Caribbean Utility Company’s latest moves towards using natural gas as part of its energy production have sparked concerns over fuel cost, sustainability and required infrastructure.
In a press release last week, the power company said it was converting two diesel engines to run on the “cleaner burning fuel” in its transition to using more renewable sources.
It stated that natural gas will produce 30% fewer CO2 emissions than diesel and be more cost-effective, leading to lower electricity bills for customers.
But advocacy group Amplify Cayman is concerned that the company is not moving in the right direction.
Emily DeCou, an Amplify Cayman leader, told the Compass that science does not support natural gas as a sustainable energy source and that it will not significantly lower energy bills.
“We already have natural sources of energy in the Cayman Islands, such as the sun, which we can rely upon,” she said.
“Renewable sources of energy are cleaner and safer, and shown to be more affordable for the everyday man in the long run.”
DeCou suggested that fossil fuels such as diesel and natural gas are getting harder to source, making them more expensive in the long term.
“The community agrees that we must act now to prioritise transitioning to a cleaner and sustainable energy source on a national level,” DeCou said.
This, she suggested, will help to combat both the climate “breakdown” and cost-of-living crisis.
Passing the risk
James Whittaker, president of sustainability non-profit Cayman Renewable Energy Association, is also apprehensive about the use of natural gas as an energy source.
He said the association believes the primary issue with the plan is the cost of the new infrastructure required and the need for CUC to make a guaranteed financial return.
“[This] then passes the risk onto Cayman’s consumers of this ‘transitional fuel’ becoming obsolete thanks to the transition to renewables and storage,” he told the Compass.
Whittaker is also sceptical of CUC’s stated reduction of emissions compared to diesel.
He said the “total emissions” from extraction to production to shipping have to be accounted for when calculating emissions and environmental benefits, not just the burning of the gas itself.
Whittaker said he has not seen a presentation which addresses these issues in a satisfactory way to support Cayman investing in natural gas.
In last week’s statement, CUC said it is looking for natural gas suppliers and has asked prospective candidates to provide qualification submissions before 15 Sept.
But Whittaker said the short one-week timeframe for a response to a project of this scale is “curious and suggests there’s already a desired partner or plan in place”.
The upgrades of the diesel engines are expected to be completed by 2025 with the fuel in use by 2027.
Large-scale solar
The National Energy Policy 2023-2050 contains the goal of a national transition to 100% renewable energy by 2050, which CUC has said it “will work in every way possible” to reach.
Following last week’s announcement, a spokesperson for the power company told the Compass it is committed to large-scale solar as the main energy source for Grand Cayman.
They said natural gas will simply be a cleaner fuel that will be used in the transition period.
The spokesperson explained that in 2019, the Utility Regulation and Competition Office said for large-scale solar to be offered, a competitive bid process needs to be held.
Meanwhile, the power company has considered and drafted several different designs that will best suit the island’s needs.
“The company anxiously awaits the bid process to be initiated by OfReg for the opportunity to implement low-cost, large-scale, clean solar energy,” the spokesperson said.
“The bid process will allow CUC to openly provide details on the plans that the company has for renewable energy.”
The Compass has reached out to OfReg for an update and is awaiting a response.
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