CUC urge equitable rollout of solar for greener economy
(CNS): Caribbean Utilities Company said it welcomed the publication of the Value of Solar Study (VOSS) that was released by OfReg last week. The power company that owns the electrical infrastructure on Grand Cayman and generates more than 90% of the power through diesel said it strongly supports increasing solar deployment in a manner that reduces bills and bolsters energy security for its customers.
CUC said it is “seeking to work with the next Government and OfReg to accelerate and enable the deployment of 129MW of solar energy by 2027, inclusive of rooftop solar”.
CUC had issued a Certificate of Need regarding this but the rollout of solar and other forms of renewable energy have been hampered by disagreements over how best to green the electricity supply.
In the VOSS, the independent authors found that the rate for the provision of solar to CUC via rooftop arrays should be paid at a rate of around 6 cents more than CORE or DER customers currently receive. However, CUC has always argued that it does not choose the rate since this is set by OfReg, and that in order for non-solar customers to get a fair deal as well, the rate has to be balanced.
When asked by CNS for comment in relation to the findings in the study, a CUC spokesperson said that it will be one component of future Feed-in Tariff (FIT) calculations or for alternative programmes that do not utilise a FIT.
“FIT will need to account for customer affordability to ensure fairness between the solar producer and all other consumers in sharing the total values calculated in this report,” the company said. “CUC does not set the rates for renewable energy programmes, and any renewable energy purchased by CUC from a customer or an Independent Power Producer (like the Bodden Town Solar Farm) is purchased at its prescribed rate and passed through to all customers with zero markup.
“Well-designed, low-cost solar power plants offer a compelling solution for the Grand Cayman energy market. Modelling shows that 3 utility-scale solar projects combined with storage could reduce annual fuel costs by $25m, which will directly benefit all consumers,” CUC stated, adding that the study highlights the value of solar energy for the Cayman Islands.
“It is critical that all households benefit from lower-cost solar, and that the transition to a green economy is managed equitably,” the power provider said.
With Cayman facing a very ambitious target for the transition to green energy, there are no indications that the country is anywhere near on track to get to the point of 100% renewables in just twenty years. But it is also aiming to get to at least 70% by 2037, even though the needle on the percent of power that is actually generated in Cayman through green sources of energy has barely moved in the last decade.
See the National Energy Policy and the VOSS in the CNS Library.
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Category: Energy, Science & Nature
Just as a point of information, to generate 129 MW of power, you would need approximately 355,750 solar panels, assuming each panel has a standard output of 365 watts. Further assuming one solar panel is 12sq.ft. you would need 4,269,000sq.ft to install all the panels. Now say the average football pitch is 6,000sq.ft. you would need 712 football pitches. Dr Joseph Finley, Cayman Brac
What’s your point?
We can spare a 0.15 square mile for renewable energy. Mount Trashmoore currently occupies that same area – check google earth.
But think of all the rooftops and parking lots you could cover with those panels…
Why isn’t the main government building (GAB) at least covered in panels? So much wasted potential.
Planning should mandate solar panels for new construction…but we all know that Planning board members are just out for themselves.
A great idea – But only if the solar rate is reduced so it doesn’t add more cost to my electricity bill please.
I like the idea of solar, but am also wary about the rates and cost to consumers. I have looked at the solar infeed rates for Hawaiian Electric, who a lot of people commonly compare us to. I have posted the link below. Looks like their solar rates vary from US$0.11 per kWh to US$0.20 (depending which island you are on) and there is no payment for any generation between 9am and 4pm.
So why are the rates here on our island way above this and costing us consumers money?
https://www.hawaiianelectric.com/products-and-services/smart-renewable-energy-programs/previous-renewable-programs/smart-export#:~:text=However%2C%20customers%20are%20able%20to,daylight%20hours%20is%20not%20compensated.
I perceive the bottleneck to be at the Regulator, rightly or wrongly. Per the article, “the rollout of solar and other forms of renewable energy have been hampered by disagreements over how best to green the electricity supply”.
Can OfReg please update/direct the general public to its targeted roll-out timeline for Cayman’s solar capacity? And, correct any misunderstanding of a regulatory bottleneck?
By not making quick and full use of solar, Cayman is squandering a natural competitive advantage.
Harness the power of the sun! Line the dual lane carriageways with canopy solar panels and use the marshlands for floating solar arrays.
Why does everyone’s light bill statement have a solar charge on it?
Even if you don’t have solar, there is still that charge that have to pay !
They might as well put the hurricane Ivan charge back there also?
My assumption is, when it gets cloudy, overcast or god forbid it rains . They have a spinning reserve that uses diesel fuel so the solar is irrelevant at that point in time
Why does everyone’s light bill statement have a solar charge on it?
The money that CUC has to pay to the rich people with huge solar arrays on their roof is recovered by passing it on to the rest of us.
This is very similar to the duty CUC has to pay government for fuel, as it is recovered from the customer.
Check your bill for solar charges in the last decade!
Why in the good heavens of hot sun do you get solar charges if you don’t even have solar?
Since you are paying for the people who do have solar. CUC pays the people with solar at the rate set by OfReg and this is then billed to everyone who doesn’t have solar.
Not sure I like the idea of higher solar rates for the privileged who can afford it.
I think that solar rates should be less so my bill will be less.
The UK regulator has just announced rates of 7.3 pence (CI$0.08) per kwh. Why are our rates here so much more and me as a consumer paying for it?
Bury those damn ugly powerlines
The company that has a local monopoly and has been using it to guarantee profits by fleecing people for years has issued a press release positioning itself as a benevolent party in the fleecing.
This is completely trustworthy and I look forward to seeing how the company changes it ways in a full 180.
Exactly. Monopolies behave in the monopolists best interest. Period. End of story.
Let’s allow competition into the utility marketplace including allowing legalizing starlink in the Cayman Islands.
Anyone can build generation here and it is not just CUC. I believe that OfReg runs that process to grant licenses.
Not sure about needing four or five power lines up my road for different companies to send me power. One set is ugly enough.
I think the critical part for me is the line ‘purchased at its prescribed rate and passed through to all customers with zero markup’. If CUC does not make any markup on the rates paid to people with solar then they don’t have any commercial skin in the game. Lower solar rates means lower electricity prices to all consumers who don’t have solar.
CUC will eventually screw everyone without Solar. If more persons opt to not be tied to the grid, then the power generated is not sold back to CUC but used by the individual’s household. In turn, CUC has less customers connected to the grid, so the costs are divided amongst less people, which equal to higher bills. You choose which way you want to be screwed.
Or someone can build some cheaper form of generation here so we don’t have to pay for expensive diesel or line the pockets of the people with solar on their houses. I think there is a place for both cheaper generation and solar that will benefit everyone and not just a few.
Go nuclear!
I looked at going off-grid, but the costs are excessive. Plus if I get a battery, inverter, or panel issue, or if it is cloudy for a few days then I am really stuck. It is certainly not economic at the moment.
I think my preference is for someone to build some cheaper large scale renewable generation here. I don’t know too much about electricity, but how can we reduce the reliance on expensive imported diesel.
So are you saying that CUC is making a profit from the solar rates? The article states that it is past through at no mark up.
They don’t mark up the costs. If solar rates go up the costs are passed onto the consumer.
What else would you expect CUC to say? The head man at CUC defiantly wants to see his brother get to be Premier so they will all tell lies to get the power, then screw us consumers. All about the dollars and how much the fat cats get back in dividends. Joey Hew is a sellout along with the rest of PPM.
Still with ROIs on residential PV array grid connected systems running at between 15 to 20 years where is the incentive? Until CUC is prevented from making a killing off of its solar customers the 2037 renewables target isn’t even a glimmer at the end of the tunnel.
The article states that the cost paid to solar customers is passed onto all consumers without a markup. If this is correct then your statement about CUC making a killing off its solar customers is completely wrong. They don’t make any money from them. It would be different if they were clipping the ticket. I would appreciate if you could explain your reasoning.
1. CUC stood in objection to this Value of Solar study and its findings since day 1. It refutes CUC’s historical claims and philosophy on what consumers should be paid for their solar energy. Don’t let this press release fool you otherwise.
2. As of today CUC are STILL standing against the release of other critical reports that are of keen interest to Cayman’s consumers and are in court right now fighting to keep those reports secret.
If CUC would like to refute either of the facts I have stated above just let me know. I have all the receipts.
James Whittaker, President – CREA
Morning James, I always enjoy reading your comments and had always thought that you are a great advocate for the renewable industry. However, I am now having second thoughts.
You are always punch-bagging CUC and pushing for higher rates for people with solar. I always thought this would be beneficial for Cayman. However, it appears from the article that CUC do not make any money solar rates since it is passed through to consumers at cost (no mark-up).
So is your pushing for higher rates and always bagging CUC really going to help the average Caymanian? Increased rates would mean more sales for your personal solar installation company and more money for your customers. People like me who don’t have solar will just have these costs passed onto us and my bill will increase. I am certainly keen for Cayman to be more renewable (other countries are getting there), but I am not sure that your push for higher rates is a good thing for Cayman as a whole.
Well said. You have my vote for lower electricity prices.
I got a quote for solar, but cannot afford it. Perhaps grants or someone offering interest free loans will help.
Hence CUC always advocating for more utility (large) scale solar plants with battery storage. The creation of these would be open to ANYONE under a competitive bid process organised by OfReg and granted to be best bidder.
The key concern is why has OfReg not done this work and arranged the competitive bid process? Why has it taken years for any bid process to be issued? What are they waiting for?
Your comments are a bit criptic. What are these other reports?
CUC’s policy has for years been to make it as difficult as possible for households to install solar and absolutely impossible for those households to obtain any financial benefit from doing so.
For the stonks
Morning JTB. Not sure I follow you. I installed solar through James’s company. Yes it cost a bit and took some time (something to do with supply chain issues with the panels or something), but they got there in the end. I was not aware of any hold up with the CUC or electrical inspection part of the work. Do you want to explain what you mean by CUC making it as difficult as possible?
Did you have the option to just keep your energy and not sell it back to the grid? Or do you have to be grid-tied and join the CORE program?
I sell back to the grid through CORE. The other option was to install a lot of batteries so I could go completely off grid. However, this was not economically viable. We have already had an inverter break and so having the ability to take power from the grid is very useful when the solar system has a problem.