Business View caribbean - Aug 2023

32 BUSINESS VIEW CARIBBEAN VOLUME 10, ISSUE 8 relatively high cost per kilowatt hour of electricity.” In the Virgin Islands, the energy story is woven into the very fabric of daily life, reflecting a complex blend of economic constraints and creative resilience. Whether it’s a timer on a water heater or the embrace of a sea breeze, these everyday decisions paint a vivid picture of life on an island territory, where energy isn’t just a matter of economics – it’s a way of life. The Green Revolution and Infrastructure Overhaul: Charting VIWAPA’s Sustainable Future VIWAPA’s ambitious pursuit of green technology and its efforts to address the long-standing issue of water loss paints a picture of an organization striving for sustainability and efficiency. On the electric side, the commitment to a greener future is crystal clear. “We recently signed power purchase agreements, which are long- term contracts to buy power for both solar and wind,” Smith states. The importance of these agreements lies not only in their support of renewable energy but in the stability that they bring to the pricing structure. “They’re fixed price contracts that run for 25 years and they’re relatively low price versus our generation with propane or fossil fuel,” Smith elaborates. This is part of a broader strategy to counter the volatility of commodity prices in fuels such as propane, diesel, gasoline, and natural gas. Smith articulates this vision passionately, emphasizing the advantage of having a fixed price contract for electricity: “There’s no volatility in that. We know what the number is. The wind and solar projects that we signed contracts for will generate approximately 25% of the Territory’s electricity once they’re fully incurred.” But the green revolution within VIWAPA is only part of the narrative. The aging water infrastructure presents a pressing challenge, particularly in Saint Croix. Noel Hodge, the Chief Operating Officer of Water, shares the stark reality: “We’re seeing an average between 40-to-50%- line loss. We’ve inherited a system where we have pipes that were installed back in the 1950s and