Official Signing of Power Purchase Agreement (PPA) & Licence Presentation Ceremony

Photo: JIS Photographer Minister of Science, Technology, Energy and Mining, the Hon. Phillip Paulwell. (FILE)

Story Highlights

  • The official signing of these power purchase agreements for the provision of electricity to the national grid from renewables represents a truly historic development.
  • Over a year ago, the Government began a targeted series of policy shifts to enable and encourage investment in renewable energy projects.
  • With that 115MW installation, Jamaica will have some 12.5 per cent of our electricity capacity generated from renewables

Speaking Notes for Hon. Phillip Paulwell,

Minister of Science, Technology, Energy and Mining

Official Signing of Power Purchase Agreement (PPA’s) & Licence Presentation Ceremony

Between JPS and BMR Jamaica Wind Ltd., Wigton Wind Farm III, WRB Enterprises

Thursday, September 18, 2014

Mona Visitors’ Lodge and Conference Centre, UWI Mona

Salutations etc…

1)      The official signing of these power purchase agreements for the provision of electricity to the national grid from renewables represents a truly historic development as we move to transform the country’s energy sector. As we aggressively pursue the addition of energy from renewable sources into our fuel mix, our goal, as I have consistently stated is to have by 2030, 25 per cent of our energy our electricity coming from renewable sources. And we are well on the way to achieving that goal.

 

2)      Over a year ago, the Government began a targeted series of policy shifts to enable and encourage investment in renewable energy projects. First, we removed a proviso that gave the PCJ the exclusive right to develop all renewable energy projects in Jamaica. Once that was done, the OUR issued a Request for Proposals to procure up to 115 MW of energy generated from renewable sources.

 

3)      With that 115MW installation, Jamaica will have some 12.5 per cent of our electricity capacity generated from renewables – bringing us to almost 50 per cent of our goal of 30 per cent by 2030. The 115 MW of renewable energy also provides some 400,000 megawatt hours (MWh) of electricity per year, and will save Jamaica the equivalent of over 700,000 barrels of imported oil per year amounting to $55 million USD annually.

 

4)      Recipients of the new licences 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. We are assured that the proposed delivery price to the national grid for these projects ranged from US$0.1290 to US$0.1880 (Blue Mountain Renewables US$0.1290; Wigton Wind US 0.1330; WRB US$0.1880).

 

5)      Bid Security:

–          Blue Mountain Renewables LLC, submitted a bid security of US$777,100.

–          Wigton Windfarm Limited, which is to supply 24 megawatts from wind power paid US$450,000,

–          WRB Enterprises Inc., to supply 20 megawatts paid US$650,080.

 

6)      Value of Investments:

  • Blue Mountain Renewables LLC: US$77.7 Million
  • WRB Enterprises Inc.: US $65 Million
  • Wigton Windfarm Limited: US$45 Million

 

7)      Total value of investment US$20, 577,180 (Approximately US$20.6 Million or J$23 billion. All three companies have already started work on their projects, and have indicated that by end 2015 they will be up and running.

 

8)      I am particularly pleased to be associated with this important development for a number of reasons. Firstly, successive governments of Jamaica have long realized that the greatest handicap to the achievement of sustained and sustainable development and growth has been our heavy dependence on oil. We must import over 90 percent of our demand and pay for it in scarce foreign exchange and at great cost, use it to fuel social and economic activity.

 

9)      Over the years, we have utilized this expensive commodity to produce electricity, largely using inefficient outdated plants. To remedy this untenable situation, we have sought many solutions; well-intentioned plans were proposed; detailed studies were undertaken; serious recommendations were advanced, but somehow the ultimate solution remained elusive.

 

10)  In 2009, a national energy policy was crafted and it emphasized the need for us to focus on energy security by reducing our reliance on imported oil. It was designed to facilitate the establishment of a comprehensive program of efficiency improvement and energy diversification to provide high‐quality, affordable, environmentally‐friendly energy and to reduce the country’s dependence on high‐cost imported oil. The Policy commits Jamaica to having at least 20 percent of the country’s energy mix coming from renewable sources by 2030.

 

11)  So even as we move post-haste with the process of acquiring the mega-generation plant, we must not lose sight of developments and achievements with regard to conservation measures and the efforts to tap into non-traditional sources of energy.

 

12)  In fact, by mid-2015, Jamaica will be the top country in the region in terms of its use of renewables. As Energy Minister, I have signed some166 licences with a combined capacity of over 2.6 MW for Net Billing.

 

13)  Importantly also, we regard energy efficiency and conservation as valuable resources. Energy not used is money saved, energy wasted in money down the drain. It is with this in mind that we welcomed just over a year ago, the IDB-sponsored Public Sector Energy Efficiency and Conservation Programme. The programme seeks to slash the government’s $14 billion public sector electricity bill and already it has resulted in significant savings in the country’s electricity bill.   Under the programme, an investment of 90 million USD over four years is expected to yield savings of some 3.2 billion JMD or 35 million USD per year.

 

14)  In addition, the programme involves education in best practices for energy efficiency as well as steps to enact behaviour change. Some of these practices require no capital expenditure, but will result in additional significant reduction in energy consumption and cost.

 

 

 

JIS Social