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BREA backs new green power pay rates

by Barbados Today
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The Fair Trading Commission’s (FTC) recent ruling on the feed-in-tariff (FIT) for renewable energy technologies up to and including one megawatt (MW), has been praised by the island’s largest renewable energy organization.

In a statement, the Barbados Renewable Energy Agency (BREA) today gave its full backing for the FTC’s decision, which allows existing and potential providers supplying the national grid with energy from renewable sources with a firm guarantee for their investment.

According to the new FIT rate, a solar photovoltaic system up to 10 kilowatts (kW) will earn 42.75 cents/kWh; 10kW to 100kW gets 44.75 cents; 100kW to 250kW is 41.75 cents; above 250kW to 500kW 38.25 cents, and over 500kW to 1 megawatt is 36.25 cents.

The new FIT rate for a wind turbine generator up to 10kW is 39.75 cents and up to 1 megawatt is 38.25 cents. A biogas system up to 1 MW will fetch 44.25 cents, and solid biomass up to 1MW is 52.25 cents.

The move is expected to save $53 million over the next 10 years, while Barbados Light & Power (BL&P) customers should not see any increase in electricity rates.

The BREA said the FTC’s ruling was key to the continued development of the renewable energy sector in Barbados.

The green energy association also praised the regulator for allowing the input of green power industry figures to shape its decision.

“It is clear that the outcome of the decision was shaped by the contributions from the many different industry stakeholders through the consultation process, in which BREA also participated. Thus, credit should be given to the FTC for utilizing this approach, which we would encourage in the future as the sector continues to develop,” it said in the statement.

While BREA also supported the new rate structure, it said its success would be determined by how much investment it was willing to attract.

“BREA welcomes the new rate structure and views the decision as a progressive step towards improving the level of clarity and certainty in the sector, for both consumers and investors. However, the true test of the effectiveness of the new rates will be determined by the level of investment generated by this change,” it noted.

BREA acknowledged that queries had been made pertaining to some aspects of the decision, such as the capacity limits, as well as the absence of a rate for storage.

“Nevertheless, BREA is encouraged by this positive step forward and, after we have had the chance to fully review all aspects of the decision, will be seeking clarification from the FTC and the Ministry of Energy and Water Resources on those noted, as well as any others that may arise during our detailed review,” the statement said.

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