By Vernan George – St. Kitts-Nevis Observer
Premier of Nevis Mark Brantley says drilling of geothermal production wells could begin as early as October or November, following a successful inspection of the drilling rig in Iceland.
Speaking on the Government at Work programme on Thursday, September 4, Brantley said representatives from the Nevis Electricity Company Limited (NEVLEC) and a United Kingdom-based company recently travelled to Iceland to inspect the rig.
“We have made some giant strides already. We have even more positive news to report in relation to that move, which I think is ultimately going to be a game changer for us,” Brantley said.
He said the inspection has cleared the way for the next stage, with deployment of the rig expected shortly.
“That inspection having been done, we expect now that we move into the deployment of the rig. I expect that that’s going to happen this month,” he said.
Brantley said if the rig is deployed and positioned on Nevis during September, drilling could begin as early as October, although early November may be a more realistic target.
“If the rig is deployed and is in position this September, if I’m ambitious, I would really expect that we will have drilling start as early as October, or perhaps early November,” he said.
The Premier described the planned drilling of the production wells as a significant milestone in the Federation’s geothermal energy programme.
“I think that we are within touching distance of this start of drilling, which will be a significant milestone for this particular project,” he said.
“We’re now talking about drilling production wells. We’ve already done the exploration wells. These are now production wells. So we’re moving out towards production, and that I think is going to be absolutely critical.”
Despite his optimism, Brantley acknowledged that logistical challenges could affect the timeline.
“The rig inspection was only done last week, and we will now look at the mobilisation. Things can change and there can be difficulties,” he said.
Among the logistical issues, he identified the need to determine how the drilling rig will be transported through Long Point Port and whether Nevis’ roads can accommodate its weight.
He said technical personnel will have to assess the load-bearing capacity of the island’s roads, while a well pad must also be constructed at the drilling site.
According to Brantley, construction of the well pad is expected to cost approximately US$4 million.
“Things were on track. We lost a bit of time because we’re going back and forth with getting funds mobilised, but funds are now being released, and I think that we are well on our way,” he said.
Brantley said the financing currently secured is primarily dedicated to drilling and upgrading the supporting infrastructure.
The funding is being provided through a combination of sources, including Saudi Arabia, Italy, the Caribbean Development Bank, the Inter-American Development Bank and the Green Climate Fund.
“That envelope of funding is really dedicated to the drilling and the upgrade of the infrastructure,” he explained.
He said the Nevis Island Administration will eventually have to seek additional financing for construction of the geothermal power plant itself.
“For the plant, what we are hoping to do now is to finalise the arrangements for that course. Once we’re drilling, we also want to be talking about the plant,” Brantley said.
“The idea really is to go back out to market in relation to the plant. We are not there yet, but we hope to really make that plea in short order.”
Brantley also addressed the ongoing issue of electricity costs and the Government’s fuel surcharge subsidy, saying the Administration hopes to revisit the subsidy as the tourism season gets underway and revenues improve.
“I can commit that we are now in the month of September. We are hopeful that by November, as the tourism season kicks off and as our revenue stream is enhanced, we should be able to revisit the issue of subsidy to see what we can do,” he said.
However, he cautioned that the Government faces financial constraints during the slower months and said the international oil market remains a major factor affecting electricity prices.
“Given the financial situation in these lean months with the government at this time, I don’t see within the next two months that we can do much more than pray that this confusion in the Middle East settles and that oil prices can come back to some semblance of normalcy,” Brantley said.
He nevertheless promised that consumers would benefit if fuel prices stabilise.
“What I will commit tonight is that the minute that those prices stabilise, you will see the benefit of that in your electricity,” he said.
In the meantime, Brantley urged consumers to conserve electricity and take steps to manage their bills.
“For these couple of months, I’m asking our people to hold strain and try their very best to reduce their consumption of electricity so as to control their costs,” he said.
He also encouraged customers experiencing unusually high bills to engage NEVLEC directly.
“I will also remind consumers that if your bill has doubled, as in the case of some people, you go in and speak to NEVLEC,” Brantley said.
He said NEVLEC has been instructed to work with customers where possible and to increase community outreach and education on energy conservation.
The Premier said the geothermal project remains a major priority for Nevis, with the upcoming production-well drilling representing an important step toward eventually reducing the island’s dependence on imported fossil fuels for electricity generation.
