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FTC Approves Fraction of BLPC's Requested Battery Storage, Allows Cost Recovery via Clean Energy Transition Rider
Barbados utility regulator approves a fraction of requested battery storage capacity by BLPC, allowing cost recovery from customers. FTC approves 15 MW out of 90 MW, with unclear impact on electricity bills.
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Originally published by barbadostoday.bb (opens in new tab)
The island’s utility regulator has approved a fraction of the battery storage capacity requested by the Barbados Light & Power Company (BLPC) and given it approval to recover some of the cost of that investment from customers.
Just how much more electricity consumers will have to pay is not yet known, however.
In a decision dated Tuesday, the Fair Trading Commission (FTC) announced that it had approved three of the five BLPC proposals to invest in battery storage and recover the cost from customers through the Clean Energy Transition Rider (CETR). The FTC partially approved a fourth plan, and outrightly rejected the other.
The FTC approved 15 megawatts of the requested 90 MW Battery Energy Storage Systems (BESS), automatic generation control systems, a distributed energy resources aggregation and control platform, and interconnection infrastructure that would allow independent power producers to hook up to the national grid.
But it rejected the remaining 75 MW of storage capacity. It also turned down a proposal to use synchronous condensers, which regulate voltage on power transmission grids without generating active power themselves.
“The BLPC can commence recovery of the actual CAPEX [Capital Expenditure] and associated costs for the BESS assets as determined by the Commission, six months after commissioning,” the FTC also said in its decision which followed submissions made by the power company as well as intervenors Kenneth Went, the Barbados Renewable Energy Association, Senator Tricia Watson and David Simpson jointly, John Hall, and the Barbados Association of Retired Persons and Walter Maloney who were both represented by the Office of Public Counsel.
Had the full amount of battery storage been approved, consumers would have seen their bills increase by $41 over a three-year period. However, with only a sixth of the amount granted, it is unclear what that increase will look like.
In a statement on Wednesday responding to the FTC decision, BLPC said: “We recognise any movement on this as a step forward in the journey towards sustainable energy solutions for Barbados. However, we are disappointed at the approved 15 MW battery storage capacity, which represents only one-sixth of the 90 MW stated in the application.”
The utility company warned that the decision would challenge its ability to immediately expand grid capacity to meet Barbados’ existing and anticipated renewable energy needs.
