The cost of energy in the Caribbean is the highest in the world, according to the Caribbean Development Bank, but governments have increasingly been pushing renewable sources of energy, like these solar-powered road on Highway 2000 in Jamaica.

GEORGETOWN, Guyana (CMC) – A senior official of the Barbados-based Caribbean Development Bank (CDB) says the operationalising of the Green Climate Fund (GCF) provides an important opportunity for regional countries to not only adapt to climate change but also to mitigate its effects.

In addition, Selwin Hart, the Climate Change Finance Advisor with the CDB said the fund could also assist the Caribbean move towards renewable energy and energy efficiency.

“The cost of energy in the Caribbean is the highest in the world. This represents a serious strike on competitiveness, economic growth and job creation and the GCF presents a once in a lifetime opportunity for countries to have a stable source to financing to address the vulnerabilities both as it relates to importing fossil fuels as well as the impacts of climate change,” he said.

He said one of the major problems facing Caribbean countries in the past has been the lack of capacity to effectively access and use funds even when they were available.

“Many of the requirements for accessing global funds lie outside of the reach of many of the small capacity-constraint counties of the region. You have to undertake a rigorous examination in terms of fiduciary standards and social and environmental safeguards,” Hart said.

The CDB, as part of its climate resilient strategy, has been assisting countries to build that capacity. However, in some instances it is more feasible for that capacity to be built at a regional level rather than at the level of individual countries.

The bank has also been tasked by Caribbean leaders to lead the resource mobilisation effort and in this regard, the CDB is trying to position itself to serve at a regional financial intermediary.

The GCF will support projects, programmes, policies and other activities in developing countries using thematic funding windows’. It is intended to be the centre piece of efforts to raise climate finance of US$100 billion a year by 2020.

Meanwhile, the GCF for which preparations have been ongoing since 2010, has recently been finalised by its board; marking an end to a long and tedious process and giving the green light for the fund to move forward to mobilise resources.

Executive director at the GCF secretariat, Hela Cheikhrouhou, said that this is an important development which will put in place

a multilateral financing institution that is focused on providing concessional financing to both private and public sector beneficiaries in developing countries.

The Jamaica Observer;

The Jamaica Solar Energy Association says there is need for critical evaluation of the barriers which resulted in what it says was an anaemic response to net billing during the trial period which ended this month.

Net billing allows renewable energy producers to sell excess power to the national grid.

According to the association the net billing policy was a good one and therefore there is need for evaluation of the reasons the offer was not taken up by more players in the renewable energy market.

The association says it has provided substantial recommendations for improvement of the next phase of net billing.

It says these include simplifying the process and improving programme coordination and removing onerous and unnecessary prerequisites for obtaining a standard offer contract with the Jamaica Public Service Company.

The solar energy association says the Office of Utilities Regulations (OUR) should increase the generation capacity, especially for commercial entities and reduce the cost barriers.

The association is urging the OUR to implement these recommendations within the next few months.

Meanwhile, the association says commercial enterprises also await the implementation of power wheeling.

It is calling for the inclusion of renewables in this initiative.

Jamaica Gleaner;

Solar panels

The Jamaica Solar Energy Association is raising concern that there has been no word lately from the Office of Utilities Regulations (OUR) about the procurement for the supply of 115 megawatts of power from renewable energy sources.

The association says it is calling for probity, transparency and urgency in relation to the renewable energy project in light of the problems currently facing the 381 megawatt project.

The OUR has already named three bidders for the supply of 78 megawatts of that power but the association says the regulator has been silent on the next steps since March.

The association is calling for the OUR to ensure due diligence is observed in relation to the 115 megawatt procurement in light of the problems now plaguing the 381 megawatt project.

The Government last week announced that it is looking to revoke the licence issued to Energy World International after it failed to post its performance bond in relation to the project.

EWI has pointed to the refusal by the Inter-American Development Bank to provide funding for the project as one of the reasons it failed to meet the bond deadline.

The IDB is reportedly withholding its support because of alleged procurement breaches in the inclusion of EWI in the bidding process which were highlighted by the Office of the Contractor General.

Now the solar energy association is demanding that the OUR exercise due diligence to determine the technical competence and financial ability of the three bidders for the 115 megawatts project to begin construction in August 2014 for commissioning by July 2016.

The association is demanding that the OUR make public the licences issued for the supply of the renewable energy generation capacity in the same way that the licence to EWI was published.

Meanwhile, the association says the OUR had committed to issuing a new request for proposals for the remaining 37 megawatts of energy for the project in early 2014, but is yet to do so.

It says it is anxiously awaiting the start of the bidding process for those 37 megawatts.

Jamaica Gleaner;

AS the discussion about the building of a port at Goat Islands heats up, we note that the minister with responsibility for environment and climate change, Mr Robert Pickersgill, has been silent on the subject.

Minister Pickersgill’s absence from the debate is especially glaring because it was he, while on a five-day visit to China with Prime Minister Portia Simpson Miller and her team last August, who brought the matter into the public domain when he told representatives of China Harbour Engineering Company (CHEC) that the location was “now under very serious consideration”.

It’s glaring, too, given the environmental implications of building port facilities, with the accompanying infrastructure, in an area zoned for fish sanctuaries, game reserves, and housing what is perhaps the most pristine dry limestone forest in the region.

Housing, Transport and Works Minister Dr Omar Davies has been the one doing all the talking on this issue. To date, the most details the country has been fed about the much-talked-about project came in his presentation to Parliament last week Tuesday in which he outlined the basic scope of the works.

According to Dr Davies, the activities to be carried out under phase one include dredging and land reclamation, the construction of berths, warehouses, an industrial park, a container terminal, bridges, roads, pipelines, sewage lines and a sewage treatment plant.

CHEC intends, too, to build a coal-fired plant to avoid the high cost of electricity provided by the Jamaica Public Service Company.

While we maintain that environmental preservation and development do not have to be at odds with each other, we cannot overlook the effect of burning coal on air quality. In China, for instance, coal is used for about 65 per cent of its energy needs, but the Government is now seeking to cut its reliance on the fuel source by two percentage points a year.

Importantly, when coal is burned, it releases carbon dioxide, the main culprit in global warming and climate change.

On that basis, as Ms Dianna McCaulay rightly pointed out last week, the decision to allow such a plant in Jamaica is not in line with the country’s draft climate change policy. Neither does it appear to be in line with Vision 2030, which seeks to phase out fossil fuels to the point where 20 per cent of the energy mix will be supplied by renewable sources by 2030.

Surely, the apparent contradictions have not escaped Minister Pickersgill and the technocrats in his ministry. What, then, accounts for his silence?

Is the minister toeing the party line, or is he no longer committed to his oft repeated phrase “with climate change we must change”?

Jamaica Observer;

University of Cincinnati researchers are reporting early results on a way to make solar-powered panels in lights, calculators and roofs lighter, less expensive, more flexible (therefore less breakable) and more efficient.

Fei Yu, a University of Cincinnati doctoral student in materials engineering, presented new findings on boosting the power conversion efficiency of polymer solar cells on March 3, at the American Physical Society Meeting in Denver.

Yu is experimenting with adding a small fraction of graphene nanoflakes to polymer-blend bulk-heterojunction (BHJ) solar cells to improve performance and lower costs of solar energy.

“There has been a lot of study on how to make plastic solar cells more efficient, so they can take the place of silicon solar cells in the future,” says Yu. “They can be made into thinner, lighter and more flexible panels. However, they’re currently not as efficient as silicon solar cells, so we’re examining how to increase that efficiency.”

Imagine accidentally kicking over a silicon solar-powered garden light, only to see the solar-powered cell crack. Polymers are carbon-based materials that are more flexible than the traditional, fragile silicon solar cells. Charge transport, though, has been a limiting factor for polymer solar cell performance.

Graphene, a natural form of carbon, is a relatively newly discovered material that’s less than a nanometer thin. “Because graphene is pure carbon, its charge conductivity is very high,” explains Yu. “We want to maximize the energy being absorbed by the solar cell, so we are increasing the ratio of the donor to acceptor and we’re using a very low fraction of graphene to achieve that.”

Yu’s research found that efficiency increased threefold by adding graphene, because the material was helping to rapidly transport charges to achieve higher photocurrent. “The increased performance, although well below the highest efficiency achieved in organic photovoltaic (OPV) devices, is nevertheless significant in indicating that pristine graphene can be used as a charge transporter,” says Yu.

Yu’s advisor, Vikram K. Kuppa, an assistant professor in the School of Energy, Environmental, Biological and Medical Engineering (SEEBME) for the UC College of Engineering and Applied Sciences (CEAS), was a contributor to the research. Kuppa is leading the research of a variety of polymer-blend solar cells involving the use of graphene.

Future research will focus on device physics, film morphology and how to control and optimize these randomly distributed graphene nanoflakes by a variety of methods to achieve better performance.

Science Daily;

The latest measurements confirm that the world’s oil and natural gas supplies are running out too fast. At some time between 2010 and 2020 the world’s supply of oil and gas will fall below the level required to meet international demand.

The US government is aware that we are about to endure a disastrous international energy shortage. According to Dr James McKenzie, a senior member of the climate change programme at the World Resources Institute in Washington, USA: “That’s why we went to war in Iraq.”

We always knew the world’s oil reserves would run out eventually. The oil was formed by natural geological processes which occurred over millions of years. Oil consumption presently exceeds 25 billion barrels a year and demand continues to spiral upward, out of control. The outcome is inevitable.

In the 21st Century we rely on oil (petrol) and gas for transport – cars, lorries, ships, aircraft – as well as electrical power. We cannot survive without oil and gas, and when the supply runs out the great engine of Western civilization will finally grind to a halt. We are heading for an event that will be remembered as one of the great disasters of human history, and life is going to get harder for everybody as the day of reckoning draws nearer.

In the years ahead, wars will be fought over oil and fuel as the oil-dependent superpowers struggle in vein to preserve our unsustainable way of life. We are entering a period of great change and there are be difficult times ahead. The process has already begun. Students of prophecy will be familiar with certain relevant verses from Christian scripture concerning the signs of the end times (Matt. 24.8; Mk 13.8, Rom. 8.22; Rev. 12.03, 21.1-4). As it was translated in 1961 in the New English Bible: “With these things, the birth pangs of the new age begin” (Mt.24:8; Mk.13:8). Whether you are religious or secular, you should be aware that the tide of history is turning.

In North America, where we use far more oil than anywhere else on Earth, the vast majority (71%) of electrical power generation is entirely dependent on fossil fuels – coal (52%), gas (16%), and oil (3%). The world’s natural gas is running out along with the oil, and the coal supply is not unlimited either. Nuclear energy contributes only one-fifth to the US power network, and 7% of power is hydroelectric. Only 2% of US electricity production is from renewable sources. As we continue to burning up the world’s dwindling fossil energy sources at a terrifying rate, we simultaneously unleash catastrophic damage to the natural environment.

The Insider recently reported a wave of four major electrical power outages which struck the US; then the UK; followed by Denmark and Sweden; and then Italy, Switzerland, Austria and France. The effects only lasted a few hours, but each case was the biggest power failure in the history of the affected country. These massive power cuts were separated by a matter of days. The governments were only practicing this time. This is just the beginning.

It would be prudent to pursue alternative energy sources before it is too late, but the oil corporations will never allow this to happen. So important is oil as a resource that it brings great wealth and power to those who control it. Consequently, our corrupt politicians, whose power is lavishly funded with oil money, prefer to serve the short-term interests of greedy oil executives than the long-term interests of ordinary people like you. But as long as we have food in our bellies and entertainment to keep us busy, why should we care? Thus, it is the immorality and indifference of our species that ultimately leads to our own demise.

Nothing lasts forever. Like all the great civilizations in the past, ours has a limited life-span. A few years from now the Westernized world will reach the point where there is no longer enough fuel to sustain civilization in its present form. This will literally be the end of civilization as we know it.

The Insider;

Up to yesterday, there was still no word from the Office of Utilities Regulation (OUR) on the security bond from the three selected preferred bidders for the 115 megawatts of electricity-generation project using renewable energy-based power-generation facilities on a build, own and operate basis.

On October 1, the OUR announced that it had selected three companies which would supply 78 megawatts of the required amount. They had until this past Tuesday to provide the OUR with the applicable proposal security.

The named preferred bidders were Blue Mountain Renewables LLC, to supply 34 megawatts of capacity from wind power at Munro in St Elizabeth; Wigton Windfarm Limited, to supply 24 megawatts of capacity from wind power at Rose Hill, Manchester; and WRB Enterprises Inc, to supply 20 megawatts of capacity from Solar PV through facilities in Content Village, Clarendon.

The proposed delivery price to the national grid for these projects ranged from US$0.1290 to US$0.1880.

Jamaica Gleaner;

The Office of Utilities Regulation (OUR) has selected three preferred bidders for the supply of up to 115 megawatts of electricity-generation capacity from renewable energy-based power-generation facilities on a build, own, and operate basis.

In a release yesterday, the OUR said from the proposals for energy-only, the evaluation panel recommended three entities as preferred bidders with capacity amounting to 78 megawatts. These comprise two projects offering energy from wind, amounting to 58 megawatts; and one offering solar, amounting to 20 megawatts.

The preferred bidders are Blue Mountain Renewables LLC, to supply 34 megawatts of capacity from wind power at Munro in St Elizabeth; Wigton Windfarm Limited, to supply 24 megawatts of capacity from wind power at Rose Hill, Manchester; and WRB Enterprises Inc, to supply 20 megawatts of capacity from solar PV from facilities in Content Village, Clarendon.

The proposed delivery price to the national grid for these projects ranged from US$0.1290 to US$0.1880.

The preferred bidders have been directed to provide the OUR with the applicable proposal security by October 15.

The OUR said on June 3 that it had received 28 bids from 20 interested entities, which submitted proposals to supply renewable energy electricity generation of greater than 100 kilowatts and up to 115 megawatts to the national grid.

The bids were tendered by both local and international entities, with eight proposals received from local companies. Two proposals were received for wind, one for biomass, and 25 for solar energy.

Jamaica Gleaner;

Global production of photovoltaic (PV) cells grew by 10% in 2012 in comparison to 2011 despite a 9% decline in solar energy investments according to the annual “PV Status Report” released by the European Commission‘s Joint Research Centre. Europe remained a leader in newly installed capacities accounting for 51.7% (16.8 GW) of the 30 GW installed worldwide.

Abundant solar resources in combination with zero emissions from solar installations have attributed to PV energy systems a key role in the transition to a low carbon energy supply. This potential has driven development of more efficient PV modules and transformed the sector into one of the fastest growing industries. Production of PV cells and modules has gone from 46 MW in 1990 to 38.5 GW in 2012. Statistically documented cumulative installations worldwide accounted for almost 100 GW in 2012 placing the EU in the lead position with its share of over 69 GW.

Within the EU, Germany has kept its leading position in PV installation with an additional 7.6 GW in 2012, while Italy‘s newly installed 3.5 GW have allowed it to reach an electricity production covering 7.3% of the total electricity demand during the first seven months of 2013.

A steep, 80% drop of solar modules prices between 2008 and 2012, triggered by an overcapacity of production, created serious financial problems for manufacturers, but led to a consolidation of the industry and fuelled an extensive growth for the PV market in Asia: 60% in 2012 and a projected 100% in 2013. The rise in annual production has resulted in China and Taiwan to accounting for 70% of the global production.

Even with the on-going difficult economic conditions, the number of the new PV markets is increasing. This, along with rising energy prices and the pressure to stabilise the climate will maintain a high demand for solar power systems. Electricity production from PV modules has already proved that it can be cheaper than current conventional consumer electricity prices in many countries. In addition, renewable energies which are not fuel-dependent, are, in contrast to conventional energy sources, among the technologies to offer the prospect of a reduction in prices.

Science Daily;

 

Is there an energy problem in Jamaica? The growing energy crisis in Jamaica has been a cause for concern ever since the Government divested the Jamaica Public Service Company (JPS).

Consumers and producers complain about the high cost of energy. Firms often blame their low productivity, low output, high price for final goods and services, as well as low profitability, on the high cost of energy in Jamaica.

The lowest consumers pay in Jamaica is $40, or US39 cents per kilo watt hour, compared to the United States where energy cost is as low as 12 cents per kilo watt hour in some places.

Jamaica consumes approximately 605 mega watts of energy per day. The country has the capacity to produce in excess of 700 mega watts per day from the old, inefficient power plants across the island. However, plans are being put in place to replace 475 mega watts of our daily usage with cleaner, more efficient sources; a 360-mega watt plant and 155 mega watts from renewable sources including, but not limited to, solar, wind mill and hydro. These two projects combined, are expected to reduce the cost of energy to the consumer by 25 to 30 per cent by 2016.

What is being done about the issue?

The winner of the bid to establish the renewable-energy sources has not yet been announced, but Azurest Cambridge Consortium has won the bid to possibly build this new energy plant that will supply 360 mega watts of Jamaica’s daily usage.

The estimated cost, including buildings, barges, the plant and other infrastructure is US$690 million. Total cost, minus labour, is estimated to be US$580 million. In total, the plant will use three barges, the first barge will be delivered 17 months after Azurest and JPS sign off on a power-purchase agreement. Negotiation are expected to start within the next three weeks, and should take about three to four months.

Azurest plans to sell the energy to JPS, at a price between 13 and 22 cents US per kilo watt hour, earning no more than 20 per cent return on its investment.

The US$100 million core equity committed to project, with hopes of raising US$50 million locally, and the rest overseas, in a 78 per cent to 22 per cent debt-equity ratio.

How will they finance the rest?

The International Finance Corporation plans to raise funds to possibly support the establishment of the 360 mega watt-power plant project in Jamaica, by issuing bonds on the domestic market.

IFC plans to raise US$500 million, or J$51 billion, from the issue. The bonds will have a triple-A rating and will be targeted at pension funds, banks and other investors. The bonds will also carry lower interest rates than the Bank of Jamaica Treasury Bill Rates.

This strategy to raise funds is not new as it was employed in the Dominican Republic to raise approximately US $10 million to fuel two micro-finance operations in the country. The IFC is unsure as to the exact date these bonds will reach the market, but know it will occur during the course of Jamaica’s four-year agreement with the IMF.

Upon establishment of the plant, Azurest will sell all the energy it produces to the JPS, who operate both a monopoly and a monopsony market.

What is a monopoly market?

This is a situation where there is only one seller of goods and/or services in the market. There is no competition as other firms cannot enter the market freely due to barriers to entry.

In this case, based on JPS’s contract with the Government, no other firm can supply electricity in Jamaica.

Given that JPS is the only supplier in the market, if unregulated; it can charge any price it desires. The company usually charges a price higher and supply less than what is efficient.

What is a monopsony market?

A monopsony market is the other way around, instead of one sell such as the case with the monopoly, in this case there is only one buyer of goods and/or services.

JPS is the only company that buys energy in Jamaica. Any company can produce energy, but given that JPS is the only distributor of electricity, it is the only company that buys energy.

In this case, if unregulated once more, the JPS can push the cost price down because there are no other firms in this purchasers market.

Who regulates?

In Jamaica, The Office of Utilities Regulation monitors JPS’s activities.

It regulates and prevents any abuse of monopoly and/or monopsony power that the JPS might be tempted to exercise.

The Jamaica Gleaner;