Saint Kitts and Nevis (2012)

Degree of reliance on imported energy: 

<p>
St. Kitts and Nevis is a net energy importer. The country has no indigenous sources of oil, coal, natural gas or hydropower. Secondary liquid fuels including natural gas liquids, gasoline, and jet fuel are imported for local consumption. Oil imports are about 1,000 barrels a day. All of the islands&#39; electricity is generated from imported oil.</p>

Main sources of Energy: 

<p>
Total installed electricity capacity (2010): 48 MW<br />
St. Kitts: 33.9 MW<br />
Nevis: 14.1 MW.<br />
<br />
Total primary energy supply (2006): 50.4 ktoe.</p>

Country: 

Saint Kitts and Nevis

Extent of the network: 

<p>
The island&rsquo;s power systems are currently operated independently and are not interconnected. The St. Kitts Electricity Department (SKED) is based in Basseterre and the Nevis Electricity Company Limited (NEVLEC) is based in Charlestown. The electrification rate is around 95%.</p>

Capacity concerns: 

<p>
Currently all electricity is produced by diesel fuelled generators. The islands are fully dependent on imported fossil fuel for their electricity generation and transportation fuel.<br />
<br />
Since oil prices have increased, retail prices for electricity have doubled from late 2005 to August 2008, affecting industrial, commercial and residential users.<br />
<br />
St. Kitts, in particular, has been suffering from load shedding operations put into place by SKED to repair damaged and ageing generation equipment. These have progressed into full blackouts for some areas.</p>

Potential for Renewable Energy: 

<p>
<b>Bioenergy on St. Kitts</b><br />
The bio-energy project in St. Kitts will use the former sugar-cane lands on the Atlantic side of St. Kitts. A fast-growing bamboo-grass which can be harvested year round will be used as feedstock. It is estimated that 4,000 acres will produce about 120,000 tons of dry biomass per year. The majority of the feedstock will be used for the production of bio-oil for export or local use.&nbsp; The bioenergy project will have an installed capacity of 5 MW.<br />
<br />
As soon as the project proposal is accepted by the federal Government, the sugarcane growing wild will be harvested, pelletized and shipped to Europe. Subsequently the bamboo-grass will be planted and the first harvest may occur after 18 months.<br />
<br />
<b>Wind energy on St. Kitts and Nevis</b><br />
In this project 0.9-1.2 MW wind turbines will be installed next to the Robert Llewellyn Bradshaw International Airport. The project consists of three phases. Phase one involves one wind turbine to be installed at the end of 2008. In phase two the installed capacity is increased to 10 MW in 2009/2010. In phase three the installed capacity is doubled to 20 MW. Initialization and timing of phase three will depend on future electricity supply and demand in St. Kitts, and the possibility of an interconnection with other Caribbean nations.<br />
<br />
The project proposal for a wind turbine park along the Nevis coast is at the NIA for approval. In late summer of 2010, the 1.1 MW wind farm, coordinated by OAS, was finally opened and operational in St. Nevis. The project may be extended to 10 MW in a second phase.<br />
<br />
<b>Geothermal energy on Nevis</b><br />
In July 2008, the parliament of the Nevis Island Administration (NIA) accepted the geothermal bill delineating a regulatory framework for the implementation of geothermal energy on Nevis. The installed capacity of the projected geothermal plant will depend on the interconnection and the geothermal potential but it can be as high as 34 MW as inferred from presently available estimations to service both islands in their electricity demand. In case of an interconnection with another island in the Caribbean region being economically and technically feasible, the production capacity may be further increased. The geothermal plant was expected to be in operation by the end of 2009 but it has not been built yet (January, 2012).<br />
<br />
<b>Solar on St. Kitts and Nevis</b><br />
With almost constant sunshine, the islands are well-placed to exploit solar energy. Government officials, including the Nevisean Minister for Natural Resources and Public Utilities, have called for increased uptake of solar water heating in households and public buildings in an effort to improve efficiency. Solar PV potential is estimated at 16 MW of installed capacity, but bulk power development would not be economic based on current estimates.</p>

Potential for Energy Efficiency: 

<p>
The total dependence on imported fossil fuels for the islands&#39; electricity generation is of concern to many. Government officials have called for demand-side management plans to reduce total energy consumption, and therefore fuel imports. Subsidies for CFL-lighting, as well as measures for improved energy-efficient building regulations, were recently suggested at a joint EU-LAC energy conference in Berlin.</p>

Ownership: 

<p>
The energy sector in the Federation is run by two utilities: the <i><b>Saint Kitts Electricity Department (SKED)</b></i>, the state owned utility on the island of Saint Kitts, and the <i><b>Nevis Electricity Company Ltd. (NEVLEC,</b></i> <a href="http://www.nevlec.com/">http://www.nevlec.com/</a>), the private-state owned utility on the island of Nevis. Both utilities manage the production and distribution of electricity.</p>

Structure / extent of competition: 

<p>
Currently, the SKED is still a department within the Ministry of Public Works, Utilities, Transport and Post of the federal Government. A corporation process, initiated in July 2007, should eventually lead to a fully federal Government owned electricity utility.<br />
The private/state owned NEVLEC is the sole generator and distributor of electricity in Nevis. NEVLEC is a fully-owned subsidiary of the Nevis Island Administration.</p>

Existence of an energy framework and programmes to promote sustainable energy: 

<p>
In response to the complete dependency on imported fuels for energy generation and the high costs and poor reliability that result, the Government of St. Kitts and Nevis has expressed its commitment to identifying and securing access to alternatives to fossil fuel-based energy.<br />
<br />
A first step in this process involves the Government&rsquo;s collaboration with the Global Sustainable Energy Islands Initiative (GSEII), which includes support from the Organization of American States (OAS), the Climate Institute, and the Energy and Security Group, for the preparation of a Sustainable Energy Plan (SEP). This SEP will outline courses of action for a transition to sustainable energy supplies including the use of renewable energy and energy efficiency services.</p>

Current energy debates or legislation: 

<p>
A feasibility study has been conducted as to the possibility of inter-connecting the electricity grids of St. Kitts and |Nevis in an effort to ease pressure on both systems, in the wake of recent blackouts. The study also recommends the creation of new renewable energy projects (REPs) to create sustainable electricity capacity for the projected growth in energy demand.</p>

Major energy studies: 

<p>
St. Kitts and Nevis is involved in several regional projects. The OAS has an important role in three currently-running projects, the Renewable Energy Initiative in the Americas (REIA), the Eastern Caribbean Geothermal Development Project (Geo-Caraibes) and the Global Sustainable Energy Islands Initiative (GSEII).<br />
<br />
<i>Justification and pre-feasibility study of an electrical connector for St Kitts and Nevis</i><br />
http://www.oas.org/dsd/reia/Documents/St.%20Kitts%20-%20RenewableEnergyP...

Role of government: 

<p>
The <i><b>Ministry of Public Works, Housing, Energy and Utilities</b></i> and the <i><b>Ministry of Finance, Sustainable Development and Human Resource Development</b></i> are responsible for development of the island&#39;s natural resources, including renewable energy sources.</p>

Government agencies in sustainable energy: 

<p>
The <b><i>Ministry of Finance, Sustainable Development and Human Resource Development of St. Kitts and Nevis</i></b> is responsible for privatisation of Government assets, including SKED, as well as environmental protection and development.</p>

Energy planning procedures: 

<p>
In the <b><i>National Action Programme for Combating Desertification and Land Degradation</i></b> (2007), the Government proposed energy targets, including reductions in demand and additions to capacity via RE systems. The following targets are to be achieved by the energy sector in the years 2010 and 2015:</p>
<ul>
<li>
Reduce projected electricity demand by 10% in 2010, resulting in a peak demand in 2010 of 40.2 MW, which will require an installed capacity of 48.5 MW.</li>
<li>
Reduce electricity demand by 20% in 2015, resulting in a peak demand in 2015 of 45.7 MW, which will require an installed capacity of 54.0 MW.</li>
<li>
Deliver 4.9 MW, or 10% of installed capacity, via RE technologies in 2010.</li>
<li>
Deliver 10.8 MW, or 20% of installed capacity, via renewable energy technologies in 2015.</li>
<li>
Reductions in electricity demand and increased use of RES will result in a decrease of 483,500 US barrels of gas/diesel oil compared to baseline consumption of 604,200 US barrels in 2015.</li>
</ul>

Energy regulator Date of creation: 

<p>
No dedicated regulatory body exists on the islands. Responsibility for the SKED falls to the federal Ministry of Public Works, Utilities, Transport and Post. NEVLEC is largely self-regulated.</p>

Degree of independence: 

<p>
SKED is a state-owned company, and a ministerial division. NEVLEC sets tariffs for electricity independently of the Nevis Island administration; however, the company is fully-owned by the government.</p>

Regulatory framework for sustainable energy: 

<p>
There are two pieces of legislation in St. Kitts and Nevis that are of particular interest to the energy services sector.&nbsp;<br />
<br />
The Petroleum Ordinance establishes a system to license the importation and storage of petroleum products and to regulate, through a licensing regime, petroleum retail outlets.<br />
<br />
The other very relevant legislation is <i><b>Nevis Geothermal Resources Development Ordinance 2008</b></i>.&nbsp;&nbsp; It provides for reconnaissance, exploration, drilling, production and use of geothermal resources and for their vesting in the Crown, regulating how they will be utilised.</p>

Regulatory roles: 

<p>
SKED and NEVLEC are responsible for effective and reliable electricity services, as well as fair pricing and quality of service. NEVLEC also holds responsibility for the setting of fuel surcharges for the island.</p>

Role of government department in energy regulation: 

<p>
The Ministry of Public Works, Utilities, Transport and Post is involved in energy regulation as the operational overseer of SKED. The Ministry of Natural Resources and the Environment of the NIA is responsible for the formulation of regulations to further the uptake of sustainable energy.</p>

Regulatory barriers: 

<p>
Government institutions lack capacity &ndash; both in terms of information and mechanisms &ndash; for promulgating policy about renewable resources development.</p>

References: 

Nexant, for the World Bank. Caribbean Regional Electricity Generation, Interconnection and Fuels Supply Strategy. Final Report March 2010. Available at: <a href="http://www.caricom.org/jsp/community_organs/energy_programme/electricity... [Accessed 19th September 2013]<br />
<br />
Global Sustainable Energy Islands Initiative (GSEII). Saint Kitts and Nevis. Available at:&nbsp;<a href="http://www.gseii.org/islands/st-kitts-nevis.html">http://www.gseii.org/i... [Accessed 19th September 2013]<br />
<br />
Geothermal Resources Council: Global Geothermal News. St. Kitts and Nevis: Island Blues: A Caribbean Country&rsquo;s Troubled Experiment with Geothermal Power. 6 February 2012. Available at: <a href="http://geothermalresourcescouncil.blogspot.co.uk/2012/02/st-kitts-and-ne... 19th September 2013]<br />
<br />
Ministry of Public Works, Housing, Energy and Utilities. <a href="http://www.gov.kn/mopw">http://www.gov.kn/mopw</a>&nbsp;[Accessed 19th September 2013]<br />
<br />
Ministry of Finance, Sustainable Development and Human Resource Development. <a href="http://www.gov.kn/directory?q=mof">http://www.gov.kn/directory?q=mof</a>... 19th September 2013]<br />
<br />
Nevis Electricity Company Limited. <a href="http://www.nevlec.com/">http://www.nevlec.com/</a>&nbsp;[Accessed 19th September 2013]