CHARLESTOWN, Nevis, April 30, 2009 – West Indies Power (Nevis) Ltd (WIPN) has signed a 25-year Power Purchase Agreement with the Nevis Electricity Company Ltd (NEVLEC) and has been issued with a Geothermal Resource Concession that gives it the right to develop and produce electricity from the geothermal resources on the island.
The agreement sets out the rights and obligations of the parties and gives the technical specifications of the geothermal plant that will be built, as well as the prices to be charged for energy and capacity over the life of the agreement.
Under the Concession, which is renewable for a 25-year term, WIPN has been granted certain rights, obligations and tax benefits for the production of electricity from the resources, including the right to export power from Nevis to other islands. The Nevis Island Administration (NIA) is to be paid a royalty on the products produced from the geothermal resources along with other benefits and obligations.
Nevis’ Minister of Natural Resources and the Environment Carlisle Powell said he was satisfied that the NIA negotiated a good deal for all the people of Nevis.
Chief Executive Officer of WIPN, Kerry McDonald, said the agreement was the start of something big.
“With the signing of these agreements West Indies Power will now be able to start building the geothermal power plants that will supply Nevis and the other islands in the northern Caribbean with low cost, reliable, renewable, clean energy for the foreseeable future,” he said.
West Indies Power (Nevis) Ltd is a subsidiary of West Indies Power Holding B.V, an independent power producer specialising in the development of geothermal energy in the Caribbean.