Energy Transition - Solar: The High-Cost Gamble of the CEB for Large Clients

The Central Electricity Board (CEB) is rolling out a renewable energy program with battery storage aimed at shopping centers, banks, and hotels. Striking a balance between technical opportunities and economic constraints, the sector is proceeding cautiously.

With its new Renewable Energy Scheme (RE Scheme), the CEB targets large commercial clients to promote the adoption of photovoltaic solar energy and smooth out electricity consumption. This initiative incorporates battery storage (Battery Energy Storage System - BESS) and Time-of-Use pricing to address the increasing constraints on the power grid. However, it also highlights the challenges of the energy transition, caught between ambitious goals and economic realities.

The program is aimed at commercial clients classified under tariff codes 225 and 225A: shopping centers, banks, and hotels. The goal is to encourage the integration of solar energy while prompting these large consumers to adjust their consumption habits through differentiated pricing. Electricity costs more during peak demand periods and less during off-peak hours.

In the hotel sector, which is the primary target, the response is cautious. Ashish Shibloll, legal and administrative director of the Marriott Group – which operates Le Méridien, The Westin, and The St. Regis in Mauritius – is not closing the door. "The CEB has presented us with several options, including the installation of storage batteries or photovoltaic panels," he explains. The group plans to convene its partners to assess the options.

However, enthusiasm remains tempered. "We must stay realistic: solar represents a very expensive investment for structures like ours, especially since the configuration of our roofs often makes implementation difficult," Ashish Shibloll tempers.

The hospitality industry faces an additional constraint: its consumption peaks in the evening, leaving little room for maneuver. "At those times, it is practically impossible to shift energy consumption without affecting the quality of service provided to clients."

Nevertheless, the Marriott manager expresses openness to the transition, provided that public authorities support the movement. "We hope that the next Budget will propose more incentive measures to help the hotel sector make this shift," he states.

The expert points to administrative heaviness, lengthy authorization procedures, and restrictive network access rules. According to him, these obstacles have discouraged decentralized initiatives. "Rooftop solar and community projects have been particularly penalized, yet they are essential levers," he laments.

While Ashish Shibloll primarily discusses cost, Sunil Dowarkasing broadens the criticism. "By limiting the program to large commercial clients, it effectively excludes households, SMEs, and local communities. A sustainable energy transition cannot be reserved for an economic elite; it must be inclusive," he insists.

Sunil Dowarkasing does not dispute the technical utility of the system. "The BESS is useful for network stability, but making it a requirement without a clear financial support mechanism prioritizes constraint over incentive," he believes. This view aligns with the concerns raised by the hospitality sector regarding the financial burden of the transition.

The expert also questions the quantitative ambition. "The goal of 70 MW of photovoltaic solar energy, with 11.5 MW of storage, remains modest given the growing energy needs and international commitments regarding decarbonization," he observes. He emphasizes that the program does not challenge the dominant position of independent producers operating on fossil fuels.

Thus, while the Time-of-Use and the new RE Scheme mark a technical evolution of the electrical grid, for Sunil Dowarkasing, the program favors "a logic of managing consumption peaks and optimizing the existing network rather than a profound transformation. There is no clear timeline for phasing out fossil fuels, no reform of independent producers' contracts, and no strong national vision."