WE are aware that many factors can affect negotiations between the Government and business entities wishing to set operations here.

Those factors can range from complex to the most minute detail. Either way, they most times lead to start-up delays that frustrate all parties involved.

With that in mind, we hope that the Government and Russian firm UC Rusal, owners of Alpart, can sign off on a reopening date for the alumina plant as quickly as possible. Ideally, we wouldn’t mind if that agreement could be reached before the middle of this month, as was projected by an official of the mining and energy ministry and reported in last week’s edition of the Jamaica Observer Central.

According to the ministry official, “the discussions are continuing and they are very productive, but they are at a delicate stage”.

The mid-January date offered by the official followed on a promise by Mining and Energy Minister Phillip Paulwell, in November, for word on the plant’s reopening by the end of last year.

That word cannot come too soon for the people of St Elizabeth, particularly those in the south-eastern section of the parish. In fact, the entire Jamaica, we believe, will welcome the reopening of Alpart, so too the Kirkvine plant

A section of Jamaica's oil refinery, Petrojam
A section of Jamaica’s oil refinery, Petrojam

The ill-health of Venezuela’s president

A perfect example of the shortage of vision affecting Caricom governments is their dropping of the ball on the Leucaena project in the early 1980s.

Ambassador Byron Blake, former Caricom assistant secretary general, reminded us of that last month during a sitting of the Jamaica Observer Monday Exchange.

For those who missed it, the Leucaena project was established in response to the energy crisis of the late 1970s. Essentially a group of scientists and energy experts from Jamaica, Barbados, Haiti, Trinidad & Tobago, and St Lucia started producing energy as well as animal feed from the Leucaena plant, which is referred to in some parts of the world as the ‘miracle tree’ and in Jamaica as the ‘wild tamarind’.

The initiative received support from colleague scientists in the region as well as from Caribbean governments and several international donor organisations.

At the height of the project, companies such as Enerplan Limited

Oil prices rose Monday as political leaders were trying to finalise a deal to avert the ‘fiscal cliff’ hours before the deadline.

The US had until midnight New Year’s Eve to avert a tax increase for everyone and spending cuts that would have hit defence spending.

Benchmark US crude rose US$1.02 to finish at US$91.82 per barrel in New York. Oil has wavered in recent weeks along with the ups and downs of the budget negotiations.

The price of oil finished December up about three per cent from the start of the month. It ranged from a low near US$77 a barrel to high around US$110 a barrel during the year.

Brent crude, used to price international varieties of oil, rose 49 cents to end at US$111.11 a barrel in London.

In other energy futures trading on the New York Mercantile Exchange: natural gas fell 12 cents, or 3.4 percent, to finish at US$3.35 per 1,000 cubic feet; wholesale gasolene rose one cent to US$2.81 a gallon; heating oil was flat at US$3.05 a gallon.

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Homeowners are being advised to get a licenced electrician to check their house wiring before putting up decorative lights, in order to prevent fires.

The warning came from Assistant Superintendent in charge of Communication at the Jamaica Fire Brigade (JFB), Emilio Ebanks, as he addressed a recent Jamaica Information Service (JIS) Think Tank.

He said that house wiring that is over five years old needs to be checked before the decorative lights are plugged into the household circuit. He said that the increased electricity demand, coupled with unsafe wiring, increases the risk of fires, the destruction of property and the loss of life.

The group Citizens United to Reduce Electricity (CURE) is claiming that the Jamaica Public Service Company (JPS) is now in a better position reduce the cost of energy.

In a statement, the group said it had evidence that the independent supplier, Jamaica Energy Partners now provides 30 per cent of the required electricity to the national grid at approximately US$0. 21 per kilowatt hour.

CURE is claiming that the electricity is sold to JPS and then passed on to consumers at US$0. 41 per kilowatt hour.

The advocacy group is recommending that it instead be distributed at US$0.25 which would still be profitable for the JPS and its partners.

The group is of the view that Jamaica is therefore in a position to benefit significantly from lower electricity rates.

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Scotiabank‘s energy loan customers can now determine potential loan payments, based on consumption, online.

The financial institution launched its innovative SmartEnergy Calculator on Thursday at its Constant Spring Financial Centre. The nifty energy loan calculator complements the Bank‘s SmartEnergy Loan available to Small and Medium-Sized Enterprises and householders to fund energy efficiency projects that will help the environment and cut energy costs.

(From left) Kelly Tomblin, CEO of Jamaica Public Service Company; Wayne Powell, executive vice-president retail, Scotiabank; Dr Kirk Abbott, managing director of New Leaf Energy and Phoebe Buchanan, manager of Scotiabank

In this instillation of our weekly newsletter blast out, we have decided to explain the energy grid system to you our readers. Through this newsletter we hope to help our readers and clients to better understand energy and how it works.

Delivery system:
As electrical energy is generated, it is transformed and transported instantaneously through a network of wires, substations, and transformers to the consumer. Electricity is generated at a comparatively low voltage at most generating stations. In order to transport this energy great distances, the voltage has to be increased, or stepped up.

Generating:
The generation of electricity is most commonly achieved by converting