Caribbean energy regulators urged to use AI and new technology

Caribbean energy regulators are being encouraged to make greater use of technology and innovation as they oversee small, isolated utility networks that carry higher costs and operational risks.

David Morton, chair of the International Confederation of Energy Regulators, made the point during an interview on the OUR Chat podcast at the 20th annual conference of the Organization of Caribbean Utility Regulators in Trelawny.

Morton said the region’s energy systems face structural limits that are not usually seen in larger markets. He pointed to geographic separation, small customer bases and limited backup capacity as factors that make regulation more difficult and expensive.

"It's a very significant challenge, the lack of economies of scale that you have when you have a smaller utility. One of the consequences of that is it is more expensive to run a smaller utility compared to a larger utility that would be operating the same manner," Morton said.

He said regulators must weigh the cost paid by consumers against the financial health of utility providers. In that environment, he argued, technology-led approaches, including artificial intelligence, can help regulators work around limited resources while responding to the realities of the Caribbean utility sector.