WAPA’s Challenges: Delays and Costs in Renewable Energy and AMI System Failures

The Virgin Islands Water and Power Authority (WAPA) is facing critical scrutiny for its handling of key projects aimed at modernizing the territory’s energy infrastructure. During a recent Public Services Commission meeting, significant concerns were raised about the protracted delays in completing essential studies for solar and wind energy projects, as well as the problematic performance of the advanced metering infrastructure (AMI) system.

Commissioner David Hughes highlighted the inefficiency with which WAPA has approached the integration of renewable energy sources into the grid. Despite engaging consultants for six years, the completion of a crucial interconnection study has been delayed for over a year. Hughes pointed out the financial impact of these delays, costing ratepayers around $3 million every month, underscoring the urgency for WAPA to prioritize renewable energy integration to alleviate costs for customers.

WAPA Executive Director Andrew Smith committed to concluding the study for the solar site at Petronella by late February but did not provide timelines for other projects. This lack of coordination and progress drew criticism from Commissioner Raymond Williams, who emphasized the high costs borne by ratepayers due to inefficient generation and the slow pace of transitioning to a renewable energy portfolio.

Furthermore, discussions surfaced regarding a lease necessary for a wind power project, revealing a staggering $9 million wasted during the wait, as highlighted by Hughes. WAPA’s legal team is actively finalizing the lease, aiming to expedite the process.

The AMI system, intended to enhance billing accuracy and grid reliability, has unfortunately not lived up to expectations, with over 60% of meters failing to meet industry standards. Factors such as hurricane damage and the challenging climate of the Virgin Islands have been cited for the reduced lifespan of these meters, leading to costly replacements. The Commissioners expressed frustration over the lack of tangible benefits to customers from this multi-million dollar investment and questioned WAPA’s maintenance capabilities.

In response, Smith suggested transitioning to an “AMI as a service” model to offload the responsibility of meter maintenance and replacement to the service provider, acknowledging WAPA’s current limitations in managing the system’s upkeep.

The Public Services Commission is now contemplating an investigation and the establishment of performance standards to ensure WAPA addresses these issues promptly, emphasizing the importance of reliable and cost-effective energy solutions for the territory’s ratepayers.