Search Intensifies for Cheaper Energy

Contact: John Emmanuel

Wednesday, January 31, 2001 – With help from the Washington-based Climate Institute, the Government of St. Lucia is moving to adopt a national energy plan. The Ministry of Planning, which is executing the project, is anxious to get the St. Lucia Electricity Services Ltd. (LUCELEC) to sign on as soon as possible.

The aim of the proposed plan is to tap cheaper and more environment-friendly sources of energy as an alternative to petroleum-based fuels, the dominant source of energy at present. This move comes against the backdrop of the rising cost of petroleum-based fuels and mounting international concern about their impact on climate change, including global warming, to which small island states like St. Lucia are said to be especially vulnerable.

The plan places emphasis, among other things, on more efficient use of existing energy sources, conservation practices, and the development of renewable energy from the sun, geothermal resources, wind, and water which are available in abundance in St. Lucia.

The report on the Government-commissioned review of LUCELEC, which was officially released earlier this month, contains several recommendations for the island’s sole power company to explore cheaper and alternative means of generating electricity.

According to Bishnu Tulsie, Chief Sustainable Development and Environmental Officer in the Ministry of Planning, LUCELEC’s support is critical for the national energy plan to succeed and bring benefits to St. Lucians.

He said, "Following on the energy plan we are working on, we have developed a proposal for a 13.5 megawatt wind farm. Funding is in place for this project and the project is ready to go but LUCELEC has not yet signed a power purchase agreement. According to the law, only LUCELEC can distribute power on the island so that in the absence of a power purchase agreement, the project cannot move forward."

Mr. Tulsie added, "We have been working on this for about five years now and to date we have not received a response. The project is proposing to sell power to LUCELEC at 18 cents EC per kilowatt-hour. At the moment, the company retails to consumers at 55 cents EC so there are really no economic disincentives."

"As far as I know, all the technical issues in terms of connectivity to the grid have been resolved and therefore we are really at a lost as to why the power purchase agreement has not been signed as yet," the project official said.

St. Lucia is also playing an active role in the development of a regional energy plan to benefit member countries of the Organization of East Caribbean States (OECS). OECS energy officials are scheduled to meet at the Glencastle Resort in Gros-Islet from February 5 - 7 to consider the first draft of the energy plan, developed with help from foreign consultants.

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