Barbados Launches Caribbean’s First Competitive Battery Energy Storage Auction
Barbados is making a landmark move in its energy transition, positioning itself as a leader in the region. In late 2025, the Government of Barbados, through its Ministry of Energy and Business, officially launched the Caribbean’s first-ever competitive tender for utility-scale battery energy storage systems (BESS). This pioneering initiative is set to reshape the island’s power market and establish a powerful precedent for neighboring nations.
The auction represents a critical step in Barbados’ journey toward a 100% renewable energy future, aiming to enhance grid stability and seamlessly integrate intermittent renewable sources like solar power.
The Details of the Barbados energy storage auction
This competitive process invites both local and international developers to bid on a significant energy storage project. The government is seeking to award 60 MW of capacity and 240 MWh of storage through a build-own-operate (BOO) model. This framework means the successful bidder will be responsible for the financing, construction, and long-term operation of the battery storage facility.
Bids are to be submitted via the government’s electronic procurement platform, with an initial deadline of March 6th, though this may be extended.
The tender is not just about capacity; it sets high technical and operational standards to ensure the project’s success and longevity. Key requirements include:
- Technology: The use of Lithium Iron Phosphate (LiFePOâ‚„) batteries is specified, a technology known for its safety and long lifecycle.
- Performance: Projects must demonstrate a minimum efficiency of 85% and an availability of 95%.
- Grid Support: The systems must be capable of operating in “island mode” and adhere to strict grid response times, crucial for maintaining a stable power supply on an island grid.
A Robust Framework to Attract Investment in the Barbados energy storage auction
Understanding the need to attract serious and experienced developers, Barbados has structured the auction with a robust contractual and financial framework. This is the country’s first foray into using price-based competition in its power sector, a move supported by multilateral institutions.
The contractual package for the winning bidder includes:
- A Storage Licence
- A Storage Agreement with the utility, Barbados Light & Power
- An Interconnection Agreement
- A Liquidity Support Guarantee from the Central Bank of Barbados, covering up to three months of payments to mitigate financial risk for the operator.
Furthermore, bidders are required to show prior experience in developing similar projects and must submit a comprehensive Decommissioning Plan within 12 months of the agreement, with a plan to fund it within 18 months.
Setting a Benchmark for the Caribbean with the Barbados energy storage auction
This auction is more than just an infrastructure project for Barbados; it’s a strategic initiative with far-reaching implications. By establishing a clear regulatory and financial benchmark, Barbados is creating an attractive environment for private sector investment in clean energy.
The successful implementation of this BESS project will not only bolster the island’s energy autonomy and grid resilience but will also serve as a vital case study and a potential model for other Caribbean islands facing similar energy challenges. It signals a new era for energy investment in the region, demonstrating how competitive procurement can accelerate the transition to a sustainable and independent energy future.
