While the government has high hopes for its alternative energy programme, Prime Minister Dr Ralph Gonsalves has said that the US$17 million being spent on installing an additional 8.6 megawatts of diesel capacity at Lowmans Bay is wise.{{more}}

Responding to questions raised by Senator Daniel Cummings during his budget address, Dr Gonsalves said that it is prudent to ensure that the system has the capacity to meet the consumers’ needs now.

VINLEC will be issuing a request for a proposal to several companies for the development and operation of a Wind Farm at Ribishi Point, which is expected to produce between 6 and 8 megawatts of power.

There is also a Memorandum of Understanding with the firm Croghan Energy Limited to look into the country’s geothermal potential.

However, the Prime Minister said that while the developments in wind and geothermal energy could bear fruit in 2012 and 2015, respectively, there are new projects like the Buccament Beach Resort which are expected to be finished by 2010, the international airport at Argyle in 2011, which would make demands on the country’s electrical capacity.

“You have to put the capacity in because you can’t put development on hold,” he said.

He also spoke of the expansion of the storage facility at Lowman’s Bay, which is being funded by the Government of Venezuela, through the Petro Caribe facility.

Dr Gonsalves said that currently, the country only stores fuel to last seven days, which must be upped to cater for any unforeseen circumstance that severely delays supply. (KJ)