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energy policy, according to the Nevis Geothermal Resources Development Ordinance (2008) drafted with the assistance of GSEII (Wilson 2009, p. 100). In St. Kitts, the utility, St. Kitts Electricity Department (SKED), was until 2011 a department of the government (Wilson 2009, p. 95). The St. Kitts Electricity Company (SKELEC) was incorporated as a statutory body of the federal government on August 1st 2011 and will be managed by the Caribbean Utilities Management Company until 2014 (St. Kitts and Nevis Observer, 2011). 3.5.1.1.2 Utilities and Independent Power Producers Both St. Kitts Electricity Company Ltd. (SKELEC) and the Nevis Electricity Company Ltd. (NEVLEC) operate as monopolies. Each has exclusive authority for production, transmission, and distribution on its respective island. Self-generation from wind and PV sources is allowed by the Electricity Ordinance (1998) in Nevis. Independent power producers are allowed on either island by license (Wilson 2009, p. 100). 3.5.2 Electricity Market Both SKELEC and NEVLEC operate as monopolies. Up until August 2011 the former St. Kitts Electricity Department was unique as a government agency; it had no corporate structure, and therefore no financial performance measures, nor was there separate accounting for electricity versus tax revenues to the government. At an operational level, government facilities are not metered, therefore electrical consumption and system losses are unknown (Wilson 2009, pp. 95–96). The NEVLEC is a government- owned subsidiary but has been operating since 2000 as a separate corporate entity. Historically, it has been unable to operate profitably because the electricity tariff was set below cost of production. The NEVLEC does not hedge on its fuel supply, and its fuel surcharges generally have been inadequate to cover costs. The company, however, continually has invested in the expansion and improvement of its generation, transmission, distribution, and administrative facilities (Wilson 2009, pp. 96–98). 3.5.3 Electricity Supply Table 13. St. Kitts Electricity Market Summary Item Value Notes Plants Capacity (MW) 37.4 1 All diesel generators. Expects to develop 10 MW wind, and import 30MW geothermal from Nevis. 30 Wilson, et al. expect growth to 41.2 MW by 2015. 150 Based on estimates by Nexant and Wilson, et al. 123.8 Estimated by Wilson, et al. Peak Demand (MW) Total Electricity Generated (GWh) Total Electrical Sales (GWh) Fuel Efficiency 40% Unit Generation Cost (U.S. $ per kilowatt-hour) Values current for 2008, except unit generation cost (2007). Sources: Wilson 2009; Nexant 2010; efficiency: Lambrides, de Cuba & Rivera 2006; unit generation cost: de Cuba & Rivera-Ramirez 2007, pp. 16–17. Note: Market capacity does not include contributions from distributed generation. 0.17 64PDF Image | Energy Policy and Analysis Caribbean
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