Swiss energy storage company Leclanché has broken ground on a US$70 million solar and storage microgrid project in St Kitts and Nevis. Contact online >>
Swiss energy storage company Leclanché has broken ground on a US$70 million solar and storage microgrid project in St Kitts and Nevis.
The system will include a 35.7MW solar farm and a 14.8MW lithium-ion battery energy storage system (BESS) with a capacity of 45.5MWh, providing state-owned utility St Kitts Electric Company (SKELEC) with roughly a third (30%-35%) of the island’s energy supply. Leclanché claims it will be the Caribbean’s largest solar-plus storage project on completion, and will eliminate 41,500 metric tonnes of carbon emissions in its first year.
Timothy Harris, Prime Minister of St Kitts and Nevis, said the build is a “significant milestone” for the region, which will help the island to create a more independent energy market and reduce reliance on fossil fuels.
The solar farm will stand on disused agricultural land that had been used for sugar cane production near the capital Basseterre. Leclanchésecured a 20-year lease on the land last year, and SKELEC signed a 20-year power purchase agreement (PPA) with the firm in exchange. Leclanché CEO Anil Srivastava said at the time the build “sends a strong signal to other Caribbean countries…that there is a cleaner, more cost-efficient and viable alternative to diesel power.”
The announcement comes exactly one year after a group of Caribbean and Latin American states, including the Dominican Republic and Haiti,committed to ensure an average 70% of installed energy capacitycomes from renewable sources by 2030.
“Today's groundbreaking marks a significant milestone for our citizens, tourist economy, our broader business community and indeed the entire Caribbean region, despite the delays caused by COVID-19,” Harris said.
“This visionary project will help secure our energy independence, provide long-term price stability and reduce our reliance on diesel fuel.”
This story first appeared on PV Tech.
Leclanché SA / Key word(s): ContractLeclanché provides battery energy storage system for largest solar and storage project in the Caribbean, construction starting in 2024 04.12.2023 / 02:00 CET/CEST
BASSETERRE, St. Kitts and Nevis andYVERDON-LES-BAINS, Switzerland, 4th December, 2023 – Leclanché SA, one of the world''s leading energy storage companies, will provide the island of St. Kitts with 35.7 MW of solar capacity and 43.6 MWh of battery storage. The Government of St. Kitts and Nevis, along with SKELEC, the state-owned St. Kitts Electricity Company Ltd, have executed an amended Power Purchase Agreement (PPA) with SOLEC Power Ltd, a subsidiary JV of Leclanché, for the solar photovoltaic and battery storage project located in Basseterre. The installation consists of a fully integrated solar photovoltaic system (solar field) and a lithium-ion battery energy storage system (BESS) utilising Leclanché''s proprietary energy management system (EMS) software.
"This agreement underscores our shared vision for a greener, more sustainable future for the people of St. Kitts and Nevis. Partners such as Leclanché, who can provide the highest quality integrated solar and storage systems, which can withstand the tropical and marine climate conditions and provide clean renewable energy for decades to come, are key to putting St. Kitts at the leading edge of renewable energy integration worldwide", said Honorable Konris Maynard, Minster of Energy and Infrastructure of St. Kitts and Nevis.
"In this momentous collaboration with the Government of St. Kitts and Nevis, Leclanché reaffirms its commitment to being a positive force for change. This landmark contract showcases our capability to deliver robust, state-of-the-art energy solutions globally, reflecting the immense trust in our technology and industry-leading expertise. At the core of this historic partnership is the recognition of our unique ability to redefine expectations and provide sustainable energy solutions. Our value model, emphasizing innovation, efficiency, and sustainability, ensures that we not only meet but exceed our clients'' needs.
The entire management team at Leclanché is elated by this significant milestone and underscores our unwavering commitment to aligning management performance with the success of the company, including its value in the market. Our growth is intricately linked to client satisfaction and the outcomes we deliver, reflecting our dedication to excellence in every endeavor.
As we embark on this exciting journey with the Government of St. Kitts, we are confident that our value-driven approach and unwavering alignment with performance will yield remarkable results. Together, we aim not only to drive progress in the energy sector but also to set new standards for innovation, sustainability, and customer satisfaction. This collaboration epitomizes our shared vision for a greener, more sustainable future powered by cutting-edge energy solutions" says Pierre Blanc, CEO Leclanché.
The project will be the largest solar and storage facility in the Caribbean and will provide clean, renewable energy with long term costs savings. The battery energy storage system will not only allow for dispatchable power but also provide load balancing and back-up spinning reserve which will enhance reliability and efficiency for the entire SKELEC electricity grid.
Mr. Clement Jomo Williams, General Manager of SKELEC added: "Leclanché''s state-of-the-art technology is critical to the success of this Project and will allow us to realise a one-of-a-kind and future-looking facility for St. Kitts and Nevis and the Caribbean."
With the execution of the amended 25-year PPA and other related documents, the project is scheduled to start construction in the second quarter of 2024 and start providing the solar energy to SKELEC in 2025, putting St. Kitts at the leading edge of renewable energy integration worldwide.
Through the utilisation of Leclanché''s cutting-edge battery technology and wealth of experience, St. Kitts is poised to make substantial strides, achieving a noteworthy milestone by attaining over 30% penetration of renewables. This achievement not only enhances St. Kitts'' renewable energy portfolio but also triggers a positive impact on Leclanché''s 2023 Net Income through the reversal of impairment provisions.
Integral to our continued success is our steadfast commitment to a comprehensive value model that extends beyond conventional solutions provision. Leclanché strives to serve as a transformative force, embodying principles of innovation, efficiency, sustainability, and the delivery of unparalleled value to our esteemed clients. The recent agreement with the Government of St. Kitts exemplifies a shared dedication to reshaping industry norms and establishing new benchmarks for excellence.
Moreover, the financial impact of reaching this milestone in 2023 is poised to enhance Leclanché''s overall financial performance. This positive trajectory is expected to contribute to the company''s stability and growth, fostering a shared vision for sustained success. The commitment of our shareholders, evident in their resolve against further issuing new shares of the company, is a testament to their understanding of the value and potential inherent in Leclanché''s strategic initiatives. Ongoing management performance aligned with share price mechanism, and dedicated to our value-driven model, Leclanché remains steadfast in its commitment to driving positive change, sustainability, and innovation within the global energy landscape and align interests with our investors.
The PPA provides significant cost savings with a reduction of up to 40% compared to the current (2023) cost of diesel power generation. Over the 25-year term of the contract, the project is estimated to provide the utility with savings of USD 170 to 200 million. The energy will be provided under a fixed-price PPA for a period of 25 years.
Leclanché''s battery storage system will ensure that the continuous fluctuating power demand on the island matches the instantaneous grid capacity (load balancing and frequency regulation). It will also provide immediate response for back-up power to the grid (spinning reserve) and emergency power that will reduce outages and increase the grid stability, all while providing carbon neutral energy.
The installation of the project will have a positive impact on local employment and the economy, creating over 200 jobs during the construction for both skilled and unskilled labour and the use of eight to ten million in local goods and services.
1788015 04.12.2023 CET/CEST
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