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February 27th, 2003

LUCELEC EXPLAINS ITS RENEWABLE ENERGY EFFORTS

The island's lone electricity company (LUCELEC) is refuting allegations that it has done little to support the move to introduce renewable, alternative or green energy to St. Lucia. The company states that for years it has, been exploring the introduction of various forms of alternative energy, including supporting and undertaking its own research, as well as entertaining proposals from foreign interests. These efforts have not been successful to date as, according to Lucelec, proposals for alternative energy, have generally fallen short of the company's clear obligation to supply the nation with safe, reliable and affordable electrical power.

Speaking on the issue, Planning Manager, Francis Daniel stated that "Lucelec has over the years, been involved in reviewing alternative forms of energy generation including, geothermal energy, energy from household waste (gypsum plant) and wind energy, all of which utilise renewable energy resources".

Daniel confirmed that Lucelec has been involved in the Government's exploration efforts for geothermal energy in the Sulphur Springs area since the mid nineteen seventies. He further stated that the Government along with French interests plans to undertake further geophysical and geo-chemical investigations, including the sinking of shallow test wells. LUCELEC has been invited to become a partner in this initiative, but has been reluctant because of the high risks.

Lucelec also confirmed that in 1999, it had received a proposal from a foreign investor for Lucelec to purchase electricity from a Gypsum Plant planned for the Choiseul area but later changed to Vieux Fort. It noted however, that there were several drawbacks to the proposal. The need for 20 metric tons of solid waste daily to keep the plant operational, the selling price of the electricity (almost twice what it costs Lucelec to produce), as well as the absence of technical information addressing issues such as specific plant location, method of fuel delivery, method of grid inter-connection etc, made it difficult for Lucelec to commit to a power purchase agreement and thus such a venture.

Lucelec further indicated that it had been approached in 1998 with a power purchase agreement by a foreign investor to purchase energy generated from Wind Turbines, and had contracted an independent expert to review the proposal. The proposal was described by the consulting expert as inadequate, lacking sound engineering principles and impossible to implement at the location proposed, and noted that there had been inappropriate monitoring of the wind resource. Further, stated the consultants, the site indicated by the developers was certainly not among the 10 most preferred sites in St. Lucia for wind power development.

Daniel says that Lucelec sees wind power as the most likely form of renewable energy for the island at this time. Consequently, Lucelec is undertaking a wind power study as well as developing a pilot project, as the initial step to a major renewable energy initiative. "Ultimately, we see the long term development being undertaken by an Independent Power Provider (IPP) either in partnership with Lucelec or on its own with data supplied by Lucelec"

Alternative Energy in St. Lucia- Lucelec's View
In the last decade there has been increasing global concern over the depletion of the ozone layer and the resulting climatic conditions. At the local level, the various policies of government regarding sustainable energy plans, as well as the commitment of Lucelec to some of these initiatives, have been significant in attempting to promote renewable energy projects and thus the reduction of greenhouse gas emissions. Lucelec has been for some time now looking at developments in renewable energy technology and its potential impact on the company in particular and the country in general. The following is a synopsis of the exploration of renewable and alternative energy in St. Lucia, and the initiatives taken by Lucelec in that regard.

Geothermal Energy
The first survey was carried out in 1951 with the support of the United Nations. It was focused on the Sulphur Springs area which is the main zone of surface manifestations with abundant hot springs, fumaroles, mud pools and steaming grounds. The survey indicated that there were steam dominated reservoirs at depth. In 1964 the first comprehensive geological map of the area was produced.

Seven exploratory holes were drilled in the Qualibou depression in Soufriere between 1974 and 1976. The primary finding of the exploratory drillings was the recognition of a steam-dominated geothermal reservoir below the Sulphur Springs at 200 to 300 meters depth, producing superheated steam with low pH and a high rate of non-condensable gases. The initial estimated figure on the geothermal potential was lowered as the it was determined that the steam had a high saline content and for safety reasons any effluent should be re-injected. A second phase of exploration survey was carried out in 1982 and 1983, the aim of which was to improve the knowledge of the background of the Qualibou depression and the Sulphur Springs geothermal system.

A feasibility study started in 1986 led to two deep exploratory boreholes being drilled in 1987-1988. In 1990-1991, in consultation with Lucelec, a New Zealand consultant (GENZEL), performed incomplete tests on the wells. The most recent evaluation of the Sulphur Springs project was carried out in 1992 by an Italian consultant, who considered the Terra Blanche area as having potential because of its high temperature and permeability.

Lucelec has been involved in the Government's exploratory efforts over the years for geothermal energy in the Sulphur Springs area. Lucelec understands that the Government, in collaboration with French interests plans to undertake further geophysical and geo-chemical investigations, including the sinking of some shallow test wells. LUCELEC was invited to become a partner in this initiative. However, Lucelec has been reluctant because of the level of risks. Lucelec is of the opinion that any further exploration will need to clearly determine the quality and capacity of reserves in order to assess the viability of any development. This will provide Lucelec the information to determine a way forward to complement its existing sources with geothermal energy.

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Gypsum Plant
In 1999 a Joint Venture presented a proposal to the Government of St. Lucia to provide electricity from a planned Gypsum Plant in the Choiseul area. One of the elements of their proposal included a 9 MW Power Plant. As part of the agreement for this venture, the prospective developers requested that Government (effectively Lucelec) sign a power purchase agreement over a 15-year period at 10 cents US per kilowatt hour (kWh) on a take or pay basis plus a fixed fee of EC$4m per annum as a capacity charge.

On a daily basis the proposed Gypsum Plant would require 20 metric tons of solid waste, commercial waste, non-hazardous industrial waste, green-/ biomass waste and co-fire petroleum coke to generate enough steam for the plant's internal use, with a residue for sale to Lucelec.

Lucelec viewed the preliminary drawbacks to the proposal as:

1. Petroleum coke would have to be imported
2. All the waste required would likely not be available in St. Lucia and may have to be imported.
3. Lucelec's own cost of production was substantially less, US5 cents per kWh at the time
4. Who would meet the interconnection costs?

The status of this proposal is that Lucelec has requested, and is awaiting a comprehensive technical proposal from the prospective developers addressing issues such as plant location, method of fuel delivery, method of grid inter-connection etc, to review. These issues have serious implications on the technical, financial and economic viability of the project, including system security, reliability, stability and continuity.


Wind Energy
In 1995, Lucelec was approached by two foreign companies including a Canadian firm to set up a Wind Power Farm in the West Indies. They were requesting support for a commercial scale Wind Plant in St. Lucia and Lucelec endorsed the conduct of a feasibility study to determine the possibility of a Wind Power Plant being established in St. Lucia. In January 1998 Lucelec was presented with a copy of "St Lucia Preliminary Wind - Diesel Integration and Wind Power Plant Project Development Plan." These were followed by numerous meetings and a revised copy (April 26th, 1999) of the "Term sheet for Power Purchase Agreement" document. Lucelec was also provided a copy of the Wind Resource Assessment and Energy Estimate prepared by the Joint Venture in October 1998. The proposal from the Joint Venture was sent to International Wind Power Consultants hired by Lucelec for evaluation. The proposal was described as inadequate, lacking sound engineering principles and impossible to implement at the location proposed.


Perspectives on the Future
Wind power is seen by Lucelec as the most attractive form of renewable energy for the island so far. With the continuing development of this technology coupled with the current initiatives by government and the current global trend in terms of the movement away from fossil fuels, the company has targeted an integration of renewable energy into its grid to account for 10% (10MW) of its capacity by the year 2007.
In the absence of sufficiently detailed proposals and to guide its development of wind energy potential in the country, Lucelec has decided to undertake a wind power study and develop a pilot project as the initial step to a major renewable energy initiative.


The primary purpose of the wind power study is to allow Lucelec to analyze interconnection and operating cost issues, as well as consider the optimal integration of the energy generated into the national grid and environmental concerns as it relates to noise and visual impact.

A typical Wind Power project takes approximately 14 to18 months between the design phase and the commissioning of a pilot wind farm. However, this stringent time frame is dependent on acquiring wayleaves for the site(s). Tests are currently underway and consultants have selected two sites in the south of the island where a possible scheme could be initiated. The pilot project will use possibly up to two (2) Wind Turbines of at least 600 kW capacity. Once the pilot project is in place, this will facilitate the monitoring of the installation as well as attaining the necessary learning curve on the operation of Wind Power Turbines with diesel operated generating units.

In this regard, Lucelec intends to be among the leaders in the development of alternative energy in the English speaking Caribbean. Based on the results of this demonstration project, Lucelec will be in a position to determine the true cost associated with wind energy in St. Lucia and will have gathered valuable data to address inter-connection and operating cost issues. Ultimately, Lucelec sees the long term development of wind power being undertaken by an Independent Power Producer either in partnership with Lucelec or on its own with data supplied by Lucelec.

 

Lucelec has an unremitting obligation to supply the nation with safe, reliable and affordable electrical power. Any proposal for alternative energy or power purchase agreements must meet the same stringent rules the company places on itself, and must certainly contribute greatly to the benefit of consumers.

 

For further information contact Timothy Chaderton Tel 457-4400

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