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General Electric To Retrofit Bogue Power Plant

June 26, 2015 Webmaster

Dr Vincent Lawrence, head of the Electricity Sector Enterprise Team (ESET), says the Jamaica Public Service Company (JPS) will conclude an agreement with General Electric for the retrofitting of its Bogue power plant in Montego Bay to be fired by liquefied natural gas.

Lawrence said the expected supply cost for LNG to the plant is US$14 per million BTUs, which is about half the US$27 unit cost to supply the plant with diesel, he added.

“We are very excited,” said Lawrence on Tuesday at his third press conference as chairman of ESET – a special body created to execute projects aimed at reforming Jamaica’s electricity market. “We are satisfied that the project is on target for the first quarter of 2016.”

His announcement puts to rest speculation that JPS was still considering a flirtation with propane as an interim fuel before moving to LNG.

The contract being finalised with General Electric is the second major announcement for the 115MW Bogue project, following last week’s disclosure in a market filing by JPS that it had hired Fortress Energy, another American company, to supply gas for the plant.

Last night, JPS said that General Electric would retrofit the plant for LNG, while Fortress would develop the regasification and storage facility. Fortress will also supply the gas.

JPS says the deal with General Electric is valued at US$15 million. However, the power utility was mum on the Fortress transaction, nor would it disclose the price at which Bogue would supply power to the grid under the partnership.

Previously, the company had floated US$80 million as an indicative cost for the full project, but that was before it found partners for the jobs.

Lawrence also announced Tuesday that JPS has got 12 expressions of interest through its request for proposals in June for development of a 190MW plant in Old Harbour, St Catherine, each of which has been issued with material to prepare for bidding on the contract.

Proposals have come in from Jamaica’s state-owned refinery, Petrojam, Royal Dutch Shell, British Petroleum, Clean Core and Fortress Energy. Clean Core was runner-up to Fortress Energy on the Bogue bids.

The plans for Old Harbour have grown more ambitious since the project was first mooted. Now ESET sees itself as the fulcrum for the development of a regional gas hub for the Caribbean that was first discussed in Jamaica during talks with US Energy Secretary Dr Ernest Moniz during President Barack Obama’s official visit in early April.

“Jamaica is trying to become the hub for gas distribution in the region. It is one of the things we are very interested in,” said Lawrence.

“In the request for proposals, we have requested that they provide a perspective on how Jamaica could serve the region. That is one of the things we will be assessing,” he said.

Discussions about such a hub flowed from a study done by Inter-American Development Bank on the regional demand for natural gas and the economics around consistent supply.

Bogue is being converted from automotive diesel oil to LNG. Lawrence said JPS had also looked at propane and ethane as fuel options, but finally decided to convert to LNG immediately.

“They have had meetings with General Electric and GE is on track to carry out conversion. The contract is to be signed early July,” said Lawrence.

The plant conversion will take 26 weeks, or just about six months, from the award of contract.

JPS confirmed the timeline of the first quarter of 2016 for the conversion to be completed.

Lawrence said Fortress will ship gas to the plant weekly from its Miami, Florida, facility to the port in Montego Bay.

For the pipeline to be built by Fortress from the port to the Bogue plant, the preliminary design, engineering, agreements with the Port Authority of Jamaica and authorisation from NEPA are being pursued, the ESET chairman said.

avia.collinder@gleanerjm.com

http://jamaica-gleaner.com/article/business/20150624/general-electric-retrofit-bogue-power-plant

Electricity Energy Saving Government Jobs JPS News

JPS Inks New Gas Deal With American Company, Fortress Energy

June 19, 2015 Webmaster

Jamaica Public Service Company Limited (JPS) has inked a deal with US-based New Fortress Energy to provide a long-term natural gas solution for its power plants, starting with Bogue.

However, the power supplier is not yet saying which gas it has selected as fuel and the price at which it will be supplied.

JPS itself has formerly floated the idea of propane initially and a future migration to natural gas.

The power utility has also not disclosed which entity will be responsible for retrofitting the plant at Bogue, which currently uses diesel fuel but has the infrastructure that allows it to transform to gas fuel.

As indicated to the Electricity Sector Enterprise Team last year, JPS is to convert the 115MW gas turbine plant at Bogue in Montego Bay from automotive diesel oil initially to propane by the fourth quarter of this year. The conversion, it projected, would result in an approximate 40 per cent fuel-price reduction.

The current plant consists of three individual units: two combustion turbine generating units with a total capacity of 80MW; and one 40MW steam-generating unit. The two combustion turbines operate on diesel fuel but are capable of converting to natural gas.

JPS said in a February update posted on its website that an independent engineer had been retained for the project and that construction was expected to begin by the second quarter of 2015 and that the plant should begin operating on gas fuel by the first quarter of 2016.

The company said this week that the gas-supply agreement with Fortress would pave the way for work to begin on the infrastructure needed for the delivery of gas to Bogue by early 2016.

The parties are firming up their agreement, which they expect to finalise by the end of this month.

Government Approval

Kelly Tomblin, JPS’ president and CEO, said that the company had received the final sign-off from the Government, through the Electricity Sector Enterprise Team, for the project.

“JPS understands the importance of gas to long-term sustainable energy prices and is proud to be able to finally bring gas to Jamaica,” she said in a company-issued statement.

JPS said New Fortress Energy was selected from a list of eight bidders who had responded to JPS’ request for proposals earlier this year.

Wesley Edens, founder and co-chairman of the board of Fortress Investment Group, said his company was quoted as saying that his company planned to “help make Jamaica an energy hub for the Caribbean and Latin America”.

New Fortress Energy is part of the Fortress Investment Group, a diversified global-asset firm with approximately US$70 billion of assets under management.

Investment vehicles managed by affiliates of Fortress own one of the largest crude oil terminals in the United States, as well as the first liquefaction facility in Florida, from which the gas will be supplied to Jamaica.

JPS has already submitted its proposal for Bogue to the Office of Utilities Regulation. The power utility previously telegraphed that the Bogue project may cost about US$80 million.

JPS senior vice-president for generation and project development John Kistle said in February that the converted installation was likely to include new pipelines and storage facilities constructed by fuel suppliers who would want to recover their costs. The new infrastructure is also likely to require new terminal facilities for off-take and supply of gas.

Request for additional comment on the new Fortress partnership were unanswered up to press time.

Electricity Energy Saving JPS News

Rural Electrification Programme renamed

June 19, 2015 Webmaster

KINGSTON, Jamaica (JIS) –The Government has changed the name and mandate of the Rural Electrification Programme (REP), to the National Energy Solution Company Limited (NESCL), with an expanded role to achieve energy efficiency.

Making the disclosure, Minister of Science, Technology, Energy and Mining Phillip Paulwell said the company, while bringing electricity to the 2.5 per cent of the island that is without the commodity, will also play a major role to reduce energy losses.

He noted that thousands of houses across the island are not properly wired, and working with the Jamaica Public Service Company (JPS), and the Jamaica Social Investment Fund (JSIF), the problem will be finally solved.

“The NESCL is going to take that on. We are going to be working with the JPS (to cover) over 100 communities indentified by JSIF, where we have to do regularisation,” the minister said, while addressing the opening of an energy forum today at the Jamaica Pegasus Hotel in New Kingston.

“My role is to ensure that when we go through communities, we do not see this phenomenon. It is dangerous, it causes fires, deaths, and we are going to regularise the situation, once and for all,” Paulwell emphasised.

The minister also pointed out that much of the services offered by the Government Electricity Inspectors (GEIs) will be privatised, so that persons can get timely certification to access regular electricity.

The workshop is being held over three days, and will hear from representatives from six countries on their experiences to reduce energy losses.

Partners in the workshop are the United States Agency for International Development (USAID), Office of Utilities Regulation, and the JPS.

The REP was incorporated in 1975, with the specific mandate to expand the reach of electricity supply to rural areas, where the provision of such services would not be economically viable for commercial providers of electricity.

It constructs electrical distribution pole line in electrified areas and provides house wiring assistance through a loan programme to householders.

Electricity JPS News

Light Bills To Increase For Thousands Of Consumers

June 19, 2015 Webmaster

Thousands of Jamaica Public Service Company (JPS) customers can expect to see an increase in their electricity bills this month as the general consumption tax (GCT) on residential use is now in effect.

The tax, which became effective on May 1, will begin to show on customers’ bills as this month’s bill will be based on energy consumption in May.

The standard 16.5 per cent tax will only affect residents who use more than 350 kilowatt-hours (kWh) for the month.

One kilowatt-hour equates to 1,000 watts being utilised per hour and everyday household appliances such as bulbs use approximately 100 watts per hour while air-conditioning units use 3,500 watts per hour (or 3.5kWh).

Gct Reinstatement

Finance Minister Dr Peter Phillips had indicated, during his contribution to the 2015-2016 Budget Debate, that GCT would be reinstated on residential electricity consumption, after being suspended in 2010, as part of the Government’s revenue measures.

In a PricewaterhouseCoopers’ report titled ‘Jamaica: 2015-16 Budget: Tightening the Tax Net – Spreading the Burden’, it was stated that the measure would promote greater energy conservation and assist in reducing the country’s oil importation bill.

The Jamaica Public Service said on Thursday that consumers would only be taxed for the kWh they use in excess of 350kWh, meaning if a customer is billed for 400kWh of energy consumption, only 50kWh would have GCT applied to it.

Customers will be able to see the tax as it will be a separate line item on the bill.

The JPS estimates that just over 30,000, or approximately six per cent, of its customers will be affected by the tax on electricity usage above the 350kWh level.

Electricity JPS News

NWC Says Energy Savings Passed On To Water Customers

March 8, 2015 Webmaster

The state-owned National Water Commission (NWC), Jamaica’s largest consumer of electricity, said that savings from its energy bill are being passed on to consumers.

Lower oil prices has resulted in cheaper electricity bills from Jamaica Public Service Company. NWC’s monthly bill has fallen to about $400 million at present.

“Yes, the NWC has been positively impacted by the reduction in oil prices. Our bills from JPS have gone down to just over $400 million per month, whereas before it was hovering above $500 million per month and in some instances it had exceeded $600 million,” Charles Buchanan, public relations manager at the NWC told Sunday Business.

Buchanan said that for most of calendar year 2014 the NWC, and by extension its customers, would not have benefited from the reduction in energy prices because for most of that time electricity rates were still very high. However, both the company and consumers started seeing the benefits since November 2014.

Buchanan explained that there is a mechanism built into the NWC’s tariff which is adjusted based on changes in the company’s three most significant costs: the cost of energy based on the electricity bills, the foreign exchange rate given that about 70 per cent of its operations involves purchases of items such as chlorine, fittings and meters; and the Consumer Price Index, which relates to other inputs.

“Those three things together are considered under the Price Adjustment Mechanism which customers see on their bills as PAM,” he said.

“Let’s assume that they are all going in the same direction, whenever they change it will cause customers’ bills to change in that same direction.”

Buchanan said each of the three elements are weighted by the Office of Utilities Regulation and that the size of their adjustments would determine the impact on PAM.

“So let’s say the energy price is going down and by itself would result in a reduction in the PAM, but the CPI and the exchange rate are going in the opposite direction, depending on how significant the movements are, whether the exchange rate changes are small or great or whether the energy cost reduction is small or great, as well as the relative weighting of those components it will determine whether PAM comes out on the net as a positive or negative movement,” he said.

Significant Movement

“But I can tell you that the movement in the energy prices has been significant enough to have overcome any other contrary movement in the CPI and or foreign exchange rate over recent months. As a result, for the last few months the price adjustment mechanism for the customers has been beneficial to the customers in the sense that it is represented on their bills as a deduction from their water charges,” he added.

NWC has some 1,000 locations across Jamaica that require electricity.

In 2011, its annual bill to JPS was $5.503 billion; $5.904 billion in 2012; $6.285 billion in 2013, and $6.464 billion in 2014.

“In all instances there was a continuous climb in the dollar value of the energy costs,” said Buchanan.

However, the NWC has put in place energy management initiatives which resulted in its kilowatt per hour usage hovering at around the same place or slightly declining.

For example, in 2011 the NWC’s kilowatt/hour usage of energy was 197.17 million, but it moved downward to 188 million in 2014. “This is despite the fact that we had put in a number of new water supply and waste water systems,” the NWC spokesman said.

Buchanan adds that there was a four per cent decrease in the NWC’s energy consumption in 2014 when measured against 2011. Consequently, the commission was expecting a four per cent reduction in its electricity bill, but instead there was a three per cent increase in the energy cost to the NWC over the period.

Asked about the percentage reduction to customers over the past three months, Buchanan said it was difficult to give a figure due to PAM being a combination of three elements.

“It’s a little complicated to give an exact figure … but definitely the bills have shown declines,” he said.

Jamaica Gleaner

JPS News

OUR directs JPS to refund customers J$973 m

February 17, 2015 Webmaster

KINGSTON, Jamaica – The Office of Utilities Regulation (OUR) says it has directed the Jamaica Public Service Company Limited (JPS) to refund to customers over J$973 million that it unilaterally imposed as foreign exchange adjustments on fuel supplied by Petrojam Limited from March to December 2013.

The directive, which is effective February 16, 2015, was issued following consultations with JPS. The sum taken from customers, totalling J$973,372,164.14, was in contravention of Exhibit 2, Schedule 3 of the Amended and Restated All-Island Electric Licence, 2011.

JPS has been directed to submit, within seven days from the effective date of the directive, details of how it proposes to effect the repayment, including the commencement date by which the refund will be made to customers, OUR explained in a release.

Customers are to be fully refunded within six months of the effective date of the directive, the organisation said.

OUR noted that the directive follows a decision taken by JPS to pass through to customers, foreign exchange adjustments on payments for fuel supplied by Petrojam Limited, from March to December 2013.

This was done without any approval by the OUR.

The OUR requested clarification from the JPS regarding the inclusion of a line item called “FX adj on Petrojam Fuel” in the fuel oil statements for the relevant period.

During the period, this impacted the fuel and IPP charge which appears as a line item on customers’ bills.

The OUR said that having received JPS’ explanation for making the adjustments, considered the matter and concluded that JPS had no authority under the existing regulatory framework to unilaterally impose the additional costs on customers.

The OUR said it will continue to be vigilant in safeguarding the interest of consumers, while ensuring an equitable environment for investors in our utility services.

JamaicaGleaner

Alternative Energy Government News Solar Energy

Electricity tribunal trashes wheeling charges

February 6, 2015 Webmaster

OUR still deciding whether to appeal or redesign programme

Avia Collinder, Business Reporter

Jamaica’s electricity tribunal has effectively sent utilities regulator, OUR, back to the drawing board to redesign the pricing structure plan for the wheeling of power through Jamaica Public Service Company’s network.

The Office of Utilities Regulation has said it may appeal the ruling.

JPS had contested the wheeling prices set by the OUR as inadequate and in breach of its licence, and Chairman of the Electricity Appeals Tribunal, Justice Paul Harrison, issued a ruling in November 2014 that sided with the power utility. Justice Harrison described the pricing structure as ‘irrational and flawed’.

OUR had intended to introduce electricity wheeling in 2013, but the programme was put on hold after JPS’ legal challenge.

The regulatory agency said this week that it was still reviewing the tribunal’s decision but expected to wrap up the assessment by the end of March.

Essentially, JPS had argued that wheeling prices should be set around the same time as the rate determination for electricity charges – the latter was decided last month – having noted that the 2013 wheeling rates were based on stale data.

JPS also argued that the approved wheeling charges were in breach of Condition 12 of its licence, neither were they guided by the cost of service study (COSS) conducted by the power utility.

“We are still assessing the effect and implications of the ruling,” Ansord Hewitt, the OUR’s director of regulation, policy, monitoring and enforcement, told the Financial Gleaner.

The review will determine the regulator’s next step.

“If, for example, it decides to appeal the decision then the status quo remains,” said Hewitt. “On the other hand, if it decides not to appeal the next step is to direct JPS to do a cost of service study stipulating the framework for it. We will have another round of consultations, then determine a system including charges and, thereafter, implement,” he said.

Though a number of local com-panies have expressed interest in wheeling electricity, no applications have been made so far to the OUR.

As defined in the text of the Tribunal’s decision: “Wheeling is a method by which a grid operator, for a price, allows another party to send electrical energy over the grid operator’s transmission and distribution system, from a location at which the party generates the energy, to a location where it will be consumed.”

The wheeling regime was introduced in Jamaica by the amendment of Condition 12 of JPS’s licence in 2011.

To qualify for a wheeling licence, lasting 10 years, the applicant must be a self-generator with consumption facilities of 25kVA.

The OUR in 2013 determined annual wheeling rates at an average of US$105,312 per MW for primary distribution and US$53,545 for secondary distribution on a non-locational basis.

The regulator also estimated rates for 14 actual JPS customers at different locations across Jamaica, which ranged between US$83,100 per MW and US$629,900 per MW.

JPS argued on appeal that the wheeling charges were not consistent with the existing tariffs and price controls, in that the charges would not be revenue neutral to the utility. It also objected to the OUR’s use of a Modern Equivalent Asset Valuation model for setting wheeling rates, instead of actual costs, and argued that the structure created by OUR would result in tariffs that discriminate by location.

The Electricity Appeals Tribunal, after hearing from expert witnesses on both sides, ruled “the OUR acted unlawfully in producing its own COSS [cost of service study], albeit with some 2009 data from JPS, in breach of Condition 12 and therefore, in that respect, its determination is flawed”.

Harrison ruled that the OUR’s decision not to consider JPS’ COSS data, which was available to it in June 2013, a month before its wheeling determination, was “irrational”.

He further noted that the OUR, being a statutory authority with powers and functions conferred by law and the power utility’s licence, could not “arrogate to itself powers that are not conferred on it”, and that it had no common law powers nor a legal basis or authority to conduct its own COSS.

Additionally, the wheeling charges proposed by the regulator were “not consistent with tariffs and the price controls as approved by the OUR,” said Justice Harrison.

“… It was irrational for the OUR to issue the Determination Notice for the reason that it did. The said notice is accordingly flawed and irrational,” he said.

avia.collinder@gleanerjm.com

Jamaica Gleaner

Electricity Government News

Full Speed Ahead – JPS Shrugs Off OUR Shocker, Given Green Light To Build Power Plant

February 6, 2015 Webmaster

Despite recent hurdles, the Kelly Tomblin-led Jamaica Public Service (JPS) is indicating that it is determined to increase its contribution to the burdened national grid and help stave off threats of power outages in the years ahead.

The light and power company has shrugged off the shock of the Office of Utilities Regulation’s (OUR) disapproval of its request for a rate hike and is moving ahead with plans to erect a 190-megawatt (MW) power plant.

Shedding light on the work of the Electricity Sector Enterprise Team (ESET), chairman Dr Vincent Lawrence told journalists yesterday that his group has its eyes firmly set on the addition of 380MW to the national grid by 2017.

Addressing a press conference at the Office of the Prime Minister, Lawrence revealed that Cabinet on Monday approved the construction of the 190MW power plant along with two others to increase generating capacity to the island by 380MW.

“The JPS has exercised its right of first refusal to replace obsolete generating capacity by the construction and installation of a 190MW gas-fired, co-generation power plant at Old Harbour,” said Lawrence.

He said the JPS had agreed to a power tariff of not more than US12.89 cents to facilitate the construction.

“ESET has recommended and Cabinet has given approval for a letter to the JPS authorising the development of 190MW of generating capacity and the construction of a terminal in Old Harbour,” said Lawrence.

He disclosed that Cabinet also approved the construction of a 140MW gas-fired, co-generation plant by Alpart Venture and another 50MW for Jamalco Venture.

Presenting an update to journalists during a press conference after the submissions were made to Cabinet yesterday, Lawrence said the JPS would also be forging ahead with the upgrading of its Bogue plant, which generates 50MW, which is not factored into the added generating capacity.

For Bogue, Lawrence said the proposal is to convert the feed stock to gas, making the retrofitted power plant a 115MW gas turbine co-generation power plant.

US$15 MILLION REQUIREMENT

Lawrence pointed out that the JPS requires capital expenditure of US$15 million for the conversion of the Bogue power plant to be completed by the end of 2015.

He disclosed that ESET had been forced to delay its due diligence on the Jamalco project because the new majority partner, the Noble Group, is finalising its own analysis of the project in order to decide whether it will be making amendments.

Lawrence said Cabinet also agreed with ESET to subject the existing co-generation proposal on the 50MW of coal-fired generation at Jamalco to further analysis before it provides more definite recommendations on the project.

The new principals of Jamalco have promised that their position will be forthcoming by the end of the month.

Lawrence said ESET has continued with a number of stakeholder consultation meetings and discussions with key players in the electricity market.

These comprise the JPS; the OUR; the bauxite alumina sector (Jamalco and Alpart); the Ministry of Science, Technology, Energy, and Mining; the Inter-American Development Bank; and Independent Power Producers (IPPS).

Lawrence said ESET continued to receive assistance from the World Bank, which has provided expertise in analysing technical and financial submissions from JPS, Alpart, and Jamalco, which are planning to build, own, and operate the proposed power plants.

He said ESET had also conducted assessments of the gas market, including trends, costs, shipping size, among other variables, and has conducted comparative studies of electricity policy and framework across the region.

Among other recommendations approved by Cabinet are the review of the Amended and Restated All-Island Electricity Licence (2014), with the goal of facilitating viability, reliability, and investment in the electricity sector.

gary.spaulding@gleanerjm.com

Jamaica Gleaner

Electricity JPS News

Price Cut Pipe Dream

January 24, 2015 Webmaster

Jamaicans to bear US$65m Bogue conversion cost, says JPS

Light and power provider, the Jamaica Public Service Company, yesterday warned that customers could be forced to shoulder more than five times the US$15-million price tag they are already set to underwrite for the conversion upgrade of the Bogue plant in St James.

Consumers will fork out a total of US$15m, through a special fund reflected in their bills, over the next year to pay for the changeover of the plant from diesel oil to gas, this after the Office of Utilities Regulation (OUR) approved a cess for the capital works. However, the total cost of the conversion is expected to be about US$80 million.

“The pipelines, as well as storage facilities, represent an investment by the fuel suppliers, who will be recovering the money they have spent for the infrastructure in the cost of fuel,” John Kistle, the senior vice-president for generation and project development at the JPS, told The Gleaneryesterday.

According to Kistle, it would be erroneous to think consumers would automatically benefit from the cheaper fuel soon, as infrastructure costs would be a significant add-on.

“Some of the things we have heard of late is [that there will be a] very short payback and that is based just on the difference in fuel sources. But it is not a short payback given the significant capital required for these terminals and pipelines and the conversion. This is not a US$15-million conversion; it is more expensive when we consider all of the other infrastructure that needs to be put into the island,” Kistle said.

Kistle said further that there are three critical things need to happen in order to convert Bogue to gas. He said first there needs to be a mechanism to bring gas into a terminal and get it on to land. That, he said, has to be a ship-receiving terminal or some method of transporting gas from the ships into a facility that can discharge the gas in either liquid or gas form to the site. The other steps involve transporting the gas from the terminal at the port where it is likely to be collected, and converting the units to receive the gas.

Meanwhile, the JPS executive said the conversion plan is causing major environmental concerns, with the location for the offloading of gas for the plant being a crucial issue.

The JPS is proposing to offload the gas at the Freeport harbour in the resort town of Montego Bay.

“The location is certainly an issue, and we are quite concerned about the environmental constraints, as well as the safety concerns, when you have to bring gas into an operating terminal where there is a cruise ship operation,” Kistle said.

As far as getting the gas into Bogue is concerned, Kistle said the JPS is currently working with the National Environment and Planning Agency (NEPA) and the Port Authority of Jamaica to find a viable solution.

“The Port Authority of Jamaica has very well-documented rules, so we are looking to work with them to bring gas into that harbour, if we are to use that harbour. We are not sure if we have to go somewhere else yet. The Port Authority of Jamaica has been working with JPS, and there are very clear guidelines on what we need to do,” Kistle said.

He pointed out that the guidelines relate to how long a fuel vessel can sit in harbour to discharge “such that we can offload sufficient fuel to run the facility”.

The senior JPS representative said the determination on the way forward will be based on the fuel storage capacity, either at the harbour or at the site, as well as how often a vessel will be required to fill the storage tank.

“There are a couple of options, and we are working with other authorities to understand which of those is an acceptable option. There are a number of constraints that would affect the type of option that we employ,” he said.

“Primarily, we are working with NEPA to make sure that we understand what their issues are,” Kistle added.

The push to convert Bogue to use a gas-based fuel is part of the Government’s plan to reduce the dependence on oil and lower electricity bills. The JPS said the conversion to gas will also save the country millions of dollars each year in foreign exchange currently spent on importing oil.

JPS said the Bogue conversion project will begin as soon as the necessary due diligence is completed and JPS gets the final approval from the OUR.

Daraine Luton, Senior Staff Reporter

Jamaica Gleaner

Alternative Energy News

Solution To Jamaica’s Energy Problem

July 3, 2014 Webmaster

Our country is fortunate to be located in the tropics with abundant sunshine. However, we failed to utilise the natural free energy available to us.

Now that our country has passed four IMF tests and the macroeconomy is in a better health to attract international lending agencies, it is prudent that the Jamaican Government use all its available resources to negotiate a loan to provide solar energy for residential housing. The programme would be developed in phases. The aim is to get at least 25 per cent residential houses connected within year one.

The Jamaican Government should borrow US$100 million and establish a revolving fund. This programme should be managed by the National Housing Trust (NHT).

Arguably, the NHT is one of the best managed government organisations. This organisation has the requisite resources, infrastructures and locations to execute the programme throughout the country. Using this organisation would reduce the need for a new organisation that would incur additional expenses.

The NHT would be responsible for the following;

Implementation and management of the programme

Managing the funds

Importation of the solar equipment

Installation of the equipment

Collection of monthly payments

Charging a five per cent handling fee

Determining the energy requirement of each house by using the applicant’s last JPS light bill.

Establishing four standard energy solutions based on monthly consumption; 100KW, 200KW, 300KW, and 400KW.

Establishing four standard monthly payment plans of $5,000, $10,000, $15,000 and $20,0000.

Establishing a payment plan for over five years.

Establishing a deposit not exceeding $100,000.

Applicants would be required to do the following;

Make application to the NHT

Make a down payment not exceeding J$100,000.

Make a monthly payment to the NHT.

This initiative would reduce the country’s energy bill, reduce our dependency on foreign oil, and reduce environmental damage. It would also reduce the amount each applicant spends on his monthly energy bill.

JOHN MCINTOSH

Hotel management consultant

jpmcintosh@hotmail.com

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