OfReg’s ‘solar bid’ was meant to replace CON
(CNS): CUC delayed submitting a certificate of need (CON) for more fixed generating power because OfReg had planned to solicit bids for an additional 22.5 MW of solar as an alternative in 2021. CUC told CNS that OfReg had accepted the alternative proposal and agreed it was more appropriate than a traditional CON. However, CUC has been blamed for delaying its CON and will now have to provide more than 120MW using fossil fuels.
“OfReg undertook to run a competitive process to procure these services, and therefore it would not have been appropriate to issue a traditional CON at that time, given OfReg’s undertaking to procure the DPV plant,” CUC said this week after the dispute between OfReg and CUC over the definition of fixed power resulted in a massive blow to greening the power grid.
An appendix to CUC’s Main Agreement with the government describes the process of issuing a CON, including the evaluation of alternatives, which CUC said was the case in 2021 when the regulator announced plans for the open solar bid. However, that solicitation has not been completed and is still under competitive bid.
But CUC is now in need of more capacity as many of its diesel engines are coming to the end of their lives, while the demand for power keeps growing as the population in Cayman soars and new hotels and condos are being constructed. CUC had wanted to use solar with battery storage for this replacement and new generation in order to meet the goals of the government’s ambitious national energy policy, but OfReg has rejected that
“CUC provides below clear and convincing evidence that it has considered all reasonable alternatives to the addition of new generation for firm capacity, including energy efficiency, renewables, unit life retirements or extensions on an economic basis, and other forms of generation, and demonstrates why CUC believes that new generation is the optimal way to satisfy customer demand,” the company said after their bid to use solar to fill this generating need was turned down by OfReg for what appears to be bureaucratic reasons.
CUC said the 2024 CON submission highlights the commitment to pursuing renewable energy as an alternative to the traditional thermal generation the country has used and to advance the National Energy Policy goals.
It is not clear now what will happen with this impasse and whether or not the new government will step in to ensure that CUC can use solar plus batteries as a means of replacing old and meeting growing energy demands. The current trajectory of acquiring new diesel generators will set back the goal to achieve 100% green energy by 2045, given that the generators have a lifespan of well over 25 years.
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid
Category: Business, Energy, Science & Nature, utilities
A wonder if a deeper review of the OfReg members (employees and board) will reveal subtle ‘conflicts’ of interest when it comes to big topics like solar, gas, broadband fiber etc? Could wider business and social associations that show up in their ‘non-OfReg’ dealings and social posts reveal anomalies? Are these so-called ‘board members’ trying serving the best interest of the nation vs their own long-term business plans? Just asking for friend ….
Seems like the first task for the new government is to get rid of Board Chairman Sammy!
OfReg, for all their faults, are governed by a Board, and when the Board Chairman makes sure that bids do NOT go out because CUC is in the best position to win the bid we all lose.
The article says this decision was from 2021…was Sammy on the Board then?
He wasn’t Chairman, and OfReg supported moving forward with competitive solar. He became Chairman, and the solar has ground to a halt. Tells you all you need to know about the prospects for cheaper renewable energy under Sammy.
CHEAPER? Don’t make me laugh!!!! CUC HAS NO INTENTION OF MAKING ANYTHING CHEAPER- If you actually pay attention to offreg then you know that this entire article is incorrect.
Looking at the facts rather relying on hearsay will certainly provide clarity. Large scale solar with storage will save about $25m per year compared to a thermal option – and that is without any wild variations in diesel (or gas) pricing.
Perhaps an investigative journalist could look into the real facts and present what they find – rather than people just making statements.
#defundofreg
Clean house…we need regulators that work for and serve consumers not the private sector monopolists.
Lets see how fast the new Government will handle such issues. We your supporters are watching! Off Reg needs to go and so does the attorney general and so does the incompetent overseer of the civil service Franz.
I want to see, i am waiting to see, and if i see more of the same, you lot can rest assure you will be history after 4 years. Maybe one or two will survive.
The more things change the more they stay the same, so prove to me mess like these will not be tolerated.
Those are senior important roles in the wrong hands. Let’s agree they need new hands, but not no hands.
shambolic incompetence on all levels.
any comment mrs governor?
Long before her time.
Solar is not a solution unless you are also building a massive battery storage facility. Solar does not add to base load power.
“CUC had wanted to use solar with battery storage for this replacement and new generation in order to meet the goals of the government’s ambitious national energy policy, but OfReg has rejected that”
I believe the OfReg solicitation was to be for solar and storage, not just solar.
Your statement is not correct. Almost all utilities around the world are using solar combined with storage. Renewable and cheaper bills.
Do you know what really caused the outage in Spain?
Grid-leveling and battery storage are part of solar plans everywhere else on Earth. As are competitive transparent quotes on land procurement, equipment, and installation purchases for solar projects using public private partnership money.
CUC blame OfReg, OfReg blame CUC, the Govt stand on the sidelines and watch and so the circle goes around and around for years. No one is blameless and the truths and half truths are buried in countless submissions and contracts. What is clear is that Cayman and the consumer will pay the price and continue to burn fossil fuels whilst ignoring the natural alternatives available day after day. It is shameful.
Can the newly elected step in?
All it will take is a good independent review and the truth will come out. Trouble is who will do that who does not have any conflict?
If “For Caymanians”, as advertised, CNFC should waste no time appointing a sophisticated new Cabinet-advisory level “Consumer Rights, Service and Utility Regulation” leadership position – maybe a Financial Secretary as a Czar position for Dan Scott. There’s no doubt our consumers are being ripped-off every which way, with very little recourse. In many cases by foreigners and foreign-owned service providers/stakeholders. The CUC licensee must remain in compliance with changeable CIG regulations, which should remain amenable to the adoption of new technology, meeting CIG-established energy transition deadline targets, not least of which, including non-negotiable consumer deliverables. If Fortis (Bermuda) doesn’t like it, they can take a hike and forfeit their license. Apply that same thinking for licensed territorial telecoms, banks, grocery stores…there exists an overly-exploited social responsibility gap that is long overdue for deliverance.
Conflict includes CUC shareholders
You just nailed it!!!!
Fortis Bermuda being the anchor investor.
@CNS here’s are some additional facts.
1. CUC has tried to get OfReg to approve these solar farms WITHOUT any competitive tender process for years, calling OfReg’s competitive process “costly” despite that being the law.
2. CUC has also gone out and purchased 100’s of acres of land WITHOUT OfRegs approval and specifically for solar farms YEARS ahead of the issuance of any competitive RFP by OfReg to gain a huge competitive advantage over the rest of the market before anyone else even sees the details or how much land is needed. The law requires ‘fair’ competition and OfReg must uphold the law.
CUC is demonstrably rigging the game to gain an unfair advantage of its competitors in utility scale renewable energy to gain a defacto monopoly forever.
I have all the docs to evidence this if you care to see it.
My neighbor owns lots of land. Does that make him have a competitive advantaged compared to everyone else if he decides to build solar on it?
What is important to me is if CUC has purchased land and the cost passed onto us consumers. If they have then they should have had some approval from the regulator. If their purchase of land has not been passed onto consumers then that is fine and no approval is required. Perhaps someone who knows about these things can comment.
Any new generation will be tendered by OfReg. If CUC can build solar cheaper than other companies that is a good thing for us consumers.
I believe that OfReg firmly told CUC back in 2001 that they cannot just go out and build solar generation. It needed to be competitively tendered. OfReg committed to run that tender.
So based on the facts your first comment is not correct. They asked once – were told no, and OfReg are still running their competitive process.
*2021
I believe that OfReg firmly told CUC back in 2001 that they cannot just go out and build solar generation. It needed to be competitively tendered. OfReg committed to run that tender.
OfReg said in 2021 that they would be tendering for more solar capacity, and four years later they still haven’t issued the tender. Why?
Mr D owns much more land than CUC. Does that mean that his company and anyone else who owns land to be excluded from building solar.
As a consumer with limited money I would prefer the company with the cheapest offer for new electricity generation to win – then my bills can be reduced and my cost of living is not sky rocketing.
If grid scale solar with batteries are built then the price of electricity will drop (I’ve read that savings will be around $25m per year). If the price of electricity reduces then the rates paid for house solar systems will come under pressure to be reduced too. Currently a premium is paid for house solar that I pay for on my bill. That will push the profit down for people with house installed solar. Mr Whittaker owns a solar company that installs house owned solar – so anything that pushes the price of electricity up is good news for his sales. Installing cheaper grid scale solar is very bad news. I think Mr Whittaker should declare his conflict of interest.
Seeking to approve a solar farm without competitive tender…
https://www.caymancompass.com/2023/03/21/solar-powered-container-farm-faces-regulatory-hurdles/
This you?
Talk about the pot calling the kettle black.
“Meet the new con, same as the old CON”
Sonji Myles is way out of his depth. The whole of OfReg needs to go…what a waste of time and space.
Endless mismanagement at all levels, the dump, airport, pier, schools, CUC the list is shocking but not surprising.
CUC planning to shut down their old diesels, OfReg not progressing the 2022 solar procurement and creating an electricity shortage, and limited options for cheaper renewables being built since OfReg have announced plans to tender new thermal plant. So the lights may go out and future bills will be more expensive (at the mercy of diesel or gas prices). It is not looking good!
It appears that CUC proposed a solution for future power using solar rather than thermal and I read last week that OfReg have opted for a thermal option that will cost consumers $25m more a year.
I don’t know anyone who would not want their electricity to be cheaper – especially with the current cost of living.
So how can OfReg make such a decision that does not provide any reduction to my bill? I thought they represented consumer interests?
It is rather concerning that our country is now short of electricity since OfReg have not progressed the 23MW solar procurement they announced back in April 2022. These are the sort of headlines you read about in 3rd world countries – not our Cayman! Rather than own up to their own inefficiency OfReg appear to be blaming everyone else.
Who is going to hold OfReg to deliver on what they are accountable for? and what is being done to ensure we have enough electricity?
@CNS, as a correction to this article, the caption under the photo says “CUC Bodden Town solar farm.” CUC does not own or operate that solar farm, which was originally developed and owned by Entropy Cayman Solar Limited, sold to BMR Energy in 2019, and now appears to be owned by InterEnergy as of 2025.
https://renewablesnow.com/news/interenergy-acquires-61-2-mw-of-renewables-in-caribbean-guatemala-1269407/
CNS: Good catch. I’ve changed the caption.