The Caribbean Utilities Company has chosen two companies to
provide solar and wind power to its grid.
The utility company has not named the two renewable energy
developers chosen to start discussions on the project, saying details of those
companies will be announced as soon as the necessary contracts and agreements
are finalised.
The proposals being considered are two 5 megawatt solar
photovoltaic power plants and one 3 megawatt small-scale wind turbine project,
which are anticipated to be operational within the next two years.
In a press release issued Wednesday morning, CUC stated that
it is currently possible for renewable energy from wind and solar photovoltaic
sources to be “cost competitive with diesel generation” and the time is right
to introduce the systems onto the Grand Cayman grid.
In August last year, CUC invited companies and individuals
to submit expressions of interest and preliminary proposals for the financing,
construction, ownership and operation of renewable energy generation
facilities. The deadline for submissions was 31 October, 2011, at which point
CUC had received more than 50 proposals from about 30 companies.
“With the ever increasing costs of fuel, CUC has been
exploring large scale alternative energy options in an effort to stabilise and
possibly reduce costs to its consumers and to lower emissions from fossil
fuels. We had a very positive response to the August 2011 solicitation and we
are now pleased to be able to start discussions with these renewable energy
developers,” said CUC’s Vice President Transmission and Distribution Andrew
Small.
According to CUC, the company evaluated the proposals on
their technical and financial merits “in order to achieve the overall renewable
generating capacity objective without compromising the reliability and
stability of its electricity system”.
CUC is negotiating firm power purchase agreements with the
selected bidders.
“Once the negotiations are completed, and the necessary
regulatory approvals received, final power purchase agreements will be
established with the successful bidders, who will then start construction of
the projects. It is anticipated that the projects will be completed within a
two-year period,” the statement from CUC read.
CUC’s request for expressions of interest stated that the
power company planned to accept up to 13 megawatts of renewable energy.
Currently, CUC’s 17 generating units – 15 diesel and two
gas turbines – have a combined capacity of slightly more than 151
megawatts. The record peak load the company has experienced is 102 megawatts,
in June 2010.
For more on this story, check the Caymanian Compass.
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Not really sure was the Cayman Government doesn’t produce its own solar energy source that can give the people of Cayman a lower priced energy source and also make money for the government.
Why are we being held hostage by the CUC???
Why doesn’t the CUC talk about any savings that will be passed to the consumer when the solar and wind turbines are up and running?
Why would it take 2 years for any of these small projects to be up and running. A solar farm for 5 megawatts is a tiny project in the world of solar and could be set up in 3 months. Why does an electric company have to outsource this project? Why don’t they have the expertise to implement the system themselves?
These are important questions to be asked.
Any company worth it’s salt would be looking ahead for sustainability of profits, and any government worth a sack of beans would have required sustainable power for its essential services.
If CUC has taken this step in moving to a more sustainable energy provision without any dictate from government, they are to be commended.
Of course the profit engine drives.
I Expect the Education Department will not be far behind with training for our young citizens in solar panel instillation and repair.