General Question from a observer

Here's one: http://www.solardelivered.com/

I've seen solar panels on a few homes while there and thought the same.

Nothing to replace Hovensa as of now.

Plenty of solar distributors. It is still expensive to make the switch to all solar.

What is going to replace HOVENSA as a source of employment and contribution to the economy of St. Croix?

Having recently vacationed on St. Thomas, USVI, the one re-occurring theme is energy cost. Are there any Solar Energy Manufacturing Companies or Distributors on the island?

Is anyone selling Solar Panels to lower Air Conditioning and energy costs?

Nothing will replace Hovensa as far as numbers of employment. While there are many solar panel and other clean energy distributors on STX (who were also here during Hovensa) the sheer number of people employed cannot be replaced by installing solar and wind energy on homes. Manufacturing is out of the question due to the high cost of shipping and the high cost of doing business in the VI (insurance, labor, electricity, bribes).

Most of the folks that had jobs at Hovensa have left island. Most, not all. The support business likewise scaled back. We've lost a lot of residents and this created a buyers market in real estate, but I think that has stabilized. A rough figure was a 10-20% drop in population.

Several folks have looked into the possibility of solar panel manufacture, as it seemed like a good fit and a convenient distribution point for the Caribbean. However the cost of energy, importing raw components, labor costs, and general difficulties associated with execution of a manufacturing business on STX, prevent such a venture from being competitive in the global marketplace. Even the US based manufacturers got slammed on price by the Chinese manufacturers, with most now out of business. We are also in a cycle of rapid advances in solar technology and the cost per watt keeps dropping.

With the loss of Hovensa, the biggest threat is to our government coffers. The government is the biggest employer, and continues to grow with the endless introduction of new agencies, committees, divisions etc. etc. This is the jobs program for local employment, and the government is not likely to pursue technology to reduce employment. Efficiency would cost jobs (i.e. reducing the senate to a sensible 7!).

So the solution is the government needs to replace the tax revenues lost from Hovensa and even more, to perpetuate it's over-bloated existence as the prime employer. It's not just Hovensa's direct taxes, but all the downstream spending from the sub companies and all of those middle class earners that have disappeared. One path forward is to attract technology based & financial companies via tax incentives (EDC and RT Park). This offers little in direct employment opportunities to the ex-Hovensa workers, but does increase tax revenues allowing the government to continue it's jobs program and welfare state.

The EDC program works, and with new legislation pending in US congress to ease residency restrictions, has the chance to grow further. We also have a new Executive Director of the RT Park program with exceptional credentials - however that person is based in STT which makes no sense, and there has been no updates to the status of this program at all (i.e. website not updated since last year and has the old E.D. and board info). So while the RT Park program seems the most promising it does not appear to be progressing forward at this juncture. And while our cost of energy has come down slightly, the efficiency and future direction of WAPA is still a concern.

STX is the red headed stepchild to STT. STT continues to get the better part of government resources and attention. I fear we will see more of this. If the government, in it's ultimate wisdom, mergers the hospital boards and upper management, it would spell the beginning of the end to JFL as a fully functional hospital. This is just one example. There is no solution to this. Succession is not an option. Better governance is.

The other issue we face as a territory is the US and THEM. And I'm not talking racially, or residency. I'm talking about the 4-8 year cycle of the switch in government power. When the IN is IN, the OUT are OUT, and vice versa. We've just seen this with the ongoing wholesale changeover in management of government departments. It's like sneeches on the beaches, those with stars and those without, and is excessively disruptive and debilitating to government function and stability. Too often it is the knowledgeable, responsible, and functional, replaced with the inexperienced resulting in social promotion, ineffective operations and dropping morale.

STX is a wonderful place, with a great climate and level of community connectedness that is lacking in most stateside lives. I wouldn't want to be anywhere else. We all have hope for the future and many of us individually and collectively do our best to make that future as positive as it can be.

Of course that's just my opinion - I could be wrong.

Of course that's just my opinion - I could be wrong.

You nailed it...(tu)

Well said. And now that residential and commercial solar installations have hit the government mandated cap, even those companies are now pulling out or closing. The only alternative energy options left are to go completely off the grid by installing massive battery storage systems like Warren Mosler / Blue Water Terrace is doing out east. I'm glad I got my 30 panel system in before the cap was reached. As for HOVENSA, I was once hopeful but now doubt that it will ever be anything but a Superfund site in the future.

I thought about adding something regarding the future of the plantation now that the banana republic has run out of banana's but I wouldn't want to sound derogatory - but I don't think it's eligible as a superfund site. Not sure where I heard that but it's worth further investigation before assuming this is the case.

As the mainland has run out of storage capacity it's a pity the government is unwilling to settle for a tank farm. At these prices we should be loading it up with crude and waiting for the inevitable increase in global oil prices - Of course only once we've finally crippled Venezuela to a change in government, and are back boots on the ground in the middle east so the military contractors can make some more coin. But that's more likely once Obama's term is over and the ACA has been repealed by the new republican leadership. (are we far enough off the reservation yet or should I continue....chuckle...)

As the mainland has run out of storage capacity it's a pity the government is unwilling to settle for a tank farm.

Not for nothing but I haven't heard this. Most refiners (Especially with the majors scaling back) view storage as static money and aren't interested in adding to their tank farm capacity

I could see a JPM or GS potentially looking at this as a solution/hedge. Not sure if you could turn it into a terminal like St Eustatius