General Manager of the Anguilla Electricity Company (ANGLEC), Thomas Hodge, has given an interview to The Anguillian newspaper, in which he answered a number of important questions of general public interest.
The interview follows:
Why is the price of electricity so high in Anguilla?
The cost of diesel is the single largest factor that affects the price of electricity. Fuel accounts for 90% of our production costs, and in the last two years, the price of diesel increased by about 50%. The high prices seen throughout most of the Caribbean are a direct result of this. Apart from that, electricity is relatively expensive in the region because of our physical circumstances. Diesel power plants are used in similar islands because of the small size of our electrical systems and the logistics of fuel delivery. As isolated systems, we operate individual power plants, and we do not enjoy the benefits of cheaper electricity generation methods that are suitable for larger electrical networks (like Nuclear or Coal plants). Nonetheless, we understand the distress that a high electricity price has caused our customers, hence our transition to alternative and renewable energy technologies is a high priority for ANGLEC.
Why Anguilla doesn’t go with 100% renewable energy?
A complete transformation to renewable energy would be ideal. However, the challenging issue is that most forms of renewable energy are intermittent and unpredictable, compounded by the fact that electricity cannot be cheaply stored. Without electricity storage, conventional energy is needed to “fill the gaps” when renewable energy is unavailable. We expect that as load management and electricity storage technologies continue to improve, we would be able to absorb greater proportions of renewable energy on the grid.
What steps to date has ANGLEC taken to support renewable energy use on Anguilla?
Our renewable energy initiatives have been in line with our strategic objectives: to invest in our own renewable energy capacity; and to create an environment for ANGLEC’s customers to become involved in renewable energy.
Investment in renewable energy capacity
It is important to know that we have already invested in infrastructure. As part of ANGLEC’s 2008 plant expansion project, a dedicated incoming renewable energy breaker was installed at the power plant to allow renewable energy integration at ANGLEC’s core. The second step was in the preparation of a technical document which detailed our requirements for a solar power plant. Following this, we have prepared a draft Request for Proposal and will soon invite qualified contractors to bid on the construction of a small company-owned PV plant.
Creating an environment for ANGLEC customers to participate in renewable energy use
ANGLEC has done studies to determine the most feasible approach to enable customer renewable energy integration, given the size of our system and nature of the available resources. We will soon begin the deployment of an Advanced Metering Infrastructure onAnguilla. That project will not only allow bi-directional metering (for renewable energy users) but deliver an enhanced set of features to our customers. Prepaid billing and remote energy monitoring are a few of those features. On a national level, ANGLEC has been working with the Government of Anguilla and CASTALIA strategic advisors (engaged by the Government of Anguilla and the Climate Development Knowledge Network) to develop the legislative framework to enable renewable energy integration.
For persons that don’t have the money to invest in renewable energy, will they be left out? Is there anything that they can do?
Absolutely no one will be left out. Investments that ANGLEC makes in renewable energy capacity will reduce fuel costs (fuel surcharge) for all consumers, so everyone stands to benefit. Of course, customers who make additional personal investments in renewable energy stand to get additional benefits. Notwithstanding that, we don’t need a solar panel or expensive equipment to use renewable energy because renewable energy isn’t only for producing electricity. There are many ways to reap renewable energy in its raw form: from collecting rainwater for consumption to drying clothes in the sunlight; to using a solar water heater. These are all good examples of how renewable energy can be used to replace R/O plants, clothes dryers, and electric water heaters.
Do you think that renewable energy will destroy ANGLEC?
No, because ANGLEC sees good tariff design as an essential component of renewable energy integration initiatives. Many utilities around the world continue to operate on rate structures that provide rewards for higher energy sales. These old rate structures would also threaten a utility’s existence when sales drop. Clearly, that old model is incompatible in an age of energy conservation and renewable energy integration. Modernizing the tariff structure allows ANGLEC to exist in our new environment, recognizing the critical role that the utility plays to maintain a safe, reliable and consistent electricity supply on Anguilla.
