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Renewable Energy Project Improving Lives Of St Bess Residents

September 19, 2016 Webmaster

When Blue Mountain Renewables (BMR) began operating its 36-megawatt wind farm in Potsdam, St Elizabeth, a few months ago, the facility became Jamaica’s largest private-sector renewable energy project.

Minister of Science, Energy and Technology Dr Andrew Wheatley, who gave the keynote address at the official opening on August 11, pointed out that the wind farm would help to diversify the country’s energy matrix and ease the dependence on imported fossil fuels.

“The wind farm is expected to reduce greenhouse gases by about 66,000 tons of carbon dioxide equivalent per year, roughly equivalent to taking 13,000 cars off the road,” he informed.

Wheatley also applauded the relationship and assistance the company has given to the neighbouring schools, Munro College and Hampton High, as well as the treatment of farmers in St Elizabeth who were affected during the construction phase.

Principal of Hampton High Heather Murray said that she could literally see the ‘wind of change’ with the advent of the BMR wind project.

She bemoans the fact that nearly a quarter of her school’s budget is spent on high electricity cost, money that could be spent on building a state-of-the-art science laboratory.

“BMR brings hope and we welcome them wholeheartedly. We are also excited about the efforts to go green and we are doing our part here at Hampton. Earlier this year, we swapped all fluorescent light bulbs for more environmentally friendly LED bulbs,” Murray stated.

She also informed that Hampton had installed about 12 solar panels to integrate renewable energy into their electric supply. The panels, combined with small wind turbines on the campus, now provide about one-fifth of the school’s energy needs, she noted.

TO SERVE THOUSANDS

The BMR Jamaica Wind project will serve thousands of customers annually. Power will be sold to the Jamaica Public Service (JPS) Company, under a 20-year power-purchase agreement. This electricity is expected to be among the lowest cost sources of power available on the JPS system.

Jamaica currently relies on oil imports to meet 90 per cent of its energy needs. This leaves the country vulnerable to fluctuating oil prices, which can make it difficult to budget and plan effectively.

To ease the dependence, the country has set a target to generate 30 per cent of its energy from local renewable sources such as hydro, wind and solar power by 2030.

President of BMR Bruce Levy said construction of the project was made easier by the cooperation of the Potsdam residents and the appreciation they showed for the work being done in their community.

“We made sure there was significant benefit to the local and wider community, with billions of dollars of direct spending and employment of hundreds of Jamaicans during construction. We say, without any fear of contradiction, that we are committed to community development,” he said.

Levy informed that the wind farm was made possible through a US$62.7 million financing package, including a US$42.7 million loan from the Overseas Private Investment Corporation (OPIC); a US$10 million loan from the International Finance Corporation (IFC), and a US$10 million loan from the IFC-Canada Climate Change Programme. BMR Energy provided an equity investment of US$26.9 million.

Gleaner

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BMR wind farm commissioned

August 23, 2016 Webmaster

Malvern, St Elizabeth — Eighteen months after ground was broken, the 36.3-megawatt wind farm run by BMR Jamaica Wind at Potsdam, Malvern, high in the Santa Cruz Mountains, was formally commissioned in mid-August.

Priced at US$89.9 million, the wind project, located across the road from another wind farm run by light and power company Jamaica Public Service Company (JPS), is being described as the single largest investment in St Elizabeth since construction of the Alpart alumina plant at Nain in the late 1960s.

The BMR project includes eleven wind turbines, which will provide energy to JPS’s national grid at US12.9 cents per kilowatt-hour.

BMR Jamaica Wind is a subsidiary of US-based BMR Energy. Guests at the recent formal commissioning were told that billionaire British investor, Sir Richard Branson — who turned up for the commissioning — was in the process of acquiring BMR through his wide- ranging and far-flung Virgin Group.

Branson, who triggered laughter by ripping up and throwing away what he said were his speaking notes, told his audience that his motive for the acquisition was to promote a clean energy revolution.

“I decided recently that we needed to get one or two core (clean energy) companies under our belt so that we can actually get out there and speed up this revolution …” he said.

“ We were delighted to acquire BMR and we will be out there trying to hustle and bustle governments all over the Caribbean and other countries to hurry up towards carbon neutrality by 2050. Personally, I don’t need to make money out of it, if it makes a bit of money, fine; if it doesn’t, fine. I just want to get the wind out there get the solar out there, … be powered by sun, wind, sea… a green energy revolution and bring the cost of energy down for everybody; get rid of the dangers of coal and oil and the dirty energies that we are using today… ” said Branson, founder of the Virgin Group.

Funding for the BMR project in Malvern was sourced through a package including a US$42-million loan from the US quasi-government investment agency Overseas Private Investment Corporation (OPIC), which pushes US overseas investment globally; US$10 million from the International Finance Corporation (IFC), which promotes private sector development; US$10 million from the IFC-Canada Climate Change Programme and equity investment of US$26.9 million from BMR Energy.

Jamaica’s energy minister Andrew Wheatley said the BMR wind farm formed part of the government’s drive to significantly reduce reliance on fossil fuels and reduce the current annual oil bill of about US$2 billion. Ninety-two per cent of Jamaica’s energy needs are currently met by oil imports, he said.

The project was in line with the target of 30 per cent renewables in the national energy mix by 2030, as stated in the National Energy Policy, and in keeping with Vision 2030 Jamaica, the minister said.

“Projects like BMR continue to establish Jamaica as a clear renewables market leader within the Caribbean. By the end of this year, we would have added 80 MW of renewable energy to the national grid, through Wigton III (a wind farm at Rose Hill in southern Manchester), Content Solar (solar plant in Clarendon), and this facility,” Wheatley said.

Bruce Levy, president of BMR Energy, said the company had plans to expand the wind farm at Malvern by an additional three wind turbines. Small farmers would co-exist with the energy-generating operations, he said.

Jamaica Observer

Alternative Energy Climate Change Electricity Energy Saving News Solar Energy

OUR Gets 10 Bids For 37MW Renewable Project

January 29, 2016 Webmaster

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

Alternative Energy JPS News

More Wind Energy Coming For National Grid By September

June 27, 2014 Webmaster

Yesterday, the Jamaica Public Service Company (JPS) signed an agreement to purchase wind energy from BMR Jamaica Wind Limited over a period of 20 years.

Under the terms of the agreement, the JPS also has the option to purchase 20 per cent interest in the project.

BMR Jamaica Wind is investing US$90 million in the project and the JPS says it has supported the venture by providing technical advice and vital wind data, from its own Munro Wind Farm.

According to the JPS, the project is a significant milestone in Jamaica’s energy security and diversification programme, and represents another important step toward reducing the cost of electricity.

Construction of the 34 megawatt wind farm will see 11 turbines being erected near Malvern, St Elizabeth, in proximity to the JPS Munro Wind Farm.

The JPS says the new wind farm is expected to save Jamaica 250,000 to 300,000 barrels of imported oil each year, or up to six million barrels of oil over the 20-year term of the agreement.

The project is also expected to create 90 to 120 new jobs during the construction, phase which begins in August 2014.

Commissioning is scheduled for September next year.

Jamaica Gleaner

Alternative Energy Electricity Government News

Jamaica can triple wind energy output

August 23, 2013 jrobinson

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;

Alternative Energy Electricity Government JPS LNG News Oil Solar Energy

Not enough attention to alternative energy

August 13, 2013 Webmaster

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;

Alternative Energy Government News

Windfarm Operators Aim To Slash Over J$1b From Oil Bill

January 14, 2013 jrobinson

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

Alternative Energy Government News

Govt Urges Investment in Wind Energy

September 5, 2012 jrobinson

The Wigton Windfarm in Manchester – FILE

As Government continues to encourage investment in renewable sources of energy, private interests are being urged to consider wind energy as a lucrative area for investment.

“We are trying to encourage private players, not just Government, to actually go into this as a business, because we believe that it is attractive enough for a company to make a return on their investment,