Winsome Callum

Early indications from the Jamaica Public Service (JPS) have pointed to a breakdown in its protection systems as the most likely cause of the islandwide power outage that occurred over the weekend.

While the company has said that more fulsome investigations into the issue will take time, it has confirmed that the outage was triggered during scheduled maintenance work at the Port Authority of Jamaica (PAJ) substation in Kingston.

“The scheduled work was part of ongoing system improvements being done by JPS to our power delivery (transmission and distribution) network,” Winsome Callum, director of corporate communications at the power company, said in an emailed response to The Gleaner.

 

Breakdown In Operating Procedures

 

According to Callum, initial investigations have revealed that there was a breakdown in the implementation of the established operating procedures for the work being done. This, she said, triggered a system fault that led to the outage.

“Preliminary indications are that the first level of the protection system did not operate as expected. As a result, several units at our power plants went offline. The network, in turn, shut down to protect itself from possible damage,” she said in explaining the failure on the protection system.

The protection system is a built-in mechanism on the national grid which is designed to safeguard against procedural errors.

“The protection system is designed to operate at different levels, ranging from isolating areas with a fault all the way up to the ultimate protection being to shut the entire electricity network down in the event of a major system fault,” the power company said.

The electricity supplier has indicated that in the coming days, its investigations will be focused on evaluating why the protection mechanism did not operate as expected.

The power company said it has already taken corrective measures and will be investing in system upgrades to create what it describes as a self-healing grid.

In the meantime, the Office of Utilities Regulation will today meet with executives of the JPS to discuss details of the ongoing investigations into the power outage.

The utility regulator wrote to the company yesterday requesting a preliminary report into the incident.

Callum confirmed that Energy Minister Dr Andrew Wheatley was provided with a preliminary overview on the outage and was to receive an initial report yesterday.

andre.poyser@gleanerjm.com

The 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 

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

Tomblin

 

The Jamaica Public Service Company (JPS), managers of the national electricity grid expects Golar LNG to ship liquefied natural gas to Jamaica, despite its heavy losses.

Golar is contracted to New Fortress Energy (NFE), the latter being JPS’s selected partner to develop and supply natural gas to the Jamaican utility. New Fortress is five months behind schedule with deliveries.

JPS President and Chief Executive Officer Kelly Tomblin said that even in the worst-case scenario, the power utility remains protected.

“Golar is a public company with a market cap of about US$1.5 billion and a balance sheet with over US$4 billion of assets. It’s been in business since 1946 and is widely followed by investors all over the world,” said Tomblin in a response to Gleaner queries.

“New Fortress Energy has indicated to me that they have been a dependable and reliable partner in preparing to deliver gas to Jamaica. JPS is protected contractually if New Fortress fails to bring gas, as required in the gas supply agreement.”

NFE earlier this year contracted Golar for two years to ship LNG to Jamaica. The first shipments will feed JPS’s plant at Bogue in Montego Bay, which has already been retrofitted to burn gas as well as diesel oil.

In early June, NFE acknowledged Gleaner queries regarding the implications of Golar’s finances, but did not follow through with a response.

NET LOSSES

Golar reported net losses of US$80 million for its first quarter ending March. The loss was mainly because of its US$61.5 million in operating expenses, towering over its US$18.6 million in revenues for the period. Over 12 months, Golar posted a US$197.6-million net loss for financial year 2015 and US$43 million in net losses for 2014.

Last month, CEO Gary Smith resigned, and its former CEO, Oscar Spieler, retook control of the company amid restructuring of the operations.

Tomblin expects the LNG projects at Bogue and, later, at Old Harbour, along with additional capacity from renewable plants, to reduce the power utility’s reliance on heavy oil from 95 per cent to 50 per cent in the medium term.

steven.jackson@gleanerjm.com

 

The Gleaner

The oil-fired JPS power plant in Old Harbour Bay, St Catherine is to be replaced with a gas-fired plant.

Jamaica Public Service Company (JPS) says the National Environment and Planning Agency (NEPA) has approved the construction of the 190-megawatt gas-fired power plant at Old Harbour Bay, St Catherine.

The Office of Utilities Regulation and the Electricity Sector Enterprise Team have also given formal approval of the power purchase agreement for the new facility, the power utility said.

JPS President and CEO Kelly Tomblin said the utility was now finalising details of the project with equipment supplier General Electric Corp, and engineering procurement and construction company Power China. The latter company has been contracted to build the plant.

The arrangements for the project are to be finalised within the next two weeks.

JPS’ disclosure of the project approval follows its weekend announcement, via a posting on its website, that it had finalised an agreement with New Fortress Energy to supply the Old Harbour plant with natural gas.

“We are now at an advanced stage in relation to closing the financing of the project, which we expect to be completed by the end of April,” said the JPS chief executive.

New Fortress is also the utility’s gas supply partner for the power plant at Bogue in Montego Bay.

The Old Harbour plant will be a brand new facility. Once built, JPS plans to dismantle the current oil-fired plant at Old Harbour and return the site to brownfield status.

“We anticipate that this new power plant will be generating electricity at below 13 US cents per kWh when it comes on line, which is remarkable, given the necessity to build new infrastructure and bear the transportation and other logistic costs,” Kelly said.

The timelines for the project were laid out during last November’s public consultations on the environmental impact assessment report.

JPS said yesterday that there are no changes to the timeline for site preparation for the liquefied natural gas plant, which is scheduled to begin in the first quarter of 2016, giving the utility just days to hit that deadline.

Construction will begin by the second quarter and the plant’s commissioning is expected by July 2018.

JPS entered into a memorandum of understanding in December 2015 with a Chinese company, now identified as Power China to build the 190, megawatt plant.

The Chinese company replaced the Spanish engineering and renewable energy firm Abengoa, which filed for bankruptcy protection just days after striking a deal with JPS.

The Jamaican utility reaffirmed on Wednesday that the 190MW project is expected to cost around US$300 million.

The gas component, which includes development of a terminal and pipelines to the JPS plant, is a separate project to be undertaken by New Fortress. The arrangement is similar to that agreed for the Bogue plant.

JPS also already had dealings with General Electric, which is converting the diesel-fired Bogue plant to a combined cycle operation to burn either diesel or LNG.

The conversion is costing JPS US$22.74 million or about $2.7 billion, and is scheduled to wrap up by midyear.

Gleaner

Light company at ease with increase in customer satisfaction

Light distributor Jamaica Public Service (JPS) has reported a 24 per cent jump in annual profits, increasing from US$23 million in financial year 2014 to US$28.6 million for 2015.

The increase in profits came despite a 54 per cent decline on year-on-year net profits for the December period, with the quarter closing at US$4.87 million ($589 million), compared to almost US$10.5 million for the same quarter in 2014.

The decline in net profit was led by a US$47.6 million dip in revenues as oil which fuels most of JPS power stations continues to trend downward and the consistent passing of the reduced rates on customer’s electricity bills, according to just released data.

Revenue for the three-month period ending December 2015 was US$176.7 million, compared with US$224.3 million a year earlier.

“It’s really great to have lower prices, yes, but what’s not great is for them to go up and down. So we’ve worked on how we do create a more sustainable environment that doesn’t have that volatility. I have to say that the one that’s right here, right now is the Bogue project,” JPS CEO Kelly Tomblin stated at a press conference earlier this month.

“The other thing that will help with this problem is an integrated resource plan (IRP), which will help us in determining what resource and where will best support sustainability and most of all affordability,” she added.

Consumer electricity rates are currently at a five-year low.

Despite seeing significant declines in net profit, JPS expressed some satisfaction with the quality of service being provided to consumers which trended upwards at 70 per cent in 2015.

JPS saw one of its lowest satisfaction rates back in 2012 at 22 per cent; however, Tomblin is encouraged by the growth in customer satisfaction and plans on implementing 10 initiatives geared towards continued growth in customer service.

“You can see how customer satisfaction has grown; it’s almost at 70 per cent. We are not happy with that but we have worked very hard to say to our customers we appreciate you and we want to be in a different conversation,” she said.

Senior vice-president for energy delivery and technology, Gary Barrow, noted that the company has already seen a 30.3 per cent decrease in the frequency of outages when compared with the previous year. The company also noted that it is working on the Government of Jamaica to improve payment for street lights, as it moves to implement LED lighting over the next five years.

Throughout 2016, JPS plans on completing the conversion of the Bogue power plant, while partaking in initiatives to lead in a ‘clean and green’ Jamaica. Additionally, the company has started the process of implementing advance smart grid, proliferate prepaid meters, improving customer engagement, and the implementation of the JPS mobile application.

JPS also plans on connecting 10 new communities during the year.

Jamaica Observer

  Workmen from the Jamaica Public Service's Hurricane Restoration Team assess a broken pole on Mandela Highway, St Andrew - file.
Workmen from the Jamaica Public Service’s Hurricane Restoration Team assess a broken pole on Mandela Highway, St Andrew – file.

The Jamaica Public Service Company, JPS, says it has already spent US$4 million to repair damage caused by Hurricane Sandy.

And JPS vice president for technical services Ricardo Rennalls says it is projected that the entire restoration process will cost over US$7 million.

Speaking at a press conference this morning to update the country on the JPS restoration work, Rennals disclosed that the compaany suffered extensive damage to its distribution system.

He says the JPS lost thousands of electricity poles and 130 transformers, but has already restored over 1,500 poles.

While praising the performance of the company throughout the

  Workmen from the Jamaica Public Service's Hurricane Restoration Team assess a broken pole on Mandela Highway, St Andrew - file.
Workmen from the Jamaica Public Service’s Hurricane Restoration Team assess a broken pole on Mandela Highway, St Andrew – file.

The Jamaica Public Service Company, JPS, says it has already spent US$4 million to repair damage caused by Hurricane Sandy.

And JPS vice president for technical services Ricardo Rennalls says it is projected that the entire restoration process will cost over US$7 million.

Speaking at a press conference this morning to update the country on the JPS restoration work, Rennals disclosed that the compaany suffered extensive damage to its distribution system.

He says the JPS lost thousands of electricity poles and 130 transformers, but has already restored over 1,500 poles.

While praising the performance of the company throughout the

KINGSTON, Jamaica – Residents along Windward Road today renewed pleas for the Jamaica Public Service (JPS) to fix a broken utility pole in the area

The residents said that while they are aware the JPS continues work to remove downed utility poles across the island, they feel the broken pole is in need of urgent attention.

They fear the wires may be energised, posing serious threat to passersby.

“The pole is hanging over the roadway and we fear it may fall at any time and damage a member of the public,” resident Foster Dawkins