As Barbados sets its course towards its first-ever Battery Energy Storage System (BESS) competitive procurement process, a new chapter of opportunities is opening for the country and its people.

Heavily dependent on fossil fuels – over 90% of power generation is thermal – the shift towards a cleaner and more sustainable energy system supports higher energy sovereignty, reducing the burden of global oil market shocks on the local economy and the vulnerability to supply chain disruptions that have increasingly affected the global economy in recent years.

Moreover, it will contribute to cheaper electricity bills for households and businesses, curb imports and better protect the nation’s natural resources by reducing the risks of oil spills that could devastate the tourism industry, the main source of foreign exchange earnings for the island.

Even though Barbados' share of global emissions is modest, the country has been a powerful voice highlighting the vulnerability of Small Island Developing States (SIDS) to climate change. These vulnerabilities include rising sea levels, extreme weather events, and their resulting social and economic impacts, which threaten the livelihoods and infrastructure of island nations. In response, Barbados is committed to reducing its emissions by 20% by 2025 and 35% by 2030, including a 100% renewable energy target^[1].  

Strong Adoption of Solar Energy Across Sectors

In the process of scaling renewable energy solutions, Barbados has seen an unprecedented adoption of solar energy over the past decade, with residential and commercial photovoltaic (PV) installations totalling 117.36 MW on the Barbados Light and Power Company’s (BLPC) grid, which has 249 MW of thermal generation capacity.

Once considered a luxury, solar energy is now accessible to average citizens due to the falling price of technology, economic stability, and the Government’s commitment to benefits such as duty-free concessions for renewable energy equipment. Moreover, local financial institutions provide low-interest financing, making renewable energy attainable for all Barbadians.

Grid Capacity Challenges – the Case for Energy Storage Solutions

With its non-interconnected grid, Barbados faces pressing challenges in scaling renewable energy due to grid stability concerns. Solar energy is most abundant during the day, often producing more electricity than is immediately needed, while evenings see higher demand met by costlier (and polluting) thermal generation, in the absence of solar supply. With BESS, the grid could fully benefit from the excess energy generated during the day. This solution would address the mismatch between supply and demand, enhancing grid stability and enabling greater reliance on renewable energy.

In late 2023, new solar PV connections were paused because of grid stability concerns, underscoring the need for modernisation and integration of storage. BESS will enable excess energy to be stored during peak production and delivered during high-demand hours. Otherwise, the grid faces limitations in supporting additional renewable energy sources, despite their cleaner, safer and more cost-effective benefits. To fully harness its resources, Barbados needs a resilient grid infrastructure to accommodate and balance the influx of renewable energy.

Navigating the Path Forwards – Key Players and Next Steps

Barbados is investing in BESS through strategic planning. In May 2024, the Ministry of Energy and Business (MEB) partnered with RELP, an international non-profit, to lead a multi-year BESS procurement programme. As a transaction advisor, RELP is leading the process and other partners, such as Global Energy Alliance for People and Planet (GEAPP), Inter-American Development Bank (IDB), and the National Renewable Energy Laboratory (NREL), are assisting the Government of Barbados to design and implement the country’s first competitive procurement programme for utility-scale BESS. This implementation effort is also supported by local stakeholders, including the FTC and the Central Bank of Barbados, both of which are committed to the success of the process, as well as BLPC in its role as grid system operator.  

RELP’s Guiding Role in Barbados’ Energy Transition

RELP is an international independent non-profit organisation that supports governments in emerging and developing countries in accelerating the deployment of renewable energy and BESS at scale. It focuses on designing and implementing competitive procurement programmes and credit enhancement mechanisms to de-risk projects. RELP is fully funded by philanthropies, including The Rockefeller Foundation, Ballmer Group, Quadrature Climate Foundation, Climate Breakthrough, European Climate Foundation, David & Lucile Packard Foundation, OAK Foundation, and Good Energies, enabling it to provide pro-bono support.

RELP’s inspiration comes from Argentina’s RenovAr programme which drove large-scale renewable energy deployment between 2016 and 2019. RELP’s team, then acting as public officials, implemented four successful public tenders and a renewable corporate PPA market. As a result, 210 projects were mobilised (161 already commissioned and 49 under construction), attracting over US$11 billion in private investment and adding 8.7 GW of new generation capacity while achieving up to 31% cost reduction in procurement, making Argentina the most attractive renewable market in Latin America and the Caribbean, according to Ernst & Young's Renewable Energy Country Attractiveness Index (RECAI, 2019). RenovAr has saved over US$4.7 billion in fuel imports and system costs and avoided 34.5 million tonnes of CO₂e emissions while creating over 22,000 new jobs – an experience that aligns with Barbados' goals of promoting investment, economic growth, and sustainability.

In the Caribbean, RELP has been supporting the Generation Procurement Entity of Jamaica since 2023 in the design and implementation of its first 100 MW renewable energy auction, reaching RELP’s first milestone in the region, and supporting Jamaica in achieving its long-term renewable energy goals, while they are looking forward to continuing to provide support in the upcoming second tranche.

The End Goal – Reducing Costs and Carbon Emissions

Barbados is making strides towards a more sustainable power market, with broader integration of Independent Power Producers (IPPs), unlocking new investment opportunities and creating a competitive landscape. Accelerating renewable energy adoption is crucial for the environment and delivers significant long-term economic and social benefits. Transitioning from costly and volatile fossil fuels to cleaner, more sustainable sources improves energy affordability, enhances sustainability, and strengthens energy sovereignty. This shift supports business prosperity, elevates households’ quality of life and lays the foundation for a more resilient and prosperous future.  

In this context, RELP is fully committed to the people of Barbados, by establishing a long-term BESS competitive procurement process to fully harness the country's renewable energy potential, aiming to lower energy costs, increase access to clean energy, narrow the gap towards Barbados’ 100% renewable energy goal by 2030, and secure a resilient future for all.

^[1] As per the National Energy Policy (2019-2030) and its NDC

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