PUBLICLY listed companies reported mixed performance during the first three months of 2012.
The overwhelming majority to have posted results so far managed to get better revenues than in the first three months in 2011.
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Shelly Tomblin, the new head of electricity utility JPS, had to report disappointing results less than two months into her new job. |
But almost half of the 28 companies examined by the
JAMAICA should pursue the investment opportunities presented by renewable energy rather than focus on fossil fuels like LNG, says a global think tank.
“There is great potential for local economies in investing in renewable energy,” said Mark Konold, head of the Washington-based Worldwatch Institute, which is identifying opportunities for low-carbon, energy developments in the Caribbean.
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Caribbean Project Manager for the Worldwatch Institute Mark Konold says Jamaica should invest in its untapped energy potential. |
Worldwide figures for investment in renewables has shot up steadilly, said the organisation. Countries around the globe put over US$200 billion ($17.4 trillion) into non-carbon-based energy projects last year, as compared to the US$40 billion invested in oil, coal and gas.
Developing nations have led the pack in financing these projects, underscoring the growing recognition of how the cost of traditional energy sources eat into a country’s GDP, said Konold.
“Acting rapidly and ambitiously will not only serve social needs, it is also an economically superior approach to ‘we’ll wait and see’,” he said. Being more aggressive up front, taking more action immediately, “gets more results than being cautious”.
The government’s target for increasing the use of renewable energy to 30 per cent by 2030 is a ‘bold’ move, said Konold, as long-term vision is necessary to foster growth in the industry.
“If I’m an investor, I know how long this project will be and that lets me know how well it will do for me economically,” he said. “That kind of certainty is important.”
Konold is head of the Worldwatch Institute’s assessment of the energy sectors in Jamaica, Haiti and the Dominican Republic, which is aimed at helping the countries reduce dependence on fossil fuel imports. His group will present a low-carbon energy roadmap for Jamaica to the ministry of energy, which will focus on the underuse of natural resources such as solar and wind power.
The market alone cannot lead the process, Konold said, underlining how important it is that the Government be streamlined.
“Government has to play a very strong role,” he said. “For example, Germany doesn’t have as many natural resources as Jamaica, but renewable energy has succeeded there because of strong leadership in terms of policies.”
The group will be back in Jamaica before the end of the year to present their findings to the ministry. The project
NEW YORK – The price of oil is holding near seven-month lows following warnings of a “severe recession” in Europe and easing tensions over Iran’s nuclear program.
Benchmark US crude lost 13 cents to US$92.44 per barrel in morning trading in New York while Brent crude added 27 cents to US$109.08 per barrel in London.
Oil prices have declined almost every day this month as political changes in Greece and France threatened existing plans to fix the eurozone economy. The Organisation for Economic Cooperation and Development says Europe, which consumes 18 per cent of the world’s oil, could fall into recession this year if leaders fail to stimulate the economy
Meanwhile, analysts say Iran‘s oil exports could keep flowing if it lets international inspectors into its nuclear facilities as part of a new deal.
By early afternoon in Europe, benchmark oil for June delivery was down 44 cents to US$92.13 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose US$1.09 to settle at US$92.57 in New York on Monday.
In London, Brent crude for July delivery was up 14 cents at US$108.95 per barrel on the ICE Futures exchange.
Crude has slumped from US$106 earlier this month on fears that global economic growth might slow more than expected this year. In Europe, government austerity measures meant to lower debt have been crippling growth in many large economies like Italy and Spain.
Also hurting energy prices yesterday was a rise in the dollar, which tends to push down oil prices by making crude more expensive for investors trading in other currencies. The euro slipped to US$1.2758 from US$1.2793 late Monday in New York, while the dollar rose to 79.77 yen from 79.36 yen after Fitch lowered Japan’s sovereign debt rating.
Meanwhile, the head of the International Atomic Energy Agency, Yukiya Amano, said Tuesday that Iran had agreed to let IAEA inspectors to resume their investigation into its nuclear program. On Wednesday, talks are set to start in Baghdad between Iran and six world powers about the country’s uranium enrichment efforts and its suspected intent to develop nuclear weapons. Prices had risen in previous months due to international tensions over Iran, which had threatened to block oil shipments out of the Persian Gulf.
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PRIME Minister Portia Simpson Miller has reiterated her administration’s commitment to the integrated use of renewable energy to develop the economy and eradicate poverty.
The prime minister gave the assurance at last Wednesday’s opening of the joint University of Technology (UTech)/German Embassy Sustainable Energy Conference and Exposition at the institution’s Main campus in St Andrew
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“The choices we have to make are very clear. The current level of energy consumption is unsustainable,” she said, noting that the introduction of LNG as a part of a short to medium-term plan to diversify the energy supply mix is proceeding apace.
Simpson Miller told the gathering of stakeholders in the energy industry, ministry officials and members of the diplomatic corp at UTech’s Alfred Sangster auditorium that a small developing country such as Jamaica cannot expand its productive capacity, attract business and ensure the well-being of its people, with the unprecedented increases in the cost of energy annually.
“Next to debt-servicing, the cost of energy represents our greatest outflow of foreign exchange, and the outlook is for this to worsen,” she said.
She said the Government has set itself a very ambitious goal to see renewable energy sources making up 30 per cent of the national energy mix by the year 2030.
“We have embarked on a clear path for introducing and encouraging the development of the renewable energy sector,” Simpson Miller noted.
She said that she will also be closely monitoring energy consumption in the Office of the Prime Minister (OPM) under the Public Sector Energy Efficiency and Conservation Programme, which is in partnership with the Inter-American Development Bank, and is currently underway.
Under the programme, government ministries and agencies will have set targets by which they will be required to reduce their consumption. The OPM was one of the first government buildings to be retrofitted.
Germany’s Ambassador
TEHRAN You monitor your electricity consumption daily, yet your electricity bill continues to climb unabated. Perhaps you have tried extreme cost-cutting measures, but the frustration continues to mount. Your electricity bill is just too high! Solarbuzz Jamaica can help you achieve a desired level of energy efficiency. They recommend installing an Owl Electricity Monitor in your home or business which allows you to see and monitor your energy consumption. The monitor is plugged into your breaker panel and shows you how much energy each appliance in your home or business is using. For a one-time charge of $24,000 (including installation and GCT), within the first month, you are able to see at least a 20-30 per cent decrease in your electricity consumption. According to Jason Robinson, chief executive officer of Solarbuzz Jamaica, people who have installed the product become more conscious of the energy usage of each appliance and begin to cut back on their energy cost. Monitor usage “For each day of the week, you can monitor how the energy is used. The monitor can be connected to a computer, which can help you to analyse the data. By analysing the data, persons can see what is costing them the most and make changes,” Robinson said. The company, which is focused primarily on providing solar energy, recommends that people try to cut back on energy consumption before making the bold step to install solar-energy panels. Robinson said, initially, energy usage in the home or business must be determined, and whether a solar panel can be installed at the facility. “Depending on how much usage is accumulated per day, we can determine the size of the system. Once we know the energy usage, we can start putting together the equipment – including the panels, inverters, electrical – and the labour cost,” Robinson said. Solar systems can range from $800,000 to $1.5 million for a small house, and depending on the energy usage, can also range from $4 million to $5 million. There is a 25-year warranty on the panels, and the other components can last up to 12 years. A minimum maintenance fee is charged each year. Robinson also recommends that people have their electrical breakers analysed and cleaned regularly – at least once per year. He said energy can be lost when the breaker panel is not efficient. “The breaker panel is like the engine of the home or business. It needs to be maintained. We label each panel for persons to know where each breaker is connected, so in case of an emergency, they will know which area in the house they are turning off,” Robinson said. He said to add a solar system or even the Owl Energy Monitor, the breaker panel must be cleaned. Some, he said, were not installed properly, while others are crammed and become hard to service or clear. He added that many breaker panels are overloaded and that causes it to ‘trip’ out all the time. Solarbuzz Jamaica also provides wind power solutions. They also install anemometers and let their clients know if the wind speed is sufficient for a wind turbine to be installed. The company also installs pool and pond energy solutions that use up to 80 or 90 per cent less energy. The costs vary, but can go up to US$2,000 (J$174,000). Contact Solarbuzz at The government has signed a deal with Canadian oil and gas exploration company, Fagres, to begin the process of drilling for oil in Jamaica come next year. Energy is set to wreck the weak CARICOM. Energy is a ball and chain hobbling the Jamaican economy. Energy, if it is true that human action is the principal cause of global warming and climate change from global warming, is set to wreak havoc upon the entire planet. Omar Azan, a former president of the Jamaica Manufacturers’ Association, in a blistering speech last week, said government-subsidised electricity cost in Trinidad & Tobago was giving an unfair advantage to that country’s manufacturers in CARICOM trade. At US$0.05 per kilowatt-hour, the cost of electricity in T&T is some six times lower than the cost of electricity in Jamaica. Azan has threatened to lock down the country over the issue. Others have been openly advocating that Jamaica should withdraw from CARICOM. Meanwhile, a powerful coalition of private-sector companies has been shouting, through expensive advertisements, that the cost of electricity has increased by 135 per cent since 2001 and advising us to “pull the plug on high light bills”. Exactly how to pull the plug has been left unspecified, like the Azan lockdown of the country. Citizens United to Reduce Electricity (CURE) has gone the unprecedented route of taking action in the Supreme Court to test the legality of the Jamaica Public Service Company (JPS) all-island monopoly. CURE is asking the court to declare null and void the licence granted in 2001 by the energy minister and renewed in 2007. The licence, according to the claimants, is in breach of Section 3 of the Electric Lighting Act of 1890. CURE attorney Hugh Wildman is arguing that under the act, and in particular Section 3, the island is broken up into areas over which the responsible minister may grant a licence to either the local authority or a private company to generate and transmit electricity. “What is not permissible under Section 3, or any other section of the act, is an exclusive licence over the entire island. A licensee or undertaker is confined to the particular area over which a licence is granted,” Wildman submits to the court. “The language of the legislation,” he points out, “throughout speaks in the plural, that is, undertakers and not undertaker. The legislation clearly expressed in no uncertain terms that there must be several undertakers generating and transmitting electricity throughout Jamaica. The concept of exclusivity is unknown to the legislation.” And with respect to the Office of Utilities Regulation, Wildman said Section 4(3)(i) of the Office of Utilities Regulations Act At least one expert has serious concerns about the Jamaica Public Service Company Ltd’s (JPS) plans to build the country’s first liquefied natural gas (LNG)-fired plant at a cost of J$52 billion in St Catherine. The 360-megawatt plant is touted to reduce the country’s electricity bill by 30 per cent. Denzil Williams, head of the Department of Management Studies at the University of the West Indies, Mona campus, said he was not convinced this was the right move because if it backfires, it could cost Jamaica dearly. Serious issues to consider “If we get LNG going and if we build this plant, then we can see some savings in our electricity bill but, when you go into the details of it, you recognise that it is not just about building the plant, but there are some more serious issues we have to consider,” he noted. Speaking during a public forum on ‘The Budget, The Debt, The Future’ hosted by Jamaicans United for Sustainable Development at the Department of Management Studies at the University of the West Indies last Thursday, Williams said there were some critical questions that needed to be considered. “What if LNG does not come to Jamaica? What if there is a disruption in the supply of LNG? What is the backup fuel if LNG fails?” he asked. He said at this stage, there was no clear indication if these things were considered by the relevant authorities and if an effective backup plan was in place. “If we do not secure that source of LNG and get it over on this part of the shores and they have to use that combine cycle gas turbine plant to power electricity later on, we will be in a more dangerous position than before. Because we will be using a much more expensive backup fuel, as the combine cycle gas turbines can only use automotive diesel oil,” said Williams. He said the Office of Utilities Regulation should publicly address these concerns. http://jamaica-gleaner.com/gleaner/20120521/lead/lead4.html ELEVEN PERSONS yesterday collected the first batch of net billing licences offered by the Government that will allow them to sell the excess electricity they generate to the national grid. Energy Minister Phillip Paulwell, who handed out the licences, said having installed a solar-energy system at his home, he intended to apply to his ministry for a licence. “My PV (photovoltaic) system is fully up and running and I am now anticipating my JPS (Jamaica Public Service Company) bill later this month,” said Paulwell, who was speaking at a meeting of the Jamaica Energy Council held at Jamaica House yesterday. Under the net billing system, licensees are expected to see huge reductions in their electricity bills after balancing the amount owed for energy used and what is earned from the excess energy sold to the grid. “The bill from JPS is netted against the bill from the production and at the end of the month, the net bill to the customer,” explained Hopeton Heron, deputy director general at the Office of Utilities Regulation (OUR). “At the end of three months, you will see whether you owe JPS or JPS owes you and a cheque is cut somewhere to settle the matter,” he added. The system will be governed by a five-year standard offer contract that each licensee is required to sign. Addressing concerns about the impact of adding new facilities to the grid, Heron said for the next two months, the OUR will be conducting a pilot project that will limit the new connections to two per cent of the existing capacity. Paulwell said he hoped this would encourage more Jamaicans to come forward and apply for licences as “the Government looks to enlarge its ambition in relation to renewable energy“. http://jamaica-gleaner.com/gleaner/20120519/lead/lead2.html
