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HomeNewsLocal newsWAPA Gives Wärtsilä Another $10 Million

WAPA Gives Wärtsilä Another $10 Million

Transformer pictured as WAPA personnel moved Wärtsilä components from the Crown Bay Homeport Dock through Sub Base to the Randolph Harley Power Plant on June 4, 2022.

Virgin Islanders have been promised for several years that their high Water and Power Authority rates will be reduced when new power generators go online. The problem is the main project keeps getting delayed.

The project to install four nine-megawatt Wärtsilä engines and a nine-megawatt battery energy storage system on St. Thomas was initiated in November 2021. Plans were for the four units to be operational last summer.

Governing Board members learned Thursday that the completion day could still be a year away.

Board member Maurice Muia did not want to hear that. Muia, who has been on the board since March, wanted a completion date.

WAPA manager Chavante Marsh presented a new Wärtsilä agreement that adds $10 million to its cost and extends the date for the contract until the end of next May. She said the deal had several deadlines, and Wärtsilä would receive incentives if the generators came online early. The board approved the new deal without the “drop dead” finish deadline Muia had requested. Marsh said there was a possibility the generators would come online at the end of December. Muia had suggested that as a “drop dead” date.

Wärtsilä generator being readied for transport to Harley Power Plant in November 2021 (Submitted photo)

CEO Andrew Smith gave his final report to the board. He announced his departure during a month of frequent power outages and heavy criticism of WAPA. The Wärtsilä generators should also bring greater reliability to the St. Thomas electrical grid. Smith has also said that when they are online, WAPA’s fuel cost will be cut by more than $3 million monthly.

Smith’s last day is Sunday. The board had a lengthy executive session in the afternoon, part of which concerned personnel matters. No details were released, including who would be replacing Smith. During a recent Government House press conference, Gov. Albert Bryan Jr. was asked whether his chief of staff, Karl Knight, would be stepping in, but he did not confirm it at the time.

A solar farm project on St. Croix will also bring down WAPA’s fuel costs and is nearing completion.

VIElectron CEO Christian Loranger has said that the solar projects being developed could save WAPA $11 million a year. Smith said WAPA would be purchasing solar power at 14 cents a kilowatt-hour, below its present cost of 22 cents per kWh.

Muia asked if there should be concern about VIElectron offering its solar properties for sale. The board did not approve an agreement with VIElectron that would have had WAPA leasing a battery system and paying for power extracted from the system. Muia said, “Why should we pay twice for something? They would never try this stateside.”

Kyle Fleming chaired the meeting but stepped down as Hubert Turnbull was elected the new chairman.

Board members Turnbull, Fleming, Muia, Cheryl Boynes-Jackson, Lionel Selwood, and Juanita Young attended the meeting.

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