June 21, 2012
Pohnpei, FSM—Energy Infrastructure Global, Incorporated (EIG) has submitted to Pohnpei Utilities Corporation (PUC) with copies to Pohnpei State and the Pohnpei State Legislature, a proposal to provide 10 megawatts of diesel power generation and 2 megawatts of solar power on the basis of a power purchase agreement at essentially no cost to the FSM.
EIG’s proposal is proprietary and absolutely massive in scope with a number of bells and whistles including technology for classroom education on how much photovoltaic (solar) power is being generated at any given time is just one small hint of what they are proposing. They have also proposed a plan to rehabilitate the Nan Pil Hydroelectric plant.
The basic gist of the plan which due to the proprietary nature of the proposal offers a three phased plan that would take a total of six months to implement. It says that once all of the agreements are in place, EIG and their local partner VCS Construction would be ready to begin implementation within 48 hours. All of the phases would be implemented simultaneously.
During Phase I EIG would install a 4 megawatt backup generator system. That phase would be completed within three months.
Simultaneously, during Phase II EIG would begin to install a 2 megawatt photovoltaic ground mount array (a series of solar power generating panels installed on the ground.) That phase would be completed within six months.
Also simultaneously, during Phase III EIG would complete the construction and installation of a 10 megawatt diesel power generation plant. The commissioning of that plant would be six months after the beginning of that phase of construction, essentially simultaneous with the commissioning of the solar ground array.
EIG’s proposal says that all generators and all parts would be 100% American made product.
Before execution of the first phase PUC would need to pay a $75,000 fully refundable deposit to EIG. The proposal says that after the completion of Phase I, EIG would refund the deposit plus nominal interest of .05%.
Of course land for the proposal would necessarily be part of the equation. The proposal summary doesn’t mention how much or where it should be. Also the proposal is based on the execution of an agreement for a power purchase agreement between EIG and PUC. The proposed payment per kilowatt hour is proprietary in nature and is not set in concrete.
The proposal summary says that after five years, PUC could opt to buy the power generation infrastructure they will provide. At the end of 25 years PUC could either opt to buy EIG equipment installed under the proposal or EIG would remove the equipment at their own expense.
The cover letter to the proposal says that EIG team members have engineered, designed, and built more than 30 percent of the Solar Photovoltaic Projects though out the Mid Atlantic region of The United States including the fourth largest rooftop solar photovoltaic array in North America. It says that they have a proven track record for delivering high quality projects on time and under budget.
Jose San Nicolas of VCS Construction said that the company submitted the proposal to PUC but that PUC representatives said they would have to wait to consider the proposal until after they have issued a request for proposals from other potential vendors.