MAKING EVERY EFFORT TO LOOK INTO THE PRESENT

The importance of geothermal energy to the Eastern Caribbean’s energy future came into sharp focus last week. 

In a March 22nd press release, West Indies Power, the private developer of the Eastern Caribbean’s first geothermal power project (being implemented on the tiny island of Nevis) announced that Scotiabank had signed on to finance the project, to the tune of US$30 million.

It was a remarkable announcement. A commercial bank? Financing a large renewable energy project? In the Caribbean?

What the seemingly amazing news proves is that renewable energy in the Caribbean is bankable on a commercial basis – and that geothermal is the game-changer in the Eastern Caribbean region. So essentially, St Kitts & Nevis will soon join the ranks of the few truly green, low-carbon countries in the world.

Congratulations to Nevis are in order – and, from the regional perspective, a few comments.

The first is that, in terms of geothermal energy potential, there’s nothing special about Nevis; the Lesser Antilles chain of volcanic islands has long been considered to have large geothermal energy resources. The US-based Geothermal Energy Association (GEA) in 1999 reported that there were 39 countries in the world that “could be 100% geothermal powered”. The eight Caribbean countries on that list are (in alphabetical order) Dominica, Grenada, Guadeloupe, Martinique, Montserrat, St Kitts & Nevis, St Lucia and St Vincent & the Grenadines.

Gerald W Huttrer, a respected authority on geothermal energy (and one of the references for the GEA report) has ranked the islands in order of their geothermal development potential. Nevis is at number 5 – below St Vincent & the Grenadines (which is number 4) and St Lucia (number 2). Guadeloupe, ranked at number 1, already has 15 MW of geothermal power in operation, with plans to increase this to 47 MW by 2020.

But Nevis has come from behind to win the Eastern Caribbean countries race. The Nevis Island Administration first signed a memorandum of understanding with their developer in 2007 and exploratory drilling started in January 2008. By October of that year the geothermal resource had been proven and today – three years after the process started – construction of a 10 MW geothermal power plant on Nevis is about to commence.

The Dominica government has been aggressively pursuing its geothermal agenda, with two exploratory drilling projects in progress, one of which, in November 2009, delivered proof of large geothermal resources. But, despite having signed agreements at the same time as (or even before) Nevis, St Lucia and St Vincent & The Grenadines are still in the locker room; exploratory drilling has not even started on either island.

So here’s the summary of the situation. After decades of preliminary study and some recent specific explorations, it is now fairly clear that the region is sitting on potentially large geothermal resources. If proven, they will be more than sufficient to supply present and foreseeable demand for electricity on the respective islands. Add to this the fact that most of the fuel these islands import is used by vehicles, and the full implications of the story become clear.

Geothermal energy provides the prospect that, if we move to transition our light-duty vehicle fleets to hybrid and electric vehicles, we can replace almost all of our total fossil fuel imports with a green, indigenous energy source. This will eventually happen on St Kitts & Nevis.

The transport sector transition is already happening elsewhere according to Matthew Savage, a director of UK-based Oxford Consulting Partners, an energy, climate change and sustainability firm. At an energy policy workshop in St Lucia last week, Mr Savage opined that, by 2020, he would not be able to buy a gasoline or diesel-powered car from a mainstream car dealer in the UK. By then, he thinks, such cars will be manufactured on an ever-dwindling scale, replaced by hybrid and pure-electric vehicles.

This scenario represents a business opportunity that Caribbean oil companies should now be seriously examining. Their customers in St Kitts & Nevis will soon have the option to buy cars that fill up with electricity, even as some of our governments carry on with business-as-usual while continuing to “make every effort” to “look into” renewables.

IT'S QUICK! IT'S NIMBLE! IT'S... NEVIS!

In July 2009, the Nevis Island Administration authorized Canadian developer Windwatt Power Ltd to proceed with plans to develop wind power on Nevis. Barely six months later, the developer is constructing the first phase of a planned 4.4 MW wind farm that will provide green electricity to the island.

The work now in progress, to erect 4 Vergnet GEV MP 275 kW collapsible wind turbines (like the ones on Guadeloupe), will install 1.1 MW of wind capacity and is scheduled for completion in June 2010. The developers have plans for an additional 3.3 MW to be installed in phase 2.

This comes hard on the heels of the Nevis geothermal project which, in its first phase, is intended to construct an 11 MW geothermal power plant on Nevis.

So all told, in the past two years Nevis has approved and commenced implementation of two large green energy projects with a total (phase 1) installed capacity of about 12 MW - which is 2 MW more than the current peak demand on the island!

On the face of it, this is remarkable progress – and it far exceeds what the other Eastern Caribbean countries have achieved in renewable energy (which, in most cases, has been nothing).

Nevis’ managers are justly proud of themselves. During a field visit in February to the Windwatt site at Maddens Estate, Carlisle Powell, the junior minister for natural resources and the environment in the Nevis Island Administration, noted that there has been “a tremendous amount of talk from St Lucia, St Vincent, and from St Kitts even, where they are planning an 8 megawatt wind farm but to the best of my knowledge there is none which has actually started. In Nevis we have done more than start – we have the equipment on site, we have laid out the site already, so we are on the way”.

Well said, Mr Minister.