The Caribbean Utilities Company, Ltd. and the Electricity Regulatory Authority of the Cayman Islands (ERA) have approved a Power Purchase Agreement that will bring renewable energy to residents of Grand Cayman.
A 5MW solar project, built by Entropy Cayman Solar Limited in the district of Bodden Town, will provide clean energy to 800 homes by 2016. The facility will provide clean renewable solar energy and will significantly reduce emissions.
The Electricity Regulatory Authority (ERA) has evaluated the levelized cost of renewable energy to be approximately CI 16 cents (US 19 cents) per kWh over the 25 year life of the PPA. This is expected to lower consumers’ costs compared to diesel whilst eliminating the price volatility and greenhouse gas emissions of the fossil fuel displaced. ERA Managing Director, Charles Farrington, said,
“The ERA is extremely happy to approve the first of what we hope will be many utility scale renewable energy projects to replace fossil fuel generated electricity… The ERA is also pleased to welcome Entropy Cayman Solar as a new Generation Licensee and we look forward to a long and mutually beneficial relationship on behalf of Grand Cayman electricity consumers. The ERA is now turning its attention to developing a new RFP for additional utility scale solar resources for Grand Cayman’s electricity grid”.
To read more about renewable energy in the Cayman Islands, click here.