Tag: Jamaica Public Service Company

Outgoing JPS President Kelly Tomblin.

Power utility Jamaica Public Service Company (JPS) plans to build a 24.5-megawatt facility to store energy as a safeguard against power outages.

It’s described as the first of its kind in the Caribbean.

JPS plans to build the facility next year, but no cost was disclosed up to press time. It will act like a giant battery that charges when solar- or wind-energy plants generate energy. It then kicks into action, the less power these renewable plants generate due to cloud cover or low wind speeds.

“The proposed initiative will allow JPS to provide a high-speed response when the output from renewables is suddenly reduced to mitigate stability and power quality issues that cause outages to customers,” stated JPS in a release.

The company did not respond immediately to questions seeking more details. It initially said the release, which appeared on the Jamaica Stock Exchange’s website, was not meant to be made public until Monday.

Peak energy usage in Jamaica starts at 6.30 p.m. to 9.30 p.m, which represents a leisure peak, rather than an economic development peak. That becomes important as solar plants reduce power generation just as the peak period starts.

PROVIDING VALUE

Additionally, wind farms optimally generate power at nights but after peak periods. The storage facility would, therefore, provide value as it comes into effect at peak periods utilising the power already stored.

The facility requires regulatory approval from the Office of Utilities Regulation (OUR) but in anticipation, the JPS board of directors last week signed off on the hybrid energy storage solution, the release stated. The project involves construction of a 24.5MW facility at the Hunts Bay Power Plant Substation, and will be a combination of high-speed and low-speed flywheels and containerised lithium-ion batteries. Once approved for construction, it would become operational by the third quarter of 2018.

“The innovation will help to secure grid stability and reliability in the face of increasing intermittent renewable energy. The energy storage solution will have power readily available in the event that solar and wind renewable systems, suddenly lose power due to cloud cover, reduced wind or other interruptions,” stated the release.

It will also provide a much faster, cost effective and environmentally friendly spinning reserve or backup as an alternative to traditional generation spinning reserve which is required by the company.

INCREASED FLEXIBILITY

Additionally, the JPS is seeking to convert more generating units to use liquefied natural gas (LNG). This will result in increased flexibility of the generating units, as the JPS moves to ensure that customers have a more reliable, affordable and sustainable quality service. JPS continues to steadily diversify from solely heavy oil fuel to include natural gas and some 115MW of renewables.

Energy efficiency is now an integral part of JPS’ push to become a more modern and cleaner energy provider.

Jamaica has an energy intensity of approximately 4,800 kilowatt-hours (kWh) per US$1,000 of gross domestic product. To put that into perspective, last December outgoing JPS president Kelly Tomblin described it as one of the highest in Latin America and the Caribbean. She indicated that such inefficient use of energy constrains Jamaica’s growth.

The country, however, has made some gains in its efficiency drive. It ranked 92nd in the World Economic Forum’s Global Energy Architecture Performance Index Report 2017, up from 98 the year before.

The rise in rank was attributed to the 80MW of renewables added in 2016 and plans for an additional 100MW of renewable this year.

In Jamaica last year, Wigton Wind Farm III added 24MW of renewable capacity, BMR Windfarm added 36.3MW, and WRB Content Solar, 20MW. The country saved around US$18 million (J$2.3 billion) in oil imports based on the 80MW renewable energy projects.

Concurrently, those renewable projects saved 800,000 metric tonnes in toxic carbon emissions, according to the energy ministry.

The April 17, 2016, islandwide power outage cost the Jamaican economy $340 million in losses, stated consultant with the Office of Utilities Regulation Valentine Fagan.

He pointed out that the poor decisions made by the Jamaica Public Service Company (JPS), which resulted in the widespread power failure, had an economic cost that the country cannot afford.

Fagan’s comments came during a meeting of the Economy and Production Committee of Parliament yesterday where the parliamentary body urged the Ministry of Science, Energy and Technology to expedite plans to craft a scheme of fines for imposition on the JPS in cases where the country is plunged into darkness as a result of major system failures.

PENALTY SCHEME

Director General of the Office of Utilities Regulation (OUR) Ansord Hewett told members of the parliamentary committee that the Electricity Act of 2015 provides for a scheme of penalty, which can be enforced in a court of law, but the process could take an inordinately long period to resolve.

However, he said that there is an option to establish a scheme of penalties where the JPS agrees to paying a fine when it breaches certain service requirements.

Hewett said that the OUR has been pushing the ministry to get that arrangement in place, which would provide the regulatory body with an additional tool to impose sanctions if necessary.

The committee was discussing the OUR report on the JPS’s major system failure, which left most parishes without power for several hours on April 17, 2016.

Committee member Fitz Jackson suggested that the penalties sufficiently high to discourage breaches.

“I expect that the fines will be of sufficient magnitude to discourage any breaches,” he insisted.

Hewitt said that the ministry indicated recently that it would shortly be sending the OUR a proposal on the scheme of sanctions for it to review.

Committee chairman Anthony Hylton told his colleagues that in a situation where the JPS holds a monopoly, fines to regulate conduct becomes even more important. Commenting on proposals for penalties and fines to be imposed on the JPS, Sam Davis, head of government and regulatory affairs at the JPS, told the committee that the company did not intend to wait on sanctions to make appropriate decisions and take actions in relation to improved service to customers.

Gleaner

Tomblin admits stemming the problem her toughest task

Jamaica Public Service President and CEO Kelly Tomblin admitting that the company’s decision to cut electricity supply to some communities, because of non-payment, pained her.

Kelly Tomblin didn’t hesitate when she admitted that the greatest challenge she faced in her five years at Jamaica Public Service Company Limited (JPS) was electricity theft.In fact, the power company’s president and CEO, who is leaving next month, managed a chuckle as she spoke about the problem that has plagued her company for decades.

“You know, it is really hard to deal with the amount of electricity theft in Jamaica, it’s really hard,” she told the Jamaica Observer with a heavy sigh.

“We estimate about 180,000 homes, that’s about a million people”, who are benefiting from electricity theft, Tomblin said in an interview at her office last Wednesday.

Frustrated by the level and persistence of the theft, JPS, in January this year, said it was ready to name, shame, and prosecute offenders — a 180-degree turn in its policy of declining to take legal action against electricity thieves who, Tomblin had disclosed last year, were costing the company US$2 million per month.

“We now strongly believe that if we do not prosecute, name and shame, we cannot win. We will therefore be working more closely with the police to make arrests and prosecution a major part of our anti-theft strategy going forward,” JPS’s Director of Revenue Security Major George Kates wrote in the company’s Energy Matters column published in the Observer in January.

But even amidst the hard approach Tomblin has empathy for Jamaicans, who she believes are unable to pay for the utility.

“My heart’s torn because you have people who absolutely cannot pay,” she lamented last Wednesday. Her pain, she said, got worse when the company took a decision to cut electricity to communities where theft was more than 80 per cent.

“That’s the one that leaves me with the most pain… that one moment of turning the power off,” she admitted.

“We can’t keep giving power to these communities and make other people pay. That was a defining moment for us, because I think we said we just cannot take this any more,” Tomblin told the Sunday Observer.

“We did cut off people, and we had a cease-and-desist order from the OUR (Office of Utilities Regulation) and public outrage, but for us it’s just like it comes to a point where you have to say the situation is not being addressed,” Tomblin explained.

Although electricity theft is now a crime punishable by a heavy fine and/or five years in prison, JPS has been working with communities to halt the practice.

That effort, Tomblin said, started under an agreement with the previous Government for a community renewal programme which involves the installation of prepaid meters.

The programme was implemented in 10 communities and appears to be working well.

“One of the things I’m proud of is, I was just in Majesty Gardens — where we have community representatives who are helping people get power,” Tomblin said.

“I’m excited because these last few months we’ve seen losses go down. We’re happy we’re seeing a downward trend, the first time in a long time. This is the best performance we’re seeing in four years,” she added.

The improvement, while not yet in double figures, is significant as, according to Winsome Callum, director, corporate communications, the company actually saw a stabilisation of the losses before the movement south.

“It was a big thing just to keep it from going up,” said Callum, who sat in on the interview.

She attributed the development to a combination of strategies. “We continue to pull down [illegal connections], but we also continue to do a lot more with technology,” Callum explained.

In 2015, JPS took down 205,300 throw-ups — basically crude, illegal connections found mostly in depressed communities — and arrested 783 people for electricity theft that resulted in a loss of US$18.8 million to the company.

The power company continues to argue that it cannot solve the problem alone; the responsibility needs to be shared by political representatives who have influence over large numbers of people, as well as law-abiding Jamaicans.

“Can you imagine what a culture change it would be if people really got legitimate electricity throughout Jamaica?” Tomblin asked.

Jamaica Observer

Kelly Tomblin, who has been the face of the Jamaica Public Service Company (JPS) since she joined the light and power company as president and chief executive officer in 2012, is on her way out of the company, and heading to take up the CEO position at the United States-based power company, INTREN, effective July 10.

Tomblin will take over the day-to-day running of the firm from Loretta Rosenmayer, the firm’s founder and current CEO, who will now chair the board of what has become one of the leading utility contractors in North America.

Up to press time, Tomblin was off the island and unavailable for a comment. However, 4-traders.com, a reputable international stock market and financial news website, said Tomblin had confirmed to them that she is to be the new CEO at INTREN.

“INTREN would not be what it is today without Loretta’s vision, leadership and unwavering commitment to high standards and values,” Tomblin was quoted by the website as saying. “I am honoured to lead the INTREN team and continue the progress evolving before me.”

According to reports, Tomblin was selected from a competitive selection process from a strong field of candidates.

“She is a highly impressive and respected executive known for her ability to build diverse, meaningful cultures in a collaborative leadership style. As a recipient of the prestigious 2016 Platt’s Global Energy CEO of the Year Award, Kelly topped an impressive list of finalists leading companies in the United States and around the world,” the website stated.

ENERGY SAVING PROJECTS

During her time at JPS, Tomblin introduced several energy saving projects, as well as the use of liquefied natural gas in the country’s energy mix, even as she guided the light and power company through a profound transformation.

“This evolution comes at an extraordinary time for INTREN,” a report quoted Rosenmayer as saying. “Our momentum is strong, and our management team and employees have built an exceptional company that is one of the most trusted and respected in the industry. I’m confident Kelly is ideally positioned for her new role to continue our growth.”

INTREN has been an innovative solution partner, dedicated to building and maintaining the infrastructure of the energy industry for more than 25 years, and has served many of the nation’s foremost utility companies, private contractors and developers, and municipalities and cooperatives.

Gleaner

From left: Renford Smith, Marcus Grant and Alan Searchwell connecting the electrical components of a solar panel at the Wigton Renewable Energy Training Lab in Rose Hill, Manchester, recently.

As the debate intensifies over the possible rate increases which could face Jamaicans as more and more customers leave the Jamaica Public Service Company’s (JPS) grid, there are calls for a collaborative approach to the issue.

Manager of the Grid Performance Department at the JPS, Lincoy Small, says the various stakeholders must engage in dialogue to find an approach to provide the cheapest source of electricity to Jamaicans.

According to Small, it cannot be a matter of either renewable energy (RE) or staying on the JPS grid but a combination of the two.

“JPS is not telling people that renewable is not the way to go, because JPS even operates renewable facilities, but the key thing is to get them (grid and RE) working together in tandem to come up with the best synergy of what is best for the customer and what is best for the country,” said Small.

His comments came as Robert Wright, president of the Jamaica Solar Energy Association, told The Sunday Gleaner he has no desire for Jamaicans to leave the JPS grid.

Grid Stability

Wright said he strongly believes RE should be maximised and not just limited to large systems scattered across the island, but smaller systems distributed right across the country.

“When you have these smaller systems spread across the country it provides for better grid stability, and also it allows for more people to participate in clean energy as opposed to simply relying on large solar farms,” said Wright.

But Small said, based on experience due to the unpredictability of RE, the JPS sometimes has to resort to load shedding when customers jump on and off the grid.

He reiterated that JPS’s customers could face additional cost if the impact of RE on the grid is not handled carefully.

“So we are accepting solar power from the customers and as soon as something happens it drops off, and does so much quicker than the grid can even respond on some of those occasions, and as a result you have to be running expensive machines that are quicker to deal with those sun drop-offs or have to shed people’s light,” argued Small.

“And if you run these expensive machines or shed people’s light it means the overall cost to run the grid is going to be absorbed by the customer; you are going to have to pay for a more expensive energy source.”

The JPS executive said the company is actively seeking to incorporate new technology to deal with the loss of the intermittent renewable resources.

But Wright argued that the good news for Jamaicans is that the cost of RE is declining rapidly, enabling it to compete with traditional sources of energy.

“A system that a typical household would need in Jamaica two years ago would cost $1 million; that same system today cost $500,000, so we have seen a significant drop in prices,” said Wright.

“Also what is revolutionary is that the cost of batteries has gone down a lot, so now, even more than before, we will be able to offer that to residential customers at an affordable price.

“What is becoming more available now are systems called micro-inverters, and these allow you to install a very simple rooftop system which is cheaper, faster to install and is more appropriate for affordable housing developments, and so on.”

Batteries Expensive

But Small countered that with solar and wind on average only available for 20 and 35 per cent of the day, respectively, and the cost of buying and replacing batteries being expensive, it might be cheaper for customers to get their power from the JPS grid when RE is not available.

“It (solar) is a good thing to have, but it cannot be operated in isolation, and that is something a lot of people in the solar business not telling their customers,” said Small.

“Because even if you get a panel or a wind turbine and you get the battery, you are going to need a grid to at least charge up that battery for the 80 per cent of the time you are without solar or the 65 per cent of the time you are without wind.

“Plus, you will have to be replacing the battery every two to three years for full value, and batteries cost much more than solar panels.”

Small said the JPS is focused on supplying power as cheaply as possible so persons can take the cheap power from the grid rather than go buy a battery and use the solar power and the wind when it is available.

With Jamaica being a signatory to the Paris Climate Change Agreement, the utilisation of more RE forms part of the National Energy Policy which sees the country aiming to have 30 per cent RE penetration by 2030.

The country is currently at approximately 10 per cent of the quota, with roughly 300 net billing customers (those who have solar systems which allows them to consume energy and sell surplus) and around 10 larger customers.

Gleaner

KellyTomblinL20120417RB

For full article with audio clips click here

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.

Nationwide

Solar Plant

For full article with interview  clips click here

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.

Nationwide

A field of photovoltaic solar panels providing alternative to the supply from the JPS.

With many local entities turning to solar systems or other renewable systems to reduce their reliance on more expensive energy supplied by the Jamaica Public Service Company (JPS), there is a another indication that persons who remain on the JPS grid could face the consequences.

“We all should be concerned and thoughtful. You don’t want everybody who can afford solar on their roof going off the grid because you would still have to pay for the grid,” CEO of the JPS, Kelly Tomblin, told The Sunday Gleaner during a recent interview.

“How do we take care of a particular company so that we also take care of the whole? How do we find a way to make it affordable for everybody and don’t just let people cherry-pick off the grid?” added Tomblin.

There is no official registry of the amount of renewable energy being utilised on the island, but it is estimated that approximately 35 megawatts of renewable energy has been installed between residential and business customers in recent years.

The target is to have 20 per cent of the country’s energy need being supplied by renewable sources by 2018, moving to 30 per cent by 2030.

Energy Sales

The JPS has recorded four years of decline in energy sales from 2010 to 2014, but has seen a turnaround in the last two years with a two per cent increase in 2015 and a four per cent increase in 2016.

“This could be due to the fact that the cost of electricity to customers has dropped by about 25 per cent over that time (usage tends to increase when the price of electricity is lower),” the JPS said in an emailed response to questions from our news team.

According to the JPS, while it has not yet seen any revenue fallout from renewable energy installations, it recognises “that energy sales could have been higher if some customers had not gone off the grid”.

If more paying customers move to renewables and leave the JPS, the company will be selling to a smaller group of paying customers and could be forced to find alternative ways to remain profitable, which could see electricity cost increase for some customers.

If Top Customers Left

Tomblin admitted that if the company’s top 50 customers were all to leave the grid it would cause a serious problem, but she argued that she is confident that these companies are cognisant of their responsibility to the Jamaican people.

“I am really encouraged, having been in meetings with our top 50 customers, and we are having a lot of meetings with the Private Sector Organisation of Jamaica (PSOJ) and the Energy Committee to say how we can balance personal and country interest,” said Tomblin.

“People who are adding solar are doing so during the day; that is not when Jamaica has a peak. So unless they have storage we have to maintain the same power plant and the same grid, because they come on the JPS system at nights, so they still have to pay and, therefore, it is not that much of an impact to the system,” said Tomblin.

But PSOJ President Paul Scott said the decision to remain on the grid or not is one entities will have to decide based on what is best for their business.

“I am aware of some members who have not come off the grid because of the impact it might have on residential users, while other members have come off the grid,” said Scott, who is a member of the Electricity Sector Enterprise Team.

“So one must make their own economic decision based upon their own situation. Serious companies would take that (impact on residential users) into consideration. I would encourage our members to make decisions that will impact the overall competitiveness of Jamaica. Different industries have different utility requirements and therefore, you can’t generalise.”

According to Scott, the use of the grid will change over time, as PSOJ members, and the private sector as a whole, are always going to calculate the cost of energy as a significant part of their business.

In this November 2016 photo, co-chairman of Fortress Wes Edens (left) poses with Prime Minister of Jamaica Andrew Holness and President & CEO of the Jamaica Public Service Company (JPSCo) Kelly Tomblin at the offcial commissioning of the JPS LNG plant at Bogue in Montego Bay.

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.

EXCITED ABOUT DEAL

“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.

Gleaner

A JPS workman installs power lines in the Springfield housing development in Clarendon on August 17, 2016. The Jamaican Government plans to divest its near 20 per cent holdings in the power utility.
Opposition spokesman on mining and energy, Phillip Paulwell, says if the Government divests its nearly 20 per cent stake in Jamaica Public Service Company (JPS) at this time, the asset would fetch the least possible value.

However, Dennis Chung, the chief executive officer of the Private Sector Organisation of Jamaica (PSOJ), says if Government wants to divest its shares in JPS it might make sense, noting the valuation of the shares would be based on future prospects of the business.

Governor General Sir Patrick Allen, delivering the Throne Speech in Parliament on February 9, said the Government will this year begin the process of privatising its minority shareholding in JPS.

“The Government will take steps to ensure that there is broad retail and institutional participation and Jamaican owners in the divestment process,” he said, adding that an enterprise team will be appointed to lead it.

JPS is primarily owned by Marubeni of Japan and Korea East West Power Company, each of which holds 40 per cent interest.

Paulwell said the Government’s expressed plan to offload its shares in the power utility “doesn’t mean it’s going to happen as we have seen from last year’s Throne Speech”.

Notwithstanding that, “I am opposed to the divestment of the shares at this time because we would get the least possible value on those assets in JPS, largely because everybody is aware that 290 megawatt of JPSCo capacity will become scrap metal in a matter of time when the new 190MW plant is established.”

The 190MW plant to which he referred is the proposed gas-fired power station at Old Harbour Bay, St Catherine, on which construction is slated to start in early March.

“For me, the Government should participate in the new 190 (megawatt) plant which will preserve and enhance its value, and after that plant has been established, that’s the time you can think about selling the shares,” Paulwell told the Financial Gleaner.

$2-billion debt

“If you were to sell the shares now, we would end up not getting much because we owe JPSCo so much money now; so nothing will go to the government’s coffers, because any money we make from the sale will have to go and clear our debt with JPS,” he said.

He noted that the Government currently owes the JPS more than $2 billion in bills, including for street lighting.

“So if it were to sell the shares now it will be at a depressed value. The net effect would not mean anything coming into Government’s coffers,” said the energy spokesman.

What the Government needs to do is to participate fully in construction of the 190-megawatt plant, Paulwell said. “It will cost them about US$20 million in equity,” he said, noting that for that plant, the JPS has a 20-year power purchase agreement which guarantees that project a significant rate of return on the investment for 20 years.

“That is one of the safest investments you could make. Why would the Government not be a part of that? And at that time it could contemplate on how to dispose of its shares,” said Paulwell.

“And, in any event, if it’s going to do that, the Jamaican people must be the people to whom those shares are sold,” he said.

Chung indicated that in making the decision to divest its shares in JPS, the Government must know what is happening.

He said he did not see it as a big deal to divest the shares and make Jamaicans a part of the ownership.

Referring to Paulwell’s opposition to the sale at this time, Chung noted that valuation of the shares would be done based on what is expected in terms of business.

“If you know, for example, that you have a contract to sell twice what you sold this year, then you can build that knowledge into the valuation,” he said, adding that the valuation would also be based on future prospects.

He noted that shares are traded at a price-earnings ratio and sometimes can be valued at many times more than the book value of an entity.

“So it’s based on information that people have,” he said, adding that if investors believe they are going to make a killing “out of this thing, going forward, then you value the shares accordingly”.

Gleaner