Last Updated on November 30, 2023, 4:55 AM AST by Anthony Morris
St Kitts Electricity Company Ltd (SKELEC) amended the power purchase agreement for a solar energy project in the Caribbean. The project will provide St Kitts with 35.7 MW of solar power and 43.6 MWh of battery storage to provide clean, renewable and reliable energy for 25 years. The project is anticipated to be accomplished by 2025.
In 2022, the National Assembly directed a complete and comprehensive review of the project and continued renegotiation of several important parts of the previously concluded optional purchase agreement.
The most important topics were
- reduction of the electricity purchase price;
- the possibility of local private-sector investment in the project
- deadlines for project completion.
The Caribbean Center for Renewable Energy and Energy Efficiency (CCREEE) was engaged as CARICOM Renewable Energy Projects in the region used to review parts of a previously signed power purchase agreement after the project developer waived the need for such a review.
. As the amended PPA is implemented with a reduced fixed electricity purchase price, SKELEC will now
save approximately $200 million over the life of the PPA compared to electricity generated from diesel power generation
NB: no local investment is required before the commercial start-up date, which is planned for 2025, allowing interested private sector companies and individuals looking to invest in monitoring and evaluating a complete and operational solar and battery energy storage before investment.
Upon successful completion, this fully integrated solar power system and lithium-ion battery energy storage (BESS) will provide St Kitts with 30 to 35 per cent of its annual consumer electricity needs using sustainable and renewable solar energy. Emissions of carbon dioxide.
Solar Plus storage replaces 4 million gallons of diesel per year, reducing 43,500 tons of C02 emissions. In addition to energy storage and transferable power, BESS also provides grid balance, rotating reserve and emergency power, which increases grid stability and reliability and ensures higher-quality power for consumers.
The project IS fully funded by $80 million of private capital, including debt financing from CIBC First Caribbean International Bank, which does not require equity from SKELEC or the Government of Saint Kitts and Nevis.
Construction and installation of the solar and BESS projects are expected to create nearly 200 local jobs using approximately $10 million in local products and services. Construction is scheduled to begin in the second quarter of 2024, and SKELEC will deliver solar power in 2025.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
