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JPS To Offer Prepaid Meters Islandwide Next Year

December 18, 2015 Webmaster

A Jamaica Public Service technician at work seeking to regularize electricity supply in Denham Town, Kingston.

Utility provider Jamaica Public Service (JPS) will offer prepaid service in all parishes next year, but expects power consumption to dip slightly in the process.

The prepaid service will become available to all residential customers who opt for it, but will not initially be offered to commercial customers.

“By the end of 2016, we will offer prepaid meters to all parishes,” JPS President Kelly Tomblin told the Financial Gleaner in a telephone interview this week. “That’s our goal – to focus on residential customers.”

She explained that the service will eventually launch an app that will allow persons to top-up their accounts on their telephones or other devices.

Expectations of reduced revenues

Tomlin said the prepaid meter service is expected to reduce total revenues to JPS because of an expected reduction in consumption. However, the savings should give customers more disposable income to spend or save.

“It will help to grow the economy because if you use less (energy), then you have more money to spend, which helps the economy,” Tomblin said.

JPS introduced a prepaid electricity service as an option as part of the fulfilment of its pledge to find alternative energy solutions for all Jamaicans.

“It is intended for those Jamaicans who have asked us for a payment option that can better assist them in predicting and budgeting for their electricity bills. Although new to Jamaica, prepaid electricity is a standard service product offered by many electric utilities the world over for decades,” JPS said in response to Financial Gleaner queries.

To introduce the service, JPS opted to do a limited pilot of the programme across Kingston, St Andrew and St Catherine, which the company intends to use to tweak the product before a wider roll-out across the island in 2016.

JPS added that the service is currently available to all residential and Rate 20 (general services/small commercial) customers and potential customers across Kingston, St Catherine and St Andrew.

“Prepaid electricity service was never designed, and is not intended, as a tool to fight electricity theft,” the JPS said.” It has, however, proved to be a very effective tool for budget-conscious customers who want more control to tailor their consumption to match how much they have to spend at any given time,” the company added.

JPS made US$23.7 million in net profit over nine months ending September 2015 on revenues of US$583 million, which nearly doubled the US$12.5 million in profit earned a year earlier. The light and power provider said that it requires a new tariff to be approved by the Office of Utilities Regulation (OUR) as prepaid is a new and different service from the normal post-paid payment solution.

“Designing and developing a new tariff for a new utility service can be a complex matter and JPS and the OUR have been in discussions for many months on the subject,” said the JPS communications department. “This involved JPS making submissions to the OUR, showing different forecasts of what we believe the demand for the new service will be over time and the impact this will have on revenues, depending on the rate and structure of the tariff design,” it added.

The Gleaner

Alternative Energy Climate Change Crude Oil Government News

Make Climate Change A Personal Issue – US Diplomat

December 18, 2015 Webmaster

Errol Paisley (third left) of Stony Hill, St Andrew, accepts from Joshua Polacheck, counsellor for Public Affairs at the United States (US) Embassy, the $150,000 reward for the community’s winning effort of collecting 1,250 pounds of PET bottles in less than a month during Operation Clean Sweep. Also sharing in the occasion are project director Stephen Newland (second left) and Dr Kwame Emmanuel, global change co-ordiantor, during Wednesday’s prize-giving ceremony at the US, Embassy, Liguanea, St Andrew.

Addressing the issue of global climate change in a meaningful way can begin with small actions which, together, will have a big impact on containing carbon emissions, according to Joshua Polacheck, counsellor for public affairs at the United States (US) Embassy in Jamaica.

“People don’t think about it, but when you take a plastic bottle and just chuck it into the landfill or into the countryside and it ends up incinerated, you are adding to all the other carbons and other greenhouse effects, but if you recycle it, you are actually helping, in your own small part, to keep the global climate within manageable levels,” he pointed out on Wednesday.

“People may think, ‘oh, this is just a small local thing’, a question of beautification and resource use (but), it’s actually part of that small step that each of us needs to take to change our behaviour to help combat global climate change,” the State Department official told the Operation Clean Sweep prize-giving ceremony at the US Embassy, Liguanea, St Andrew.

Polacheck told participants in the recently concluded pilot project, under which community members from Rae Town, Kingston, Stony Hill, St Andrew, and Gregory Park, St Catherine were trained in solid waste best practices, that they needed to make climate change a personal concern.

“We think that for all countries, especially regional leaders like Jamaica and other small island developing states like the rest of CARICOM, like the countries in the South Pacific, it should be a very personal issue. It’s also a very personal issue for the United States,” he disclosed.

While it may not be something that comes readily to mind, the extensive coastline of the United States’ mainland, as well as the location of offshore territories such as Hawaii, makes the country and its citizens very vulnerable to the fallout from climate change, Polacheck disclosed.

He explained that the state of Arizona, which has extensive desert terrain, has had one of the worst droughts in a century, due mainly to the recent increase in global average temperatures.

Reducing The Fallout

With the recent international agreement on reducing carbon emission struck at the Conference of Parties (COP) 21, in Paris, presenting an opportunity for the world at large, the United States of America, which has taken a leadership role, will be looking to ramp up its collaboration with Jamaica on containing and reducing the fallout from climate change, especially at the grass-roots level.

“So the efforts that we’re making globally are going be part of the efforts we are doing on a bilateral level locally, here with Jamaica,” said Polacheck.

Meanwhile, Stephen Newland, project director for the pilot phase of Operation Clean Sweep, commended members from three select communities for their success in putting to good use the training in solid-waste management.

Residents of Stony Hill, St Andrew, took the top prize of $150,000 for the winning effort of collecting 1,250 pounds of PET bottles in less than a month.

With an average of 33 eight-ounce bottles weighing a pound, and 3,300 bottles estimated at 100lb, the number of bottles collected in and around the community since November 13 was mind-boggling.

For their efforts, residents of Rae Town, Kingston, who logged just about 200 pounds of bottles less than the winners, received $50,000, with Gregory Park, St Catherine, being the other community.

Dr Kwame Emmanuel, USAID/COMET 11’s global change coordinator, pointed to the other significant benefits of plastic-bottle collection and recycling beyond the monetary gains.

“For COMET (Community Empowerment and Transfor-mation), Operation Clean Sweep facilitated another opportunity to bolster social cohesion through the implementation of an environmental activity. The project also provided the communities with a social entrepreneurship idea, which will help to tackle the solid waste management crisis. Moving forward, it is hoped that the management team not only takes the consideration of lessons learnt during this short pilot, but also integrates the other two Rs – reduce and reuse – into the project.”

The Gleaner

Electricity JPS LNG

JPS Closing Negotiations With Alternate Bidder For 190mW Project

December 18, 2015 Webmaster

The Jamaica Public Service Company Ltd (JPS) has made good on its pledge to activate alternative plans to ensure the execution of the proposed 190-megawatt power plant at Old Harbour in St Catherine.

Yesterday, the light and power company said it was now in the final stages of negotiations with an alternate bidder to provide engineering, procurement and construction services, for the plant to be built in Old Harbour, St Catherine.

The original preferred bidder, Abengoa, was selected through a competitive tender process, with the assistance of two international consulting firms, AMEC Foster Wheeler and Power Engineers Collaborative LLC.

In November, the Spanish firm filed for protection from creditors – a possible first step towards filing for bankruptcy.

With the announcement of Abengoa’s financial challenges, JPS has been closely watching the progress of the Spanish company’s financial-restructuring plan.

However, Abengoa has not been able to provide the financial assurances required as a normal part of the process of confirming a bidder.

Kelly Tomblin, JPS president and chief executive officer, said: “We are very close to concluding key terms with one of our alternate bidders. Throughout this time, we have been working closely with the Electricity Sector Enterprise Team (ESET), so they are embedded in the process.”

Commenting on the importance of the project to Jamaica, Tomblin said: “We want to make it very clear that this project is not, and has never been, in danger. JPS shareholders (EWP and Marubeni) are the ones who have committed to bringing equity to the project, and there is keen interest and indicative commitment from a variety of financing sources. I want to make it very clear that the bidder on this project is not the financier. They are an engineering, procurement and construction firm, who will be subject to significant oversight and potential penalties for non-performance. We need to clear up any confusion on their role.”

The Gleaner

Crude Oil Government News Oil

Petrojam increases non-Venezuelan imports of crude oil

December 17, 2015 Webmaster

Petrojam, the government of Jamaica and Venezuela-owned refinery in Kingston, indicated on Monday that shipments of crude oil crude from Venezuela have increased somewhat, growing from an average 313,886 barrels imported per shipment between January 1 and December 1, 2014, to 344, 000 barrels per shipment this year.

For the 2014 period, 19 shipments were accepted compared to 18 shipments in 2015.

At the same time, however, the company shows that imports from non-Venezuelan sources have also increased over the period.

Petrojam said Monday that imports from source countries outside of Venezuela and including Mexico for 2015 covered five shipments averaging 323, 000 barrels each.

This compared to three shipments averaging 310,000 barrels in 2014 and in 2013 three shipments averaging 348,000 barrels.

The data on Venezuelan crude imports nevertheless runs counter to assessments made by Barclays Bank which says export of crude to PetroCaribe signatories in the region and Cuba had been cut significantly, analysis which has been widely recycled following last week’s congressional victory by the opposition party in Venezuela.

The repetition has accompanied the position that Venezuela might change the arrangement under which 18 Caribbean countries pay into its purses about half of the cash value of oil imports, then remit the rest over 25 years as a loan repayment at one per cent interest charge.

The report said that shipments to the Dominican Republic and Jamaica, which account for about half of the programme, have dropped 56 per cent and 74 per cent compared to 2012.

But Petrojam indicated by way of data that for Jamaica, at least for the last three years, supply from Venezuela has remained consistent in the main.

Andrew Baker, writing for BNamericas online on December 8, and citing new BNamericas Intelligence Series report said oil subsidies to Caribbean neighbours through the PetroCaribe initiative have cost the country US$50bn over the last decade.

He repeated the claim that “NicolÃ¡s Maduro, has quietly halved Petrocaribe shipments to about 200,000b/d from 400,000b/d in an effort to slow the bleeding, while continuing to publicly laud the programme.”

Petrojam, while indicating that it is now lifting more crude from other sources outside of Venezuela, showed that supplies have been consistent since January 2013.

Jamaica Observer

Alternative Energy Climate Change Crude Oil Government News Oil Solar Energy

New Climate Deal A Signal To Private Sector

December 16, 2015 Webmaster

Khan … I would say to the private sector, look at investing in renewable energy and energy efficiency.

The new global climate deal, reached after two weeks of intense negotiations, is a signal to the private sector, local and international, of the need to reassess current investment flows.

Jamaican negotiator Dr Orville Grey said the private sector will be critical, given the stated goal of the new deal of “holding the increase in the global average temperature to well below 28C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.58C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change”.

“The private sector will at some point have to take the lead because the technologies that are likely to take us to carbon neutrality will likely come from the private sector and not the public sector, at least as it relates to technology,” Grey, coordinator for adaptation for the Alliance of Small Island States during the negotiations, told The Gleaner.

If the world is to meet the ‘well-below-two’ target, it will require a significant shift in the current high levels of consumption of fossil fuels, including coal and oil, towards renewables such as solar and wind.

Colonel Oral Khan, chief technical director in the Ministry of Water, Land, Environment, and Climate Change and himself a member of the Jamaica delegation to the talks, was in full agreement.

“The private sector is encouraged under this agreement to support the mobilisation of finance to support adaptation and mitigation,” he said.

On Jamaica’s private sector, Khan said: “The State has submitted its intended nationally determined contribution commitment to [reducing greenhouse gas emissions] to the UNFCCC (United Nations Framework Convention on Climate Change) Secretariat. Our commitment is consistent with the goal of our National Energy Policy. I would say to the private sector, look at investing in renewable energy and energy efficiency. In time, I hope that we will see more entities entering into public-private partnerships.”

A Historic Turning Point

Neither Grey nor Khan is alone in their thinking; international leaders in business have echoed their sentiments.

“The business case for eliminating greenhouse gases by 2050 is irrefutable. Indeed, solving climate change presents the greatest economic and social development opportunity of our time,” said Sir Richard Branson, founder of the Virgin Group, in a release to the media on Saturday.

“The new climate agreement is a historic turning point. Now business can and must innovate to lead the transition to a clean economy. Together, it is our duty as human beings, responsible citizens and business leaders to protect the environment. A transition to a clean and green economy will lift millions out of poverty, and ensure the planet’s health for generations to come,” he added.

Arianna Huffington, president and editor-in-chief of the Huffington Post, mirrored his comments.

“This is truly a turning point in human history. We now have the chance to advance the well-being of people everywhere, while creating millions of new jobs and ending our reliance on fossil fuels,” she said in the same release.

“This will help us build a safer, more peaceful world for all. This is exactly what business needs in order to thrive in the long run,” added Huffington.

The Gleaner

Electricity Government JPS News

CURE taking JPS case to Privy Council

December 15, 2015 Webmaster

The Privy Council in London comforts foreign investors.

THE Court of Appeal yesterday gave lobby group Citizens United for the Reduction of Electricity (CURE) final leave to take its fight regarding the Jamaica Public Service’s (JPS) exclusive licence to the UK-based Privy Council.

The appellate court, in March of this year, gave CURE provisional leave to appeal to the Privy Council, Jamaica’s final court of appeal.

Cure is challenging the Court of Appeal decision, in January, to overturn a ruling by the Supreme Court that the JPS’s exclusive licence to provide electricity across the island was invalid.

In October 2012, Justice Bryan Sykes ruled that the exclusive aspect of the 20-year all-island licence, issued by the then energy minister to JPS in 2001, was invalid.

Alternative Energy Electricity News

High energy costs push NIC towards alternative power sources

December 15, 2015 Webmaster

As is the case with most local operations, the National Irrigation Commission (NIC) says energy eats up a large chunk of its operational expenses, with the State-run company spending close to $500 million on electricity in 2014/2015.

This accounted for 40 per cent of its operating costs, and already for this year, the commission’s electricity bill is at 47 per cent of operational costs. “So it is increasing as we bring on additional areas. Once there is a drought, then we have to increase the amount of pumping that is done in each of these districts. In some areas, for some months the electricity cost is greater than the revenue that we generate,” NIC Managing Director Mark Richards explained at yesterday’s

Jamaica Observer Monday Exchange.

The NIC provides irrigation services mainly to the agricultural sector, and to a lesser extent industrial and commercial operations in Yallahs, St Thomas; Rio Cobre and Colbeck in St Catherine; central clarendon; New Forest and Duff House, in Manchester; Braco, Trelawny; Hounslow and Beacon/Little Park, in St Elizabeth; and Seven Rivers in St James

“Our electricity cost is one of the significant challenges that we operate under. We are the second-biggest consumer and payee of the JPS. For the year so far up to October, we are at $330 million. So it’s a challenge [and]we are looking at different energy management strategies and engineering strategies [such as] retrofitting our pumps [and] scheduling of our flows in order to better match the service to deal with the demand,” Director of Technical Services Milton Henry explained.

Henry said the commission faces a peculiar challenge, as while energy prices are trending down, the NIC has to be ramping up its operations to satisfy increasing demand for irrigated water.

“Every system we bring on is contributing to our cost, and we have not been able to pass on those costs to our farmers; so as we partner with them, we are saying let us find some more efficient approaches. We have had quite a bit of success… we have grown our business at a time of major challenges and continue to do so,” Henry said, noting that the NIC’s customer base has doubled from 1,265 in 2006 to 2,349 in 2014.

The NIC has moved to cut down on energy costs by retrofitting 15 of its stations with energy-saving devices. It is also looking to solar and wind energy sources. “So far we did a wind study in Manchester with a view to putting in a five megawatt capacity which would meet a significant portion of our demand. The study has been completed and shows that it is feasible. We are expected to move to the next phase… with some urgency,” he said.

The NIC is also eagerly awaiting the resumption of net billing, which the JPS suspended in May to carry out a review of the two-year pilot programme. The assessment which was conducted by the United States’ National Renewable Energy Laboratory has been completed, but up to last month the energy ministry was not able to tell stakeholders in the solar energy sector exactly when the programme would resume.

Jamaica Observer

Climate Change Confrence Government News

Strength Of Paris Climate Deal In Question

December 12, 2015 Webmaster

Daley: I think there is a movement towards a text, which says the developed countries must continue to live up to the essence of the Convention.

PARIS, France:

Up to late last evening, it was still anyone’s guess as to the precise nature or strength of the climate agreement that is to emerge from Paris.

What was clear was the refusal of Caribbean and other small-island developing states (SIDS) to accept a deal that does not take full account of their particular needs in the face of climate-change impacts that could devastate entire economies and significantly reorder life as they know it.

Still, there is some willingness to compromise in the interest of reaching consensus, without which there can be no deal.

“A text was prepared [on Wednesday] and was more or less accepted in terms of its content as something that we can work on,” said Albert Daley, head of the Climate Change Division and a member of the Jamaica delegation to the international negotiations.

The ‘text’ is the label used to describe the intended outcome document while it is being negotiated.

“Having looked at it, there are a number of issues that we were concerned about … we were adamant that 1.5 [degrees Celsius as a cap in global temperatures] has to be in the agreement,” he added.

However, Daley said further: “We are conscious that there are some parties who are saying less than two [degrees Celsius], and so in the agreement that evolved, there was one option which spoke to well below 2 degrees C with the intent to move to 1.5 degrees C. That seemed like something that we would be willing to compromise on if we have to.”

They are also intent on ensuring that whatever the final agreement, it is one that recognises the special circumstances of SIDS. But as with other elements of the draft text, there is a battle raging.

“We are in a fight against other countries who say they are vulnerable. The Latin American countries – the Central American countries – are saying that they are vulnerable. Other countries, too, are claiming they are vulnerable and needing to get the same kind of special treatment. But we are insisting that SIDS have to be mentioned as a group of countries that have special circumstances that necessitate us being treated in a special way,” said Daley, who was in deliberations until 5 a.m. yesterday.

“Very few countries are like us. If we have a storm, other countries can retreat to the hills and continue life as normal. With us, the whole country is impacted,” he added.

WRANGLING OVER FINANCE

Meanwhile, there is yet more wrangling over finance – which SIDS want to be adequate, predictable and sustainable – as countries debate who should pay and how much.

“The countries that are responsible for the climate-change problem will have to take responsibility for contributing to helping countries to deal with the issue. What we are saying is that the developed countries, they were the original cause and they must finance it, according to the Convention (United Nations Framework Convention on Climate Change),” explained Daley.

“But they (the developed countries) are now saying you have some newly developed countries who have resources and, therefore, they should contribute to helping to address climate-change concerns. And they (those other countries) are saying, ‘No, the Convention says you (developed countries) are responsible and, therefore, should bear the brunt of it’,” he added.

Still, despite the cut and thrust of the talks, Daley was optimistic.

“I think there is a movement towards a text which says the developed countries must continue to live up to the essence of the Convention, which says we have common but differentiated responsibility … . And we are moving towards a state where other countries can voluntarily contribute financing where they are able to,” he noted.

“We are looking forward – having made our inputs to what we feel are reasonable bridging positions – to see what [the new draft text] looks like, and that would now provide the basis for the final round [of negotiations],” Daley added.

The Gleaner

Alternative Energy Climate Change News Solar Buzz Featured Solar Energy

Climate Change Awareness

December 11, 2015 Webmaster

This week Paris hosts nearly 200 governments at the climate talk in hopes to agree a deal that keeps the dangers of global warming in check. In light of this historic event taking place, Solar Buzz Jamaica wants to educate you on what you can do to save the planet for the generations to come.

What is global warming?

Carbon dioxide and greenhouse gases are released by burning of fossil fuels, land clearing, agriculture, and other human activities believed to be the primary sources of the global warming.

Resulting from this, the catastrophic climate change that has occurred in the last 50 years doesn’t just threaten our health, but our environments, homes, food and water supplies as well as the survival of many species.

What can be done?

Eat less meat – agriculture produces high levels of greenhouse gases.

Burn less turf – it doesn’t just cause biodiversity damage, but is more carbon-intensive than coal.

Reduce, reuse, recycle – recycle paper, plastic, metal and glass. Let store managers and manufacturers know you want products with minimal or recyclable packaging.

Choose renewable power – this is one of the most important solutions to the global warming crisis.

Benefits of going solar to combat climate change:

Solar energy can be easily utilised by both home and business and requires lower setup costs as compared to other renewable solutions.

Non-polluting: Solar energy is an alternative for fossil fuels as it is non-polluting, clean, reliable and renewable source of energy. It does not pollute the air by releasing harmful gases like carbon dioxide, nitrogen oxide or sulphur oxide. So damage to the environment is reduced.

Renewable Source: Solar energy is a renewable source of energy as it can be used to produce electricity as long as the sun exists. Solar energy reduces our dependence on the grid, lowers monthly bills, and can be used to harness power in the most remote locations.

Low maintenance: Solar systems generally don’t require much maintenance and run for a long time, they create no noise and have no moving parts. More solar panels can be added from time to time when needed. Initial cost tends to be recovered within 4-6 years.

Going solar can truly lower your carbon footprint while funnelling clean energy into the grid and into our homes and businesses. Green financing is becoming more readily available as climate awareness grows.

Be apart of something great, help combat climate change in your home and business.

Climate awareness + renewable sustainability = save the earth.

Climate Change Government

Caribbean Negotiators Dig In As Paris Talks Near Close

December 10, 2015 Webmaster

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

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