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DECISION ON THE MOTION TO REVIEW
THE DECISION ON THE
RENEWABLE ENERGY RIDER (RER)
The Fair Trading Commission has issued its Decision on the Motion to Review the Decision on the Renewable Energy Rider (RER) and has outlined changes to be made under the Barbados Light & Power Co. Ltd.’s (BL &P) RER programme.
The purpose of the Motion for Review, which commenced on April 22, 2016, was to address RE suppliers’ and installers’ concerns regarding the low value of the RER credit, as occasioned by low international fuel prices, and the viability of the RE sector. The Review was conducted by way of a written consultation, with contributions received from consumer interest groups, service providers, RE installers and other interested parties.
The Commission, with consideration for the responses submitted during the consultation, has determined that:
I. The eligible capacity limit should be increased to 500 kW, which will allow for greater participation in the programme.
II. The most appropriate approach for the determination of the RER credit is the resource cost approach, as it adequately disaggregates RE costs from the cost of fossil fuels.
III. The temporary RER credit is set at $0.416/ kWh for solar PV and $0.315/kWh for wind until such time as a permanent rate may be established. This credit will apply to RE suppliers with capacities up to 500 kW and is subject to Section 13 of the Electric Light & Power Act (ELPA) 2013-21 and Section 46 of the FTCA.
The RER programme was created to facilitate the sale of surplus electricity generated from Barbados Light & Power Co. Ltd.’s customers, distributed RE systems.
July 13, 2016
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