: Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Panamá, and Perú. FTAs with 10 nations in the region is not insignificant but, even when adding in American territories like the US Virgin Islands and Puerto Rico, it still doesn’t equate to a majority of countries in the region. Much less a shared consensus in a region with over 30 nations when including Belize, Bermuda and Mexico. These numbers, in tandem with the political climate in Washington, mean any prospect of a regional FTA with Washington’s participation is small. This reality indicates not only the outlook of the Trump Administration, but the wider world. As Ben Power detailed in Acuity Magazine all the way back in December 2014, FTAs have increasingly lost their lustre as a vehicle of global trade.

recent election of Emmanuel Macron in France who seeks to champion a renewed European Union. The experience of the UK and France is illustrative of a guiding star for a Caribbean FTA. Beyond the headlines and political turbulence, the EU remains desirable as a free trade region. While recent years have shown some of the shortcomings of the EU as an economic model, there still remains the capacity for the Caribbean to learn from mistakes made in Europe. Ultimately, beyond economics, the EU has undoubtedly achieved its founding aim: to prevent a repeat of a breakdown of relations and a breakout of continental war as seen in World War II. Given the political diversity of the Caribbean there is no prospect of such political unity, but also not the same risk that led to the EU’s founding. It’s in economics that the Caribbean can build upon the EU experience.

LEADING BY EXAMPLE

Recent times have shown vividly that there are no certainties about global trade and geopolitics. This notwithstanding, it is never safe to bet upon any expectation of drastic change. Unless President Trump resigns or is removed, his administration shall lead American trade for at least another three years, and potentially more if he serves a second term. The same dynamic applies to China. Barring unforeseen upheaval, it will continue its growth, and global trading practices. Accordingly, any negotiation of a free trade agreement in the Caribbean must be done with an acceptance of these challenges, irrespective of how difficult they may be. Rather than looking beyond the Caribbean and awaiting a change in global opinion, there is instead an avenue for regional leadership that could impact on a global scale. The creation of global value chains boosted trade during the last two decades, but may have run its course in recent years (IMF, 2016) Ultimately, if the era of the FTA is held to be at the end, it is clear that the potential for greater regional This is not only to the sheer number of growth increases. FTAs now in existence, but the emergence This has been seen with the TPP in Asia of borderless technologies and businesses as countries have continued on despite the like cryptocurrency and blockchain. That US withdrawing. This is apparent in Mexico was apparent back then in 2014, and it’s only where though a preference to remain in become more apparent now, in 2017. NAFTA may exist, there are preparations underway in the event Washington does exit. EU MODEL Till now, there have long been talks held While the Brexit decision will be remembered and plans made for a greater integration of as a landmark moment in British politics, regional economies. As far back as 1989 the the economic reality of an EU exit for the Grand Anse Declaration paved the way for UK has seen many Britons who voted ‘leave’ a common market in the Caribbean under now thinking twice. The same is true of the the umbrella of the Caribbean Community British government negotiators, as growing (CARICOM). The political climate would reports suggest a ‘Brexit-lite’ is desired by suggest it is time to revisit that Declaration, London that’ll see the UK remain in the and begin anew on its work. common market. This in tandem with the

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PREPARE FOR NAFTA, THE ZOMBIE EDITION

BY FT CORRESPONDENT

Donald Trump has made clear that he is more than ready to withdraw from the North American Free Trade Agreement

Discussions of the North American Free Trade Agreement tend to be binary these days. Will it live or will it die? But here’s a thought: What if, as a result of Donald Trump, what more than a quarter of the global economy ends up with, is a zombie NAFTA? One that is neither dead nor alive. A walking corpse of a trade deal that continues to live in an unhealthy limbo until someone either finds a cure for what ails it or blows it to smithereens with a “Made in the USA” zombie annihilator. That, of course, sounds preposterous. But there is already plenty of precedent in the Trump administration. Never mind trade policy, where almost every major initiative ordered up by President Trump has ended up in policy purgatory thanks to incessant internal battles in the White House. During his campaign, the president promised bold moves to withdraw from both the Paris Agreement and the Iran nuclear deal. Yet his real decision in both cases has left the US in messy halfway houses. The same holds true for his decision on the “Dreamers”, those undocumented immigrants brought to the US as minors who were granted the right to live and work in the country by the Obama administration. Mr Trump has both cancelled the programme that allowed them to stay and promised them another.

So why would NAFTA be any different? Mr Trump and those around him have made clear that he is more than ready to withdraw from NAFTA. That could turn out to be an ill-judged move that would force the collapse of the 23-year-old deal. The president and his aides have also indicated both that they consider giving notice of withdrawal a legitimate negotiating ploy and that they aren’t that worried about the consequences. “If we do end up not having [NAFTA], my guess is all three countries will do just fine. There’s plenty of trade, and plenty of reasons to trade,” Robert Lighthizer, Mr Trump’s US trade representative, told reporters last week. But the domestic politics of that are awkward. And there are at least three reasons why they may lead to a zombie NAFTA. The first is that the Republican leadership in Congress doesn’t like the idea of pulling out of NAFTA. That may not be a concern to former White House adviser Steve Bannon, or fit with his vision of a nativist and protectionist Republican party. Yet it matters. There is a legal debate under way over the president’s constitutional power to terminate any trade deal, given the way the US constitution clearly assigns powers over international commerce to Congress. The

There is a legal debate under way over the president’s constitutional power to terminate any trade deal, given the way the US constitution clearly assigns powers over international commerce to Congress. last time a president did so was in 1866, when Andrew Johnson pulled the US out of a trade deal with the British colonies in what is now Canada. But Mr Johnson withdrew with congressional approval. There is also the small matter of US law. No one doubts that in international law Mr Trump has the power to exit NAFTA. But beyond the relevant constitutional questions, trade deals are implemented with domestic legislation. And legal scholars who have dived into the implementing bill for NAFTA say actually repealing the pact may be more complicated legislatively than the

White House thinks. The second force is the US constitution. Come April 2018 Mr Trump will have to request an extension of the Trade Promotion Authority, under which Congress hands the president power to negotiate trade deals. That authority, which Congress granted Barack Obama by a narrow margin in 2015, expires in July 2018 and even if the president requests its renewal, either chamber of Congress could block it. This matters because the US, Canada and Mexico last week extended their talks to renegotiate NAFTA through March 2018. If Mr Trump chooses to leave NAFTA at the same time as he requests a renewal of the TPA, he would set up another conflict with Republicans in Congress. Such a battle may end up suiting the president politically. But it would neuter his trade powers and plans for trade deals with a post-Brexit UK and other countries. The third force is the formidable opposition building to Mr Trump’s plans for NAFTA. US business is almost unanimous in rejecting both the president’s withdrawal threat and the demands he has made at the negotiating table. So, too, is the powerful US agricultural lobby. Most Republicans in Congress don’t like the idea of losing NAFTA. But neither do most Republican governors. The Democratic party is usually the one to which trade sceptics pledge their allegiance. Yet many Democrats who don’t like NAFTA in its current form also see a withdrawal as too extreme. Taken together, all of this suggests one shouldn’t dismiss the possibility of a messy compromise. It might start with negotiations extending deeper into next year and beyond July’s Mexican national elections into a six-month period when there will be a caretaker government in Mexico City. That seems improbable now. But never say never. Perhaps more likely is that NAFTA gets caught in a legal and legislative limbo in the US. It’s not hard to envision a scenario in which Mr Trump proclaims his withdrawal from NAFTA and ends up being sued by businesses or others questioning his power to do so. Equally, however, the block could come from a Congress that simply refuses to amend legislation and do the president’s bidding. Moreover, lawyers point out that there is an important difference between the provision in NAFTA that allows countries to withdraw and the EU Article 50 provision that the UK has triggered. The NAFTA provision calls only for a minimum notice period of six months, or one that could easily be extended into perpetuity. Article 50, meanwhile, sets a hard two-year deadline. Mr Trump has turned the presidency into a high-paced reality television show that is daily testing viewers’ credulity. NAFTA is an intriguing subplot. But it is one that could easily soon feature a zombie.

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Continued from page 1 Worldwide, most of the activity around solar PV is happening in China and India but the Caribbean climate makes that region a particularly good candidate for this type of power. Not only are sun-drenched days the norm, so are devastating storms and flooding. Against a backdrop of frequent natural disasters, renewable energy has a vital role to play in providing more reliable, and less centralised, forms of power. In addition, most countries in the region are heavily dependent on imported fossil fuels and therefore at the mercy of fluctuating global fuel prices. But while solar seems like an obvious solution for the Caribbean, the region has yet to fully embrace it. “The future for solar in the Caribbean region is quite bright,” says Torbert, “[but] land is a barrier. You have to be sensitive to the fact that on an island land is scarce. Another barrier is continued unfamiliarity with the technology. When you are investing in something it is helpful to be comfortable with the technology, to have seen it working. Solar is something new. That has slowed the uptake.” RMI-CWR, together with the Clinton Climate Initiative (CCI), helped Saint Lucia establish its solar farm project by providing technical assistance. Having worked closely on the project, Torbert says it can be a model for the region. “Saint Lucia’s farm has come in at some of the most low cost and competitive pricing the region has yet seen. This solar project really sets the groundwork, not only for additional solar in the future but also for a variety of other energy resources.”

OVERCOMING OBSTACLES

It may be a template for the region, but Saint Lucia’s solar farm project wasn’t without its challenges. “Any new project is going to have a whole bunch of barriers,” says Torbert. “There are a lot of local stakeholders that have a high interest in solar, but have never had to review and approve a project like this before.” It was a steep learning curve, acknowledges LUCELEC Managing Director Trevor Louisy who says assistance from international partners RMI-CWR, CCI and the global energy and engineering advisory firm DNV GL was invaluable. Stakeholders from Saint Lucia saw the initiative as a learning experience, according to Louisy who added that the country will be able to take those lessons forward into the next clean energy project. “We worked with partners like

RMI-CWR in developing capacity so that in the future we will have to rely less on those resources,” he says. Topping the list of challenges for the solar project team was land. Specifically, how to find a site large enough for solar panels on an island where the resource is much in demand. LUCELEC settled on a property north of the Hewanorra International Airport at La Tourney, Vieux Fort but negotiations took some time as the site was owned by a government agency and last year’s change of administration slowed the process. “Our primary obstacle was land,” says Louisy. “Renewable energy projects are very land intensive so there’s going to be competition with other sectors for that resource. Solar requires vast stretches of mostly flat land [but] because of our smaller size, land is a premium. It was important that we try to consolidate as much as we could on one site.” Once LUCELEC had secured the site, they were confronted with another problem - how to reduce glare from the panels interfering with the airplane pilots overhead. Thankfully, this was easily resolved by altering the panels’ design.

LONG-TERM BENEFITS

While the farm is expected to begin feeding into the national grid early next year, both Louisy and Torbert say it will be a while before customers see any change in their bills. “It will not be an immediate discount on everyone’s bill but it is a start to reducing and stabilizing prices,” explains Torbert. “It will dampen the effects of [changes to] international fuel prices.” The benefits of solar may not be immediate, but they are very real. Saint Lucia’s new farm is expected to contribute 15m units of electricity a year. While this amounts to just 1.3 per cent of the current output from LUCELEC’s Cul De Sac power plant, it will make the system more resilient against a single point of failure. In addition, it is forecast to cut Saint Lucia’s fuel bill by around 300,000 gallons a year. A welcome statistic for a small island nation vulnerable to climate change and heavily reliant on diesel. “Renewable energies are a major component in moving away from fossil fuels as much as possible,” says Louisy. “It is very important for us to be leaders in making that transition away from practices we have had in the past

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LUCELEC Managing Director Mr Trevor Louisy

Total Cost to Operate Compared Against Renewable Generation (Source – Rocky Mountain Institute – Carbon War Room (RMI-CWR))

that may be contributing to climate change. This is an initiative that we as a company, and as a country, need to embrace.”

A BETTER WAY

Solar is just one piece of the puzzle for Saint Lucia. In 2016, the government and LUCELEC drew up a National Energy Transition Strategy (NETS) which determined that the country’s energy needs are best met through a combination of power sources. A diversified portfolio of solar, wind and diesel was considered optimal in helping Saint Lucia reach its goal of 35 per cent renewable energy penetration by 2020. Such collaboration between a utility company and government is unusual in the region, and another way in which Saint Lucia is spearheading change. Torbert, who assisted both parties in drawing up the NETS, says he was impressed at the level of dialogue. “We really recognize the straightforward leadership from both the government and LUCELEC. They brought their own unique perspectives to the table and worked through a whole bunch of challenges to bring about a successful result.”

A diversified portfolio of solar, wind and diesel was considered optimal in helping Saint Lucia reach its goal of 35 percent renewable energy penetration by 2020.

Louisy believes this fruitful partnership came about because everyone involved understood the gravity of the issues and had a common goal. “We are not always on the same page as government but we noted the need to ensure that the activities we undertake at this point are going to be sustainable, and will improve the quality of life of the people in Saint Lucia and, by extension, the entire region.” It is hoped that other Caribbean countries will follow suit, especially in the aftermath of hurricanes Irma and Maria which highlighted the severe vulnerabilities in the Eastern Caribbean’s power grid systems. “There is a lot of interest [in solar power], especially after the hurricanes,” says Torbert. “There’s a long rebuilding time to think about solar and other renewable resources.” At present, other small island nations such as Aruba, St. Vincent and Turks & Caicos are considering similar solar projects. Torbert says: “Saint Lucia’s solar farm project points to a better way for the whole region and a lot of folks are standing up to take notice.”

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SAGICOR DONATES TO LIAT RELIEF EFFORTS BRIDGETOWN, Barbados, October 19, 2017 – The management and staff of Sagicor Life Inc and Sagicor General Insurance Inc were deeply moved to support their colleagues, clients, families and friends in the many Caribbean Islands grappling with severe loss and devastation following the passage of Hurricanes Irma and Maria. Recognising that non-governmental organisations play an increasingly vital role in providing humanitarian aid and redevelopment assistance to these territories, Sagicor has used its geographical locations across the Caribbean to work closely with these organisations, to assist with disaster recovery efforts. As part of their efforts to support the recovery process in Dominica, Sagicor has committed to a contribution of US$20,000 to regional airline LIAT. This donation will assist LIAT’s goal of helping those that remain on island, as well as airlifting affected persons from Dominica. To date, LIAT has been able to mobilise flights, taking a number of persons including small children, the sick and elderly out of Dominica. LIAT has also flown in a large quantity of relief supplies from donors and relief agencies, including CEDEMA. Donald Austin, Chief Executive Office of Sagicor Life (Eastern Caribbean) Inc, shared

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HANDS

Sagicor has committed to a contribution of US$20,000 to regional airline LIAT to assist with relief efforts in Dominica

his sentiments on the urgent need for assistance. “This is a trying time for many countries across the region and I encourage everyone to contribute in their own way. We have chosen, among other initiatives, to work with LIAT as the regional carrier is positioned to bring life-saving supplies and hope to Caribbean citizens affected by the recent severe weather. As an insurance company serving customers in over 15 Caribbean countries, Sagicor is prepared to assist in any way we can.” Interim Chief Commercial Officer of LIAT, Audra Walker, was grateful to Sagicor for taking the initiative of partnering with the airline in this venture. “The positive response of Sagicor to the Care Lift programme is welcomed, especially in these trying times across the region. Many of those affected by these devastating hurricanes would not be able to access the essential needs and services without these flights to their destinations.” In addition to this contribution, Sagicor staff from across the Sagicor Group of Companies have donated food, personal items, tarpaulins and water, which have been couriered to Dominica by sea. The Dominica drive has also been bolstered by staff pledging contributions from their salaries to further assist those in need.

Logistics & Brokerage Services Inc “Beyond the boundaries of expectations”

The Saint Lucia Government Gazette

Company Registration

Tender for the supply of raw cane sugar to Gosl

Name: Advantage Business Consultants Description: HR Management Services Directors: Lisa Elaine Bowe Date Filed: 12-Oct-17

The Government of Saint Lucia through the Department of Commerce, International Trade, Investment, Enterprise Development and Consumer Affairs is inviting tenders for the supply of Raw (Brown) Cane Sugar, for the period of February 2018 to January 2019. Four thousand five hundred (4,500) metric tons or a part thereof, to be shipped over a twelve (12) months period, in quantities to be agreed between the contracting parties.

Tender for the supply of refined cane sugar to Gosl The Government of Saint Lucia through the Department of Commerce, International Trade, Investment, Enterprise Development and Consumer Affairs is inviting tenders for the supply of Refined Cane Sugar, for the period of January 2018 to December 2018. Four thousand and fifty (4,050) metric tons to be shipped over a twelve (12) months period or as long as quantities last, as agreed between the contracting parties.

Find us in Corinth, Gros Islet P.O. Box 1506, Castries, St. Lucia Tel: (758) 450-4869 • Fax: (758) 450-3799 • Mobile: (758)484-6700 Email: logistics.kpl@gmail.com • Website: www.kpllogistics.co

For further inquiries: The Secretary Central Tenders Board Ministry of Finance 2nd Floor, Finance Administrative Complex Pointe Seraphine Castries, Saint Lucia

Name: Causeway Commercial Ltd. Description: Property Holding Company Directors: Holly Hughes-McNamara Date Filed: 13-Oct-17 Name: DCK Building Solutions SL Ltd. Description: Holding Company Directors: Stephen D’angelo Date Filed: 13-Oct-17 Name: Triple Focus Inc. Description: (a) Taxi Service (b) Restaurant & Bar Directors: Werner Serge Houson; Ambrose Adolph; Hamish Mc Allstair Edwards Date Filed: 16-Oct-17 Name: New Start Inc. Description: Wholesale Retail Directors: Shaoming Shen Date Filed: 16-Oct-17 Name: Caribbean Fim Portal Inc. Description: Filming Directors: Avril Edwin; Geraldine Imoya Monroque Date Filed: 17-Oct-17 Name: KERS Ltd. Description: Real Estate Holding Company Directors: Alan James Donnelly; Jane Louise Donnelly Date Filed: 17-Oct-17 Name: Banana Countree Ltd. Description: Restaurant & Bar Directors: David Cooper; Paul Cooper; Corey Devaux Date Filed: 17-Oct-17 Name: Caribbean Seafood Enterprises Ltd. Description: Seafood Merchandising Directors: Carlos Hernandez; Anthony Jaye Date Filed: 17-Oct-17

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Technological advances have slashed costs and cut the need for subsidies (Source – Getty Images)

EMERGING MARKETS POISED TO LEAD PACK ON RENEWABLE ENERGY BY FT CORRESPONDENT

been leaders in renewable power generation, emerging economies are close to overtaking them, bringing their total installed capacity of wind and solar to 307GW and 272GW — respectively 51 per cent and 53 per cent of global capacity, according to Moody’s calculations.

China accounts for the lion’s share of the upsurge. But Middle East and north African countries are scheduled to have installed 14GW in solar plants by the end of 2018 — a sevenfold increase from 2015. Central and South America are also expected to reach 14GW, nearly five times more than in 2015, while India is set to hit 28GW, a jump of nearly six times. “Everyone knows the cost of installing solar and wind energy has been coming down, but recently we have seen prices hitting extreme lows in places such as Mexico, Chile, India and Abu Dhabi,” said Swami Venkataraman, senior vice-president at Moody’s Investors Service. “This fall in costs is definitely changing the calculus of [emerging market] governments, allowing them to pursue renewables much more aggressively,” he added. Another factor is the onset of “peak coal” in the energy market. In 2013, the US Energy Information Administration projected that world coal demand would rise 39 per cent by 2040. Now it is expecting growth of just 1 per cent. The attractiveness of wind and solar power derives mainly from technological advances that are slashing costs and erasing the need for subsidies, with the trend seen as by no means over. “Numerous key markets recently reached an inflection point where renewables have become the cheapest form of new power generation, a dynamic we see spreading to nearly every

country we cover by 2020,” said a recent report by Morgan Stanley, the investment bank. “The price of solar panels has fallen 50 per cent in less than two years. All-in costs for wind power in countries with favourable wind conditions can be as low as one-half to one-third that of coal-fired or natural gas-fired power plants, and wind turbine output will increase exponentially as wind blade lengths continue to increase,” the bank added. The popularity of solar power in emerging markets is growing more quickly than that of wind. By the end of 2019, Moody’s estimates, emerging markets will host 353GW of solar capacity — a 2.6-fold increase over 2015 levels — eclipsing an estimated 349GW of wind power, a level 1.5 times higher than in 2015. The cost of storing power in batteries, a shortcoming that has hampered adoption of renewable energy, is also declining rapidly, with benchmarks that had been projected for 2020 being reached over the past two years, Mr Venkataraman said. Cheaper storage should not only help resolve the intermittent generation problems of wind and solar plants but could also cut the price of electric cars, giving them mass-market appeal within a few years, Mr Venkataraman added.

FINANCIALLY SPEAKING Financial Literacy 101 presented by Bank of Saint Lucia

RETIREMENT PLANNING & MANAGING YOUR DEBT The month of October is designated as Financial Information Month in the Eastern Caribbean Currency Union (ECCU). The 2017 theme is “Retirement Planning: Making Your Golden Years Golden.” The theme is aimed at advancing public sensitization on the importance of preparing for retirement - from the very first paycheck and continuing throughout the years of employment. Retirement is a distant goal for some or it may be right around the corner. Being adequately prepared will ensure a good quality of life after employment, the truly golden years. But the question remains, how many of those who reach retirement age are actually ready for this major life stage? RETIREMENT PLANNING Retirement may seem like many years away for some, but saving now will make it more comfortable for you to enjoy your golden years. The key is to have a proper retirement plan in place and healthy savings. A firm understanding of your retirement benefits with your current employer and an assessment of whether your current savings are sufficient to meet your goals are a good start. Talk to your financial institution representative today for personalized guidance in identifying the best savings products available, as well as determining how much you will need to have a comfortable retirement life. Be prepared to plan for the different phases of retirement, for example immediate retirement – which affords opportunity to undertake new personal projects or experiences like travelling, starting that home garden or simply taking up a new hobby. Later in your retirement years there may be increased expenses on health and home care, which need to be planned for. It is important to note also that a retirement plan is not just about crunching numbers, it is about mapping out your goals and ambitions.

Outline your goals When do you plan on taking retirement? What do you plan on doing? Crunch the numbers Talk to your financial institution representative How much will you need (Take into account inflation – cost of goods and services are likely to be more in the future) Be realistic Regularly revisit and review your plan Goals are not written in stone, adjust if needed as circumstances may change MANAGING DEBT The truth is that most of us carry some form of debt whether it is by way of credit cards, a vehicle loan, medical loan or a mortgage. As you approach retirement, the aim is to reduce your debt. Many tend to focus more on paying off the debt and not on saving. It is critical to strike a balance between ensuring that debt is handled wisely and adequately saving to have a retirement that meets your expectations.

Get to know your debt and know the costs of using it. If you have more than one loan facility, list them all in terms of loan balances, interest rates and minimum payments. It is advisable to reduce the debt with the higher interest rate or the loan which is close to being paid off. Pay your bills on time. Paying off a mortgage in full before retirement is a far less common occurrence. Instead, treat the monthly mortgage payment as if it were a fixed expense in your retirement plan. Other key retirement recommendations are to plan to make lifestyle changes to adjust to your new retirement income; track your monthly expenditure; and consider having a contingency savings fund for unexpected emergencies or unanticipated expenses.

Take control of your retirement planning. Failing to plan is planning to fail!

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‘PLANT GROW EAT’ IS ALL ABOUT SUSTAINABILITY!

BY KAYRA WILLIAMS, STAR BUSINESSWEEK CORRESPONDENT

lant Grow Eat, otherwise known as Marquis River Farms, is committed to helping develop a more health conscious, and self-sufficient Saint Lucia. In addition to cultivating fresh, organic produce, the company also provides assistance to young farmers, helping them to develop their businesses from the ground up. Peter Dillon, one of the company’s Managing Directors, spoke to The STAR Businessweek on emerging trends in the agricultural industry, and what the company has been doing to help generate interest in the sector in an effort to increase local production capacity while cutting down on Saint Lucia’s food import bill.

HOW LONG HAVE YOU BEEN ACTIVE IN THE AGRICULTURAL SECTOR? PETER: We have worked this business

model for 15 years in small island developing states.

HOW HAS THE INDUSTRY EVOLVED SINCE YOU FIRST FOUNDED ‘PLANT GROW EAT’? PETER: It has had its ups and downs. We

are in the business of import substitution. 95% of Saint Lucian vegetables are imported so there is a lot of space in the market.

DOES YOUR COMPANY, ‘PLANT GROW EAT’ HAVE A SOCIAL MISSION? PETER: To provide options and choices for

rural young people, and create agricultural businesses in those communities. We start them off, make them profitable, pay back the investment capital interest-free, then they become owned by the people who work there.

WHAT ARE YOUR MAIN PRODUCTS? PETER: Mushrooms, rocket mesclun mix

and cherry tomatoes.

WHO ARE YOUR CUSTOMERS? PETER: Supermarkets, restaurants, hotels

and direct individual sales.

HOW HAVE CUSTOMER PREFERENCES CHANGED OVER THE YEARS? PETER: They have grown. Our challenge

has been one of scale. We supply quality, quantity, reliability and service.

ARE YOU SEEING A GROWTH IN DEMAND FOR MORE ORGANIC PRODUCE? PETER: Moderately. Organic is a moving

target. The move is towards healthier, chemical-free agriculture, which is not always synonymous with organic.

WHAT DOES SUSTAINABILITY LOOK LIKE IN PRACTICE? PETER: We grow organically from an

agricultural perspective. From a business perspective, the business has to be big

A fresh harvest of Simply Mushrooms at the Marquis River farm.

enough and profitable enough to support a staff that does not rely on one individual financially to weather market forces and climatic challenges.

HAVE YOU HAD ANY RECENT SUCCESSES YOU’D LIKE TO SHARE? PETER: Simply Mushrooms. By Christmas

there will be no imported mushrooms on-island. We have tripled the demand for mushrooms in 12 months.

WHAT ARE SOME OF THE CHALLENGES YOU AND YOUR TEAM EXPERIENCE AND HOW DO YOU OVERCOME THEM? PETER: As an agricultural business our

challenges are mostly technical; growing a temperate climate crop in the tropics is always a challenge. However, the willingness, commitment and talent of our young staff is our biggest strength.

SAINT LUCIA’S FOOD IMPORT BILL DOMINATES THE COUNTRY’S TRADE BALANCE. WHAT ARE YOUR THOUGHTS? PETER: We need to grow more vegetables

and focus on the low-hanging fruit of import substitution. We import lettuce, tomatoes, peppers and other things that can easily be grown here.

HOW DO YOU FEEL ABOUT THE STATE OF AGRICULTURE IN SAINT LUCIA? PETER: Agriculture in Saint Lucia is replete

with opportunity. There is a massive market

for local produce – it has a cost, freshness and quality advantage over imports. Yet, we are still importing a significant percentage of our vegetables. When you look at the issues, one that comes up frequently is risk mitigation - no return until you get paid. On tomatoes, for example, it takes 13 weeks to grow, 4 to 6 weeks to get paid. That’s a 4 to 5-month time investment where farmers have to feed their family, and if the crop fails they get nothing. Focusing on more regular weekly planting for things like lettuce helps to stem these risks, but it remains a major issue.

see what is imported. Go home and grow it, but remember the catchphrase of success: ‘Quality, quantity, reliability and service’.

WHERE CAN OUR READERS FIND YOUR PRODUCTS? PETER: At supermarkets plus we have

a stand in front of the Aquatic Centre in Rodney Heights on Tuesday and Friday afternoons, 2.30-5.30 p.m.

WHAT’S ON THE HORIZON FOR ‘PLANT GROW EAT’? PETER: We are looking to export our

mushrooms regionally. We also have some agricultural redevelopment plans in Dominica. We are partnering with the OECS to grow 200,000 vegetable seedlings; that will help to restart the Dominican agricultural economy.

HOW WOULD YOU DESCRIBE THE “EASE OF DOING BUSINESS” IN SAINT LUCIA? PETER:It is relatively easy. Occasionally

we get burned by small businesses going bust, and sometimes hotels take too long to pay, but that is not the majority.

WHAT ADVICE WOULD YOU GIVE TO A YOUNG PERSON CONSIDERING A CAREER IN AGRICULTURE? PETER: Go for it! There is huge

opportunity in agriculture. Go into the supermarket and look on the shelves and

Simply organic, simply fresh!

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