jrobinson, Author at SolarBuzz Jamaica

10 solar, storage and energy predictions for 2024

March 11, 2024 jrobinson

By Barry Cinnamon | January 2, 2024

I’ve added electrification predictions for 2024 to my customary set of solar and storage predictions. Electrification incentives in the Inflation Reduction Act (IRA) are already starting to drive demand for heat pumps and electrical upgrades, just as tax credits accelerated the solar and EV markets in the past. My better half pointed out that 2024 predictions are much tougher than 2023 recaps. Nevertheless, here I go sticking my neck out again with these 10 predictions for 2024.

1. EVs will be equipped with integrated 240-volt generators

More EV manufacturers will follow Ford’s and Tesla’s lead with integrated 240-volt generators in their vehicles. These generators will enable owners to use those huge batteries on wheels to power their home, both for ordinary daily use as well as during increasingly frequent blackouts. Clever drivers will learn to charge their vehicles inexpensively during the day, and then use their vehicle’s batteries to power their homes during peak electric times during the evening.

2. Heat pump sales will surge by 25%

Heat pump HVAC and water heater system sales will surge by 25% in 2024, limited only by equipment supplies and contractor resources. Even though IRA rebates for these systems are still not available due to DOE and state energy office delays, customers are buying because of the market awareness created by the IRA. Customers are taking advantage of currently available tax credits and local incentives for this equipment — which in some cases cover more than half the total installation cost.

3. Fewer than half of new clean energy manufacturing plants will be completed

The IRA provides strong incentives for EVs, solar, storage and heat pump manufacturing in the United States. However, rules for applying these incentives to both manufacturing facilities and projects are complicated. Although there have been over 60 manufacturing plants announced, fewer than half will actually go into full-scale production once the incentive and supply chain details are understood.

4. Utilities in other states will follow California’s lead to end net metering

Credit: Titan Solar Power

The end of net metering in California will energize utilities in other states to limit the growth of rooftop solar and storage. The dirty secret is that utilities are permitted to use ratepayer funds to influence state politicians to eliminate competition from rooftop solar – and basically enforce their monopoly. Laws to restrict utility lobbying are uniquely difficult to pass since utilities spend tens of millions of dollars to lobby against these same laws.

5. Residential solar revenues in California will plunge by 50%

Residential rooftop solar revenues in California will plunge by 50% in 2024 compared to 2023. Even though California electric rates continue to increase at over 10% per year, the state is unlikely to recover its solar leadership position until net-metering policies are restored. Customer rage from skyrocketing electric bills and the end of NEM will backfire on politicians who accepted millions in contributions from utility interests over the past six years. Relying on the utility gravy train to get re-elected will no longer work for politicians once voters link their electric bills with the lobbying money their state representatives raked in.

6. A national-scale solar installation company will file for bankruptcy

Continued financial losses at national-scale solar installation and finance companies will result in at least one high-profile bankruptcy. The finance business model for large-scale residential solar companies is very sensitive to interest rates. Solar finance companies borrow money for PPAs and leases for relatively short terms to fund their growth and then get paid back over the much longer term of the PPA or lease. When interest rates spiked, they were not able to maintain their profits due to lower revenue and higher borrowing costs. Interest rates will decline significantly in 2025 at which time the solar finance market will bounce back, especially since average electric rates will be higher and equipment costs will be lower.

7. Tesla will claw its way into the U.S. inverter business

The inverter duopoly of SolarEdge and Enphase will turn into a tri-opoly (new word, not the board game) with the entrance of Tesla’s hybrid string inverter. Tesla will muscle into the inverter business with the combination of its brand name advantage and lower system costs – even though the performance of their systems will be lower without module-level electronics.

8. VPPs and V2G will not gain traction

Utility-sponsored tests of virtual power plants (VPPs) and vehicle-to-grid (V2G) will continue but will not gain traction without large customer incentives. The underlying friction of these business models is that utilities are unwilling to compensate customers for the full value of the battery systems – for the simple reason that utilities generate higher profits if these battery assets are owned by the utility itself rather than the customers. The paltry amount of money that utilities are willing to pay for customer-sited resources is insufficient to cover customer costs of their batteries, not to mention installer, manufacturer and aggregator costs to support these systems.

9. The residential battery system business will consolidate

The crowded residential battery system business will consolidate down to four national-scale players. Batteries by themselves are relatively inexpensive. On the other hand, releasing a complete and fully UL-approved battery and software system is expensive. But that’s just the beginning — building out a national sales and service organization costs a fortune. New battery system entrants — without the investment and army of people that it takes to support customers — will not succeed.

10. It’s game-over for fossil fuels

COP28 showed the world that it is “game over” for fossil fuels. Economics is the simple reason for this transition, although it will take another generation for the transition to be completed. Energy from solar and wind is already much less expensive than fossil fuels. These renewable energy sources are being deployed at an accelerating rate, while at the same time technologies that clean up fossil fuel emissions — such as carbon sequestration and storage, and direct air capture — struggle to pencil out economically. Despite the billions of dollars that fossil fuel companies spend to extend their businesses and continue to pollute, they are destined to become extinct just as their dinosaur ancestors.

Solar Power World

Alternative Energy Energy Saving News Renewable Energy

Wigton stock buffeted in heavy trading ahead of ownership cap removal

March 11, 2024 jrobinson

Wigton Windfarm Limited will remove its 10 per cent cap on individual ownership in two months, but already, investors are repositioning with heavy share transactions, the most robust of which occurred on Thursday with trades worth over $500 million.

“Removing the cap sets the stage for someone or group of bodies to try take control of the company. The belief is that in that environment, it will probably lead to an increase in the stock price,” said Mayberry Group CEO Gary Peart during an investor briefing last week.

Wigton is a renewable-energy producer that was formerly owned by the Jamaican Government but was divested via the stock market in 2019. Partly to entice subscription by a wide base of the public, the 11 billion share units were priced at an accessible 50 cents per unit during the IPO. Individual ownership in the stock was also capped at 10 per cent in a market that allows for such holdings of up to 80 per cent.

“Companies that do well are companies that are focused, and so the control issue is not important,” Peart asserted. The Wigton IPO was brokered by Mayberry Investments Limited, and one of its sister companies currently holds a stake in the wind farm.

The market activity last week knocked the stock off its perch to around 96 cents per share.

On Thursday, investors traded over 561 million units of WIG shares, the most activity the stock has seen in at least two years, according to Jamaica Stock Exchange data. The stock price fell 15 per cent on that day to close at 96 cents per share, but it was then still up 20 per cent year on year.

However, the rout was not sustained. By Friday, the stock had climbed back to $1.07 per share. It still closed 3.6 per cent lower for the week but was up 35 per cent year to date.

The WIG stock trades at around 38 times what it earned in the last financial year. This within the context of an overall market trading at a multiple of nine times.

The company is in the process of finalising an upgrade programme for some of its turbines that were installed two decades ago and are at the end of their useful life. Wigton has been cagey about disclosing the level of investment required but says it is in the process of seeking financing. Jamaica’s utility regulator is also yet to approve the upgrade programme laid out by the wind farm operator.

Wigton’s articles of incorporation in relation to the shareholding limitation will cease to have effect after May 2024, according to information on renewable energy producer’s website.

The largest shareholders in Wigton, based on market disclosures to December 2023, are Mayberry Jamaica Equities, a fund with 10 per cent interest; VM Building Society 9.87 per cent, National Insurance Fund 6.4 per cent, ATL Group Pension Fund 5.4 per cent, and Sagicor Investments with 4.4 per cent.

Wigton Windfarm is currently valued at $11.77 billion on the market.

Gleaner

Alternative Energy Electric Vehicles Energy Saving Environment News

IDB to back EV rental business in Trinidad

March 11, 2024 jrobinson

IDB Lab will provide financing for start-up GoElectricTT in support of the push towards the adoption of electric vehicles in Trinidad & Tobago.

GoElectricTT will offer short- and long-term leases and rentals of an all-electric vehicle fleet, and will engage in outreach and public education on the benefits of using the vehicles. With an initial fleet of 15 vehicles, the start-up will focus on the business sector of Trinidad & Tobago and target companies that typically own or lease fleets.

Trinidad & Tobago’s population of approximately 1.4 million people operate more than 800,000 vehicles. Most of these vehicles have internal combustion engines, which produce pollution and contribute to climate change.

The IDB Lab said despite fiscal incentives on the importation of electric vehicles as a way to move towards a low-carbon future, the adoption of these vehicles has been slow – accounting for less than one per cent of new registrations.

“This investment contributes to IDB Lab’s growing portfolio in climate technology, which focuses on creating early-stage opportunities in Latin America and the Caribbean, leveraging innovation and priorisiting real-life impact for the people of the region,” it said.

Gleaner

Government News Renewable Energy Solar Buzz Featured

Tarriff Turmoil: COTED’s Move and Jamaica’s Lithium Battery Imports

February 11, 2024 jrobinson

The escalating expenses associated with electricity in Jamaica have significantly driven the expansion of solar energy usage. Notwithstanding this challenge, substantial initiatives have been implemented by both the government and CARICOM to foster the growth of renewables, enhancing affordability for Jamaica and other Caribbean nations. A notable exemption involves the elimination of taxes on the importation of solar lithium batteries. Given that solar batteries constitute a significant proportion of the overall expenses in a solar energy system, the removal of the common external tariff on solar lithium batteries has played a pivotal role. Consequently, this policy adjustment has empowered more homeowners to not only curtail energy costs but also to avail themselves of robust backup power options during extended blackouts, a scenario often induced by hurricanes or other natural disasters.

In a recent turn of events, the Council for Trade and Economic Development (COTED) made a decision that sent shockwaves through Jamaica’s renewable energy sector: not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean which means lithium batteries would now be taxed 20% on importation. This decision, which could have had dire consequences for the burgeoning renewable energy industry, was met with rightful objection from the Jamaican Government. However, the disappointment lies not only in the initial decision but also in the government’s delayed response and lack of transparency in addressing the issue.

As an active participant in the renewable energy sector, I was deeply concerned when news broke of COTED’s decision to remove the suspension of the lithium battery tariff. This decision threatened to undermine Jamaica’s progress towards achieving its Vision 2030 goal of sourcing 50% of electricity from renewable resources by 2030. With lithium batteries playing a crucial role in renewable energy storage, the imposition of tariffs would have undoubtedly hindered the growth of the industry.

The situation was further compounded by the silence from key government officials. Despite Jamaica’s attendance at the COTED meeting in Barbados, there was no public acknowledgment for a staggering 30 days of the decision to reinstate the tariff. A TV news report that aired on January 30, 2024 was what prompted the government to release a press statement on January 31, 2024 addressing the issue.

The lag in the government’s response forced stakeholders of the (renewable) industry to pay the 20% tax for the entire month of January associated with the purchase of Lithium batteries thus undermining confidence in the commitment to champion the renewable energy agenda. Stakeholders of the renewable energy industry are now left questioning if their best interests are truly being represented.

The refusal of the government to disclose the name of the company in Barbados responsible for the tariff imposition adds another layer of opacity to the situation. Why not publicly state the name of the company that all were being forced to purchase tax free Lithium batteries from if the tax exemption had not been reinstated. This lack of transparency appears tone deaf particularly considering the significant financial implications incurred by Jamaican solar companies as a result of the unexpected duties.

The proactive move from the Jamaican government should have been an immediate response followed by full disclosure and that it is making every effort to refund solar companies the taxes paid by them during the month of January. While we acknowledge the reinstatement of the tariff exemption for 2024 and the relief it provides, the absence of accountability from the government and a plan to reimburse impacted industry players undermines their stated support for the renewable energy sector.

In the absence of a concrete plan from the government to prevent a recurrence of such events, uncertainty looms at large as to what will happen when the exemption expires February 2025. The lack of proactive measures to safeguard industry players against a repeat of events or similar cost impacting instances in the future will only erode trust and heighten skepticism in Vision 2030 and the government to fulfill its commitments. Stakeholders are now left to speculate on the future of the renewable energy industry in Jamaica.

As the need and demand for renewable energy continues, it is imperative that the Jamaican government takes swift and decisive action to address these grievances and secure the renewable energy sector and its stakeholders. Without accountability, transparent communication and engagement with stakeholders of the industry, and a strategic plan by the government, the reality of a sustainable energy future for Jamaica remains at risk of being derailed by bureaucratic inefficiencies or political apathy.

Jason Robinson
Chief Executive Officer
SolarBuzz

Alternative Energy Government Renewable Energy

Jamaica gets approval to suspend CET on lithium-ion batteries

February 11, 2024 jrobinson

The CARICOM Secretariat has finally given approval for the suspension of the Common External Tariff (CET) on the importation of lithium-ion batteries into Jamaica.

The suspension of the CET took effect on February 2, 2024. It will last until February 1, 2025, speciifically for the importation of 240,000 Lithium-ion batteries.

Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will examine the scope for a renewal of the CET suspension.

In expressing satisfaction with the decision, Minister of Industry, Investment and Commerce (MIIC) Senator Aubyn Hill stated that the approval is a testament to the Government’s commitment to creating a sustainable and innovative future for citizens.

“The discussions with CARICOM and the successful negotiation of the CET suspension underscores our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future,” said Hill in a release issued by the MIIC today.

It was previously reported by the Opposition spokesperson on investment, trade and global logistics, Anthony Hylton, that CARICOM had denied Jamaica’s request for the suspension of the CET following an 11th-hour response by another member state at the meeting with the CARICOM Council on Trade and Economic Development (COTED).

However, the MIIC said that approval was granted following intervention by Hill at the 57th Meeting of the CARICOM Council for Trade and Economic Development (COTED) on November 27, 2023.

The MIIC added that there were subsequent bilateral consultations between Jamaica and Barbados, which seemingly confirms the island as the member state that delivered the 11th-hour response to block Jamaica’s request.

According to the Amended Article 83 of the Revised Treaty of Chaguaramas, which refers to the application of the CE , any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in CARICOM, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard.

The MIIC said that every effort was made to expedite the assessment of Barbados’s capacity to supply the product and to engage the CARICOM Secretariat for a speedy resolution.

The collaborative efforts of representatives from the Ministry of Industry, Investment and Commerce (MIIC), Ministry of Science, Energy, Telecommunications and Transport (MSETT), Ministry of Foreign Affairs and Foreign Trade (MFAFT), and Ministry of Finance and the Public Service (MOFPS), were integral to the successful negotiations. The CARICOM Secretariat also played a vital role as a facilitator. In addition, guidance was sought from the Attorney General’s Chambers (AGC) and the Jamaica Customs Agency (JCA).

OUR

Alternative Energy Government Renewable Energy

Caricom approves suspension of CET on importation of lithium-ion batteries

February 11, 2024 jrobinson

JAMAICA’s Ministry of Industry, Investment and Commerce (MIIC) on Monday announced that the Caricom Secretariat has authorised the suspension of the Common External Tariff (CET) in respect of the importation of lithium-ion batteries into Jamaica.

This decision follows an intervention made by Senator Aubyn Hill, the minister of industry, investment and commerce, at the 57th meeting of the Caricom Council for Trade and Economic Development (COTED) on November 27, 2023, in addition to subsequent bilateral consultations between Jamaica and Barbados. It marks a pivotal development in fostering a conducive environment for investments in Jamaica’s renewable energy sector.

“The suspension of the CET is effective from February 2, 2024 to February 1, 2025, for a quantity of 240,000 lithium-ion batteries. Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will be an important factor in examining the scope critical for a renewal of the CET suspension,” according to a release from the MIIC on Monday.

The release said the collaborative efforts of representatives from MIIC; Ministry of Science, Energy, Telecommunications and Transport; Ministry of Foreign Affairs and Foreign Trade; and Ministry of Finance and the Public Service were integral to the successful negotiations.

“The Caricom Secretariat also played a vital role as facilitator. In addition, guidance was sought from the Attorney General’s Chambers and the Jamaica Customs Agency. These collective actions align with the provisions outlined in the Amended Article 83 of the Revised Treaty of Chaguaramas, regarding the operation of the Common External Tariff. This article stipulates that any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in the [Caribbean] Community, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard,” said the release.

It also said that the Ministry of Industry, Investment and Commerce, acting as the authorised body responsible for engaging with COTED on Jamaica’s behalf, played a pivotal role in securing the favourable outcome. Every effort was made by the MIIC and other GOJ representatives to expedite the assessment of Barbados’s capacity to supply the product and to engage the Caricom Secretariat for a speedy resolution.

In expressing his satisfaction with the decision, Hill said: “This approval is not just a win for the renewable energy sector but a testament to our commitment to creating a sustainable and innovative future. The discussions with Caricom and the successful negotiation of the CET suspension underscore our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future.”

Jamaica Observer

Alternative Energy Government Renewable Energy

Minister Hill defends actions at COTED meeting

February 11, 2024 jrobinson

Minister of Industry, Investment and Commerce Senator Aubyn Hill has shot back at claims that a delegation he led to the last meeting of the Caribbean Community (Caricom) Council on Trade and Economic Development (COTED) did little to preserve a common external tariff (CET) waiver on the importation of lithium-ion batteries. Lithium-ion batteries are used to store the excess power produced by solar photovoltaic systems.

Speaking to the Jamaica Observer last Friday following a press briefing held at Kingston Wharves Limited in conjunction with the European Union, Hill said he challenged COTED’s decision when he attended the meeting.

“I was there; I pushed back when Minister [of State in Foreign Trade and Business Sandra] Husbands from Barbados raised the issue. I raised the issue that the technical team representing Barbados…did not raise the issue. I raised the issue and objected,” he asserted.

Documents submitted to the Business Observer reveal that at the COTED meeting held November 27-28, 2023, in Georgetown, Guyana, the Jamaican delegation submitted a “Request for Approval of the Suspension of the CET on a Priority List of Renewable Energy and Energy Efficient Technologies”, citing the need to increase the penetration of renewable energy sources and greater adoption of energy efficiency measures in order to reduce the country’s carbon emissions.

The application for the roll-back on the 20 per cent charge would apply to compact fluorescent lamps, vapour absorption refrigeration systems, thermal storage air conditioning systems, rechargeable batteries for renewable energy systems (photovoltaic systems), among others. The council however refused to approve the suspension of CET on lithium-ion batteries, nothing that “Barbados indicated its ability to supply 240,000 lithium-ion batteries… as requested by Jamaica, for the period 1 January 2024 to 31 December 2025”.

The documents did not identify the name of the Bajan company that has offered to supply the Caricom Single Market with the batteries, but checks have revealed that Meritsun Power is the only supplier of that type of energy storage unit in the Eastern Caribbean island.

However, according to Alex Hill, president of the Jamaica Renewable Energy Association (JREA), “The Ministry of Science, Energy, Telecommunications and Transportation (MSETT) is choosing to protect the name of the company in Barbados instead of sharing it with stakeholders in the sector. This company formally approached COTED and stopped our local tax incentives and therefore should not be protected by our Government. Their name should be publicly available so that importers in Jamaica can contact them and make orders from them. After all, they are now the preferred supplier for the region.”

Questions arising

The decision of COTED and what was deemed the inaction of Minister Hill and his team have been met with ire by both the JREA and the Opposition People’s National Party.

Noting concerns being raised in the renewable energy industry, Opposition spokesman on investment trade and global logistics Anthony Hylton questioned why a last-minute submission by Barbados was allowed to block Jamaica’s request for CET exemption.

Moreover, he underscored, “It is the practice that a request for suspension is not denied without prior evidence resulting from an investigation by the Secretariat technical staff that the Caricom producer satisfies at least 75 per cent of the product demand in Caricom.”

In an e-mail to the
Business Observer, JREA President Hill, who is the son of Minister Aubyn Hill, argued, “We know that this company cannot do what they purport to do because Barbados does not have known lithium deposits, industrial lithium processing or commercial manufacturing facilities for lithium batteries. As a point of reference, Jamaica imported approximately 11,000 lithium-ion batteries for renewable energy purposes between 2021 to 2022.”

He added: “The Jamaican delegation that attended this past COTED meeting should have vehemently rejected any suggestion by the Barbadian delegation that a single company could supply the needs of Jamaica without first reviewing the technical aspects of their product offerings, their manufacturing capability and standards. That is what the stakeholders in the renewable energy sector expect from their Government, to protect our local industry players and the Jamaican citizens who have spoken with their wallets and are purchasing lithium-based battery energy storage systems en masse. These taxpaying citizens should not bear the brunt of a 20 per cent tax because a no-name company, without a track record, or even a website, makes an erroneous claim that they can supply the needs of the Jamaican market.”

The JREA president further pointed out, “It has been reported that the Trinidadian Government has chosen not to implement the 20 per cent tax as the company in Barbados has not yet been able to substantiate their claims.”

With this is mind, he questioned why the Government has quickly implemented the CET in an “unplanned manner” and what timeline MSETT has in mind to request a revocation of the CET. This question was posed on Friday to Minister Hill.

Next steps

In his response, the minister said his portfolio ministry has alongside MSETT investigated the claim made by the Barbados company of its capacity to supply lithium-ion batteries to the region.

“A position is coming out very shortly,” he told the
Business Observer, adding: “What we were arguing is that they’re not manufacturers of [lithium-ion] batteries.”

Based on COTED rules, a company’s market share can be protected with the application of a CET on similar products imported from outside the region once it can prove that it can adequately supply the Caricom Single Market. Additionally, the entity must show that it is engaged in the manufacturing of the product with most of the raw materials originating from the region.

Highlighting that he has written to the Caricom Secretariat to object to the CET, Minister Hill explained that the objection is accompanied by a request for the exemption to the tariff to be reinstated for the period January 1, 2024 to December 31, 2025. Additionally, he said that his ministry will present its findings to the Caricom Secretariat by latest next week.

Notwithstanding, the younger Hill, who is the managing director of IREE Solar, noted what he called a “condescending lack of communication” from MSETT.

“It is only exacerbated because the JREA was preemptive in requesting planning meetings with the MSETT team and, as such, the MSETT team had clear data and a plan going into this last COTED meeting to have the incentives extended. Furthermore, this decision was arrived at during the November 2023 meeting of COTED, but all stakeholders were informed of the decision by a newspaper article on the 28th December, 2023; a mere three days before the tax was to be applied. There was no proper communication with investors, project developers, importers or purchasers, and no planning period given to the industry. This cannot be the proper manner in which to conduct business in the energy sector in [2024],” he stated.

He continued: “In conclusion, it is evident that whatever regulations and rules that are currently being used to govern objections to incentives at COTED, and the application of CET to energy, efficient and renewable energy items is flawed, ineffective, and needs to be overhauled immediately. No company from any Caricom nation should be allowed to object without formally submitting specific data surrounding their ability to manufacture on scale, their product/s’ technical specifications and other pertinent business details. There must also be punitive measures applied against that single company and/or the government representing said company if their claims are untrue and fall short of their stated intent. Millions of Caricom citizens should not be expected to bear the burden of a tax during the deliberation stage of these incentive negotiations. That is unfair and illogical.”

In June 2022, after much agitation from the JREA, Jamaica’s Minister of Finance and the Public Service Dr Nigel Clarke announced the removal of both GCT and CET on lithium-ion batteries – the latter being due to an approval from COTED. However, when contacted by the
Business Observer last week, he clarified that matters under COTED are handled by the Ministry of Industry, Investment and Commerce. Additionally, he outlined that once COTED has reached a decision, it is binding on all Caricom member states and so the tariff on lithium-ion batteries will have to be reinstated.

Another insider from the JREA has indicated that the Ministry of Foreign Affairs and Foreign Trade will also submit a request to COTED for the reversal of the decision to impose the tariff.

Jamaica Observer

Alternative Energy Government Renewable Energy

Jamaica Wants COTED to Reconsider Move to End Suspension of Lithium-ion Battery Imports

February 11, 2024 jrobinson

The government says it’s seeking a revision of the Council for Trade and Economic Development, COTED’s, decision not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean.

COTED is the organisation responsible for the promotion of trade and economic development within CARICOM.

At a meeting held by COTED in November last year, the Ministry of Science and Energy requested that the suspension of the tariff on Jamaica’s importation of nine renewable and energy efficient technologies be extended until December 2025.

Among the technologies listed were lithium-ion batteries.

The previous two-year suspension ended December 31 last year.

However, according to the ministry, COTED decided not to grant the extension as a result of the Barbadian government indicating that a company located in the eastern country was able to supply the quantity of lithium-ion batteries being requested for tax exemption.

The ministry says following an assessment of the company, it was determined that the lithium-ion batteries on Jamaica’s priority list were different from those supplied by the Barbadian company.

It noted that the company’s existing production capacity amounted to only 1.5 per cent of the lithium-ion battery imports, particularly for use in renewable energy systems.

According to the ministry, the decision not to suspend the tax on the batteries did not sufficiently consider the rules of origin under the Revised Treaty of Chaguaramas and the production and export capabilities of the Barbadian company.

The ministry says it requested a revision of the council’s decision in mid-January.

While acknowledging the importance of COTED’s decision to Jamaica’s renewable energy sector, the ministry says it’s committed to working closely with its partner Ministries to have the decision reconsidered.

Abigail Bartley reports.

Nationwide Radio

Alternative Energy Government News Renewable Energy

Jamaica’s bid to continue importing lithium-ion batteries without regional tax hits snag

February 11, 2024 jrobinson

The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024

The Ministry of Science, Energy, Telecommunications and Transport has advised that a 20 per cent tariff will be applicable to the importation of lithium-ion batteries from outside the CARICOM region as of January 1.

A two-year suspension of the common external tariff (CET) is in place until the end of December, and Jamaica requested a further two year extension at a November meeting of the Council for Trade and Economic Development (COTED).

However, the ministry said in a media release on Friday that a Barbados-based company has objected to Jamaica’s application, indicating through the Barbados government that they produce the type of lithium-ion batteries being requested for CET suspension.

The ministry said the necessary due diligence is now being done by the Jamaican authorities to assess the Barbadian company’s certificate of origin and their ability to meet the specifications and provide the quantities required by Jamaica’s renewable energy sector.

The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024, to allow for the preparation of the Government of Jamaica’s response to COTED.

“Due to the objection raised by the Barbadian company, a 20 per cent CET will be applicable to the importation of lithium-ion batteries from outside the region as of 1st January 2024. While the country’s renewable energy stakeholders should remain guided by the Jamaica Customs Agency, it should be noted that only lithium-ion batteries imported for use in solar applications will be exempt from GCT,” the ministry stated.

The CET is applied by all participating countries on select products. It effectively raises the price of imports from outside of the region, giving internally manufactured products a competitive advantage.

Gleaner

Alternative Energy Electric Vehicles Environment News

EV imports soar to $9-b a year after Gov’t incentive

January 31, 2024 jrobinson

A year into the implementation of the Government’s concessions on electric vehicles, new data show that EV imports soared to $9 billion over the period July 2022 to June 2023, as import volumes doubled year on year.

In a move aimed at softening the country’s dependence on petroleum for motor vehicles by making it more affordable for Jamaicans to acquire electric vehicles, the Government slashed the import duty on a limited number of electric vehicles from 30 per cent to 10 per cent and has removed licence fees for EVs. About a third of petroleum imports are used for transportation in Jamaica.

The concessionary measures took effect In July 2022 and will run to July 2027, but since then, EV imports have continued to rise, according to data requested by the
Jamaica Observer on electric vehicles including hybrids fromthe St atistical Institute of Jamaica (Statin).

For the year, July 2022 to June 2023, Jamaica imported 6,606 electric vehicles valued at $9.1 billion, more than double the 2,854 EVs imported a year earlier between July 2021 and June 2022 when the EVs imported were valued at $4.4 billion. Data provided by Statin only goes up to July 2023. Still, in that single month, Jamaica imported its highest quantity of EVs, totalling 951 units, which were valued at $1.5 billion. Still, despite doubling in the year to July 2023, EV imports were still just 16 per cent of the total $56 billion worth of vehicles imported into Jamaica in the same 12 months period.

While the data suggest that the EV market in Jamaica is slowly gaining some traction, key players in the industry have mixed reactions to the market’s performance, with at least one player — Andrew Jackson of Jetcon Corporation — taking the decision to minimise his company’s EV inventory.

“The EV market is dead. I’ve had EVs just sitting on the lot losing value, and even after cutting the price, they still weren’t moving. After about a year we got an offer from a company and we decided to take the deal,” Jackson told the
Jamaica Observer.

Jetcon is one the first used car dealers to dabble in the EV market. The company ordinarily stocked roughly 10 of the Nissan Leaf first-generation EV model, but given his experience with the market, Jackson says while he will still stock some EV units, the number will be fewer.

“I think a large part of the problem is the concession being offered by the Government. It’s a non-starter. It’s not significant enough to make the vehicle affordable for the average consumer and there are too many limits on who can actually benefit from the concession,” he said.

The reduced duties were expected to shave a little over $1 million off the Nissan Leaf, one of the lowest-priced battery electric vehicles available in Jamaica at $5 million, but those savings didn’t materialise for Jackson who said that upon entry into Jamaica he learnt that the vehicles did not fall within the prescribed age range to benefit from the tax break.

“It meant that those savings that I planned to pass on to the consumer were no longer possible,” Jackson said.

Days after the Government announced that it would provide a tax break on imported EVs, business operators, making early moves in the industry, criticised the Government for placing a cap of 1,000 units on the number of vehicles that could benefit from the tax break. Additionally, only electric vehicles below the age of three years could benefit from the tax incentive.

The operators’ initial take was that the measures were counterproductive, adding that the initiative would have a more meaningful impact had the limit been increased to 2,000 units. But Minister Clarke argued that the EV market cap would minimise the tax losses to $18 million over the five-year period.

Group marketing manager at ATL Automotive Limited, Christina Taylor, is also on board with the call for more incentives and has also called for greater clarity on the units which qualify for the duty break. However, EV sales at ATL Automotive are in stark contrast to EV sales a Jetcon.

“There has definitely been an uptick in sales as the price point is more attractive. We’ve introduced a variety of EVs across differing brands — mild hybrids, hybrids, plug-in, e-hybrids, and EVs since 2016, and the adoption, while slow, has increased,” Taylor told the
Business Observer.

She credits much of the improved performance to “lessening hesitancy” in the market as motorists become more aware of the benefits of EVs and the greater development of an ecosystem to facilitate electric mobility in Jamaica.

Jamaica is still in the early stages of adoption, but power provider Jamaica Public Service (JPS) and Evergo Jamaica continue to invest in charging stations. The latest target published by JPS is for the addition of 12 electric vehicle charging stations across the island, bringing to total 22 public electric vehicle charging stations operated by JPS. Later on, JPS is looking to roll out another 16 charging plugs.

Several of the charging stations are being constructed in partnership with gasoline retailers, whose sites host the stations. So far, partners have included Boots Gas Station, Texaco, and Total. Many of JPS’s charging stations are capable of recharging EVs at some of the fastest charging rates on the island.

“Through private sector organisations such as Evergo and JPS Charge N’ Go, the range anxiety that persons have been wary of has lessened as there are almost 100 charging stations island-wide, spanning multiple convenient locations in each parish so persons can charge wherever they go,” Taylor said.

She added that with improvements in technology, older EVs which would only have about 100 km of range are also a “thing of the past”.

“Through advanced technology and improvements in battery power, EVs nowadays can easily do 450 to 680 km, taking you from Kingston to Negril and back,” she said.

“Another hesitation has been the safety of EVs, but people are learning that EVs also undergo rigorous safety tests, just like any normal car. Additionally, through our training department, the ATL Academy, we’ve been working closely with the Jamaica Fire Brigade on how to extract persons from an EV in the event of an accident,” Taylor added.

ATL, which was last named the regional distributor for the BYD fleet of electric vehicles in Jamaica, Trinidad and Tobago, Cayman, Curaçao, Barbados, Aruba, Antigua, Saint Lucia, Guyana, and Suriname, also offers consumers a charger and complimentary installation at a location of their choice, whether at home or the office, as a sweetener for the purchase of any electric vehicle — be it plug-in, e-hybrid, or full EV.

ATL Automotive and Stewart’s Auto Sales Limited are two of the largest dealers of electric vehicles in Jamaica. However, efforts to get a comment from Duncan Stewart, general manager of affiliated company Stewart Motors Limited were unsuccessful up to press time.

EV brands carried by ATL Automotive include Audi, Porsche, BYD, BMW, and MINI. Meanwhile, Stewart’s Automotive represents brands such as Mercedes Benz, Land Rover, Jaguar, Mitsubishi, Suzuki, and Honda bikes.

Jamaica Observer

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