Dr Horace Chang says if given the green light from the utilities regulators, the National Water Commission (NWC) could generate even more power than the Jamaica Public Service (JPS).

Chang, who has responsibility for water in the Ministry of Economic Growth and Job Creation, said that currently the NWC’s biggest expense is its electricity bill, which averages around $450 million monthly.

“Of course, if the water supply company is allowed to generate its own power without any kind of guidance or regulation, we could end up producing more power than JPS. If we have hydropower, we can produce so much; we have lands we can produce solar power and not only remove ourselves from the grid in terms of supply sources,” Dr Chang argued.

He was addressing the final day of the three-day 14th Annual Conference of the Organisation of Utility Regulators last Friday, held at Secrets Resort and Spa in Montego Bay, St James.

He called on the utility regulators to examine the relationship between utilities.

“Can exception be made [in] how you do it and in what way it is done that it doesn’t end up superseding the other? That’s maybe the biggest question,” Dr Chang said. “Regulators have to create the framework in which the company itself can move forward; the broader policy of ownership is decided by the Government.”

The water minister explained that under the current arrangement, if the NWC or the National Irrigation Commission were to “produce power for itself and reuse it”, they would have to first be awarded a licence by the Office of Utilities Regulations.

“Under the current regulator, if you produce power, move it from one venue to the next, you need a licence. And if you are doing a licence, it has to be competitively awarded and that creates challenges,” he argued.

“Certainly, I think we can produce power on site, which we intend to do in a couple of our local outlets, but that raises some challenges.”

Another challenge he highlighted was wheeling, which refers to the scheduling of the energy transfer from one balancing authority to another. Since the wheeling of electric energy requires use of a transmission system, there is often an associated fee which goes to the transmission owners.

“The challenge here is not only wheeling for commercial purposes [and] home users, but since a water company can produce water in large amounts, the question of wheeling within the head of the utility becomes relevant. It is something that needs to be addressed,” Dr Chang said.

“The real impact of water is, it also has a social impact, but it has to be produced at an economical rate. And power becomes one of the big cost factors. For irrigation, in fact, we might not be able to provide our southern plain — which is our major provider of food supply — with irrigated water if we don’t have the right to produce some of the power for ourselves, because farmers cannot afford to pay the JPS bills.”

Jamaica Observer

Armed with comments from the Office of the Attorney General (AG), Jamaica is looking at next year to ratify the Paris Agreement, which sets the framework for the global response to climate change.

“We have received the comments of the AG, which point out the obligations the country would have under the agreement. We now have to complete a series of consultations with the various stakeholders that would have a critical part to play in meeting those obligations,” revealed Colonel Oral Khan, chief technical director in the Ministry of Economic Growth and Job Creation.

“So we are going to be entering into that period of consultation before we seek the formal approval to ratify. We do not anticipate any hurdles; it is just now a process that we have to go through to ensure that we do not leave anybody behind. When we ratify, everybody must understand their obligations,” he added. Among other things, Jamaica will need to satisfy the United Nations Framework Convention on Climate Change (UNFCCC) requirement for nationally determined contributions (NDCs) to reducing greenhouse gas emissions, which fuel global warming.

“We already submitted our INDCs (Intended Nationally Determined Contributions) and we are to confirm they are to move from INDCs to NDCs. So we have to formally notify the UNFCCC of our NDCs,” Khan explained.

PROCEDURAL MATTERS

There are, too, a number of procedural matters to deal with “such as some reporting requirements that will have to be met”, he noted. Jamaica’s adaptation strategy and action plans are among those items that will need to be reported on. Already, the island has identified a number of priority sectors for these plans, including water, health, tourism, human settlement and coastal resources, in addition to agriculture, forestry and energy.

“We will have to keep the UNFCCC updated on our steps to implement and in preparing those annual reports that we have to make,” Khan said.

At the same time, the chief technical director indicated that ministries, such as the Ministry of Science, Energy and Technology, will have “a significant role to play”.

“A lot of our targets in the NDCs are things that fall under the energy policy in terms of switching to renewable energy and so on,” Khan noted. Once the consultations are finalised, they will report to Cabinet for the required approval to proceed with the instruments of ratification.

“We have to satisfy the Cabinet that we have engaged all the stakeholders so they have a fair appreciation of what is involved,” Khan said. He has, however, cautioned that the process will take some time.

“We can’t just wish it and it is done,” Khan told The Gleaner. “The time of the year we are in and approaching and with members of our Climate Change Division participating in the COP (the 22nd Conference of the Parties to the UNFCCC in Morocco), that kind of slows our process down in terms of our resources to undertake and lead in some of the consultations.”

Added Khan: “So for the month of November, we are going to be pretty much tied up and the environment in December will not be conducive to consultations. So we could end up seeing the process drag into next year.”

Gleaner

Prime Minister Andrew Holness addresses the opening ceremony of the Organisation of Caribbean Utility Regulators Conference in Montego Bay, St James, yesterday.

Asserting that “we must get it right”, Prime Minister Andrew Holness has urged utility regulators to take seriously their role in helping the Caribbean ease its dependence on oil and embrace technologies and renewables key to energy diversification.

The regulators’ role, he said, is linked to the creation of partnerships with investors who want returns, consumers and governments pushing for the economic development of their countries.

Holness was addressing the opening ceremony for the 14 Organisation Of Caribbean Utility Regulators (OOCUR) conference at the Secrets Resorts & Spa in Montego Bay, St James.

A variety of issues are set for discussion over three days by the more than 160 regional and international experts.

However, Holness, noting the importance of energy to the region’s development and the current high levels of dependence on oil, made it clear that the issue should be at the top of the agenda.

“Energy is clearly the mission-critical frontier,” he said, pointing to the role of Jamaica’s Office of Utilities Regulation (OUR) in helping Jamaica introduce liquefied natural gas (LNG) as part of the energy mix.

“The OUR approved the funding for the conversion of the Jamaica Public Service Bogue plant to enable the move from heavy dependence on oil to diversifying to LNG. I applaud the OUR in this regard for being a strong regulator and helping to make this move a reality – to take Jamaica on this new platform. This is a great example of collaboration among Government, regulator, and utility,” Holness added.

A shipment of LNG supplies arrived in Jamaica last week Saturday, and in two weeks, is expected to be in full use.

TAKE ROLE SERIOUSLY

The prime minister emphasised that regulators have to take seriously their role in helping the Caribbean Community implement the Caribbean energy policy that was approved in 2013.

That policy promotes a shift in sustainable energy through increased use of renewable energy sources and energy efficiency, among other things.

“OOCUR, you have your work cut out for you as not only is Jamaica focused on diversifying its energy mix, so, too, is CARICOM, and we must get it right in the region. Access to affordable energy is a necessary requirement for addressing sustainable development in the region,” Holness said.

He also argued that while there is need for partnership with all stakeholders in the provision of utilities, the providers must insist on self-regulation to ensure that standards are upheld and service delivery is at a high quality.

Earlier, Albert Gordon, chairman of OOCUR, said the conference was happening at a time when regulation was becoming more important for sustainable development.

The conference schedule has placed heavy emphasis on renewable energy and investment.

Jamaica and many other small-island states of the Caribbean are heavy importers of oil, which increases their vulnerabilities to external shocks such as sharp oil price rises. Except for Trinidad and Tobago, the only net exporter of oil and natural gas, all other Caribbean countries are net oil importers.

“For importers other than Suriname, around 87 per cent of primary energy consumed is in the form of imported petroleum products. Imports are mostly diesel fuel for electricity generation, gasolene for transportation, and liquefied petroleum gas used as cooking gas in households,” experts noted in a paper titled ‘Caribbean Energy: Macro-Related Challenges’ released in March by the International Monetary Fund.

This, they said, has led to consistently high electricity rates, which affects the competitiveness and development of CARICOM nations.

Gleaner

When Blue Mountain Renewables (BMR) began operating its 36-megawatt wind farm in Potsdam, St Elizabeth, a few months ago, the facility became Jamaica’s largest private-sector renewable energy project.

Minister of Science, Energy and Technology Dr Andrew Wheatley, who gave the keynote address at the official opening on August 11, pointed out that the wind farm would help to diversify the country’s energy matrix and ease the dependence on imported fossil fuels.

“The wind farm is expected to reduce greenhouse gases by about 66,000 tons of carbon dioxide equivalent per year, roughly equivalent to taking 13,000 cars off the road,” he informed.

Wheatley also applauded the relationship and assistance the company has given to the neighbouring schools, Munro College and Hampton High, as well as the treatment of farmers in St Elizabeth who were affected during the construction phase.

Principal of Hampton High Heather Murray said that she could literally see the ‘wind of change’ with the advent of the BMR wind project.

She bemoans the fact that nearly a quarter of her school’s budget is spent on high electricity cost, money that could be spent on building a state-of-the-art science laboratory.

“BMR brings hope and we welcome them wholeheartedly. We are also excited about the efforts to go green and we are doing our part here at Hampton. Earlier this year, we swapped all fluorescent light bulbs for more environmentally friendly LED bulbs,” Murray stated.

She also informed that Hampton had installed about 12 solar panels to integrate renewable energy into their electric supply. The panels, combined with small wind turbines on the campus, now provide about one-fifth of the school’s energy needs, she noted.

 

TO SERVE THOUSANDS

 

The BMR Jamaica Wind project will serve thousands of customers annually. Power will be sold to the Jamaica Public Service (JPS) Company, under a 20-year power-purchase agreement. This electricity is expected to be among the lowest cost sources of power available on the JPS system.

Jamaica currently relies on oil imports to meet 90 per cent of its energy needs. This leaves the country vulnerable to fluctuating oil prices, which can make it difficult to budget and plan effectively.

To ease the dependence, the country has set a target to generate 30 per cent of its energy from local renewable sources such as hydro, wind and solar power by 2030.

President of BMR Bruce Levy said construction of the project was made easier by the cooperation of the Potsdam residents and the appreciation they showed for the work being done in their community.

“We made sure there was significant benefit to the local and wider community, with billions of dollars of direct spending and employment of hundreds of Jamaicans during construction. We say, without any fear of contradiction, that we are committed to community development,” he said.

Levy informed that the wind farm was made possible through a US$62.7 million financing package, including a US$42.7 million loan from the Overseas Private Investment Corporation (OPIC); a US$10 million loan from the International Finance Corporation (IFC), and a US$10 million loan from the IFC-Canada Climate Change Programme. BMR Energy provided an equity investment of US$26.9 million.

Gleaner

It’s the latest response to a fossil-fuel disaster.

Andrew Wheatley

 

A powerful line-up of speakers will address next month’s Organisation of Caribbean Utility Regulators (OOCUR) 14th annual conference in Montego Bay, St James.

Prime Minister Andrew Holness is among those confirmed for the conference, set for the Secrets Resorts and Spa, under the theme, “Regulation: Creating a Spectrum of Opportunities in the Caribbean”. It will run over three days – October 26 to 28.

OOCUR, a non-profit organisation, was established in 2002 by the signatories of six utility regulators across the Caribbean, including Jamaica’s Office of Utilities Regulation (OUR). It was established to assist in the improvement of utility regulation, facilitate understanding of regulation issues and undertake research, training and development.

Officials of the OUR will be featured heavily in the conference’s proceedings. Among those expected to participate are Albert Gordon, director general, and Joseph Matalon, the chairman. Also expected to address participants from across the Caribbean is Dr Andrew Wheatley, minister of science, energy, technology. This will be his first major conference in Jamaica as portfolio minister in the Holness administration.

The conference should be fully energised when Andrew Thorington, from the Caribbean Electric Utility Services Corporation, presents on the electric utility-regulator relations in the Caribbean. With raging debate in recent times about the need for cleaner energy, there will be a four-member panel discussion on the issue. The participants include Dan Potash, representing the United States Agency for International Development (USAID); Winston Robotham of the OUR; David Cooke of the Jamaica Public Service; and Dr Xavier Lemaire of University College, London Energy Institute.

The telecommunications regulators are expected to take centre stage on the second day of the conference. Professor Hopeton Dunn, chairman of the Broadcasting Commission, and Julian Wilkins of Caribbean Focus, Global Perspective, are among those expected to make presentations. The day will end with the meeting of the general assembly and then a meeting of OOCUR’s executive council.

Horace Chang, the minister with responsibility for water and housing, will make his presentation on the final day. His ministry has taken on much of the regulatory responsibilities for much of the country’s public bodies and agencies.

There will also be presentations from Skeeta Carasco, regulatory economist at the National Utilities Regulatory Commission, and Dwight DaCosta, deputy chief of party, USAID.

 

Gleaner

Consulting engineer Howard Chin is making the case for the Alpart plant, which was recently acquired by Chinese firm Jiuquan Iron and Steel Company Ltd (JISCO), to be operated entirely using renewable energy.

JISCO has announced plans to invest US$2 billion to expand the plant which will see the addition of an aluminium smelter powered by a coal-fired plant.

Chin has, however, argued that the heat that would be generated from the coal-fired plant could be detrimental to aquatic, plant and animal life in and around the Black River area, and as such, renewable-energy sources should be considered.

“Cooling the power plant and running the bauxite refinery requires a lot of water. How hot would the Black River become downstream of Alpart? Hot enough to kill animal life? Certainly, NEPA (National Environment and Planning Agency) is not answering these questions which have to be answered. Nor do they have the technical capability to do so,” Chin said in an emailed response to The Gleaner.

STORAGE POWER PLANT

In recognition of the problem of storage capacity associated with renewables, Chin explained that a large pumped hydroelectric storage power plant could be used to power the alumina plant in the first instance.

“It could be done using a large renewable energy system backed up by a pumped storage system,” he said.

Pumped hydroelectric storage facilities store energy in the form of water in an upper reservoir, pumped from another reservoir at a lower elevation. During periods of high electricity demand, power is generated by releasing the stored water through turbines in the same manner as a conventional hydropower station. During periods of low demand, the upper reservoir is recharged by using lower-cost electricity from the grid to pump the water back to the upper reservoir.

Turning his attention to the Bayer Process, which would be used to produce aluminium should the Chinese go ahead with plans to build a smelter at Alpart, Chin observed that the heat given off could be transferred to the alumina refinery, which requires it in large quantities. According to the former Jamaica Institution of Engineers president, the smelter could also be powered by renewable energy.

“The alumina refinery needs a lot of heat. The aluminium smelter needs electricity and ends up giving off a lot of heat. Frankly, it might be possible to run the combined alumina and aluminium refining plant on a mostly very large renewable-energy system and a very large pumped storage system, and moving the heat from where it is produced to where it is needed,” he said.

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 

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

MAHLUNG… emissions from the transport sector have increased significantly

JAMAICA SAW a reduction in its greenhouse gas (GHG) emissions between 2008 and 2012, signalling a step in the right direction for the island’s efforts to stave off negative climate change impacts.

“We have seen a reduction from about 27,000 gigagrams (CO2 equivalent) in 2008 to just about 20,000 in 2012,” revealed Clifford Mahlung, project administrator for the Third National Communication and Biennial Update Report to the United Nations Framework Convention on Climate Change (UNFCCC).

Mahlung was referencing findings from the Biennial Update Report that is to be submitted to Cabinet in another two or so weeks for their approval before submission to the UNFCCC.

“The main reason for this is the reduction in fuel consumption in the mining/bauxite sector. It was in 2008 that we had a downturn in the demand for bauxite,” he noted.

However, a former seasoned climate change negotiator for Jamaica, Mahlung cautioned that the island would need to continue its efforts to reduce emissions – and for a variety of reasons.

“With the upturn in bauxite since 2012, you could see the levels going up,” he noted.

And even with the move towards renewables ‘that are now somewhere about 20 per cent of the energy mix’, Mahlung said, emissions from the transport sector was trending up.

“What we have found is that emissions from the transport sector have increased significantly. It is now about 28 per cent of the total emissions and second only to the energy sector, which is 31 per cent,” he noted.

“It means that there should see some focus on how we can reduce the emissions coming out of the transport sector,” he added.

For this, Mahlung has lauded the efforts of actors such as the JPS.

“We support the report that we have heard from the JPS, for example, about the introduction of electric cars. And definitely we should also still be actively pursuing an improved mass transit system, such as rail,? he added.

JPS announced earlier this month that it was seeking a deal with American electric car maker Tesla – to fuel the appetite for electric cars, which are seen as one answer to current high levels of petrol consumption.

Global climate change is fuelled by emissions of GHGs, including carbon dioxide and methane, with significant negative implications for, in particular, small-island developing states, including Jamaica.

Among the negative impacts of the changing climate is increased global temperatures and extreme weather events, such as droughts, the burden of which Jamaicans have had to bear in recent times.

pwr.gleaner@gmail.com

 

The Gleaner