[vc_row][vc_column][vc_column_text]The Barbados Light and Power (BL&P) Company recently put before the Fair -Trading Commission an application for the Company’s recovery of cost through the Fuel Clause Adjustment Mechanism for the integration of a 5MW Battery Base Storage System at the utility’s 10 MW Solar Farm in Trent’s St. Lucy.
But what does this application mean for the renewable energy sector and more importantly how will it impact on customers? The BL&P Application to the Fair -Trading Commission brings to the forefront the importance of energy storage in the country’s discussions and drive to pursue a 100% renewable energy policy objective.
Energy Storage therefore has an important role to play and is a central feature in any developmental agenda which has renewable energy and energy efficiency at its core. But why is energy storage so important? This is because harnessing of energy from the earth’s renewable energy sources such as; the sun and wind is merely a critical but incremental first step in the sourcing and supply of energy. The storage of energy becomes increasingly important in the provision and adjustment of such energy depending on the variation and demand.
As you see the harnessing of energy from renewable energy sources is intermittent, for a utility whose role is to provide power to its customers on a consistent and reliable basis, energy storage becomes an important component in the renewable energy mix.
The application made by the Barbados Light and Power (BL&P) Company seeks to recover cost for the integration of a 5MW Battery Base System. The Barbados Light and Power Company has proposed to recover this cost firstly through the recovery of cost in proportion to the fuel saving benefits it delivers and secondly through the use of the Fuel Clause Adjustment as the mechanism to do just that.
What does this mean for the customer, for a country which has put in place a 100% renewable energy policy objective the application marks the start of an important discussion and integration of storage in the national energy mix and sustainable development energy agenda.
For customers, it signals the start of discussions on how renewables and more importantly the integration of energy storage can save customers additional expense on their electricity bills through the declining use of fossil fuel as against the increased use of renewables.
However, what BREA would be discussing with stakeholders across the sector in the coming weeks is firstly, whether the Fuel Clause Adjustment mechanism is the appropriate mechanism for utility scale cost recovery for battery storage investment as opposed to a separate tariff mechanism. Additionally, there is also the question of whether the proposed FCA formula by the Barbados Light and Power needs to be adjusted.
Secondly, the design of cost recovery for independent battery storage investors becomes a regulated area which will now need to be addressed. This press statement marks the first step by the Association to engage the public on these critical issues as we move to drive the growth and development of the renewable energy and energy efficiency sectors. (PR)[/vc_column_text][/vc_column][/vc_row]