CARIBBEAN UTILITIES COMPANY, LTD WELCOMES REGULATORY APPROVAL OF THE CERTIFICATE OF NEED

Executive Summary

• Caribbean Utilities Company, Ltd. (CUC) received regulatory approval from the Utility Regulation and Competition Office (URCO) for its revised Certificate of Need (CON).
• The approved CON establishes the requirement for 94 megawatts (MW) of additional generation capacity to support Grand Cayman's growing electricity demand.
• The capacity is structured into three distinct blocks to allow for competitive procurement and the participation of alternate generation technologies.

Key Details

• Regulatory Approval: URCO approved CUC's revised CON, which was originally submitted on February 10, 2026.
• Capacity Requirements: The CON identifies future electricity needs and mandates the development of 94 MW of additional generation capacity.
• Procurement Structure: The required capacity is divided into three distinct capacity blocks, facilitating a competitive procurement process for new generation resources.
• Investment Context: CUC invests up to US$100 million annually in system reliability and resilience. Since 2020, these investments have contributed to a 50% reduction in outage time.
• Demand Metrics: Electricity demand on Grand Cayman is increasing, with a record peak load of 129.5 MW recorded on July 31, 2025.
• Regulatory Obligation: Under its Transmission and Distribution licence, CUC is required to submit a CON to outline projected demand, after which the Regulator launches a competitive procurement process.

Notable Quotes

• "Energy is an essential service; the approval of the CON is an important step towards meeting Grand Cayman's growing electricity demand and providing a safe and reliable supply of electricity to the households and businesses we serve in the coming years." — Mr. Richard Hew, CUC President and CEO