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Unlocking Geothermal Power Eastern Caribbean Powerhouse

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Unlocking Geothermal Power Eastern Caribbean Powerhouse ( unlocking-geothermal-power-eastern-caribbean-powerhouse )

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14.4.4 Strategy for engaging key stakeholders We recommend the NIA and the government keep each other, the general public, and other key stakeholders updated on the project’s progress to gain their trust and commitment. In addition to the general public, other key stakeholders that the NIA and the government could engage include other governmental bodies, NEVLEC, SKELEC, and development banks and donors. The NIA has not actively engaged with the public in the past. It did not keep the public informed during the process to reach an agreement with the original project developer, West Indies Power, and there were public concerns regarding the lack of due diligence in the selection process.384 Also, the NIA has not communicated actively with the public during the selection of Nevis International. As a result, the public is concerned about the project despite the fact that the NIA selected Nevis International through a competitive tender process.385 Had the NIA shared information about the process and engaged the public more actively, the public would likely express less concern. However, the NIA has started informing the general public about the project’s progress.386 Going forward, we recommend the NIA continue engaging with the public to gain their support for the project. The easiest way to keep the public engaged is to hold public consultations in which the NIA provides updates on the project’s progress and receives feedback. Public consultations will also allow the public to ask authorities about the process followed to reach project agreements and the expected impact in the electricity tariffs, which will help to gain the public’s trust. In addition to informing the public, we recommend the NIA and the government ensure that NEVLEC and SKELEC are involved and updated on the project’s progress. This is particularly important because NEVLEC and SKELEC will serve as the project’s off-takers. Even though NEVLEC and SKELEC are state-owned utilities, it is important that they are involved in the project developments because the geothermal power plant will affect their planning processes. NEVLEC and SKELEC will also need to make sure that their contracts for purchasing diesel will allow them to transition to geothermal generation once the plant is online. To a large extent, this will require that NEVLEC and SKELEC keep diesel suppliers up to date so that they can adjust imports accordingly. We also recommend the NIA keep other governmental bodies involved and updated on the project’s progress. Specifically, we recommend the NIA actively engage with the Nevis Ministry of Natural Resources, which will probably be the ministry responsible for monitoring the use of geothermal resources when the power plant begins operations. Lastly, the NIA and the government should ensure that development banks are involved and updated on the project’s progress. This is important because they will likely provide funding for the project, which will be key for the project’s success. If the development banks are kept up to date, the funding could be made available more quickly. 384. Andre Huie, “Energy Minister Sees No Role for West Indies Power in Geothermal Development on Nevis,” Caribbean News Now, September 17, 2014, accessed November 14, 2014, http://www.caribbeannewsnow.com/headline-Energy-minister-sees-no-role-for- West-Indies-Power-in-geothermal-development-on-Nevis-22817.html. 385. The Nevis Administration selected Nevis Renewable Energy International through a competitive bidding process where two other firms participated. The names of the other firms that participated in the bidding process have not been disclosed to the public. See sources: Emily Patrick, “NIA in Geothermal Talks with Unregistered Company,” St. Kitts & Nevis Observer, December 6, 2013, accessed November 14, 2014, http://www.thestkittsnevisobserver.com/2013/12/06/geothermal-talk.html; “Successful Bidder Announced to Move Geothermal Development forward on Nevis,” Caribbean News Now, November 22, 2013, accessed November 21, 2014, http://www.caribbeannewsnow.com/topstory-Successful-bidder-announced-to-move-geothermal-development-forward- on-Nevis--18763.html. 386. 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. 162

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