The government is preparing to roll out a new hybrid tariff for battery energy storage, aimed at making it easier for investors to enter the renewable energy space.
While acknowledging the fully operational Fair Trading Commission’s Energy Storage Tariff, which allows systems under one megawatt to connect to the grid, Energy Minister Senator Lisa Cummins says the goal is to further streamline access.
She was speaking on Friday during the launch of the second phase of the Battery Energy Storage System (BESS) procurement.
“The idea of having two separate tariffs at all times running in parallel is not where we want to go next,” Cummins said.
“We have also discussed and agreed that the next step very much has to be the development of a hybrid tariff.”
The Energy Storage Tariff was first introduced through a pilot project by the FTC in 2023.
It was created to support smaller-scale battery installations and is currently available for those who do not wish to wait for the results of the larger, 60 MW BESS tender process.
Cummins encouraged prospective applicants to explore the existing tariff as a viable entry point into the sector, while noting that the ministry has been working to redesign its licensing portal to support both the current and upcoming frameworks.
She said the hybrid model, once introduced, would help unify the storage tariff with the wider renewable energy pricing system, ultimately creating a more investor-friendly environment and expanding opportunities for small and medium-sized developers.
The announcement came amid growing momentum behind the country’s energy transition, with the second phase of the BESS procurement, officially launched to bring 60 MW of battery storage to the grid and unlock capacity for some 100 MW of renewable energy.
The Ministry of Energy has said the push toward storage is critical for resolving gridlock issues that have stalled new connections, leaving millions in investments tied up across the country.
According to the energy officials, a fully functioning tariff and procurement model is a key step toward Barbados reaching 100 per cent renewable energy by 2035.
(SM)
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