Updated National Energy Policy gets the green light

The updated National Energy Policy 2024-2045 has been approved by government, according to a release from the Ministry of Sustainability and Climate Resiliency, the first update to the National Energy Policy since its initial approval by government in 2017.

The approval comes after an extensive consultative process and includes revised targets, new definitions, and strategies to ensure market fairness and consumer inclusion, the release said. The policy will be reviewed in two years to make sure the goals and implementation strategies remained feasible and aligned with global efforts to combat climate change.

Acting Chief Officer, Neyka Webster, said: “The updating of this Policy is a testament to the Ministry’s commitment to transparency, collaboration, and inclusivity. As we embark on this journey towards a sustainable energy future, we are grateful for the invaluable contributions and feedback from our stakeholders and the public who participated in this process.”

Under the updated policy, customers can produce and self-consume up to 20 kilowatts of solar photovoltaic along with battery energy storage. This would assist with reaching the targets set, by fostering active involvement of residents in the transition to renewable energy.

The definition of utility-scale has been set as 5 megawatts or greater, ensuring clarity and consistency in regulatory framework, the Ministry said.

Speaking on the benefits of the new strategies set out in the updated policy, Minister Ebanks-Wilks said strategies within the policy laid the groundwork for a cleaner, more resilient energy landscape that would benefit current and future generations and it also paved the way to combat the cost of living by reducing the cost of energy.

The new Implementation and Monitoring Plan that has also been approved outlines various strategies to support the revised target of achieving 100 percent renewable energy penetration by 2045.

Some of these strategies include making it a priority for the regulator to solicit and approve utility-scale renewable energy projects and developing a consumer on-bill financing scheme to redirect payments from solar production to third-party financiers, subject to approval from the customer.

The plan also includes strategies to facilitate the transition to 100 percent electric vehicles by 2045. This involves assessing policies to encourage electric vehicle adoption, and investing in electric vehicle charging infrastructure throughout the Cayman Islands.

Additionally, the plan supports the implementation of more sustainable alternatives, including encouraging the use of electric vehicles, for a public transportation fleet.

Minister Ebanks-Wilks said: “The Government maintains an assertive stance and we recognise the importance of accelerating our progress. By prioritising renewable energy and sustainable practices, we not only safeguard our environment but also laying the foundation for a brighter tomorrow.”