Brushing Aside Lack of Due Diligence Concerns, PSC Approves WAPA Wind Turbine Projects on St. Thomas and St. Croix

Efforts by the V.I. Water and Power Authority to reduce power generation costs in a sustainable way have been given the nod by the Virgin Islands Public Services Commission (PSC) on Tuesday.

The PSC approved two Power Purchase Agreements (PPAs) between WAPA and Advance Power which will seek to provide wind energy generation on the islands of St. Thomas and St. Croix.

Advance Power LLC describes itself as a USVI-based firm founded in 2014 "to design, build and operate a wind turbine installation to produce electric power in the territory."

After the alternative energy project comes online, WAPA is expecting to buy electricity from Advance Power at a fixed price of just under 11 cents per kWh. “Our most efficient generation today makes electricity at about $0.13,” said Andrew Smith, the utility company’s executive director and chief executive officer.

The wind energy projects are also anticipated to provide capacity for more than 15 megawatts of power on St. Thomas and 29 megawatts on St. Croix. “This project will put approximately 20 percent to 22 percent of energy on our system at a fixed price of just under $0.11. So, it gives certainty into rates,” Mr. Smith told commissioners.

If realized, the PPAs could result in savings to WAPA of over $3 million each month. Mr. Smith said that this would change the risk profile of the company which is currently prone to rate hikes due to the high cost of fuel and volatility in the fuel markets.