Special Climate Change Adaptation Fund administrators from the Environmental Foundation of Jamaica and beneficiaries show off the cheque representing the most recent awards at the signing ceremony last Monday.

WITH A changing climate that threatens to wash away entire communities and derail livelihoods, local civil society organisations and small businesses are being empowered to respond – with capital.

This is thanks to financing made available through the Pilot Programme for Climate Resilience (PPCR).

There exist two financing mechanisms, according to Dr Winsome Townsend, project manager for the Adaptation Programme and Financing Mechanism under the PPCR.

One is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica.

The SCCAF, according to project documents, is “to finance adaptation and disaster risk-reduction projects and cover associated programme management costs”.

“Grants from this trust fund will be accessed by community-based organisations, other civil-society groups and selected public-sector agencies, for clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction,” the documents revealed.

Last Monday, the first 18 beneficiary organisations were awarded sums to the tune of $84.9 million to undertake projects designed to enhance resilience at the community level.

“There was a call for proposals in October last year and out of that, about 80 proposals were received and about half that amount were shortlisted. They were further assessed and out of that, an initial 18 were approved,” said Townsend.

“Twelve were pending approval. Those 12 have now been approved. So out of that first call, approximately 30 have been approved,” she added.

PROJECTS TO BE PURSUED

Projects to be pursued include water harvesting and greenhouses, aquaponics systems and food processing, as well as various ecosystem restoration initiatives.

Townsend said another call will be issued later this month or early March.

The second mechanism is a line of credit, intended “to provide loan financing to support adaptation measures of farmers and other businesses in the agricultural sector, and small hoteliers and other businesses in the tourism sector”.

Five projects have been approved to the tune of some $25 million, Townsend said. However, the overall level of interest in the line of credit – administered by JN Small Business Loan – is not immediately clear.

“Because it has started soft, we don’t know yet. We can’t at this time make any determination as to the level of enthusiasm,” Townsend said.

Still, she is hopeful for its success, given what is at stake.

“It is not just the Government who needs to put in measures in terms of climate change adaptation, but everybody, including citizens. Of particular interest is the private sector because businesses are under threat from climate change, and so the private sector needs to respond to these threats,” she said.

“The micro, small and medium-size businesses are at greater risk because of their capacity to respond. They are not as resilient as the more established or bigger enterprises,” Townsend noted.

Gleaner

The push to get 30 per cent of Jamaica’s electricity from renewable sources by 2030 is not a pipe dream and will be achieved, Government Senator Matthew Samuda has insisted.

The senator said that energy generated currently from renewable sources is 10.5 per cent of net electricity generation.

Speaking last week in the State of the Nation Debate in the Senate, Samuda noted that energy minister Dr Andrew Wheatley, upon taking over the portfolio last year, increased the 2030 target in the national energy policy to 30 per cent from 20 per cent.

GDP Growth

According to Samuda, the target “certainly complements the top line objective of 5 in 4”, referring to the Government’s objective of achieving a GDP growth of five per cent by the end of the 2020-2021 fiscal year.

“This (energy target) is not a pipe dream, nor is this lip service being paid to the nation’s energy supply. I am happy to state here today in this chamber that Jamaica will target a further 100 megawatt (MW) of renewable energy for the grid, with a new invitation for proposals to be made public in the very, very near future.”

Added Samuda: “This project will have a transformative effect on the sector, and indeed, the country. These projects will, no doubt, strengthen a pillar for competitiveness and development, which is cheap, reliable, and clean energy.”

Last year, an additional 80MW of generating capacity from renewable sources was connected to the national grid, Samuda noted.

Gleaner

WITH ECONOMIES under threat due to climate change and prevailing high production costs, the recent Caribbean Sustainable Energy Forum (CSEF) served as a call to urgent action to realise energy efficiency and energy sustainability within CARICOM.

Kim Osborne of the Executive Secretariat for Integral Development at the Organisation of American States, said it is past time that talk be translated into action.

“There is always the challenge of maintaining a healthy balance between dialogue and implementation. Several studies and reports have noted that our region faces an ‘implementation deficit’, but I would venture to say that the region also suffers from a ‘dialogue surplus’,” she noted.

She was addressing participants at the Caribbean Sustainable Energy Forum (CSEF), held in The Bahamas last week.

“There is a serious mismatch between meetings and results in our region. My point here is twofold: that dialogue is not an end to itself, and that dialogue that does not lead to action and to results is meaningless,” Osborne added.

At the same time, she said that energy must not be looked at in isolation, but rather in the context of sustainable development.

“In the normal course of things, energy is not provided in a vacuum. It impacts and is impacted by several factors, such as poverty, water availability, disaster risk, climate change, health, education and human resource development, human rights, and coastal and marine management,” Osborne said.

“I am proposing that to the fullest extent possible, an integrated approach should be adopted towards the goal of sustainable energy management,” she added.

For his part, Dr Devon Gardner, programme manager for energy with the CARICOM Secretariat, emphasised three things – partnership, integration and action.

“The partnerships are not just for the CSEF, but with the World Bank and the United States Government, we are able to implement the Caribbean Sustainable Energy Road Map ad Strategy (C-SERMS) platform … . Because of partnerships, we have been able to work with the member states,” he said.

UNITY MAKES SENSE

On integration, he noted: “The CARICOM secretariat is really there to serve the member states. We do what the member states require to get the job done. The CARICOM is a group of countries within the Caribbean that we want to do some things together because it makes sense for us to work together to achieve mutual and shared objectives. And the role of the secretariat is to help the member states to realise this objective.”

Added Gardner: “We believe that all that CARICOM desires – from economic development to climate resilience to social resilience to security – is underpinned by having a strong energy sector … . We see energy as a critical part of the regional integration tool.”

In the end, Gardner said there was no question of realising C-SERMS energy targets that include 47 per cent renewable power capacity by 2027 without urgent action.

A number of regional leaders – among them Dr Regilio Dodson, Minister of Natural Resources in Suriname – have noted their support for an integrated and unified approach to the energy efficiency and sustainability in the region.

“We should work together … . We have to actively promote success stories … and learn from each other and go together and try to determine what is for our region the best way forward,” he said.

“If we work together to get this going and get the cooperation between CARICOM countries going, then we will have our energy security in our own hands, ” he added.

Among the topics explored over the three days of discussions at CSEF 2017 were ‘The CARICOM Energy Policy Road Map and Strategy: Shifting the C-SERMS from Concept to Action’; ‘The Regulator Within the Integrated Resource Planning Process’; and ‘The CARICOM Energy Transition: Lessons from the Last Five Years’.

The forum also saw the meeting of regional working groups on key thematic areas, including information and knowledge management, finance, capacity building and research, as well as policy and regulations.

Gleaner

Opposition spokesman on Mining and Energy, Phillip Paulwell, is describing as ill-advised and untimely the latest proposal by the Government to divest its 19.9 per cent stake in the Jamaica Public Service Company Ltd (JPS).

Paulwell, who said that Finance and Public Service Minister Audley Shaw recently alluded to the divestment of the Government’s shares at this time, argued that the transaction would deprive the country of the opportunity to maximise the expected increase in the value of the energy company’s assets when the energy diversification and modernisation exercise is completed.

“While we recognise and appreciate the fact that the divestment would serve to broaden the ownership base of assets in the country, we urge the Government not to squander the country’s assets on the whim of expediency, but to be guided by the cost-benefit analysis of the divestment,” Paulwell insisted.

Despite the Opposition’s reservations to divest the JPS shares at this time, Paulwell recommended that every effort should be made to ensure that Jamaicans are given the opportunity to acquire the publicly held shares in the company.

The previous People’s National Party administration had taken a policy decision to divest itself of commercial assets once the opportunities arise.

In 2016, the Development Bank of Jamaica had advised that the Government was committed to selling its stake in the JPS, the island’s sole power distributor.

Gleaner

ENERGY MINISTER Andrew Wheatley has sought to quiet ongoing concerns over reports that the new Chinese owners of ALPART, Jiuguan Iron and Steel, are looking to set up a 1,000-megawatt coal plant in Jamaica to support their operations.

“Where we are right now, we have not received any application, any proposal, as it relates to a coal-fired plant at ALPART. What we know for a fact is that the new owners are rehabilitating, retrofitting the old ALPART facility,” he told The Gleaner on the sidelines of the Caribbean Sustainable Energy Forum (CSEF) in The Bahamas on Tuesday.

“The plan is for them to use the traditional source of fuel – HFO – to drive that bauxite facility. We expect that facility to be up and running in another 16 to 18 months, starting to produce bauxite and employing Jamaicans,” he added.

“I don’t want to speak for them, but I know they are exploring other sources of energy, separate and apart from coal,” Wheatley said further.

At the same time, the minister suggested that this ministry would not readily entertain any such application.

“The truth is that coal is a part of our energy policy, a part of that mix. But if we are to embark on such a direction, it would have to be after serious consultation. We would have to ensure that there is some technology that would, more or less, mitigate against the negative environmental impacts associated with coal in the past,” he noted.

 

CLEAN TECHNOLOGY

 

“So there is a clean-coal technology being mooted. That is something that we would have to explore. But we would never engage or embark on the use of coal – at least that capacity of producing 1,000 megawatts – without our having the necessary consultations with the different stakeholders,” he said.

News of the 1,000-megawatt plant accompanied the sale of ALPART to Jiuguan last year. The construction of such a plant would exceed Jamaica’s current generating capacity of some 800 megawatts while threatening to undermine efforts to treat with climate change, which prompted outcry from among civil society actors.

The minister’s statements on what would need to happen regarding any coal project, meanwhile, are in line with what the Council of the Jamaica Institute of Environmental Professionals called for last August.

“We look forward to seeing the holistic analysis on the full economic costs and benefits for the chosen source of energy, including the lifetime costs of energy production, the cost of treatment of pollutant emissions and effluent, the cost of any investment or operation costs for ensuring compliance with all relevant national environmental and working standards,” the entity said.

“This analysis should include critical factors such as the economic cost of health effects and medical treatment from exposure to plant emissions and effluent on workers and communities surrounding the plant,” the council added.

Ultimately, like a number of other civil society actors, it concluded: “It is our position that a coal-fired plant is counter-productive to Jamaica’s own Vision 2030 and our other commitments on energy, sustainable development, and climate change,” it said.

“We hasten to point out that there is a cost associated with sourcing and transportation of coal from overseas; the potential impact on human health, including long-term treatment; and the cost of ensuring that all relevant national standards are met,” they added.

Gleaner

The Jamaica Public Service Company (JPS) is preparing for a battle with the Government over any attempt to review its operating licence.

The JPS was put on its guard last Friday when Government senator and chief technical adviser to the finance minister, Aubyn Hill, declared that the Andrew Holness-led administration is obliged to review the licence of the light and power company because of threats to the Jamaican economy.

Opening the State of the Nation Debate in the Senate, Hill called for a review of the modified licence issued to JPS last January, because it “seems to be quite opposed to the interest of Jamaicans”.

“We have to look at that licence carefully [and] as a new Government, we’re obliged to,” Hill told his parliamentary colleagues.

But Kelly Tomblin, the president and chief executive officer of the JPS, in a quick response, rejected Hill’s reasons for questioning the changes to the licence and expressed the hope that his comments would not suggest that Holness will shred the contract.

“I’m sure, similar to how the Government has continued on the framework for fuel diversity, that this Government certainly wouldn’t suggest that a licence negotiated in good faith, in which the JPS has made investments, would be negated by a subsequent government,” said Tomblin.

“Surely, he’s (Hill) not suggesting that,” added Tomblin.

In his Senate presentation, Hill argued that he was making the call from his position as a senator.

“Because I may have some influence on policy, I do not lose my right as a senator to bring up independent issues. My position is quite different from a recommendation, and if I gave a recommendation I probably would not be speaking on it publicly,” said Hill.

The international banker argued that the replacement of the price cap regime with the revenue cap in the licence “could dampen economic growth” because JPS’s growth is no longer tied to that of the economy.

“A good argument can be made that the revenue cap approach blunts any incentive on JPS’s part to support the expansion of renewable sources of energy or to improve efficiencies in their current business,” said Hill, who is the chairman of Innovative Renewable Energy & Electronics Limited.

He said giving the JPS the right of first refusal to replace generating plants due for retirement entrenches the company’s near-monopoly and is inconsistent with international standards and Jamaica’s national energy policy.

‘Inaccurate Conclusions’

Tomblin rejected those claims, arguing that Hill was making “inaccurate conclusions”.

“We negotiated with the Government for our licence amendments that we believe serve the country. We have about 31 guaranteed standards that are monitored by the Office of Utilities Regulation (OUR).

“Our overriding goal is to support economic growth. This (Hill’s arguments) requires a more fulsome discussion with the utility,” said Tomblin.

Hill’s call came days after the OUR announced new regulation which should give it more power to monitor the operations of the JPS and other entities which generate or supply electricity.

The regulation will govern the operational standards and established procedures for handling the generation, transmission, distribution, supply and dispatch of electricity across the island.

According to the OUR, the regulation adopts five grid codes, which are generation, transmission, distribution, supply, and dispatch.

“The codes, which were finalised in August 2016, have been developed in parallel, and are designed to be used in conjunction with each other,” said the OUR.

This is one of the 330 smart-ready street lights in New Kingston which the JPS has retrofitted to accommodate the addition of intelligent controls to the LED fixtures for the maintenance and controls of lights in the area. The smart street light initiative will be rolled out from 2017-2020.
The plan to transform Kingston into the Caribbean’s first smart city has inched closer to becoming a reality with the identification of two preferred vendors by the Jamaica Public Service Company (JPS) for its Smart LED street light project.

Petra Systems and FosRich Group of Companies in partnership with Philips Lighting, are the companies selected to spearhead the initiative, which the JPS plans to roll out across the country, starting this year.

Following the selection of the LED vendors, the next step for the energy company is to identify suitable entities for the installation of the lighting fixtures, as well as provision and management of the smart features. Its target is a total of 110,000 street lights, with consumers, the company and the entire country set to benefit.

SUPPORT CRIME FIGHTING

“In addition to lowering energy costs and improving energy efficiency, smart street lights can facilitate the smart technology to support crime fighting, through the use of image sensing (including allowing for closed-circuit television),” chief technology officer, JPS, Gary Barrow, explained in a press release, hinting also at positive environmental spin-offs. “Smart street lights will also reduce the carbon emissions from power consumption.”

Other benefits of the smart street light system include its ability to detect and report light failure per location; report maintenance and repairs of lights; as well as measure and report energy usage per lamp. The street light system will be managed by a control centre that will facilitate ease of monitoring and other aspects of management.

The JPS recently retrofitted 330 streetlights in the New Kingston area with LED lights, as part of its Smart City pilot. The next phase of the project involves the addition of intelligent controls to the LED fixtures for the maintenance and controls of the lights in the area. The smart street lights are the first phase of several technologies that will be deployed to make New Kingston one of the first smart cities in the Caribbean. The smart street light initiative is one of Jamaica’s largest energy efficiency projects and will be rolled out from 2017-2020.

Gleaner

As of January 1, 2017 the Ministry of Science, Energy and Technology took over responsibility for applications for net billing, electric power wheeling and auxiliary connections.

Information about the new arrangements, posted on the ministry website, comes after a period of uncertainty characterised by legislative changes, delays and temporary arrangements.

Minister of Science, Energy and Technology

Dr Andrew Wheatley announced in April 2016 that the Office of Utilities Regulation (OUR) would resume accepting applications on behalf of the ministry for net billing. This would be under similar terms as the previously concluded net billing pilot project, which ran for two years until May 2015. Up to that time, the ministry had received 351 applications for net billing, of which 311 were approved.

Net billing allows persons who produce electricity from renewable sources such as wind or solar to sell the excess to the Jamaica Public Service Company (JPS), thus offsetting the electricity consumed when they use power from the grid. The OUR was charged with the responsibility for continuing to accept applications until the details of a permanent programme were finalised.

Public education specialist at the OUR, Elizabeth Bennett Marsh, says that with changes to some aspects of the legislation, the responsibility for approving net billing was passed back to the ministry.

“There was a brief hiatus where we had stopped accepting because we said we really wanted to get everything clarified. The ministry subsequently asked the OUR to continue accepting applications. So we agreed to continue until they could sort it out, and now that it has been completed we handed over,” Bennett Marsh said.

According to the information on the ministry”s website, “All persons who are desirous of connecting to the Jamaica Public Service grid are required to obtain a licence from the minister with responsibility for energy. The Ministry of Science, Energy and Technology, therefore, advises the public that, effective January 1, 2017, all applications for net billing, electric power wheeling and auxiliary connections are to be made directly to the ministry.”

READY TO DO ITS PART

The ministry declined to comment by telephone on the new requirement and did not respond to emailed questions up to press time.

JPS Director of Corporate Communications Winsome Callum said the light and power company was aware of the changes and stood ready to do its part in adding new systems to the grid.

“This new development came out of the review of the net billing process in 2015. It was decided that the ministry would start accepting applications as of January 2017.

“JPS will continue its role in facilitating the contracts and the commissioning of the systems. We will continue our efforts to ensure that the connections are made as seamlessly and as quickly as possible,” Callum said in a written response.

Gleaner

Energy minister Dr Andrew Wheatley (left) and Petroleum Coprporation of Jamaica general manager Winston Watson.

The Petroleum Corporation of Jamaica (PCJ) will be carrying out major energy efficiency and renewable energy projects at six public hospitals to reduce electricity costs under the United Nations Development Programme’s (UNDP) Deployment of Renewable Energy and Improvement of Energy Efficiency in the Public Sector Project.

The facilities slated to benefit are the National Chest Hospital and the Sir John Golding Rehabilitation Centre in St Andrew; Bellevue Hospital in Kingston; May Pen Hospital in Clarendon; Savanna-La-Mar Hospital in Westmoreland and the Black River Hospital in St Elizabeth.

Among other things, the interventions at these institutions will involve energy audits and the installation of energy-efficient lighting, solar photovoltaic technology and solar water-heating systems, PCJ said in a release yesterday.

SPECIALISED SERVICES

The selected institutions provide specialised services to a large cross section of the population and have high capital and operational expenditure.

Assessments revealed that energy-efficiency interventions at these hospitals can achieve considerable savings which will help to achieve the PCJ’s objective of reducing the public sector’s energy spend. The infusion of renewable energy and energy-efficient technology into the hospitals’ operations is expected to reduce their collective electricity demand by 1,305,000 kWh each year, which at current rates translates to more than J$41 million in savings.

The PCJ’s general manager, Winston Watson, said: “We are pleased to partner with the UNDP on this project, since the objective of incorporating more energy-efficiency solutions into the public sector’s operations aligns perfectly with our mandate to reduce the Government’s energy bills.”

The Deployment of Renewable Energy and Improvement of Energy Efficiency in the Public Sector Project is a US$12-million initiative comprised of three components.

The energy interventions to be undertaken by the PCJ are being carried out under the third component, which focuses on economic and fiscal instruments to facilitate the uptake of renewable energy and energy efficiency in the public sector.

Project execution under this component is projected to cost US$2.01 million, of which PCJ will provide just over US$1,360,000 and US$650,000 will come from the Global Environment Facility Trust Fund.

WORTHWHILE INVESTMENT

“We consider this a worthwhile investment for the Government and people of Jamaica as it will improve conditions in the health sector while reducing electricity costs, which will mean savings for the public sector, and we are therefore looking forward to a successful partnership with the UNDP,” Watson said.

Bruno Pouezat, UN resident coordinator and UNDP resident representative, said: “As we mark the official launch of this landmark project, I recall the words of United Nations Secretary General Ban Ki-moon, who in 2010 called for ‘a global clean energy revolution’. He added that “energy is the golden thread that connects economic growth, increased social equity and an environment that allows the world to thrive. We look forward to working with all of our partners in Jamaica in securing these ideals.”

Minister of Science, Energy and Technology Dr Andrew Wheatley said the public sector accounted for 15.5 per cent of total electricity sales in Jamaica in 2015.

“We are working assiduously to reduce our overall consumption and I am pleased that this project seeks to deploy renewable energy and improve energy efficiency in the public sector, as these interventions will serve to bolster our ongoing efforts to reduce the Government’s energy consumption while driving efficiency,” he added.

The Deployment of Renewable Energy and Improvement of Energy Efficiency in the Public Sector Project was officially launched on November 30, 2016. The PCJ will begin project implementation in early 2017.

Gleaner

Rooftop solar energy is becoming a financially viable way for millions of U.S. consumers to generate their own electricity — and utilities are doing everything to kill the solar boom before it gains too much traction. Utilities in states such as Florida, Wisconsin, and Nevada have tried to undermine rooftop solar at the regulatory level and in ballot measures. As a reaction, voters have fought back and beaten the efforts to squash solar energy.

The impact on residential solar companies Tesla (NASDAQ: TSLA), Vivint Solar(NYSE: VSLR), Sunrun (NASDAQ: RUN), and SunPower (NASDAQ: SPWR) shouldn’t go unnoticed. They’re winning the policy war against utilities, and as they do, it’ll open a larger and larger market across the country.

POLICY WINS ARE GOING TO RENEWABLE ENERGY

The election earlier this month was accompanied by a number of ballot initiatives that will impact solar energy for years to come. And for the most part, solar energy was a huge winner.

Despite utilities’ spending $26 million to pass a referendum that would have undermined solar economics in the state, Florida voters rejected the utility referendum. The state now looks like it’ll have a bright solar future.

In Nevada, less than a year after the public utility commission essentially killed the rooftop solar industry, residents overwhelmingly voted to break up Berkshire Hathaway (NYSE: BRK-B)-owned NV Energy’s long monopoly in the state. Customers have to be given energy choice, meaning more solar in one of the country’s sunniest states.

In the past, Wisconsin has tried to add fees to utility bills that would kill solar energy before it ever got started, but those attempts were rejected by the court.

There’s an important trend here for utilities and solar companies: When solar energy goes on the ballot or to the court, it wins. That should have every utility in the country frightened because that gives millions of customers choice regarding their energy needs.

THE LOOMING THREAT FOR UTILITIES

Policy wins are important because they lay the groundwork for future innovations to take hold in energy. Today, that means rooftop solar on more than 1 million homes in the U.S. — and that number is growing quickly.

The next step will be adding energy storage to homes, something that Tesla is leading on and that Vivint, Sunrun, and SunPower are all adding, as well. As energy storage is added, customers can use more of their own energy, making net metering less important and providing more flexibility for customers.

The holy grail for renewable energy is allowing customers to cut the cord to the utility altogether. We may be a decade from that being a reality, but the more utilities add fixed fees or demand charges, the more quickly the economics of cord-cutting will become compelling. Long-duration energy-storage technologies are already beginning to be deployed, and before long, a couple of Powerwalls and a long-duration energy-storage system may be a viable option for consumers, making utilities irrelevant.

THE SLIPPERY SLOPE IN ENERGY

Utilities are in a tough position, having incentives to apply policies that protect short-term profits but which may undermine long-term competitiveness. It’s clear that when push comes to shove, voters are willing to overturn utility policies, voting for solar energy across the country. That has to be a concern for utilities, and it shows that the future is getting brighter for solar energy companies providing the solutions customers want.

FlipBoard