Up to yesterday, there was still no word from the Office of Utilities Regulation (OUR) on the security bond from the three selected preferred bidders for the 115 megawatts of electricity-generation project using renewable energy-based power-generation facilities on a build, own and operate basis.

On October 1, the OUR announced that it had selected three companies which would supply 78 megawatts of the required amount. They had until this past Tuesday to provide the OUR with the applicable proposal security.

The named preferred bidders were Blue Mountain Renewables LLC, to supply 34 megawatts of capacity from wind power at Munro in St Elizabeth; Wigton Windfarm Limited, to supply 24 megawatts of capacity from wind power at Rose Hill, Manchester; and WRB Enterprises Inc, to supply 20 megawatts of capacity from Solar PV through facilities in Content Village, Clarendon.

The proposed delivery price to the national grid for these projects ranged from US$0.1290 to US$0.1880.

Jamaica Gleaner;

The Office of Utilities Regulation (OUR) has selected three preferred bidders for the supply of up to 115 megawatts of electricity-generation capacity from renewable energy-based power-generation facilities on a build, own, and operate basis.

In a release yesterday, the OUR said from the proposals for energy-only, the evaluation panel recommended three entities as preferred bidders with capacity amounting to 78 megawatts. These comprise two projects offering energy from wind, amounting to 58 megawatts; and one offering solar, amounting to 20 megawatts.

The preferred bidders are Blue Mountain Renewables LLC, to supply 34 megawatts of capacity from wind power at Munro in St Elizabeth; Wigton Windfarm Limited, to supply 24 megawatts of capacity from wind power at Rose Hill, Manchester; and WRB Enterprises Inc, to supply 20 megawatts of capacity from solar PV from facilities in Content Village, Clarendon.

The proposed delivery price to the national grid for these projects ranged from US$0.1290 to US$0.1880.

The preferred bidders have been directed to provide the OUR with the applicable proposal security by October 15.

The OUR said on June 3 that it had received 28 bids from 20 interested entities, which submitted proposals to supply renewable energy electricity generation of greater than 100 kilowatts and up to 115 megawatts to the national grid.

The bids were tendered by both local and international entities, with eight proposals received from local companies. Two proposals were received for wind, one for biomass, and 25 for solar energy.

Jamaica Gleaner;

Students from Ascot Primary in St Catherine take in a wind turbine during a tour of the Wigton Windfarm in Manchester.

JAMAICA can triple its electricity generated from wind if it uses up its full potential.

A recent wind resource assessment identified four locations suitable for energy development with a combined potential generating capacity of 212 million kilowatt-hours (kWh) annually (just over five per cent of total consumption).

The study, which assessed 24 prospective sites across the island, revealed that Rose Hill and Top Lincoln in Manchester, Winchester at the foot of the John Crow Mountains in St Thomas, and Kemps Hill in Clarendon could each yield more than 5.3 million kWh a year.

The Winchester site in St Thomas was described as “by far the best wind site surveyed so far”, according to a Petroleum Corporation of Jamaica (PCJ) press statement released yesterday.

PCJ-owned Wigton Windfarm has already picked the Rose Hill site to place a 24 megawatt (MW) wind farm facility, for which it made a submission to the Office of Utilities Regulation’s (OUR) in response to a Request for Proposals for 115 MW of electricity generation capacity from renewable energy sources.

Wigton, which currently produces 97 million kWh from its 38.7 MW of installed capacity, projected that it could generate 63 million kWh from the new site by 2015.

And if the other three sites are developed, total wind energy production in Jamaica could surpass 320 million kWh, after taking Jamaica Public Service Company’s (JPS’s) Munro Wind Farm output into account.

What’s more, when the four addtional sites are exploited, Jamaica stands to reduce national oil consumption by at least 124,000 barrels a year, which cost above $1.2 billion annually.

The wind resource assessment was carried out as part of a wind and solar development programme, which is being implemented by Wigton under a funding agreement between the Inter-American Development Bank (IDB) and the PCJ.

“The programme aims to increase Jamaica’s utilisation of renewables by developing photovoltaic and wind power plants to supply the national grid,” said the PCJ release.

The study was based on data collected between November 2011 and January 2012.

“With our current focus on utilising our natural resources to address our energy challenges, both the government and the private sector need credible information to make development and investment decisions about viable energy solutions,” said Earl Barrett, Wigton Windfarm’s general manager.

“The national wind resource assessment will be a great resource to the majority of interests in Jamaica’s energy Sector, but we hope it will be particularly useful for potential investors.”

Jamaica Observer;

JAMAICA continues to agonise over the cost of electricity and the capacity to pay for its oil imports. This agony started with the first oil price shock in 1973 and the degree of agony has varied with the ebb and flow of oil prices. The country is in the throes of trying to reduce the cost of electricity and the oil import bill.

Much attention is now being devoted to finalising the outcome of the bidding process for an additional 360-megawatt (MW) of electricity at the most competitive price. The Office of Utilities Regulation (OUR) is being lambasted over its handling of the selection of the “best” bidder to undertake the construction of a 360MW-generating power plant to provide additional generating capacity to the national grid. The heightened anxiety is also due to the impending changes in the terms of PetroCaribe, an eventuality that should have been anticipated and prepared for.

Meanwhile, the productive sector continues to be stymied by the high cost of electricity and households are impoverished by their electricity bills. Jamaica has a very high price of electricity at 0.26 USD/kW h, which puts the economy at a substantial disadvantage in being internationally competitive. The cost of electricity has contributed to the deindustrialisation of the country, which is most evident in the manufacturing industry.

Jamaica has a peak daily demand of approximately 600 MW, which is provided through a number of steam and combustion gas turbine plants as well as a few small hydro plants. The Jamaica Public Service Company (JPS) has been the main supplier until fairly recently. About 25 per cent of this generating capacity (197 MW) is supplied by non-JPS sources. JPS has an exclusive franchise on transmission, distribution and retail supply. Almost half the generation capacity is over 30 years old and transmission losses are estimated at 23 per cent.

The real problem is not the JPS, the OUR or rapacious oil-exporting countries. It is the absence of a national energy policy aimed at lowering the cost of electricity by a combination of less expensive alternatives to oil and an increased reliance on renewable energy sources such as solar and wind.

The cost of oil imports during the last 40 years has had little success in prompting the exploration of alternative energy solutions in Jamaica, unlike many other countries for example Germany where solar and wind account for 22 per cent of electricity generation. Wind and solar contributed an insignificant amount of our energy needs despite its potential. In 1995, the PCJ was mandated to develop indigenous renewable energy resources. The Petroleum Corporation of Jamaica (PCJ) established a wholly-owned subsidiary, Wigton Wind Farm Limited (Wigton) in 2000. Wigton is the first commercial wind farm. Electricity purchase agreements allow Wigton to sell electricity to JPS. Solar sources have the potential to save on oil imports but not enough homes and business establishments have installed capacity. This is inexplicable because falling prices have made solar power competitive with conventional sources of energy. In the 1970s solar panels converted sunlight into electricity at a cost of US$70 a watt, but today that figure is less than 80 cents.

Jamaica’s energy crisis is an indisputable failure of successive governments of both political parties. The Jamaican people have paid a high price for this incompetence and mismanagement with little prospect for change for the better.

The Jamaica Observer;

Wigton Windfarm Limited’s (WWFL) plans to start expansion this year.

WWFL projects that it will generate additional energy of 63 gigawatt-hours (GWh) per year from an extra capacity of 24 megawatts (MW) by 2015.

Wigton Phase III is slated to start this year

That would increase its existing capacity of 38.7 MW by 62 per cent.

Last year, the wholly-owned subsidiary of Petroleum Corporation of Jamaica said studies indicate that energy from Wigton III can be translated into 72,141 barrels of oil being avoided (saved) annually, as well as 102,248 tonnes of carbon dioxide not being emmitted .

Under the new phase, WWFL intends to focus on developing potential sites at Great Valley by itself or by a third party.

Exploratory work on Wigton IV was also slated to be pursued and will focus on potential sites North or Wigton, according to last year’s estimates.

Electricity produced from wind energy is sold to the Jamaica Public Service under a power-purchase-agreement and is projected to generate revenues of $1.1 billion this fiscal year, or $7 miilion less than the last year.

WWFL also plans to add an additional revenue stream in the form of training to stakeholders. According to the estimates, “this arose from the need to develop more expert engineers locally in light of expansion of the renewable energy industry and the desire to create jobs.”

“The company aims to continue to observe efficiency in its operations and maintain a relatively steady profit margin,” said the estimates of revenue and expenses for 2013/2014. “As such as surplus of $163 million is being projected this year.”

The windfarm is mandated to provide and facilitate increased wind power and other renewable energy usage to generate electricity thereby diversifying Jamaica’s energy mix.

Though the renewable energy target for 2015 is 12.5 per cent, in accordance with the National Energy Policy as part of Vision 2030, WWFL said the government’s energy output will increase to 9.36 per cent during the year that ends next year March, up from seven per cent, according to the estimates of revenue and expenditure for the year ending March 2014.

Read more:

A section of Wigton's wind park, located in Manchester, which provides renewable energy. - File
A section of Wigton‘s wind park, located in Manchester, which provides renewable energy. – File

Steven Jackson, Business Reporter

Economic windfalls are expected as wind operators seek to increase their supply of energy to the electricity grid to seven per cent from the current 2.5 per cent in the near term, saving more than J$1 billion annually in oil imports.

That is according to Dr Mario Anderson, group managing director, Petroleum Corporation of Jamaica (PCJ).

The PCJ-operated Wigton Windfarm in Manchester produced enough energy to save the country more than US$5.3 million (J$493 million) on oil imports during fiscal year 2011/12 or 47 per cent more year on year, due to its own expansion.

Dr Anderson said there are plans to generate a further 24 megawatts of wind power.

Another alternative energy supplier, Clean Alternative Energy Limited (CAEL), also plans to construct a 24 megawatt facility. That facility, to be based in Manchester, would raise the nation’s wind energy output by some 60 per cent.

CAEL directors include Wesley McLeod, businessman; Christopher Townsend, attorney; and Roger Williams, quantity surveyor.

“CAEL is estimated to save Jamaica US$4 million per year in fuel import costs annually, as approximately 40,183 barrels of oil equivalent will be saved per year in imports at an average price of US$100,” said the company in an environmental impact assessment report to the National Environment and Planning Agency.

The combined saving from Wigton and CAEL, however, would save only a fraction of Jamaicas annual oil bill, which hit US$2.4 billion in 2011. But the economic savings are augmented by the environmental benefits.

Wigton accumulated nearly 76,000 units of tradable carbon credits or certified emission reductions (CERs) in fiscal year ending 2012, equivalent to some US$375,000 based on estimates of existing rates.

Wigton earned some 52,000 CER units a year earlier. Carbon credits are worth about US$5 per tonne or unit.

CAEL said that its facility slated for Great Valley, Manchester would draw visitors to the area.

“The installation of the wind farm at Great Valley may lead to an increase in visitors to the area. There will likely be school trips as well as visits by persons who are interested in viewing the installation. The company said.

This may lead to increased commercial activity in the nearby towns. The Wigton farm located less than five kilometres from the proposed Great Valley wind-farm is said to receive thousands of visitors annually, it added.

CAEL plans to employ 100 persons during the nine to 12-month construction period but the cost of developing the wind-farm has not been disclosed.

Up to last year, the PCJ held the exclusive right to exploit and develop renewable resources in Jamaica.

In October 2012, the Government of Jamaica rescinded the PCJ’s exclusivity, which in effect liberalised the renewable energy sector.

steven.jackson@gleanerjm.com

Read more:

Good Day,

Wigton Windfarm Limited invites you to a Wind Resource Assessment: A Capacity Building Workshop which will be hosted at the Windfarm in Manchester on July 13th, 2012 at 10:00 a.m. There will be presenters from The University of the West Indies and The University of Technology.

Attached are the Flyer, Brochure, Direction Map and Registration Form. The Flyer and Brochure will give you more information about the workshop and background of the presenters. If you decide to attend, please fill out the registration form and payments can be made at the Wigton’s Office in the PCJ Building, 36 Trafalgar Road, Kingston 10. Only thirty (30) spots are available, so it would be best to make confirmation as soon as possible.

For more information you can call Kimberly Budram or Michelle Chin Lenn at 960-3994/960-0568.

We hope to see you there.

Best Regards,
-Kimberly Budram
Wigton Windfarm Limited