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The federal government of St Kitts & Nevis on Monday signed a letter of intent with the Nevis Island Administration (NIA), to purchase electricity generated by geothermal energy from Nevis when the geothermal power project currently being implemented there is completed.
The parties have also come to an agreement in principle for the federal government to support the NIA in seeking financing from multilateral lenders for the implementation of a submarine transmission cable from Nevis to St Kitts.
The Organisation of American States (OAS) is working with the parties to seek financing for the project and has committed to assisting with approaches to multilateral lenders such as the World Bank.
The geothermal project, being developed by West Indies Power (Nevis) Ltd, proposes to design and construct a 35 MW geothermal power plant on Nevis, with completion now scheduled for 2010.
The NIA and West Indies Power commenced negotiations on a power purchase agreement in November 2008, to determine the terms of the Nevis power company’s purchase of geothermal electricity from West Indies Power.
In announcing Monday’s agreements, St Kitts & Nevis’ utilities minister Earl Asim Martin reiterated the government’s vision for the development of renewable energy sources towards the goal of achieving energy independence for the people of the federation.
Successful completion of the proposed geothermal power plant and the submarine transmission link will make St Kitts & Nevis (population 40,000) one of the least fossil-fuel dependent countries in the world.
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