Unofficial seal of the United States Congress
Image via Wikipedia

(CNN) — The midterm elections made it clear that Americans want a government that works for the people.

The 112th Congress will be faced with a choice: Work with the president and the people to deliver results, or pursue an obstruction agenda that will leave individuals and businesses with an even less sustainable economy and future than they face today.

If Congress chooses the collaboration path, members can tackle one issue that will enhance our national security, create jobs and help stabilize the climate –an issue with bipartisan roots that touches every corner of this nation: clean energy.

Our nation’s energy challenges are pressing and immediate. Unlike countries in Asia and Europe, the United States has neglected to join the global clean energy marketplace. We have no long-term clean energy plan, and so we have few domestic clean energy technologies or industries. While the world surges ahead, we risk being left behind, dependent on yesterday’s energy solutions to solve today’s energy challenges.

We know what steps to take. We must reduce our dependence on oil. The transportation sector alone is 95 percent dependent on oil. American taxpayers spend from $500 million to $1 billion a day on foreign oil, 39 percent of which is imported from “dangerous or unstable” nations, according to a Truman National Security Project report.

We must redouble our efforts to pass national clean energy and efficiency standards to meet our energy needs using homegrown, low-carbon sources. In turn, these actions will lower costs to consumers, create jobs, and spur an export market for innovative energy technologies.

We must use public dollars and the government’s credit enhancement power wisely, to leverage private capital for clean energy research, development, production, transmission, storage and deployment.

We must confront climate change, which jeopardizes our economic prosperity by leaving us acutely vulnerable to increased water shortages, widespread drought and floods, and food insecurity.

We can solve these problems. If the United States adopts a progressive energy strategy that combines market creation, financing for new industries and technologies, and infrastructure development, we can end our dependence on dirty fossil fuels, protect public health, and provide a solid foundation for economic growth and prosperity.

Even without comprehensive climate and clean energy legislation, the next Congress can take concrete steps to strengthen the U.S. market for clean energy, providing critical stability and certainty for investors, business, and consumers. These polices have all previously been introduced in the House or Senate, with bipartisan and business support. None will contribute significantly to the federal deficit.

Congress can:

— Spur clean energy innovation, manufacturing, deployment, and export through an ambitious renewable electricity standard, extensions of the successful Treasury grant program (1603) and Section 48c manufacturing tax credit, and by establishing a Clean Energy Deployment Administration (CEDA, or “Green Bank“) to leverage private sector investment for the deployment of clean energy.

— Encourage home and business owners to invest in energy efficiency and boost employment in the beleaguered construction sector by passing HOME STAR and Building Star. Those programs would reward consumers for installing energy-efficient equipment.

— Increase the $75 million liability cap for offshore oil damages, and pass other measures to enhance the accountability of oil exploration companies and give these companies an incentive to conduct their operations more safely.

The United States can and must also act on the international stage to limit the consequences of climate change and enhance our national security. Congress can show a commitment to the U.S. goal of reducing greenhouse gas emissions, take concrete steps to reverse widespread deforestation that contributes 18 percent of these emissions globally, and provide short-term financing to allow the poorest countries in the world to adapt to the impacts of climate change.

This is not a partisan agenda. The midterm elections reaffirmed that the clean energy agenda is a positive political agenda. In California, voters overwhelmingly supported the nation’s only cap-and-trade policy even in the face of a well-financed attack led by a coalition of out-of-state fossil fuel industries. In defeating Proposition 23, California voters across the political spectrum forcefully chose new technologies and new jobs over a retreat to last century’s polluted air and fossil fuel dependence — showing broad bipartisan support for the most comprehensive emissions reduction measures the country has ever seen.

Co-chairman of the “No on 23” campaign, former Secretary of State George Shultz said it best: “Those who wish to repeal our state’s clean energy laws through postponement to some fictitious future are running up the white flag of surrender to a polluted environment.”

In Michigan, voters elected Gov. Rick Snyder, who campaigned as a “good green Republican” who believes that “Michigan needs to be a leader in the innovative movement toward alternative and cleaner energy.”

The clean energy economy is here for the long term. This Congress must decide if America will lead it.

The opinions expressed in this commentary are solely those of the writers.

cnn.com

Don Wehby, Guest Writer

Bill Clinton last week reinvigorated the public discourse on the use of renewable energy in Jamaica. Solar energy, of which Jamaica is in abundant supply, is particularly important if we are to diversify away from imported sources of energy and become energy self-sufficient.

While much has been said about solar electricity over the past few years, actual usage has been slow to spread because of the large initial investment required and the scarce availability of financial incentives.

It currently costs somewhere between J$2 million to J$3 million to fully equip a three-bedroom house with solar-generated power. This puts solar systems out of the reach of the majo-rity of Jamaican homeowners.

4kW Aerial Shot
4kW job in Kingston. Jamaica

Although the upfront expenditure is burdensome, solar panels have a lifespan of 25 years or more and a minimum battery life of seven years. They are built to withstand 125-mile-per-hour winds and will start losing power after about three days of overcast conditions.

The payback period for solar investments is typically 6-8 years and can be sooner, depending on rising fuel costs, taxes on electricity (currently 10 per cent GCT in Jamaica) and foreign-exchange movements.

Despite these benefits, there are few incentives to invest in solar technology in Jamaica.

Currently, solar systems – including panels, batteries and inverters – are exempt from GCT and import duties.

The National Housing Trust (NHT) also offers low-interest “solar panel loans” of up to J$1.5 million for individual applicants and J$3 million for co-applicants. The interest rate ranges from 1 per cent to 7 per cent, depending on your weekly income, with a repayment period of 15 years.

The NHT also offers a solar water heater loan of up to J$250,000 at 3 per cent for 5 years. These loan options should be more aggressively marketed so that more Jamaicans are aware of their existence.

On the commercial side, the National Export-Import Bank of Jamaica has implemented a special credit line for manufacturers and agro-processors to establish alternative- energy systems at relatively low interest rates.

While these incentives are commendable, they are not enough to fuel a solar energy revolution in Jamaica. In fact, Barbados is the leader in the Caribbean in terms of structuring incentives to drive renewable energy adoption.

Homeowners receive significant income tax deductions for investing in systems and equipment that make their homes more energy-efficient and/or generate electricity from renewable sources.

Along similar lines, I recommend that the following provisions be added to Jamaica’s income tax code to encourage solar energy adoption among both commercial and residential property owners:

An individual owner of residential property who spends, inter alia, on energy saving or water-saving devices be entitled to a maximum deduction from yearly taxable income of up to J$1,000,000.

Up to J$250,000 can be deducted for expenditure related to a home energy audit and the purchase of any conservation materials or systems recommended in that audit. A home energy audit is defined as an evaluation by an authorised energy auditor of the energy consumption in a household to determine ways in which energy can be conserved.

Up to J$750,000 can be deducted for expenditure on the purchase or installation of ‘environmentally preferred products’. ‘Environmentally preferred products’ means pro-ducts that cause significantly less harm to human health or to the environment than alternative pro-ducts that serve the same purpose; or products, the consumption of which contributes significantly to the preservation of the environment.

A tax policy for commercial enterprises should also be implemented based on the following guidelines:

Up to 30 per cent of the capital cost of investing in renewable energy technologies can be deducted from profit before tax, with a maximum claim of J$20 million; and

Accelerated depreciation on qualifying environmentally preferred assets – for example, depreciation of up to 50 per cent of the asset in one year.

These tax incentives will drive adoption of solar technology at both the residential and commercial levels, helping to move Jamaica towards becoming self-sufficient in energy.

NET METERING HAS A ROLE

Finally, we need to reach a consensus with the domestic power company on the issue of net metering.

Net metering allows an electricity customer’s meter to run backwards if the electricity he or she generates is greater than that consumed, effectively banking the electricity until it is needed by the customer.

This provides the customer with full retail value for all the electricity produced and is used in more than 30 states in the US and widely throughout Europe.

Under Jamaica’s proposed net billing policy, an additional meter will have to be installed at the customer’s expense, and a much lower ‘avoided cost’ value is placed on surplus electricity despite it being generated in a more environmentally sustainable way. This is a financial disincentive.

Net metering will make the payback period on deploying solar technology shorter and is a matter of priority if we are truly serious about energy self-sufficiency.

At approximately J$25 per kWh of electricity, Jamaica’s energy costs are among the most expensive in the world – with adverse effects on our standard of living and productive capacity.

Let us use the reinvigorated public discussion to effect real change in how we incentivise renewable energy use.

Don Wehby is group COO of GraceKennedy Limited.

don.wehby@gkco.com

Jamaica Gleaner

The days of cheap natural gas are gone, Trinidad’s Minister of Energy and Energy Affairs Carolyn Seepersad-Bachan has said.

The low-cost sources of gas were fast depleting and it will cost more to find and extract new reserves, she said.

Seepersad-Bachan’s statement came in response to an appeal by Methanol Holdings Trinidad Ltd’s (MHTL) CEO Motilal Rampersad for governmental support in keeping MHTL competitive in the downstream energy industry internationally.

Rampersad spoke during the commissioning ceremony of AUM1 Complex at the Point Lisas Industrial Estate. The Jamaican government is relying on Trinidad to supply it with cheap natural gas as it looks to rely more on the commodity. This news will come as yet another set back to its energy policy. Already there are allegations of rampant corruption at its Petroleum Corporation of Jamaica (PCJ) and controversy surrounds the awarding of a contract for a liquified natural gas facility to the former head of the PCJ. Only this week, former President Bill Clinton called on Jamaica to use its natural resources of solar and wind and focus more on renewable energy rather than imports that cost around 10 per cent of GDP.

MHTL, one of the largest producers of methanol in the world, is a subsidiary of the CL Financial empire and is considered one of the most profitable entities in the financially troubled conglomerate. Finance Minister Winston Dookeran recently said MHTL may be divested and listed on the international stock market.

Seepersad-Bachan said while Government “is committed to the expansion of the downstream sector, we need, however, to accept that there is no more cheap gas available”.

She said, “Most of the explored acreage, the available low-cost sources of gas are depleting very quickly and, as a result of that, we are on an exploration drive.”

She said even in the current bid round just closed, Government expected the cost structures to go up and, as a result, production cost would rise.

“In addition to that, as we move further out into deep-water area, you recognise the high capital-intensive, high-risk areas that we’re dealing with and therefore, as result of that, gas prices will not be what [they] used to be.”

She said Government recognised the challenges gas-based projects face in terms of the cost structure and competitiveness and, as a result, Government will partner with the companies to identify creative and innovative strategies to address these challenges.

This, she said, is also why the National Energy Corporation of Trinidad and Tobago Ltd (NEC) has been requested to conduct a study to establish a framework for the execution of energy audits for plants in the Pt Lisas area.

“We want to encourage all of the industries based at Point Lisas to improve on their energy efficiencies because gas prices have been increasing significantly so it is a challenge that is faced by all.”

Last Tuesday’s function was to celebrate the completion of the US$1.7 billion project, the first for ammonia and urea plants that are integrated into a complex capable of producing third-stage downstream products of 60,000 metric tonnes per year of melamine and 1.5 million metric tonnes per year of urea ammonium nitrate solution.

The AUM ammonia plant was started in March 2009 and fully commissioned by June of the same year.

All other plants of the complex have been mechanically completed since March 2010.

Jamaica Observer

The decision to use Liquefied Natural Gas will not only affect the current generation, but also every future one. We are living at a cut-throat pace globally with times of reprieve occurring mainly when global catastrophes happen, like the current recession. In addition, there are several competing forces, including economic (for example, WTO legislation), environmental (for example, carbon credits regulations), nationalistic and regional affecting us

An unspecified amount of liquefied natural gas (LNG) exploded into the atmosphere after the top of a pressure-relief valve flew off during the offloading process at the Petrojam oil refinery in Kingston about 7 a.m. yesterday.

Winston Watson, managing director at Petrojam Limited, the national organisation which imports fuel, said some level of miscommunication took place between individuals on the ship and those ashore.

“One of the receiving vessels overfilled and the top of the valve flew off because of an excessive build-up of pressure. That’s what it’s designed to do when the pressure becomes too much,” he said.

Watson said that though this was an unusual occurrence, he did not feel that it would have any long-lasting environmental impact.

“The thing with LNG is when it enters the atmosphere, it expands, so a little bit of LNG may seem like a lot.”

Watson said one could compare the pressure-relief valves to that of a pressure cooker: as pressure increases, so do the chances the top will blow off in an attempt to relieve the pressure build-up and prevent major explosions.

Jamaica Gleaner

Bombay high
Image via Wikipedia

The Office of Utilities Regulations (OUR) contends that Jamaica will not only miss out on savings on fuel imports by switching to natural gas, but would have to spend over US$2.4 billion more to build new plants over the next 20 years if it wants to continue as “business-as-usual”.

In its Generation Expansion Plan drafted in August, the OUR examined three main expansion strategies

Middelgrunden offshore wind farm (40 MW) obser...
Image via Wikipedia

Adding another extracurricular to the checklist, Google is investing in a “mammoth” offshore wind farm along the Atlantic seaboard. The search giant is taking a 37.6 percent equity stake in the project, which will connect 6,000 megawatts of offshore turbines (or roughly 60 percent of the wind energy built in the U.S. last year). The project is called the Atlantic Wind Connection (AWC) and will connect wind turbines across a 350-mile stretch from New Jersey to Virginia. Here’s what we know about the project and why Google is undertaking it:

  • Google Is Just Getting the Ball Rolling, explains Erick Schonfeld at TechCrunch: “The entire project is expected to cost about $5 billion, but Google is only investing in the first phase to help get it off the ground (or, rather, out to sea). The first phase includes only getting the necessary governmental approvals and financing before the wind power line can actually begin construction. While it is the least expensive part of the process, it is actually the trickiest because of popular opposition to offshore wind farms in general. Other investors include Good Energies and Marubeni Corporation.
  • It’s Great PR, writes Seth Weintraub at Fortune: “Projects like these aren’t just to make the electricity that Google needs more reliable and less expensive (and a return on their investment), it also helps foster an environmental image for Google which is much more valuable than any profits they’ll receive.”
  • They’ll Never Have to Worry About Blackouts, writes Chris Dawson at ZDNet: “It isn
Electricity Pylon, crossing lines
Image via Wikipedia

The Office of Utilities Regulation (OUR) has invited bids from twenty-eight local and international companies, including the Jamaica Public Service Company Limited (JPS), to supply 480 megawatts of new generating capacity.

This is the largest block of generating capacity ever sought by the OUR and it’s intended to: allow for the displacement of old and inefficient generating plants; provide for growth in demand and improve the efficiency of the overall electricity generation system.

The installation of the new generating capacity is scheduled to be carried out in two phases. The first 360 megawatts is scheduled to be installed by 2014 while the remaining 120 megawatts is to be installed by 2016.

The Request for Proposals (RFPs) seeks to achieve the goals of ensuring that Jamaica improves its energy efficiency in generation, contribute to fuel diversification which will impact energy security and most importantly, positively impact the affordability of electricity. The request coincides with the initiative taken by the Government to introduce natural gas as the fuel of choice for electricity generation and for the mining sector as outlined in the 2009 – 2030 National Energy Policy.

The RFP was issued on September 30, 2010 and bids are to be submitted no later than January 7, 2011 in keeping with the schedule outlined in the bid document.

Jamaica Observer