OfReg proposes auction to attract green power

| 30/09/2019 | 36 Comments
Cayman News Service
Solar Farm in Bodden Town

(CNS): The Utility Regulation and Competition Office (Ofreg) has published a consultation document on a proposed renewable energy auction scheme to attract providers of renewable energy. The idea is to have procurement auctions that will promote the steady deployment of green energy and keep the market competitive. OfReg said it would issue requests from potential qualified bidders to start renewable energy projects that would meet specific goals.

In a press release about the new proposed scheme, OfReg said the successful bidders would enter into Power Purchase Agreement (PPA) with CUC with a guarantee to purchase all the power generated at an agreed price for the duration of the contract.

The regulator said the project would create stable long-term electricity rates, cleaner energy, reduce reliance on fossil fuels and keep rates as low as reasonably possible.

“The competitive bidding process supports the deployment of renewable energy whilst keeping electricity costs at bay for consumers,” said Gregg Anderson, Executive Director for Energy and Utilities. “The scheme when implemented, will contribute to Cayman’s transition to low carbon and environmentally sustainable energy supplies, in line with the National Energy Policy (NEP) goals. Additionally, as more renewables come online more homes will be powered by clean energy and more rate stability for consumers.”

It is hoped that the scheme will help the Cayman Islands achieve the target government set for itself in the national energy policy that 70% of the power consumed here will be from renewable energy sources by 2037. Given that only a small fraction of power is currently generated through green resources, government has a massive alternative energy mountain to climb in the next 18 years.

OfReg is urging the public, and especially members of the electricity business and other interested parties, to look at the consultation document and supply feedback on the proposed scheme by Monday 21 October.

The documents are available on the OfReg website here. Comments should be made in writing to the office 3rd Floor, Alissta Towers, 85 North Sound Road, George Town or via email info@ofreg.ky.


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Category: Business, Energy, Science & Nature, utilities

Comments (36)

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  1. Anonymous says:

    It’s fascinating to go over CUC’s SEDAR filings and find no mention of government fuel duty collected, or payables on to CIG (collected by CUC as part of our monthly bills), even while the smaller 1% regulatory fee is split out in it’s own line item.

    So in theory, the good customers of Cayman could stand to get their power cut to their home for neglecting to have paid any part of their bill, including what is an NRA Fund subsidy, and there still aren’t bike lanes that work.

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    • Pat Clarke says:

      Sparky’s response:

      CUC pays $0.25 cents duty which is included in the price of each gallon of fuel purchased from the fuel companies. This cost is passed on to the customer without mark-up. Fuel costs are a line item on the customer’s bill. All costs are approved by OfReg on a monthly basis.

  2. Anonymous says:

    OfReg allowed CUC to raise their prices 0.9% this past June, citing higher costs, even though CUC’s published Fuel Costs decreased 4%, and lube costs were down 3% on depreciating equipment, and with a net 6% increase in kWh sales.

  3. Anonymous says:

    If you want to shine the light in on the relationship between OfReg and Caribbean Utilities Co, just point your browser to https://www.sedar.com/FindCompanyDocuments.do and search for their August 2, 2019 MD&A document. Or search for diesel duty concessions in the Auditor General 2018 report.

  4. Anonymous says:

    How about duty free solar panels for home owners?

    • Anonymous says:

      In fairness, you’ll find that renewable energy equipment such as solar panels are in fact duty-free for residential homeowners, and have been for some time.

      Other energy-reduction equipment that are similarly-aligned. may not be…for example: the more energy-efficient tankless instant hot water heaters, 17-Seer a/c handlers, and the like.

      Bike lanes that are safe to travel in, is also a low-bar, still not met – despite having been part of the NRA budget and plan since 2015.

  5. Anonymous says:

    I’m going to bring in one of these babies!
    https://www.nuscalepower.com/

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  6. Anonymous says:

    Here we go again consulting and wasting money…Shut this down before we get in even more trouble..

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    • Anonymous says:

      Just to be clear, its a consultation, they’re not hiring consultants. They’re required by law to do it and there’s no cost. Anyone from the public can have their comments considered/included.

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  7. Elect to Abolish OfReg 2021 says:

    There’s already a company that signed a PPA nearly 2 years ago to provide 24/7 renewable power with no risk to CIG or public if it fails. What’s the matter OfReg did it not meet up to your handler’s (CUC) criteria? That is to say if it works would it be a viable technology to replace diesel generators entirely. Oops, can’t approve something that might upset the monopoly.

    You really need to go, the lot of you. Why are we paying through every bodily orifice for a pandering, defunct, redundant entity such as OfReg?

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  8. Anonymous says:

    they needt to bring in another company to compete with CUC. How about that ofreg?

    *crickets

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  9. Anonymous says:

    Another complete waste of time by an Authority that should be disbanded!

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    • Anonymous says:

      We’re not all ‘head in the sand’ climate change deniers like you. Anything which can increase the amount of renewable energy in Cayman is most certainly not a waste of time.

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  10. Anonymous says:

    OfReg is once again ahead of the curve in leading the renewable energy fight!

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  11. Anonymous says:

    What about the OTEC project? Can we not get that going meanwhile?

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    • Anonymous says:

      They can’t match (let alone beat) CUC’s current pricing. While its a great idea that I hope comes to fruition one day, consumers in Cayman are not interested in paying more for their electricity, even if it’s for the good of the environment.

      The project needs economies of scale that just aren’t available in Cayman.

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      • Let the truth be known says:

        Yes and CUC pricing is subsidised by CIG, which if not subsided would place many renewable technologies, including OTEC more competitive than CUC.

        This is borderline racketeering.

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        • Anonymous says:

          CIG does not provide a penny of subsidy to CUC, consumers do. Get your facts straight before commenting. If you’re willing to subsidize OTEC as well then let that be known. Maybe then it’ll be a viable business.

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        • Anonymous says:

          If you look at your bill, CUC subsidies Renewable Energy infrastructure, plus the CIG via Lic & Reg Fee, and Gov’t Fuel Duty. The latter is reason enough for CIG to be conflicted over energy-efficiency. The more fuel burned the better, as far as CIG receivables are concerned, and it shows.

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        • Anonymous says:

          From 2018 Auditor General Report, Page 31:

          “Gasoline and Diesel Duty decreased by around 64 per cent over the six-year period (2012-2018). It decreased significantly in 2015 and 2017. The Customs department told us that this was a result of the concession given to the Caribbean Utilities Company Ltd (CUC) on the duty rate paid for diesel; and a reallocation of $8mln each year to the National Road Authority’s road development fund.”

          http://www.auditorgeneral.gov.ky/powerpanel/modules/pressgallery/html/uploads/document/1559830683Customs-in-the-Cayman-Islands.pdf

          I guess the gov’t fuel duty line item we all still pay, gets diverted to the NRA, and we are made to subsidize CUC fuel. Another Unity accounting shell con in action!

          • Anonymous says:

            You idiots. Fuel factor is billed separately on your CUC bill. The CIG concession lowers cost for consumers not CUC

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            • Anonymous says:

              Fuel Duty is another line item on the bill…but it’s not collecting duty that has been waived, it’s funding the epically mismanaged NRA fund.

      • Anonymous says:

        Yes I suppose it is cheaper to let our government to keep lobbying to keep CUC in business burning fossil fuels. Just wait for another Middle East terrorist attack on oil infrastructure then we’ll all be swallowing that astronomical fuel surcharge.

        Yes we’ll all be captive slaves to CUCs ever increasing rates while they and OfReg call the shots.

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    • Anonymous says:

      6:31 OTEC doesn’t work. It will never produce safe, commercially viable power – get used to that and move on. The people promoting OTEC are little more than scammers trying to cash in on the green energy boom.

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      • Anonymous says:

        Pile of Baloney! The technology was first proven in the 1930’s try and Google it.
        This is a refinement that has more output but the basics are the same.

      • Anonymous says:

        The inlet and outlet valves, and the entire circuit (both ways) of piping would be clogged with barnacles and other efficiency-impairing sea life in months – maintenance costs to remove and clean exceeding any power generated.

        • Anonymous says:

          So enlighten us as to how deep the intake pipe southern drawing from. I hardly think there are any plankton at that depth. And at the rate water is flowing any barnacles would need to have some darn good super magnetic properties to adhere to the pipe wall.

          Please do keep us amused with more of your bathtub science from primary school.

          • Anonymous says:

            Makai, the most robust OTEC project in the history of mankind, generates a measly 100kwh in a good year, enough to power just 120 homes. Even with US Navy and Lockheed involved, maintenance is super high and temperature displaced water alters ecosystems in both inlet and outlet zones. Good idea in theory, maybe you can improve it with your gifted genius.

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