A $3 million grant from the U.S. Department of Agriculture’s High Energy Cost Grant Program will be used to enhance a 3-megawatt solar installation project at the University of the Virgin Islands, the school announced Tuesday.
The grant is designed to provide financial assistance for the improvement of energy generation, transmission and distribution facilities servicing eligible rural communities.
The funds were awarded to Veriown Energy, whose parent company, New Generation Power, entered into a 20-year power purchase agreement with UVI in August 2013. The grant will allow Veriown the ability to deploy a microgrid application on UVI’s campuses on St. Thomas and St. Croix.
A total of 55 applicants from around the U.S. competed for the USDA High Energy Cost Grant. Together, Veriown and Illinois Institute of Technology had the highest rated proposal and were awarded $3 million to apply to the project.
The average electricity consumer in the Virgin Islands pays more than 50 cents per kilowatt-hour – four times more than consumers on the U.S. mainland.
“Because of this grant, the University of the Virgin Islands, with the tremendous assistance of Veriown Energy and Illinois Institute of Technology, will be in a position to become energy independent in an environment where the cost of energy is extremely high," said UVI President David Hall. "This partnership will catapult UVI into the category of the leading universities in smart microgrid technology."
According to Steve Johanns, chief executive officer of Veriown, a university is the optimal place to develop a microgrid system, not just because of its campus setting, but because it can be an institution to foster and train young people in innovative microgrid solutions that could change how energy is harnessed for future generations to come.
“This grant will have a real and significant impact on the total cost of energy for the University of the Virgin Islands,” said Johanns. “It should not go unnoticed that these savings allow universities like UVI the ability to put the money where it is needed the most – with teachers and students enhancing learning environments.”
