Red Frog: Off-Grid Island Resort
“It’s the right time to invest,” said Gerardo Aguilar of MGM Innova Capital. “We want Red Frog to be ready for the turnaround!”
Red Frog Beach Island Resort on Panama’s Bocas del Toro archipelago, was designed in concert with nature. “When we founded it 17 years ago, our goal was to be socially responsible and environmentally sustainable,” said CEO Joseph Haley. “Our first steps were to preserve 80% of the property as a nature preserve and establish a foundation to improve the lives of the people who live in the nearby community. Then we built a beautiful eco-conscious property that has more natural forest than when we started.”
In 2015, Frontier Energy’s Energy Insight team conducted a comprehensive certification process that made Red Frog the first Panamanian destination to be Green Globe certified. “The resort had to meet 340 criteria, including sustainable management, environmental practices, social and economic elements, and cultural heritage,” said Energy Insight’s Tanuj Gulati.
The resort is not connected to Panama’s electrical grid. “We have to generate our own power,” Joseph said, “and as you can imagine, a vacation resort has significant electrical demands.” That’s where Gerardo comes in.
MGM manages private equity funds to implement projects that can mitigate climate change while generating financial, social, and environmental benefits. “We started working with Red Frog and Costa Rica-based Verde O Nada to reduce their need for diesel,” Gerardo said.
“The first step was to add solar and integrate it with the diesel generator to create a microgrid. It reduced fuel by 40%, but solar only provided about 20% of the energy needed,” said Verde O Nada’s Michael McKuen. “Then we worked with Energy Insight to increase efficiency by installing LED lighting, new HVAC, pool pumps, and more efficient controllers.”
Early in 2020, the team started working on the next step of Red Frog’s energy independence by adding 1.7 MW of solar and a 4 MWH battery storage system. “Verdo O Nada already manages Red Frog’s microgrid and the BSS will be one more tool to use,” Michael said. “The BES will substantially reduce Red Frog’s energy costs even as the owners repay the investors.” Joseph added, “These DER assets add value for our villa owners now and in the future.”
When the COVID crisis hit, Panama closed its airport and tourism stopped. The team didn’t even consider slowing down the project. “This is the best time to do it!” Gerardo exclaimed, “The resort is empty, so guests won’t be bothered. The construction workers can stay in the student housing to avoid the boat commute to the island.”
“It’s a heavy financial investment, even in a booming economy,” Gerardo said. “We’re bullish that tourism will return, and our technology will provide clean energy for Red Frog’s owners and visitors,” Michael added.
“There’s no better time to do this,” Joseph said. “We are starting to receive requests for long-term villa rentals. If you’re working from home, why not work from paradise? Long-term, it’s a smart and responsible investment for our resort and for the environment.”
Originally written by Chris White, Frontier Energy — https://frontierenergy.com/blog/#red-frog-off-grid-island-resort
