In Haiti, philanthropy could lead to profits for NRG Solar

NRG Energy volunteers in Haiti

NRG Energy volunteers working in Haiti

A startling encounter with a young boy got David Crane, the CEO of NRG Energy, hooked on Haiti.

It was his first night in the Caribbean nation, months after the 2010 earthquake that killed more than 200,000 Haitians and destroyed 250,000 homes and 30,000 businesses.

As Crane tells the story, he and his daughter, who had traveled to Port au Prince to volunteer with the Clinton Global Initiative, left a cocktail reception to return to their hotel when she said, “Daddy, there’s a body under the car.”

A security guard gently kicked a boy of about 10, who emerged naked from beneath their SUV.

“This kid looked up at me,” Crane remembers. “There was no life in his eyes. No hope. Complete nothingness. I was so shocked. There were any number of things that I could have done for that kid. I just stood there and did nothing, except act like a dumb American.”

Since then, Crane and NRG Energy, its suppliers and its employees have done a great deal. He’s been back to Haiti a half dozen times, often accompanied by his wife and five children. NRG  made a $1 million commitment through the Clinton Global Initiative and  in partnership with Solar Electric Light Fund (SELF) to bring solar power to rural areas of Haiti.

“I didn’t mean to get so emotionally caught up in Haiti, but I did,” he told me, when we spoke by phone the other day.

Now, Crane says, he is hoping that what began as a charitable initiative will demonstrate the power of solar energy to spur economic development in poor countries. It could also help create business opportunities in the Caribbean for NRG.

“The basic idea is demonstrate the flexibility of solar, particularly in distributed applications, and the difference it could make in a country that does not have a functioning electricity system,” he said.

In the last couple of  years, NRG and its partners have installed a number of small-scale solar systems in Haiti, which suffers from an unreliable electric grid as well as high energy prices. They have completed projects at 20 schools and at a fish hatchery known as the Lashto Fish Farm. Their solar panels help power a drip irrigation system supporting agricultural production in Haiti’s Central Plateau. The company also installed panels at an orphanage run by the nonprofit Partners in Health.

feature_content_img_hospital_solar_01On Crane’s most recent trip in mid-March, NRG volunteers installed solar panels on a number of buildings in a hospital complex known as the Hospital Bernard Mevs. Power there is so unreliable that medical personnel are sometimes forced to use headlamps and flashlights to operate and care for patients who need medical attention after the sun has gone down, according to this post on NRG Solar’s blog. Solar power will help hospital red its $60,000 monthly energy bill.

This is all to the good, but what will be the payoff for NRG Energy, a publicly-traded company (2012 revenues: $8.4 billion) that has to answer to shareholders?

One benefit is employee motivation. Dozens of people to volunteer in Haiti. On the company blog, staffers described the trip as life-changing. One wrote:

Just to see everything, all they go through, and they don’t complain at all. People were standing in line for hours – almost the whole day – waiting to see a doctor at the hospital. We complain after 20 minutes if our doctor is late for an appointment. It just really puts into perspective all that we have, how little they have and how much our presence there and this project was going to mean for the people of Haiti.

Says Crane: “Every NRG person who’s been down there has come back feeling as committed to the project as I am.”

Beyond that, Crane sees business opportunities. So far, all of the company’s work in Haiti has been charitable, but NRG is pursuing solar projects elsewhere in the Caribbean, including Puerto Rico. Throughout the region, electricity prices are high–as much as 50 cents per kilowatt hour, nearly five times what the average American pays.

“We see significant opportunity in the Caribbean,” Crane told me. “We’d like to be involved.”

David Crane and Bill Clinton

David Crane and Bill Clinton

A recent report from GTM Research said that Latin America and the Caribbean will install more than 450 MW of grid-connected PV this year, compared to less than 100 MW in 2012. Most of that will be in Mexico, Chile and Brazil, but Jamaica and the Dominican Republic are considered attractive markets, too.

In fact, some people see enormous clean-energy potential in the Caribbean. Last year, at a conference called the Sustainable Operations Summit, Bill Clinton said: “Almost every country in the Caribbean could be completely energy independent with solar, wind, geothermal and biomass.”

Not long after, the government of Aruba announced a plan with Sir Richard Branson and his nonprofit Carbon War Room  to make the island “the world’s first sustainable energy economy.” The Carbon War Room’s Smart Island Economies project intends to generate private investment to help islands move away away from fossil fuels.

Imagine if Clinton, Branson, Crane and others got together to bring clean energy — profitably – to the Caribbean.

Comments

  1. “Imagine.The image I see creates reality.” There is a little solar gizmo I backed on a crowd funding site for an inexpensive donation that provides light for children in Haiti for 24 hours. It is the size of a cell phone. Imagine what support from Sir Richard Branson and all you’ve mentioned would accomplish together.

  2. What a great story! Very uplifiting, good for them! Thanks for writting…

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