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.
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.
WITH A changing climate that threatens to wash away entire communities and derail livelihoods, local civil society organisations and small businesses are being empowered to respond – with capital.
This is thanks to financing made available through the Pilot Programme for Climate Resilience (PPCR).
There exist two financing mechanisms, according to Dr Winsome Townsend, project manager for the Adaptation Programme and Financing Mechanism under the PPCR.
One is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica.
The SCCAF, according to project documents, is “to finance adaptation and disaster risk-reduction projects and cover associated programme management costs”.
“Grants from this trust fund will be accessed by community-based organisations, other civil-society groups and selected public-sector agencies, for clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction,” the documents revealed.
Last Monday, the first 18 beneficiary organisations were awarded sums to the tune of $84.9 million to undertake projects designed to enhance resilience at the community level.
“There was a call for proposals in October last year and out of that, about 80 proposals were received and about half that amount were shortlisted. They were further assessed and out of that, an initial 18 were approved,” said Townsend.
“Twelve were pending approval. Those 12 have now been approved. So out of that first call, approximately 30 have been approved,” she added.
Projects to be pursued include water harvesting and greenhouses, aquaponics systems and food processing, as well as various ecosystem restoration initiatives.
Townsend said another call will be issued later this month or early March.
The second mechanism is a line of credit, intended “to provide loan financing to support adaptation measures of farmers and other businesses in the agricultural sector, and small hoteliers and other businesses in the tourism sector”.
Five projects have been approved to the tune of some $25 million, Townsend said. However, the overall level of interest in the line of credit – administered by JN Small Business Loan – is not immediately clear.
“Because it has started soft, we don’t know yet. We can’t at this time make any determination as to the level of enthusiasm,” Townsend said.
Still, she is hopeful for its success, given what is at stake.
“It is not just the Government who needs to put in measures in terms of climate change adaptation, but everybody, including citizens. Of particular interest is the private sector because businesses are under threat from climate change, and so the private sector needs to respond to these threats,” she said.
“The micro, small and medium-size businesses are at greater risk because of their capacity to respond. They are not as resilient as the more established or bigger enterprises,” Townsend noted.
WITH ECONOMIES under threat due to climate change and prevailing high production costs, the recent Caribbean Sustainable Energy Forum (CSEF) served as a call to urgent action to realise energy efficiency and energy sustainability within CARICOM.
Kim Osborne of the Executive Secretariat for Integral Development at the Organisation of American States, said it is past time that talk be translated into action.
“There is always the challenge of maintaining a healthy balance between dialogue and implementation. Several studies and reports have noted that our region faces an ‘implementation deficit’, but I would venture to say that the region also suffers from a ‘dialogue surplus’,” she noted.
She was addressing participants at the Caribbean Sustainable Energy Forum (CSEF), held in The Bahamas last week.
“There is a serious mismatch between meetings and results in our region. My point here is twofold: that dialogue is not an end to itself, and that dialogue that does not lead to action and to results is meaningless,” Osborne added.
At the same time, she said that energy must not be looked at in isolation, but rather in the context of sustainable development.
“In the normal course of things, energy is not provided in a vacuum. It impacts and is impacted by several factors, such as poverty, water availability, disaster risk, climate change, health, education and human resource development, human rights, and coastal and marine management,” Osborne said.
“I am proposing that to the fullest extent possible, an integrated approach should be adopted towards the goal of sustainable energy management,” she added.
For his part, Dr Devon Gardner, programme manager for energy with the CARICOM Secretariat, emphasised three things – partnership, integration and action.
“The partnerships are not just for the CSEF, but with the World Bank and the United States Government, we are able to implement the Caribbean Sustainable Energy Road Map ad Strategy (C-SERMS) platform … . Because of partnerships, we have been able to work with the member states,” he said.
On integration, he noted: “The CARICOM secretariat is really there to serve the member states. We do what the member states require to get the job done. The CARICOM is a group of countries within the Caribbean that we want to do some things together because it makes sense for us to work together to achieve mutual and shared objectives. And the role of the secretariat is to help the member states to realise this objective.”
Added Gardner: “We believe that all that CARICOM desires – from economic development to climate resilience to social resilience to security – is underpinned by having a strong energy sector … . We see energy as a critical part of the regional integration tool.”
In the end, Gardner said there was no question of realising C-SERMS energy targets that include 47 per cent renewable power capacity by 2027 without urgent action.
A number of regional leaders – among them Dr Regilio Dodson, Minister of Natural Resources in Suriname – have noted their support for an integrated and unified approach to the energy efficiency and sustainability in the region.
“We should work together … . We have to actively promote success stories … and learn from each other and go together and try to determine what is for our region the best way forward,” he said.
“If we work together to get this going and get the cooperation between CARICOM countries going, then we will have our energy security in our own hands, ” he added.
Among the topics explored over the three days of discussions at CSEF 2017 were ‘The CARICOM Energy Policy Road Map and Strategy: Shifting the C-SERMS from Concept to Action'; ‘The Regulator Within the Integrated Resource Planning Process'; and ‘The CARICOM Energy Transition: Lessons from the Last Five Years’.
The forum also saw the meeting of regional working groups on key thematic areas, including information and knowledge management, finance, capacity building and research, as well as policy and regulations.
Solar power is now cheaper than coal in some parts of the world. In less than a decade, it’s likely to be the lowest-cost option almost everywhere.
In 2016, countries from Chile to the United Arab Emirates broke records with deals to generate electricity from sunshine for less than 3 cents a kilowatt-hour, half the average global cost of coal power. Now, Saudi Arabia, Jordan and Mexico are planning auctions and tenders for this year, aiming to drop prices even further. Taking advantage: Companies such as Italy’s Enel SpA and Dublin’s Mainstream Renewable Power, who gained experienced in Europe and now seek new markets abroad as subsidies dry up at home.
Since 2009, solar prices are down 62 percent, with every part of the supply chain trimming costs. That’s help cut risk premiums on bank loans, and pushed manufacturing capacity to record levels. By 2025, solar may be cheaper than using coal on average globally, according to Bloomberg New Energy Finance.
“These are game-changing numbers, and it’s becoming normal in more and more markets,” said Adnan Amin, International Renewable Energy Agency ’s director general, an Abu Dhabi-based intergovernmental group. “Every time you double capacity, you reduce the price by 20 percent.”
Better technology has been key in boosting the industry, from the use of diamond-wire saws that more efficiently cut wafers to better cells that provide more spark from the same amount of sun. It’s also driven by economies of scale and manufacturing experience since the solar boom started more than a decade ago, giving the industry an increasing edge in the competition with fossil fuels.
The average 1 megawatt-plus ground mounted solar system will cost 73 cents a watt by 2025 compared with $1.14 now, a 36 percent drop, said Jenny Chase, head of solar analysis for New Energy Finance.
That’s in step with other forecasts.
The solar supply chain is experiencing “a Wal-Mart effect” from higher volumes and lower margins, according to Sami Khoreibi, founder and chief executive officer of Enviromena Power Systems, an Abu Dhabi-based developer.
The speed at which the price of solar will drop below coal varies in each country. Places that import coal or tax polluters with a carbon price, such as Europe and Brazil, will see a crossover in the 2020s, if not before. Countries with large domestic coal reserves such as India and China will probably take longer.
Coal industry officials point out that cost comparisons involving renewables don’t take into account the need to maintain backup supplies that can work when the sun doesn’t shine or wind doesn’t blow. When those other expenses are included, coal looks more economical, even around 2035, said Benjamin Sporton, chief executive officer of the World Coal Association.
“All advanced economies demand full-time electricity,” Sporton said. “Wind and solar can only generate part-time, intermittent electricity. While some renewable technologies have achieved significant cost reductions in recent years, it’s important to look at total system costs.”
Even so, solar’s plunge in price is starting to make the technology a plausible competitor.
In China, the biggest solar market, will see costs falling below coal by 2030, according to New Energy Finance. The country has surpassed Germany as the nation with the most installed solar capacity as the government seeks to increase use to cut carbon emissions and boost home consumption of clean energy. Yet curtailment remains a problem, particularly in sunnier parts of the country as congestion on the grid forces some solar plants to switch off.
Sunbelt countries are leading the way in cutting costs, though there’s more to it than just the weather. The use of auctions to award power-purchase contracts is forcing energy companies to compete with each other to lower costs.
An August auction in Chile yielded a contract for 2.91 cents a kilowatt-hour. In September, a United Arab Emirates auction grabbed headlines with a bid of 2.42 cents a kilowatt-hour. Developers have been emboldened to submit lower bids by expectations that the cost of the technology will continue to fall.
“We’re seeing a new reality where solar is the lowest-cost source of energy, and I don’t see an end in sight in terms of the decline in costs,” said Enviromena’s Khoreibi.
Rooftop solar energy is becoming a financially viable way for millions of U.S. consumers to generate their own electricity — and utilities are doing everything to kill the solar boom before it gains too much traction. Utilities in states such as Florida, Wisconsin, and Nevada have tried to undermine rooftop solar at the regulatory level and in ballot measures. As a reaction, voters have fought back and beaten the efforts to squash solar energy.
The impact on residential solar companies Tesla (NASDAQ: TSLA), Vivint Solar(NYSE: VSLR), Sunrun (NASDAQ: RUN), and SunPower (NASDAQ: SPWR) shouldn’t go unnoticed. They’re winning the policy war against utilities, and as they do, it’ll open a larger and larger market across the country.
The election earlier this month was accompanied by a number of ballot initiatives that will impact solar energy for years to come. And for the most part, solar energy was a huge winner.
Despite utilities’ spending $26 million to pass a referendum that would have undermined solar economics in the state, Florida voters rejected the utility referendum. The state now looks like it’ll have a bright solar future.
In Nevada, less than a year after the public utility commission essentially killed the rooftop solar industry, residents overwhelmingly voted to break up Berkshire Hathaway (NYSE: BRK-B)-owned NV Energy’s long monopoly in the state. Customers have to be given energy choice, meaning more solar in one of the country’s sunniest states.
In the past, Wisconsin has tried to add fees to utility bills that would kill solar energy before it ever got started, but those attempts were rejected by the court.
There’s an important trend here for utilities and solar companies: When solar energy goes on the ballot or to the court, it wins. That should have every utility in the country frightened because that gives millions of customers choice regarding their energy needs.
Policy wins are important because they lay the groundwork for future innovations to take hold in energy. Today, that means rooftop solar on more than 1 million homes in the U.S. — and that number is growing quickly.
The next step will be adding energy storage to homes, something that Tesla is leading on and that Vivint, Sunrun, and SunPower are all adding, as well. As energy storage is added, customers can use more of their own energy, making net metering less important and providing more flexibility for customers.
The holy grail for renewable energy is allowing customers to cut the cord to the utility altogether. We may be a decade from that being a reality, but the more utilities add fixed fees or demand charges, the more quickly the economics of cord-cutting will become compelling. Long-duration energy-storage technologies are already beginning to be deployed, and before long, a couple of Powerwalls and a long-duration energy-storage system may be a viable option for consumers, making utilities irrelevant.
Utilities are in a tough position, having incentives to apply policies that protect short-term profits but which may undermine long-term competitiveness. It’s clear that when push comes to shove, voters are willing to overturn utility policies, voting for solar energy across the country. That has to be a concern for utilities, and it shows that the future is getting brighter for solar energy companies providing the solutions customers want.
When Blue Mountain Renewables (BMR) began operating its 36-megawatt wind farm in Potsdam, St Elizabeth, a few months ago, the facility became Jamaica’s largest private-sector renewable energy project.
Minister of Science, Energy and Technology Dr Andrew Wheatley, who gave the keynote address at the official opening on August 11, pointed out that the wind farm would help to diversify the country’s energy matrix and ease the dependence on imported fossil fuels.
“The wind farm is expected to reduce greenhouse gases by about 66,000 tons of carbon dioxide equivalent per year, roughly equivalent to taking 13,000 cars off the road,” he informed.
Wheatley also applauded the relationship and assistance the company has given to the neighbouring schools, Munro College and Hampton High, as well as the treatment of farmers in St Elizabeth who were affected during the construction phase.
Principal of Hampton High Heather Murray said that she could literally see the ‘wind of change’ with the advent of the BMR wind project.
She bemoans the fact that nearly a quarter of her school’s budget is spent on high electricity cost, money that could be spent on building a state-of-the-art science laboratory.
“BMR brings hope and we welcome them wholeheartedly. We are also excited about the efforts to go green and we are doing our part here at Hampton. Earlier this year, we swapped all fluorescent light bulbs for more environmentally friendly LED bulbs,” Murray stated.
She also informed that Hampton had installed about 12 solar panels to integrate renewable energy into their electric supply. The panels, combined with small wind turbines on the campus, now provide about one-fifth of the school’s energy needs, she noted.
The BMR Jamaica Wind project will serve thousands of customers annually. Power will be sold to the Jamaica Public Service (JPS) Company, under a 20-year power-purchase agreement. This electricity is expected to be among the lowest cost sources of power available on the JPS system.
Jamaica currently relies on oil imports to meet 90 per cent of its energy needs. This leaves the country vulnerable to fluctuating oil prices, which can make it difficult to budget and plan effectively.
To ease the dependence, the country has set a target to generate 30 per cent of its energy from local renewable sources such as hydro, wind and solar power by 2030.
President of BMR Bruce Levy said construction of the project was made easier by the cooperation of the Potsdam residents and the appreciation they showed for the work being done in their community.
“We made sure there was significant benefit to the local and wider community, with billions of dollars of direct spending and employment of hundreds of Jamaicans during construction. We say, without any fear of contradiction, that we are committed to community development,” he said.
Levy informed that the wind farm was made possible through a US$62.7 million financing package, including a US$42.7 million loan from the Overseas Private Investment Corporation (OPIC); a US$10 million loan from the International Finance Corporation (IFC), and a US$10 million loan from the IFC-Canada Climate Change Programme. BMR Energy provided an equity investment of US$26.9 million.