INVESTORS wanting to build out renewable energy capacity in the latest round of investments in Jamaica will have to do so by early 2015.

Up to 115 megawatts (MW) are up for grabs.

Those who are interested to make bids will have to declare that to the Office of Utilities Regulations (OUR) by December 21.

But the request for proposal documents has set tariff caps, which could make investments in certain types of renewables lucrative, but could also mean higher electricity prices to consumers.

What’s more, even with the seemingly fast pace at which the regulator is pushing for renewables to come online

Edwards-Hamilton
Edwards-Hamilton

NationGrowth Micro-Finance Limited is offering Jamaicans special financing arrangements for the purchase of alternative energy systems and equipment. This will dramatically reduce the cost of electricity bills for consumers within the medium term, with monthly loan repayments being lessened relative to client’s average current electricity bill. The loan period extends for a maximum of five years and effectively generates free electricity for many years with the installation of a full system.

According to chief executive officer of NationGrowth, Kim Edwards-Hamilton, “Energy conservation is a critical component in assisting every householder and business in realising a saving in the current and future cost of electricity. We have packaged a renewable energy loan offer for clients that will increase the use of alternative energy sources and promote energy conservation.”

She said further that, “loans can be accessed to accommodate energy conservation projects, for example conversion to LED fixtures and energy-efficient appliances and the purchase of solar water heaters, solar power systems (photovoltaics), biodigesters and wind turbines.”

Loans are offered at a maximum of J$2 million, subject to clients meeting the necessary requirements. Interest rates are at eight per cent per annum and the borrowing period goes up to five years, including a three-month moratorium on the principal.

benefit of solar system

Following the passage of Hurricane Sandy, IREE Solar, a renewable energy provider, through its managing director, Alexander Hill, pointed out that, “having a solar power system during and after a storm is a huge benefit when the public electricity grid is down”. He stated that, “IREE Solar offers both off-grid and hybrid solar power solutions that allow the owner to generate their own power from the sun during the days and use that power immediately or during the night.”

NationGrowth commenced operations in December 2007. The company was founded by former banker Aubyn Hill. The company aims to be the leading micro-finance company over the long term by extending effectual financial and related services to micro-entrepreneurs, individuals and businesses in the small and medium enterprise sector, by providing fast turnaround decisions on workingcapital assistance and responsive customer service at a profit.

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Minister of Science, Technology, Energy and Mining (STEM), Hon. Phillip Paulwell

Minister of Science, Technology, Energy and Mining (STEM), Hon. Phillip Paulwell, is urging small and medium sized enterprises to take advantage of the energy management loan facility being offered by the Development Bank of Jamaica (DBJ).

The DBJ/PetroCaribe (SMEs) Energy Fund allows SMEs to access loans of up to $30 million at a rate of 7.5 per cent to retrofit their operations to accommodate energy efficiency, energy conservation and alternative energy sources.

Under the programme, business operators across all sectors of the economy are encouraged to refurbish their facilities with renewable energy solutions, such assolar water heaters and solar panels, in an effort to effectively manage and conserve energy in their day-to-day operations.

However, speaking at the DBJ

JAMAICA Public Service (JPS) and the University of Technology (UTech) have partnered to establish a solar renewable energy facility.

Recognising the need for more diversification in electricity generation, both institutions signed a memorandum of understanding on Monday for the solar energy project

Jamaica Public Service Company and the University of Technology signed a memorandum of understanding to set up a solar renewable energy facility. Valentine Fagan (left), vice-president expansion, JPS; Kelly Tomblin, president and chief executive officer, JPS; Errol Morrison, president, UTech and Ruth Potopsingh, UTech

The United Nations Food and Agriculture Organization (FAO) is to assist Jamaican pig farmers in generating bio-energy from their operations so as to boost their income and benefit from the renewable energy sector.

FAO Sub-Regional Livestock Development Officer for the Caribbean, Dr. Cedric Lazarus, said German bio-energy expert Professor Jens Born is due here early next year for talks with the various stakeholders on the initiative.

Lazarus said the project would result in reducing pig farmers operational overheads, while generating additional income through sale of energy to the national power grid, among other possible benefits.

Professor Born has undertaken a similar assignment in Barbados conducting a review of farm waste management applications and offering practical recommendations for the conversion of pig waste to bio-energy.

“He visited approximately 20 pig farmers to assess waste management practices on their farms and options for use of pig manure to produce not only bio-gas, but fertilizer and electricity,” Lazarus said.

“He is of the opinion that with the rising price of livestock feed and energy, Caribbean pig farmers should investigate improving on-farm efficiencies and finding additional sources of income from their farm enterprises. One such additional source of income is (the conversion of) pig waste (to bio-energy),” the FAO officer said.

Meanwhile, the FAO is to assist Jamaica implement an aquaculture development plan this year, according to Agriculture and Fisheries Minister Roger Clarke.

Clarke, who was addressing an African, Caribbean and Pacific (ACP) Fish II Programme validation workshop, organised by the Ministry and the Belize-based ACP Regional Co-ordinating Unit, earlier this week, said J$22 million would be allocated from the Fisheries Management Development Fund (FMDF), to carry out the exercise.

He said the aquaculture development plan is aimed at contributing to Jamaicas goals of ensuring food security, employment creation, import substitution, and foreign exchange savings.

CMC

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JAMAICANS are being encouraged to pay keen attention to energy efficiency when purchasing home appliances and other devices that utilise electricity.

The appeal was made yesterday by officials of the Development Bank of Jamaica (DBJ), which is spearheading a national project that seeks to promote the benefits of energy efficiency and conservation. The project also seeks to encourage Jamaicans to make greater use of renewable energy such as solar, particularly in small and medium enterprises.

In addition to funding from the DBJ, the US$807-million DBJ GreenBiz Energy Efficiency Project receives assistance from the Inter-American Development Bank.

According to DBJ officials, who were guests at the Jamaica Observer weekly Monday Exchange, a number of Jamaican consumers can be described as being penny wise and pound foolish when purchasing appliances such as television sets, air-conditioning units, light bulbs, and refrigerators.

Christopher Brown, energy project co-ordinator at the DBJ, cautioned Jamaicans to pay attention to what he cited as the life cycle cost of a product versus the up-front cost. “Although you spend X amount for a TV now, the cost of electricity for the TV should also be factored in. I know that in Jamaica we are driven by purchasing power, and so one TV might cost one and a half times another, and because of that high capital cost people don’t invest in it. However, at the end of the day, the person who bought the cheaper TV would have paid a lot more, over time,” Brown explained.

His point was endorsed by president of the Jamaica Society of Energy Engineers, Owen Gunning, who pointed to a major difference between the amount of energy consumed by an old refrigerator, as opposed to a newer one. “An old fridge for example would give you about 600 watts, a newer fridge would probably take you down to 250 watts,” said Gunning as he encouraged consumers to look for the energy star on appliances.

He added that the same principle applies to air-conditioning units, some of which continue to be dumped on Jamaica, despite their high levels of inefficiency. “You have what is referred to as an Energy Efficiency Rating and you have people dumping on us AC units that have energy efficiency ratio of 7.5, but you can get energy efficiency ratio of up to 18,” said Gunning, a University of Technology lecturer who explained that the higher the ratio, the less it will cost to operate the unit.

He also chided persons who continue to use electric water heaters and argued that they would save significantly on their electricity bills if they were to invest in solar water heaters.

Gunning also pointed to significant differences in the amount of energy consumed by older type television sets as opposed to LCD and LED televisions.

Meanwhile, the DBJ energy project coordinator explained that a marketing campaign has been launched to support the project. The campaign will appeal to all Jamaicans, but will target operators of small and medium enterprises and will also target school administrators, many of whom have been grappling with massive electricity bills.

Brown indicated that as part of efforts to promote the energy efficiency project a fair will be held on October 12 at Emancipation Park in St Andrew.

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JAMAICANS are being encouraged to pay keen attention to energy efficiency when purchasing home appliances and other devices that utilise electricity.

The appeal was made yesterday by officials of the Development Bank of Jamaica (DBJ), which is spearheading a national project that seeks to promote the benefits of energy efficiency and conservation. The project also seeks to encourage Jamaicans to make greater use of renewable energy such as solar, particularly in small and medium enterprises.

In addition to funding from the DBJ, the US$807-million DBJ GreenBiz Energy Efficiency Project receives assistance from the Inter-American Development Bank.

According to DBJ officials, who were guests at the Jamaica Observer weekly Monday Exchange, a number of Jamaican consumers can be described as being penny wise and pound foolish when purchasing appliances such as television sets, air-conditioning units, light bulbs, and refrigerators.

Christopher Brown, energy project co-ordinator at the DBJ, cautioned Jamaicans to pay attention to what he cited as the life cycle cost of a product versus the up-front cost. “Although you spend X amount for a TV now, the cost of electricity for the TV should also be factored in. I know that in Jamaica we are driven by purchasing power, and so one TV might cost one and a half times another, and because of that high capital cost people don’t invest in it. However, at the end of the day, the person who bought the cheaper TV would have paid a lot more, over time,” Brown explained.

His point was endorsed by president of the Jamaica Society of Energy Engineers, Owen Gunning, who pointed to a major difference between the amount of energy consumed by an old refrigerator, as opposed to a newer one. “An old fridge for example would give you about 600 watts, a newer fridge would probably take you down to 250 watts,” said Gunning as he encouraged consumers to look for the energy star on appliances.

He added that the same principle applies to air-conditioning units, some of which continue to be dumped on Jamaica, despite their high levels of inefficiency. “You have what is referred to as an Energy Efficiency Rating and you have people dumping on us AC units that have energy efficiency ratio of 7.5, but you can get energy efficiency ratio of up to 18,” said Gunning, a University of Technology lecturer who explained that the higher the ratio, the less it will cost to operate the unit.

He also chided persons who continue to use electric water heaters and argued that they would save significantly on their electricity bills if they were to invest in solar water heaters.

Gunning also pointed to significant differences in the amount of energy consumed by older type television sets as opposed to LCD and LED televisions.

Meanwhile, the DBJ energy project coordinator explained that a marketing campaign has been launched to support the project. The campaign will appeal to all Jamaicans, but will target operators of small and medium enterprises and will also target school administrators, many of whom have been grappling with massive electricity bills.

Brown indicated that as part of efforts to promote the energy efficiency project a fair will be held on October 12 at Emancipation Park in St Andrew.

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EXIM Bank Jamaica has again cut lending rates on its renewable energy loans for investment in energy-efficient equipment.

The new rate on offer to small and medium enterprises in the productive sector is 8.5 per cent for Jamaican dollar loans, down from 9.75 per cent last September. The USD rate 5.75 per cent.

“We know that energy costs are high and this is adversely affecting the growth of our small and medium enterprises. Not only in them realising profit but in their ability to compete effectively in the international markets,” said Valerie Crawford, manager of trade financing and risk management at EXIM Bank in a bank-issued statement.

The energy loans are available to commercial and industrial users, energy service companies and manufacturers of energy efficiency equipment and devices.

business@gleanerjm.com

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