OfReg proposes new CORE rate for green power
(CNS): OfReg has proposed that CUC customers who are part of the power company’s green energy programme will receive just over 13 cents per kWh for the newly transferred allocation of 1-megawatt of capacity. This tranche of potential power provision is being moved from the Distributed Energy Resources (DER) programme to the Customer-Owned Renewable Energy (CORE) programme. The suggested rate is based on the need to lower the cost of energy for all.
In a press release issued Wednesday, the Utility Regulation and Competition Office said the proposed tariff would decrease the subsidization of this largely residential green energy programme by regular CUC customers that are not generating their own renewable energy, such as solar or wind, and are paying full price for the power they get from the grid.
The additional of this 1MW brings the total CORE capacity to 10MW, and allows continuity of solar systems installations on residential and smaller commercial premises to continue, after CUC had previously suspended CORE and was trying to redirect people to the DER programme.
The main difference between CORE and DER is that CORE customers do not store their own excess power and instead switch to the CUC grid when they need to, for which they pay fees. DER customers store their own power and so have no need to pay those costs and simply supply, rather than take, electricity from CUC.
But with a new load of capacity being redirected, OfReg is required to address the rate and has arrived at KYD$0.134/kWh in accordance with its General Regulatory Principles (GRPs), and guided by the Integrated Resource Plan (IRP) and Goals 3 and 4 of the National Energy Policy, the release stated.
“As this is a draft determination, it is possible that there may be changes in the final determination. Whilst the draft determination provides an indicative tariff, this is based on information at the time, and may be updated based on new data and feedback from stakeholders,” OfReg said in the release, asking people to submit comments..
Officials added that consultation is an important part of OfReg’s assessment processes, as they encouraged interested parties to review the draft determination on its website.
Responses must be submitted to OfReg on or before 5pm on 30 October and are to be submitted by email to consultations@ofreg.ky.
The final determination is expected to be published in November and the revised tariff is also expected to apply from that date. This is subject to change, particularly in light of any further COVID-19 developments.
I would expect that modification to the rate of offered by the CORE program to be “adjusted” to the new rate as a side measure as being the next step. At this stage there is close to no point anymore to go with CORE and live with the constant need to UPS every single piece of electronics in your home . Just install batteries seems the only logical investment at this stage especially since the quality of the feed provided by CUC is degrading day after day.
Ofreg at this stage acts more and more as a captive regulatory body their own Internet speed test is still very much returning funky results several months after launch.
This price adjustment effectively will kill and put 1000 fathoms under any green energy and self sufficiency policies for the island.
As an advocate for green energy in general I would not care less IF the quality of the feed would be good but so far the problem has been ignored and always met with “soon come” replies that actually don’t mean anything.
Utility scale batteries do exist and have been implemented already even in hot climates …
Well this just killed the CORE program dead and solar investment will plummet in the next 3 years. We were already looking at returns taking something like 8 to 10 years and now it will go up above 15 years to recoup your investment. Why would anyone do that? The risks are far too great.
The only way to make this work now is if you are a very large provider of solar where you can buy panels at cost and sell the electricity back to CUC at demand rates.
OFREG should do something about the high price of fuel in Cayman Islands. All they do is drive around in their new vehicles burning up tax payers gasoline. They should shut down.
Are you kidding? Most solar panels on the market have 25-year warranties. Even though there are other components without such long warranties, a 15 year ROI is still really good. Aren’t CORE contracts also guaranteed rates for 25 years? It’s a big capital investment up front, but it’s an incredibly safe investment. Maybe you could get a better return investing somewhere else. However, it’s absolutely false to say this is risky. I would be willing to bet this capacity gets snapped up as quickly as the previous ones did.
Another disgraceful sop to CUC by a shambolic and dysfunctional regulatory body.
Wait till the oil price skyrockets again, or worse USA at war with China/Russia/North Korea. Our greedy enablers of CUC et al will be out of business. Those countries who don’t have or can’t buy access to non-fossil fuel energies and don’t have their own siege stockpiles will be choked out of existence. That’s us Cayman, thank your greedy Cayman energy cartel for that.
CUC might as well be the voice of OfReg and visa versa. Hand in glove it’s manipulation of the rules continues to stiff customers.
Truly sad that Ofreg has such a defeatist attitude.
Such a ridiculous spin from CUC to claim they are protecting consumers that don’t use the program and subsidize it. CUC’s use of average consumers to subsidize the program has always been about protecting their profits, they never needed to add this on to energy bills and only did out of greed.
At the end of the day even if we are necessary to subsidize the program, an additional $3 was added to my monthly CUC bill and I am not part of the CORE program. I will gladly pay $3 a month to support the growth of renewable energy.
I also gladly pay $3 per month to to subsidize renewable energy, although probably not as gladly as those who collect $300 per month from CUC for supplying energy to the CORE program.
Right, but why pay $3 to put in the pockets of those who put in solar when you could just pay them $1.50 instead (which would be closer to what it’s actually worth)?
What exactly is that extra $1.50 for? To drop their ROI on a 20 year investment from 12 years to 6 years?
I’m happy to pay a reasonable premium for renewable energy, but let’s not be silly about it.
Wow, that just effectively killed the CORE program. Big win for CUC shareholders and the diesel suppliers. OfReg has no idea what its doing and has no usefulness whatsoever.
The CORE rate does not financially impact CUC or its shareholders. The cost of electricity purchased from CORE producers is passed on to all consumers without markup the same way that diesel costs are passed through.
Buy shares in C U C , and join the reinvestment plan, Good investment for retirement