What is the key role that Caribbean Utilities Company plays in the Cayman Islands?
We are a vertically integrated electric utility handling generation, transmission, and distribution under an exclusive license for transmission and distribution. We serve over 35,000 customers with a demand of 130 megawatts and an installed capacity of 166 megawatts. Our reliability is among the best in the region—last year, average outages were only 1.8 hours per customer, lower than the U.S. investor-owned utility average. Given our location in a hurricane zone, we invest heavily in resilience. All substations are built in reinforced concrete structures designed to withstand 200 mph winds and are interconnected with underground transmission lines to protect service continuity.
How are you preparing for future demand as the Cayman Islands continue to grow?
We have developed an Integrated Resource Plan to anticipate future demand and identify the most cost-effective energy sources. We have proposed a 22.5 MW solar-plus-storage facility—bids were submitted recently, and results are expected by year’s end. This project will help meet growing needs sustainably and cost-effectively. Solar plus storage is now the least-cost option, reducing emissions while keeping electricity affordable. Diesel engines will remain for backup, but the long-term vision is a balanced mix emphasizing renewable energy.
What percentage of your energy currently comes from solar, and how do you plan to increase it?
At present, solar accounts for about 3% of our total energy mix. Once the new 22.5 MW plant is completed, solar will provide around 15% of total energy. The Cayman Islands’ National Energy Policy aims for 30% renewables by 2030 and 100% by 2045, goals we believe are achievable. Most of our solar energy now comes from roughly 1,000 customers with rooftop systems and a 5 MW commercial solar farm. Utility-scale solar projects will be key to expanding generation efficiently and affordably.
What are the main challenges and opportunities for solar expansion on the islands?
The main challenges are land availability and cost. Rooftop systems are valuable but expensive, costing roughly twice as much per kilowatt-hour as utility-scale solar. Large-scale farms are more efficient and affordable, though land is limited. We’re identifying suitable tracts and exploring creative options like solar car parks or airport installations. Reducing reliance on imported diesel—currently about 18 U.S. cents per kWh just for fuel—is a top priority. Greater solar capacity means lower costs and higher energy security for our consumers.
What key partnerships are supporting your growth and modernization?
We have built long-term relationships with global leaders like MAN Diesel (now Everllence) and ABB (now Hitachi Power Grids). Recently, we refurbished five engines through our partnership with Everllence, improving efficiency and extending lifespan by 25 years at a fraction of replacement cost. We’ve also partnered with Wärtsilä of Finland to install a battery energy storage system, saving about $2 million in fuel costs in one quarter alone. These collaborations enhance reliability, reduce emissions, and directly benefit consumers through lower fuel costs.
How important are U.S. partnerships to your operations and future projects?
They are vital. Most of our materials and equipment are sourced from the U.S., and we rely heavily on suppliers in Florida—particularly after hurricanes. Engineering, design, and construction expertise for solar-plus-storage projects also largely comes from U.S. firms. Additionally, our majority shareholder, Fortis Inc., is based in Canada and also operates major utilities across the U.S., which gives us access to strong technical and financial support. These partnerships are essential as we expand renewable capacity and modernize our grid.
What is your outlook for the future of the Cayman Islands and CUC’s role in it?
The future is bright. The islands continue to grow in tourism, financial services, and real estate, and we must stay ahead with continuous investment. In 2024 alone, we invested over $100 million to strengthen infrastructure. We raise long-term debt primarily in the U.S. private placement market and are publicly listed on the Toronto Stock Exchange. The renewable transition will require more capital, but it also promises greater affordability for consumers. For the first time, we can pursue sustainability and lower costs simultaneously—an exciting opportunity for both investors and residents.
