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14.2.1 The electricity market in Saint Kitts In Saint Kitts, SKELEC is the sole, vertically integrated provider of electricity services. SKELEC’s total installed capacity was 43 MW in 2015, which is more than enough to meet peak demand of 24 MW.337 In 2013, diesel plants accounted for all of Saint Kitts’ installed capacity.338 SKELEC serves 16,000 residential customers and 1,800 commercial customers. In 2012, consumers on Saint Kitts purchased 123GWh of electricity.339 SKELEC does not publish information on its operating or financial performance. However, publicly available information suggests that SKELEC performs inefficiently. Transmission and distribution losses were 17 percent in 2015.340 Residents complain of frequent blackouts341 and SKELEC’s system losses are estimated at 17 percent.342 The World Bank’s Enterprise Survey shows that firms experience an average of 4.2 electrical outages per month.343 Because of the lack of publicly available information, SKELEC’s accountability to the public for service quality and financial performance is limited. 14.2.2 Key laws, regulations, and policies governing the sector The electricity sector in Saint Kitts is governed by the ESA. The ESA corporatized the Saint Kitts Electricity Department. It also laid the legal framework to grant SKELEC an exclusive license to transmit, distribute, and supply electricity in Saint Kitts for 25 years. In addition, the government drafted, but has not approved, the Draft Energy Policy and the Draft Energy Action Plan. These documents were created at the federal level and apply to both Saint Kitts and Nevis. The energy sector policies outline the government’s objectives and plan for increasing the supply of electricity from renewable generation and improving the efficiency of the electricity sectors in Saint Kitts and Nevis. Policies in the energy sector The government prepared the Draft Energy Policy and the Draft Energy Action plan for the Federation in 2011. The government plans to update these documents to allow for distributed generation.344 These documents present the government’s vision of more affordable, more reliable, and less-polluting energy sectors in Saint Kitts and Nevis. However, the government has not yet approved the Draft Energy Policy or the Draft Energy Action Plan. The revised version of the Draft Energy Policy has not been made publicly available. However, the 2011 version includes the following objectives:345 • Exploring alternative energy sources, particularly renewable energy, to decrease dependence on imported oil • Interconnecting the electricity grids of Saint Kitts and Nevis, and interconnecting the Federation with other neighboring countries • Improving the efficiency of power production, transmission, and distribution 337. 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. 338. SKELEC, “Request for Proposal: SKELEC’s Renewable Energy Infusion Study” (2013). 339. SKELEC, “Request for Proposal: SKELEC’s Tariff Study” (2013). 340. 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. 341. Jenise Ferlance, “SKELEC Explains Electricity Outages,” SKNVibes.com, September 22, 2012, accessed September 25, 2013, http:// www.sknvibes.com/news/newsdetails.cfm/63604. 342. Government of Saint Kitts and Nevis, “Draft National Energy Policy and Action Plan,” 2010. 343. World Bank, “Enterprise Surveys: St. Kitts and Nevis (2010),” accessed July 21, 2013, http://www.enterprisesurveys.org/Data/ ExploreEconomies/2010/st-kitts-and-nevis#infrastructure. 344. The Government of Saint Kitts and Nevis and the European Union, “11th EDF: National Indicative Programme 2014–2020,” September 2, 2014, accessed December 4, 2015, https://ec.europa.eu/europeaid/sites/devco/files/nip-edf11-st-kitts-navis-2014-2020_en.pdf. 345. Government of Saint Kitts and Nevis, “National Energy Policy: St. Kitts and Nevis,” April 25, 2011, accessed May 20, 2016, http://www. oas.org/en/sedi/dsd/Energy/Doc/NationalEnergyPolicyStKittsandNevis.pdf. 147PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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