Mona Reservoir Floating Solar Project to Generate $1B in Annual Savings

The Mona Reservoir Floating Solar Project in St. Andrew is expected to generate approximately $1 billion in annual savings for the National Water Commission (NWC).

This was disclosed by Minister without Portfolio in the Ministry of Economic Growth and Job Creation, Senator the Hon. Matthew Samuda, who said the savings should be realised from the pending finalisation of wheeling rates.

Wheeling is the transmission of electric energy, measured in megawatt-hours (MWh) from within an electrical grid to an electrical load outside the grid boundaries.

Senator Samuda said pending finalisation of the rates, “the NWC should, conservatively, see a reduction in the… overall energy cost per kilowatt hour (KWh) of 30 per cent of [the] current rate of approximately US$0.38/KWh, as at August 2022”.

“The NWC will be wheeling five-megawatt… of… power to other NWC qualified facilities under the wheeling regime between the hours of 8:00 a.m. and 10:00 p.m. The projected savings, conservatively, is approximately $1 billion a year,” the Minister pointed out.

Senator Samuda advised that the savings will be used to improve critical infrastructure and address supply issues.

He provided the update during the Senate’s recent sitting at Gordon House.

The Minister further indicated that the NWC will power 100 per cent of the operations at the Mona treatment plant, utilising the new solar facility.

“This will result in savings, at today’s energy cost, of approximately $35 million at that facility annually,” he said.

The Minister further noted that the NWC will receive payments of US$25,000 for leasing out the 100 acres of water surface plus four acres of land for the installation of inverters, battery storage and grid stability equipment.

Other benefits under the initiative include decreased evaporation losses from the reservoir’s surface, along with reduced need to treat algae buildup as well as de-silting capacity gains.

The Mona Reservoir Floating Solar Project pilot was officially launched by Prime Minister, the Most Hon. Andrew Holness, in September.

Derillion Energy Jamaica Limited (DEJL) has partnered with the Aten Group and REIL Energy Investments Limited (REIL), to execute the project, which has a total capital expenditure/investment of US$62,386,968.

Mr. Samuda said the pilot phase, which generates approximately 50 KWh, has resulted in a 31 per cent reduction in energy consumption at the Mona treatment plant for July 2022, over May’s out-turn.

He said the NWC has a network of more than 730 facilities that consume over 17 gigawatt hours (GWh) of electricity monthly, at an average cost of $650 million.

“Increases in oil prices earlier this year triggered spikes in electricity bills, with monthly costs surpassing a $1 billion for the first time. Energy is one of the most important pillars of water production and distribution,” the Minister said.

Against this background, Mr. Samuda said the initiative is an example of the Government leading the way in implementing a strategic project that will generate clean energy, which is resilient and climate adaptive.