Light & Power wants comprehensive regulatory reform

Following the parliamentary debate on the Utilities Regulation (Amendment) Bill, Barbados Light & Power (BL&P) Company is advocating for comprehensive regulatory reform.

The company believes that the Bill is specifically crafted to facilitate a competitive procurement process for storage systems and potentially address regulatory inefficiencies that have impeded timely investments crucial for supporting the growth of renewable energy.

In a released statement, the company pointed to the necessity of a fair, balanced, timely, and independent regulatory framework to effectively address the complex issues facing the electricity sector.

BL&P added that their proposed framework should offer transparency and encourage stakeholder engagement. However, it said to achieve these objectives, the Bill must be complemented by more comprehensive regulatory reform.

Highlighting its role as a leader in renewable energy transition for over a decade, the company noted the launch of their Renewable Energy Rider in 2010, facilitating the interconnection of customer-owned solar PV, which continued with plant and grid upgrades exceeding $800 million.

As a result, the company’s grid has seamlessly integrated a high level of renewable sources, ranking the island among the top 10 globally for solar photovoltaic (PV) penetration.

During this period, Light & Power said they have conducted several studies assessing the impact of increased solar PV on grid resilience and reliability.

The company pointed out that these studies, shared with the Government and the Fair Trading Commission (FTC) years ago, underscored the need for substantial battery storage and other equipment to support higher levels of solar photovoltaic.

Although they installed battery storage in 2018, currently supporting existing connected solar PV, the company emphasized the need for more storage to sustain continued solar PV connections.

Expressing eagerness to proceed with purchasing additional batteries and associated equipment to meet the Government’s ambitious 2030 target, the company acknowledged being mindful of the impact on the cost of electricity.

They highlighted that the batteries alone will cost as much as the current value of Light & Power.

The company disclosed that they have recently applied to the FTC to recover the costs of installing additional battery storage and other equipment required to meet the Government’s energy policy targets.

While renewable energy serves as a hedge against future oil prices, the company acknowledged stakeholder concerns over the modest rate increase recently requested (the first in 13 years), raising questions about customers’ willingness to bear the additional costs associated with achieving policy goals.

(RT/PR)