The Virgin Islands, like many island communities, is nearly 100 percent dependent on imported fuel oil to provide the electricity that keeps our homes and businesses running. This has made our entire economy and standard of living vulnerable to global oil price fluctuations. Not only is fuel oil currently an expensive way of producing electricity, it is also a significant source of air pollution.
In response, our community has been aggressive in pursuing clean energy strategies such as energy efficiency and renewable energy. Solar water heating and solar photovoltaic energy have become commonplace.
The first utility-sized solar power plant has broken ground on St. Croix, with several more to follow throughout the territory. Wind turbines are becoming more popular. The government is making large investments in energy efficiency for the schools, hospitals and other government facilities.
Likewise, many others are making investments in energy efficiency for their homes and businesses. Each step takes us closer to meeting the government’s commitment made in the clean energy roadmap to reduce our dependence on fossil fuels by 60 percent by 2025.
But even such an ambitious goal realistically implies that we will still have a partial dependence on fossil fuel for the foreseeable future.
The V.I. Water and Power Authority’s recent announcement of a switch from using fuel oil to propane is the most significant step yet taken to address the economic and environmental concerns we share about our current energy portfolio. While still a fossil fuel, propane is a preferable alternative to fuel oil.
This decision replaces the current core of our power production with a fuel that is both cleaner and more affordable. It also enhances our energy security and resiliency by adding flexibility to WAPA’s fuel supply options.
Propane represents the best short-term option to reduce the cost of fuel for power generation and water desalination in the territory. The fuel switch will reduce WAPA’s fuel costs by approximately $90 million annually, meaning a decrease in the fuel surcharge (LEAC) and savings for all of WAPA’s customers.
These savings will not only mean lower power bills for households, businesses, schools and hospitals, but extra funds that can be used on other essentials and investments. Our economy and our communities will be strengthened by the ability of small businesses to hire more workers and the government’s ability to better fund programs.
By switching to propane, we are also making an investment in our long-term economic and physical health by protecting the environment and the natural beauty of our islands.
Propane, a byproduct of natural gas extraction and oil refining, is cleaner than oil and making this switch will reduce greenhouse gas emissions which contribute to global climate change. In fact, the carbon emissions from propane are 20 percent less than that of fuel oil and 50 percent less than coal.
Because propane is one of the cleanest burning fossil fuels, air quality on our islands will improve as a result of the fuel switch.
WAPA’s fuel switch project goes hand in hand with the national agenda to move towards cleaner and more sustainable energy sources, with the added benefit of being able to cut high power bills for our residents.
WAPA should be recognized for its leadership, both here in the Virgin Islands and in the region, for demonstrating the way towards a cleaner and more affordable energy future. By moving forward with this project, the Virgin Islands is leading by example for the other island communities burdened by high costs and environmental concerns.
Power generation with propane is a win-win for families, businesses and our valuable natural environment.
Karl Knight is the director of the USVI Energy Office.
