OfReg clears more domestic wind, solar power

| 06/12/2021 | 27 Comments
Cayman News Service

(CNS): The utilities regulator, OfReg, has cleared CUC to interconnect with another 3 mega-watts of power generated by domestic rooftop solar and small wind turbines under its Consumer Owned Renewable Energy (CORE) and Distributed Energy Resource (DER) programmes. Applications opened Monday and available power is expected to be snapped up quickly given the continued popularity of both programmes.

OfReg said that adding the capacity to the grid before CUC rolls out its battery project was essential to the continued promotion of both the programmes, offering “stability to both consumers and the industry”.

CUC Vice President Customer Services and Technology, Sacha Tibbetts, said CUC supported the decision taken by the regulator. “This additional capacity will give more customers access to the CORE and DER programmes and we anticipate that we will see an increase in the number of customers who will sign up,” he said.

CUC “anticipates that the extension to the programme will be rapidly taken up by our customers and will assist in our goal of reducing Grand Cayman’s dependence on fossil fuels”, he said, adding that the power company “remains committed to promoting and developing renewable energy as a source of electricity generation”.

Programmes like CORE and DER “play an important role along with utility scale projects”, he said.

Even with the additional 3MW, however, Cayman remains far short of the ambitious national energy policy target of generating 70% of power from renewables by 2037. Currently, only around 5% of power generated in Cayman comes from green sources.

To date, just 674 of CUC’s 32,000 customers are connected to CORE, generating 7,667.31 kilowatts, providing a total CO2 reduction of approximately 6,958 tonnes per year.

The DER programme was introduced in January 2018 and allows customers to consume electricity generated by their own renewable energy system. Under the DER programme customers are also able to sell to CUC any excess electricity produced and exported to the grid at an avoided cost-of-generation credit rate.

“Incorporating the lessons learned by other jurisdictions from early net metering programmes, DER customers are billed with a demand rate structure. The use of demand rates aligns the fixed costs of providing a grid interconnection and standby provision to the customer with demand charges, avoiding any potential cross-subsidization between DER and non-producing customers,” CUC said.

During this latest application for customers, the rate mechanisms for the DER programme will remain unchanged. The recently established CORE Feed in Tariff rates published during the last capacity reallocation determined a rate of $0.175/kWh for solar PV systems 5kW and below and 15 cents for systems between 5kW and 10kW which will apply to this release.

Core has allowed customers to connect small scale solar systems or wind turbines to CUC’S distribution system and to reduce their monthly energy bills by generating their own electricity while remaining connected to the CUC grid.

But this is subsidized by non-CORE customers as the rate paid to CORE customers for their electricity production is higher than the cost CUC would normally incur and charge to customers for the same energy from other sources, officials said.

CUC said that it is working through the implementation phase of the Integrated Resource Plan, supporting Grand Cayman’s energy generation plans for the next 30 years.


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Category: Business, Energy, Science & Nature, utilities

Comments (27)

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  1. Anonymous says:

    The entire island should be solar powered.

    Why are these environmentalists in government burning oil to power this tiny nation?

  2. Anonymous says:

    I have been telling people for years, CUC is only for Profit. The only reason they are ”Down” with solar is because they don’t want to lose on valuable cash! They are in bed with the government, planning dept, ofReg and local island solar providers, they all get a cut.

    As soon as you mention you want to be independent or off grid they look at you as if your are committing a crime!

    The local solar companies hit you with unreal prices based on BS jargon that makes no sense.

    unfortunately the best way to go solar and off grid is on the ”hush” as some of you readers may know, my house is 100% of the grid and has been for the last 5 years, no hick ups, no power failures, no premature batteries drainage. Its been great. I wont say more since I don’t want to shoot myself in the foot. Do your research, there are great Chinese, European companies that provide full ”plug in and go” systems all pre assembled for 10, 15 grand ( depending on size you need) import your system in, learn how to install it all and you will be fine. There are ways out of this CUC monopoly !!

    • Anonymous says:

      Is there a way for me to only take a little from CUC when and if I need it but never send them any back, ie send my excess to ground?

      • Anonymous says:

        What you can do is, have your solar grid and a separate grid from your cuc grid. or you can install a manual or automatics transfer switch so you can decide what power to use.

  3. Rodney A. Barnett says:

    Only two quick comments today:

    1: OffReg is only in place to protect monopolies, provide high-paying jobs for elites formerly or currently connected to the government, and protect high returns for well-connected investors.

    2: Ensure business and the population of Cayman cling to old-fashioned, dirty, and environmentally insensitive energy systems.

  4. Anonymous says:

    Net Metering. Full Stop.

    Everything else is underpinning the monopoly and mere window dressing surrounding keeping the citizens and residents “in their place”.

    There was a time when a very large telco on island would cut you off for using “Skype” when that was new and a threat to their landlines. That monopoly was eventually broken up and we all got better and cheaper (though still way too expensive) service.

    Break up the monopoly and render electricity generation from distribution. No caps on home produced electricity. Every roof on island should be an income earner for residents. No ifs, ands or buts.

    • Anonymous says:

      Telephone service might be a bit cheaper but certainly not better. When C & W was run by Caymanians their customer service was great.

    • Guido Marsupio says:

      Net metering is bad policy. It has the rate payers subsidizing the solar panel owners because the rate payers shoulder the entire cost of the infrastructure. CUC should buy back excess from panel owners at their cost of generation (cost of diesel) in order to be fair. The current buyback price is a rip-off.

  5. Guido Marsupio says:

    OfReg should consider other technologies than batteries for the renewable energy storage project. Lithium batteries are a terrible solution for utility scale energy storage. Underwater energy storage (think pumped hydro, except underwater) is a viable option. Have a look at these: https://www.offshoreenergystorage.com/
    and https://dspace.mit.edu/handle/1721.1/78934

  6. Close OFFREG says:

    I’m sure everyone got this information at the same time. You know, to keep it fair.

    • Beaumont Zodecloun says:

      It is good to have dreams.

      This time, more than ever, a person is measured by their ability to adapt.

  7. anon says:

    I have to say that OfReg is the national leader in the production of Domestic Wind.

  8. Anonymous says:

    Headline should be “OfReg Actually Did Something”…albeit an inconsequential stroke of a pen!

  9. Anonymous says:

    I could build a house for what I have been quoted to go off grid with solar. This little dribble would make no difference. The cost of solar installation here is outrageous. It would take 30 years to recover the cost of equipment that had died 20 years before.

    • Anonymous says:

      Agree. Factoring capital costs (without hurricane insurance) it makes no economic sense to install solar. There is however the feel good factor about saving the planet. The return on any conservative investments with $20K over the next 10 years is far greater than CUC savings, if any.

      • Anonymous says:

        So are saying that cuc prices are not that bad or that the installing companies are charging too much?

      • Anonymous says:

        unfortunately, we are not really saving the planed either, yes we would cut back on harmful gasses, however there is a great documentary online” Planted of the humans” that shows the cons of solar panel making process, they require some of the part to be mined, there are dumps in China and India bigger than GT dump just with broken solar panels. it makes you think.

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