JAMAICA should pursue the investment opportunities presented by renewable energy rather than focus on fossil fuels like LNG, says a global think tank.

“There is great potential for local economies in investing in renewable energy,” said Mark Konold, head of the Washington-based Worldwatch Institute, which is identifying opportunities for low-carbon, energy developments in the Caribbean.

Caribbean Project Manager for the Worldwatch Institute Mark Konold says Jamaica should invest in its untapped energy potential.

Worldwide figures for investment in renewables has shot up steadilly, said the organisation. Countries around the globe put over US$200 billion ($17.4 trillion) into non-carbon-based energy projects last year, as compared to the US$40 billion invested in oil, coal and gas.

Developing nations have led the pack in financing these projects, underscoring the growing recognition of how the cost of traditional energy sources eat into a country’s GDP, said Konold.

“Acting rapidly and ambitiously will not only serve social needs, it is also an economically superior approach to ‘we’ll wait and see’,” he said. Being more aggressive up front, taking more action immediately, “gets more results than being cautious”.

The government’s target for increasing the use of renewable energy to 30 per cent by 2030 is a ‘bold’ move, said Konold, as long-term vision is necessary to foster growth in the industry.

“If I’m an investor, I know how long this project will be and that lets me know how well it will do for me economically,” he said. “That kind of certainty is important.”

Konold is head of the Worldwatch Institute’s assessment of the energy sectors in Jamaica, Haiti and the Dominican Republic, which is aimed at helping the countries reduce dependence on fossil fuel imports. His group will present a low-carbon energy roadmap for Jamaica to the ministry of energy, which will focus on the underuse of natural resources such as solar and wind power.

The market alone cannot lead the process, Konold said, underlining how important it is that the Government be streamlined.

“Government has to play a very strong role,” he said. “For example, Germany doesn’t have as many natural resources as Jamaica, but renewable energy has succeeded there because of strong leadership in terms of policies.”

The group will be back in Jamaica before the end of the year to present their findings to the ministry. The project

PRIME Minister Portia Simpson Miller has reiterated her administration’s commitment to the integrated use of renewable energy to develop the economy and eradicate poverty.

The prime minister gave the assurance at last Wednesday’s opening of the joint University of Technology (UTech)/German Embassy Sustainable Energy Conference and Exposition at the institution’s Main campus in St Andrew

“The choices we have to make are very clear. The current level of energy consumption is unsustainable,” she said, noting that the introduction of LNG as a part of a short to medium-term plan to diversify the energy supply mix is proceeding apace.

Simpson Miller told the gathering of stakeholders in the energy industry, ministry officials and members of the diplomatic corp at UTech’s Alfred Sangster auditorium that a small developing country such as Jamaica cannot expand its productive capacity, attract business and ensure the well-being of its people, with the unprecedented increases in the cost of energy annually.

“Next to debt-servicing, the cost of energy represents our greatest outflow of foreign exchange, and the outlook is for this to worsen,” she said.

She said the Government has set itself a very ambitious goal to see renewable energy sources making up 30 per cent of the national energy mix by the year 2030.

“We have embarked on a clear path for introducing and encouraging the development of the renewable energy sector,” Simpson Miller noted.

She said that she will also be closely monitoring energy consumption in the Office of the Prime Minister (OPM) under the Public Sector Energy Efficiency and Conservation Programme, which is in partnership with the Inter-American Development Bank, and is currently underway.

Under the programme, government ministries and agencies will have set targets by which they will be required to reduce their consumption. The OPM was one of the first government buildings to be retrofitted.

Germany’s Ambassador

 

Workmen atop a Jamaica Public Service Company pole. Jamaica must revamp its energy framework if the country is to compete gainfully with rival nations which benefit from cheaper fuel sources.- File

 

Energy is set to wreck the weak CARICOM. Energy is a ball and chain hobbling the Jamaican economy. Energy, if it is true that human action is the principal cause of global warming and climate change from global warming, is set to wreak havoc upon the entire planet.

Omar Azan, a former president of the Jamaica Manufacturers’ Association, in a blistering speech last week, said government-subsidised electricity cost in Trinidad & Tobago was giving an unfair advantage to that country’s manufacturers in CARICOM trade. At US$0.05 per kilowatt-hour, the cost of electricity in T&T is some six times lower than the cost of electricity in Jamaica. Azan has threatened to lock down the country over the issue. Others have been openly advocating that Jamaica should withdraw from CARICOM.

Meanwhile, a powerful coalition of private-sector companies has been shouting, through expensive advertisements, that the cost of electricity has increased by 135 per cent since 2001 and advising us to “pull the plug on high light bills”. Exactly how to pull the plug has been left unspecified, like the Azan lockdown of the country.

Citizens United to Reduce Electricity (CURE) has gone the unprecedented route of taking action in the Supreme Court to test the legality of the Jamaica Public Service Company (JPS) all-island monopoly. CURE is asking the court to declare null and void the licence granted in 2001 by the energy minister and renewed in 2007.

The licence, according to the claimants, is in breach of Section 3 of the Electric Lighting Act of 1890. CURE attorney Hugh Wildman is arguing that under the act, and in particular Section 3, the island is broken up into areas over which the responsible minister may grant a licence to either the local authority or a private company to generate and transmit electricity.

“What is not permissible under Section 3, or any other section of the act, is an exclusive licence over the entire island. A licensee or undertaker is confined to the particular area over which a licence is granted,” Wildman submits to the court.

“The language of the legislation,” he points out, “throughout speaks in the plural, that is, undertakers and not undertaker. The legislation clearly expressed in no uncertain terms that there must be several undertakers generating and transmitting electricity throughout Jamaica. The concept of exclusivity is unknown to the legislation.”

And with respect to the Office of Utilities Regulation, Wildman said Section 4(3)(i) of the Office of Utilities Regulations Act

Paulwell

 

ELEVEN PERSONS yesterday collected the first batch of net billing licences offered by the Government that will allow them to sell the excess electricity they generate to the national grid.

Energy Minister Phillip Paulwell, who handed out the licences, said having installed a solar-energy system at his home, he intended to apply to his ministry for a licence.

“My PV (photovoltaic) system is fully up and running and I am now anticipating my JPS (Jamaica Public Service Company) bill later this month,” said Paulwell, who was speaking at a meeting of the Jamaica Energy Council held at Jamaica House yesterday.

Under the net billing system, licensees are expected to see huge reductions in their electricity bills after balancing the amount owed for energy used and what is earned from the excess energy sold to the grid.

“The bill from JPS is netted against the bill from the production and at the end of the month, the net bill to the customer,” explained Hopeton Heron, deputy director general at the Office of Utilities Regulation (OUR).

“At the end of three months, you will see whether you owe JPS or JPS owes you and a cheque is cut somewhere to settle the matter,” he added.

The system will be governed by a five-year standard offer contract that each licensee is required to sign.

Addressing concerns about the impact of adding new facilities to the grid, Heron said for the next two months, the OUR will be conducting a pilot project that will limit the new connections to two per cent of the existing capacity.

Paulwell said he hoped this would encourage more Jamaicans to come forward and apply for licences as “the Government looks to enlarge its ambition in relation to renewable energy“.

http://jamaica-gleaner.com/gleaner/20120519/lead/lead2.html

THE Office of Utilities Regulations (OUR) has so far received 10 applications for licences from producers of electricity from renewable sources to engage in net billing thus paving the way for them to be paid for selling power to the national grid, energy minister Phillip Paulwell said last week.

Paulwell said the entities would be visited by the Jamaica Public Service Company (JPS) this week for the installation of new meters to measure the energy going to the grid, after which the OUR would recommend to him those which are to get licences in about two weeks.

PAULWELL

Let’s get serious about reducing Jamaica’s dependency on oil. Photovoltaics (the use of solar panels to create electricity) is one way to go at this time but there are simple things we must and can do before we get there. Solar water heaters, LED bulbs and inverter refrigerators would have a positive effect on the national economy.

For instance, if 50,000 homes used 2000 watt electric heaters (about a 20 gallon system) for 90 minutes per day for 5 years, the electricity consumed in five years would be about 270-million kilowatts (approx. J$10 billion in electricity costs) and this would require about 370,000 barrels of oil (about J$3.3billion) to produce – or about one and one-half barrels of oil per household per year. Oil costs about US$100 per barrel these days and a 40 gallon solar water heater costs about J$95,000 which paints a clear picture.

Solar panels, a possible way for Jamaica to reduce its energy bill.

 

The electric heater used in this example would cost you about J$3,600 each month to run and so, depending on the cost of money, repayment would be about 3 to 4 years.

Whenever a country reduces its “carbon footprint” i.e. reduces the amount of carbon dioxide it generates by burning oil the resultant savings may be a saleable commodity. If that country’s emissions fall below a set quota the unused amount can be sold as carbon credits which can be purchased, privately or on the open market, by entities whose operation generate in excess of their own allotment.

Solar water heaters

All of this is by international convention. My scenario of 50,000 homes replacing electric water heaters with solar water heaters would, over five years reduce the carbon dioxide emissions by about 310,000 tons and this could potentially be sold for about J$540 million.

Imagine if the Government came up with a J$4 billion programme to supply and install 50,000 solar water heaters to replace electric heaters. The reduced oil bill plus carbon credit sales would accrue to about J$3.8 billion to the nation over five years. That is not the end of it. There would be the benefit of job creation (for installation) and taxation of income from the workers involved. It would seem that the short pay-back time for this programme is deserving of consideration.

The Government is aware of the advantages in promoting the use of solar water heaters and the NHT has a very commendable programme of lending up to J$250,000 for 5 years at 3 per cent provided there is a title for the property and the borrower is a current contributor. For the solar water used in this scenario the monthly payment would be less than the savings on the electricity bill! So there is every reason to take advantage of this facility for personal and national reasons. Due to the national advantage, however, the NHT should perhaps consider lending to others and not only current contributors.

LED bulbs

|LED bulbs are currently the most efficient bulbs on the market today. A 5-watt LED bulb is equivalent to a 16W fluorescent bulb (CFL) or a 70W incandescent light. A household using ten 5W LEDs for an average of five hours per day will incur a monthly “light” bill of about J$300 per month for these bulbs. (Fluorescent bulbs to provide the same lighting would cost about J$900 per month.) If this were applied to 50,000 households over five years the LEDs compared with CFLs would save J$600 milllion of oil imports and allow some J$100 million in carbon credit. The five hundred thousand 5W bulbs would cost about J$550 million and each bulb should last for over ten years. This could likely be a feasible project for Government funding. Yes, there was a light bulb scandal before but this does not mean that we must not try again – we must learn from the past. LED bulbs are too cost-efficient to ignore.

One or two 100-watt solar panels can supply all the electricity for LED lighting for a middle class home and further increase the savings in oil and income from carbon credits. Perhaps the local electrical code should consider mandating that lights to be on a sub-panel for easy of separation of lights from the mains supply so that a Solar panel can be easily be used for lighting with mains power as back-up.

If your fridge is about ten years old chances are that you are using twice as much energy as a modern fridge. The most modern energy-efficient fridge – the inverter fridge – uses about 40 per cent of the power of other modern refrigerators. Again, continuing my scenario let’s look at 50,000 inverter fridges. The oil plus carbon credits saved over five years would be as much as J$700 million compared to other modern fridges. Remember that this refers to modern refrigerators and that the savings could easily be twice as much depending on the age and type or refrigerator. So when it is time to replace a fridge this is what you should take into account. An inverter fridge is most cost effective if you supply your own electricity because you can use less panels in your photovoltaic system.

Solar panels

Consider the situation if we go all the way and put 50,000 houses fully off-grid – i.e. supplying their own electricity by solar panels. The cost for the systems would be approximately J$28 billion. Solar panels are now quite cost effective, but batteries are not as economical. That hurdle can be overcome by developing a local industry. Locals are getting into the Lead/Acid battery industry and are targeting the deep cycle battery market. Over a 5 year horizon these systems could save some J$14 billion in oil and carbon credits. This suggests a 10 year payback (oil at US$100/barrel) but how many expect that price to hold for ten years? World oil has peaked – i.e. most readily accessible oil is used up and current supplies are difficult to mine.

Where does all this take us?

Airlift has impacted the shipping business; post offices have scaled down due to the use of email; camera films sales have crashed due to digital cameras; cellular telephony has all but knocked out landline telephony; cable television has reduced movie box office sales; answering machines and computers and automation have put people out of work; and the list goes on and on, and, somewhere, in the not too distant future, the giant power companies will give ground to individual power production. Up until recently (if not still so) Bermuda, an island with near zero unemployment and good financial statistics did not have piped water and instead, homes store roof run off under the building. I now see electricity heading in the general direction of using the top of the building. Yes, Jamaica was one of the first countries in the world to have mains electricity but let us not be the last to recognize the inevitable changes.

So if we spend so much less on oil, even if our earnings remain stagnant, do we get growth? Minister of Energy, Philip Paulwell is well aware of all that is going on in the world of energy and we expect him to guide us through the process of change as he did for telecommunications.

Next time let’s look closer at air conditioning and motor cars and start with the fact that a small conventional automobile produces as much carbon as a small family!

Robert Evans is a Civil Engineer.

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JAMAICANS no longer have a good reason to complain about high electricity bills, says Roger Chang, president of the Jamaica Solar Energy Association. A cheaper alternative is available.

“There is no valid reason for complaining of high electricity cost. Because there is an option and that option is solar panel systems. It will produce electricity at a ‘levelised’ cost of electricity of just around US10 cents per Kilowatt hour (kWh),” Chang told the Rotary Club of Spanish Town at the Police Officers Club in St Andrew.

“And when you factor in the other costs, the other tariffs, it will work out somewhere between another seven to nine cent. So you are looking at maybe US19 cents per kWh which is still less than half of JPS,” he said.

Insisting that renewable energy is the way to go, Chang argued that when one looks at the cost of electricity over the lifespan of 25 years it works out to about US10 cent per kWh. Consumers are now paying JPS over US45 cents per kWh. “Four times as much.”

However, Chang, who has been involved with solar panels since the 1980s, admitted that there is a place for the Jamaica Public Service.

“If we are talking in the context of solar panels as a renewable energy source, then you will need JPS to make the renewable energy source cost effective and viable. What we effectively have been doing is using the JPS as a battery, as a backup battery. So JPS is cheaper than you can buy and maintain our own batteries,” Chang said.

“You don’t use solar panel as a backup system. It is not cost effective that way,” he cautioned, adding, “It doesn’t make sense that you buy solar panels and batteries and invest hundreds of thousands on a backup system that you don’t use.

JPS rates have not gone down significantly for a very long time, partly because the OUR (Office of Utilities Regulations) has mandated that they should concentrate on making the grid more stable, with fewer power cuts.

“We don’t get power cut as we used to before,” Chang said. “So, a solar panel system with batteries as a backup is not worth it anymore.”

Under a complicated formula, JPS will soon start paying small power genera-tors between US20 cents and US26 cents for electricity they feed into the grid.

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