St. Maarten Private Eye

From West Indies Power Holding BV

"Geothermal Power is the use of super heated hot water and steam located in the Earth (Geothermal Resources) which are extracted by specially designed wells (Well field) and allowed to convert to steam when it reaches the surface. That steam is then collected in pipes (Gathering System) and sent to a geothermal steam turbine which uses the steam to generate electricity (Power Plant)."

Let me start by stating that I am not in any way affiliated with West Indies Power Holding BV or do I seek to do so. I am an objective observer and a consumer of GEBE electricity and am of the opinion that GEBE is currently overcharging their customers and do little (nothing) to seek ways of reducing the price of electricity.

From recent reports in The Daily Herald, one can gather that local energy and water supplying company GEBE has been made an offer by Nevis based West Indies Power to buy geothermal derived energy (= clean energy) but up to this point (June 19th, 2008) GEBE has not responded to their offer of buying clean energy from them.

Why, you ask. Please read on.

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To tap into the “Nevis energy” is relatively simple: GEBE would "only" have to lay an undersea electrical feeder cable from Nevis straight to Cay Bay and plug that into their existing electricity grid (simply stated).

Compared to the investment in the recently purchased 2 Megawatt generators (US$ 30 million) at Wartsila, this investment can be considered as peanuts.

By using geothermal energy as the primary GEBE energy source and use the current (and ordered) generators as a back up, GEBE would be able to make an end to "load shedding" once and for all. They would have a full-fledged back up in the event the undersea electrical cable gets damaged.

Furthermore, by tapping into the clean energy, GEBE would be able to DRASTICALLY lower the costs for electricity for every consumer on St. Maarten!

Quick and simple math:

According to The Daily Herald, Nevis estimates the cost of their geothermal electricity to be at approx. US$ 0.12 per KWH.

GEBE currently charges approximately the following for electricity:
US$ 1.62 per KWH (for the first 100 KWH) + US$ 0.22 per KWH for the Fuel Clause. Total: approx. US$ 1.84 per KWH.

If GEBE would sell the Nevis electricity for US$ 0.75 per KWH (remember the cost for Nevis electricity is US$ 0.12 per KWH + the investment in the installing of the undersea cable), there will still be a savings of US$ 1.07 per KWH (!!) for each and every consumer on St. Maarten.

The Fuel Clause could be eliminated once and for all (!!) because GEBE would not use fossil fuel any more to produce electricity, they would use geothermal energy that does not require any fossil fuels to be generated.

In times where the price of oil is nearing US$ 140 a barrel, affecting everybody’s pocket this might be the most responsible thing to do for the people of St. Maarten by a government owned company….

Or is there a hidden agenda (by higher powers) that prevents GEBE to divert from fossil fuel generated power?

Who supplies GEBE with their fossil fuels?

Isn’t it the same guys (family to a commissioner) that own the Shell gas stations?

If so, it would not be hard to figure out that these guys would do everything to prevent their great deal from disappearing…..or am I just imagining things here?

Please enlighten me!

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