Monday, September 24, 2012

Commonwealth of the Northern Mariana Islands:

Saipan Government Cancels Geothermal Gradient Project (4-traders - News Release)

Simplified geology map of 
Saipan showing thermally 
anomalous water wells.
KUTh Energy Limited has received written notice from the Commonwealth Utilities Corporation (CUC) in Saipan that the Geothermal Gradient Well project which KUTh successfully bid for has been cancelled.

The reason given being "specifications which have been revised". KUTh reports that cancellation notices have also been issued to other renewable energy projects that have passed through the request for proposal stage.

There is considerable uncertainty in Saipan surrounding recent procurement arrangements and processes for a "25-year sole source power purchase agreement with a private company to construct additional diesel generation in Saipan. The effect of the diesel agreement will likely be to limit the governments' ability to contract with renewable energy producers as promised."