Project Development Stages 
While the development steps identified below are helpful in understanding the overall stages of a commercial scale wind project, the list is by no means intended to be comprehensive. Every project has its own specific challenges, including regulatory compliance, local power authority acceptance, technical obstacles and in some cases community support.
"Bovoni Point Wind Turbines Looking Southwest"
The Bovoni wind project is no different in that it has its own unique challenges and circumstances. For instance the Bovoni Point location itself is a remote and generally isolated site and provides for its own logistical issues. While the environmental impact of any renewable project is important to understand and to mitigate, that is especially true for a project site like Bovoni Point, given the critical nature that the marine environment plays in the tourism economy of the US Virgin Islands.
The illustrated list below shows the basic development steps necessary for the Bovoni wind project, for a more detailed description and current status of each step please refer to the"Status" page of this website.
Project Development Status
1. Determination of Power Needs
According the US Energy Information Agency (EIA), the USVI's economy is typically about six times more energy-intensive than the U.S. economy, and per capita energy consumption is usually about seven times higher than the average of the states.
Currently the US Virgin Islands has the highest cost per kWh of electricity in the United States inclusive of all US territories. The average price of electricity paid by US Virgin Island residents in mid-2019 was about three times higher than the average power price in the 50 US states (Source: EIA). In terms of both total energy consumption needs and the high cost of power the US Virgin Islands community clearly meets this criteria.
2. Site Selection & Evaluation
The primary consideration for the development of an economically viable wind energy facility is the site’s wind resource as measured on an annual basis at the proposed site. There are a number of variables to consider when measuring wind including measurement heights, wind speed, wind direction, wind shear, ambient temperature and other factors. Typically wind data is recored for a year or longer, it is paramount to perform a through site assessment prior to development.
There are a number of ways to measure wind variables including meteorological towers using instrumentation mounted at various heights and SOund Detection and Ranging (SODAR) equipment . SODAR is a fully self-contained ground based instrument which records wind data using the frequency of sound beam technology, and can take wind measures at multiple heights up to 200 meters (656 feet). Wind data for the Bovoni Point site was collected using both meteorological towers and SODAR.
Advance Power was the first private sector company to deploy SODAR technology in the US Virgin Islands back in 2013, including placing SODAR units on both St. Thomas and St. Croix. A comprehensive evaluation of the available wind resources in the US Virgin Islands is fundamental for the development of a commercial scale wind power system for the islands.
3. Economic Modeling
While much of the discussion about renewable energy systems is about the technology itself, in the case of the wind power for instance, questions are commonly asked about how much electricity can a wind turbine produce, how tall are the towers, how fast do blades rotate, etc. Of course modern wind turbine technology is unique and interesting in how it works to provide the benefit of clean renewable energy.
However while selection and proper implementation of the right wind technology is important, while it is critical to successfully meet the"technology threshold", there is a second critical element that must be accomplished in order to successfully develop a commercial scale wind power project and that is the "economic threshold".
Essentially, for any renewable energy project to be truly successful, in addition to meeting the "technical threshold' it must be economically viable in order to sustain itself over the long-term. To be economically viable the project must be able to deliver meaningful value in terms of providing competitively priced power to the community when compared to other competing energy sources while at the same time being able to pay for the original investment in the facility and on going operations over the life of the project.
4. Regulatory Compliance
Advance Power has worked with a number of US Virgin Island government agencies over the years. Planning for a wind project like the one proposed for Bovoni Point requires an enormous amount of advance work on the ground and in the community. Advance Power's team has been in contact with various US government agencies including working with WAPA, the Public Service Commission, Virgin Islands Energy Office, Department of Property and Procurement, Department of Planning and Natural Resources, Port Authority and others to varying degrees as appropriate.
Most notably Advance Power was required to obtain a "Qualified Facility" designation under the Virgin Islands Public Service Commission rules and authority prior to and in order to construct and sell wind power to the Virgin Islands Water and Power Authority. Advance Power was approved for "Qualified Facility" certification at Bovoni Point, St. Thomas, United States Virgin Islands by the Public Service Commission on August 26, 2014, and granted under Docket No. 630, Order No. 56/2014.
Advance Power representatives continues to work closely with PSC providing testimony and updates as to the current status of the project. As the development process continues to move forward Advance Power's team will maintain and remain in compliance with each respective authority as required.
5. Power Purchase Agreement (Pending)
The"Power Purchase Agreement (PPA) is a foundational document for the development of wind power at Bovoni Point. The PPA contract will be between WAPA and Advance Power. Under the PPA terms Advance Power will generate electricity (the seller) and WAPA will purchase electricity (the buyer). The PPA defines all of the commercial terms for the sale of electricity between Advance Power and WAPA, including determining the project's commercial operation date (the date the facility will begin producing power), scheduling for the delivery of electricity, payment terms, and other related terms.
The PPA is the principal agreement that defines the revenue and credit quality of a generating project and is thus a key instrument of project finance. PPA agreements vary depending on the needs of the buyer, seller, and financing requirements. The primary terms of typical PPA agreement vary in length, it is anticipated that the duration of the PPA between Advance Power and WAPA will be twenty-five (25) years.
Advance Power reponded to a "Request For Proposals" issued by WAPA in April 2017 for the development of a wind farm to be located at Bovoni Point. Advance Power was formally notified in October 2017 that WAPA had determined that Advance Power had been the most responsive bidder and was selected to develop the wind project. Advance Power and WAPA subsquently entered into face to face PPA negotiations in January 2018. However due to a number of factors, including damage from the 2017 hurricanes, the PPA negotiations encountered a number of delays. As the importance of integrating renewable energy into WAPA's power grid remained, both parties have been in negotiations the past several months and have reached an agreement regarding the primary commercial terms, and on March 25, 2021 the Governing Board of the Virgin Islands Water and Power Authority approved the wind power purchase agreement between WAPA and Advance Power, LLC.
"Virgin Islands Water & Power Authority - News Release March 29, 2021 - Page 1"
"Virgin Islands Water & Power Authority - News Release March 29.2021 - Page 2"
6. Site Control (Pending)
A unique feature of the Bovoni PPA documentation is the requirement that site control or the right to physically construct and place the wind turbines themselves on Bovoni Point has to be granted to Advance Power. In other words, the legal authority to actually build the wind installation has to be granted under and made a part of the terms of the PPA agreement. Bovoni Point is property of the US Virgin Islands government and is managed by the Virgin Islands Department of Property and Procurement. This fact creates the need for an inter-agency agreement between WAPA and the Department of Property and Procurement, such an agreement is necessary to complete the Bovoni wind project. As of late March 2021, this item has remained open subject to the completion of the PPA.
7. Interconnection Agreement (Pending)
In conjunction with the PPA, an additional contract called an "Interconnection Agreement" is required so that the technical aspects of connecting the Bovoni wind project to WAPA's existing grid so that the power generated at the wind facility can be distributed to the US Virgin Islands rate payers. Primarily the interconnection agreement is technical in nature it addresses such items as point of interconnection, metering, system capacity requirements, switch gear, engineering, safety requirements and other related issues. The addition of a new generation system into an existing has to evaluated to assess any potential impact to the system.
In any case, an interconnection agreement is essential and has to be in place to facilitate the delivery of power. Depending on the circumstances interconnection are completed at or near the same time the PPA is finalized. Both Advance Power's and WAPA's have been communicating the technical aspects related to the interconnection agreement for the Bovoni wind project, but such an agreement is subject to the execution of the PPA and currently remains pending.
8. Permitting (Pending)
In regards to project permitting Advance Power representatives have previously met and communicated with officials at the Virgin Islands Department of Planning and Natural Resources, including the Coastal Zone Management division and will work closely with these agencies in order fully comply with all rules and to meet the permitting requirements.
However, the actual permitting process for the Bovoni wind project cannot officially begin until the PPA agreement is finalized and Advance Power has been granted the legal right to assess the site under the terms of the agreement. Until such time no formal permitting activities can proceed for the wind project.
9. Funding
Advance Power has had private sector capital funding commitments in place for the project's capital cost, construction and operations for the Bovoni wind facility prior to responding to the "Request for Proposals for the Supply of 10 MW of Electric Power Generation from Wind Energy Resources by means of a Power Purchase Agreement From Qualified Facilities" issued by WAPA back in the spring of 2017.
10. Procurement
Advance Power has had a "Turbine Supply Agreement" in place with the turbine manufacturer Leitwind for the wind turbine components for the Bovoni wind facility prior to responding to the "Request for Proposals for the Supply of 10 MW of Electric Power Generation from Wind Energy Resources by means of a Power Purchase Agreement From Qualified Facilities" issued by WAPA back in the spring of 2017.
11. Site Construction (Pending)
Advance Power has had contractors, construction crews and other service provides in place for the wind turbine components for the Bovoni wind facility prior to responding to the "Request for Proposals for the Supply of 10 MW of Electric Power Generation from Wind Energy Resources by means of a Power Purchase Agreement From Qualified Facilities" issued by WAPA back in the spring of 2017.
12. Project Commissioning (Pending)
The Bovoni wind project cannot be commissioned until all of the other items above have been completed and the project build.
13. Power Production (Pending)
The Bovoni wind project cannot begin generating wind power until all of the other items above have been completed and the project is commissioned
14. Operations & Maintenance
Advance Power has had a long-term "Operation and Maintenance" agreement in place with the turbine manufacturer Leitwind for the wind turbine components for the Bovoni wind facility prior to responding to the "Request for Proposals for the Supply of 10 MW of Electric Power Generation from Wind Energy Resources by means of a Power Purchase Agreement From Qualified Facilities" issued by WAPA back in the spring of 2017. This Operations and Maintenance agreement entered into with Leitwind is a first of its kind and demonstrates the long-term (20+ years) commitment by the manufacturer to contribute to the success of the Bovoni wind project.
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USVI Energy Cost Perspective
Virgin Islands Historical LEAC Rates From 2005 to 2019
"Historical LEAC Rates From 2005 to 2019"