Page 48 - CARILEC CE Industry Journal_Oct_2019

Optimizing your options

Using solar and battery systems to provide resilience for
critical facilities is not a new concept for the electricity
industry. Similar trends are happening in the United
States, particularly in New Jersey and New York after
Hurricane Sandy. But can solar modules really withstand
hurricane force winds? Solar assets fared surprisingly well
in New Jersey and New York during Hurricane Sandy back
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in 2012 and, despite the intense Category V wind speeds
in the Caribbean last year, a number of high-profile solar
assets survived and powered on the next day. But there is
still room for improvement across the industry, as outlined
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in RMI’s recent report Solar under Storm . such as Saint Lucia’s 3 MW solar farm or Saint
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Vincent’s geothermal project . These first phases are
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Regardless of solar and battery systems being an critical for stakeholder alignment and establishing mutual
accepted approach to address resilience with commercial benefits across the spectrum of projects and investments.
facilities, it can be difficult for facility owners and utilities However, it is imperative that islands chart a longer
to truly take advantage and capture the potential benefits course for transition to further reduce reliance of foreign
of these assets . While plenty of regulatory questions fuel, improve resilience, provide cost-effective energy and
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remain, the issue in the United States is primarily around to meet international emissions reductions .
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the economics. On the other hand, in the Caribbean,
microgrids are already cost-competitive with retail tariffs While the first few phases of transition generally provide
and in some cases, with the avoided cost of diesel some renewable energy penetration (and larger
generation. Caribbean utilities can maximize the value of penetrations with geothermal), countries will still need to
falling prices of solar and battery assets to become global scale distributed and decentralized assets to accomplish
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leaders in microgrid deployment . But whether it is a full transition of both the electricity and the
customer-owned or utility-owned, it’s the pure transportation sectors. There is simply not enough usable
cost-competitiveness of Caribbean microgrids that make land on most islands to practically accomplish 100
new legislation and regulation easier to enact. Sensible percent renewable energy with utility-scale generation
regulation will be required to ensure renewable energy alone. In addition, as solar and battery systems continue
assets are properly valued on the grid for the utility, the to decline in cost, customers will continue to pressure
host customer, and equitably among all other ratepayers. governments, regulators and utilities to take advantage of
the energy savings .
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RMI’s Islands Energy Program has consulted with many
Caribbean utilities and governments. Typically, local There are several examples of distributed resource
energy transition has occurred in phases. There is the transition in the early stages within the region, including
early vision, followed by an integrated resource plan or a a recent solar and battery project announcement from the
NETS process followed by, or in conjunction with, project Government of Antigua & Barbuda . In addition, there
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implementation. Those initial projects can be small are hundreds of microgrid systems currently being
investments, such as energy efficiency measures, or planned, installed, and operated in Puerto Rico after the
commercial and residential solar, or larger investments, devastation of Hurricane Maria .
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