THE Government says that it is withdrawing from the fuel source selection process to focus on creating a legislative and regulatory energy framework this fiscal year.

However, Minister of Science, Technology, Energy and Mining Phillip Paulwell told the House of Representative yesterday that the Government has not abandoned plans to introduce Liquefied Natural Gas (LNG) into Jamaica by 2015.

Minister of Science, Technology, Energy and Mining Phillip Paulwell

He said that plans are well advanced for the introduction of LNG, but given the result of the bidding process, the Government has determined that it has taken the matter as far as it can go. He added that it was also the Government’s view that private electricity and alumina producers would have much more flexibility in procuring fuel supplies and use their international leverage to get the best possible prices.

However, “as a Government, we (will) continue to support and facilitate private investors as we work together to achieve the best possible solutions,” Paulwell said.

He stated that the LNG committee will be immediately disbanded and replaced with a body that includes members of the Jamaica Energy Council, the Office of Utilities and his ministry.

“With the termination of the work of the LNG steering committee, there will be no need to access the remaining US$2.6 million that was originally budgeted,” he explained in reference to the fact that the Government has already spent US$2.8 million of the US$5.4-million proposed budget for the LNG project.

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Mr Speaker, I rise to update this Honourable House on matters related to energy, and specifically the matter of LNG.

Electricity prices are the most important impediment to economic growth and job creation facing Jamaica today. Mr Speaker, there is no delicate way to repeat this: Jamaica will not move forward with electricity rates of 40 US cents per kilowatt hour. For us to achieve competitiveness in the global economy, we must reduce this burden on our manufacturers, our businesses and our people.

Mr Speaker, it is my goal to oversee the reduction of electricity costs in Jamaica, to between 15 and 18 cents per kilowatt hour, a rate that will allow Jamaicans to build industry, create jobs, and be competitive.

 

NATIONAL ENERGY POLICY

In November 2010, recognising the urgency of our nation

JAMAICANS are being encouraged to pay keen attention to energy efficiency when purchasing home appliances and other devices that utilise electricity.

The appeal was made yesterday by officials of the Development Bank of Jamaica (DBJ), which is spearheading a national project that seeks to promote the benefits of energy efficiency and conservation. The project also seeks to encourage Jamaicans to make greater use of renewable energy such as solar, particularly in small and medium enterprises.

In addition to funding from the DBJ, the US$807-million DBJ GreenBiz Energy Efficiency Project receives assistance from the Inter-American Development Bank.

According to DBJ officials, who were guests at the Jamaica Observer weekly Monday Exchange, a number of Jamaican consumers can be described as being penny wise and pound foolish when purchasing appliances such as television sets, air-conditioning units, light bulbs, and refrigerators.

Christopher Brown, energy project co-ordinator at the DBJ, cautioned Jamaicans to pay attention to what he cited as the life cycle cost of a product versus the up-front cost. “Although you spend X amount for a TV now, the cost of electricity for the TV should also be factored in. I know that in Jamaica we are driven by purchasing power, and so one TV might cost one and a half times another, and because of that high capital cost people don’t invest in it. However, at the end of the day, the person who bought the cheaper TV would have paid a lot more, over time,” Brown explained.

His point was endorsed by president of the Jamaica Society of Energy Engineers, Owen Gunning, who pointed to a major difference between the amount of energy consumed by an old refrigerator, as opposed to a newer one. “An old fridge for example would give you about 600 watts, a newer fridge would probably take you down to 250 watts,” said Gunning as he encouraged consumers to look for the energy star on appliances.

He added that the same principle applies to air-conditioning units, some of which continue to be dumped on Jamaica, despite their high levels of inefficiency. “You have what is referred to as an Energy Efficiency Rating and you have people dumping on us AC units that have energy efficiency ratio of 7.5, but you can get energy efficiency ratio of up to 18,” said Gunning, a University of Technology lecturer who explained that the higher the ratio, the less it will cost to operate the unit.

He also chided persons who continue to use electric water heaters and argued that they would save significantly on their electricity bills if they were to invest in solar water heaters.

Gunning also pointed to significant differences in the amount of energy consumed by older type television sets as opposed to LCD and LED televisions.

Meanwhile, the DBJ energy project coordinator explained that a marketing campaign has been launched to support the project. The campaign will appeal to all Jamaicans, but will target operators of small and medium enterprises and will also target school administrators, many of whom have been grappling with massive electricity bills.

Brown indicated that as part of efforts to promote the energy efficiency project a fair will be held on October 12 at Emancipation Park in St Andrew.

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THE country cannot continue to depend on oil if the island intends to make meaningful progress with its economy, a leading energy engineer has said.

Certified energy manager and energy auditor, Owen Gunning, who is also president of the Jamaica Society of Energy Engineers, wants a full-scale effort to be made to reduce Jamaica‘s dependence on oil as its base fuel and insists that a ‘more action, less talk’ approach should be adopted.

Observer Monday Exchange guests (from left) Alando Terrelonge, partner at Bailey Terrelonge Allen; Edison Galbraith, general manager, loan origination, Development Bank of Jamaica (DBJ); Christopher Brown, energy project co-ordinator, DBJ; and Owen Gunning, certified energy manager, certified energy auditor and president of the Jamaica Society of Energy Engineers, continue the discussion on energy efficiency following the end of the Exchange yesterday at the newspaper

Zacca
Zacca

WITH ENERGY Minister Phillip Paulwell scheduled to address the House of Representatives today, the Private Sector Organisation of Jamaica (PSOJ) says it wants him to provide clarity on the way forward for the implementation of liquefied natural gas (LNG).

“We are looking for transparency and we are looking for some certainty because we feel this issue has got to be addressed in a way that the wider society buys into it and in particular, my constituency, the business sector needs to get that confidence booster out of it,” Chris Zacca, head of the PSOJ, told participants in a Gleaner Editors’ Forum at the the newspaper’s central Kingston head offices yesterday.

There have been jitters in the society ever since

FOLLOWING THE revocation of an exploration licence, which was granted to Rainville Energy Corp, a subsidiary of Sagres Energy, to drill for oil, Energy Minister Phillip Paulwell has signalled that another company that was granted a licence could have it cancelled if they don’t begin drilling soon.

The Petroleum Corporation of Jamaica yesterday said the failure of Rainville to meet its financial obligations has resulted in the revocation.

Under the agreement, which dates back to 2006, Rainville should have secured the necessary funding for the second phase of the programme which began in May 2012.

Among other things, this phase involved the drilling of an exploratory well by November 2013.

Paulwell told

Kelly Tomblin, president of Jamaica Public Service Company. - Ian Allen / Photographer
Kelly Tomblin, president of Jamaica Public Service Company. – Ian Allen / Photographer

Power distributor Jamaica Public Service Company (JPS) remains committed to using liquefied natural gas (LNG) for its planned 360-megawatt power plant despite Government’s expected plan to scrap the supply of gas for the project, according to the utility’s boss.

The private sector can assume the role of supplying the gas, if allowed by Government, JPS Chief Executive Officer Kelly Tomblin said Tuesday.

The company will meet with Government this week to determine its next step.

“The private sector could secure LNG if Government permits it,” Tomblin told

Worries about weaker economic growth dragged down oil prices Monday.

Oil has now fallen five of the last six trading days. It fell more than six per cent last week.

Benchmark crude fell 96 cents, or one per cent, to finish at US$91.93 a barrel on the New York Mercantile Exchange. Prices for other petroleum products dropped, too.

In London, Brent crude dropped US$1.61 at US$109.81 a barrel on the ICE Futures exchange.

Germany delivered the latest dose of gloomy economic news, with its index of business confidence falling for the fifth month in a row. Germany is an economic powerhouse, but 43 per cent of its exports go to its euro partners. And growth is stalling across the other 16 countries in the Eurozone.

Slower economies mean less demand for oil, pushing prices down.

Phil Flynn, a senior market analyst for Price Futures Group, said he’s surprised prices haven’t fallen further. He said one reason could be that commodity funds have not been bailing out of oil.

demand destruction

Still, oil prices have been under pressure from worries about Europe. The dollar has been stronger, which makes oil cheaper for holders of other currencies.

“You’re seeing demand destruction around the globe,” he said. “You’ve got Saudi Arabia saying they’re going to pump oil until the cows come home.” All of that drives down oil prices, he said.

Heating oil dropped 2.2 cents to US$3.0987 per gallon, wholesale gasolene decreased 2.49 cents to US$2.9176 per gallon and natural gas ended down 4.8 cents to US$2.837 per 1,000 cubic feet.

– AP

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