Jamaica is to reduce greenhouse gas emissions by the equivalent of 1.1 million metric tons of carbon dioxide per year by 2030 as part of its global commitment to take climate change mitigation action.

To bring this about, the island – as reflected in its nine-page Intended Nationally Determined Contributions (INDCs) document to the United Nations Framework Convention on Climate Change – has undertaken to implement energy policies that ensure that the island uses energy wisely and aggressively to pursue opportunities for conservation and efficiency has a modernised and expanded energy infrastructure that enhances energy-generation capacity and ensures that energy supplies are safely, reliably, and affordably transported to homes, communities, and the productive sectors on a sustainable basis, and achieves its energy resource potential through the development of renewable energy sources by increasing their share in its primary energy mix of 20 per cent by 2030.

Such policies are also to ensure that government agencies and ministries are models and leaders in energy conservation and environmental stewardship and that the island has a well-defined and established governance, institutional, legal, and regulatory framework.

Private Industry Support

Fully implemented energy polices need, too, to ensure that private industry embraces “efficiency and ecological stewardship to advance international competitiveness and to move towards a green economy”, the document said.

Realising Nationally Determined Contributions is essential if the target of the climate deal, brokered in Paris in December, is to be reached.

That agreement – to which Jamaica is a party – looks to hold “the increase in the global average temperatures to well below two degrees above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius above pre-industrial levels”.

New Activities

It is against this background that Jamaica is continuing its own mitigation efforts.

“Certain new activities have started up again under the memorandum of understanding we had with the Americans, for example, particularly around natural gas, that will allow us to have much more efficient plants …” a source from the Ministry of Water, Land, Environment, and Climate Change told The Gleaner at the start of the year.

“Natural gas generation, generally speaking, can be made to respond very well to changes in demand … . For example, if you have a solar plant and production dips, it is relatively easy for you to ramp up the production of electricity from a natural gas plant,” the source added.

There are also other efforts afoot.

“Recognising that energy is not just electricity, it is also transport, some of the work we will be doing in respect of sector planning will involve a closer look at transportation and transportation efficiency and how we can reduce the amount of oil consumed there,” the source noted.

Further, to achieve 20 per cent renewables in the island’s energy mix, the source said, “You can increase the amount of renewables or decrease the amount of other fuels in the mix. There, you are talking efficiency measures and the Government is looking at efficiency in a number of respects.”

The Gleaner

Ten companies submitted bids to build and operate renewable energy plants that run on solar, wind, water or waste, but two are in danger of being disqualified for non-payment of the bid security.

The Office of Utilities Regulation (OUR) received the bids for supply of up to 37 megawatt of renewable power to the grid on Wednesday and will determine the preferred bidders by April.

The bids included a 24.7MW waste-to-energy plant at US$110 million, by Green Waste Energy Inc; a 37MW wind plant at US$61 million by Wigton WindFarm Limited; a 20MW solar plant, at US$33.15 million, by WRB Enterprise Inc and a separate bid to build a 37MW solar plant at US$72.15 million, which contains three options.

Great Valley bid US$50 million to develop a 26.4MW wind farm; Tamarind Energy proposed a 36.3MW at US$76.96 million; and BMR Jamaica bid US$18.27 million for a 9.9MW wind farm to expand the existing wind farm that it is developing in central Jamaica.

The other four bids were a 37MW solar project at US$48.7 million with an alternative option by Eight Rivers Energy Company Limited; a 2MW hydropower project, at US$8.9 million, by Petroleum Corporation of Jamaica; a 37MW solar plant at US$77.14 million by Jamaica Energy Partners; and a 30MW biothermal energy plant, at US$93.8 million by Bio Energy Resources Limited.

“We are happy with the process. It was done in an orderly and professional manner,” said Angella Rainford of Eight Rivers Energy Company following the bid openings held at the OUR.

“The returns are attractive, but it’s also the right fit for the country as it mitigates against the reliance on oil,” said Rainford.

Eight Rivers took no chances and submitted a US$700,000 bid security.

Two of the 10 bidders – Green Waste Energy and Bio Energy Resources – did not put up the required security, OUR legal Chenee Rily disclosed at the bid opening.

The OUR required each bidder to submit security equivalent to one per cent of the project cost.

“The only two bids with firm capacity failed to offer a bid security it’s unfortunate,” said Cecil Gordon, the director of generation at Jamaica Energy Partners, in discussion with the Financial Gleaner at the OUR event. “Waste-to-energy gives a constant output so it’s firm capacity.”

Gordon explained that wind solar and hydro can fluctuate depending on external factors, including weather. He also indicated that waste-to-energy projects are more expensive to operate – “which means a lower return,” he added.

OUR said on Thursday that the decision on whether to disqualify the two waste-to-energy bids would be considered by the bid review committee when it convenes.

Last July, the OUR issued a Request for Proposals (RFP) from local and international interests to supply up to 37MW of electricity generation from renewable energy resources on a build, own and operate basis. Wednesday was the deadline for the receipt of bid documents.

This latest project is to complete an RFP process started in 2012 to identify interested entities to submit proposals for the supply of one or more plants of varying configurations greater than 100kW and up to 115MW of renewable energy. At that time, 78MW was identified from three successful bidders.

The Gleaner