Solar power accounts for 45 per cent of STUCO’s supply | THE DAILY HERALD

From left: Tania Franco-Wijngaarde, Government Commissioner and STUCO shareholder representative Marcolino Franco, STUCO Chief Executive Officer Fred Cuvalay, new STUCO Supervisory Board member Martien den Blanken and Chairman of the Supervisory Board Jason Rogers at St. Eustatius Utility Company’s New Year’s party.

 

EUSTATIUS–Solar power now accounts for 45 per cent of the energy supplied by St. Eustatius Utility Company STUCO, said Chief Executive Officer (CEO) Fred Cuvalay during the company’s annual New Year’s party during which it also celebrated its fifth anniversary.

 

  On hand for the celebration were shareholder representative Government Commissioner Marcolino Franco, STUCO Supervisory Board members, including Ministry of Infrastructure and Water Management representative Martien den Blanken, GEBE N.V. CEO Kenrick Chittick, STUCO employees and invited guests.

  “2018 has seen the first full year of operation of our solar park, which on most days supplies 100 per cent electrical power to the island, generally between 9:00am and 7:30pm,” said Cuvalay.

  He said it is  STUCO’s intention to expand the solar park within the current facility and  to increase its renewable energy share to 65 per cent, with the ultimate goal to have 100 per cent of the energy supplied by solar power from 8:00am to 10:30pm, while also enhancing the grid’s resiliency.

  “The grid has become even more stable due to the inclusion of solar power,” Cuvalay said proudly.

  STUCO is currently in the second year of a five-year maintenance agreement with Eco-Energy for the solar park. After these five years, STUCO is to assume all maintenance activities under this agreement. Specialised equipment service at the park remains under a 10-year agreement with solar energy company SMA. In the coming two years, personnel at the production facility will be (re-)trained in solar technology.

  Electrical cables are placed underground in a project funded by the 11th European Development Fund (EDF). STUCO is strengthening the electrical grid against environmental impacts such as hurricanes, as well as against natural degradation caused by highly corrosive salt air and other weather conditions.

  “As such, we have already seen fewer grid disturbances and expect more of the same as we continue to place more of the medium voltage cables underground,” said Cuvalay.

  About 60 per cent of the cables previously were underground; after completion of the project an estimated 80 per cent will be underground.

  “We expect to have this done before the next hurricane season. If a category-three hurricane should pass our way, we should be able to maintain the power supply to about 70-80 per cent of our customers during the storm,” Cuvalay said. This would also enable STUCO to restore power to the entire island quickly after a storm.

 

Tariffs

  The Electricity and Water Law requires that STUCO charge cost-based tariffs with a reasonable return on investments, to re-invest and enhance the production of electricity and water. This is a basic requirement for any utility company to function professionally and is applied throughout the Caribbean and the wider world by energy regulators.

  All electricity and water tariffs in the Caribbean Netherlands are set by the Netherlands Authority for consumer and markets (ACM) using the internationally recognised and applied weighted average cost of capital (WACC) method, Cuvalay said.

  Tariffs comprise fixed and variable cost. As compared to 2018, these costs set by ACM for STUCO saw the fixed cost increase by 4.4 per cent, while the variable cost decreased by 4.5 per cent.

  “In fact, the tariffs as required by law for STUCO, when verified, have virtually not changed. However, the Ministry determined in 2017 and 2018 that the fixed cost in the two lower tariff groups should be more affordable and for this, in agreement with the ACM, provided a subsidy.

  “This subsidy the Ministry suddenly does not wish to guarantee or agree to as yet for 2019. Without this subsidy the fixed cost for the two lower tariff groups shall increase by 462 per cent and 127 per cent, respectively, from US $3.64 per month to $20.45 per month for the lowest, and from $21.71 to $49.20 per month for the next lowest group.”

  In Cuvalay’s opinion the same policy should apply to all utility companies in the Caribbean Netherlands.

  “Should this be the case, then we would not be dealing with this topic at this time. As stated before, thanks to the subsidy provided by the Ministry, they ensured the affordability of the cost-based water tariffs set by ACM for STUCO in accordance with the law. This Ministry currently provides a subsidy … and as a result, all customers pay $6.85 for the fixed tariff for water,” he said.

  Cuvalay said that in a meeting with the shareholder and three ministries it had been decided and later communicated to STUCO by the shareholder “that provisionally we shall maintain the same fixed component of the tariffs to customers as was determined for 2018.”

Source: The Daily Herald https://www.thedailyherald.sx/islands/84813-solar-power-accounts-for-45-per-cent-of-stuco-s-supply

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