FortisTCI has conducted a comprehensive review of the provisions outlined in the draft 2023 Renewable Energy and Resource Planning Bill and a formal consultation process has commenced with the Turks and Caicos Islands Government (TCIG) and the Energy and Utilities Department on the Bill.
The consultation process on the draft Bill, which includes the energy provider FortisTCI, TCI Government, and independent consultant Mr. Abayomi Carmichael, who was engaged by TCI Government to facilitate public consultation, started on Tuesday, October 8, 2024. This follows a kick-off meeting held on Wednesday, September 18, to discuss the consultation process. Additional meetings are planned over the next few months to continue formal discussions.
FortisTCI strongly supports renewable energy in the Turks and Caicos Islands. The Company believes the continued integration of renewable energy sources is necessary for the country's long-term sustainability, to diversify the energy mix, lower electricity rates over time, and reduce carbon emissions. This year alone, approximately 50% of the Company's capital budget was committed to clean and transitional energy projects, with ongoing commitments to invest in renewable energy and low-carbon energy sources.
The draft Renewable Energy and Resource Planning Bill, in its current form, aims to encourage the development and use of renewable energy in TCI. The Bill sets forth the licensing requirements for renewable energy producers and guidelines for connecting to the grid. It proposes an energy levy for solar energy producers, details licensing provisions for renewable energy installers, and addresses the roles of the Minister and the Energy and Utilities Commissioner.
The Bill also includes a net billing arrangement, which enables solar energy producers to sell electricity back to the utility. Additionally, the Bill provides a framework for the development of an Integrated Resource Plan (IRP). The IRP is a strategic planning tool to forecast the country's future energy demand and establishes the pathway and energy sources needed to meet those demands. The current national roadmap for renewable energy integration, also called the Resilient National Energy Transition Strategy (RNETS), sets the country’s target at 33% renewable energy by 2040.
FortisTCI, as the electricity supplier, has articulated its vision regarding provisions in the draft Bill to support a balanced, equitable and effective approach to renewable energy integration.
- Role of the Public Supplier: The Company’s continued investment in renewable energy is fundamental to its obligation to serve, and to provide customers with least-cost, reliable electricity.
- Grid Integrity and Safety: The connection of independent solar systems to the grid should be done in a manner that preserves the integrity of the grid and ensures the continued safety of FortisTCI employees and the public. Proper protocols are vital to maintain a steady, safe and reliable power supply.
- An Integrated Resource Planning process should be established to determine the most cost-effective strategies for meeting customers' future energy needs. This process is key to guiding investment decisions and resource allocations.
- Equitable Benefits for All Customers: Those who do not install renewable energy systems should not cross-subsidize, that is, pay the associated costs, for those who do.
In addition, FortisTCI anticipates that incoming renewable energy legislation should follow sound regulatory principles and interact seamlessly with the Electricity Ordinance and related regulations.
