Transforming Barbados Through Renewable Energy and Energy Efficiency

Barbados is on the verge of a transformational change, a change being largely driven by its natural energy sources. With the advancements taking place in technology, the possibility now exists to harness the potential of the country’s God-given natural resources, including sun, wind and biomass, into new forms of energy sources that are more sustainable.

In essence, the small island developing state of Barbados is on the cusp of a renewable energy and energy efficiency transformation.

Since 2010, the country has made great progress and worked strategically to put in place the appropriate policy and regulatory frameworks which are necessary to support the growth of these sectors. The Renewable Energy Rider (RER) programme was launched on a pilot basis in 2010 and later expanded and approved in 2013 by the Fair-Trading Commission. This programme demonstrated the high customer demand for renewable energy generation. During the pilot phase, according to the Light and Power Holdings Annual Report 2013, the amount of solar photovoltaic (pv) penetration totalled 271 subscriptions, representing a capacity of 1.7 megawatts

(MW). At the end of 2013, and within the first three months of 2014, these figures had risen dramatically to a combined capacity of more than 3.5 MW, more than half of the 7 MW eligible capacity available under the RER Programme.

These developments led to the passing of the Electric Light & Power Act in 2013 and the subsequent Amendment to that Act in 2015, which was an important milestone in the country’s transition to a renewable energy and energy efficiency future. Of important note is the provision for independent power producers (IPP) outside of the current utility to generate and sell power to the grid. Under the current framework, such IPPs are now able to do so at a temporary fixed rate of $0.416 cents per kilo watt. With a temporary fixed rate in place, the Government, through the Division of Energy, has already commissioned a study to look at the application of permanent feed-in-tariff rates to support the growth of various renewable energy technologies onto the grid. These legislative changes have opened up the country’s energy market and set the stage for new investment opportunities.

In addition to having the appropriate legislative framework in place, there are other factors that make Barbados a suitable and attractive location for renewable energy and energy efficiency investments. At the end of November 2017, the Barbados National Energy Policy was formally adopted and approved by the Cabinet of Barbados. Although currently under review, the new administration in its support of the sector has accelerated the renewable energy target to align with the administration’s 100% renewable energy policy objective by 2030. Plans are therefore underway to amend the National Energy Policy in line with the 2030 target of Barbados becoming one of the first 100% green and carbon neutral island states.

Another important and supporting factor driving growth across the renewable energy and energy efficiency sectors is the incentive framework which has been put in place. Under this programme, locally established firms are able to import renewable energy and energy efficiency products completely quota and duty free. There are currently approximately ten local solar pv firms operating in the market, including dominant companies such as Williams Solar, Solar Watt and Innogen, along with a cadre of micro, small and medium sized companies providing solar pv installation and energy related services.

Energy Efficiency is also poised to play a critical role in the country’s transition to a 100% renewable energy and carbon neutral island state. Companies such as Caribbean LED Lighting, Contractors Trading Associates and Ensmart Inc have been integral in helping to shape and facilitate this change.