panels

 

As we approach the fall and winter seasons it is important for solar clients to be aware that they will experience shorter days which means less sunlight. Less sunlight means less solar production for solar systems. So in order to avoid using too much back‐up power which is most likely JPS, it is very important to be conscious of your energy usage during these next few months, even more so with our delayed rainy season upon on us adding cloudiness to limited sun hours.

 

A solar system produces more energy in the summer months due to the sun being higher in the sky. In these winter months clients need to focus on demand shaping which means to use heavy energy appliances more in the day than night. Using these appliances while the sun  is  out  allows  the  batteries  to  be  recharged  while  providing  power  for  equipment. Therefore  scheduling  activities  such  as washing, ironing, fridge  cooling  and  electric oven usage  during  the  peak  sun  period  of  10a‐2p  is  crucial  for  allowing  batteries  to  receive enough charge for night usage.

 

Solar owners need to be mindful of ways to maximize the limited electricity generation that comes during this time of year. Clients need to be stingy with consumption. The nights are cooler so a fan might be sufficient instead of the AC or turn the temperature up a couple degrees on the AC unit. Change the most used outside/inside lights to LEDs where possible especially the ones left on for over four hours at a time. Owning a solar system makes you your own power company so it is crucial to plan out energy usage for the family, otherwise as consumption goes up so will the JPS bill.  A solar system can only offset what it was designed to offset so if your night time consumption increases then the system will switch to JPS earlier than predicted.

 

Solar Tips for the shorter sunlight time of year:

  • During the day use heavy energy consuming appliances in the course of peak sun hours of 10a‐2p.
  • During the night make sure you only use the necessary loads that are required. Turn off excessive lighting when not needed.
  • Adjust temperature on air conditions higher a couple degrees.
  • Disconnect ghost loads that  consume  power  even  when  off  as  long  as  they  are plugged in. A perfect example is that of a Television. Over a period of 24 hours, a plugged in TV consumes the same power as when it is ON for thirty minutes.
  • Replace all the high wattage bulbs with energy efficient ones such as LED in areas where these lights are used daily and/or nightly.

 

Jason Robinson
Chief Executive Officer
Solar Buzz Jamaica

 

Although Abengoa, the Spanish company selected as the preferred bidder to build a major power plant in Jamaica, has initiated steps that could lead to a bankruptcy declaration, Jamaica Public Service Company CEO Kelly Tomblin is not yet ready to call it quits on the multinational corporation.

Reacting to news of the bankruptcy proceedings initiated by Abengoa, Tomblin said she was monitoring the situation of the Spanish renewable-energy company.

It was only last week that JPS announced Abengoa as the preferred bidder to build the 190-megawatt combined-cycle plant in Old Harbour, St Catherine.

Despite fears that Abengoa may not be able to fulfil the requirements of the bid, given its precarious financial situation, Tomblin is holding out hope that the company will be able to make good on its financial obligations in relation to the bid.

“We have been monitoring the situation for some time. We have backup plans, but we have to wait and see what Abengoa shows us. But pot can’t call kettle black because JPS, as you know, has had its own financial difficulties, and we are just now emerging from those, so we know what it’s like, so we want to make sure that we don’t overreact,” Tomblin told The Gleaner last evening.

In the event that Abengoa folds completely, Kelly Tomblin pointed out that JPS has several alternatives.

“There are other vendors. We have many vendors who were poised to build the plant, so if, in fact, Abengoa can’t show, then other people can build the power plant. As you know, we have shareholders who have deep expertise, but we don’t want to jump the gun. Of course, Abengoa will have to give us financial assurance, but, again, pot can’t call the kettle black. It wasn’t very long ago that JPS, too, was facing insolvency problems,” she said.

Energy Minister Phillip Paulwell, in reacting to the news, said there was no need to panic and that JPS should be given the space to continue the procurement process.

When asked if the situation vindicates him in respect of the Energy World International (EWI) bid, Paulwell said, “There will be vindication when the gas is here because that, for me, is the most important aspect.”

Paulwell was in charge of overseeing the Government’s 391-megawatt project, which awarded a bid to EWI, a company which faced financial woes, leading to questions about its ability to deliver on the bid. This was before responsibility for the project was handed over to the Vin Lawrence-led enterprise team.

Now, with news of Abengoa’s bankruptcy filing, Jamaica’s renewable-energy plans may be delayed yet again.

Abengoa’s latest financial woes sent shockwaves through the banking sector and financial markets in Spain yesterday, fuelling concerns that the country’s lenders may be left with heavy losses.

According to international media reports, Abengoa has been having financial challenges from as far back as 2013, when Spain instituted energy reforms, which reduced subsidies to renewable-energy providers. This affected Abengoa’s capital base significantly and further exacerbated its pile-up of debt.

The Financial Times has said that a possible default by Abengoa could count as the largest bankruptcy in Spanish history, given that as of September, Abengoa carried gross debt of £8.9 billion.

The filing for preliminary creditor protection yesterday came after a potential investor cancelled plans to inject £350 million into the company.

While he could not comment on questions of whether due diligence was done on the Abengoa bid, Private Sector Organisation of Jamaica CEO Dennis Chung said news of the filing does not mean the company will go under, as bankruptcy proceedings often give a company an opportunity to rebuild.

“I couldn’t comment on due diligence. I have to believe that proper due diligence would have been done, so that question should be put to the person who actually did the due diligence,” Chung said.

 

The Gleaner

* Abengoa has 4 months to reach deal with creditors

* Shares plummet 54 pct, bonds virtually worthless

* Abengoa’s bankruptcy would be Spain’s largest on record (Adds Abengoa removed from Ibex, details on company)

MADRID, Nov 25 Spain’s Abengoa started insolvency proceedings on Wednesday after a potential investor said it would not inject fresh capital into the energy firm, sending its share price tumbling by 54 percent.

Under Spanish law, companies can enter into pre-insolvency proceedings, giving them up to four months to reach an agreement with creditors to avoid a full-blown insolvency process and a potential bankruptcy.

Failure by Abengoa to reach such a deal could lead to Spain’s largest bankruptcy on record. The company employs around 24,000 people worldwide.

Spanish and international banks’ total exposure to Abengoa stands at around 20.2 billion euros ($21.4 billion), including financing for projects, a source familiar with the matter said at the end of September.

The Seville-based engineering and renewable energy firm, which has biofuel and solar-heated power plants in the United States, has been struggling for a year with high debts but the situation became unsustainable in July. It first cut its 2015 targets and stepped up an asset sales plan on July 31, only to announce a share issue days later.

Since then, the company’s market value has tumbled by around 85 percent, hit by uncertainties over whether creditor banks would agree to back the issue.

The shares plummeted by 69 percent when trading resumed following a more than three-hour suspension on Wednesday morning. They closed down 54 percent, wiping out around 470 million euros in market value on the day.

The stock market operator said Abengoa would be removed from Spain’s blue-chip index Ibex as of Nov. 27.

Bonds also lost most of their value.

Abengoa earlier confirmed that Gonvarri, a unit of privately-held industrial group Gestamp, had backed away from a plan to inject around 350 million euros into the firm.

“The company will begin the negotiating process with its creditors with the aim to reach an accord to guarantee the financial viability under the Article 5 of the Bankruptcy act, which the company intends to request as soon as possible,” Abengoa said in a statement.

Abengoa has been trying to find new investors since early August, when it announced a 650 million euro rights issue of new shares to cut gross debt of some 8.9 billion euros.

Gonvarri’s interest was conditional on banks underwriting the issue and it had asked the banks to inject 1.5 billion euros in to the company, sources told Reuters late on Tuesday.

Earlier this month, Abengoa’s auditor Deloitte said the group faced significant risks and its future depended heavily on the proposed investment deal with Gonvarri.

https://solarbuzzjamaica.com/jps-announces-preferred-bidder-for-old-harbour-plant/

Reuters.com

 

WEST Texas intermediate benchmark pricing for crude was a low of US$42.63 per barrel yesterday and Wall Street analysts continue to predict a further slump into the new year. But the Bank of Jamaica (BOJ) is convinced otherwise.

The bank said in its latest quarterly monetary policy report (QMPR) that prices of international commodities, particularly crude oil, are projected to reflect some modest increases, starting in the December 2015 quarter, contributing to an increase in domestic inflation over the near term; a consequence of gradual improvement in global demand conditions as well as a reduction in shale production by the United States of America.

The BOJ indicates that it expects inflation to pick up in both the December 2015 and March 2016 quarters to end fiscal FY2015/16 within the target range of 5.5 per cent to 7.5 per cent, a forecast mainly based on a projected surge in food and oil prices.

Price declines in electricity and fuel resulted in deflation in energy and transport for the September 2015 quarter, largely reflecting the impact of the reduction in crude oil prices.

Headline inflation at the end of the September quarter fell to 1.8 per cent compared to 4.4 per cent at the end of the preceding quarter.

“The reduction largely reflected declines in the cost associated with energy and transport, while agriculture and processed foods prices increased at a slower pace,” the BOJ stated.

However, the BOJ thinks oil price increases will change the trajectory. It is the bank’s assessment that there will be an uptick in the price of crude oil in the last quarter of the fiscal year.

Additionally, year-end inflation will also be affected by prices of domestic agricultural commodities which the bank expects to increase in December due to the recent dry conditions.

Meanwhile, the bank is also predicting that inflation from agricultural commodities will be reduced in the latter part of the December 2015 quarter as drought conditions improve with concurrent price reversals in the March 2016 quarter.

Jamaica Observer

 

The Jamaica Public Service Company Limited (JPS) has announced the selection of Spanish firm Abengoa as the preferred bidder to build the 190 megawatt Combined Cycle plant in Old Harbor, St Catherine. 

The announcement follows the approval by the Electricity Sector Enterprise Team for the company to start negotiations with US-based New Fortress Energy for the supply of natural gas to the plant.

The JPS says once contracted, Abengoa will be responsible for the design, engineering and construction work on the plant.

It will be built close to company’s existing power station in Old Harbour Bay.

The JPS says it is in the process of procuring the necessary permits for the construction of the plant.

It says as part of its public education, it has shared the Environmental Impact Assessment on its website and will host a public consultation meeting next Tuesday in Old Harbour Bay.

The JPS says the gas terminal and the new gas-fired power plant will allow it to retire 220 megawatts of existing oil-fired steam generation units at Old Harbour and Hunts Bay in 2018.

It says this will ultimately result in a reduction of over 1.2 million barrels of oil per year and allow for power generation below 13 United States cents per kilowatt hours.

The Gleaner

Apple will power all its operations in Singapore—including its first retail location in there–with renewable energy. The iPhone maker confirmed to Reuters on Sunday (Nov. 15) that Singapore-based solar developer Sunseap Group will provide it with 100% renewable electricity from solar energy systems built atop more than 800 buildings.
The systems will generate 50 megawatts of solar energy, enough to power the equivalent of 9,000 homes. Apple will receive 33 MW of the new project’s capacity, according to Reuters.
The news is the latest in a string of Apple announcements about renewable energy. In October it announced it would build 200 MW of solar power in China and push suppliers to make similar commitments. That came on top of two previously announced solar farms in the country producing a combined 4 MW of power.
Earlier this year Apple said it was partnering with First Solar to build a massive farm of solar panels to power its upcoming “Campus 2” headquarters in California. The “spaceship campus” will be powered entirely by renewable energy sources, the company has said.

“We’re doing this because it’s right to do,” Tim Cook said at the time to an audience at a Goldman Sachs event. “But you may also be interested to know that it’s good financially to do it.”
In any case, Apple can afford to make investments in renewable energy, however long they take to pay off.

Surprisingly, Apple does not yet have a retail store in Singapore, a major shopping hub in Southeast Asia. The city-state gets hordes of shoppers from nearby countries, especially Indonesia, the world’s fourth most populous nation. This year, Jakarta alone will send Singapore some 1.7 million visitors, who will spend about $2.7 billion, according to the MasterCard 2015 Global Destination Cities Index.
Apple products in Singapore are currently sold through third-party retailers, mobile carriers, and its online store. The company did not disclose the exact location of the upcoming store, but the Straits Times reported last month on a fitness chain moving out of a prime spot on Orchard Road—Singapore’s leafy, mall-lined shopping mecca—to “make way for Singapore’s first Apple store in 2016.”

 

Quartz

The Office of Utilities Regulation (OUR) has announced that it no longer has responsibility for the Net Billing Programme.

The net-billing system, which was introduced in 2012, allows persons who own renewable energy generators to generate electricity for personal use, and sell excess energy to the national grid.

This process was being led by the OUR.

However, the OUR said the deletion of Condition 18 of the Amended and Restated All-Island Electric Licence and the provisions in the Electricity Act, 2015, which came into effect in August, means that it no longer has authority to lawfully engage in the addition of generating capacity to the national grid.

 

ELECTRICITY ACT

 

It said Section 9 (2) of the Electricity Act specifically excludes the OUR’s involvement in accepting applications and making recommendations to the minister of science, technology, energy and mining for licences.

The OUR said that section provides that the minister has exclusive authority over the issuing of licences.

The OUR said that as a result, it cannot lawfully assume responsibility for the licensing process and, therefore, it considers its substantive role in the Net Billing Programme at an end.

The Gleaner

Head of the Electricity Sector Enterprise Team (ESET) Dr Vin Lawrence says there was a vast number of credible bids that were put forward for the supply of natural gas to the new power plant to be built by Jamaica Public Service Company (JPS).

New Fortress Energy, the same entity which won the bid to supply gas to the Bogue power plant in Montego Bay, has been selected as the entity to supply LNG to the new plant, on which construction is expected to begin by the second quarter of next year. The arrangement will see New Fortress installing the facilities to receive, store and re-gas the fuel for use at the new 190-megawatt gas-fired plant at Old Harbour.

“Six entities submitted 16 variations of proposals and we were quite delighted at this because we have gone through 15-20 years of attempting to get LNG to Jamaica without much success, and on this RFP, we have had six credible entities submitting 16 variations of supply proposals,” Lawrence said.

The ESET chair, who was addressing a Jamaica House press briefing at the Office of the Prime Minister yesterday, also announced that the JPS has selected Spanish firm Abengoa to construct the new plant.

Lawrence said the agreement is for New Fortress Energy to build a terminal and supply the JPS with 200,000 metric tonnes of LNG per annum. New Fortress Energy will build, own and operate the plant which Lawrence said must be expandable.

 

In Ja’s Best Interest

 

The company will spend more than $200 million on the terminal, which is expected to be constructed at Rocky Point, Clarendon.

“We have been trying for 20 years to bring natural gas to Jamaica, and so, we believe it is also in our interest that we have a terminal facility that can expand and grow,” he said.

The gas plant is due to be finished by the fourth quarter of 2017 and the power plant is due to be ready at the beginning of 2018.

With Jamalco indicating that it is reviewing its decision on whether it will go ahead with the building of a coal plant or switch its plans to using natural gas, Lawrence said the demand for LNG could be about 500,000 metric tonnes per year.

 

Schedule Not Affected

 

Lawrence said the bauxite-producing company is being allowed another two to three weeks to “have discussions with the possible gas supplier for a final decision to be taken”.

“This period will not affect the scheduling that we had proposed for Jamalco. If they shift to gas, we would have a two-year rather than a three-year construction period and the capital cost would be significantly less,” Lawrence added.

The new building of the JPS power plant represents part of an effort to lower electricity costs on the island. The plant will replace 292 megawatts of heavy fuel oil power plant at Old Harbour in St Catherine, and will be combined with energy from renewable sources and cogeneration facilities from Pan-Caribbean Sugar Company and bauxite companies.

The final electricity price to the grid will be less than US$0.13 cents per kWh, the ESET head said, which would mean at least a 30 per cent cut in light bills.

Lawrence said Jamaica has been looking at getting one million metric tonnes per year, and that New Fortress Energy is expected to construct a terminal that can supply the 200,000 metric tonnes that the JPS requires.

He said the demand for LNG from other sources would determine how quickly the facility is expanded.

Technical assistance was provided by the Galway Group and Hatch Mott McDonald, two reputable international firms.

Critical issues such as the security of supply, capability of delivering the project, ability to expand the terminal, ability to meet the power plant schedule, and a commitment to achieve a timely financial close were considered in selecting New Fortress Energy as the preferred bidder.

The Gleaner

 

 

 

POTENTIAL home owners in search of environmentally friendly surroundings have just got lucky.

Developers of what is being touted as Jamaica’s “first green residential community” last week broke ground for the construction of 114 energy-efficient homes in Greendale, St Catherine, called Green Village.

Project manager Paul Soegaard told the Jamaica Observer that the phased development will begin later this month and is expected to cost roughly $1 billion. He added that the developers are looking to employ up to 200 individuals to complete the project.

The gated community features 48 two-bedroom single-family homes, 24 two-bedroom apartments and 42 super studio apartments, spanning roughly 930, 717 and 475 square feet respectively.

Starting at $7.9 million, the complex is located a few metres before entering Spanish Town and is overlooked by the well established residential community, St Jago Heights. Amenities of the community include a swimming pool, clubhouse, BBQ and green area and a play area.

The development is a joint financing project with the National Housing Trust and the Green Village Country Club developers.

“Under a short- to medium-term housing programme developed by the NHT, some 9,000 housing solutions will be funded by the Trust over the next two years to enable thousands of families to realise their dream of owning a home,” the NHT stated in a release to the public.

The government agency hopes to boost the housing solutions available to contributors and noted that some 42 housing solutions are currently buimg built across the island. Of that number, St Catherine has a total of 11 developments including the Green Village, followed by Clarendon and Kingston and St Andrew, which each have seven developments.

“It’s driven by fundamentals,” Soegaard told the Sunday Finance. “First of all, attainable lands are not easy to find these days and this development is really the closest to Kingston. That’s the main driver.

“We were lucky enough to own these lands for a number of years, and with the demand for housing we just decided to build the first green housing development in Jamaica. There is great demand for housing coming out of the Kingston area, spilling all the way over to Old Harbour as annual surveys by the NHT indicates.

“The connection to the Green Village in Greendale, St Catherine, is by coincidence, our name is driven by best practices and building strategies, but I think they complement each other,” the project manager stated.

Green Village is designed to be energy-efficient and includes features such as solar water heaters, water and energy-reducing features for faucets and toilets. The development is also designed to take advantage of passive energy and natural light instead of purchased electricity or natural gas.

“It means that the houses are built of aerated concrete to foster cooler homes than the traditional ones and designed so that you can get a lot of sunlight without the rays passing through,” Soegaard explained.

The architectural design of the complex also provides for renewable energy-powered street lighting, Bahamas sun shades which also function as hurricane shutters and burglar bars, biodigester and reed bed sewage treatment plants which give a much higher level of treatment than septic tanks, storm water retention, grey water recycling, and xeriscaping — the practice of landscaping the common area with plants that use little to no water.

With regards to further expansion, Soegaard says there are plans underway for the development of a second phase based on sales demand.

“It’s dependent on a number of factors, but we have the option to do a phase two — though nothing is confirmed at this point,” he said.

BY KARENA BENNETT

 

The Observer

 

HERO BX, one of the largest biodiesel producers in the US, is currently exploring possibilities to develop Jamaica’s first commercialscale biodiesel plant.

The firm’s representatives have been visiting the island since Jampro’s “Jamaica Investment Forum” earlier this year, and have been meeting with various government and private sector stakeholders with serious interest in confirming the project.

The plant would boost Jamaica’s renewable energy programme and would also impact a number of industries, since biodiesel uses feedstock such as waste oils from the hospitality industry and plant feedstock from the agricultural industry.

The investment would also be a significant source of employment and could empower the Government to benefit from the sale of biodiesel produced here on the island, which would operate as the hub of HERO BX’s Caribbean operations.

HERO BX produces 50 million gallons of fuel per year from multiple raw materials and has achieved the highest quality accreditation available. The company is investigating expanding into the Caribbean region, as the growing global renewable energy market is estimated to grow to US$614.92 billion by the end of 2015.

Glen F Garth, executive vice-president of US consulting firm Garth Solutions Inc, and representative of HERO BX, stated that Jamaica has received top billing for the development of the plant due to the country’s strategic location, amongst other factors.

“The location of Jamaica strategically in the Caribbean basin, the access to a quality, educated labour force, the access to all of the benefits that are available due to commitments made by the Jamaican government to encourage foreign direct investment, are all factors.

Those attributes are what first attracted our attention and have further strengthened our interest in establishing a biodiesel hub in Jamaica.” Garth also commended the country’s strong national energy policy and renewable energy sub-policy, saying those components were seen as favourable, and increased the company’s interest in Jamaica.

Minister of Industry, Investment and Commerce Anthony Hylton noted that Jamaica continues to receive more investment interest.

“This robust investment climate and investment in a variety of sectors in the economy is the result of work across Government to improve the business environment, facilitate economic growth and create opportunities for job creation,” Hylton said.

Jampro President Diane Edwards is pleased that the country’s strides to promote its renewable energy strategy have been bearing fruit. She stated that following on the Ministry of Industry, Investment and Commerce’s mandate, the agency has been campaigning for more investments in newer sectors to diversify Jamaica’s economy.

“We are seeing more interest in sectors such as energy and technology as the Government makes moves to improve the business atmosphere and the country’s readiness for investments. Jampro will monitor the progress of this and other projects closely as we try to bring more significant, sustainable investments to Jamaica,” she said.

 

The Observer