The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamians are using key components of renewable energy technology “without understanding where or when or how” it impacts their lives, regulators are asserting.

The Utilities Regulation and Competition Authority (URCA), in unveiling the results of a 400-strong survey on battery energy storage systems (BESS), referred to “disturbing” findings when it came to both renewable energy uptake and the level of confidence several residential consumers have in the regulator.

More than three out of every four residential respondents, who totalled 300, said they have no plans to install a renewable system at their homes, which could have consequences for The Bahamas’ ambitions to achieve its target of generating 30 percent of total energy needs from sustainable sources by 2030.

And 19 percent of respondents, or almost one in five, said they either did not know what role URCA should play in this process and the roll-out of BESS systems or lacked confidence and trust in the energy sector regulator.

BESS systems, at their most basic, allow energy generated from traditional sources or renewables, such as solar and wind, to be stored and then released when that power is needed. With solar, they typically store any excess energy produced during the day for use at night when no sun is shining.

“Knowledge of the concept of energy storage and use of batteries is widespread in residential consumers. This may be due to familiarisation with consumer electronics and the batteries contained therein,” URCA said.

“However, of the 250 respondents, less than 10 percent were able to name a specific use for battery energy storage systems, the majority of whom (57 percent) may have been prompted by the name of the technology....

“The main concern of residential consumers with respect to battery energy storage installation was cost. For those persons who had installed battery energy systems, the main reason for such installations was to improve power quality.”

Other aspects of the survey were of more concern to URCA. “Over three-quarters (76 percent) of respondents indicated they have no plans to install a renewable energy system. This response is supported by the low levels of the penetration of renewable energy systems in The Bahamas,” the regulator added of the findings.

“Regarding URCA’s role in the electricity sector in general, and BESS in particular, a sizeable number of residential respondents felt URCA’s most important role was to educate the public. It is disturbing, however, that a fair proportion of the respondents were either not sure what role URCA should play or had no confidence in URCA (19 percent combined).”

Commercial consumers were much more reluctant to reply to the URCA survey, although the results showed the installation of BESS systems was not a priority for many because 75 percent said they had never heard of such devices. “While there is widespread knowledge, there is scant adoption and seemingly little interest,” the energy regulator added.

URCA concluded that “lack of awareness” and cost are the two key obstacles preventing greater use of BESS in The Bahamas by both residential and commercial users. In particular, it added that residential respondents to its survey were unaware of any BESS companies operating in The Bahamas and system safety.

“These results paint the picture of a community that is utilizing the technology without understanding where or when or how it is impacting their lives in many positive ways, and the additional ways that successful integration can continue to improve the quality of life,” URCA said.

“There is little doubt that a need exists for battery energy systems of every capacity from the consumer level to the utility level. Further, the advantages of having a robust battery energy system to complement renewable energy penetration is well documented in industry standards.

“Power markets worldwide are experiencing a shift in the way that energy is produced, marketed and consumed. This change is driving innovation in the design, financing and legal structuring of power systems, and The Bahamas will be caught up in this shift as it embraces the green economy and the adoption of renewables,” the regulator continued.

“Energy storage is one of the key enabling technologies in the shift towards a green economy and has a key role to play in decarbonising grids. Energy storage systems are increasingly able to deliver and, in some cases, improve energy services for utility grids at increasingly competitive prices.”

To address the concerns, URCA said it plans to further develop BESS regulation via a licensing regime for both systems that are integrated with generation facilities and standalone storage systems. “An ESS will be required to withstand frequency and voltage deviations under normal and abnormal conditions,” the regulator added.

“Disconnection and connection to the network will be at the discretion of the system operator. The codes will specify the number of tests to be performed by the project owner to demonstrate compliance with the code requirements before being allowed connection by the system operator.”

URCA added: “Energy storage systems have a role to play in increasing and improving access to energy, economic development, reducing carbon emissions, attracting foreign investment, advancing job creation, expanding industrialisation, ensuring system security and stabilising the grid.”