Executive SummaryLike many island communities, the U.S. Virgin Islands (USVI) is almost 100% dependent on fossil fuels for electricity and transportation. This total reliance on oil leaves the territory vulnerable to global oil price fluctuations that can have devastating economic effects on individuals and businesses. USVI electricity costs are over four times the U.S. average, making energy price spikes extremely difficult for ratepayers to absorb. And like other island communities around the world, the U.S. Virgin Islands are among the first to feel the impact of the environmental threats associated with fossil fuel-based energy sources-rising sea levels, intense hurricanes, and widespread loss of coral reefs due to ocean acidification.Such risks and hardships incurred by islands offer mounting evidence that the status quo is unsustainable. In the USVI and other island communities, this has created a sense of urgency around the need to dramatically transform the way energy is sourced, generated, and used. In response, islands around the globe have adopted some of the most aggressive clean energy goals. The USVI's goal is to reduce fossil fuel use 60% from business as usual by 2025.
Source: NRELAs islands reduce their fossil fuel usage, they have an opportunity to lead the rest of the world in transforming our shared energy future. This report describes one area in which islands may lead: integrating a high percentage of renewable energy resources into an isolated grid. In addition, it explores the challenges, feasibility, and potential benefits of interconnecting the USVI grids with the much larger Puerto Rican grid.vi The overall objective of the interconnection study is to explore the most economical mix of fossil fuel-based and renewable power generation technologies that can be deployed to enable the USVI to reach its goal. This report focuses on the economic and technical feasibility of integrating renewable energy technologies into the USVI transmission and distribution systems. The report includes three main areas of analysis:• The first area of analysis (Sections 3 and 4 of the report) examines the economics of deploying utility-scale renewable energy technologies, such as photovoltaics (PV) and wind turbines, on the islands of St. Thomas and St. Croix.• The second (Sections 5, 6, and 7) focuses on the potential sites for installing roof-and ground-mount PV systems and wind turbines and investigates the impact renewable generation will have on the electrical subtransmission and distribution infrastructure.• The third (Section 8) summarizes the results of a study to determine the feasibility of a 100-200 megawatt (MW) power interconnection of the Puerto Rico, USVI, and British Virgin Islands (BVI) utility grids via a submarine cable system.
Economic AnalysisThe National Renewable Energy Laboratory (NREL), in partnership with HOMER Energy LLC, developed two models using the Hybrid Optimization Model for Renewable Energy ( The results of the analysis demonstrate the following:• Wind is cost effective at...