jamaica Archives - Page 29 of 79

Electricity bidder proposes LNG power barges

April 10, 2013 Webmaster

AZUREST Partners and Cambridge Project Development are saying that natural gas electricity generation can happen in Jamaica in little over a year.

The two firms’ joint submission to the Office of Utilities Regulations (OUR) proposes to use natural gas-fired power barges, which can be built within 12 to 15 months after getting the go-ahead from the Government.

An LNG offshore terminal designed for unloading, storage and regasifying liquefied natural gas. Azurest and Cambridge propose to build power barges that would be fed by small LNG ships.

What’s more, they believe that they can access liquefied natural gas (LNG) economically, “because we will have our own LNG source in the US Gulf Coast, the cheapest gas source in the world”.

The idea is to directly feed the power barges located in Jamaica from its fleet of smaller LNG supply vessels.

“Our smaller ships, of a scale appropriate to Jamaica, make our LNG transport process economical,” said Kenneth Allen, managing director of Azurest.

Allen said that his proposal allows for a modular approach to building out the generating capacity — each barge can provide 100 megawatts (MW) of capacity — but if allowed to build all of the 400 MW, its LNG-fired plants could save the country US$415 million annually.

“If we are allowed to put in all of our 400 MW of clean LNG high-efficiency generation capacity, then we should be able to reduce the price paid by the Jamaican public by at least 10 US cents (from 40 US cents to about 28 US cents), or about 25 per cent across the whole country,” he said.

Five entities have presented proposals to the OUR in response to its announcement in February that it would review proposals to supply generation capacity.

The OUR aims to advise the Government of the final results of its analysis on Monday.

Jamaica Public Service Company (JPS) also submitted three proposals for consideration by the OUR, according to the power company’s CEO, Kelly Tomblin.

The proposals are for the construction of 360 MW of new generation capacity, using combined cycle technology and a combination of fuel sources: natural gas as primary fuel, with Automotive Diesel Oil (ADO) as backup fuel; natural gas as primary fuel with inlet air cooling power enhancement, and ADO as backup fuel; and Liquefied Petroleum Gas (LPG) as the primary fuel.

However, Wartsila Caribbean, which is the proposed technology provider for three of the bids, including the Cambridge/Azurest joint venture, has said that its reciprocating engines are a good deal more efficient than the combined cycle gas turbines (CCGT) being proposed for use by JPS.

The reciprocating engines could save over US$100 million a year more than the proposed CCGT, according to Wartsila Caribbean Vice-president Rodney George — and that’s even without LNG.

“Bogue is a living example where the CCGT plant has a combined cycle efficiency of only 40 per cent,” said George. “In comparison, the JEP (Jamaica Energy Partners) West Kingston plant with Wartsila reciprocating engines, have a simple cycle efficiency of close to 45 per cent… regardless of what fuel is utilised, be it LNG, LPG, or ADO, the efficiency quotient remains the same.”

Despite suggestions to the contrary, JPS is confident that combined cycle technology is of far greater benefit to the country than other options being considered, such as diesel engine technology, according to the JPS boss.

“While we haven’t seen the other proposals, our information shows that CCGT not only offers lower overall costs through greater efficiency and lower operating and maintenance costs. It is also more environmentally friendly,” Tomblin said. “Although JPS and the GOJ continue to evaluate all potential gas supply options, if the immediate supply options for LNG do not result in the desired reduction in electricity charges, LPG (Liquefied Petroleum Gas) is a great option.

“LPG is more accessible right now and can be easily incorporated in our long-term plans for fuel diversification and price reduction,” she added. “The current prices show LPG providing attractive cost reductions for our customers.”

In the meantime, George proposes that the use of backup liquid fuel such as heavy fuel oil (HFO) is “not far-fetched given the uncertainty of securing LNG or LPG supplies”.

Allen said that if the other bidders aren’t using LNG, “they are probably not the lowest cost solution for the Jamaican electricity consumer”.

Cambridge is a developer of energy and environmental infrastructure projects focused on the Caribbean and has in-house experience successfully developing over US$2 billion in projects in the Caribbean Basin, as well as the long-term management of over 12 independent power plants.

Azurest Partners is a financial advisory and capital-raising firm, where team members have collectively raised over US$900 million in equity and US$2 billion in debt financing for clients in the US, UK and Africa.

Government Determined to Solve Energy Problem

April 8, 2013 Webmaster

JPS

JPS Enters Retail Market Selling Customers Products To Cut Energy Cost

April 8, 2013 jrobinson

Kelly Tomblin officially opens the company’s first eStore, which sells devices to help monitor, protect and conserve energy.

Sacha Walters-Gregory, Staff Reporter

National power supplier, Jamaica Public Service (JPS), is relinquishing power to its customers by venturing into retail, with its new e-Store which sells devices designed to cut customers’ energy costs.

“It’s really to put knowledge and information in our customers’ hands. As you look at our products you’ll see that a lot of our products are designed to do just that,” said Kelly Tomblin, president and CEO of JPS, at the official opening of the first store last Thursday.

The power company, often dogged by customers’ complaints of high energy costs, is selling devices to save energy, protect electrical equipment and monitor electricity usage, which will ultimately allow consumers to reduce energy consumption.

Located at the power company’s Ruthven Road Customer Service Office, at 23 Ruthven Road, St Andrew, the store is one of four stores to be opened this year.

“The products really help our customers to say, this costs me that and unfortunately when you get a bill at the end of the month for activity done throughout that month there’s nothing you can do about it at that time, but we’re going to give them information along the way so they can afford that energy bill and then after that we’re going to talk about how you decrease your usage,” said Tomblin. She further explained that energy conservation needs to be more relevant to customers.

REAL CONSERVATION

“The reason we believe that these kind of products and stores are necessary is that we’re finding although we give conservation a lot of lip service we haven’t got passionate about it. I think it’s because we haven’t made it real, conservation and show a bill before and after. So we’re hoping that along with the government we can lead the way to show real decreases in energy prices,” she said.

One of the products available in the store is the Digital Energy Timer, invented locally, which can be attached to a variety of electrical devices, allowing owners to automatically turn these devices off when not in use by way of a timer or by way of the Internet. It can be applied on a small scale in homes or larger scale in businesses. According to a release from the company, “the timer, which also comes with an energy meter that measures power consumed, can be installed at distribution panels, electrical enclosures and specific zone areas and is particularly useful in determining energy usage of one section of a factory or a tenant in a rental situation. ”

Other products include LED lights which can reduce energy costs by approximately $3,000 per bulb per year; an Energy Saving Kit ($2,900 including GCT), which includes a low-flow shower head that allows you to use 0.5 less gallons of water, a timer to alert you when you’ve reached the optimal time for a shower, a sensored night light and three energy-efficient bulbs and surge protector devices.

Customers can also access the devices available at the eStore, at JPS branches islandwide.

sacha.walters@gleanerjm.com)

Government News

CLARITY NEEDED ON GASOLENE TAX

April 5, 2013 Webmaster

PROFESSOR Rosalea Hamilton, head of the MSME (micro, small and medium-sized enterprises) Alliance, is calling for clarity on Wednesday’s implementation of an increase in gas tax.

“The ripple effect of this tax is devastating, as it affects all sectors. Therefore, more clarity and transparency are required on how it is being applied,” Hamilton told Auto.

HAMILTON… the ripple effect of this tax is devastating, as it affects all

Hamilton said with this week’s increase in fuel prices, a representative of the state-run refinery Petrojam should explain how the new tax is applied.

“It’s the responsibility of the people who have the authority to make these decisions to properly inform the public. They are to say, very clearly, that in addition to the US Gulf reference price and movement of the American dollar, we now have a tax of whatever the figure is so that we’re all clear,” she said.

According to Petrojam’s weekly billing prices, the price of gasolene went up on Wednesday by $2.31 per litre, while the price of diesel rose by $2.50 per litre.

The professor said this situation compounds an existing problem of Petrojam’s pricing formula “which is not transparent”.

However, in confirming the application of the new tax on fuel prices on Wednesday, Winston Watson, managing director of Petrojam, said: “The tax was applied and the effect was minimal. The tax is a like-for-like replacement.”

Watson explained that the Government had replaced the Custom User Fee (CUF)

Government News

CLARITY NEEDED ON GASOLENE TAX

April 5, 2013 jrobinson