Presented by: Ellsworth Dacon

November 17 2016

Discover St. Vincent & the Grenadines

https://www.youtube.com/watch?v=cypcRJPbQlU&list=RDcypcRJPbQlU

What is the driver?

Lower Electricity

Stimulate economic growth

Increase in Foreign Exchange

Climate Change

Vulnerable to Changing weather

conditions

Our Energy Concerns • Electricity approaches 50% of all operating

expenses for business.

• Energy Policy and Action Plan to reduce the dependence on fossil fuel

Our Climate Concerns Climate change is a significant treat to our island.

•Small population

•Limited resources

•Remoteness susceptibility

•Excessive dependence on tourism and agriculture

Caribbean Climate

INCREASED TEMPERATURES The number of very warm days and nights is increasing dramatically and very cool days and nights are decreasing

The Caribbean Sea has warmed

by 1.5ºC over

the last century.

Caribbean Climate

However, overall rate of precipitation is

decreasing.

Number of heavy rainfall events is increasing…

How and What will Climate Change Impact?

Effect of Climate Change on the Economy

• Surge in the Tourism Industry – Erosion of beaches, land and protective mangrooves – Coastal houses, hotels and other buildings, along with roads and other infrastructure

damages.

• Surge in Agriculture – Drought – Loss of crops due to storms and hurricane – Increased crop pest – Damage to coral reefs – Changes in sea water temperature thus affecting fishing industry

• Increased Fiscal Infrastructure Cost – Road damage – Bridge destruction due to extreme floods – Loss of houses

• Low Water Reserves – Low crop production – Tourism industry affected – Higher energy cost due inability to supply energy via Hydro Electricity – Negative effect on health and Sanitation

Small islands are sinking or eroding

Coral reefs are dying

Poor quality coral reefs will reduce

snorkelling and scuba diving experiences.

Impacts on tourism

Short or long term loss of agricultural lands and

infrastructure – reduced production

Impacts on Agriculture

Impact on Infrastructure

Impacts on Property & Life

Damage to Infrastructure (roads, etc)

2011 flood

How do we adapt to Climate Change? St

rate

gic

ob

ject

ives

Enhancing capability to respond and mitigate natural disasters

Ensuring an adequate, safe , reliable and sustainable water supply.

Ensuring a clean, safe and healthy environment

Conserving natural resources through effective utilization and management

Reducing dependence on imported fossil fuels and reducing the adverse impacts of climate change

Adaptation via Sustainable Energy

• Hydro Energy currently contributes 25% of SVG’s energy needs

• A 12 MW Geothermal Energy plant would be completed in 2018

• Solar Photo Voltaic panels installations are ongoing on a large scale by the government.

“With a peak demand of only 20 MW, a 12 MW geothermal plant could provide base power to supplement hydro, and reach 76% non-fossil generation by 2018.” (Director of Energy)

Adaptation via Sustainable Energy • Government sets the

pace with Solar PV on buildings

• Geothermal Work ongoing

• Hydro Plant capacity increased

Adaptation via Sustainable Energy

• Agricultural or animal wastes (pig and poultry) offer also offer opportunities for waste to energy systems.

• Energy efficiency has considerable potential, both in government building as well as in the tourism sector.

• Government offers incentives on renewable energy and energy efficiency technology

SVG Geothermal Development Project

AIM To deliver a 10-15 MW geothermal power plant to St. Vincent & the Grenadines (SVG).

PROJECT PARTNERS

Reykjavik Geothermal; Emera Caribbean; Government of St. Vincent and the Grenadines;

COST $83 M

PROJECT BACKGROUND

Extensive Geothermal Exploration revealed conditions comparable to those of productive fields world-wide. A preliminary geophysical model indicated temperatures in excess of 240°C.

Total Project Budget

CAPITAL STRUCTURE

Debt - Lender 1 6,700

Debt - Lender 2 42,572

Total Committed Debt 49,272 60.0%

Sponsor Shareholder Loan - 0.0%

Government Shareholder Loan - 0.0%

Sponsor Equity 24,636 75.0%

Government Equity 8,212 25.0%

Total Committed Sources 82,120 100%

• The Business Plan assumes that the project will be financed by 40% Equity and 60% debt

• It is proposed that the three parties will fund the drilling phase of the project, which inherently carries greater investment risk than the other phases of the project

• Concessional funding, where available, will help to reduce the project costs and the ultimate cost to electricity consumers

• Grid interconnection is estimated to cost US$9.5 million (~US1.5 cents/kWh)

• VINLEC has indicated its preference to own – finance, construct – and operate the transmission interconnection. This is to be confirmed

SVG Geothermal Development Project

Project Update:

• The Geothermal Resources Development Act was enacted on August 18, 2015.

• St. Vincent Geothermal Company incorporated December 8, 2015

• IRENA and the Abu Dhabi Fund for Development (ADFD) have allocated USD 15 M in concessional loans to the project, with interest rates between 1-2% per year over a period of 20 years.

• DFID 5.8 M Grant

• CDB 9.5 M contingent loan at 1.75%

• The company – Environmental Resources management (ERM), was contracted to conduct the Environmental and Social Impact Assessment (ESIA). This was presented to the Government on April 8, 2016 for review and distribution to all stakeholders.

• Soil and water testing recently completed at the prospective drilling sites proved optimistic for geothermal development

• Drilling contractor selected .Drilling is scheduled to commence by November 2016.

• Civil works will commence July,2016

Project Partners

GOVSVG

RG/Emera Caribbean

Project Company

Sustainable Transportation

Electric Vehicle Demonstration Project: