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14.1 Overview of the Electricity Sector in Nevis 14.1.1 The electricity market in Nevis In Nevis, NEVLEC is the sole, vertically integrated provider of electricity services. In 2015, NEVLEC’s total installed capacity was 13.4 MW, which is more than enough to meet peak demand of 10.4 MW.315 Diesel plants accounted for approximately 85 percent of total generation; the remaining 15 percent came from a wind farm.316 In 2013, NEVLEC supplied electricity to 6,893 customers; 53 percent of demand was commercial, 35 percent was domestic, and 11 percent was from governmental offices.317 NEVLEC does not publish comprehensive information on its operating or financial performance. However, publicly available information suggests that NEVLEC performs inefficiently. NEVLEC’s transmission and distribution losses exceed 20 percent in 2015 and tariffs are not at cost-recovery levels.318 The Nevis Electricity Company Ltd. (NEVLEC), a vertically integrated and state-owned electricity utility, has an exclusive license to provide electricity in Nevis. Nevis has coverage of 95 percent. In 2015, NEVLEC owned 13.4 MW of generation capacity and the island had a peak demand of 10.4 MW.312 The Electricity Ordinance of 1998 establishes the structure of the electricity sector in Nevis. There is no independent regulator. The Ministry of Housing, Public Works, Energy, and Public Utilities (“the Ministry of Housing”) is responsible for oversight of public utilities at the national level, which includes overseeing NEVLEC.313 The Ministry of Finance, Sustainable Development, and Human Resource Development (“the Ministry of Finance”) is responsible for developing energy policies that apply to the Federation.314 In 2011, the Government of Saint Kitts and Nevis drafted the Draft National Energy Policy and the Draft National Energy Action Plan. In 2014 these documents were revised with support of the European Union, but they have yet to be approved. 312. National Renewable Energy Laboratory, “Energy Snapshot: The Federation of Saint Christopher and Nevis,” Energy Transition Initiative, Islands (March 2015, DOE/GO-102015-4581), accessed August 5, 2015, http://www.nrel.gov/docs/fy15osti/62706.pdf. 313. Cedric Wilson, “Baseline Study of Energy Policies and Legislation in Selected Caribbean Countries” (2009). 314. Herbert Samuel, “A Review of the Status of the Interconnection of Distributed Renewables to the Grid in CARICOM Countries” (October 2013), accessed November 17, 2014, http://www.credp.org/Data/CREDP-GIZ_Interconnection_Report_Final_ Oct_2013.pdf. 315. National Renewable Energy Laboratory, “Energy Snapshot: The Federation of Saint Christopher and Nevis,” Energy Transition Initiative, Islands (March 2015, DOE/GO-102015-4581), accessed August 5, 2015, http://www.nrel.gov/docs/fy15osti/62706.pdf. 316. Cartwright Farrell (NEVLEC), “Nevis Geothermal Project and Power Take-Off Presentation” (2012). 317. NEVLEC General Manager, email message to Scarlett Santana, November 5, 2014. 318. National Renewable Energy Laboratory, “Energy Snapshot: The Federation of Saint Christopher and Nevis,” Energy Transition Initiative, Islands (March 2015, DOE/GO-102015-4581), accessed August 5, 2015, http://www.nrel.gov/docs/fy15osti/62706.pdf; Cedric Wilson, “Baseline Study of Energy Policies and Legislation in Selected Caribbean Countries” (2009). 143PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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