THE Jamaica Public Service Company (JPS) says its customers will see yet another reduction in bills this month, as the light and power company continues to pass on savings from falling fuel prices.

“This month, customers will see a 4.12 per cent decrease in bills as the Fuel & IPP Charge on bills for January is $10.67 per kilowatt hour (kWh), compared to the charge of $11.83 per kWh applied to December bills. This is the lowest Fuel & IPP Charge since 2005. The total cost per kWh of electricity now stands at 21 US cents or J$25.29, for residential customers,” the JPS said in a release yesterday.

It added: “Therefore, a customer who consistently uses 165 kWh per month will be paying $182.55 less for his bill this month, compared to what he paid last month. This customer will pay $4,252.41 for the 165 kWh of electricity used, as against the $4,434.96 that was paid in December 2015 for the same usage.”

According to the JPS, it has not only passed on savings from the fall in the price of oil on the world market, but has improved efficiencies in the company’s operations.

At the same time, the company has urged customers to use energy wisely, as the final bill amount depends on how much energy is used.

The Observer

Speaking during an oil and gas exploration tour of the vessel BGP Challenger, at the Kingston Harbour yesterday, Phillip Paulwell said this is an indication of the confidence being shown that Jamaica has gas or oil in its territory.

Minister of Science, Technology, Energy and Mining, Phillip Paulwell has welcomed the second phase of an exploration programme being undertaken by Tullow Oil out of the United Kingdom.

In November 2014, the Government of Jamaica through the Petroleum Corporation of Jamaica (PCJ) signed a production Sharing Agreement with Tullow Jamaica Limited for water and gas exploration in the island’s offshore areas.

Under the agreement, Tullow has been undertaking seismic surveys in the waters off Jamaica’s south coast.

For next three weeks, Tullow will be engaged in a comprehensive data collection exercise.

Speaking during an oil and gas exploration tour of the vessel BGP Challenger, at the Kingston Harbour yesterday, Paulwell said this is an indication of the confidence being shown that Jamaica has gas or oil in its territory.

The Gleaner

The Marathon refinery in Detroit is shown Monday, January 4, 2016.

 

Michigan, USA (AP) — Michigan environmental regulators are poised to allow the Marathon refinery in south-west Detroit to increase emissions of at least eight air pollutants.

The state Department of Environmental Quality said it proposes to approve revised permits for refinery modernisation and expansion that would increase emissions of oxides of nitrogen, carbon monoxide, volatile organic compounds, small particulate pollution and sulfuric acid mist.

This, on the heels of the Paris climate talks in December where 195 countries, including the US, agreed to reduce carbon and other greenhouse gas emission with a view to keeping global temperature rise this century well below two degrees Celsius and driving efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels.

The proposal would increase emissions of sulfur dioxide in an area that the US Environmental Protection Agency (EPA) has designated as being out of compliance with federal air pollution standards, the Detroit Free Press reported, but the agency’s analysis of Marathon’s permit requests notes that the emissions increases all fall within allowable state and federal regulations. The permit requests involve installation of equipment by Marathon to produce lower sulfur gasoline that will meet new EPA standards.

“The project will enable the facility to produce fuels that comply with the EPA regulation by reducing sulfur dioxide emissions from gasoline,” Marathon spokesman Jamal Kheiry said in an e-mail to the Free Press.

Kheiry added that the refinery’s emission levels “will continue to be well below those allowed under its existing permit”. Changes at the facility triggered the DEQ’s permit process.

Four Detroit-area state senators — Coleman Young II, Morris Hood III, Bert Johnson and Vincent Gregory — want the DEQ to reject the permits.

“When we allow our refineries and coal-fired power plants to belch toxic fumes into our neighbourhoods, we set ourselves up for a legacy of poor health and skyrocketing medical bills,” said the lawmakers, all Democrats.

Ray Holland, 60, who has lived in a nearby neighbourhood his whole life, doesn’t like the idea of the proposed changes.

“I think they should leave it like it is — or put more pollution controls on it,” he said of the refinery.

The DEQ plans an information session and public hearing tonight at the River Rouge High School auditorium in nearby River Rouge. The agency plans to consider public comments prior to taking final actions on Marathon’s permit applications.

The Observer

A coal miner works to secure the roof with bolts in an underground coal mine roughly 40-inches-high. Preliminary government figures released Friday show U.S. coal production has fallen to its lowest level in nearly 30 years as cheaper sources of power and stricter environmental regulations reduce demand.

United States (US) coal production has fallen to its lowest level in nearly 30 years as cheaper sources of power and stricter environmental regulations reduce demand, according to preliminary government figures.

A report released last Friday by the US Energy Information Administration estimates that 900 million short tons of coal were produced last year, a drop from about 1 billion short tons in 2014.

That’s the lowest volume since 1986.

The slump has led to bankruptcies and layoffs at mining companies, but the effects have rippled outward, stressing state budgets and forcing layoffs in other sector, such as railroads, which are transporting less coal.

Power plants are increasingly relying on cheaper and cleaner-burning natural gas to provide electricity and comply with regulations aimed at reducing pollution that contributes to climate change.

A sweeping agreement adopted last month in Paris by nearly 200 countries determined to further reduce greenhouse gas emissions is likely to make coal an even less viable choice in the decades ahead.

The Gleaner

In this 2013 photo, Minister of Science, Technology, Energy and Mining Phillip Paulwell (left) and Roy Lafayette, chief executive officer at Geddes Refrigeration Limited, signs a US$2.65-million contract with Geddes Refrigeration Limited for the design, supply and retrofitting of efficient air-conditioning solutions in four State entities.

The Jamaican Government has so far realised savings of $80 million over the past two years under an energy efficiency programme which has been implemented in 40 public-sector facilities.

Dubbed the Energy Efficiency and Conservation Programme (EECP), its general objective is to enhance Jamaica’s energy efficiency and energy conservation. Minister of Science, Technology, Energy and Mining Phillip Paulwell said that the State is now contemplating an expansion.

“We intend to take it much further, we are expanding it,” Paulwell said.

Among the methods employed to boost energy efficiency thus far is the use of film to reflect sunlight from windows, the painting of roofs with white paint to improve cooling, and the changing of lighting fixtures.

The Government has had to pay annual costs of almost $13 billion for electricity used by its entities, and the aim is to reduce the figure by $2 billion with the introduction of several key strategic energy-saving interventions.

The measures were recommended following an audit of the energy use by the public sector, with the overall objective to cut public-sector energy consumption by 30 per cent in 2017.

“The money is being absolutely well spent. I am very proud of this project,” Paulwell said.

This year, the Government is spending $379.8 million on the conservation programme, which is funded by a loan, up from the $310 million spent last year.

A total of $748.8 million is being spent on energy conservation and efficiency programmes this year, up from $599 million last year.

The targets set for this fiscal year include executing two contracts to replace inefficient air-conditioning systems in 11 state institutions at a cost of $254.9 million, and commencing the replacement of inefficient lighting in several public institutions ($77.3 million).

The Jamaica Information Service, which is among the entities that benefited from the programme, is reporting savings of 17.5 per cent per annum on its energy bill.

The Gleaner

The Kingston-based bakery Honey Bun Limited is planning to spend US$250,000 to invest in its own 100-kilowatt solar-energy system at its factory in Kingston with the objective of increasing efficiency.

The project is expected to save the company, funded and run by the Chong family, up to 30 per cent on its electricity bill. The company’s strategy is to stagger the solar project over five stages with the first completed in December.

“Honey Bun strives to be more efficient while considering the impact we have on our environment. To that end, we aim to reduce our carbon footprint through Jamaica’s natural solar energy,” according to Chief Operating Officer Daniel Chong.

The company started installing solar panels on the roof of the factory since September 2015, Chong said. In the first phase,

24 kilowatts of inter-connected self-consumption photovoltaic power was installed. This will run concurrently with power supplied by the Jamaica Public Service, in order to increase energy output while lowering cost, he added. The precise timeline for the remaining stages remains undetermined.

“This will be concurrent with the expected build-out of factory space for increased output capacity,” Honey Bun said in response to Wednesday Business queries.

The project is expected to lower the $36 million spent in its 2015 financial year ($38.8 million in 2014) on an expense-line item termed rates, taxes, telephone, fuel and electricity.

Honey Bun’s property, plant and equipment, fair valued at $278 million, remains its largest asset which drives the electricity spend. Honey Bun acquired two properties in the company’s financial year ending September 2014. The acquisitions resulted in $145 million worth of additions to its property, plant and equipment during the 2014 financial year.

The company reportedly bought a 20,000-square foot property that joins its existing operations on Retirement Crescent to another piece it bought in October 2014. Its three properties combined are contiguous at numbers 22, 24 and 26 Retirement Crescent. The properties total some 1.3 acres or 57,000 square feet.

Honey Bun earned $69.9 million in profit from $885 million in sales for its September 2015 year end, compared with $22 million the previous year.

The company manufactures and distributes baked products to the local and export markets. It was listed on the junior market of the Jamaica Stock Exchange in June 2011. The profit rise contributed to the company’s stock jumping from $1.71 to $6.18 over 52 weeks.

The Gleaner

PORT OF SPAIN, Trinidad (AP) — Trinidad and Tobago’s leader has warned the Caribbean nation that it will have to adjust to making do with less amid major declines in energy revenue and declining production of natural gas and oil.

In a late Tuesday address, Prime Minister Keith Rowley said the twin-island nation must make serious adjustments if it is to avoid the kind of economic contractions it suffered during a 1980s oil bust.

He says the country could face the prospect of entering into a future loan agreement with the International Monetary Fund if it doesn’t make adjustments.

Rowley says US$1.5 billion will be taken from a stabilisation fund over the next two years. Meanwhile, the government might also explore for natural gas with Venezuela in an offshore field that straddles the two nations’ territories.

Jamaica Observer 

The Jamaica Public Service has entered into a Memorandum of Understanding (MOU) with a China-based energy company to build the 190 MW Old Harbour Bay Power Station.

The Chinese company will replace the Spanish firm Abengoa, which filed for protection from creditors a few days after it was named as the preferred bidder for the construction of the power plant.

President and Chief Executive Office of JPS, Kelly Tomblin has said that the name of the company cannot be released due to confidentiality agreements, but that the company was well known in China and within the energy sector.

“JPS, given its continuing concerns for the financial viability and strength of Abengoa and their inability to meet our financial requirements, has moved to enter into an MOU agreement with a Chinese EPC provider,” she told The Gleaner.

Meeting With ESET

She pointed out that the name of the firm and the terms of the deal will be made public once discussions are complete.

Tomblin also indicated that JPS will be meeting with the Energy Sector Enterprise Team (ESET) next week Monday to discuss the new bidder and the finer details of a possible deal between both parties.

“We plan to meet with ESET on Monday afternoon to go through final details, and we will disclose more after that meeting.”

The JPS moved to assure stakeholders that the 190 MW project remains on track for the plant’s commissioning in 2018.

JPS says it was undaunted by the financial woes being faced by Abengoa and would be looking at alternatives.

“Abengoa was selected based on its wide-ranging and impressive technical expertise. The firm has constructed several combined cycle power plants around the world, and is also well known for its construction of renewable energy power plants. JPS also had the understanding that Abengoa’s financiers were committed to the company for the long term,” the company said in a press release.

The Gleaner

Jamaican Grammy Award-winning artiste Sean Paul attends a press conference at the COP21, United Nations Climate Change Conference, in Le Bourget, north of Paris, France, last month.

After lending his talents to the song Love Song to the Earth, Grammy-winning artiste Sean Paul is looking to do more in the effort against climate change.

Addressing a press conference at the recently concluded international climate talks held in Paris, Sean Paul signalled a commitment to gathering and sharing information on the troubling phenomena.

“I was driven here in an electric car and I was inquiring a lot about the car – how much it takes to take care of it and how much it cost [to purchase]. And it was just crazy to me that people go and shop in stores, and in one day they could actually buy that car, which would help reduce a lot of carbon emissions,” said Sean Paul, who was in Paris to perform.

Greenhouse gas (GHG) emissions, including carbon dioxide – primarily the result of human actions, including coal burning and petrol use over the last 100-plus years – fuel global warming, which contributes to the climate impacts currently being experienced in small-island developing states like those of the Caribbean. Such impacts include sea-level rise and an increase in sea-surface temperatures, which stand to jeopardise coastal lives and livelihoods.

FRESH IDEAS

“Just being here is great for fresh ideas that I can bring back to my country. Me being here, seeing that car, having driven in the car, asking the questions and then going back to Jamaica to inquire how I can get cars like that there … .” added Sean Paul, who collaborated with Natasha Bedingfield, Paul McCartney, and others on Love Song to the Earth.

He also indicated that he was prepared to make adjustments in his own lifestyle.

“The less that I can put out in terms of garbage, and so on,” Sean Paul told the media, in reference to materials that are harmful to the environment.

And he is not alone in his resolve to promote information sharing and change in the effort to combat climate change. He is joined by other Caribbean acts, including another Jamaican, Aaron Silk, and Adrian ‘The Doc’ Martinez of Belize.

Both men were themselves in Paris performing under the ‘1.5 to Stay Alive’ campaign run by Panos Caribbean in collaboration with other key regional actors, notably the Caribbean Community Climate Change Centre, the Caribbean Development Bank, the Regional Council of Martinique, the Organisation of Eastern Caribbean States, and the St Lucia Ministry of Sustainable Development.

The Gleaner

Screen Shot 2015-12-22 at 22.05.48

Small island states lost out to their larger, more industrialised seniors at COP21.

 

The results of the climate change conference in Paris (COP21) give no reason for small island states to cheer. The agreement reflects many promises and little action.

The one item of concrete action is merely an undertaking to evaluate carbon emissions every five years — and even that has no teeth.

What is not in the agreement is a firm, legally binding commitment to limit average global temperature increases to 1.5 degrees Celsius. Also, not in the agreement is a legally binding commitment to provide developing countries with the funds needed to adapt to, and mitigate against the effects of climate change.

There isn’t even a commitment to a fund, in the sum of US$100 billion a year, that was frequently touted before the conference began.

Once again, the industrialised nations of the world — the worst polluters — took advantage of the weakness of the smallest countries of the world, which are the least polluters and the biggest victims of climate change.

To their credit, though, through the Alliance of Small Island States (AOSIS), representatives of small states did put up a good showing in Paris. Armed with the latest statistics and bolstered by a structured expert report released by the UN Framework Convention on Climate Change, they argued for the containment of global warming to 1.5 degrees Celsius, showing that, at 2 degrees, destruction would be widespread and irreversible. But, in the end, despite all the hoopla, applause and celebration, small states lost.

Representatives of AOSIS countries might have been flattered by a brief visit to them by US President Barack Obama, when he declared: “These nations are not the most populous nations, they don’t have big armies, they have a right to dignity and sense of place.” But, while President Obama was undoubtedly sincere in what he said, he also knew, even as he was saying it, that he could not deliver ratification by the US Congress of any agreement that limited carbon emissions or bound the US legally to warming no higher than 1.5 degrees Celsius.

So, the world has a so-called agreement, still to be ratified by the 196 participating countries, that only expresses an objective to limit global warming to “well below two degrees above pre-industrial levels”. The goal of 1.5 degrees Celsius, as described by Amber Rudd, the British minister for energy and climate change, is merely “aspirational”. In making her statement that the target of 1.5 degrees is aspirational, the minister was sending a clear signal to the British industrial world that driving down carbon emissions from fossil fuels is not an immediate objective and therefore will not affect their business.

In truth, the climate change action plans submitted by 188 countries would lead to a temperature rise as high as 2.7 degrees Celsius. And, if that is not bad enough, the signatories to the Paris agreement are under no legal obligation even to meet that objective; they are legally free to enlarge carbon emissions further. So, no cause for small island states to celebrate over that one, and profound reason for them to worry.

At three degrees, the size of islands will shrink, productive areas will be under water, people will have to move habitats inland and many will be forced to migrate, legally and illegally. We have to hope that all the scientists who predict this scenario are wrong.

On the money side, the developed countries declined to insert into the Paris agreement their often-made oral commitments to transfer funds to poorer countries in order to help them adapt. Yet, all the studies show that even the US$100 billion a year that was promised would not be enough to help developing countries build up a power system quickly or cheaply enough on renewable energy sources rather than coal or oil. Incidentally, even if the US$100 billion a year fund was achieved, access to it by small states in the Caribbean would be long and arduous, particularly if the criterion of “per capita” income continues to be applied as it is now by international financial institutions. The portion available to the Caribbean region would be a small fraction of the total sum.

Some may argue that there are two aspects of the Paris agreement that are beneficial to small states, therefore, attention should be paid to them. The participating countries recognised “the importance of averting, minimising and addressing loss and damage associated with the adverse effects of climate change, including weather events and slow onset events”. But, liability is completely ignored because it was opposed by the polluting industrialised countries. Recognition of a problem is far removed from committing to action to cure it.

Then there is the single binding legal requirement in the agreement. Every country is now required to come back every five years with new targets for reducing their carbon emissions. But there is no sanction if they fail to meet their previous commitment, and no sanction if they simply carry on business as usual.

COP21 in Paris may have been a triumph for some nations, but no self-respecting small island State should claim any satisfaction.

That is why each small State, individually and within the many organisations in which they are members — including AOSIS, the Commonwealth, La Francophonie, the Organization of American States and others — must now redouble their efforts to work on the developed country governments, but also to move beyond them to the conscience of the people of the industrialised world.

This is about survival and development — two defining challenges of this century for small states. It is the work of everyone; governments, businesses and civil society, all are involved and all could be consumed.

Jamaica Observer