Interview: Emera Caribbean

TRANSFORMING CARIBBEAN ENERGY

Sustainable Business Magazine speaks to Neilsen Beneby, Renewable Energy Manager at Emera Caribbean, about Barbados’s policy for renewables, largescale projects, and and new markets across the Caribbean.

Emera Caribbean Renewables is a renewable energy services company based in Barbados. Founded in 2012, Emera Caribbean Renewables is wholly owned by Emera Caribbean Inc. (Emera Caribbean), which in turn is the Caribbean subsidiary of Nova Scotian energy company Emera Inc. Last time Sustainable Business Magazine spoke to Emera Caribbean, in 2017, Senior Vice President Peter Williams told us about the challenges facing the energy sector in small island nations like Barbados, where fluctuations in the oil market can have an outsize impact on the cost of electricity, and about the company’s intention to progressively move over towards locally-generated renewable energy to absorb some of this volatility. (See Sustainable Business Magazine 4/17 for the full feature.)

Since 2017, the landscape for renewable energy in Barbados has undergone some dramatic changes. In 2018, the Barbadian government revised their previous renewable energy targets through the Barbados National Energy Policy which estimated

635 MWp of renewable energy capacity is required by 2030 for the country to realize its “100/100” goal. The government also recently introduced a new Feed-In-Tariff (FIT) program, which promises to make rates for renewable energy sold to the grid in the country more attractive to investors. “As the targets have changed and they’ve become more aggressive, the government has shown it’s very committed to making Barbados a leader in renewable and sustainable energy, not only in the region but in the world,” says Neilsen Beneby, Renewable Energy Manager at Emera Caribbean. “Emera Caribbean Renewables has adapted appropriately to these changes as they’ve been introduced. In the early days, we focused mostly on residential and small commercial systems. We’ve moved from small-scale solar arrays to medium and even large projects, too. We are currently working on a 400 kWp rooftop PV system and have another nearly 500 kWp system under contract. We were chosen for that project by both customers because of our reputation as an industry leader in the renewable energy sector and our track record of successfully executing commercial rooftop renewable energy projects.”

CHANGING CLIMATE Over the last five years, the Caribbean has been subjected to a series of powerful, destructive hurricanes. A broad consensus

“IT’S VERY COMMITTED TO MAKING BARBADOS A LEADER IN RENEWABLE AND SUSTAINABLE ENERGY, NOT ONLY IN THE REGION BUT IN THE WORLD,”

is emerging among scientists that climate change may be making hurricanes in the North Atlantic more intense. Rising sea levels and warmer oceans and air are highly likely to be driving higher rainfall rates in hurricanes, and somewhat likely to be responsible for higher peak winds and lower central pressures.

Small Island Developing States (SIDS) are frequently on the front lines when it comes to absorbing the damage wrought by these climate-worsened natural disasters, while lacking the resources of larger developed nations to repair and rebuild swiftly. “We’ve really seen the effects of climate change here in the Caribbean,” says Mr. Beneby. “The strength of hurricanes is now unprecedented. In 2016 there was Hurricane Matthew, which created a lot of destruction to Haiti and the Bahamas. In 2017, it was Irma and Maria. Now, in 2019 we’ve seen Hurricane Dorian causing widespread destruction to the northern islands in the Bahamas.”

In response to these devastating natural disasters, SIDS are seeking ways to become more resilient – and to reduce their contributions to climate-affecting emissions. “When a storm damages critical infrastructure, you see prolonged periods of time where the power will be out,” says Mr. Beneby. “The traditional utility model of having centralized generation with a transmission and distribution network is disturbed, and it’s challenging

for utilities in their current form to reliably serve customers. They need to start focusing on adapting to a new way of supplying energy to their customers.

“In addition,” Mr. Beneby continuescontinued, “primary energy generation in the region is from fossil fuels, most of which is sourced from outside the Caribbean, and it doesn’t bode well when there’s dependency on a foreign nation to supply a critical component of energy generation, particularly given the risk of storm damage to ports of entry which makes it difficult to get fuel onto the island.”

NEW APPROACHES Even when Caribbean electrical grids are undamaged, fossil fuels are expensive for island countries without reserves of their own. “What we’ve seen in Barbados is a big push for a diversified generation mix,” says Mr. Beneby. “The government has recognized that there’s a real strain on the country’s foreign reserves through the importation of fossil fuels, subjecting the country to the volatility of the oil market. So there’s a push on trying to have energy price stability and, in addition, grid resiliency by diversifying the energy supply mix through various renewable energy technologies.”

The Barbados government’s new FIT for renewable energy providers, introduced on October 1, 2019, replaces the previous

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Renewable Energy Rider (RER) program. Under the new FIT program, 32.7 MW of capacity that was allocated for renewable providers in solar, land-based wind, biogas and solid biomass will receive rates for energy generation differentiated by size and technology, with the rates fixed for 20 years, guaranteeing a stable rate of return for investors. “The regulator has also increased the solar capacity that falls under the FIT program from 500kW up to 1MW,” says Mr. Beneby. “Given our experience, the increase to 1MW capacity positions Emera Caribbean Renewables well to serve businesses here in Barbados and the wider Caribbean market capable of housing a solar installation of a size that results in significant long term benefit – for them and the environment.”

REACHING OUTWARDS “The way we are positioned now, we can execute a 500 kWp project in less than three months, which is a whole rooftop system from design and procurement through to installation,” says Mr. Beneby. “We’re moving quickly to help companies realize their sustainability goals. Caribbean nations are adapting, and I believe Barbados, with its big push towards 100% renewable generation by 2030, is showing leadership in this change in the Caribbean region’s energy landscape. With this firm footing in place, we are also shifting our focus out

“WE’RE ALSO IDEALLY PLACED TO ACCOMPLISH RENEWABLE ENERGY TARGETS OUTSIDE OF BARBADOS OVER THE NEXT FEW YEARS.“

side of Barbados and looking more regionally. We want to support renewable energy projects throughout the Caribbean.”

Up to now, Emera Caribbean Renewables has executed projects solely in Barbados, though their parent company, Emera Caribbean, operates in the Bahamas, Dominica, and St. Lucia, with ownership of the Grand Bahama Power Company, a majority stake in Dominica Electricity Services and a minority stake in St. Lucia Electricity Services. “Emera Caribbean is positioned to execute projects in some new jurisdictions, with a track record of successfully executing over 27 MW of solar and storage projects throughout the Caribbean,” says Mr. Beneby. “This means we’re also ideally suited to accomplish renewable energy targets outside of Barbados in the coming years. With many other countries in the region facing the same problems of resiliency, we’re well-positioned to support the evolution to renewable energy sources across the Caribbean. Over the next few years, Emera Caribbean Renewables is hoping to double the capacity of systems

that we’ve installed year-on-year. We work on a foundation of integrity, environmental stewardship, safety, and our proven ability to execute projects on time and on budget. We are a solutions provider of choice to utility and commercial businesses within the region, and we will continue to move forward on that path.” c