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- The Ministry of Housing has the authority to grant and revoke licenses to generate, transmit, and distribute electricity. The Ministry of Housing is a ministry of the federal government, and is responsible for overseeing SKELEC and NEVLEC. - The governor general of the Federation sets tariffs, subject to the approval of the National Assembly.352 • Generation, Transmission, and Distribution— SKELEC, a wholly state-owned enterprise, holds the exclusive license to transmit and distribute electricity in Saint Kitts for 25 years.353 The Caribbean Utilities Management Company has a contract to manage SKELEC until 2014. The government has expressed its intention to take over SKELEC’s management once the contract with the Caribbean Utilities Management Company expires. The Federation has made significant progress for Phase 1 of the project, but less so for Phase 2. Slim-hole wells were drilled in Nevis and conservative estimations suggest an estimated potential of upwards of 30 MW.355 In Saint Kitts, geothermal development has not advanced beyond early surface exploration. Results suggest a lower-quality resource that would be expensive to develop.356 Still, conservative estimates of Nevis’s estimated geothermal potential suggest the resource is large enough to cover the Federation’s projected demand of 31 MW in 2023. As such, the NIA is currently working to develop the geothermal resource in Nevis. The NIA has signed the concession agreement and a PPA for Phase 1. The NIA would also need to finalize the lease to authorize access to the exploration lands. Exploratory drilling should begin soon and the NIA expects the plant to come online by the end of 2018.357 The government and the NIA’s next steps for Phase 2 include carrying out feasibility studies, finding a project developer, and completing the project agreements. 14.3 Status of Geothermal Development 352. World Bank, “Project Appraisal Document... in Support of the First Phase of the Eastern Caribbean Energy Regulatory Authority Program,” Report No: 51576-LAC, May 16, 2011, accessed November 17, 2014, http://www-wds.worldbank. org/external/default/WDSContentServer/WDSP/IB/2011/05/30/000356161_20110530015337/Rendered/ PDF/515760PAD0P1010e0only0900BOX358362B.pdf. 353. The Government of Saint Kitts and Nevis, “Saint Cristopher (Electricity Supply) Bill, 2011,” accessed November 14, 2014, https://groups. google.com/forum/#!topic/sknfus/YceWobynQrk. 354. Government of Saint Kitts and Nevis, “SKELEC Company Website,” accessed October 31, 2014, http://www.skelec.kn/component/ content/category/87-electricity-documents.html. 355. Nevis Island Administration, “NIA, NEVLEC and NREI Sign Geothermal Power Purchase Agreement,” November 26, 2015, accessed December 4, 2015, http://www.nia.gov.kn/index.php/news-4/news-articles-3/2538-nia-nevlec-and-nrei-sign-geothermal-power- purchase-agreement. 356. Gerald Huttrer, “2010 Country Update for Eastern Caribbean Island Nations,” April 2010. 357. Nevis Island Administration, “NIA, NEVLEC and NREI Sign Geothermal Power Purchase Agreement,” November 26, 2015, accessed December 4, 2015, http://www.nia.gov.kn/index.php/news-4/news-articles-3/2538-nia-nevlec-and-nrei-sign-geothermal-power- purchase-agreement. 150PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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