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potential for sugarcane biomass to ethanol or electricity on St. Kitts and Nevis in 2007. They found ethanol production to be economically unfeasible, because the nation would have to process more sugar than it could consume, and high costs prohibit exporting the excess. Conversely, sugarcane biomass to electricity was found to be economically feasible, with production costs in St. Kitts of U.S. $0.05 to U.S. $0.17 per kilowatt-hour, a range lower than the estimated current cost of production. The GSEII report projected that a 10-MW biomass plant could be used for base-load capacity during 4 months of the year (de Cuba & Rivera-Ramirez 2007). This led to the incorporation of St. Kitts and Nevis in the US-Brazil Biofuels Initiative, where with assistance of the Fundacao Getulio Vargas (FGV) detailed suitability maps were prepared for biofuels crops in St. Kitts and Nevis (April, 2008). By mid 2008 due to land use competition for the services sector and other sectors, the Government of St. Kitts and Nevis decided not to pursue biomass-to-energy (de Cuba, 2011). In the meanwhile the solid waste disposal is becoming a critical challenge to St. Kitts and Nevis where the existing landfills on each respective islands have reached their maximum capacity and where siting of a new landfill is complicated and necesitates a complete review and adjustment of the waste management in the Federation (de Cuba 2011). 3.5.9 Interconnections West Indies Power is planning a subsea cable interconnection to distribute geothermal power from Nevis to St. Kitts. This connection presumably would serve several large resorts on St. Kitts, and is planned to use three-mile long high-voltage alternating-current (HV-AC) technology (Nexant 2010, p. 8.45). Scotiabank has arranged financing for this project as well, pending the completion of power purchase agreements with St. Kitts (West Indies Power 2010). Furthermore, in November 2011 the ECPA Caribbean Initiative secured the assistance of a specialized international firm, KEMA to perform a prefeasibility study of the electrical interconnection potential between the Federation of St. Kitts and Nevis and Puerto Rico for the potential export of geothermal power (ECPA Caribbean Initiative, 2011). 3.5.10 Energy Policy Framework On St. Kitts and Nevis, the power generation sector is the largest consumer of imported energy, followed by the transportation sector. As a two-island state, there are two independent operating utilities, the St. Kitts Electricity Company (SKELEC) and the Nevis Electricity Company (NEVLEC). The installed capacity at SKELEC amounts to 37.5 MW using eight diesel generators. NEVLEC produces and distributes electricity on Nevis with diesel-fueled generation units equaling an installed capacity of 13.4 MW. These plants work independently of each other and are not interconnected. The country primarily is dependent on fossil fuels for electricity generation and transportation which ensures its vulnerability to volatile energy prices. The sector has experienced some setbacks in recent times, including the loss of generators (SKELEC) due to fire, and it has been challenging for Nevis to meet peak demand (Government of St. Kitts and Nevis 2010). The systems on both islands are quite susceptible to damaging weather events such as hurricanes. In 2008, system capacity on Nevis fell to 43% due to the impact of Hurricane Omar (Singh 2009, p. 98). Regarding renewable energy, there are several sources that can be exploited by the country, including solar, wind, geothermal, and biomass. Several renewable energy feasibility studies have been conducted and wind and geothermal seem to have more medium- to long-term potential (Library of Congress November 1987, p. 20). The government energy policy still is incomplete; however, the nation recently 69PDF Image | Energy Policy and Analysis Caribbean
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