Union Island Electricity fix, bill for VINLEC

The St Vincent Electricity Services Ltd. (VINLEC) is expected to have a busy and costly 2025 in light of energy demands, predicted to break all-time records, as well as a $25 million price tag to re-establish the transmission and distribution network on Union Island.

Senator Bernarva Browne

These and other figures were revealed during Minister of Urban Development and Grenadines Affairs, Senator Bernarva Browne’s contribution to the 2025 Budget debate on January 16, 2025.

The Southern Grenadines was severely affected by Category Four Hurricane Beryl on July 1, 2024. During a July 16 interview with SEARCHLIGHT, VINLEC’s Chief Executive Officer, Dr Vaughn Lewis explained that the island’s electricity network was all but destroyed, and restoration of central areas were the top priority.

Senator Browne told the House on Thursday that the World Bank assessment placed the damage from Beryl at around $875 million, but local assessors believed it was closer to $1 billion.

To date, VINLEC has spent $200,000 on electricity restoration efforts in Mayreau, another Southern Grenadine island that also sustained significant damage, and on Union Island $2 million has been spent.

“VINLEC estimates that the rebuilding effort of the system can cost anywhere between $10 to $25 million,” Browne said.

The country’s sole electricity service provider has set their capital budget at $58.8 million for the upcoming financial year and this includes maintenance of the Solar PV and Battery Storage system, Automatic Meter Reading, plant upgrades and expansion at Lowmans Bay, Cane Hall, Bequia, and Union Island as well as transmission and distribution line upgrades.

VINLEC has recorded an increase in the monthly domestic consumption, on average 142 kilowatts per hour, up from a 135 (kwh) average in 2024. There has also been an increase in the peak demand supply of energy.

“In 2023 it was 23.05 megawatts, while in October we reached our new record 24.7 megawatts. This is the highest daily demand for electricity that has ever been recorded for St Vincent. VINLEC anticipates that this record will be broken again in 2025, due to weather patterns and expansion of the hotel and tourism industry,” Browne pointed out.

VINLEC has also registered an increase in customers, from 48,695 in December 2023, to 49,076 in 2024.

Browne explained that the energy mix distribution across SVG is currently 85 percent fossil fuel, 11.8 percent hydro-energy, and 3.2 per cent solar energy, and government is focused on reducing energy consumption.

Senator Browne also provided figures to the House of Assembly on transportation costs the Ministry of Urban Development incurred as part of the rebuilding effort in the Grenadines.

“Six months on we [Ministry] spent $3.7 million transporting over 24,000 passengers, 300,000 pieces of cargo including food, water, construction equipment and electricity poles.”

Parliament approved Estimates of Revenue and Expenditure for 2025 of EC$1.85 billion on Friday, January 10, 2025.