The Committee for Financial Supervision (CFT) confirmed that St. Maarten can now take out loans for “critical investments” (see related story). These include new large generators for utilities provider GEBE to ensure long-term stability of the country’s electricity supply.
Prime Minister Luc Mercelina in Wednesday’s press briefing mentioned related talks with the Dutch Ministry of Home Affairs and Kingdom Relations BZK. Although many details, including legal matters, are still being discussed, he voiced the expectation that the interest rate would be the same one the Netherlands pays on the international market, with a term of 25 to 30 years.
Notably, the prime minister mentioned that renewable energy aspects were likely to be part of the negotiation framework, considering the global impact of fossil fuels.
Purchasing machines that run not just on fuel oil but also liquefied natural gas (LNG) for environmental reasons would seem to make sense. That’s even more the case if combined with a proposed fuelling terminal for the growing number of ships switching to LNG in part due to global anti-pollution requirements.
But what about solar power? Can a significant part of the local electricity capacity realistically be produced that way and still meet peak demand, also in case of several cloudy and rainy days as just experienced?
Recent scientific studies seem to suggest this is possible, as does experience in nearby St. Eustatius and Saba, be it on a smaller scale. Nevertheless, great care must be taken not to do anything that might again prompt a load-shedding crisis like the one experienced this year.
So, for example, while buying just two instead of the three intended units and relying on solar farms for the other third in output may sound nice, it could prove very risky and would require extensive objective research. A reliable energy supply remains paramount to the island and its tourism economy.
In short; this is nothing to play with.
