The Federal Government and the St. Kitts Electricity Company Ltd (SKELEC) have terminated the Renegotiated Power Purchase Agreement (PPA) with SOLEC Power Ltd (SOLEC) for the construction of a Solar PV and Battery Energy Storage Project.

This decision follows the failure of SOLEC Power Ltd to meet critical contractual obligations, requirements, and deadlines, despite repeated extensions and significant efforts by SKELEC and the Government to facilitate project implementation, according to a release from the Federal Government.

On Nov. 25^th, SOLEC informed SKELEC and the Government that SOLEC “is not currently in a position to issue FNTP (Full Notice to Proceed)” by the Nov. 25^th deadline as agreed to and required by the PPA. Consequently, SOLEC is still unable to start the Project. This notification follows a similar notice from SOLEC after failing to meet the original FNTP deadline of May 28^th outlined in the Renegotiated Power Purchase Agreement of Nov. 28^th.

Subsequent to SOLEC’s failure to meet the May 28^th deadline, SOLEC was offered a 45-day extension to July 19^th. SOLEC advised that it was also unable to meet this deadline. In September 2024, SOLEC proposed a further 60-day extension, which was agreed to by all parties on Sep. 26^th as the FINAL extension. This final contractual deadline has now not been met by SOLEC.

Following the change of administration in 2022, the Project, which originated in 2017, was reviewed by the new Administration to ensure alignment with the Nation’s best interests. In the interim, the Federal Government said it is committed “deliver affordable, reliable, and renewable energy solutions to the people of St. Kitts & Nevis… in the coming weeks, SKELEC and the Government will be announcing new renewable energy opportunities.”