May 2, 2008 — Fourteen potential small-power providers have submitted bids to the Water and Power Authority in response to its request for proposals (RFP) to provide up to 20 megawatts of non-oil-based power generation.
Because of its complete reliance on oil-fired power generation, the territory's electric bills are among the highest in the nation — and the Virgin Islands may in fact be the single most expensive jurisdiction in the United States.
This is the second time WAPA has put out an RFP for alternative-energy production. In 2004 a similar effort did not work out. Only a few companies were solicited for bids, and during negotiations with the winning bidder it became apparent the proposal had serious practical problems. (See "WAPA Looking for Alternative-Energy Providers to Supplement Power Production.")
WAPA's evaluation team will review all proposals over the coming weeks and announce the results of the RFP June 30, according to WAPA Executive Director Hugo Hodge Jr. The authority's goal is to enter into a 20-year power-purchase agreement with one or more winning respondents who can provide a guaranteed monthly supply of energy. That energy must be supplied at a cost lower than WAPA's projected energy costs, and must not be indexed to oil prices.
WAPA's RFP for alternative or renewable energy sources was issued late last year and 18 companies were pre-qualified in March. The final 14 responders have presented several different options for alternative or renewable energy, including ocean thermal energy conversion (OTEC), solar, wind, waste to energy, biomass, coal, compressed natural gas, geothermal and an inter-island connection cable between St. Croix and St. Thomas.
The 14 proposals cover a wide array of possibilities, generating between two and 130 megawatts of power. Some are proposed for St. Thomas, some for St. Croix and some for both. St. Croix Renaissance, which owns a large industrial tract by the Hovensa oil refinery on St. Croix's south shore, has submitted bids on three distinct power-generating options.
WAPA will make the final selection by June 30.
Here are all of the responding companies and their bases of operations, the amount and type of power, proposed location within the Virgin Islands and the anticipated year they could begin operation:
— Advance Green Technologies, Ft. Lauderdale Fla., solar-photovoltaic, 2 MW, St. Thomas, 2010;
— Bio Energy Inc., Cherry Hill, N.J., bio-mass, St. Thomas and St. Croix, 10-12 MW per island, 2009;
— West Indies Power Holdings, Nevis, geothermal, St. Thomas and St. Croix, 130 MW, 2010;
— Atlantic Renewal Energy, Clifton, Va., natural-gas generators, St. Thomas and St. Croix, 34 MW on St. Thomas and 24 MW on St. Croix, 2010;
— St. Croix Renaissance Group, pulverized coal-fired boilers, St. Croix, 60 MW, 2011;
— St. Croix Renaissance Group, waste to energy from garbage, St. Croix, 3.312 MW, 2011;
— Blue Wave Capital and St. Croix Renaissance Group, Boston, Mass., and St. Croix, solar-photovoltaic and wind, St. Croix, 7.2 MW, 2011;
— Alpine Energy Group, Englewood, Colo., waste to energy from garbage, both St. Thomas and St. Croix, 13.5 MW, 2011;
— Sea Solar Power International, Washington, D.C., ocean thermal-energy conversion (OTEC), St. Croix initially, with objective to expand to St. Thomas in near future, 10 MW per facility, 2012;
— BQ Energy, Patterson, N.Y., wind, St. Croix, 19.55 MW, 2011;
— Cari Trans, Plainville, Conn., interconnection transmission cable between St. Thomas and St. Croix, 60 or 80 MW, 2011;
— OCEES International, Honolulu, Hawaii, OTEC, St. Croix, 15 MW, 2011;
— Stern Brothers, St. Croix, wind, St. Croix, 16 MW, 2011; and
— 4Nu Energy Smart, Fort Pierce, Fla., waste-to-energy, St. Thomas and St. Croix, 36 MW evenly split between districts, 2011.
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