Home Headlines & Top Stories CDB Approves US$17 Million for Geothermal Energy Development in Nevis

CDB Approves US$17 Million for Geothermal Energy Development in Nevis

Nevis Peak as seen from the sea
The geotermal powerplant can provide 100% of the island’s energy need. Photo: CDB

BARBADOS / NEVIS – The Caribbean Development Bank (CDB) has approved US$17 million in financing for a geothermal energy development project in Nevis, which is aimed at reducing electricity costs, reducing carbon emissions and increasing energy security.

On Friday, December 9, the Bank’s board of directors approved the grant financing for the project which will help the Government of St Kitts and Nevis pursue the drilling of up to two geothermal production wells and one injection well. The project’s goal is to establish a geothermal power plant of capacity of ten megawatts, more than enough to meet all the domestic electricity demand in Nevis.

CDB’s Director of Projects, Mr. Daniel Best said the project could transform the energy landscape in the twin islands of St Kitts and Nevis.

“A 10 MW geothermal power plant on Nevis can generate more than 100% of the domestic demand on Nevis. If successful, the project will go a long way to helping the Federation realise their sustainable energy goals. These include transitioning from fossil fuel-based electricity generation to entirely renewable, while expanding generation and developing an interconnection between the two islands to increase resilience by allowing for the transfer of electrical power between St Kitts and Nevis, thereby not only benefitting the people of Nevis, but the Federation as a whole” 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 that required for domestic use, to possibly support production and export of green energy commodities.

The project scope includes support to the Government and Nevis Electricity Company Ltd (NEVLEC) for project preparation, such as, preliminary surveys, surface exploration and environmental and social impact assessments, which are already ongoing, as well as infrastructure works, engineering, construction services and project management, and drilling services.

Funding for the project is from CDB’s Special Funds Resources (SFR), allocated from funding from the Inter-American Development Bank/Sustainable Energy Facility, the Green Climate Fund and the Government of Italy.

Best highlighted the economic benefits of the project for the people and Government of St Kitts and Nevis, noting that currently 97% of electricity generation in the country is dependent on imported fossil fuel.

“Like most of CDB’s Borrowing Member Countries (BMCs), St Kitts and Nevis is highly dependent on imported petroleum products to power its economy. This makes it vulnerable to external shocks such as those seen in the last six to 12 months due to the impacts of the war in Ukraine. It also consumes a large portion of its foreign exchange earnings. In 2018, fossil fuel imports reached as high as US$43.4mn – approximately four per cent of gross domestic product. This project can help St Kitts and Nevis build a far more secure energy future.”

Source: Caribbean Development Bank https://www.caribank.org/newsroom/news-and-events/cdb-approves-us17-million-geothermal-energy-development-nevis

2 COMMENTS

  1. On Saba and St. Eustatius the Dutch weather organization KNMI placed several sensors to warn, as hoped timely, for tremors, earthquakes or even the beginning of a new volcanic eruption. Unfortunately the people on these two islands within the Kingdom of the Netherlands are considered of lower value by the Dutch government. Is it their color of skin? Anyhow, some of these sensors were broke, and it costed many months before they were replaced. Be assured that this would never have happened if it was in the province of Groningen!
    And the report about the risks of volcanic eruptions on Saba and St. Eustatius was kept secret for decades. The population might be scared, and most important the objects of colonial economic exploitation are much more imporgant to the consecutive Dutch government. Of course, then as now, the puppet governments of ALL six islands jump as high as Den Haag orders.

  2. It sounds like a good idea, until you think again, and use all the information of the web.
    Things can go wrong with boring miles into a volcanic or mountainous area.
    It has caused massive earthquakes in many countries and areas, among others Switzerland, Korea, California.
    But this technology can also trigger volcano eruptions, like the ones in Java, Philippines, Iceland, Yellowstone, etc.
    And a third hazard which has occurred before: drilling on Nevis could trigger a volcanic eruption at other islands, even hundreds of miles away, connected to the same magma reservoir or magma chamber. Investigations have proof that the islands of the Caribbean arc are located on the same mantle plume, and sometimes on the same magma reservoir.
    Of course investigation should be done scientifically, and not purely based on economic parameters.
    On a small island there isn’t much space, and in case of such a disaster, you probably have to run into the sea.

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