Caribbean submits new certificate of need to regulator

Executive Summary

• Caribbean Utilities Co. Ltd. (CUC) has withdrawn its initial Certificate of Need (CON) filed in June 2024 and submitted a new CON to the Utility Regulation and Competition Office (URCO) to address Grand Cayman's energy demand.
• The updated filing outlines generation resource requirements to meet projected energy needs by June 2027, without recommending specific technologies, allowing for competitive bidding on alternative solutions.
• The agreement with URCO acknowledges that solar generation coupled with battery storage may provide firm capacity, subject to standard industry analysis, and notes that interim measures may be required to meet short-term grid needs.

Key Details

• Regulatory Action: CUC withdrew its initial CON submitted on June 7, 2024; URCO formally rescinded its final determination on that CON issued on April 24, 2025.
• New Filing: A new CON was submitted to URCO for formal review, outlining generation resource requirements to meet Grand Cayman's projected energy demand.
• Timeline: Additional generation capacity is required to be in place by June 2027.
• Technology Approach: The new submission does not recommend specific technology. Instead, URCO is expected to issue a Request for Proposal (RFP), allowing bidders to propose alternative resource solutions.
• Interim Measures: Due to the short timeframe for supply, interim measures may be necessary to fulfill grid needs in the short term.
• Analysis Methodology: CUC provided URCO with an example methodology to evaluate alternative generation solutions, specifically citing a recently issued RFP for a dispatchable solar photovoltaic project to support forecasted load requirements.
• Strategic Goal: The initiative aims to strengthen Grand Cayman's grid and meet 2027 energy needs while accelerating the renewable energy transition.

Notable Quotes

• Richard Hew, President and CEO: "CUC remains steadfast in its commitment to accelerating Grand Cayman's renewable energy transition, ensuring that it is secure, affordable and delivers lasting benefits to households, businesses and communities we serve."