The Caribbean Development Bank (CDB) approved US$17 million for a Nevis geothermal energy project to reduce electricity costs, carbon emissions, and energy security.
Friday, December 9, the Bank’s board of directors approved grant financing for the project, which will help St Kitts and Nevis drill two geothermal production wells and one injection well. The project aims to build a 10-megawatt geothermal power plant, enough to meet Nevis’s electricity needs.
Daniel Best, CDB’s Director of Projects, said the project could transform St Kitts and Nevis’ energy landscape.
A 10 MW geothermal plant on Nevis can meet all domestic demand. If successful, the project will help the Federation’s sustainable energy goals. These include transitioning from fossil fuel-based electricity generation to renewable, expanding generation, and developing an interconnection between the two islands to increase resilience by allowing the transfer of electrical power between St Kitts and Nevis, said Best.
If the project achieves its initial goals, it will lay the groundwork for more ambitious goals such as expanding the Federation’s geothermal energy generation beyond domestic use to support production and export of green energy commodities.
The project includes preliminary surveys, surface exploration, environmental and social impact assessments, infrastructure works, engineering, construction services, project management, and drilling services for the government and NEVLEC.
The project is funded by the Inter-American Development Bank/Sustainable Energy Facility, the Green Climate Fund, and the Italian government.
Best noted the economic benefits of the project for St Kitts and Nevis, where 97% of electricity is generated using imported fossil fuel.
St Kitts and Nevis relies heavily on imported oil to power its economy, like most BMCs. This makes it vulnerable to external shocks like those from the Ukraine war in the last six to 12 months. It also spends a lot of foreign currency. 2018 fossil fuel imports totaled $43.4mn, or 4% of GDP. This project can help St. Kitts and Nevis secure its energy future.
