Senior Technical Officer in the Ministry of Energy and Business, Destine Gay, says there is strong interest from the market in investing in Barbados’ battery energy storage.
Ms. Gay shared this news recently, as she addressed a ceremony at the Lloyd Erskine Sandiford Centre, to launch the second phase of the Battery Energy Storage System (BESS) procurement.
She noted that a Request for Information (RFI) was published last year, which sought information and feedback from the sector on their appetite for BESS. She disclosed that the RFI was downloaded by 69 institutions, and seven companies submitted comments and suggestions on the draft Request for Proposals (RFP) documents.
“Eleven companies submitted 39 prospective projects for a total of 404MW of BESS, and only two of the companies were international. The responses we received showed us two very important things. First, there is strong interest from the market in investing in battery energy storage in Barbados. And second, the responses reaffirmed that our energy sector remains committed to supporting the country’s transition to a cleaner, more resilient, and sustainable future,” the Senior Technical Officer stated.
This second phase, she explained, would comprise the publishing of the RFP, receipt of submissions from interested bidders, the evaluation of those bids in accordance with the criteria and the awarding of battery energy storage projects up to a maximum of 60 MW.
In his address, RELP’s Global Country Delivery Director, Ramiro Barinaga, said the launch of the battery energy storage competitive tender process was a turning point in the island’s energy market.
“Barbados is in a unique position to lead the energy transition in the Caribbean. This will inspire other nations facing the same struggles to follow the same path to cheaper, cleaner and sovereign energy,” Mr. Barinaga stated.
He stressed the importance of energy sovereignty, well designed and bankable contracts to attract investment and competition, and energy affordability for the citizens of Barbados. He pointed out that the tender would bring energy independence for the island.
Mr. Barinaga continued: “So, the design of this tender is robust, simple, and bankable to attract local and international players, so developers, investors and financiers in the room and online will think how to offer the best project at the lowest price to get…business but also provide energy affordability for the people of Barbados.”
Executive Director of the Caribbean Centre for Renewable Energy and Energy Efficiency, Dr. Mohammad Nagdee, described this phase as a catalytic milestone, and another example of how Barbados was “punching above its weight”.
Mr. Nagdee continued: “This is a major milestone towards Barbados achieving energy sovereignty and setting the standards of what it can look like for the remainder of the region…. Sustainable energy is a catalyst for sustainable development. If we get the energy conversation correct, then it’s trickled down….
“Do not underestimate how catalytical and impressive it is that Barbados has gotten to this point, [and] the ministry has gotten to this point in such a short space of time. It is nothing short of impressive, and it really takes leadership, and…a transformative vision. So, I am going to congratulate Barbados again, not just for participating, but for pioneering, I think that’s very important.”
In her address, Minister of Energy and Business, Senator Lisa Cummins, described the journey as a marathon, which was run at sprint pace. She indicated that the battery energy storage systems project, which was being launched, was on a parallel track.
“The Fair Trading Commission has already issued a decision on an energy storage tariff for any persons who are not in a position, or don’t want to wait for the battery energy storage system project to come into effect. The energy storage tariff, which is for systems below a megawatt, is…available,” Senator Cummins stated.
The Minister disclosed that a request for pre-qualifications on wind would be coming in a few weeks.