Wells lashes out as RESG program 'stopped in its tracks'

Mon, Nov 30th 2015, 10:11 PM

The suspension of the Renewable Energy Self Generation (RESG) Program has drawn the ire of many in the private sector. Some say the program has been "stopped in its tracks". This is a sentiment echoed by former Parliamentary Secretary in the Ministry of Works and now Free National Movement (FNM) MP for Bamboo Town Renward Wells.

In January 2014, the Christie administration passed a law enabling RESG, which was widely hailed and welcomed by the private and public sectors alike. As Wells noted, the RESG legislation "basically opened up the renewable energy sector in The Bahamas and really gave Bahamians an opportunity to be empowered."

Wells said that legislation led to "expanding and creating and opening the opportunity for renewable energy plants here in The Bahamas, both from a residential standpoint and a commercial standpoint". As a long-time proponent of renewable energy, he told Guardian Business yesterday he had been happy to see that legislation pass. However, the situation has suddenly changed, and the RESG program has been "stopped in its tracks" according to one private sector spokesman.

The new electricity sector reform process effectively places U.S.-based PowerSecure - the private company contracted to manage the new electricity company, Bahamas Power and Light (BPL) - in charge of the RESG program with a five-year fiat. The response was immediate. The following was posted on the BEC website:

"Due to proposed legislative and regulatory changes coming out of the energy sector reform process it is regrettable that we must suspend the RESG Program. Customers that may have installed grid tied systems are advised that they must disconnect same until the process restarts and they complete the required approvals and authorization process. Also customers are advised not to acquire any new systems until the required process is in place.

"Customers with off grid systems are reminded to ensure that they obtain an approved Ministry of Works electrical inspection certificate as this is a requirement for all electrical installations within The Bahamas and will also be a requirement for the issue of a RESG certificate when the program restarts. We regret this delay but look forward to restarting the program as soon as possible."

Wells called this state of affairs "a sad, sad day".

"My quibble with it is that you now have a lot of persons in The Bahamas who have already taken the time to either install on their homes grid-interactive systems, or just simply grid-tie systems. A grid-interactive system is a system wherein you have a battery that's a part of the overall renewable mix which means that you can generate energy during the night. A grid-tie system is simply where you put solar panels on your house and directly feed your house during the day... and BEC supplies your energy during the night.

"What the renewable energy legislation passed in January did was it gave you the opportunity to have grid-tie systems where you were able to tie directly into BEC's grid, because before that time you could have a renewable energy system, but you could not tie into the BEC grid. What this legislation effectively does is go back to pre-January," he said.

The inability to tie into BEC's grid means that Bahamians can only make use of the grid-interactive system, which is much more expensive.

"I think that is a step backwards in terms of what needs to happen in the energy sector," Wells said.

Double standard
Meanwhile, Wells argued that there is "truly a double standard" at play and there are a number of politicians in the House of Assembly who now have solar "installed on their house," and hooked into BEC.

"So now you're telling any other Bahamian at this stage who wants to come along that he can't tie his system into BEC. So what you're doing is denying him a right that you are now benefiting from. So my position is, all of those politicians in the House of Assembly and all of those who have solar systems -  if the individual who is coming along now has to have a stand-alone system which means he has to have a battery, then they should also be disconnected from the grid," he said.

"They should not be enjoying the benefits of being hooked up to BEC and those who are coming along now not have the same benefit."

A lot of fury
Joshua Key, general manager for SuperGreen Solutions Bahamas, noted over the weekend that, "There was a lot of fury last week when the Renewable Energy Self Generation (RESG) program was stopped in its tracks. Why? Bahamians invested into it."

Writing in his Guardian Business column "Green Energy," Key pointed out that this program allowed Bahamians to install solar systems on their residences and businesses, tie into BEC's grid, and receive credit on their electric bills for the solar power.

"Considering the high cost of electricity, it was a welcomed initiative that many Bahamians had started to make use of, expecting to save more than they invested in just a few short years. However, the door on this opportunity has been slammed shut... for now... With no firm date for the 'restart', people who have invested tens of thousands of dollars on grid-tied solar systems are left to wonder how long until their investment starts to pay off.

"This especially hurts Bahamians who borrowed for their solar systems - they still have to pay loan interest, but their solar systems are no longer allowed to lower their electric bills to cover the cost."

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