Barbados has taken a decisive step toward long-term energy security and a modernised national grid with the signing of new operational licences between the Ministry of Energy and the Barbados Light & Power Company (BLPC). The agreement unlocks more than $500 million in financing for renewable energy projects, removes looming risks to grid stability after 2028, and sets the foundation for accelerated clean-energy development.
Speaking at the signing ceremony held at the Warrens Office Complex, Minister of Energy Senator Lisa Cummins described the move as essential for unblocking a system that had effectively reached “gridlock” due to limited storage capacity. The updated licences now make way for new power purchase agreements (PPAs)—a critical step in enabling independent power producers (IPPs) to supply renewable energy to the national grid.
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“It is important for projects to not just have connections to the grid, but to have signed power purchase agreements that establish the relationship between IPPs and the off-taker—namely the Barbados Light and Power Company,” Sen. Cummins said. “This is significant for the renewable energy sector.”
The signing also paves the way for major financing commitments. With the licences now aligned to the Electricity Supply Act, banks—represented at the ceremony by Scotiabank—can unlock the $500 million earmarked for renewable energy investments. These funds, long anticipated, were previously stalled without the supporting regulatory approvals.
Sen. Cummins explained that the transition from the former Electric Light and Power Act to the new Electricity Supply Act required detailed alignment of the pre-existing licences. “We had to ensure that the negotiated licences were fully harmonised with the new Act. That work has now been completed,” she noted.
A Modern Framework for Barbados’ Energy Future
Roger Blackman, Managing Director of BLPC, described the new licences as a modernised and comprehensive framework that will guide the utility’s operations for decades. “They cover all aspects of our operations—from generation and storage to transmission, distribution, sale and dispatch of electricity,” he said. “This creates certainty for investments, not only by us but also by independent power producers and the banks who are financing them.”
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The agreements replace the single franchise licence set to expire in 2028. The new structure divides the framework into two licences:
- Generation & Storage Licence – governing all current and future generating assets, including legacy systems and new installations by both BLPC and IPPs.
- Transmission, Distribution & Dispatch Licence – covering the poles, wires, associated equipment, customer service operations, sales, and a more modern dispatch system capable of balancing both BLPC and independent renewable assets.
The new PPAs and the regulatory framework will provide long-term stability, with licences extending up to 30 years for transmission and distribution infrastructure—ensuring investor confidence and ongoing upgrades to the grid.
Blackman emphasised that dispatch responsibilities will evolve significantly. “In the new framework, dispatch takes on a new dimension because we will now be dispatching not only our assets but also independent assets contributing to grid services.”
Ensuring Grid Reliability Beyond 2028
Sen. Cummins stressed that renewing and modernising the licences was essential to prevent grid vulnerabilities as the previous franchise approached its expiry. “By renewing licences that were meant to expire in 2028, you remove the challenges Barbadians don’t want to face—failing infrastructure, blackouts, and stalled investment,” she said.
She explained that Cabinet has already instructed the Chief Parliamentary Counsel to revoke existing orders, ensuring a seamless transition. “There will be no lacuna. The signature of the licences allows an immediate handover once the old orders are revoked.”
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The signing comes during Energy Month, marking the culmination of two years of intense work to strengthen the sector. This includes preparing for large-scale battery energy storage systems that will increase grid resilience and support higher levels of renewable penetration.
Building a Stronger, More Reliable Energy System
With these new licences in place, Barbados is positioned to accelerate its renewable energy transformation, support the growth of local and international IPPs, and modernise its grid with long-term investments in infrastructure and technology.
“We’ve cleared the 2028 hurdle once and for all,” Sen. Cummins concluded. “Now we can move forward with the financing and new infrastructure needed to deliver the modern, stable, and renewable energy system that Barbadians deserve.”
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