WITH ONLY two days to go before the official end to the climate talks here, Caribbean negotiators are working feverishly to safeguard the region’s interest in the final outcome document.

That document – referred to as ‘the text’ throughout the negotiating process – is widely expected to inform the global response to climate change.

“All of the Caribbean issues are still alive, which is a good thing … . We haven’t lost anything in the text,” said head of the CARICOM Task Force on Climate Change Dr James Fletcher.

But, he cautioned: “We haven’t sealed the deal on too many things. What has happened is that the COP [Conference of the Parties to the United Nations Framework Convention on Climate Change] president (Laurent Fabius) has put out the latest version of the text.”

“It is a shortened version … but we are still not anywhere near a final text because there are so many options still on the table,” explained Fletcher, who is also St Lucia’s minister of sustainable development, energy, science, and technology.

He was speaking to The Gleaner following the 3 p.m. release of the latest text yesterday, which reflects the current state of play of the negotiations on issues such as adaptation, loss and damage, finance, technology, and mitigation.

The options the minister referred to are the so-called ‘bracketed text’, on which no consensus has been reached among countries. Until they are agreed, the brackets cannot be removed and there can be no final document.

Areas Of Interest

Among the Caribbean’s particular areas of interest are loss and damage; 1.5 degrees Celsius as the target for a cap on greenhouse gas emission increases; and additional, predictable, and adequate financing.

“What has been happening since that draft text was distributed is that the various groups have been meeting to review the text to identify where there are possible areas of compromise, where there are significant red lines [points of no return] and issues that they cannot live with,” he said.

Once those groups – including the Alliance of Small Island States of which CARICOM countries form a part – come back, the process will move forward with a meeting of all countries, as they attempt to reach consensus on a final document.

A Mountain To Climb

In commenting on the work it would take to get there, one of Jamaica’s senior negotiators, Jeffrey Spooner, said: “It is not a hill but a mountain that we have to climb.

“And we all have to climb it, in the interest of the planet for the next generation,” he added.

Meanwhile, Spooner said there was no question of the Caribbean pressing home what it needs in order to ensure its survival in the face of climate impacts, including sea-level rise, coastal erosion, droughts, stronger hurricanes, among other things.

“By tomorrow [today], we will know exactly where we stand and, of course, we will still press for our concerns. ‘1.5 to Stay Alive’ and loss and damage – these are two important items for us,” he said.

Fletcher agreed.

“By and large, all of our issues are on the table, and that is a good thing. What has to happen now is that we have to fight to ensure that not only do they remain on the table, but that they are reflected in the final text … “.

The Gleaner

PATTERSON… we have great cause to be concerned about the effects of climate change

 

NASSAU, Bahamas (CMC) — Former Jamaican Prime Minister P J Patterson says there is need for strong political awareness of the relevant issues related climate change and disaster risk considerations.

Patterson, who spoke at the opening of the 9th Caribbean Conference on Comprehensive Disaster Management earlier this week, encouraged politicians to foster close collaboration with regional agencies with mandates regarding climate change.

“Political awareness and support are key in order to ensure full support at the highest level of Governments for appropriate allocation of national funds to address these issues.

According to Patterson, the region is fully aware of the challenges linked to climate change, as faced by small island developing states .

“Our regional Heads of Government and our people are well-acquainted, many of us through adverse experiences, with the challenges our countries face as small island developing states in a highly hazard prone region of the world. At times, it seems that the rich natural endowments with which we have been blessed are borne by curses that serve to impede our advancement.”

The former prime minister stressed the importance of a “consolidated approach and collective action to protect our environment to avert disasters where we can, or at least, to mitigate their effects, and at the same time, to spur sustainable development”.

He added that the region’s approach to the achievement of sustainable development globally, regionally and nationally must be through integrated efforts to achieve resilience.

“The building of a resilient nation has to begin and proceed on the base of community resilience. We can learn a great deal from the Cuban model, which has been tested and proven.”

Concerning national policies, Patterson said climate change measures must be integrated.

“This must resonate with us in the Caribbean. We have great cause to be concerned about the effects of climate change; rising sea levels which threaten our coastal developments, and devastate our agricultural production; more severe tropical storms which can eradicate years of hard work in a few short hours; and proliferation of tropical diseases.”

He added that the disasters constitute a “clear and present danger to our lives and well being. It could wipe out the tourism product entirely and destroy all our prospects for economic growth”.

In making reference to the Paris conference, Patterson said the outcome is very important to the region “as we are disproportionately vulnerable to the effects of climate change. The countries represented here are in the main small island states. While we fall within the same category of landlocked and developed countries which are also most disadvantaged, I believe the Caribbean and the small Pacific Islands should be singled out for very special and urgent attention by the Developed World and the International Institutions as is now the accepted case for Africa.”

Patterson, at the same time, said officials need to broaden their outreach for the next conference to include, possibly as associates in the first instance, all nations which are part of the geographic space — Guadeloupe, Martinique, Curacao, St Maarten, Cuba, the Dominican Republic and Puerto Rico.

“Natural disasters, when they come, do not seem to respect national borders. They spread their fury, regardless of flags. In avoiding, moderating and responding to disasters, we need a more inclusive approach to secure the best deployment of personnel, technology and equipment,” he said.

 

The Observer

 

CO-EXECUTIVE director of The Caribbean Policy Research Institute (CaPRI), Dr Christopher Tufton, will this week travel to Barbados to chair a workshop on Barbados’ country report on renewable energy options at the Caribbean Development Bank Conference Centre in St Michael.

With funding from the European Union (EU) under its Energy Facility II programme, CaPRI has been implementing the ‘Frameworks, Policies and Instruments for Mobilising Renewable Energy in the Caribbean’ project over the past two and a half years.

The overall objective of the project is to empower both the public and private sectors and other energy consumers in the Caribbean to make informed decisions on renewable energy investments, and to provide input to policymaking in order to create an enabling environment to accelerate such investment.

The workshop will present the country report which included analyses of renewable energy technology options as well as a number of tools aimed at the public and private sector, including:

*Technology assessment tool — an online calculator which will enable Caribbean businesses and energy consumers to size and cost renewable energy systems to meet their energy needs;

* Renewable energy financing database — a searchable database of local and international financing schemes to allow energy consumers, businesses and project developers to identify appropriate financing for their renewable energy projects, large and small;

* Policies and incentives database — a complete database of incentives available for renewable energy investments in the Caribbean;

*Cost benefit analysis tool.

According to Tufton, the workshop will also include a practical session using the cost benefit tool, and an opportunity for participants to provide feedback on its usefulness. So far CaPRI has presented country reports in Haiti, St Kitts and Nevis, Grenada, and Jamaica with Barbados and Guyana left.

This CaPRI EU programme is valued at approximately 500,000 Euros over four years and represents the most in-depth database on renewable energy in the Caribbean.

CaPRI is hopeful that this database will be used by policymakers, the private sector and the general public to increase the use of renewables in the region, Tufton said.

The Observer

Venezuela announced Saturday that its state-owned oil company will buy a 25 per cent stake in West Indies Oil Company and that it will establish a regional bank with the Antigua & Barbuda government to fund a new resort.

The announcement came during a visit to Antigua by Venezuelan President Nicolas Maduro, who was on a whirlwind weekend Caribbean tour that included stops at three other nations – Suriname, St Lucia and Grenada. He was meeting with their leaders to discuss economic and social development initiatives.

Venezuelan officials said the regional bank would finance the new Simon Bolivar Resort Hotel and other development projects using resources generated by the PetroCaribe program, which provides low-cost oil financing to Caribbean and Central American countries and invests in social development projects.

Just The Beginning

Executives at Venezuela’s state oil company, Petroleos de Venezuela SA, said the purchase of a stake in West Indies Oil Company was just the beginning of “joint investments” between the countries.

The Caribbean nations visited by Maduro are members of the PetroCaribe programme, which critics say has lost effectiveness with the drop in oil prices. Last March, Barclays analysts estimated Venezuela had cut the program’s daily oil shipments in half, to 200,000 barrels from 400,000.

Maduro defended the programme Saturday, saying Venezuela is looking to increase cooperation with its Caribbean neighbours.

“PetroCaribe is a reality and it is our starting point, our foundation to build a powerful economic zone,” Maduro said.

Antigua & Barbuda Prime Minister Gaston Browne said that he and Maduro “agreed to work in various areas of cooperation”.

 

The Gleaner

Energy Minister Phillip Paulwell said yesterday that he expects renewable energy to comprise 12.5 per cent of the national grid by the end of 2016.

The Office of Utilities Regulation (OUR) has invited interested entities to submit proposals for the provision of new generating capacity from renewable energy sources up to 37 megawatts (MW) to the national grid.

Currently, six per cent of the national grid is supplied by renewables, and this is to increase with the addition of 78MW by March next year with the coming on stream of three new renewable projects.

The National Energy Policy has identified fuel diversification and the development of the country’s renewable energy sources as two of its main objectives. The policy sets a target of having 20 per cent of the country’s energy being generated from renewables by 2030.

“My own view now is that we should aim for 30 per cent. The 12.5 will be achieved next year and we will be the leading Caribbean country in terms of renewables,” Paulwell said.

SYSTEM CAPACITY

Light and power provider, the Jamaica Public Service Company (JPS), supplies consumers from an installed system capacity of approximately 945.1MW.

To date, the highest peak demand registered on the system was 644.4MW. In 2014, annual generation from renewable energy sources accounted for approximately six per cent of total system generation, with contributions of 2.5 per cent and 3.5 per cent from hydro and wind, respectively.

Meanwhile, Paulwell revealed that the net-billing arrangement is to be recommenced next month. The programme was suspended to undertake a review of the performance of the system and Paulwell said “all indications are that it has been doing very well and we, therefore, are going to resume”.

Net-billing is the system whereby the JPS buys excess power from its customers.

LICENCES ISSUED

More than 300 net billing licences have so far been issued by the energy minister, and the suspension of the system was undertaken to evaluate its success.

“We have not achieved the original target to get to 4MW of electricity being generated by that means and also we have not seen any degradation of the grid as a result,” Paulwell said.

But while the Government gets set to resume the net-billing arrangements, JPS has said that the regulatory authorities must institute a special cost system for persons who generate most of their own energy through renewable energy but are still dependent on the grid.

“If you come on for one hour, I have to do the same exact generation that I have to do if you are on for one day,” Kelly Tomblin, JPS president and CEO, told The Gleaner.

But Paulwell, responding to that charge, said “that is an argument that the OUR will have to address. Our policy is to encourage more and more renewables at the individual level.”

 

The Gleaner

The Jamaica Public Service Company (JPS) has signed an agreement for the long-awaited supply of gas to the island.

The company has announced that it has signed a deal with the United States (US)-based New Fortress Energy for the supply of gas to Jamaica, after receiving approvals from the Government and the Office of Utilities Regulation (OUR).

Under the agreement, New Fortress Energy will provide the JPS with liquefied natural gas (LNG) for its 120-megawatt power plant in Bogue, St James.

The plant, which was first commissioned into service in 2003, is being converted to run on gas instead of the more expensive automotive diesel oil.

“This is a historic moment for JPS and for Jamaica,” said Kelly Tomblin, president and CEO of the JPS.

“JPS has worked since 2012 to procure gas as part our fuel diversification strategy. We are fortunate that we can now take advantage of technology related to gas shipments and supportive US policies that allow the export of gas to non-FTA countries.

“Just today (Friday), Fortress received its permit from the US Government to export gas to Jamaica. JPS is honoured to be leading this game-changer for the energy sector,” said Tomblin.

 

Support National Goals

 

The JPS CEO said the introduction of gas will support the national goals of energy security, sustainability and affordability.

“The move to cleaner fuels and more flexible generation will reduce our environmental footprint by allowing Jamaica to optimise our use of renewables while we simultaneously reduce emissions from our baseload generation,” said Tomblin.

According to Tomblin, the JPS has been working closely with the Electricity Sector Enterprise Team, which was set up by the Government to oversee the upgrade and expansion of Jamaica’s energy sector.

The signing of the gas supply agreement has set the stage for work to begin on the infrastructure needed for the delivery of gas to Bogue by early 2016.

Wes Edens, founder and co-chairman of the board of Fortress Investment Group, declared New Fortress Energy’s commitment to investing and creating value in Jamaica.

“This agreement opens the door to a new era of energy diversity and independence for Jamaica and its citizens, enabling the region to benefit from cost-effective, stable supplies of US natural gas.

“Our vision extends far beyond Bogue. This will be the catalyst to establish Jamaica as an energy hub for the Caribbean and Latin America. Jamaica is the ideal location to execute on this vision, and we intend to invest significantly in energy, port and logistics infrastructure on the island. Change takes vision and we applaud JPS, its leadership, and the Government of Jamaica for working tirelessly towards this moment.”

 

The Gleaner

The Ministry of Agriculture and Fisheries, through the National Irrigation Commission (NIC) is set to introduce the use of solar power to operate the pumping of water for irrigation.

Minister of Agriculture, Labour and Social Security Derrick Kellier says the move will commence shortly with the commissioning into operation of solar power to operate the pumping system at Ebony Park in Clarendon.

In September a $300 million irrigation project will be launched at Spring Plain/Ebony Park bringing the nearly 3,000-acre property at the agro-park into full production.

Kellier, who was speaking at the 63rd Annual Denbigh Agricultural, Industrial and Food Show in Clarendon on Saturday, August 1, said that if Jamaica is to increase its production and productivity and ensure its food security, irrigation systems needed to be significantly improved and expanded.

Noting that the total irrigable land in Jamaica is 187,814 hectares yet only 12,500 hectares or about seven per cent of that land is irrigated, Kellier outlined a number of strategies intended to optimise and expand the country’s irrigation systems.

The imperative to optimise and expand the country’s irrigation systems is not born solely from the scarcity of water, but from the imperative to increase productivity and Jamaica may very well reach the stage where fiscal incentives for investment in irrigation had to be provided, Kellier said.

The agriculture ministry was therefore preparing a comprehensive proposal to be discussed with the appropriate authority, he added.

“I believe we have no alternative since these droughts are the greatest threat to increased production,” said Kellier.

According to the ministry, in addition to various climate-smart and drought mitigation projects, over $5 billion has been spent over the past 10 years to install new irrigation systems to ensure sustainable agriculture and the reduction of dependence on rainfall.

 

Jamaica Observer 

Two years after failing to find qualified bidders to deliver 37 megawatts of firm renewable energy capacity, the Office of Utilities Regulation (OUR) has returned to the market seek suitable investors.

However, this time around it is willing to take bids for electricity that is generated intermittently – such as when the sun is out or as the wind blows – rather than guaranteed power being made available to the grid.

Waste-to-energy projects, including the conversion of the Riverton dump into a fuel source for such a plant, was seen a means of providing firm capacity in the past.

But only one of the 28 bids that went after the requests for proposal to build 115MW of renewable capacity (of which 78MW would be energy only) was related to biomass.

Two of the proposals received then were wind projects and 25 were for solar energy.

In the end, Wigton and BMR Jamaica were chosen to build a combined 60MW of wind capacity and Content Solar Jamaica Limited was picked to develop a 20MW photovoltaic solar farm in Clarendon.

“None of the bids submitted in respect of firm capacity, made it through all the stages of the evaluation process to be accorded preferred bidder

status,” said a release from the regulator in 2013.

Bidders for the latest RFP will be evaluated on the same grounds as the last time – 20 per cent weighting will be given to experience, while ability to finance the project carriers a 35 per cent weighting across stage 1 evaluation scores.

Bidders have up until January 27, 2016 to submit their proposals, along with a US$8,000 ($940,000) non-refundable application fee. A pre-bid meeting is scheduled for August 28.

The regulator is aiming to evaluate bids; negotiate contracts between the power providers and Jamaican Public Service Company; and see the chosen bidder start construction of the new plant by July 2017 for a December 2018 commissioning date.

The OUR will give an additional year for firm capacity plants to be commissioned.

JPS currently supplies consumers from an installed system capacity of approximately 945.1MW, of which 300.6MW is provided by independent power providers.

In 2014, annual generation from renewable energy sources accounted for approximately six per cent of total system generation, with contributions of 2.5 per cent and 3.5 per cent from hydro and wind, respectively.

 

The Gleaner

US-OWNED BMR Energy aims to secure US$20 million in financing from the International Finance Corporation (IFC) for its multimillion dollar wind farm in St Elizabeth.

“IFC is considering a $20 million loan to BMR Jamaica Wind Limited to support the development of a 34 megawatt (MW) greenfield wind farm in St Elizabeth Parish, Jamaica,” said the private finance arm of the World Bank in a recent disclosure.

The financing from the IFC would include an “A Loan for its own account of up to US$10 million, and a concessional loan as implementing entity of the Canada Climate Change Programme of up to US$10 million”.

The rest of the debt financing needs of the project is slated to come from a long-term senior loan from the Overseas Private Investment Corporation, the IFC stated.

The planned 34 MW wind farm, which costs US$90 million ($9.9 billion), should slash US$500 million in oil imports over 20 years, company documents indicate.

The wind farm will be adjacent to the existing three MW wind farm in Munroe owned by the national power utility, Jamaica Public Service Company (JPS).

The BMR project should begin construction in the fourth quarter of 2014 and commence operations in mid-2015, stated the IFC.

BMR’s main partner includes American Capital Ltd (ACL), a management firm that seeks to invest in fast-growing companies via debt and equity.

Over the last three years ACL committed over US$2 billion in new investments. It recently increased its focus on investments in its American Capital Energy Infrastructure (ACEI) division with investments in Nigeria and Jamaica.

“ACEI partnered with a veteran management team to create BMR Energy LLC (“BMR”), a new energy company focused on developing and investing in power and related energy infrastructure throughout Central America and the Caribbean,” said the ACEI in its latest annual report. “ACEI committed US$25 million to BMR’s first project, which is a 34 MW wind farm in Malvern, St Elizabeth Parish, Jamaica.”

In September 2013, the Office of Utilities Regulation in Jamaica selected BMR to build, own, and operate the wind project.

The project falls under the Government’s drive to generate 20 per cent of the island’s energy from renewable sources by 2030.

Currently eight per cent of the country’s energy comes from renewable sources (including biomass) or three percentage points lower than the target of 11 per cent by 2012, experts indicate.

JMA President Brian Pengelley. – Rudolph Brown/Photographer

Brian Pengelley was on Wednesday re-elected as president of the Jamaica Manufacturers’ Association (JMA) for a fourth and final term, that will remain focused on unresolved issues that dominated debate last year.

On his list: the high cost of energy, the depreciation of the dollar, the impact of crime on the business environment, and tax policy.

“With the cost of energy at 42 US cents per kilowatt hour, we expect that the process of getting the construction of the 381MW plant back on track will be handled as a matter of urgency,” said Pengelley in his acceptance speech.

He said the JMA would assist Jamaica Public Service Company (JPS) in naming any local company that steals electricity, saying “This pilferage of electricity not only hinders Jamaica’s development but puts a strain on our already scarce foreign-exchange reserves.”

JPS estimates that it loses about 17 per cent of electricity supplies to theft; that the stealing of electricity cost the power company about $11 billion last year; and that eradicating theft could cut electricity costs to consumers by up to 15 per cent.

The utility has said that the problem spans residential and business customers, with the latter said to employ more sophisticated bypass mechanisms.

Regarding the value of the Jamaican dollar, Pengelley said while the association notes the benefits of the International Monetary Fund programme in the rebounding competitiveness of local products, continued depreciation will ultimately hurt competitiveness locally and intentionally, since most local manufacturers must import their raw material.

The JMD is now nudging $112 to the USD, but is expected to fall even further to around $120 this year.

“It disrupts the ability of manufacturers to cope and makes it difficult for the majority of the workforce to satisfy basic needs,” the JMA president said.

Others elected alongside Pengelley were deputy president Metry Seaga of Jamaica Fibreglass Products Limited; treasurer Jason Dear of No Brand Chemicals; and eight directors – Mark Chin of AMG Packaging; Howard Mitchell of Corrpak Jamaica; Dennis Valdez of Newport-Fersan; Radcliffe Murray of Caribbean Producers Jamaica; Stafford Hyde of Architectural Windows and Doors Limited; Michelle Smith of Chocolate Dreams; Raymond Miles of Sun Island and Kathryn Silvera of Caribbean Foods.

tameka.gordon@gleanerjm.com