St. Kitts and Nevis Sustainable Energy Plan

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St. Kitts and Nevis Sustainable Energy Plan

• Initial Stakeholders Meeting
• June 13, 2006

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St. Kitts and Nevis A Clean Energy Nation

• The Federation Government has expressed its
  commitment to increasing the sustainability of
  the energy sector.
• Sustainability may be achieved through the
  diversification of electricity generation,
  increased use of renewable natural resources,
  increased energy efficiency and conservation, and
  improved transportation systems.

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Who Is GSEII?

• Global Sustainable Energy Islands Initiative
• Formed as an informal partnership in 2001 in
  response to St. Lucias commitment to become a
  sustainable energy demonstration country

• Partners
• OAS
• ESG
• The Climate Institute
• UNIDO
• UNF
• Partner countries

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What is the history of SEP development in the
Eastern Caribbean?

• St. Lucia Prime Minister Kenny Anthony made first
  formal commitment at the Hague in 2000
• St. Lucia SEP developed via a consultative
  process
• St. Lucia SEP adopted by Cabinet in 2005
• Dominica and Grenada SEPs prepared in 2003
• Adopted as operational plans by Public Works
  (Energy) Ministries
• SEP implementation in each of three countries

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Why Should St. Kitts and Nevis Care about the
Energy Sector?

• High price of electricity Caused by
• total dependence on imported petroleum for
  electricity generationhigh price of petroleum
  (US70/barrel)
• Inefficiency of small diesel gen-sets
• High maintenance requirements/poor reliability of
  small diesel gen-sets results in electricity
  outages
• Negative Environmental impacts associated with
  diesel powered generation

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Goals for a Sustainable Energy Plan

• Increased economic development
• Reduce fossil fuel imports
• Increase development and use of domestic natural
  resources
• Increase local employment and energy sector
  opportunities
• Lower energy costs
• Attract technology transfer/foreign investment
• Improved environmental protection
• Local environment (improved tourism appeal)
• Global environment (mitigate climate change
  emissions)

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Defining a Course of Action

• The Government of St. Kitts and Nevis, in
  collaboration with GSEII may prepare the way for
  Clean Energy Development through the development
  of a Sustainable Energy Plan
• Articulate national goals and priorities for the
  energy sector
• Establish specific energy sector targets
• Renewable energy utilization
• Energy efficiency/conservation
• Articulate actions required to achieve the stated
  goals

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Elements of a SEP
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Outline Current Energy Conditions

• A. Legal Structure - Electricity
• State run utilities control generation,
  transmission and distribution
• St. Kitts Electricity Department
• NEVLEC
• Limited or no opportunities for private power
  generation
• Regulated pricing (Current Prices?)
• Subsidies required to maintain affordable
  electricity? (Level of subsidies?)

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I. Outline Current Energy Conditions, Cont.

• B. Electricity Generation portfolio
• Installed capacity
• Demand characteristics
• Key consumers (tourism, medical school, light
  industry, government, etc.)
• Projections for expansion

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Summary of Generation Characteristics (July 2005)
  St. Kitts Nevis Unit
Parameter St. Kitts Electricity Department Nevis Electricity Company (NEVLEC)  
Diesel units 7 7
Installed capacity 33.5 13.7 MW
Electric efficiency 40 35
Average load factor 0.73 0.74
Fuel type Gasoil (diesel fuel) Diesel fuel 2
Fuel cost 0.42 0.49 US/L
Electricity price 0.169 0.19 US/kWh
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Projections for Demand Growth St. Kitts
1 Source Generation Expansion Plan
(2005-2015), St. Kitts Electricity Department
(2005)
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Projections for Demand Growth - Nevis
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I. Outline Current Energy Conditions, Cont.

• Transportation Sector
• Government purchase and sale of gasoline
• Cost of gasoline at the pump?
• Subsidies to maintain affordable gas prices?
• Transportation infrastructure plan?
• Average age of vehicle fleet?
• Organization of public transportation?

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II. Establish SEP Energy Sector Targets

• A. Electricity Sector
• Demand reductions (DSM EE)
• 2011 Reduce demand by X X MW installed X GWh
  generated
• 2016 Reduce demand by X X MW installed X GWh
  generated
• Renewable Energy Installations
• 2011 X MW (X of projected demand)
• 2016 X MW (X of projected demand)
• GHG Emissions Reductions X reduction in diesel
  consumption/X reduction in GHG (TOC)

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II. Establish SEP Energy Sector Targets, Cont.

• B. Transportation Sector
• Improve mileage efficiency of vehicle fleet by X
• Improve/increase use of public sector
  transportation
• Produce locally, for transportation use, X
  gallons of ethanol
• Import hybrid vehicles, E85 vehicles and other
  alternative fueled vehicles as appropriate

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III. Outline Potential Mix of Sustainable Energy
Technologies

• Grid-tied renewable energy alternatives
• Household and off-grid renewable energy
  alternatives
• Energy efficiency measures
• Transportation sector measures

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Likely Near-Term Grid-tied Renewable Energy
Alternatives

• Geothermal power generation on Nevis
• St. Kitts and Nevis participates in the GEF/UNEP
  sponsored Geo-Caraïbes Project
• Pre-Feasibility study (geology, geochemistry and
  prelim geophysics) suggests 10MW potential in
  the Bath/Farms Estate area

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Likely Near-Term Grid-tied Renewable Energy
Alternatives

• Biomass to Energy on St. Kitts
• Utilize sugar cane and municipal solid waste to
  produced ethanol and electricity
• Need to assess optimal utilization biomass
• Sufficient feedstock for commercial production?
• Economical to revitalize sugarcane crop?
• Long term reliability of feedstocks?
• Potential for ethanol exports?
• GSEII embarking on commercial-style feasibility
  study to determine biomass to energy potential

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Likely Near-Term Grid-tied Renewable Energy
Alternatives

• Wind, OTEC and others
• Need site specific resource assessments to
  determine potential
• Wind broad analysis
• Average wind speed 6.18 m/s (10 m height) (St.
  Kitts)
• Average wind speed 7.89 m/s (10 m height)
  (Nevis)

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Likely Near-Term Distributed Renewable Energy
Alternatives

• The most obvious opportunity for households,
  hotels, other buildings is solar hot water
  heaters
• Key opportunity to reduce energy consumption
• Solar PV and distributed wind show promise for
  buildings
• Possible interconnection to the grid (net
  metering)

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Likely Energy Efficiency Alternatives

• Improvements to electric utility system (example
  Dominica)
• Commercial and Household energy conservation/DSM
• Commercial and Household use of energy efficient
  appliances and lighting
• Implement EE standards and regulations
• Solar H20

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Likely Transportation Sector Alternatives

• Increase mileage efficiency
• Incorporate hybrid vehicles
• Use of ethanol as a 10 blend (standard vehicles)
  or high percentage (E85) blend in flex fuel
  vehicles
• Improvements in public transport system
• Increase alternatives for pedestrian and bicycle
  traffic (bike lanes)

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IV. Potential Actions to Achieve Targets

• Promotion of Grid-Tied Renewables
• Liberalize electric utilities (including public
  private partnerships)
• Mandate Renewable Energy Technology Use
• Renewable energy portfolio standard (require
  10-30 of installed capacity from renewables)
• Attract private power developers for alterative
  energy solutions
• Offer long-term PPAs
• Offer tax and other fiscal incentives

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IV. Potential Actions to Achieve Targets

• Promotion of Grid-Tied Renewables, Cont.
• Make firm commitments to key project
  opportunities (geothermal, biomass, etc.)
• Deliver on government responsibilities related to
  project developments (ie. Development of the
  sugarcane/feedstock supply, commit to long term
  PPAs, execute permits and licensing, etc.)
• Increase human capacity/awareness
• Establish utility training programs
• Launch national education/awareness program
• Seek international financing/resources for
  renewable energy feasibility and development
  (GEF, CDM, EU, World Bank)

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IV. Potential Actions to Achieve Targets

• Promotion of Distributed Renewables
• National Solar Water Heating Initiative
• National awareness initiative
• Tax relief for solar water heating system
  purchases
• Solar hot water heating loan program
• Encourage solar PV system deployment
• Attract solar manufacturer/assembly plant
  investment

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IV. Potential Actions to Achieve Targets

• Promotion of Energy Efficiency Improvements
• Compact fluorescent lightbulb program (Cuba or
  GSEII/Climate Care)
• Public buildings energy efficiency assessments
  and retrofits
• Initiate comprehensive capacity building
  initiative
• Catalyze the establishment of ESCOs
• Launch national DSM program
• Establish appliance and building norms and
  standards
• Create/promote hotel Green Globe Program

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IV. Potential Actions to Achieve Targets

• Cross-Cutting Electricity Sector Issues
• Electricity system improvements
• Promote Climate Change/CDM strategy

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IV. Potential Actions to Achieve Targets

• Transportation Sector Reforms
• Establish alternative fuel vehicle demo fleet
• Impose regulations for higher efficiency among
  vehicles
• Improvements in public transportation systems
• Modifications to roads/traffic patterns

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V. Next Steps in the Development of a SEP

• Complete assessment of current conditions by 23
  June
• Stakeholder dialogue and individual consultations
  on priorities by 30 June
• Draft 1 of SEP by GSEII distributed to
  Stakeholders for review by 15 July
• Revisions thru to Final Draft by 1 Sept
• Submission to Cabinet for Consideration by 15
  Sept

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Contact Information

• Mark Lambrides
• mlambrides_at_oas.org 1-202-458-6261
• Kevin de Cuba
• kdecuba_at_oas.org 1-202-458-
• Maria Rivera
• maria_at_energyandssecurity.com 1-703-

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Thank You!