Chicago-based renewable energy company New Generation Power and International Electric Power were selected by Caribbean Utilities Company (CUC) to provide large scale renewable energy solutions to its power grid.
Under the terms of the contracts, New Generation Power will supply 3MW of wind energy and another 5MW of solar energy, while International Electric Power will deliver 5MW of solar energy.
CUC issued its request for bids on 13MW of alternative energy project in August 2011.
CUC vice president transmission and distribution Andrew Small said that with the high cost of fuel, CUC has been exploring large scale alternative energy options in an effort to help reduce and stabilize costs to its consumers and to lower emissions from fossil fuels.
"We had a very positive response to the August 2011 solicitation process and we are now pleased to be able to announce he selected bidders chosen to work with us in meeting our goal to bring large scale renewable energy to Grand Cayman electricity consumers within the next 16 months," Small added.
These projects, which will cost around XCD30m, are expected to be completed by the first quarter of 2015.
Production costs for solar will be at 20 cents per kWh, while wind would be at 14 cents per kWh.
Currently, CUC is in negotiation with the selected bidders for power purchase agreements and the projects are subject to approval by the Electricity Regulatory Authority.
