St. Kitts and Nevis Sustainable Energy Plan

St. Kitts and Nevis Sustainable Energy PlanInitial Stakeholders Meeting

June 13, 2006

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.

Who Is GSEII?

Global Sustainable Energy Islands Initiative

Formed as an informal partnership in 2001 – in response to St. Lucia’s commitment to become a sustainable energy demonstration country

Partners: OAS ESG The Climate

Institute UNIDO UNF Partner countries

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

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

High price of electricity – Caused by: total dependence on imported petroleum for

electricity generation…high price of petroleum (US$70+/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

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)

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

Elements of a SEP

I. 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?)

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

St. Kitts Nevis Unit

ParameterSt. 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

Summary of Generation Characteristics (July 2005)

Fuel Extraction and Treatment

Imported Primary Energy

Conversion Technology

Diesel Gen Sets (33.5MWe)

Conversion Technology

Diesel Gen Sets(13.7MWe)

Electricity distribution

Domestic Commerc./Indust. General / loss. Street light/loss.CommercialResidential

Satisfaction of Human Needs

Imported Primary Energy

Electricity distribution

Energy Sector St. Kitts and Nevis

St. K

itts E

lectr

icity

Depart

ment

509 TJpGas Oil

1082 TJpDiesel Oil

121.6 GWh 47.7 GWh

39.8 GWh 55.0 GWh 26.8 GWh 12.2 GWh 24.4 GWh 11.1 GWh

Projections for Demand Growth – St. Kitts

0.0

10.0

20.0

30.0

40.0

50.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

An

nu

al p

eak

dem

and

(M

W)

Base Min Max

[1] Source: Generation Expansion Plan (2005-2015), St. Kitts Electricity Department (2005)

Projections for Demand Growth - Nevis

0

5000

10000

15000

20000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

year

An

nu

al P

eak

Dem

and

(kW

)

Base Min (-20%) Max (+20%)

I. Outline Current Energy Conditions, Cont.

Transportation Sector Government purchase and sale of

gasolineCost of gasoline at the pump?Subsidies to maintain affordable gas

prices?Transportation infrastructure plan?Average age of vehicle fleet?Organization of public transportation?

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)

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

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

Likely Near-Term Grid-tied Renewable Energy Alternatives

Geothermal power generation on NevisSt. 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


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


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)

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)

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

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)

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

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…)


Promotion of Distributed RenewablesNational 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 deploymentAttract solar manufacturer/assembly

plant investment


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”


Cross-Cutting Electricity Sector IssuesElectricity system improvementsPromote Climate Change/CDM

strategy


Transportation Sector ReformsEstablish alternative fuel vehicle demo

fleetImpose regulations for higher

efficiency among vehiclesImprovements in public transportation

systemsModifications to roads/traffic patterns

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

Contact Information

Mark Lambrides [email protected] +1-202-458-6261

Kevin de [email protected] +1-202-458-

Maria [email protected] +1-703-

Thank You!

Documents

St. Kitts and Nevis Sustainable Energy Plan