Energy is the real foundation of economic development

IF we are serious about economic development, we must start with an uncomfortable truth: nothing modern functions without reliable, affordable energy. Every thriving economy — past or present — rests on a stable power system. Without it, businesses stall, costs rise, and quality of life declines.

Today, energy discussions are dominated by one phrase: green energy. Solar panels, in particular, are often marketed as a cure-all — environmentally responsible, economically sound, and politically attractive. But slogans are not strategy, and good intentions do not replace physics.

Before we rush headlong into large-scale solar projects, we should ask some basic questions: Can solar provide reliable power 24 hours a day? What happens at night, or during long rainy seasons with heavy cloud cover? And most importantly — will it actually lower electricity costs for residents?

Solar panels do produce power under cloudy conditions, but at a fraction of their rated capacity. A 400-watt panel does not consistently deliver 400 watts. And when the sun goes down, production stops entirely. That reality does not disappear because we wish it away.

Which brings us to the unavoidable issue of backup power.

Even with widespread solar installation, diesel generators must remain online to regulate voltage, compensate for dips in production, and provide uninterrupted service. In other words, solar does not replace diesel — it supplements it. The fuel costs, maintenance, and pollution remain.

Supporters often point to battery storage as the solution. Industrial-scale batteries can help, but they are expensive, land-intensive, and have their own environmental and disposal issues. They also do not eliminate the need for backup generation.

If solar is truly about saving money, then we must ask: who is actually saving? Many homeowners with rooftop solar still pay substantial monthly power bills through third-party providers. The promised savings often fall short.

Meanwhile, we ignore one of the biggest drivers of high energy use: inefficient buildings. Many homes here are uninsulated concrete structures that trap heat all day and radiate it back at night. Air conditioners work overtime and power bills soar. Lowering energy demand through smarter construction would do more to reduce costs than any single solar project.

There is also a larger question of scale and control. Why invest millions in massive solar fields when we could encourage distributed solar panels on homes and businesses with net metering? This approach would reduce infrastructure costs, empower residents, and spread generation across the grid.

Yes, it would challenge the current utility revenue model. But utilities exist to provide essential services, not to protect outdated structures. If the goal is reliable, affordable power, then systems must adapt.

Looking ahead, we should also be honest about better long-term energy options.

Geothermal energy, for example, is renewable, reliable, and operates 24/7 regardless of weather. Its physical footprint is small, its emissions minimal, and its output stable. Small-scale nuclear reactors — if regulations evolve and technology continues to mature — also deserve serious consideration. These are not futuristic fantasies; they are proven concepts advancing worldwide.

Every energy system has inefficiencies. Energy is always lost in conversion, transmission, and distribution. But solar’s intermittent nature makes it uniquely dependent on backup systems, which limits its economic benefit.

If we could significantly lower electricity rates, the impact would be transformative. Businesses that rely on affordable power could operate here. Families could afford basic modern comforts. Quality of life would improve. Economic growth would follow.

Shipping and logistics will always be challenges of island life. Energy costs do not have to be.

Continuing to rely primarily on diesel generation is neither environmentally responsible nor economically sustainable. But pretending solar alone will fix the problem is equally misguided.

If we truly want a strong foundation for economic development, we must stop chasing political slogans and start confronting reality. That means honest analysis, diversified energy sources, and policies grounded in engineering and economics — not wishful thinking.

Energy is not just another issue.

Energy is a major issue.

 

DEL BENSON
Saipan, CNMI

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