With the expected April 2019 departure of the United Kingdom (UK) from the European Union, British Member of Parliament (MP) Dawn Butler has said that the relationship among the UK, Jamaica, and the wider Commonwealth now has added importance, which should result in mutual energy benefits.
The leader of a three-member delegation on a visit to the island to explore renewable energy opportunities, Butler told The Gleaner during an interview at The Jamaica Pegasus hotel on Wednesday that she was optimistic about connecting with small countries to maximise all available renewable sources.
“At the end of the day, what would satisfy me the most is if the delegation has found ways in which we can collaborate and build sustainable relations with Jamaica that we can carry beyond the 2030 vision, and also if a solution can be discovered to reduce our carbon emissions.”
She added: “The drawback to renewable [energy] is finding investors for the initial outlay and technology. What follows is the concern of regaining the money, but in the wider scheme of things, there’s no disadvantage. Non-renewable energy is an international problem, and as global warming gets worse, the effect on islands such as [those in] the Caribbean is devastating.”
Born to two Jamaican parents and MP for Brent Central, the British constituency with the largest number of Jamaicans, Butler further disclosed that Jamaica had not been capitalising on its branding power had outside of solar energy.
“Jamaica has a worldwide brand that other people get rich from and Jamaica hardly benefits. There is other infrastructure that needs to be put in place to ensure consistency of produce and other things Jamaican, but Jamaica has the environment and the human resource to catapult itself to higher heights.”
Butler and the delegation are expected to hold talks on renewable energy with Prime Minister Andrew Holness and Minister of Science, Energy and Technology Andrew Wheatley prior to their departure tomorrow.
Concurrently, the addition of the 80MW of renewable energy saved 800,000 metric tonnes in toxic carbon emissions, according to the energy ministry.
These factors allowed Jamaica to breathe cleaner air and climb in the Global Energy Architecture Performance Index (EAPI). It’s unknown whether these emission savings were converted into carbon credits.
Jamaica improved six spots to 92 worldwide to become a global case study for energy diversification, according to the annual EAPI study produced by the World Economic Forum.
Trading partner and oil producer Trinidad & Tobago inched up one spot to 109, from 110 a year earlier.
The Global Energy Architecture Performance Index Report 2017 indicated that Jamaica, Mexico and Uruguay, all developing countries, made strides in their energy sector performance since 2009.
In Jamaica last year, Wigton Wind Farm III added 24MW of renewable capacity, BMR Windfarm added 36.3MW, and WRB Content Solar, 20MW.
“[It resulted] in a cut in CO2 emissions of at least 800,000 metric tonnes between 2014 and 2016,” stated the energy ministry in response to Financial Gleaner queries.
“The 80.30MW of renewable energy added to the grid represents a reduction of 413,781 barrels of oil imported per year,” the ministry said via email.
Another 100MW of capacity is expected to be developed by energy investors this year, for which the bidding process is under way, it added.
Jamaica is pressing ahead with its renewable programme even as oil prices remain subdued.
The price of oil averaged US$43.33 for WTI crude and US$43.74 for Brent crude in 2016, according to the US-based Energy Information Administration statistics.
The ministry credited Jamaica’s energy successes to the aggressive implementation of the National Energy Policy – NEP 2009-2030. In ensuring that Jamaica’s energy infrastructure is as efficient, safe and competitive as possible, the NEP has within its plan of action the formulation of a new Electricity Act which provides for and promotes renewables in the energy sector, added the ministry.
The amended electricity law, in effect since 2015, was also a deliverable of the Energy Security Efficiency and Enhancement Project. That programme also oversaw the delivery of the natural gas policy and regulations, and the smart grid road map.
Jamaica appears set to surpass its initial target of 20 per cent renewables by 2030 under the restructuring of its energy mix away from crude. The ministry said the goal has already been reset higher to 30 per cent renewables by 2030.
“All things remaining equal, Jamaica will surpass the ’20 in 30′ target and we are now aiming for ’30 in 30′,” the ministry said.
The energy efficiency programme has so far saved the government $131.5 million, which translates to a 2,768-metric tonne reduction in carbon emissions.
President of the Jamaica Public Service Company, JPS, Kelly Tomblin, is rejecting claims that she’s using scare tactics to keep businesses from turning to renewable sources of energy.
In an interview yesterday on Nationwide This Morning, Chief Executive Officer of Solar Buzz Jamaica, Jason Robinson, accused JPS of using ‘scare tactics’.
This was in response to comments attributed to Ms. Tomblin in a recent Gleaner report that the company could be forced to raise electricity rates if its top customers leave the grid.
But speaking with Nationwide News yesterday, Ms. Tomblin sought to clarify the comments she made to the Gleaner newspaper.
She’s insisting she’s not using a scare tactics.
Ms. Tomblin says she would prefer companies stay on the power grid.
This, as the intermittent use of the grid is more of a burden on JPS than if a company were to be removed completely.
And, Ms. Tomblin says the JPS doesn’t build LNG plants contrary to Mr Robinson’s claim.
He’d said the light and power company has been offering to set up small LNG plants for large companies, which would also take them off the grid.
She’s also refuting his claim that JPS’s rates are going up.
CEO of Solar Buzz Jamaica, Jason Robinson, says the Jamaica Public Service Company, JPS, is using scare tactics to keep businesses from leaving the grid and turning to alternative energy.
In a recent interview with the Gleaner newspaper, JPS CEO Kelly Tomblin was quoted as saying that it could be forced to raise electricity rates if its top customers leave their grid.
Robinson says could mitigate any losses from clients who’ve switched to alternative energy by running a more efficient operation and doing more to combat theft.
He says JPS is already doing a lot to diversify its own fuel sources to keep energy costs down.
And, Robinson is also criticizing the power company for being hypocritical.
He claims JPS has been offering to set up small LNG plants for large companies, which would also take them off the grid.
Each year, environmental pollutants cost an estimated 1.7 million lives among children under 5, according to World Health Organization reports released Monday.
Jamaica National Small Business Loans (JNSBL) is looking to vamp up interest in its US$2.5-million adaptation to climate change line of credit, catering exclusively to small and medium size enterprises (SMEs) from the agriculture, tourism and related sectors.
“In the coming months, JNSBL will be strengthening its efforts through collaborations with related parties in the tourism and agro value chain to further promote the special loan facility,” said Jacqueline Shaw Nicholson, JNSBL’s communications and client services manager.
“We will also support the education of persons on matters of climate change as well as adaptive and mitigation techniques available to them,” she told The Gleaner.
So far, SMEs have drawn down on J$19.5 million of the available funds to finance the installation of rainwater harvesting systems, drip irrigation systems, water recirculation systems, solar water heating system, and energy smart system.
The first loan was approved in December, following the official launch of the line of credit earlier in the year.
“JNSBL is pleased with the take up of the loan facility so far, with 51 per cent to the Tourism sector and 49 per cent to the agro sector in disbursements,” said Shaw Nicholson.
For those persons wishing to drawn down on the funds, criteria for selection include not only that they be operating a tourism or agro-related business, but also that proposed projects must enhance their capacity to cope better with the increased changes and effects of climate change.
“Collateral is required and can include machinery and equipment of trade or to be purchased, motor vehicles that can be comprehensively insured or registered titles as well as lien on deposits, guarantors are also acceptable,” revealed Shaw Nicholson.
The maximum loan amount that can be awarded is $5 million, with an interest rate of four per cent per annum on the reducing balance.
However, Shaw Nicholson said, “borrowers can also utilise other loan facilities available at JNSBL to further support project implementation where needed”.
The line of credit is one of two financing mechanisms under the Pilot Programme for Climate Resilience. The other is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica (EFJ).
The SCCAF finances adaptation and disaster risk-reduction projects and cover associated programme management cost.
It is accessible by community-based organisations, other civil-society groups and select public-sector agencies specifically for “clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction”, according to project documents.
The EFJ recently awarded 18 grants to the tune of $84.9 million to undertake projects designed to boost the ability of communities to respond to climate change threats.
Counted among those threats are increased and/or more severe extreme weather events, such as hurricanes and droughts, which destroy agricultural and tourism livelihoods.
Climate change also brings warmer temperatures, which, too, have negative implications for not only human livelihoods but also marine life. This is given, as one example, the negative effects of increased sea surface temperatures on coral reefs.
It is a look at these implications that, at least in part, provides the basis of JNSBL’s decision to pursue administration of the line of credit under the PPCR.
“Increasingly, agro-related activities were experiencing negative changes in production yield, both in quality and quantity, which affected their ability to earn as per usual. We, therefore, wanted to assist with educating our clients and staff on matters of climate change and assist them to obtain the systems and techniques necessary to adequately respond to matters of climatic variability,” Shaw Nicholson said.
“JNSBL is also cognisant of the wider threat climate change poses to food security and as a part of our own mandate to support economic sustainability, JNSBL wanted to provide well needed support to the MSME sector to adequately mitigate and adapt for sustainability,” she added.
Power utility boss Kelly Tomblin views Softbank’s acquisition of Fortress Investment Group, to which New Fortress Energy is affiliated, as positive for furthering plans to build out gas facilities in Jamaica,
American company New Fortress Energy is a gas supply partner to Jamaica Public Service Company (JPS).
Last November, the partners celebrated the commissioning of Jamaica’s first LNG-fired plant at Bogue in Montego Bay, and they are about to start development on another gas facility in St Catherine. In both cases, New Fortress invests separately in the gas-supply infrastructure, while JPS develops the power plant.
The marine terminal and gas power plant development at Old Harbour in St Catherine is to get off the ground “in a couple of weeks,” said Tomlin, the president and CEO of JPS, on Friday.
JPS secured funding locally for its plant, while New Fortress planned to finance the project themselves with cash rather than debt, Tomlin, who noted that the acquisition by Softbank means “they will have a lot more cash”.
New Fortress did not return Gleaner calls up to press.
Last Wednesday, the two parties jointly announced a US$3.3 billion deal for Softbank of Japan to acquire New York-based Fortress Investment Group. Fortress, which is co-chaired by Pete Briger and Wes Edens, said its senior executives would remain with the company.
“I am in dialogue with Wes Eden,” said Tomblin. “I am assured that this acquisition doesn’t harm the project and that also he is excited about this deal; and so too the members on the ground who work for New Fortress,” said Tomlin.
Asked about any other implication to Jamaica, she said there would be “absolutely none”.
New Fortress plans to build and operate a liquefied natural gas marine terminal and pipeline within the Portland Bight area or close to the Goat Islands, according to the environmental report released last year.
The project will be executed through affiliate NFE South Holdings Limited. The marine terminal will feed gas to the 190MW plant that JPS will be developing at Old Harbour.