4 Main Challenges Facing Jamaica

[Rob]

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.

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.

[patty_k]

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

[dash]

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...

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

[Lola]

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

[Yvonne]

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.

[walter]

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.

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.

[Hussyband]

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.

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.

[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.

[booger]

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

[Rambo]

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?