Updated National Energy Policy Approved by Cabinet

The Ministry of Sustainability and Climate Resiliency is pleased to announce that on 16 April 2024 Cabinet approved the updated National Energy Policy 2024-2045 and the accompanying Implementation and Monitoring Plan. 

This is the first update to the National Energy Policy since its initial approval by the Cayman Islands Government in 2017. "The approval of the updated National Energy Policy underscores the Government's unwavering dedication to building a more sustainable future for all Caymanians and residents”, said Minister Ebanks-Wilks. 

Following an extensive consultative process as well as constructive dialogues and stakeholder feedback, the updated National Energy Policy includes revised targets, new definitions, and strategies to ensure market fairness and consumer inclusion. The Ministry will conduct a review of the Policy in two years to ensure that the goals and implementation strategies remain feasible and aligned with global efforts to combat climate change. 

“The updating of this Policy is a testament to the Ministry’s commitment to transparency, collaboration, and inclusivity. As we embark on this journey towards a sustainable energy future, we are grateful for the invaluable contributions and feedback from our stakeholders and the public who participated in this process." said Acting Chief Officer, Mrs. Neyka Webster.

Under the updated policy, customers will be empowered with the right to produce and self-consume up to 20 kilowatts of solar photovoltaic (PV) along with battery energy storage, this will assist with reaching the targets set, by fostering active involvement of residents in the transition to renewable energy. Additionally, the definition of utility-scale has been set as 5 megawatts or greater, ensuring clarity and consistency in regulatory frameworks. Speaking on the benefits of the new strategies set out in the updated Policy, the Hon. Minister of Sustainably stated, “The strategies within the policy lays the groundwork for a cleaner, more resilient energy landscape that will benefit current and future generations and it also paves the way to combat the cost of living by reducing the cost of energy”.

The new Implementation and Monitoring Plan outlines various strategies to support the revised target of achieving 100 percent renewable energy penetration by 2045. Some of these strategies include making it a priority for the regulator to solicit and approve utility-scale renewable energy projects and developing a consumer on-bill financing scheme to redirect payments from solar production to third-party financiers, subject to approval from the customer.

Furthermore, the Plan includes strategies to facilitate the transition to 100 percent electric vehicles by 2045. This involves assessing policies to encourage electric vehicle adoption, and investing in electric vehicle charging infrastructure throughout our Islands. Additionally, the Plan supports the implementation of more sustainable alternatives, including encouraging the use of electric vehicles, for a public transportation fleet.

Minister Ebanks-Wilks noted how ambitious the goals outlined by the updated policy were, but offered reassurance by stating that “the Government maintains an assertive stance and we recognise the importance of accelerating our progress. By prioritising renewable energy and sustainable practices, we not only safeguard our environment but also laying the foundation for a brighter tomorrow.” 

To learn more about the National Energy Policy and to read the updated 2024-2045 policy, please visit gov.ky/energy.