Barbadians may have to pay more for electricity in the short term as the country transitions to renewable energy, Barbados Chamber of Commerce and Industry council member and former Barbados Light & Power chief executive Stephen Worme has warned.
Worme said additional investment would be required to accommodate increasing amounts of renewable energy, while existing conventional generating capacity would have to be maintained to ensure the stability and reliability of the electricity grid.
“There will definitely be a time where we are going to be requiring equipment to actually provide the renewable energy, but we need to maintain some of the existing equipment to make sure that the transition goes smoothly,” he said.
As a result, consumers could face an increase in electricity costs, although Worme said it was too early to determine the extent.
“There will potentially be an increase in costs. How much it will be, we cannot tell, but there are these impacts. The customer will be impacted. To what extent? As I said, we don’t know,” he said, adding that the government was trying its best to manage the situation.
Worme said the true cost of the transition should not be measured solely by the price of renewable energy or investments in new equipment.
Instead, consideration must also be given to the economic consequences of an unstable electricity supply, he said.
“If the stability of the power supply is impacted there is additional cost to the business community.”
Worme said businesses could be forced to invest in generators or other backup systems to ensure they could continue operating during disruptions, while consumers could also face additional costs if businesses were unable to provide goods and services reliably.
The chamber had been involved in discussions with the government aimed at ensuring the renewable energy transition was properly managed, with both affordability and grid stability being considered, Worme said.
“We are looking at costs because that’s a critical part of it, but we are also looking at making sure that the stability of the grid is maintained.”
Worme stressed that energy security must also be considered alongside the immediate cost of electricity.
With international conflicts creating uncertainty in global energy markets and fuel supplies, he said Barbados’ ability to generate more of its own electricity from renewable sources could provide greater certainty.
“Having our own capability to produce through renewable energy is going to be a major factor in helping to build certainty and overall energy security.”
Worme suggested that consumers may have to bear some additional costs during the transition if the investments ultimately reduced costs and improved reliability in the longer term.
“Even if you pay a little bit more today, it may be beneficial where we are reducing costs in other areas as we create that certainty of costs and of supply of electricity.”
(JB)
