Government pushing renewable energy investment

Government has announced a new initiative geared at encouraging more Barbadians to invest in renewable energy generation, which should help to stimulate economic activity and employment in this country.

Speaking in the House of Assembly yesterday morning, Minister of Energy, Small Business and Entrepreneurship, Kerrie Symmonds announced an accelerated investment premium on the Fair Trading Commission’s determined feed-in tariffs for solar and wind generation.

Acknowledging the impact of the COVID-19 pandemic on the economy, he maintained there is a need for a return to growth so that employment levels can rebound. To achieve that, he contended, investment is needed. He said the accelerated investment premium facilitates investment, while moving the country closer to “net zero emissions and a sustainable future”.

“This accelerated investment premium is designed to deliver a green recovery to Barbados and create green opportunities for employment and investment to Barbadians. Mr Speaker Sir, there is no doubt that there are local potential investors who are seeking an opportunity to make investment, and drive economic activity and employment in the land of their birth. We believe that one of the more efficient ways in which a country can spur development and growth, is to encourage investment from within, by local entrepreneurs.

“It is in this regard Sir, that we emphasise that investment can be incentivised within the local energy sector through the minimisation of risk in this overarching climate of uncertainty,” he stated while delivering a ministerial statement to the House of Assembly.

With that in mind, he noted that as of December 2020, Barbados had an installed capacity of 49 megawatts of renewable energy from solar photovoltaics on the national grid. Minister Symmonds said that is made up of 39 megawatts of distributed and 10 megawatts of utility scale energy, which represents 68 gigawatt/hours or an estimated eight percent of total electricity

consumed. He said this is saving Barbados an estimated 114 412 barrels of oil, or $9 215 961 in foreign exchange.

The energy minister made the point while indicating that the Government remains committed to making the country 100 per cent fossil fuel free by the year 2030, but noted that despite the progress made, there is a long way to go in order to achieve that 2030 vision. With that in mind, he said to help move that vision along, they are introducing the accelerated investment premium programme for the renewable energy sector for Barbadian nationals.

“This programme, Mr. Speaker, is proposed to incentivise the sector by promoting and encouraging local investment. This accelerated investment premium programme will take the form of, first, a 25 per cent premium for investments made in solar and wind technology systems above one megawatt and up to three megawatts, and secondly, a 20 per cent premium for investments made in solar and wind technology systems above three megawatts up to five megawatts,” he stated.

Symmonds further told the House that the investment premiums will be applied to the prevailing tariff rates established by the Fair Trading Commission and will continue for a period of 12 months. So as not to disadvantage participants and applicants who have already applied, but are still awaiting licences, Symmonds said that the premiums will be made retroactive to cover the period from October 1, 2020 and will continue for the period of 12 months from yesterday, or until the new limit of 75 megawatts has been utilised.

(JRT)