Monday, February 23, 2009
By NEIL HARTNELL
Tribune Business Editor
THE Ingraham administration has completed "the big architecture" to reform the energy industry and pave the way for renewable sources, the minister for the environment said yesterday, adding that an independent regulator to oversee the sector was now required.
Outlining the Government's major accomplishments in the energy sector, Earl Deveaux told Tribune Business that Bahamian households and businesses had to play their part by exploiting the various incentives and renewable technologies made available to enhance energy conservation, thus reducing power consumption and bills.
In a letter published on Tribune Business's Page 2B today, Mr Deveaux emphasised that all Bahamians had their part to play in achieving sustainable solutions for this nation, and the burden did not rest with the Government alone.
Emphasising that energy was a "huge" issue for the Bahamas, given that it underpinned all economic activity in this nation, Mr Deveaux said that while some households and businesses were complaining that the Electricity Act, and Out Island Electricity Act, did not "incentivise" the adoption of renewable energy due to the absence of net metering/reverse metering provisions, these were "more technical than they are legislative issues".
While the Bahamas Electricity Corporation (BEC) had a monopoly on electricity supply, the minister pointed out that the two Acts allowed homes on New Providence and in the Family Islands to generate up to 250 KVA and 50 KVA, respectively, of their own power.
Arguing that this amount was "more than adequate", Mr Deveaux said the technical issues arose when private homeowners sought to have net metering or reverse metering, and the possibility of selling surplus power back to the BEC grid.
Apart from questions over the price (rate) paid for electricity sold back to BEC, the Minister added: "If your system goes down, BEC's concern is over you having interconnection to their system, and that there is no cataclysmic fallout from that. That is why the chairman is so right when he speaks about the need for a Smart Grid."
And, Mr Deveaux said, in the case of homes and businesses selling surplus energy back to the BEC grid, there was also the issue "of where to send it, so you can send it downstream without having an impact on the electricity grid".
Another outstanding issue identified by the minister was to create a regulatory body, whether it be the Utilities Regulation & Competition Authority (URCA) or someone else, to oversee the energy sector, determining the services that can be provided and the rates that can be charged.
A comprehensive review of the Electricity Act and Out Island Electricity Act, together with the National Energy Policy's development, had already been undertaken, Mr Deveaux said, identifying any legislative and policy gaps that may require attention.
"From the Government's perspective, we've done the big architecture we needed to in creating the framework to accommodate it," Mr Deveaux told Tribune Business of renewable, sustainable energy technologies.
"I think the framework is very much in place to accommodate the next administration. Energy, as evidenced from my letter, is one of the big issues we have to deal with as a country, because it has such a huge impact on our economy.
"Energy costs are a significant component of our way of life, as well as a means of earning our livelihoods. A conscious effort by everyone is absolutely essential."
Mr Deveaux said he was making the point that Bahamas-based households and businesses "have to take more active participation in the choices they make" when it comes to renewable energy.
Urging Bahamians to focus on more efficient energy usage, and design homes and vehicle engines to conserve consumption, Mr Deveaux said the likes of Bahamas Ferries had already made the investment in better engines to enable them to compete with freight providers and other traffic.
He questioned whether Bahamian taxi drivers, for instance, had exploited the various incentives made available by the Government for importing more energy efficient vehicles, and if jitney drivers and owners had invested in more efficient engines.
"These are not small things. They are huge, and have an impact on the bottom line of businesses that Bahamians use every day," Mr Deveaux told Tribune Business.
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