Government Archives - Page 17 of 56

OUR Won’t Allow Bogue Delay To Lead To Higher Light Bills

May 20, 2016 Webmaster

The Office of Utilities Regulation (OUR) says it will ensure that power utility Jamaica Public Service Company does not increase bills to consumers based on the delay in the delivery of cheaper gas fuel.

The first delivery of liquefied natural gas – LNG – by JPS’ supplier was expected in April, but has been pushed back to August.

New Fortress Energy has developed a terminal in Montego Bay to feed gas to JPS’ Bogue plant, which has been converted to burn either LNG or automotive diesel oil.

“The OUR has moved to assure consumers that it will be vigilant in ensuring that the delay in the delivery of liquefied natural gas to the Bogue power plant will not result in an increase in the price of electricity,” said the regulator in a statement.

While welcoming the completion of the conversion of the 120-megawatt combined cycle plant, the OUR signalled disappointment with the “four-month delay” in the delivery of the overall project.

The gas supply agreement signed by JPS and New Fortress Energy on August 5, 2015, stipulated that gas delivery would commence April 2016, the OUR stated.

“Safeguards for customers were included in the agreement with New Fortress to ensure that any delay on its part would not result in negative cost implications for customers,” noted OUR Director General Albert Gordon. “The OUR has been monitoring the project closely and will continue to keep the public abreast of its progress.”

Project’s goal

The Bogue project’s goals, which are aligned to those in the National Energy Policy, were to reduce fuel cost, and lower the operations and maintenance expenditure of electricity generation. Gordon noted that the OUR’s involvement in the project began in 2008 and that the agency mandated that the plant be upgraded to burn gas in the 2014-2019 JPS tariff determination.

“To ensure this, the OUR also made provisions for the setting up of the Bogue Plant Reconfiguration Fund (BPRF), financed through the tariff, to facilitate the conversion cost,” the agency said.

The revenues for the BPRF – which totalled $15 million – were collected by the JPS through a line item in the monthly fuel rate calculation on customers’ bills, over a twelve-month period, between February 2015 and January 2016, the OUR said.

Requests to JPS for comment were unanswered up to press time.

The Gleaner

Biodiesel Crude Oil Electricity Government News Oil

Oil Prices Will Rise Again, Biden Warns Caribbean

May 17, 2016 Webmaster

United States (US) Vice-President Joe Biden has warned regional leaders that volatile oil prices will return. On this basis, he is urging them to use every opportunity to explore clean and alternative energy sources to bolster the prosperity of the Caribbean and Central America.

“This is a moment of opportunity to turn that progress into sustainable energy security that will endure when volatile oil prices return. And they will return,” Biden cautioned the heads of government during the US-Caribbean-Central American Energy Summit in Washington, DC, held earlier this month.

“The good news is that we’re at a nexus for transforming, with transformative opportunities here. Low oil prices mean more money this day is available for investment in new energy infrastructure,” said Biden.

“It’s equivalent to US$1 billion of stimulus just in the region [and] lower energy prices. Our abundance of natural gas provides a critical, clear transition fuel as we’re moving towards adopting renewable technologies.”

Biden said strengthening energy security was among the focus areas for himself and US President Barack Obama.

He noted that North America – Mexico, the US and Canada – is the epicentre of energy production in the world and pointed out that his country recently inaugurated a liquefied natural gas export terminal that has just sent its first cargo of gas to Latin America.

The US had also announced a deal to export natural gas to Jamaica during last year’s staging of the Summit.

“Here’s the truth. We want you to be energy secure so more people across this region can – your region can start businesses, connect to the Internet, generate opportunities, attract foreign investment, grow, grow. The more you grow, the more you prosper, the better off my country is. And it strengthens our security, as well as yours. And it opens up new opportunities for shared economic growth,” he said.

The Gleaner

Alternative Energy Crude Oil Electricity Government JPS LNG News Oil

Paulwell Says Fuel Tax Will Impact Consumers Negatively

May 13, 2016 Webmaster

Former Energy Minister Phillip Paulwell says consumers who have been benefiting from reduced electricity rates from the Jamaica Public Service (JPS) over the last 12 months could see a hike in the cost of energy with the Government’s imposition of new taxes on heavy fuel oil and liquefied natural gas.

The JPS recently concluded work to convert its Bogue Power Plant in Montego Bay, St James, to dual-fuel capability.

United States-based New Fortress Energy is expected to bring liquefied natural gas into the island by August, at which point the newly converted Bogue power plant will begin to use the more environmentally friendly fuel.

Paulwell’s concerns came as he spoke with journalists yesterday at the end of Shaw’s opening contribution to the Budget Debate.

“Currently, the JPS does not pay taxes on heavy fuel oil. Government has now imposed a tax both on liquefied natural gas, which will arrive in August of this year, and on heavy fuel oil, so it means a significant increase in the price of electricity that has been trending down by almost 50 per cent over the last year.”

At the same time, Opposition Leader Portia Simpson Miller is taking the Government to task for “breaking its promise” by imposing new taxes to fund the tax-relief plan.

“All I can say is that they have broken their promise to the Jamaican people – no new tax – but, from all indication of what Minister Shaw said today (yesterday), it is the poor that will suffer,” she said.

Central Manchester MP Peter Bunting argued that the increased taxes would affect everyone, but have a more significant effect on those who earn under $600,000 per annum, and who will have to face increased transport and electricity costs.

He described the tax measures as regressive, noting that persons at the bottom of the society are being burdened to give relief to those earning at a higher level.

Alternative Energy Case Study Electricity Environment Government Jobs News

Jamaica Faces Trek To A Green Economy

May 12, 2016 Webmaster

KHAN… what we want is for them to own, as much as possible, what has to be done in each sector

From the “historical momentum in favour of brown industries” – those overly dependent on fossil fuels – to “bias in the political system towards short-run and against long-run perspectives”, the deck appears stacked against Jamaica’s efforts towards a green economy.

These factors, according to the recently published Green Economy Scoping Study, in addition to others, include IMF prescriptions that preclude Government providing tax incentives to encourage greening.

Still, the study – done with United Nations Environment Programme and European Union support – notes that in as much as these factors are barriers, they are also justification for the transformation of the economy into one typified by efficient resource management, a low-carbon footprint, and which is socially inclusive.

And it cites a variety of opportunities that can be pursued across key sectors – agriculture, construction, energy, tourism, and water – from the private sector’s demonstrated leadership in some fields to existing policies and programmes.

Elizabeth Emanuel, one of the study’s authors, said the Vision 2030 Jamaica, for which she is programme director, is one such.

“One of the benefits Jamaica has in advancing to a green economy, compared to other states, is that our own national development plan had the foresight to include the green economy as a pathway to prosperity. That plan speaks to the green economy and what a green economy would look like for Jamaica,” she told The Gleaner.

Possibility Indicators

And there are some good indicators of what’s possible, Emanuel added, noting that there have been, for example, advances in the diversification of the island’s energy mix.

“We also have a society that is more aware, companies that are thinking and talking green, and all of these are creating the demand for a green economy,” she noted.

According to Emanuel, there is no question of the need to pursue the transition – whatever the constraints.

“The green economy is not just about environmental protection, but it is our planet, our people, our economy and how we marry those three to create sustainable solutions that will advance the prosperity of our land of wood and water,” she said.

Eleanor Jones, head of Environmental Solutions Limited, agreed.

“When it comes to what we need, we need to look at our resources management because that is also a part of it … . But you can’t just wave a magic wand. It has to be a structured approach with legislation and incentive … ,” she said.

“We like to talk about the IMF putting in all these strictures, and they have, and you have to watch your budget. But not everything has to cost a lot of money… . We have to encourage our suppliers to retool and encourage our consumers to manage their resources,” Jones added.

Colonel Oral Khan, chief technical director in the Ministry of Economic Growth and Job Creation, said the coming months should see a re-engagement of key actors towards the green economy.

“The various sectors were consulted in the preparation stage. We now need to re-engage with these sectors at the highest levels because there have been a number of changes,” he said.

“What we want is for them to own, as much as possible, what has to be done in each sector. We expect that they will go through the list of recommendations that are there and see which ones are to be done in the short to medium term, so they can embrace those and seek to work them into their respective strategic plans. That is the approach we will take,” he added.

Among the recommendations from the study are:

• Sustainable land management and water management systems for agriculture;

• Enforce the new building code, as well as adopt codes and standards that mandate green construction practices for the construction sector; and

• Promote and incentivise renewable energy use and water use reduction, as well as planning for climate change for the tourism sector.

There is, too, the recommendation to develop more extensive sewage recycling, as well as reduce energy cost and diversify sources for the water and sewerage sector.

pwr.gleaner@gmail.com

The Gleaner

Alternative Energy Electricity Government News Solar Energy

OUR Selects Bidder For Solar Facility

May 11, 2016 Webmaster

Andrew Wheatley

Jamaicans could be on track to benefit following the successful completion of the most recent electricity-generation procurement process managed by the Office of Utilities Regulation (OUR).

The process saw the selection of Eight Rivers Energy Company Limited (EREC) as the preferred bidder to build, own and operate a 33.1 MW solar photovoltaic power-generation facility at Paradise Park, Westmoreland. The proposed price (all-in tariff) is 8.54 US cents/kWh.

This latest OUR-managed project is the most competitive renewable energy procurement project to date and is in keeping with the trend in the reduction in the price of energy from renewable sources. This bid is significantly cheaper than the tariffs proposed for the projects which were selected from a similar competitive procurement commenced in 2012 and based on wind turbine and solar technologies. The 37MW project has so far met all its deadlines, with the evaluations being completed by the OUR on April 26, 2016 and the highest-ranked bidders being notified of the evaluation results on May 6, 2016.

“The OUR is pleased with the proposed all-in tariff of 8.54 US cents/kWh, which we believe has set the pricing bar for future renewable projects,” said Albert Gordon, director general of the OUR.

Commenting on the project, Minister of Science Energy and Technology Dr Andrew Wheatley noted that the project executed by the OUR “marks the lowest cost ever for solar power in Jamaica, and also advances Government’s major policy objective, namely, the diversification of Jamaica’s energy supply mix to reduce cost and dependence on imported oil”.

The next step in the project requires EREC to finalise the various project agreements. If they fail in this regard, the OUR would move to the bidder(s) next in line.

The Gleaner

Alternative Energy Confrence Crude Oil Electricity Energy Saving Government Jobs News Oil Solar Energy

Holness Optimistic Ja Will Become Gas Hub For Caribbean

May 5, 2016 Webmaster

Holness Ricardo Makyn

Washington, DC:

Prime Minister Andrew Holness is optimistic that Jamaica will become the hub for gas in the Caribbean and promises that his government will be strategic in its efforts to diversify the country’s energy sector.

“Renewables will have to feature in a far greater way in our energy mix. The falling oil prices give us a window of opportunity to bring in new technology, to bring in new investors,” he said yesterday during an interview with Jamaican journalists at the US Caribbean Central American Energy Summit in Washington, DC. The summit was held at the Department of State.

“The emphasis (will be) on diversification in ensuring that we are the hub that will reduce our exposure to volatility,” he said.

Holness, along with other regional leaders, met with United States Vice President Joseph Biden yesterday morning for a Caribbean Heads of Delegation meeting. He said the exchange has given him some insight into how other countries in the region are using alternative energy for their electricity, water, and transportation sectors.

“I think we will have to look more closely at our transportation sector, particularly the JUTC (Jamaican Urban Transit Company), which are fairly heavy users of oil and heavy fuel, to see how best we can get energy efficiency from diversifying their fuel use,” he said.

BURDEN FOR JAMAICA

The prime minister noted that energy has been a burden for Jamaica for many years, but he believes that several initiatives implemented by Biden and US President Barack Obama over the years have contributed to finding solutions to the problem. Obama reinforced his administration’s commitment to assist the region with exploring clean-energy solutions when he launched the Task Force on US Caribbean and Central American Energy Security during his visit to Jamaica in April 2015. Just a few months prior to the launch of the task force, Biden hosted the first US Caribbean Central American Energy Summit.

The US has provided clean-energy finance for countries such as Jamaica through the Overseas Private Investment Corporation and the USAID. The US-owned BMR Energy is also currently building a 34-megawatt greenfield wind farm in St Elizabeth valued at US$90 million.

“What we have said at these seminars is that Jamaica is open for investments in the energy sector,” said Holness.

The prime minister said discussions with Biden went very well as they reviewed progress made in the local energy sector last year and discussed plans for this year. He noted that there are some imperatives that the Jamaican population would have to become aware of such as the strong global movement towards clean energy.

“What is clear is that there is great appreciation for what we have done as it relates to our regulations, making it attractive for investments in the energy sector to come to Jamaica,” he said.

nadine.wilson-harris@gleanerjm.com

The Gleaner

Alternative Energy Climate Change Confrence Crude Oil Electricity Energy Saving Government Solar Energy

Turning point for energy security in the Caribbean

May 2, 2016 Webmaster

The wind farm at Wigton, in St Elizabeth

Caribbean countries have quietly started a green revolution and are now leading the way for other small island developing states in the global effort to limit the rise of global temperature to 1.5 degrees Celsius. While challenges remain, five months after the historic climate agreement in Paris, they remain committed to saving energy and investing in renewables.

Some may argue that at a time when oil prices are low, there are incentives to slow this effort down. But, on the contrary, this is the time to take advantage of the savings and move further on their ambitious vision for the future. And that is precisely what they hope to do at this week’s US-Caribbean-Central American Energy Summit, hosted by US Vice-President Joe Biden.

The Caribbean finds itself at a turning point. The road ahead won’t be short: despite a substantial push for clean energy, renewables still contribute less than 10 per cent of electricity production in the Caribbean.

Ever since last year’s first summit, commitments have translated into concrete actions from leaders. They have played a major role in promoting clean energy development, energy efficiency and climate resilience throughout the region. With the support of regional and international institutions, such as Caricon and the World Bank, Caribbean countries have started a transition to clean-energy alternatives.

Solar power continues to expand as technology improves and production costs plummet. Wind energy is also growing as production has become more commercially viable and technology can now better manage the unpredictability of wind and solar resources.

Eastern Caribbean countries are breaking down barriers to all renewables and are even actively exploring geothermal energy as a way to power their country in a reliable, clean and cost-effective manner. Exploratory drilling and preparatory work is happening in Dominica, Grenada, Monserrat, St Lucia, St Kitts and Nevis, and St Vincent and the Grenadines.

It is important that these transitions to renewable energy go hand in hand with efforts to improve efficiency and reduce cost. Caribbean governments know the importance of reducing inefficiencies by modernising electricity distribution companies and grid systems, and through simple measures such as making buildings more energy efficient and using high-efficiency air conditioners and LED light bulbs.

This is particularly crucial in the Caribbean, where many countries spend more than five per cent of their income in oil imports but still cannot fully satisfy demand. The uncertainty around the future for oil prices and of concessional oil financing make it even more important for small Caribbean economies to diversify their sources of energy.

Gains in energy efficiency help the private sector develop and become more competitive. Even with current low oil prices, electricity prices around the region average over US$ 0.25 per kWh – about three to four times more than what is paid in the US or other developed countries.

For small, tourism-dependent islands like Barbados, where air conditioning alone accounts for 48 per cent of hotel electricity consumption, continued gains in energy efficiency will help businesses cut costs and make the hotel industry more competitive.

At a time of global economic slowdown, this is a powerful example of how green energy can strengthen budgets, stimulate economies and unleash sustainable growth.

The private sector can also play an important role in developing the energy sector, through public-private partnerships (PPP). In Dominica and St Lucia, the World Bank is working with the government in helping de-risk power generation investments, develop bankable PPP deals and attract qualified private sector developers. In Jamaica, a 36-megawatt wind farm has received US$63 million in funding from the World Bank’s International Finance Corporation and other donors.

Increasingly, small island states are being confronted with extreme weather events and with the rise in sea level, it makes it more and more important to invest in energy resilience to ensure that infrastructure and systems are robust and well protected when natural disasters occur.

Caricom, together with the World Bank Group, the United States and others, have been working on establishing a regional one-stop shop to provide greater access to information on technical resources, streamline financing, and improve coordination and transparency.

At this year’s summit, leaders have an important opportunity to build on the momentum. Progress on this front holds great promise for the region. By transforming into a model of renewable energy, the Caribbean can show the world how to generate green growth that is sustainable and supportive of the poor and vulnerable.

Jorge Familiar is World Bank Vice-President for Latin America and the Caribbean

The Jamaica Observer

Alternative Energy Climate Change Energy Saving Government News

Jamaica Preps For Full Benefits From Green Climate Fund

April 20, 2016 Webmaster

Albert Daley: We have developed a proposal and they are favourably disposed to making the funding available to us.

With its role as National Designated Authority (NDA) with the Green Climate Fund (GCF) secure, Jamaica’s Climate Change Division is moving to ensure it successfully fulfils the functions.

To that end, the division recently applied to the GCF for financing to boost its capacity to deliver on its mandate as NDA.

“We have developed a proposal and they are favourably disposed to making the funding available to us, but there are some conditionalities that we have to meet,” the division’s principal director, Albert Daley, told The Gleaner.

It was not clear when the island would receive the official final word from the Fund.

Meanwhile, as NDA, the division serves as the GCF’s “first point of contact” for the country while also providing information to local actors on the GCF.

“An important role is not only to provide information re the GCF’s facilities, services and offerings for loans and grants; it also has the task of recommending national implementing entities (NIEs), which are institutions through which the GCF channels funds to a country or region and which is given oversight responsibility for the funds,” Daley noted.

Already, he said, the division has approached two public entities that could likely fill that role.

“Once we recommend, then the GCF will begin working with the entity we recommend to complete the process of accreditation,” he revealed.

OPPORTUNITY TO DEVELOP PROPOSALS

With an accredited NIE, the island can go all out to develop proposals for projects that it can itself administer.

“The ideal thing is not for people outside the country to submit proposals on our behalf, but for us to submit our own projects so that whatever returns from them will be in the country,” Daley noted.

As NDA, the division also has as its mandate to provide assurances to the GCF that whatever proposals are coming from Jamaica are in line with the island’s national priority areas for action, pursuant to its climate-change adaptation and mitigation efforts.

“The NDA is required to submit a no-objection letter to the GCF to say we have no objection, as the NDA, to [any proposed] project going forward because it is a national priority. We are also expected to indicate the extent to which a consultative process was followed in terms of developing the project,” Daley revealed.

According to the division boss, there is no question of the value of the step Jamaica has taken in having the CCD so designated.

“If we don’t have an NDA, we cannot initiate dialogue or advance any work with the GCF. For a country to engage with the GCF, it is a requirement that they have an NDA. They will only consider a project, for example, if it is endorsed by an NDA; it is a prerequisite for engagement with the GCF,” he explained.

Gleaner

Climate Change Confrence Government News

Jamaica Among States To Sign Climate-Change Agreement This Week

April 19, 2016 Webmaster

Mahlung

Kamina Johnson Smith, minister of foreign affairs and foreign trade, will this Friday represent Jamaica during the official signing of the Paris climate-change agreement in New York, following last November’s conference in France.

Some 200 countries had gathered in Paris for the COP 21 climate conference and, in December, adopted the new agreement, which aims to limit carbon emissions.

Clifford Mahlung, project administrator at the Climate Change Division in the Ministry of Economic Growth and Job Creation, told The Gleaner that the signing is a significant step towards strengthening the work that has started to mitigate the effects of climate change.

“We will be among the other heads of state who will be there. This is the first step towards becoming a party to the Paris agreement because this has to be followed up by ratification,” he said.

“The process towards ratification will require government approval, and so that process is on the way. We should be complete before the year ends.”

Mahlung said now that the agreement is open for signature by the parties to the convention, United Nations Secretary General Ban Ki-moon has been asked to convene a crucial ceremony, which will be attended by United States President Barack Obama, among others.

NEED FOR SENSITISATION

Making reference to a post-COP 21 discussion held last week at the Four Seasons Hotel in New Kingston, Mahlung said it was important that Jamaicans are sensitised to the importance of the agreement, especially as it relates to carbon emissions.

“With the significance of COP 21, we decided to have this discussion one week before the official signing. This new climate-change agreement builds on the convention and provides the basis which will accommodate further work, with respect to the climate-change process,” Mahlung said.

The agreement itself consists of many areas, including the new long-term goal in keeping future temperatures well below 2˚C and pursuing efforts to keep those temperatures as close to 1.5˚C as possible.

“Even though we contribute less than one per cent to the global emissions, it is important that we do our part to control our energy output, which will signal to the emitters that we are serious about climate change, which will mean also that they have no excuse but to reduce their emissions as well,” he said.

jodi-ann.gilpin@gleanerjm.com

The Gleaner

Electricity Government JPS News

Blackout – Widespread Outage Leaves Thousands In The Dark

April 18, 2016 Webmaster

Winsome Callum

Up to late last night, the Jamaica Public Service Company (JPS) was yet to determine what caused a “fairly widespread” power outage that left tens of thousands in darkness.

Reports of the outage began to emerge shortly after seven o’clock from Manchester, Hanover, St Mary, Kingston, St Andrew, Portland, St Catherine, Trelawny, St James, Clarendon, and Westmoreland.

The JPS issued a statement almost an hour later, from its Twitter account, advising that “the problem seems to be fairly widespread as customers in several parishes have been affected”.

It added: “We are not able at this point to say what caused the problem or how soon we’ll have everybody back on, but power has already been restored to some areas.”

Winsome Callum, director, corporate communications at JPS, later explained that “a number of generating units went offline simultaneously, resulting in a fairly widespread outage affecting customers in several parishes.

“We are not able at this point to say what caused the units to go offline or how soon we’ll have everyone back,” she added.

Callum explained that the restoration “could take a while because of the pretty involved process of ramping up units before energising the lines”.

Meanwhile, Energy Minister Dr Andrew Wheatley said he had been in contact with the Kelly Tomblin, president and chief executive of JPS, about the situation.

“I’m sure that I will be getting a report on the matter,” Wheatley told The Gleaner.

Last month, the light and power company advised that customers could experience outages between April and May as the company moves to convert its operations at the Bogue power station in St James to natural gas.

The Gleaner

1 … 15 16 17 18 19 … 56