ST. THOMAS — U.S. Energy Secretary Jennifer Granholm toured the Randolph Harley Power Plant today on St. Thomas in addition to hearing about the core priorities at the Virgin Islands Water and Power Authority as part of her first trip to the territory since being sworn in to lead the Department of Energy in February 2021, according to senior DOE officials.
Granholm, who will also travel to Puerto Rico this week, will engage with WAPA officials and other local stakeholders about challenges and opportunities the territory faces operating its electrical infrastructure while emphasizing the administration’s commitment to delivering clean and reliable energy for all Americans, senior DOE officials said during a virtual conference call with the media on Monday.
Additionally, the energy secretary will participate in an intergovernmental meeting with key local and federal stakeholders. She will engage representatives from private industry and nonprofit organizations during a roundtable discussion on challenges in the territory’s energy landscape. The discussion will focus on how additional federal coordination can best support the territory.
Granholm, while responding to media inquiries during today’s power plant tour, spoke about the Energy Department’s role in providing support to help the Virgin Islands achieve a reliable power grid inclusive of more renewable energy.
“First of all, you have to have reliable and sustainable power for people to be able to live; that’s like No. 1,” she said. “No. 2; it’s got to be affordable.”
Granholm said VI residents pay “way too much” for power. She said the most abundant and less expensive form of power is renewable energy, noting the sun is free. She said the DOE wants to be a partner in helping the territory devise a technical roadmap to increase its renewable energy footprint. She said the DOE has been providing technical assistance to Puerto Rico, which is on track to transition to 100% renewable energy by 2050.
As WAPA works to incorporate more solar power into the grid, Granholm pointed out the Department of Energy is making sure the territory’s existing energy resources are functional. She said the DOE is helping to make sure through the Federal Emergency Management Agency and U.S. Department of Housing and Urban Development that funding is available to repair and maintain the energy infrastructure.
“Ultimately, what you have are a lot of old plants that have been damaged, and no redundancies,” she said. “And so, we want to make sure that you have stable power that is affordable power, and ultimately that it’s clean power.”
Granholm and Delegate to Congress Stacey Plaskett toured the Randolph Harley Power Plant with Ashley Bryan, WAPA interim CEO, as well as other WAPA officials.
Plaskett, who also responded to media inquiries during the tour, said part of the discussion with the federal partners will be about ensuring funding is available for maintenance, which she noted is tied to reliability. She said President Joe Biden, through his Inflation Reduction Act, has made an incredible effort to ensure there is reliable, affordable energy for Americans. She said the president specifically indicated priority should be given to underserved, minority communities in isolated areas affected by climate change.
“That is the Virgin Islands,” she said.
Plaskett pointed out the momentum the Virgin Islands has toward achieving its energy goals with the presence of the energy secretary in the territory.
“We’re seeing that it’s happening in Puerto Rico, and there’s no reason that our near neighbor, our sister island should have what we don’t have, and so bringing her and her team here is part of that discussion,” she said.
As WAPA introduces more renewable energy onto the grid, HUD announced the release of $100 million this week in Community Development Block Grant – Mitigation funds to the Virgin Islands for the purchase of fuel storage infrastructure on St. Croix and St. Thomas from Vitol.
Plaskett, in a statement issued today, noted the purchase settles the government’s agreement with Vitol. She said while she previously expressed her reservations about the use of such precious funds to purchase the Vitol infrastructure, she is grateful for the relationship the territory has with HUD. She said CDBG – Disaster Recovery funds are designated to facilitate long-term recovery and included targeted funding in the case of the Virgin Islands to mitigate future disaster risks through CDBG – MIT.
“Specifically, this funding is intended to increase resilience to disasters and reduce or eliminate the long-term risk of loss of life, injury, damage to and loss of property, and suffering and hardship, by lessening the impact of future disasters,” Plaskett said in a statement, adding that projects related to housing and roads are great uses of these funds.
Nonetheless, Plaskett said utilizing the CDBG – DR funding to pay off the Vitol debt was Governor Albert Bryan Jr.’s decision. She said she hopes that with the purchase of the fuel storage infrastructure, the territory’s relationship with Vitol will end and the Virgin Islands will find new vendors for propane fuel transport.
“The people of the Virgin Islands deserve affordable, reliable power, and I am hopeful that this purchase will help strengthen the resilience of our territory’s utility and an increased hardening of our energy infrastructure,” Plaskett said in a statement.
The governor also issued a statement today announcing the “landmark” $100 million federal investment in the territory’s energy infrastructure, noting it came about after years of diligent efforts and strategic negotiations with HUD, White House officials, and congressional leaders.
“The securing of this grant is the culmination of persistent advocacy and collaboration at the highest levels of government,” Bryan said in a statement. “This is not just an investment in infrastructure; it’s a foundational step towards the strategic resilience of our energy systems. I extend my profound thanks to HUD, the Virgin Islands Housing Finance Authority, and our dedicated outside counsel in Washington, D.C., whose unyielding support has been instrumental in achieving this milestone.”
Following the severe damage Hurricanes Irma and Maria caused in September 2017 to the electrical infrastructure in the Virgin Islands, the DOE has been providing technical assistance since 2018 to local public entities in the implementation of federal investments being made in the recovery of the territory’s power system.
“DOE is tracking the challenges facing the islands’ electrical grid, and we are committed to using the funding and authorities available to us to support USVI in building a resilient power system,” a senior DOE official said during Monday’s virtual conference call. “The secretary’s visit will help support that goal.”
Granholm will travel to Puerto Rico to participate in events on Wednesday and Thursday as part of her trip to the island to highlight how the Biden/Harris administration is making historic investments to secure clean energy access, ensuring solar and battery storage and upgrades to the electric grid to make sure no community is left behind, the DOE stated in a media advisory. The energy secretary will be joined by several members of Congress, including U.S. Representative Nydia Velázquez (D-NY), for meetings with senior leaders throughout the region.
