Regulator denies CUC renewables generation

In a recent press release, the Utility Regulation and Competition Office detailed how they had approved CUC’s formal request for additional generation, but that generation would only take the form of electricity generated by non-renewable means. Although CUC submitted four different scenarios of how they would be able to generate electricity, the regulator determined that the three which included electricity generation via renewable meant were not allowed. The process by which CUC had requested approval for its much-needed additional generation is called a Certificate of Need (CON). A CON is a formal document submitted by CUC to the regulator to demonstrate the need for additional Firm generation capacity three years in advance of the projected need. Once the CON is approved, that triggers a competitive bidding process under the rules outlined in CUC’s Transmission and Distribution Licence.

URCO Board Chairman, Samuel Jackson, said the process took much longer than would ordinarily be necessary because CUC’s submission included alternative proposals for generation which failed to meet both the terms of its T&D Licence and the prescribed format for a Certificate of Need.

“Despite this, given the now urgent need to address grid stability, which is due to the failure of CUC in previous years to submit a CON in accordance with its Licence, the Board decided to treat CUC’s submission as a Certificate of Need. The Board was nonetheless constrained by CUC’s Licence and the legislative framework to only authorise the one option in the proposal for electricity generation which conforms to CUC’s Licence, namely the option of 90.1 MW of Firm generation. In so doing, we were mindful of our duty to protect the public interest by, inter alia, promoting competition in electricity generation, in accordance with the relevant statutory provisions and CUC’s Generation Licence,” he said.

The URCO said despite this ruling it supported renewable energy.

“This Determination does not preclude renewable integration,” they said, adding they were in the final stages of issuing a 22.5 MW dispatchable solar-plus-storage project in the next 60 days along with plans for further renewable solicitations.

“This decision on the CON simply ensures that the requisite generation is introduced fairly and transparently, through open competition,” it said.

Sonji Myles URCO added: “This is not a rejection of renewables - it is a defence of process and fairness. We are already advancing a 22.5 MW renewable dispatchable solar-plus-storage project through a competitive process and more will follow later this year.”