The key stakeholder in the business of power generation and distribution in Barbados seems to agree that fossil fuel (including natural gas) is still the economical and cost effective approach available. This is a view that was shared by Chief Marketing officer Stephen Worme at a recent MESA meeting. The fact that this was the argument used when the price of oil was U$85.00 per barrel, the same argument is still being used even as the price of oil has hit USD140.00. One does not have to be a Einstein to conclude, as the price of oil rises, then the viability of developing solar energy as an alternative energy source becomes a logical argument.
A recent study (Utility Solar Assessment (USA) Study) in the USA has detailed a roadmap to chart the course in the USA which is expected to create 10% of solar energy by 2025. Interestingly the search for a viable energy alternative is being driven by the need to hedge against fossil fuel. The US pundits believe that the cost parity to generate solar energy for retail distribution will be achieved in less than a decade. We understand this to mean that the USA is building a back-up plan, and it makes sense!
Some of the findings of the summarized study appear to be relevant to Barbados:
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For utilities: Take advantage of the unique value of solar for peak generation and alleviating grid congestion; implement solar as part of the build-out of the smart grid; and adapt to new market realities with new business models. (The question is whether the Barbados Light & Power is fully on-board)
- For solar companies: Bring installed solar systems costs to $3 per peak watt or less by 2018; streamline installations; and make solar a truly plug-and-play technology. (We don’t have solar companies in Barbados. What can we do to substitute for this link in the chain?)
- For regulators and policy makers: Pass a long-term extension of investment and production tax credits for solar and other renewables; establish open standards for solar interconnection; and give utilities the ability to rate-base solar. (We have a new government who has been hinting their interest about alternative energy generation, Prime Minister David Thompson will have the opportunity in the upcoming budget presentation July 07, 2008)
Source: The Temas Blog
Another key finding coming out of the study which caused some consternation in the BU household indicates the future of a national solar energy plan is in the hands of the utility company i.e. Barbados light & Power (BL&P). Unlike the utilities in the USA, BL&P and the regulator i.e. government of Barbados seem not to be on the same page concerning a national energy plan.
For the first time in history, cost-competitive solar power is now within the planning horizon of every utility in the nation.
Alisa Gravitz, Co-op America executive director and USA Study project director
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