How much should Belco pay you for electricity?
The Regulatory Authority is inviting comment on proposed methodologies under consideration for calculating the feed-in tariff.
The FIT is the predetermined rate at which renewable energy is purchased by Belco from residential or commercial distributed generators, for the excess electricity they generate and feed into the Belco grid.
The review of the rate, currently at $0.2265/kWh, is meant to occur this year, since the last rate was set in 2019. However, the RA has chosen to also review the current methodology used to ensure that distributed generators are compensated at an accurate and an appropriate level as is required by the law.
To help people give feedback, the RA has compiled The Review of the Feed-in Tariff Methodology Consultation Document.
The document compares Bermuda’s methodology approach to that of a number of other regions, such as Australia, Barbados, Jamaica, France and California, and asks if we should adopt similar measures.
For example, one question posed in the document is whether Bermuda should adopt the levelised cost of energy (LCOE) approach adopted by Barbados. It also asks those who believe that Bermuda should adopt the LCOE, whether it should only apply to new assets, while existing or legacy assets should continue receiving the rate calculated through avoided cost of generation.
According to the document, Bermuda’s FIT is determined on historical fuel and lube oil costs, on the basis that they are representative of actual values. The FIT based on this approach is updated every three years. The document questions whether it should be looked at more frequently, as is done in other countries.
The RA announced in April 2018 that consultation on the matter was under way.
At the end of the consultation process, the RA will issue a revised version of the general determination that sets the FIT methodology.
It plans to make responses to the consultation document available on its website within four weeks at the close of the consultation period.
To read the document, go to www.ra.bm and click ‘Respond to an Open Consultation’ on or before 11.59pm on October 24.