ATTORNEY-AT-LAW Hugh Wildman on Tuesday urged the Government to use its 19 per cent share in the Jamaica Public Service (JPS) to acquire the electricity grid from the light and power company in an effort to accommodate energy providers who would want to enter the market.

Wildman, the attorney for the group of persons who had the Supreme Court struck down the exclusivity aspect of the JPS’s 20-year all-island licence, said that the grid should be in State control in order for Jamaica to benefit from affordable energy.

“Persons are expressing an interest in providing energy. What the Government needs to do now is use its 19 per cent share to acquire the grid from the JPS to allow other players to come on board,” said Wildman, who was speaking at the Kiwanis weekly luncheon at the Wyndham Hotel in New Kingston.

Wildman said that there are new players out there with better technology that would benefit consumers.

“Without cheaper energy Jamaica is going nowhere but down. Jamaica deserves better,” Wildman said.

The way was made clear for other players to enter the energy market when Justice Bryan Sykes on July 30 struck down the exclusivity aspect of JPS’s licence, issued by the energy minister in 2001. At the same time though, Sykes said that the all-island aspect of the licence was valid.

JPS has since appealed the ruling. So too have Dennis Meadows, Betty Ann Blaine and Cyrus Rousseau, the group of people who have brought the action against the JPS.

The claimants are asking the Court of Appeal to declare the licence invalid. The claimants are set to argue that only one licence was issued to the JPS and that it cannot be divided to make one part valid and another part invalid, as was done by the Supreme Court. The claimants are contending that the Electric Lighting Act prevents an entity from providing electricity across the entire island.

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CARICOM-member countries have agreed to work together to ensure adequate support for the region’s renewable energy push.

The commitment came out of a meeting held last Friday at the conclusion of a two-day renewable energy summit in the Republic of Malta, organised by the International Renewable Energy Agency (IRENA).

State minister in the ministry of Science, Technology, Energy and Mining, Julian Robinson, who was Jamaica’s representative at the summit, called the early-morning meeting of CARICOM member states in attendance, to examine how the region could interact with entities like IRENA to source assistance, grants, and other financial instruments, “to facilitate joined-up projects rather than compete head on for instruments from the same global financial pie”.

Robinson pointed out, many of the smaller countries lose out to the larger and better resourced ones when trying to source financial assistance.

According to Robinson, arising from the meeting, the eight CARICOM countries represented agreed in principle to work together to complete a renewable energy assessment within the region.

He said the members also pledged to “examine the possibilities of harmonising regulations and legislative framework for renewables, which will allow all investors to invest within the region in complement, not competition”.

They have also agreed to carry out work with regulators on renewable energy initiatives.

The group also resolved to increase the CARICOM presence in the IRENA. Only two countries, Antigua and Barbuda, and Grenada, are currently members.

The eight CARICOM countries represented at the Malta summit were Jamaica, Antigua and Barbuda, Belize, Barbados, Grenada, St Vincent and the Grenadines, Suriname, and Dominica.

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President and CEO of JPS, Kelly A. Tomblin.-Rudolph Brown/Photographer
President and CEO of JPS, Kelly A. Tomblin.-Rudolph Brown/Photographer

The much maligned and criticised Jamaica Public Service Company (JPS) could be the one to save the Government‘s floundering liquefied natural gas (LNG) project, which will bring cheaper electricity to Jamaicans.

Having stuck to the letter of the law and prevented the parent company of the JPS, Marubeni Corporation, from bidding to supply LNG to Jamaica, the Government now seems ready to eat humble pie and beg the firm for help.

Marubeni had wanted to submit a bid to supply the LNG to Jamaica but was disqualified after it arrived minutes after the 5 p.m. deadline.

However, with the qualified bidders offering prices that would not lead to any appreciable decline in the cost of electricity to Jamaicans, it appears negotiations are set to be initiated with Marubeni.

“The prices quoted by the bidders are much higher than Jamaica can pay and would not attract the JPS or the bauxite companies,” a source close to the talks told

Tropical Storm Leslie has hit Bermuda with high winds and heavy rains, causing power outages and flooding in parts of the island.

However, there were no immediate reports of major damage or personal injuries.
The Bermuda Electric Light Company reported five major power outages, knocking out power to 650 customers, before Leslie, packing sustained winds of 60 miles per hour, passed the island just before noon around 145 miles to the east.

Bus and ferry services as well as flights were cancelled, with the exception of a British Airways flight from London, which was scheduled to land in the afternoon.

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A team from South Korean company Samsung is to visit the island this week to hold talks with the government on its LNG project.

Samsung has emerged as the preferred bidder for the development and operation of the LNG floating storage and re-gasification terminal.

It is understood that Samsung has written to the Energy Minister Phillip Paulwell asking for a meeting with him and all the parties involved.

Paulwell has admitted that after three months, a formal deal is yet to be struck with Samsung.

He stressed that the negotiation is a process and the government is proceeding with caution.

The government had projected to introduce LNG by 2014 but there are doubts that this timeline may be achieved because the administration is yet to secure a supplier of the LNG.

There are also fears that the current cost of the fuel may prohibit the government from realising its aim of reducing the cost of electricity by 30 per cent.

Paulwell said he is awaiting the final report from the LNG steering committee, which is due this month.

He added that after reviewing the report, the government will indicate its position going forward.

editorial@gleanerjm.com

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Wigton Wind Farm in Manchester 

 

 

 

 

 

 

The Wigton Windfarm in Manchester – FILE

As Government continues to encourage investment in renewable sources of energy, private interests are being urged to consider wind energy as a lucrative area for investment.

“We are trying to encourage private players, not just Government, to actually go into this as a business, because we believe that it is attractive enough for a company to make a return on their investment,

 

 

 

 

 

 

 

 

Minister of State in the Ministry of Science, Technology, Energy and Mining (STEM), Hon. Julian Robinson

Minister of State in the Ministry of Science, Technology, Energy and Mining (STEM), Hon. Julian Robinson, says Jamaica is ripe for investment in renewable energy.

In an interview with JIS News, the State Minister said following a recent assessment of the rates paid to persons who generate energy which is then sold to the grid, a recommendation is now on the table that will make it more attractive for investors to invest locally.

Valero Energy Corp announced Monday that it will convert its shuttered oil refinery on the southern Caribbean island of Aruba into a fuel storage facility.

The San Antonio, Texas-based company suspended refining operations in March at the Aruba refinery, which processed heavy, sour crude and once had a capacity of about 275,000 barrels a day.

It said it stopped producing gasolene and other fuels at the site due to high oil prices and “unfavourable refinery economics.”

But on Monday, Valero announced that it had decided to reorganise the unprofitable site into a storage terminal on the Dutch Caribbean island of just over 100,000 inhabitants.

For years, Valero has been trying unsuccessfully to sell the Aruba refinery, which the company says is still ready to restart if a buyer can be found.

Valero Chairman and CEO Bill Klesse said Aruba’s deep-water and smaller berths will give the terminal flexibility to load the biggest crude freighters.

“We believe that Aruba has the assets to compete as a world-scale crude and refined products terminal,” Klesse said in a statement.

The company’s local subsidiary has notified employees that it will require a significantly smaller workforce.

The reorganisation and workforce reduction is expected to be completed before the end of the year.

From Aruba, Valero spokesman Bill Day said there are currently about 600 employees at the site. They were kept on the payroll during the suspension of refinery operations.

“Valero hasn’t determined the number of employees to staff the terminal operations yet; that will be done over the next several days in meetings with employees and union representatives,” Day said.

A spokesman for the Independent Oil Workers Union of Aruba did not immediately return calls for comment on Monday.

Officials at Aruba’s department of economic affairs, commerce and industry also did not immediately return calls seeking comment about ways to offset the economic damage.

In recent years, the company has said it represented more than 12 per cent of Aruba’s gross domestic product.

Valero said it will continue to invest in Aruba with upgrades to the terminal. It will also continue to supply gas, diesel, jet fuel and fuel oil to the island just north of Venezuela.

Refineries in the Caribbean and on the East Coast of the United States (US) have struggled in recent years because the crude oil they use has been priced higher than the oil available to refiners in the middle of the US.

Earlier this year, Hess Corp closed its massive Hovensa oil refinery in the US Virgin Islands, stunning nearly 2,000 workers on the island of St Croix. Plans also call for that Caribbean refinery to be converted into a fuel storage terminal.

– AP

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