Seated from (left) Audrey Sewell, permanent secretary in the Ministry of Economic Growth and Job Creation; Milverton Reynold, managing director of the Development Bank of Jamaica; Gillian Hyde, general manager of JN Small Business Loans, and Allison Rangolan McFarlane, chief technical director, Environmental Foundation of Jamaica sign a Memorandum of Understanding (MOU) to facilitate the administration of the Climate Change Adaptation Line of Credit (CCALoC). The CCALoC will provide financing to Micro, Small and Medium Size Enterprises in the tourism and agri-business sectors across Jamaica, to increase resilience to climate change in these sectors. The signing took place at the Office of the Prime Minister in St. Andrew last year. Looking on are Minister with Portfolio in the Office of the Prime Minister with responsibility for Economic Growth and Job Creation, Daryl Vaz and Therese Turner-Jones, general manager of the Inter-American Development Bank Caribbean Department.

Jamaica National Small Business Loans (JNSBL) is looking to vamp up interest in its US$2.5-million adaptation to climate change line of credit, catering exclusively to small and medium size enterprises (SMEs) from the agriculture, tourism and related sectors.

“In the coming months, JNSBL will be strengthening its efforts through collaborations with related parties in the tourism and agro value chain to further promote the special loan facility,” said Jacqueline Shaw Nicholson, JNSBL’s communications and client services manager.

“We will also support the education of persons on matters of climate change as well as adaptive and mitigation techniques available to them,” she told The Gleaner.

So far, SMEs have drawn down on J$19.5 million of the available funds to finance the installation of rainwater harvesting systems, drip irrigation systems, water recirculation systems, solar water heating system, and energy smart system.

The first loan was approved in December, following the official launch of the line of credit earlier in the year.

“JNSBL is pleased with the take up of the loan facility so far, with 51 per cent to the Tourism sector and 49 per cent to the agro sector in disbursements,” said Shaw Nicholson.

For those persons wishing to drawn down on the funds, criteria for selection include not only that they be operating a tourism or agro-related business, but also that proposed projects must enhance their capacity to cope better with the increased changes and effects of climate change.

“Collateral is required and can include machinery and equipment of trade or to be purchased, motor vehicles that can be comprehensively insured or registered titles as well as lien on deposits, guarantors are also acceptable,” revealed Shaw Nicholson.

The maximum loan amount that can be awarded is $5 million, with an interest rate of four per cent per annum on the reducing balance.

However, Shaw Nicholson said, “borrowers can also utilise other loan facilities available at JNSBL to further support project implementation where needed”.

The line of credit is one of two financing mechanisms under the Pilot Programme for Climate Resilience. The other is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica (EFJ).

The SCCAF finances adaptation and disaster risk-reduction projects and cover associated programme management cost.

It is accessible by community-based organisations, other civil-society groups and select public-sector agencies specifically for “clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction”, according to project documents.

The EFJ recently awarded 18 grants to the tune of $84.9 million to undertake projects designed to boost the ability of communities to respond to climate change threats.

Counted among those threats are increased and/or more severe extreme weather events, such as hurricanes and droughts, which destroy agricultural and tourism livelihoods.

Climate change also brings warmer temperatures, which, too, have negative implications for not only human livelihoods but also marine life. This is given, as one example, the negative effects of increased sea surface temperatures on coral reefs.

It is a look at these implications that, at least in part, provides the basis of JNSBL’s decision to pursue administration of the line of credit under the PPCR.

“Increasingly, agro-related activities were experiencing negative changes in production yield, both in quality and quantity, which affected their ability to earn as per usual. We, therefore, wanted to assist with educating our clients and staff on matters of climate change and assist them to obtain the systems and techniques necessary to adequately respond to matters of climatic variability,” Shaw Nicholson said.

“JNSBL is also cognisant of the wider threat climate change poses to food security and as a part of our own mandate to support economic sustainability, JNSBL wanted to provide well needed support to the MSME sector to adequately mitigate and adapt for sustainability,” she added.

Gleaner

IMF Letter of Intent for Jamaica, April 2013

Renewable Energy exerpts extracted from:

International Monetary Fund

Jamaica: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding
April 17, 2013

The following item is a Letter of Intent of the government of Jamaica, which
describes the policies that Jamaica intends to implement in the context of its
request for financial support from the IMF.

GROWTH STRATEGY
11. The government is committed to implementing a growth strategy built on time
bound fiscal consolidation and structural reforms aimed at reducing impediments to
growth, complemented by strategic investment facilitation. Among the main impediments to
growth are high public debt (142 percent of GDP as of end 2011/12), low factor productivity and
competitiveness, high energy cost,…

Labour Market Interventions and Reform
15.
The Renewable Energy and Efficiency Technology Programme (in partnership with the
CARICOM Education for Employment Programme) to create a skilled workforce to design,
install and maintain Renewable Energy Systems (beginning January 2014).

Strategic Investments
17.
Implement energy sector initiatives to achieve fuel-source diversification, facilitate
energy conservation and promote liberalization in delivery to achieve progressive
reductions in the cost of energy. Accordingly, the government will:
? Diversify energy sources from oil to gas based and renewables.4

4
!!!!!!! The construction and commissioning by the Jamaica Public Service Company (JPS) of a 360 Megawatt
Combined Cycle plant by 2015 remains a centerpiece of the medium term energy sector strategy, as well as a
build out of renewable energy capacity.!!!!!!

With regard to the promotion of renewable energy, the JPS All Island
Electricity Licence was amended to, among other things, establish a 25MW ceiling (previously 15MW) for
renewable energy generation capacity to be installed and sold to the JPS grid without competitive tendering. In
addition, in November 2012 the Office of Utilities regulation (OUR) issued a Request for Proposals for the supply
of 115MW of electricity generation from Renewable Energy and the bid period was subsequently extended by
two months to June 2013.

Promote liberalization in delivery through continued efforts to facilitate distributed
generation networks.6

6
In 2011, the Government introduced Net Billing regulation, and in May 2012 issued licenses for the first eleven
participants in the Net Billing initiative. The Government, through the Energy Security and Efficiency
Enhancement Project has provided resources for a US$4.6 million line of credit through the Development Bank of
Jamaica for businesses to implement renewable energy and efficiency-enhancement projects. In addition,
The Development Bank of Jamaica has instituted a J$100 million fund for residential energy loans to finance
renewable energy solutions such as small wind turbines, solar panels or biogas ingesters, while the National
Housing Trust has introduced two loan facilities to facilitate the installation of Solar Water Heaters and Solar
Photovoltaic Panels.

Complete document:
http://jsea.org.jm/docs/IMF%20Letter%20of%20Intent%20for%20Jamaica,%20April%202013%20(041713).pdf

KINGSTON, Jamaica – Appliance Traders Limited (ATL) Thursday (June 6) launched a first of its kind eco-store in Jamaica.

The new energy-exclusive retail outlet is located in Manor Park Plaza in St Andrew and marks ATL’s continued expansion into the alternative energy space following the launch of its Energy Solutions division in April this year and the introduction of its own ‘Eco-Smart’ electronics-efficiency certification.

Teaming up with long-standing partner Panasonic, as well as Israel’s top solar water heater provider Nimrod, the ATL Eco-Store boasts the latest ‘green’ technology from the Panasonic inverter product line including air conditioners and refrigerators, Panasonic

APPLIANCE Traders Limited (ATL) has expanded into the alternative energy business.

ATL Energy Solutions will add solar water heaters, photovoltaic panels and other devices for revewable power to the appliance retailers energy-efficient product line.

Shani Duncan (right), business development manager of energy solutions at Appliance Traders Limited (ATL), shares some literature on energy efficiency with State Minister for Science, Technology, Energy and Mining Julian Robinson (left) at the Jamaica Alternative Energy Expo held at the Pegasus on Monday.

The division will also provide technical consultancy on assessing, designing and implementing scalable energy-saving solutions for businesses and homes.

“We want to demystify the alternative energy space for our customers making it easier for them to determine the best path to reducing their energy consumption,” said Paul Grey, ATL’s energy and engineering manager.

The introduction of the industrial giant’s new division comes after months of extensive research and analysis of global alternative energy providers to identify the best solutions for the Jamaican market according to the division head.

“Record energy prices in Jamaica as well as in the international marketplace have heightened the need for sustainable alternatives. Expanding into the energy business is a natural progression for ATL given our history of providing advanced engineering and industrial solutions for major projects in Jamaica and the Caribbean,” said Grey. “Our mandate with ATL Energy Solutions is to provide our customers with a comprehensive resource centre to assess, design, implement, and service energy-saving technology and equipment that will reduce consumption patterns and ultimately energy receipts.”

ATL already has solid footing in the alternative energy space executing a joint $8.6-million initiative with eco-innovation leaders Panasonic.

The project saw the construction of a prototype eco-villa at Sandals Montego Bay, the first of its kind in Jamaica.

The luxury suites are fully powered by Panasonic’s photovoltaic systems as well utilise all inverter appliances and electronics. Additionally, the company inked an exclusive arrangement with leading Israeli solar technology company Nimrod Industries Limited to distribute its solar water heaters as well as implemented its own Eco-Smart seal to earmark ‘green’ electronics in its product line-up.

“We are at a transformational period in the Jamaican energy sector that requires us to either heavily curb our existing consumption patterns or look to alternative sources of power,” said Grey. “Our strategic partnerships enable us to offer a gamut of solutions across a range of applications for both our commercial and residential customers. From LED light bulbs which can last over 50,000 hours to solar photovoltaic (PV) panels which can last up to 25 years or even inverter appliances which save up to 60 per cent on power bills, we have solutions for the energy-mindful consumer.”

ATL also provides detailed energy audits from which customers can readily evaluate their savings.

APPLIANCE Traders Limited (ATL) has expanded into the alternative energy business.

ATL Energy Solutions will add solar water heaters, photovoltaic panels and other devices for revewable power to the appliance retailers energy-efficient product line.

Shani Duncan (right), business development manager of energy solutions at Appliance Traders Limited (ATL), shares some literature on energy efficiency with State Minister for Science, Technology, Energy and Mining Julian Robinson (left) at the Jamaica Alternative Energy Expo held at the Pegasus on Monday.

The division will also provide technical consultancy on assessing, designing and implementing scalable energy-saving solutions for businesses and homes.

“We want to demystify the alternative energy space for our customers making it easier for them to determine the best path to reducing their energy consumption,” said Paul Grey, ATL’s energy and engineering manager.

The introduction of the industrial giant’s new division comes after months of extensive research and analysis of global alternative energy providers to identify the best solutions for the Jamaican market according to the division head.

“Record energy prices in Jamaica as well as in the international marketplace have heightened the need for sustainable alternatives. Expanding into the energy business is a natural progression for ATL given our history of providing advanced engineering and industrial solutions for major projects in Jamaica and the Caribbean,” said Grey. “Our mandate with ATL Energy Solutions is to provide our customers with a comprehensive resource centre to assess, design, implement, and service energy-saving technology and equipment that will reduce consumption patterns and ultimately energy receipts.”

ATL already has solid footing in the alternative energy space executing a joint $8.6-million initiative with eco-innovation leaders Panasonic.

The project saw the construction of a prototype eco-villa at Sandals Montego Bay, the first of its kind in Jamaica.

The luxury suites are fully powered by Panasonic’s photovoltaic systems as well utilise all inverter appliances and electronics. Additionally, the company inked an exclusive arrangement with leading Israeli solar technology company Nimrod Industries Limited to distribute its solar water heaters as well as implemented its own Eco-Smart seal to earmark ‘green’ electronics in its product line-up.

“We are at a transformational period in the Jamaican energy sector that requires us to either heavily curb our existing consumption patterns or look to alternative sources of power,” said Grey. “Our strategic partnerships enable us to offer a gamut of solutions across a range of applications for both our commercial and residential customers. From LED light bulbs which can last over 50,000 hours to solar photovoltaic (PV) panels which can last up to 25 years or even inverter appliances which save up to 60 per cent on power bills, we have solutions for the energy-mindful consumer.”

ATL also provides detailed energy audits from which customers can readily evaluate their savings.

As customers contend with the increasing cost of energy bill, they may often ask what their alternatives are.

But before you even consider costly renewable energy systems, you should first adopt a conservation approach.

The average Jamaican household (that spends on average $12,000 per month on electricity bill) can spend $2 million on alternative energy.

Coming off the grid isn’t merely about divorcing the company that supplies your power and charges you on a monthly basis. It’s more than that; it’s about cheaper means of supplying and using power.

“If you are not one to maximise the energy saving opportunities, producing power on your own, and getting off the Jamaica Public Service (JPS) grid won’t save you money,” said Nathan Parkins, design technician at Alternative Power Sources.

Renewable energy systems are designed to match your current consumption, that is the more you consume, the bigger and more costly your system will have to be.

“If you don’t conserve, you could very well end up spending $5 million on a system when you could have had one for $3 million,” he said.

Some energy savings opportunities are free.

Turning off lights that aren’t in use may sound like the usual energy savings lecture, but if you aren’t flicking the switch, you are increasing wastage.

Lights on during the daylight hours, are obviously wasteful.

Then there are some suggestions that would require you to spend a little extra cash.

Equipment that trap heat and in turn pass it on to you, without electricity, are an option.

Opt for solar water heater over electric water heater, Parkins advised.

“We pay so much to use the electricity to get hot water, yet we have the sun,” he said. “I can safely say solar water heater can shave 15 per cent off your light bill.”

Checks by the Sunday Finance found that the National Housing Trust (NHT) offers loans to for solar water heaters to existing mortgagers with a maximum funding of $250,000.

But, if you have already got a loan from the NHT, you would have to wait 10 years before you can access the maximum $1.5 million funding for solar panels.

Nonetheless, there are some less pricey options, which are common to most households.

People with up-to-date energy style appliances will use less power than those without.

So, if you are not too sentimental, you could think about doing away with your 30 year old refrigerator and cash in on a newer model.

Gas stoves get the energy savings nod of approval rather than an electric stove.

Overtime, old appliances lose efficiency and consume more power.

You could even place a timer on your refrigerator that shuts it off after a number of hours.

The average fridge runs 11 hours per day.

In addition, you should repair loose magnetic rubbers of the refrigerator door, it allows the cool air to leave, using up more power.

Don’t keep your fridge too close to the wall, the heat coil at the back needs enough room for sufficient circulation.

As for lighting, there’s LED. Though this is more expensive to buy than fluorescent bulbs, switching could reduce your power usage by 50 per cent.

But, Parkins said this is most necessary for businesses that need the use of light for longer periods.

Do you think the time has come to getting power on your own? Well, Parkins crunched the numbers for the Sunday Finance.

According to him, a household user who spends on average of $4,500 per month wouldn’t spend roughly half a million dollars on alternative energy.

As for the average Jamaican household that he said spends on average $12,000 per month, they can get an alternative system for $2 million.

What’s more, you don’t have to completely abandon the JPS, you could opt to make a particular room solar.

Read more:

ATL Assistant Deputy Director Ian Neita (left) seals the deal with a handshake with Nimrod's Export Manager Mario Waisman after signing an exclusive agreement in which Appliance Traders Limited will serve as Nimrod's agent to distribute its solar technology in Jamaica. - CONTRIBUTED
ATL Assistant Deputy Director Ian Neita (left) seals the deal with a handshake with Nimrod’s Export Manager Mario Waisman after signing an exclusive agreement in which Appliance Traders Limited will serve as Nimrod’s agent to distribute its solar technology in Jamaica. – CONTRIBUTED

Appliance Traders Limited (ATL) announced Thursday that it will exclusively distribute solar water heaters from Israeli supplier, Nimrod Industries Limited.

It forms part of ATL’s new thrust to offer energy-efficient solutions to Jamaican homes and businesses.

“There has been a prominent call for homes and businesses to ‘go green’ with several local government agencies and financial institutions supporting ventures in alternative energy. With the Nimrod distribution, ATL is bringing the best of Israel’s solar technology to Jamaican shores,” said ATL’s Energy and Engineering Manager Paul Grey in the release.

ATL said that the Nimrod product ideally captures natural light whilst protecting against rust which develops after exposure to ‘hard water‘.

“In the Caribbean, we are prone to ‘hard water’ – that is water with mineral elements. Nimrod coats their piping with enamel which prevents mineral deposit build-up and ultimately extends the life of the heater, ensuring savings for customers,” said Grey. “We are pleased that Nimrod has chosen to permeate the Jamaican market. We think the time is right and that Jamaicans are ready to invest,” Grey stated.

ATL is owned by Gordon ‘Butch’ Stewart.

Solar water heaters have grown in popularity since the 1990s, especially within resorts as a means of reducing electricity costs.

ATL will be going up against companies such as longstanding player Isratech Jamaica, which also distributes solar heaters in partnership with an Israeli company, Chromagen.

Isratech Jamaica has, since the 1990s, imported the finished water heaters for local sale but this month announced plans to start local production of heaters. It will import the components from Chromagen and assemble the heaters at its plant at Kendal in Mandeville once it finalises a J$15-million plant expansion.

The terms of ATL’s deal with Nimrod were not disclosed, neither did ATL respond to requests for comment up to press time on the type of investment and infrastructure that will surround its new product line.

business@gleanerjm.com

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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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