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Because of the oil prices, BL&P increased the fuel charge from 5.6 US-cent/kWh in June 2002 to 10.5 US-cent/kWh in August 2006, and within this 4 years period the average electricity bill increased by over 28%, which had a negative impact on the competitiveness of the manufacturing and tourism sectors (Energy Policy Committee 2006). Two years later in August 2008, for commercial customers the fuel charge was even 24.5 US-cent/kWh and dropped to 5.9 US-cent/kWh in December. Residential customers were cushioned from the full impact of the increase through a government subsidy on fuel oil. It was introduced at end of December 2007 and held the Fuel Clause Adjustment at 11.7 US-cent/kWh. It cost the government about 36 million BBD (about 18 million USD) and was discontinued in November 2008 when the Fuel Clause Adjustment fell below subsidized levels (BL&P 2009b). Giving subsidies for electricity by governments is a very rare and exceptional case because usually governments do not have the necessary financial surplus and operate with a deficit (Auguste pers. comm. 27 April 2010). A CARILEC survey confirms that electricity rates in Barbados are among the lowest in the region (BL&P 2009a), which is due to their own oil reserves. Electricity prices as of March 2010 were 0.58 BBD/0.28 USD (Husbands pers. comm. 24 March 2010) 4.1.3 Renewable Energies Renewable energies actually have a long history in Barbados. When sugar was introduced in the middle of the seventeenth century, soon several hundred multi-bladed windmills were used to pump water on the sugar plantations, but most of them have been dismantled by now. Sixty years ago, even 50% of Barbados primary energy was generated from renewable energies, when sugar cane waste or bagasse was the main source of process heat for the 22 sugar cane factories (Headley 2000). Today, renewable energies would have a share of 15% of the overall energy mix, basically because of the extend use of solar water heating systems which replace common electrical devices (Loy 2007). But solar water heaters do not generate electricity as other renewable energy technologies and are therefore often neglected and not included in the country’s energy mix. That is why the renewable energy share for Barbados is often stated with 0%. Case Studies 32PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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