Renewable energy industrialist Ralph Bizzy Williams has welcomed new rates energy providers will be paid for selling power to the Barbados Light & Power Company (BL&P) as a much-needed shot in the arm for the industry.
In a decision handed down today, the Fair Trading Commission (FTC) announced the introduction of a new Feed-In-Tariff (FIT) arrangement that will run from October 1 to December 31, 2021, or until the new capacity limit of 32.7 megawatts runs out.
Individuals or commercial entities that sign up for the FIT programme will be able to provide energy from solar, land-based wind and biogas or anaerobic digestion, and solid biomass.
The new FIT rate for solar systems up to 10 kilowatts (kW) is 42.75 cents/kWh; solar systems above 10kW to 100kW is 44.75 cents; solar systems above 100kW to 250kW is 41.75 cents; solar systems above 250kW to 500kW is 38.25 cents; while solar systems over 500kW to 1 megawatt is 36.25 cents.
The new FIT rate for wind up to 10kW is 39.75 cents; wind above 10kW up to 1 megawatt is 38.25 cents; biogas systems up to 1MW (megawatt) is 44.25 cents; and solid biomass up to 1MW is 52.25 cents.
This is a hefty rise from $0.416/kWh for solar photovoltaic electricity, and $0.315/kWh for wind energy under the Renewable Energy Rider (RER) programme that was introduced in 2010, with a maximum capacity of 24 MW for customers and 10 MW from the utility company.
Williams thanked the FTC for completing the research and delivering a decision in less time than anticipated.
He said: “I would like to applaud the FTC for completing this task in several weeks less than we believed they would take.
“I believe the rates are bankable and will result in additional investment between October 1 and December 31, 2019.”
But the business mogul expressed disappointment at the allocation of the MW size to the various categories for energy production.
He claimed his firm, Williams Renewable Energy Ltd, could install as much as 40 MW solar photovoltaic systems.
He explained: “We would have liked at least twice the allocations and also another column of rates if battery storage is added, equivalent to say, six hours of the output of the systems to which the batteries are connected.
“This, I believe, will allow far more renewable energy to be generated without destabilizing the grid, especially on rainy days.
“With batteries installed with the right switchgear, it would also allow systems with batteries to have electricity at reduced levels after a hurricane when there is no utility electricity available.”
In a brief statement, BL&P acknowledged the decision. It said: “The FTC facilitated consultation and Light & Power participated in the process.
“The decision has just been received and therefore the company is in the process of reviewing it.”
The FTC said it carried out extensive research, consulted industry “stakeholders” and informed the electricity company of the decision on Monday. [email protected]
