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Nevis authorities renegotiating existing arrangement with geothermal developer

Nevis authorities renegotiating existing arrangement with geothermal developer Drilling rig on site, Nevis/ Carbbean (source: Clean Power Nevis)
Alexander Richter 1 Dec 2020

The government of the island Nevis in the Caribbean is renegotiating an agreement with the developer of the geothermal project with the goal to guarantee lower electricity prices for local consumers.

In local news, it is reported that the Nevis Island Administration (NIA) is currently renegotiating the arrangement with geothermal developer NREI (Nevis Renewable Energy International) .  This was reported following a press conference by Hon. Mark Brantley, Premier of Nevis and Minister of Energy in the Nevis Island Administration.

With that NIA is hoping to achieve a lower price for consumers of the electricity to be produced by the planned geothermal power plant.

The initial agreement saw an equity stake in the project by NIA of 12.5% and an additional 10% royalty payments. Under the renegotiated agreement, NIA hopes to get a greater share in the savings passed on to consumers.

This has become necessary following discussions with donors and funding entities for the project that does not dilute the public interest, while at the same time transfer maximum savings to them.

Initial results indicate a lower electricity price from US$0.19/ kWh to $0.15/ kWh, with hopes to lower it even further. Financing has been a key puzzle piece, and the Caribbean Development Bank has been described as very helpful to NIA.

The holder of the concession is NREI, while a new company involved in the project is Albioma, a leading producer of photovaltaic power in Caribbean France. There are ongoing discussions with the local electricity company NEVLEC, as offtaker for the power.

NIA and its premier are confident that following the renegotiated contract will move things forward with the project.

Source: SKN Vibes