Early indications from the Jamaica Public Service (JPS) have pointed to a breakdown in its protection systems as the most likely cause of the islandwide power outage that occurred over the weekend.

While the company has said that more fulsome investigations into the issue will take time, it has confirmed that the outage was triggered during scheduled maintenance work at the Port Authority of Jamaica (PAJ) substation in Kingston.

“The scheduled work was part of ongoing system improvements being done by JPS to our power delivery (transmission and distribution) network,” Winsome Callum, director of corporate communications at the power company, said in an emailed response to The Gleaner.

Breakdown In Operating Procedures

According to Callum, initial investigations have revealed that there was a breakdown in the implementation of the established operating procedures for the work being done. This, she said, triggered a system fault that led to the outage.

“Preliminary indications are that the first level of the protection system did not operate as expected. As a result, several units at our power plants went offline. The network, in turn, shut down to protect itself from possible damage,” she said in explaining the failure on the protection system.

The protection system is a built-in mechanism on the national grid which is designed to safeguard against procedural errors.

“The protection system is designed to operate at different levels, ranging from isolating areas with a fault all the way up to the ultimate protection being to shut the entire electricity network down in the event of a major system fault,” the power company said.

The electricity supplier has indicated that in the coming days, its investigations will be focused on evaluating why the protection mechanism did not operate as expected.

The power company said it has already taken corrective measures and will be investing in system upgrades to create what it describes as a self-healing grid.

In the meantime, the Office of Utilities Regulation will today meet with executives of the JPS to discuss details of the ongoing investigations into the power outage.

The utility regulator wrote to the company yesterday requesting a preliminary report into the incident.

Callum confirmed that Energy Minister Dr Andrew Wheatley was provided with a preliminary overview on the outage and was to receive an initial report yesterday.

Gleaner

Winsome Callum

Early indications from the Jamaica Public Service (JPS) have pointed to a breakdown in its protection systems as the most likely cause of the islandwide power outage that occurred over the weekend.

While the company has said that more fulsome investigations into the issue will take time, it has confirmed that the outage was triggered during scheduled maintenance work at the Port Authority of Jamaica (PAJ) substation in Kingston.

“The scheduled work was part of ongoing system improvements being done by JPS to our power delivery (transmission and distribution) network,” Winsome Callum, director of corporate communications at the power company, said in an emailed response to The Gleaner.

 

Breakdown In Operating Procedures

 

According to Callum, initial investigations have revealed that there was a breakdown in the implementation of the established operating procedures for the work being done. This, she said, triggered a system fault that led to the outage.

“Preliminary indications are that the first level of the protection system did not operate as expected. As a result, several units at our power plants went offline. The network, in turn, shut down to protect itself from possible damage,” she said in explaining the failure on the protection system.

The protection system is a built-in mechanism on the national grid which is designed to safeguard against procedural errors.

“The protection system is designed to operate at different levels, ranging from isolating areas with a fault all the way up to the ultimate protection being to shut the entire electricity network down in the event of a major system fault,” the power company said.

The electricity supplier has indicated that in the coming days, its investigations will be focused on evaluating why the protection mechanism did not operate as expected.

The power company said it has already taken corrective measures and will be investing in system upgrades to create what it describes as a self-healing grid.

In the meantime, the Office of Utilities Regulation will today meet with executives of the JPS to discuss details of the ongoing investigations into the power outage.

The utility regulator wrote to the company yesterday requesting a preliminary report into the incident.

Callum confirmed that Energy Minister Dr Andrew Wheatley was provided with a preliminary overview on the outage and was to receive an initial report yesterday.

andre.poyser@gleanerjm.com

The Gleaner

As investigations continue into the power outage that blanketed the entire island on Saturday evening, chief executive officer (CEO) of the Jamaica Public Service Company (JPS) Kelly Tomblin has promised to be open and transparent with the public about the findings of the probe.

“The only thing I know for sure is that the process was not followed one hundred per cent. I don’t know completely why that resulted in a system-wide outage. That is what my team is working on today, and that is what we are going to continue to talk to the press about. We have nothing to hide,” she said in an interview with The Gleaner yesterday.

Jamaica’s sole power distribution company said the outage was caused by a “procedural error, which resulted in a number of generating units going off-line simultaneously”.

In a release to the media, the electricity supplier said it has started its investigations and would provide further details on the cause of the outage today.

Minister of Science, Energy and Technology Dr Andrew Wheatley was swift in expressing displeasure with JPS because of the blackout.

“Let me categorically state that I am not at all happy with this latest incident and I find the inconvenience to the people of Jamaica and the many businesses affected totally unacceptable,” he said in a statement.

CATASTROPHIC FAILURE

Arguing that “islandwide power outages of this nature should not occur as there ought to be processes, procedures, and adequate redundancies in the grid to mitigate such a cascading set of events that would result in a catastrophic failure of this kind”, Wheatley said that he has requested that JPS submit a preliminary report on the cause of the blackout to his office today and a full report by Thursday.

Tomblin indicated that she was having numerous meetings with her technical team and was in the process of preparing a preliminary report to be submitted to Wheatley.

The JPS CEO was forthright in shedding light on the nature of the “procedural error”, which is believed to have caused the outage. She explained that the company’s technical team was still working to put together a more fulsome analysis of the outage.

“We know there was an operational error, but that does not explain something else, which will take some time to figure out. It looks as though there was a technical procedure done on the Hunts Bay station that was not completed one hundred per cent according to process, but that should not have resulted in the collapse of the system, so we have to look to see if it’s a design or engineering issue, but I don’t want to jump the gun and give inaccurate information at this stage,” she said.

In April, the country was also plunged into an islandwide power blackout. The light and power company later said that that outage was caused by problems because of work that was being done on two major power lines in the Three Miles area of Kingston.

Gleaner

Australia’s treasurer on Friday formally blocked Chinese bidders from leasing a Sydney electricity grid, saying the deal would not have been in the nation’s best interest.

The announcement by Treasurer Scott Morrison comes one week after he announced preliminary plans to ban Chinese state-owned State Grid Corp and Hong Kong-registered Cheung Kong Infrastructure Group from bidding for a 99-year lease over a 50.4 per cent stake in Ausgrid due to classified national security reasons.

Morrison’s initial announcement prompted criticism from China and accusations from some in Australia that his decision was made to appease influential lawmakers with xenophobic views – a critique the treasurer has rejected as false.

“In making this decision, national interest concerns have been paramount,” Morrison said in a statement on Friday, without elaborating on what those concerns were.

Last week, China’s state-run Xinhua News Agency criticised Australia for rejecting the bid along with Britain’s recent move to delay a decision on a new nuclear power plant backed by Chinese investment. The agency said that although China’s “dramatic development, huge population and unique culture” may cause concern for some countries, it could also result in “China-phobia”.

The Chinese Embassy noted this is the second time this year that the government has decided not to back applications by Chinese bidders to invest in Australia. It said this shows “a clear protectionist tendency and would have serious impact on the enthusiasm of Chinese firms which want to come and invest in Australia”.

The deal for the New South Wales state-owned electricity network would have earned more than A$10 billion (US$7.6 billion). On Friday, state Premier Mike Baird said he was irritated by Morrison’s decision, saying it would delay the sale.

“My frustration is that this should have been determined much earlier,” he told reporters. “What we need to do now is get on with the job.”

Chinese foreign investment, particularly from state-owned companies, has become increasingly contentious in Australia as China takes a more aggressive stance in territorial disputes in the South China Sea.

Last week, Bob Carr, director of the Sydney-based Australia-China Relations Institute and a former foreign minister, accused the treasurer of bowing to the wishes of anti-establishment lawmakers who gained from the country’s general election last month.

Morrison’s decision was welcomed by Pauline Hanson, leader of the One Nation party that has four senators who oppose Asian and Muslim immigration as well as trade liberalisation. They and other lawmakers not aligned with either of the country’s major parties oppose Australia’s free-trade deal with its biggest trading partner, China, and want tighter foreign investment rules.

Gleaner

Screen Shot 2016-08-23 at 15.28.29

Malvern, St Elizabeth — Eighteen months after ground was broken, the 36.3-megawatt wind farm run by BMR Jamaica Wind at Potsdam, Malvern, high in the Santa Cruz Mountains, was formally commissioned in mid-August.

Priced at US$89.9 million, the wind project, located across the road from another wind farm run by light and power company Jamaica Public Service Company (JPS), is being described as the single largest investment in St Elizabeth since construction of the Alpart alumina plant at Nain in the late 1960s.

The BMR project includes eleven wind turbines, which will provide energy to JPS’s national grid at US12.9 cents per kilowatt-hour.

BMR Jamaica Wind is a subsidiary of US-based BMR Energy. Guests at the recent formal commissioning were told that billionaire British investor, Sir Richard Branson — who turned up for the commissioning — was in the process of acquiring BMR through his wide- ranging and far-flung Virgin Group.

Branson, who triggered laughter by ripping up and throwing away what he said were his speaking notes, told his audience that his motive for the acquisition was to promote a clean energy revolution.

“I decided recently that we needed to get one or two core (clean energy) companies under our belt so that we can actually get out there and speed up this revolution …” he said.

“ We were delighted to acquire BMR and we will be out there trying to hustle and bustle governments all over the Caribbean and other countries to hurry up towards carbon neutrality by 2050. Personally, I don’t need to make money out of it, if it makes a bit of money, fine; if it doesn’t, fine. I just want to get the wind out there get the solar out there, … be powered by sun, wind, sea… a green energy revolution and bring the cost of energy down for everybody; get rid of the dangers of coal and oil and the dirty energies that we are using today… ” said Branson, founder of the Virgin Group.

Funding for the BMR project in Malvern was sourced through a package including a US$42-million loan from the US quasi-government investment agency Overseas Private Investment Corporation (OPIC), which pushes US overseas investment globally; US$10 million from the International Finance Corporation (IFC), which promotes private sector development; US$10 million from the IFC-Canada Climate Change Programme and equity investment of US$26.9 million from BMR Energy.

Jamaica’s energy minister Andrew Wheatley said the BMR wind farm formed part of the government’s drive to significantly reduce reliance on fossil fuels and reduce the current annual oil bill of about US$2 billion. Ninety-two per cent of Jamaica’s energy needs are currently met by oil imports, he said.

The project was in line with the target of 30 per cent renewables in the national energy mix by 2030, as stated in the National Energy Policy, and in keeping with Vision 2030 Jamaica, the minister said.

“Projects like BMR continue to establish Jamaica as a clear renewables market leader within the Caribbean. By the end of this year, we would have added 80 MW of renewable energy to the national grid, through Wigton III (a wind farm at Rose Hill in southern Manchester), Content Solar (solar plant in Clarendon), and this facility,” Wheatley said.

Bruce Levy, president of BMR Energy, said the company had plans to expand the wind farm at Malvern by an additional three wind turbines. Small farmers would co-exist with the energy-generating operations, he said.

Jamaica Observer 

Screen Shot 2016-08-19 at 12.16.19

As LNG partner New Fortress Energy begins shipment of liquefied natural gas to the island, power distributor Jamaica Public Service Company (JPSCo) is indicating that savings will depend on pricing, which varies from month to month.

Chief Financial Officer of the Jamaica Public Service Company (JPSCo) Dan Theoc told the Jamaica Observer: “The cost of LNG at Bogue is likely to be cheaper than the cost of oil next month (September) when Bogue is expected to come on line.”

But, based on current price differentials and the fact that Bogue will only represent approximately 12 to 15 per cent of the generation mix, it is expected that total savings — based on this price differential – will be marginal (less than five per cent), all other things remaining equal, Theoc told the Business Observer.

Spot prices for LNG on the Henry Hub (HH) index registered US$2.82 per million Btu in July after starting the year at US$2.28 in January and falling to US$1.73 in March.

Crude, on the West Texas Intermediate index, started the year at US$30.32 per barrel and crested at US$44.65 in July.

“Unfortunately, we cannot say definitively what the impact of natural gas will be in the future because of the volatility in oil prices relative to natural gas prices,” Theoc said.

JPS will be buying natural gas from Fortress under a 20-year exclusive gas supply agreement and they will be responsible for all of the supply chain logistics and infrastructure costs.

That includes the mode of delivery to the island, the frequency of delivery, the storage of the LNG, the regasification and the distribution by pipeline to the property.

Theoc noted, “We will pay for gas based on the Henry Hub Index plus an agreed margin (which we cannot disclose), similar to how we buy fuel today from Petrojam based on the US Gulf Average Mean Index plus an agreed margin.”

In general, he added, “It is worth noting that the HH index in the past five years has been far less volatile compared to Oil-based Indices (like US Gulf, WTI and Brent Crude), so we view the move to HH as being a plus for price stability.”

It is expected that Bogue will actually make up 12 to 15 per cent of the generation mix on natural gas and that when the 190MW plant in Old Harbour comes on line in 2018, approximately 40 per cent of our generation mix will be based on gas-fired power plants.

In general, it is expected that renewables penetration will increase from five per cent in 2015 to 12 per cent by 2018.

The consequence, Theoc said, will be an improvement in fuel diversity from a situation where 95 per cent of production was oil-fired last year to a situation where less than 50 per cent is fired by oil.

The CFO said the pending award of a gas project to Jamalco will also potentially increase the percentage of generation units which are fired by natural gas by about ten per cent to further replace oil-fired units by 2019.

Jamaica Observer 

An explosion that killed at least 21 people and injured five others last Thursday at a coal-fired plant in central China has not gone unnoticed by consulting mechanical engineer Howard Chin.

He has argued that the incident should give the Jamaican authorities cause for pause with regard to a proposal from the Chinese to build a 1,000-megawatt coal-fired plant at the Alpart alumina refinery which has been acquired by Chinese firm Jindal Iron and Steel Company Ltd (JISCO).

“China has a reputation for explosions at its coal-fired plants because the safety standards are not very well regulated, so Jamaica could face that risk … . If you look at the North-South Highway, the Chinese did a quick slab job on that one. They didn’t do proper studies for that project, if you ask me. So I think these coal plant explosions in China should be instructive for Jamaica,” he said in an interview with The Gleaner.

Chin, who is a former president of the Jamaica Institution of Engineers (JIE), explained that explosions in coal-fired plants are generally caused by improper welding.

According to Chin, the fact that the Chinese do not adhere to international welding standards, for the boiler and pressure vessels that would be used in the coal-fired plant, established by the American Society of Mechanical Engineers (ASME) that could result in improper welding. And improper welding could lead to deadly explosions, similar to those that occur in China. A lack of sufficient ASME certified welders in Jamaica is also seen as problematic.

 

CAUSE OF THE FIRE

 

Last Thursday’s explosion at the coal-fired plant in the Hubei Province of China was caused by a faulty high-pressure steam pipe which went bust. The Dangyang-based plant was still under construction when the explosion occurred.

The former JIE president raised further questions about what he described as a number of defects that would be associated with the proposed coal-fired plant.

“There is the matter of the ash. Where are you going to put all the ash? It’s possible you can put it all in cement, but that would require a cement plant to be built to take all that ash, because of lot of ash will be generated. There is also cooling water that will be needed, and the only water source that is near there is the Black River and if you cool the plant using the Black River, you are going to kill the fish in that river with all the heat, so I don’t think that is a good idea,” he said.

andre.poyser@gleanerjm.com

 

The Gleaner

Diana McCaulay

Jamaica will pay dearly in terms of the health of its people and the environment if the new owners of the Alpart bauxite facility in Nain, St Elizabeth, are allowed to build a proposed 1,000 megawatt coal-fired power plant, according to the Jamaica Environmental Trust (JET).

The organisation yesterday registered its strong opposition to the proposed energy source “due to the harm to human health and climate posed by coal-fired power plants”.

“Rethink this harmful project,” Diana McCaulay, JET’s chief executive officer, appealed to Prime Minister Andrew Holness, the portfolio minister for environmental issues.

She went on to argue some of the potential negative impacts of the various greenhouse gases discharged into the atmosphere by coal-fired plants, which are being phased out in developed countries.

“The pollutants from coal-fired plants that pose significant risks to human health are sulphur dioxide, nitrogen oxides, mercury, and particulate matter. Sulphur dioxide is a trigger for asthma attacks and combines with water vapour to form acid rain, which will also affect crops and soil health in the farming parish of St Elizabeth and beyond,” JET said in a release.

“Nitrogen oxides are a precursor to smog and increase the likelihood of respiratory ailments such as wheezing, coughing, colds, flu, and bronchitis.”

JET continued: “Mercury is a neurotoxin associated with irreversible IQ deficits and neurobehavioral pathologies. Particulate matter, also called PM or soot, consists of microscopically small, solid particles or liquid droplets suspended in the air. The smaller the particles, the deeper they can penetrate into the respiratory system and the more hazardous they are. There is a robust association between daily rates of human mortality and levels of particulate matter even when levels are below air-quality guidelines. Emissions of these pollutants can be reduced with modern equipment, but this type of coal plant is not cheap to build and does not produce cheap electricity.”

Mining Minister Mike Henry recently announced the sale of the old Alpart plant to the China-based Jiuquan Iron & Steel (Group) Company Limited (JISCO).

He said JISCO would be investing US$2 billion to establish an industrial zone at Nain, employing more than 3,000 people.

It was announced that the industrial zone would comprise bauxite mines, an alumina refinery, a coal-fired power plant, a local electricity network, rolling wire mills, and a range of aluminium products, among other enterprises.

The Government’s consideration of coal-fired power generation is also a matter of concern for Clifford Mahlung, project administrator at the Climate Change Division in the Ministry of Economic Growth and Job Creation.

“There are other options out there I would have preferred, but they come at a cost,” he told The Gleaner yesterday.

“I’m figuring that is probably the most cost-effective way of achieving what they want from the plant. But, yes, the emissions are of concern, and so we hope that the impact will be minimised as much as possible so that we can be proud of that plant.”

However, yesterday, Energy Minister Dr Andrew Wheatley said no application had been made for construction of a coal-fired plant in St Elizabeth.

“There was no approval or anything like that done. They need to get their facts straight before they comment,” Wheatley told The Gleaner/Power 106 News Centre.

Mahlung explained that while construction and operation of a coal plant would not be a breach of climate-change conventions, it could fly in the face of Jamaica’s commitment to reduce greenhouse gas emissions by the equivalent of 1.1 million metric tons of carbon dioxide per year by 2030.

While carbon capture and underground storage of the pollutants is an option, Jamaica does not have the technology, which would involve the use of large underground caves consistent with the size of the Green Grotto Caves in Discovery Bay, St Ann.

However, that does not seem a practical option in light of the country’s geological formation, which is mainly limestone, which is very porous.

“So it can’t keep the CO2 (carbon dioxide) underground … . Maybe they can find a way to capture that CO2 and transport it to somewhere else in the island. But all of this is at a cost to store it if that technology becomes possible, but these would add to the cost.”

christopher.serju@gleanerjm.com

The Gleaner

JMMB Group Limited will spend US$420,000 ($53 million) on a solar energy system to power various offices across Jamaica this year.

The project forms part of a wider move by JMMB to reduce its carbon footprint.

“We plan to implement this on a location-by-location basis, with the first implementation taking place at one of our locations in Kingston, in the coming months. The cost is as stated, US$420,000,” the financial conglomerate told the Financial Gleaner.

JMMB estimates the project payback period will span just about five years based on expected energy savings.

The solar plant will generate up to 293,935 kilowatts, hours of electricity per year with the use of clean renewable energy.

“The system is expected to save the company US$90,000 annually, and reduce oil energy dependency by 34 per cent,” JMMB said in its newly released annual report for year ending March 2016.

Roughly three years ago, JMMB embarked on a company-wide initiative coined ‘Go Green’, with one of the primary objectives to change the group’s energy practices in a way that was more environmentally friendly and cost-efficient.

“This investment in a grid-tied solar system is just another step in the direction of making us even more efficient at how we use energy,” the company said via email.

A grid-tied solar system is one where the system itself is tied to the external electricity grid, as opposed to batteries.

“In other words, the system uses the sun to generate our electricity needs, with any unused electricity going back to the external grid, as opposed to being stored in batteries,” said JMMB.

JMMB expects the project to expand over time through exploration of other renewable resources to all JMMB Group locations, where possible.

JMMB Group made $2.3 billion profit off $10.42 billion of net revenue in FY2016.

Gleaner

A smart meter is seen on display at the launch.         Ricardo Makyn

The Jamaica Public Service (JPS) launched their nationwide smart meter roll-out at the JPS headquarters on July 7.

According to President and CEO of JPS Kelly Tomblin, “the future of energy is bright… Jamaica and JPS are embedded in a phase of unprecedented progress”. Gary Barrow, chief technology officer at JPS, underscored the importance of smart meters and the benefits to the current national grid.

“We’re actually putting more intelligence in the grid to provide the stability and reliability that is going to be necessary when we start to integrate mass amounts of these renewables and that is really the start of our smart grid, the primary driver,” he said. “This year, we’re going to be launching three applications … those are going to be smart-phone applications.” On these applications, customers will be able to get outage notifications, restoration times, and real-time consumption and see their bill online and pay it.

“All of our appliances in a short while will become Wi-Fi-enabled and it will mean that you will be able to use your smartphone wherever you are, whatever time, to actually look at your devices, to get access to your devices and turn them on and off,” he said. The company is also investing in other smart grid technologies and services, including smart LED street lighting, smart parking and smart vehicle-charging stations for electric vehicles. This is all part of building a smart energy economy.

A pilot programme was launched three years ago in sections of the Jacks Hill and Barbican communities and Barrow said the company learned much from both customers and on the technical side.

“Already, we have over 50,000 smart meters in the field right now that we’re able to control remotely and we’re able to get usage patterns, but we don’t have the software that actually allows our customers to dial in.”

This year, the company is targeting to roll out over 20,000 smart meters on that network at a cost of approximately US$5 million. Seven parishes will be covered: Kingston, St Catherine, Clarendon, St Ann, St Mary, St James and Westmoreland. JPS technicians will visit customers over the next four to five months and will change the current meters free of cost