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GSEII Case Study: Geothermal Energy in the Caribbean GSEII also supported three legal and policy initiatives. First, OAS helped Power Agreement in May 2008 between West Indies Power and NEVLEC for 10 MW of geothermal power, more than Nevis currently consumes. Previously, Nevis lacked any laws addressing renewable energy. Second, OAS legal experts helped to draft the Nevis Geothermal Resources and Development Ordinance, which outlines guidelines and regulations for new geothermal development; the bill passed in July 2008. Third, OAS negotiated a contract between the government of Nevis and West Indies Power to provide tax and other incentives to developers in April 2009. The European Investment Bank has granted finance to this project; West Indies Power is identifying investors and will begin drilling in 2010. This major GSEII achievement allowed the launch of the first Eastern Caribbean Geothermal Conference held in Nevis. Dominica In Dominica, stakeholders were particularly interested in supplying the neighboring islands of Guadeloupe and Martinique with Dominica’s potential geothermal energy. GSEII experts researched the legal and technical feasibility of submarine cables interconnecting the grids of these islands, and multiple private sector companies approached the government with proposals for development. As of 2009, a three year, 5 million euro geothermal resource development program is underway to generate 100 MW of electricity, 80% of which will supply Guadeloupe and Martinique. Saint Lucia GSEII efforts began in 2004 with the Organization of American States conducting feasibility studies of the geothermal resources, and the Massachusetts Institute of Technology (M.I.T.) followed up with geophysical surface studies. OAS drafted a Geothermal Resources Development Bill for the Saint Lucian government, which laid out a framework for all phases of geothermal experts draft a Purchase Representatives of OAS and the West Indies Power Company examine a capped exploratory well on Nevis. (Photo: OAS) Introduction The volcanic island arc stretching from the Virgin Islands in the north to Grenada in the south has great potential to generate clean geothermal energy. By harnessing the energy from heat that emanates from within the Earth’s radioactive core, geothermal power plants use steam to generate electrical power. The Global Sustainable Energy Islands Initiative (GSEII) collaborates with regional governments to catalyze the development of geothermal energy. In 2004, the Organization of American States (OAS) launched the Eastern Caribbean Geothermal Development Project (Geo-Caraïbes). Preliminary investigations revealed accessible geothermal resources in Saint Lucia, Dominica, and Saint Kitts and Nevis, and the project developed legal framework, strengthened financial and human resource capacity, and pursued involvement of stakeholders. Implementing this project benefits both the energy security and economic development throughout the Caribbean, as geothermal power has a zero-emission factor for CO2. Saint Kitts and Nevis By attracting financing for geothermal feasibility studies and exploratory drilling, OAS was able to catalyze progress in all three countries. NEVLEC, Nevis’ primary energy distributor, previously had little incentive to explore renewable energy alternatives because the utility company could pass on high diesel costs to consumers through a fuel surcharge. However, the Global Environment Fund and OAS conducted a feasibility study, which spurred exploratory drilling between the Nevis Island Administration and West Indies Power company. Drilling in 2008 confirmed the existence of significant and exploitable geothermal reserves.PDF Image | GSEII Case Study: Geothermal Energy in the Caribbean
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