4 Main Challenges Facing Jamaica

An article in today's Gleaner stated that there are four main challenges facing Jamaica. Food security,An economic downturn,a high crime rate and high energy costs. I have always been amazed at the high price of energy in Jamaica. My Jamaican lady friend has a very small house and pays almost $100.00 US a month. Very expensive compared to what i am used to in the NE US. I have been traveling to Jamaica since 1969 and have wondered why there is so little,if any. utilization of wind and solar creating energy. It seems like a no brainer.

The high cost of electricity in Jamaica is likely due to theft. The good folks that do pay their current bill, are covering for the people that don't.

I read the article. I think the issue is not energy, but politics. Thee is a high cost because 90% of the energy is purchased outside Jamaica and requires a conversion of currency for them to purchase it. Also there is a monopoly on energy in Jamaica. With competition prices will go down.

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Originally Posted by Mike_D

The high cost of electricity in Jamaica is likely due to theft. The good folks that do pay their current bill, are covering for the people that don't.

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Though thieving does happen...a lot of people have been criminally charged here lately...the high cost is due to the oil that is used to generate it.

No way do we run a/c in our house...toooo expensive...:)

Just curious, if you were to run AC medium cold pretty much all the time, how much would it cost per month?

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Originally Posted by gerryg123

Just curious, if you were to run AC medium cold pretty much all the time, how much would it cost per month?

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Gerry,

It depends on the efficiency of the AC unit itself, and the size of area you are trying to cool. For a typical hotel room, figure on about $10us a day - and that is if you dont leave the doors or windows open....

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Originally Posted by Bnewb

Though thieving does happen...a lot of people have been criminally charged here lately...the high cost is due to the oil that is used to generate it.

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Good to know. I have seen the billboard campaign around Jamaica warning about criminal charges for electricity theft. I'm glad it's working.

Aside from nuclear, (which is perennially opposed in JA - and for very good reason) renewable energy may be the best option for Jamaica. However, as Ljbd said, there is currently very little utilization of wind and solar resources. I think the major drawback is that the initial set-up cost is high and once implemented, they still do not eliminate the need for fossil fuel electricity.

Mike D...another issue...
there have been attempts at wind power down here but with the sea spray it becomes prohibitive because of the maintenance...

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Originally Posted by Bnewb

Mike D...another issue...
there have been attempts at wind power down here but with the sea spray it becomes prohibitive because of the maintenance...

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My gut feeling is that there is and has been oppostion and stonewalling politics at work to maintain the current monoply and thus making it extremely difficult for an alternate energy source to get a foothold.

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Originally Posted by gerryg123

Just curious, if you were to run AC medium cold pretty much all the time, how much would it cost per month?

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Assuming it runs all the time. 1.5 kW would be your typical window air conditioner.

1.5 kW x 24 hours/day x 30 days/month x $22/kWh = $23,760 JMD per month (approx $224 USD per month)

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Originally Posted by ljbd

My gut feeling is that there is and has been oppostion and stonewalling politics at work to maintain the current monoply and thus making it extremely difficult for an alternate energy source to get a foothold.

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Gut feelings aside, the fact is that competition and privatization of energy power production has been tried back as far as the early 90's. The start up costs are extremely high and time to get the return on investment has been too great.

In 1992, the World Bank approved establishment of the Rockfort Private Power Project. It began in 1995 and it closed in 1999 as it proved to not be financially viable.

http://www.worldbank.org/projects/P0...roject?lang=en

To set matters clear - from the JPSco website:

"Today, with a customer-base of nearly 580,000, we are the sole distributor of electricity in Jamaica. We have a generation capacity that exceeds 620 Megawatts, using steam (oil-fired), gas turbines, combined cycle, diesel, and hydroelectric technologies. We operate 27 generating units including eight (8) hydros and one (1) windfarm, 54 substations. We also own approximately 14,000 kilometres of distribution and transmission lines. We also purchase additional electricity from 4 Independent Power Producers (IPPs).

Our ownership structure is four tiered. Marubeni Caribbean Power Holdings Inc. and Korea-East West power each holds 40 percent ownership, the Government of Jamaica owns approximately 19% and a small group of minority shareholders maintain less than 1 percent stake."

http://www.myjpsco.com/about-us/

JPSco does currently buy electric production from independent producers. This eliminates the distribution and transmission costs that these companies would otherwise face. Jamaica, being the approximate size of Connecticut in the USA could probably only sustain 1 additional company since Connecticut only has two energy providers to choose from currently.

The choice of allowing independent providers to sell electricity to JPSco is a viable option since alternative companies have already been tried and failed.

In simple terms, the same "gut feelings" were shared years ago when TOJ (Telecommunications of Jamaica) then became Cable & Wireless held a monopoly on the phone industry. It took a large, well financed company like Digicel to come in with their vast resources to change the playing field, and now Jamaica has three phone providers which includes Flow.

One has to remember that Jamaica is an island country without the vast resources that the USA, Canada and other countries possess. If a strong company would come in with a viable, realistic and cost effective alternative to the current situation, I am sure that the government would be very interested. And since the IMF is now setting many guidelines for how Jamaica will progress in the future, this issue would most certainly become a priority matter.

my understanding is that there are also IMF re- paymenst (in the form of taxes ) built into utilities in JA.

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Originally Posted by Bnewb

Though thieving does happen...a lot of people have been criminally charged here lately...the high cost is due to the oil that is used to generate it.

No way do we run a/c in our house...toooo expensive...:)

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Easy for you Bnewb. You have Rob fanning you and feeding you chilled grapes.....

There is interest in solar, and one or more training schools.

Last chart I saw the KWh cost in JA was more than previously quoted, significantly more. Thus a much higher per month cost for any use of electric.

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Originally Posted by ljbd

My gut feeling is that there is and has been oppostion and stonewalling politics at work to maintain the current monoply and thus making it extremely difficult for an alternate energy source to get a foothold.

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Exactly !
The government would have to do 3 things for solar generation to make any sense and ALL of them simultaneously:
1. Abolish duty on solar equipment,
2. Abolish GCT on solar equip[ment,
3. Introduce net metering, so Jamaicans can sell excess of generated electricity at the same price they buy it.
Do you really think they would do it ? Do you ?
Wind generation is just an illusion [see Ontario's experience]. Huge capital expense and low return, you have to install output about 7 times greater than the one you can count on. Providing that there is frequent wind waaaay up there.

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Originally Posted by walter

Exactly !
The government would have to do 3 things for solar generation to make any sense and ALL of them simultaneously:
1. Abolish duty on solar equipment,
2. Abolish GCT on solar equip[ment,
3. Introduce net metering, so Jamaicans can sell excess of generated electricity at the same price they buy it.
Do you really think they would do it ? Do you ?
Wind generation is just an illusion [see Ontario's experience]. Huge capital expense and low return, you have to install output about 7 times greater than the one you can count on. Providing that there is frequent wind waaaay up there.

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Abolishing the duty is a step in the right direction... Making the panels on island would be a better idea. The GCT could also be reduced / eliminated by producing the panels on island.

Net metering. I hate this phrase. At face value it makes sense, but it fails to consider one important aspect of the whole scenario. The grid. Who pays for the grid in this scenario? Ultimately, the people who cannot afford to buy or set up their own solar panels for the home or business. Someone, somewhere has to pay for all the miles of wiring, the distribution and regulation of any power coming into the grid.

I really believe the only way renewables will ever work is with utility company scaling, supplemented by individual home use. I don't think Jamaica is currently able to subsidize the installation of projects like we are seeing in the US. They can't afford not to either, so it's a quandary.

A lot of issues facing JA...

Just after Portia came into power, almost everything went up 30% a lot of food (rice, flour, sugar) Digicel credit, among other things. The cost of living went up 30% but the wages stayed the same and with no social programs to speak of and of course this will raise the crime rate.

Most Jamaicans don't have to file or pay taxes, which if everybody did, they could send their children to school and have social programs.

Though JPS does have solar panels available they are too expensive for most to buy. Yes, JPS is cracking down on the thieving of power, arresting and throwing abusers into jail, even having people call in with tips, but so many steal it, out of necessity to eat, it makes it crazy expensive for the average home. When JPS comes around to read the meters, if they catch you, they tell you to pay them $10,000 JA so they don't report you, then you're good for another year and the JPS guy lines his pocket.

Solar is only viable in the US due to government rebates for the average homeowner.

with the infrastructure thats in place now ,no matter who supplies electrical powerthe must use existing lines and cabels, correct??
so what is to keep the owners of such lines from raising the rent ???

with added use will also come more wear and tear on such supply lines ??

if the Chinese haven't invested money into a new energy supply in Jamaica, why would anybody else?

Zimbali Retreats is solar and rain containment = off the grid

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Originally Posted by Bluez

A lot of issues facing JA...

Just after Portia came into power, almost everything went up 30% a lot of food (rice, flour, sugar) Digicel credit, among other things. The cost of living went up 30% but the wages stayed the same and with no social programs to speak of and of course this will raise the crime rate.

Most Jamaicans don't have to file or pay taxes, which if everybody did, they could send their children to school and have social programs.

Though JPS does have solar panels available they are too expensive for most to buy. Yes, JPS is cracking down on the thieving of power, arresting and throwing abusers into jail, even having people call in with tips, but so many steal it, out of necessity to eat, it makes it crazy expensive for the average home. When JPS comes around to read the meters, if they catch you, they tell you to pay them $10,000 JA so they don't report you, then you're good for another year and the JPS guy lines his pocket.

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When PM Simpson-Miller came into office, the previous government's payment to the IMF was coming due and urgent measures had to be taken immediately in order to comply with the previous IMF agreement. Since then, the government has done what it could to restructure the arrangement to make it a bit less stringent - but there is very little negotiations that can be made with the IMF. And the devaluation of the Jamaican dollar has not helped the matter at all.

All employed Jamaicans do pay taxes - they do not need to file unless there annual income is over j$500,000 - and there are few that are paid that much. Put the employer does have to deduct from their pay for the PAYE, NIS, NIH and Ed. Tax. For those interested here is a link explaining how the tax deductions are applied by all employers.

http://www.jamaicatax.gov.jm/index.p...mployersduties

And JPS meters in Negril are read monthly - no j$10,000 payoff will get you a free year of electricity. It might keep you from getting shut off that month - but that is about it...

There is no escaping JPS bills if you have a meter on it. The meter readers are required to have complete records for all the meters in their area. And they do change meter readers on a regular basis to prevent fraud. JPS figured that out a long time ago... (grin)

Jamaica rates are 7 - 16 Jam$ per Kwh - with lots of fees added on. Very high for the reasons stated in this thread.

Ontario rates are approx 7 to 13 cents CAN$ per Kwh. With lots of other fees (2 x you usage) added on. ie, the same or more than Jamaican rates.

Ontario residents are being gouged on many fronts, not just electricity, by a corrupt socialist government that blew 14 BILLION on useless wind and solar projects.

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Originally Posted by Kahuna3

Jamaica rates are 7 - 16 Jam$ per Kwh - with lots of fees added on. Very high for the reasons stated in this thread.

Ontario rates are approx 7 to 13 cents CAN$ per Kwh. With lots of other fees (2 x you usage) added on. ie, the same or more than Jamaican rates.

Ontario residents are being gouged on many fronts, not just electricity, by a corrupt socialist government that blew 14 BILLION on useless wind and solar projects.

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Wind being the biggest rip off. And then of course there is the billion wasted when they cancelled the gas power plant. Our hydro is slated to increase 33% over the next 5 years.

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Originally Posted by Rob

When PM Simpson-Miller came into office, the previous government's payment to the IMF was coming due and urgent measures had to be taken immediately in order to comply with the previous IMF agreement. Since then, the government has done what it could to restructure the arrangement to make it a bit less stringent - but there is very little negotiations that can be made with the IMF. And the devaluation of the Jamaican dollar has not helped the matter at all.

All employed Jamaicans do pay taxes - they do not need to file unless there annual income is over j$500,000 - and there are few that are paid that much. Put the employer does have to deduct from their pay for the PAYE, NIS, NIH and Ed. Tax. For those interested here is a link explaining how the tax deductions are applied by all employers.

http://www.jamaicatax.gov.jm/index.p...mployersduties

And JPS meters in Negril are read monthly - no j$10,000 payoff will get you a free year of electricity. It might keep you from getting shut off that month - but that is about it...

There is no escaping JPS bills if you have a meter on it. The meter readers are required to have complete records for all the meters in their area. And they do change meter readers on a regular basis to prevent fraud. JPS figured that out a long time ago... (grin)

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I agree that there is little negotiating with the IMF and Jamaica had nobody else to turn to so basically had to agree to their terms. My comments are actually referring to the goings on in Kingston, not specifically Negril, which I should have specified. I saw first hand how the prices went up on everything and people were more desperate than before she came into power. I have no idea how Portia and her new policies affected Negril, but she was previously in power for 18 years and the Jamaica we love still is no further of getting out of being a 3rd world country in spite of the huge loan to help the country. While yes, taxes are taken off of legitimate workers, most citizens I met worked for themselves and didn't have to pay taxes, not only could they not afford to, but not many people make that kind of money there. As for the meter, yes they pay and get JPS bills, JPS put on new meters but the users bridge it out (re-wire in the home) so the meter doesn't charge the full amount to the meter. Without getting anybody into trouble, I saw this happen time and time again, people who knew how to do it, did it for their family and friends. With Negrl being such a small community this would be easier to monitor.

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Ontario residents are being gouged on many fronts, not just electricity, by a corrupt socialist government that blew 14 BILLION on useless wind and solar projects.

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Almost sounds like Ontario is in USA