Yesterday, April 12, 204, Caribbean Utilities Company, Ltd. issued a press release to address “misinformation surrounding renewable energy in the Cayman Islands” and to clarify its commitment to customers.
CUC said that it is “fully committed to delivering affordable energy solutions” that will benefit all customers “by creating substantial reductions in fuel factor costs.”
CUC added:
Our investment in 20 megawatts (MW) of battery storage will be a facilitator of more renewable energy on the grid, and it is estimated that it will save our customers roughly US$5 million dollars per annum with the fuel efficiency benefits that this project brings to our generation facilities.
We anticipate that our customers will begin to reap the benefits of this project towards the end of this year.
CUC continued:
We also recognise that utility scale solar energy will significantly lower the fuel charge for customers.
Our projections indicate that utility scale solar energy can be delivered at a cost of 10 cents per kilowatt hour (kWh) or less, representing a substantial reduction compared to the current average cost of 19 cents per kilowatt hour (kWh) with diesel generation.
With utility scale solar, fuel factor costs can be reduced by as much as 50%.
CUC also noted they “fully support rooftop solar,” contrary to claims otherwise.
CUC explained that they have “been instrumental in facilitating the growth of the rooftop solar industry in Grand Cayman” and “approved 20.5 megawatts of rooftop solar as of December 31, 2023.”
CUC added, “This allows Grand Cayman’s rooftop solar owners to contribute to clean energy and benefit from reduced energy bills.”
CUC noted that they do “not profit or lose money from rooftop solar,” and “It is important to CUC that all customers, producers and non-producers, benefit from rooftop solar.”
They explained further that they advocate “for fair solar rates” but not “customer subsidisation, which is one customer segment paying more for electricity, to reduce the rate to others.”
CUC added: “Private installers who advocate for higher solar rates are advocating for customer subsidisation and increased costs.”
Turning to the Cayman Renewable Energy Association (CREA), CUC said:
CREA has, and continues to, advocate for higher rates to be paid by CUC customers for electricity obtained from rooftop solar customers.
While our belief is that rooftop rates have to be high enough that it benefits the homeowner with solar on their roof and it supports their investment; it must also be low enough that other residential customers don’t pay the difference.
CUC supports all options that will reduce carbon emissions and reduced costs for all persons, not just individuals with rooftop solar.
CUC continued:
In addition, CUC acknowledges recent public comments initiated by the CREA President regarding the CUC utility-scale solar plus storage project proposal presented to OfReg in 2021.
It was highlighted that CREA opposed the project on the grounds of it not undergoing a competitive tender process.
CUC emphasizes that while it appreciates CREA’s advocacy for procedural integrity, ongoing opposition to projects like these continue to impede the progress of renewable energy adoption.
CUC highlighted its commitment to customers and its efforts to do everything it is “allowed to do to provide a reliable service, lower carbon emissions, and reduced energy costs for the people of Grand Cayman.”
They concluded:
We are committed to the pursuit of achieving a 60% reduction in emissions by 2030 and to lowering fuel factor costs by up to 50% by 2030.
We cannot do this alone. There will be a need for a collaborative effort between CUC, OfReg, industry partners, and policy makers.
