The Renewable Energy Generation, or REG, program is envisioned to be launched this year, according to CUC’s latest independent audit report published by the Office of the Public Auditor.
“Prospective investors with the wherewithal to install utility size REG of over 500 kilowatts will be invited to bid to supply to the CUC grid. CUC will support the effort of bona fide companies interested in developing renewable energy in the CNMI, particularly in the areas of solar, waste gasification, geothermal and wind,” CUC said in its report.
“On Saipan, the existing base load plants fired by expensive diesel fuel have a remaining economic life of seven to 10 years. CUC will start planning for replacement that has at least a 10 percent REG component depending on available technology,” it added.
Majority of revenues that CUC generates in providing utility services to the community go to fuel payments.
In 2010, CUC ended up spending over $90 million but its operating net revenues totaled over $82 million only.
Its single biggest expense then was production fuel at over $54 million.
“Production fuel is the single largest expense of CUC, accounting for 60 percent of operating expenses in 2010, 53 percent for 2009 and 69.1 percent for 2008,” the audit report for CUC stated.
With fuel prices constantly rising amid continued crisis in certain parts of the Middle East, CUC said it would be best to explore renewable energy sources to help reduce the cost of electricity in the CNMI.
