Regulatory Authority of Bermuda (RA) has approved an adjustment in the Feed-In-Tariff (FIT), raising it from 0.131 $/kWh to 0.1915 $/kWh. This decision is a calculated response to the dynamic shifts unfolding in both the energy and economic landscapes.
The rationale behind this move is grounded in a commitment to maintaining a structure that not only aligns with international best practices but also remains in harmony with Bermuda’s legislative framework. This involves a systematic and meticulous approach to conducting regular, thorough reviews, leading to necessary modifications. Through this methodical process, the RA ensures that the FIT continues to function as a fair and transparent mechanism in the ever-evolving energy sector.
The FIT methodology, which lies at the core of this adjustment, is not merely an arbitrary number but a product of careful consideration. It is largely based on the avoided cost of generation, which is linked closely to the cost of fuel, the net economic benefits, and other essential adjustments. Accordingly, commencing January 1, 2024, the revised FIT value will stand at 0.1915$/kWh.
It’s essential to understand that this increase in FIT is not solely about incentivising small-scale renewable energy sources. Rather, it signifies a delicate balance between encouraging the adoption of renewable energy and safeguarding the interests of consumers and investment.
The RA is committed to at least a quarterly review of the FIT, demonstrating its adaptability to changing market conditions. This affirmation ensures that fairness remains paramount in the dynamic landscape of the energy sector. The reviews are a proactive measure, allowing the RA to respond effectively to market fluctuations while upholding the principles of integrity and transparency.
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