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Legislative approval for loan to finance power plant

The Nevis Island Assembly has approved a government resolution guaranteeing a US$57-million loan that is being sought by West Indies Power Nevis for the construction of an 8.5 megawatt power plant on the island.

Premier and Finance Minister Joseph W. Parry, who tabled the resolution, said that since the turn of the century, fluctuating oil prices on the world market have created greater interest in alternative and renewable sources of energy that were less dependent and independent of fossil fuel.

“This geothermal project is unprecedented in the eyes of the people of this part of the hemisphere, in the eyes of the people of CARICOM and the Organization of Eastern Caribbean States and specifically for the people of St Kitts and Nevis,” Parry said.

“It will not only impact on government’s revenues, but it will bring down the cost of energy on the island, it should impact on prices in the business sector, and it should serve as an attraction to businesses and certainly in terms of green energy and a green country, it will make Nevis an exceptional place in the world,” he added.

Energy Minister Carlisle Powell said that approval of the resolution would result in millions of dollars in financing for one of the most important projects in the history of Nevis.

“Geothermal development is important for the two islands because it would help insulate them from the high and variable costs of distillate and reduce CO2 emissions.

“St Kitts and Nevis would benefit from large savings in the region of US$159 million from geothermal developments on Nevis and an interconnection to St Kitts. The savings are much higher than the increased cost associated with developing the plant and the interconnection and those were put at around US$100 million,” he said.

Powell told legislators that the realization of the geothermal project will also open up a one billion US dollar industry in the export of electricity to neighbouring countries including Puerto Rico.

financing

West Indies Power has said that the geothermal generated electricity capacity stands at several hundreds of megawatts.

Chief executive officer Kerry McDonald said that in addition to the 8.5 megawatt power plant, the financing will also cover the cost of eight miles of cable to join the power plant from Spring Hill to the main grid.

“In the next month, you will see several things happening: the Engineering and Procurement Construction Contractor will be opening their offices to begin construction of the site; building the well pad; geotechnical work; drilling components will be coming in; and by September, the bulk of the construction crews will arrive to build the power plant,” he said.



Category/ies:St Kitts and Nevis News.
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