Archive for Alternate Energy
“I Can See Where the Tortillas Are Now”
Posted by: | CommentsThis is cool:
I bet if they manufactured 500 instead of 50 the costs would come down substantially. Some big-hearted investor could probably get into the finance business and make these kits available on payment plans and put them into thousands of homes instead of 50.
H/T: Minn Post
Green in Guate Update
Posted by: | CommentsIt’s tough trying to go green in Guatemala. For more than six months I’ve been accumulating recycling hoping that one day the recycling people who offer home pickup would actually show up and take this stuff away. I even went through their cleaning and separating instructions meticulously. Calls to every number they publish as well as polite requests by email were all ignored. Not even a “We don’t want your stinkin’ trash!”, which at least would have been humorous. Perhaps recycling from conservative gringos is less valuable? Anyway, they never did come by to pick it up, but my landlord was kind enough to drag it all away.
I’ve always wondered about the economics of recycling and have long suspected that without government subsidies recycling in a economic loser. My own experience suggests the margins aren’t there. I just heard from another expat who asked to remain anonymous that the recycling people went out of business because the land that was free is no longer, well, either free or available. I guess if you require free land to subsist it’s not economically viable. So from now on we’ll give all our recycling stuff to the same two little boys in the back of a truck who come to pick up our trash. Or we could go native and just burn it under our neighbor’s front window.
Readers will recall I was also enthusiastic about the opportunity with wind power here in Guate. For much of the dry season I had a lot of wind here at my house, and went so far as to put plans together for a vertical axis wind turbine. There is some really cool stuff on YouTube, guys in the rust belt with actual practical skills and too much time building these things and then sitting back with an Milwaukee’s Best Light saying, “Hey y’all, watch this!” Anyway, the idea was that this baby would work even at low speeds and charge up a bank of batteries that I could then power the house with, but the closer we got to the rainy season the less wind there was in general. Sure, we’ve had some storms, but for the wind to really work you need to have steady wind, and that’s obviously not the case inland. That was a real disappointment to me because the return on investment (ROI) was so much more attractive with the wind turbines than with solar. Besides, sitting up there and watching her turn round and round and knowing that every revolution was making or saving me money…that would just be cool.
I’ve concluded that solar is the only real practical solution, but the long time to ROI (10 to 15 years at best) means it is economically impractical. To put it in perspective, the investments I’m making here in Guate have a 2-5 year time to ROI. Of course, even at 15 years you’re effectively talking about 5% a year on your money, more than a money market account, and you have the benefit of a independent, clean energy source. Risk has a relationship to ROI but I don’t remember how to calculate it into the yield curve, so calculating the ‘reward’ of having energy when no one else does is beyond me at the moment. I mean, it’s probably pretty high, but I can’t remember. Regardless, the long ROI means that capital looking for a good return will likely go elsewhere.
My own plans have therefore changed. Rather than trying to go fully-off grid, I’m going to step into it a little at a time. My plan is to acquire a single solar panel, inverter and battery or two and try to power a refrigerator or deep freeze. I’m pretty motivated about it since power outages have been somewhat frequent and losing relatively expensive meat and dairy products isn’t fun. Incidentally, when I mentioned this idea to Santiago he suggested I just hire locals to get on a stationary bicycle and ride it for me, charging the batteries that way. To his credit, that is a clean and renewable energy source, and I could hang out with other expats and revel in how I’m helping ‘those people’ by providing jobs, but I really want the power on demand and in the event the roads are all washed out again I’m betting my cyclist(s) wouldn’t show up for ‘work’. There is a project in Guate with a similar scheme, check it out here. I’m also ordering a sun oven, so I can boil water or cook something just by concentrating the sun’s power.
One of my other projects has been to convert Fraulein Benz to run on alternative fuel. My dream has been to get one of those kits that will allow me to motor around the streets of Antigua using used vegetable oil. What would be cooler than cruising down 5th Avenue leaving behind an exhaust trail that smells like french fries? Even if the cost to operate wasn’t that much less it would be pretty neat. But readers will recall that I’ve had some rather basic problems just keeping Fraulein on the road, let alone powered by leftover oil from McDonald’s. With all the money I’ve spent on tuktuks and taxis the last few months I could have bought an entire fleet of conversion kits. I’m a little depressed about that whole situation, and eternally hopeful I’ll have my own ride again soon.
One reader wrote me with an idea that sounded interesting; he was working on some program to essentially create moonshine using the plentiful sugarcane grown in this country. Moonshine is pretty good fuel for a diesel engine and I liked the idea of creating a business around homemade liquor, err, fuel, but it occurred to me that Chapines love their sugar and if the recent dustup with Mexico over sugar is any indication, the last thing I need to be known as is the Gringo Using Our Sugar for His Mercedes. The price would go sky high, I’d have protests in front of the compound, and as readers know I like to avoid confrontation and lead a low-profile, quiet life, so the sugarcane moonshine/fuel project was abandoned as well.
I do have an idea for hydropower which requires a trip down to the river to evaluate. Anyone ever been to Chicujal?. Stay tuned…
I’m Hungry
Posted by: | CommentsEl Blogador makes a regular-almost daily-habit of reviewing movies. One topic that recently caught my eye was the movie ‘Food Inc’, not because I’ve seen it, but because I worked on a business plan recently which touched on this topic.
I’m going to skip commentary on the apparently anti-market movie and El Blogador’s anti-American sentiment, since neither their opinions or my response is likely to be of surprise to readers, but the primary topic should be. As I’ve learned in recent years, 98% of the food supply in the US is produced by only 2% of the population, and the bulk of the food is produced and distributed by a few large companies. (If I were a liberal I would say, ‘a few evil multinational corporations’).
Naturally these companies respond to market pressures to produce large quantities of food at low prices. Despite what the poor and uneducated may believe, these companies do not begin with the objective ‘produce low quality food’, but rather, interpret market demands and then seek to satisfy them. In the US, and it would appear around the world, people want lots of good tasting food and don’t want to pay very much for it. Imagine that.
Because the market works more efficiently in the US than in most other countries-and certainly most other large economies due to the relatively low level of governmental interference-the market is getting what it wants, and that means that the food is not very nutritious but it looks/tastes good and is cheap. El Blogador blames this on subsidies, and while there are subsidies (that debate will have to wait), subsidies represent a tiny fraction of the US food production marketplace. I therefore conclude the structure of food prices has more to do with The Invisible Hand than the subsidies, which are really designed to keep domestic production viable when it might otherwise disappear due to foreign government subsidies of their exports.
What does this all mean? Well, the Nutrition Nazis have long favored locally produced organically grown food, mostly for the wrong reasons. They want us to eat mostly vegetables because consuming animal products is wrong, because locally produced food deprives evil multinational agribusiness of revenue, and because organic processes respect the rights of insects and diseases.
The truth, of course, requires a little more discernment and won’t be as satisfying to the partisans. Locally produced food has the great advantage of being fresh and being close to the consumer. Freshness usually translates into higher nutritional density, and a shorter supply line means disruption is less likely and also the cost of delivery is lower. It almost always translates to higher prices, since the small farmer cannot reasonably compete with the large one in terms of price or efficiency. It also means that diversity suffers, since local production is likely to be more specialized. For the libs, this diversity-challenged farming approach really should be a deal-killer.
Organic would seem on the surface to make sense, but one challenge is the loss of efficiency that goes hand in hand with a reduction of fertilizers and pesticides that deter and or prevent plant death and disease. The lower efficacy of organic approaches lead to reduced crop yield, which has two consequences: lower supply and higher prices. The left’s obsession with organic has reached levels similar to the demagoguery that surrounded DDT for most of my life, only to be proven to be largely politically motivated.
There are some good reasons to choose locally produced and organic food. I enjoy knowing that much of the food we now consume here in Guatemala was produced within a short drive from where we live. This means that there are few risks to the food supply and less is spent on distribution and marketing. This, combined with a low cost of labor, is the reason local food is inexpensive. These are market-relevant factors, not politically motivated ideologies that run against market forces.
I enjoy organic food here because I know the people producing the food are concerned with the nutritional value. Those producers who are working to achieve size and beauty in their produce have an incentive to achieve these objectives without regard to the nutritional value. They may be sufficiently motivated even to chemically manipulate their produce in a manner that is unhealthy. Knowing that in the US there is some regulation of the food suggests that the manipulation is measured, whereas here I can have no such confidence. So organic is a reasonable choice-perhaps a gamble-that the nutritional density is greater. Add to this consideration that the organic grower’s concern for nutrition may translate into a more hygienic handling of the product and you have a formula which justifies the substantially higher price.
One final comment-US food prices have remained relatively low for a long time, despite record levels of crop failure and destruction (due to weather), increasing use of corn for alternative fuels (ethanol), and a booming, more affluent population in Asia, which translates into a much higher caloric intake. Were global warming true, this would likely solve the world’s food problem (longer growing seasons and a larger global production area), but as some of us have long suspected it is a total fraud, and in fact the earth is likely entering another little ice age, which spells further trouble for the global food supply, and means higher food prices for you and I.
Who Wants Free Electricity?
Posted by: | CommentsI’m inching closer to our first ‘Green in Guate’ program. We’re going to manufacture specially designed low wind vertical axis wind turbines. I have the technical specs, the skilled labor and the equipment.
This design is intended to generate electricity at relatively low speeds. It’s not your typical huge propeller-style wind project. These babies will work in a residential setting, and the data I’m getting from outside advisers suggest they could be perfect for Guate.
So…if you’re interested in following the details, please email me with ‘Green in Guate’ in the subject line. I’ll post occasionally here on the project but don’t plan on putting all the details here. And, I’m not sure whether there will be a business opportunity with this or whether it will end up being a non-profit endeavor, but I’ll let you know when I have a better grip on the financials and the market.
If nothing else I plan on getting a check from Electrica Empresa instead of the other way around…
More on Invest in Guate
Posted by: | CommentsYou all wouldn’t believe some of the stories I could tell after the last month of learning the ‘doing business’ ropes here in Guatemala. For those of you I’ve met in person I’ve said that Guatemala is a lot like the Wild West back in the 19th century. Well, it’s true; you can strike gold or you can get scalped or shot in the back. If you remember those old Clint Eastwood moves where people get shot on the street and bystanders just walk by like nothing happened, well, that’s what it’s like here (metaphorically).
Anyway, I think we’ve hit critical mass now as my circle of friends and advisors has grown and good things are happening, people are warning me off of certain other people, etc. When people email or call daily and say, “Mark, I have this idea, what do you think?” you know you’re doing something right.
Those of you who have previously requested to get updates should have gotten an update today on our latest endeavor, a neat opportunity in the recycling business.
Look for an Executive Summary on our first ‘green’ business in the next week or two.
Alternate Energy Guru Wanted
Posted by: | CommentsI’ve gotten deep enough into my due diligence on ‘Green Projects’ that I could use some outside help. There are some local guys with knowledge, but I need an objective third party, preferably someone with experience in implementation and not just theory.
Areas of research include:
Micro-Hydro
Low-Speed Wind
Solar
Rain Water Collection/Treatment
Compensation could be cash, equity in a possible deal, beer or good will. I can also tell you where you can get some pollitos cheap.
Email me if you’re interested at mark AT guateliving DOT com
Very Cool: Rainwater Collection System in Peten
Posted by: | CommentsJim in Huehuetenango is getting some competition from Jimmy in Peten in the expat adaption category. The
Will any neighbors follow suit?
latter has constructed a rainwater collection system. This is a big deal in most of the country because water delivery can be sporadic; just ask Expat Mom.
Rudy tells me that water in Guatemala is technically free, but that most communities charge for pumping and delivery. Nancy tells me that drilling a well can cost $50,000 or more, which is insane when you consider there is water almost everywhere in this country and skilled labor is about 2Q an hour, so rainwater collection makes a lot of sense. Go check it out!
Cooking With a Solar Oven
Posted by: | CommentsYou don’t have to be an environmental wacko to appreciate this: Anne at Rainforest Recipes has been experimenting with a solar oven and is posting her experience.
I’ve been evaluating this technology, along with a few local friends, as part of a potential business/non-profit
Photo by Anne Lessing
partnership that would provide the products for sale to consumers while benefitting locals who don’t have access to cooking.
Anne’s experimentation and reporting is very well-done and confirms what I’ve believed; under perfect circumstances it can replace your electric or gas-powered oven. She also has some awesome recipes and good local replacements for foods you might miss. Check it out!
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