Governor Bryan on Monday, March 14 announced a plan to install a large solar farm on St. Croix and make St. Croix 100% dependent on solar energy in 6 months. The motivation is that the Ukraine war has triggered a significant increase in the price of oil and gas. Last week a barrel of Brent Crude was $130. For 2021, Brent Crude average $ 72 a barrel. VIWAPA, the local power, and water utility is 92 percent dependent on fossil fuels (heavy oil No. 2 and propane gas). The longer the war in Ukraine lasts, the more likely it is that there will be upward pressure on oil and gas prices. The US Virgin pays $.43 kWh residential ad $.47 kWh commercial, the highest rate in the Caribbean and among all US jurisdictions. Come July, WAPA has expected a large hike in LEAC to cover its higher fossil fuel costs.

Please read the following article and discuss it among yourselves.

1. Is it feasible to execute such a large project of this nature within 6 months given all the typical procurement problems the GVI encounters? Is it feasible to expect that construction of such a large solar array could be completed in such a short time.

2. WAPA would ostensibly still be responsible for transmission and distribution. WAPA experiences high line or technical losses in transmission. WAPA is cash strapped and faces negative cash flows. How are WAPA deficiencies likely to impact this new solar farm?

3. What economic tools you have been exposed to can you bring to bear in analyzing this proposition? Remember WAPA is a monopoly and the proposition is that it will be purchasing solar energy from a private, independent power producing company at a given price( hopefully much lower than the cost of current and near time expected propane and oil prices)

4. Is this a good move? Does it make sense? Is this just an election-year ploy aimed at winning votes byt looking responsive to a brewing energy crisis in the Territory?