Nevis

Current Energy Landscape

Electricity Sector

• Nevis, part of the Federation of St. Kitts and Nevis, has a total installed electricity capacity of 13.4 megawatts (MW) managed by the Nevis Electricity Company Limited (NEVLEC).
• The peak demand is approximately 10.4 MW, and the total electricity generation is around 56.1 gigawatt-hours (GWh) per year.

Energy Sources

• The current energy mix is predominantly fossil fuels, but there is a growing emphasis on renewable energy sources. As of the last available data, renewable energy accounts for about 5.7% of the total energy mix in St. Kitts and Nevis combined.
• Specific to Nevis, there are plans to increase the share of renewable energy, particularly through geothermal, wind, and solar power.

Transmission and Distribution

• Transmission and distribution losses in Nevis are significant, standing at 20.3%.

Planned Developments

Renewable Energy Projects

• There are significant plans to develop large-scale geothermal generation on Nevis, with potential capacities ranging from 200 MW to 600 MW. This could not only meet local demand but also allow for the export of surplus energy to neighboring islands, such as Puerto Rico.
• Additional plans include the development of 10 MW of geothermal energy in the short term, along with 5 MW of solar and 20 MW of wind power.

Other Initiatives

• The government has initiated a low-interest solar loan program for residential consumers to encourage the adoption of solar energy.
• There is also a focus on increasing the use of solar water heating among residents and businesses.

Regulatory Framework and Policies

Renewable Energy Policies

• St. Kitts and Nevis have implemented several policies to support the transition to renewable energy, including a Renewable Energy Feed-in Tariff, Net Metering/Billing, and Interconnection Standards.
• There are also tax credits, tax reductions/exemptions, and public loans/grants available to support renewable energy projects.

Energy Efficiency

• The government has established energy efficiency standards, tax credits, and tax reductions/exemptions to promote energy efficiency. Additionally, there are public demonstration projects and restrictions on incandescent bulbs, along with appliance labeling standards.

Economic and Technical Feasibility

Economic Considerations

• The economics of the geothermal project, for example, are favorable when oil prices are above $100 per barrel. However, additional support is needed at lower oil prices to make the project viable.

Technical Feasibility

• The interconnection of Nevis with Puerto Rico for energy export is technically feasible, given the proximity and existing infrastructure possibilities.

Challenges and Opportunities

Challenges

• Jurisdictional issues between Nevis and other potential export markets could pose significant obstacles to large-scale energy export projects.
• High transmission and distribution losses need to be addressed to improve the efficiency of the energy system.

Opportunities

• The potential for large-scale geothermal energy production offers a significant opportunity for Nevis to transition to a low-carbon economy and reduce its dependence on fossil fuels.
• The development of renewable energy projects can also create economic benefits through job creation and reduced fuel costs in the long term.