The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Renewable energy firms yesterday slammed the Government’s decision to suspend the self-generation programme, arguing that it had left the industry “in limbo” and again “put the cart before the horse”.

Guilden Gilbert, vice-president of Alternative Power Solutions (APS), told Tribune Business that it “makes no sense” to instruct businesses and homeowners with ‘grid-tied’ systems to now disconnect these from the Bahamas Electricity Corporation’s (BEC) network.

Ministers and senior BEC officials yesterday confirmed that the much-touted Renewable Energy Self-Generation (RESG) programme had been ‘temporarily delayed’ to ensure that it aligned with wider energy industry reforms.

They pledged that it would be re-launched “early in the process” of implementing BEC and sector changes, but Mr Gilbert said the Bahamas needed to decide whether it was going to finally back renewable energy implementation or not.

“If someone has spent $30,000-$40,000 on a system, do they have to disconnect it for the next five years until the Government makes up its mind?” he queried to Tribune Business.

Mr Gilbert said he had learned of the RESG suspension from a friend, who queried a BEC meter reading that was “off by a good couple hundred kilowatt hours”, given that they had a grid-tied system.

When the friend contacted BEC, they were told that the RESG application had “not been vetted and approved, and he was instructed to turn his system off”.

This is exactly what BEC wants business and homeowners seeking to participate in the RESG initiative to do.

“Due to proposed legislative and regulatory changes coming out of the energy sector reform process, it is regrettable that we must suspend the RESG programme,” a BEC announcement, posted on its website, states.

“Customers that may have installed grid tied systems are advised that they must disconnect same until the process restarts and they complete the required approvals and authorisation process. Also, customers are advised not to not acquire any new systems until the required process is in place.”

An exasperated Mr Gilbert said the move would prevent Bahamians from earning the expected returns (energy savings) from their wind and solar investments, lengthening the pay back period and resulting in higher short-term energy bills.

He added that the impact would be similar for Bahamas-based renewable energy companies, who would also see a drop in demand for their system installation services.

“The Bahamas needs to make a decision,” Mr Gilbert told Tribune Business. “It’s either going to support the implementation of renewable energy, and a reduction in fossil fuel use, or it isn’t.

“Right now, the market is going into limbo because the Government needs to make a decision. If people have systems, are they supposed to shut them down after spending $20,000, $30,000, $40,000?

“If people cannot now install systems, what happens to renewable energy companies in the Bahamas? Do they shut down businesses, put people out of work? It absolutely makes no sense,” Mr Gilbert added.

“Renewable energy companies have invested considerable sums of money in training and equipment. To be told they can’t install any more systems makes no sense.”

Acknowledging that renewable energy needed to be regulated, Mr Gilbert said the Government should not deter the market from moving forward, given the significant benefits it could provide.

He added that BEC “would be hard-pressed” to show that renewable systems were sending power back to its grid during an outage, while inverters could be programmed not to send energy back to the Corporation.

“I don’t understand it,” Mr Gilbert told Tribune Business. “Every area in this region is moving forward in renewable energy except the Bahamas. It makes absolutely no sense that this continues to be delayed, and delayed, and delayed.

“A decision has to be made at some point. It’s unfair to the industry, unfair to the consumers who have put in systems or want to self-generate, to be held in limbo.

“It’s important the Government makes a decision. What do they do if people don’t shut their systems down,” he added.

“The Government needs to come out and give a statement on the way the market is going to go. There has to be some fairness for the consumer.”

Mr Gilbert said the RESG suspension meant the Government was effectively speaking out of ‘both sides of its mouth’, delaying while also removing and reducing taxes on renewable energy equipment and pledging that the sector was a big part of its policy approach.

Philip Holdom, head of Alternative Power Supply, told Tribune Business in a recent interview that the Government appeared to have “put the cart before the horse” on the RESG programme.

He complained that while businesses and homeowners were able to submit applications for their systems to be registered, there were no contract forms for agreeing commercial grid-tie in terms with BEC.

BEC and Government officials yesterday confirmed that these forms, Renewable Energy Power Purchase/Interconnection agreements, were the part of the process that has been suspended.

Mr Holdom, though, warned that the Government risked an unregulated mess, with those wanting to ‘play by the rules’ being frustrated - all of which made it likely that Bahamians start doing their own thing.

“Once again, they’ve put the cart before the horse,” he told Tribune Business. “One, they require you to register to know how much capacity is out there, and two, if you intend to net meter there’s a separate contract to sign.

“I haven’t seen that contract. Where’s the contract? You can register your system, and the law says you can net meter, but there’s no contract for net metering.”

Mr Holdom said it was also impossible for RESG participants to have their systems inspected, as required by law, because BEC had not issued them with receipts confirming that the Corporation had approved the technology.