The PPA gives the technical specifications of the geothermal plant that will be built. The prices to be charged for energy and capacity over the life of the agreement are also set forth.
The Geothermal Resource concession is for a renewable 25 year term and grants WIPN the right to develop and produce electricity from the geothermal resources on Nevis. The concession grants certain rights, obligations and tax benefits to WIPN for the production of electricity from geothermal resources, including the right to export power from the island of Nevis to other islands.
NIA is to be paid a royalty on the products produced from the geothermal resources along with other benefits and obligations.
During his speech at the signing ceremony, Kerry McDonald, chief executive officer, of WIPN, stated: “With the signing of these agreements West Indies Power will now be able to start building the geothermal power plants that will supply Nevis and the other islands in the northern Caribbean with low cost, reliable, renewable, clean energy for the foreseeable future.”
