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26 November 2013
Jamaica Sustainable Energy RoadmapJamaica Sustainable Energy Roadmap
Pathways to an Affordable, Reliable,
Low-Emission Electricity System
Project Summary• 2.5 year project funded by the German
Environment Ministry’s International Climate Initiative
• Assesses energy efficiency, renewable energy, and grid solutions
• Examines current policies and finance opportunities for fostering the growth of sustainable energy
• Makes recommendations to encourage sustainable energy development
Sustainable Energy Roadmap Goals
• Highlight the benefits and importance of increased
energy efficiency and renewable energy in Jamaica
• Build capacity among policymakers and stakeholders
to implement Roadmap recommendationsto implement Roadmap recommendations
• Facilitate closer collaboration between stakeholders
• Provide governments with the tools to make their
countries more attractive for renewable energy
investment
Policy Recommendations
Policy Recommendations
Technical Assessment
Energy Efficiency Potential
Renewable Energy Potential
Grid Solutions
Technical Assessment
Energy Efficiency Potential
Renewable Energy Potential
Grid Solutions Sustainable Energy
RoadmapRecommendations
Vision & Long-Term Goals
Concrete Policy Mechanisms
Governance & Administrative Efficiency
Recommendations
Vision & Long-Term Goals
Concrete Policy Mechanisms
Governance & Administrative EfficiencyFinancing
Options
Gap Analysis
International Support & Cooperation
Domestic Reform & Capacity Building
Financing Options
Gap Analysis
International Support & Cooperation
Domestic Reform & Capacity Building
Socio-Economic Analysis
Levelized Cost of Energy +
Energy Scenarios
Macroeconomic Effects
Socio-Economic Analysis
Levelized Cost of Energy +
Energy Scenarios
Macroeconomic Effects
Today’s Electricity System
Electricity Sales in JamaicaBy Sector, 2011
33%19%
2% 1%
Residential
Small commercial
20%
25%
Large commercial
Industrial
Street light
Other
Electricity in Jamaica
• No fossil fuel resources
– Dependent on imports
– Petroleum imports accounted for 96% of electricity
produced in 2009produced in 2009
• High percentage of GDP goes to oil imports
– Oil import costs were US$2.2 billion in 2011, or 15%
of GDP that year
– Costs peaked in 2008 at $2.7 billion, 19% of GDP
Energy Efficiency Potential
Barbados
Chile
Trinidad & Tobago
Venezuela3000
4000
5000
6000
annu
al k
Wh
per c
apita
con
sum
ptio
n
Energy Consumption vs. GDP
Argentina
Belize
Bolivia
Brazi l
Chile
Colombia
Costa Rica
Domincan Republic
Ecuador
El Salvador
Guatemala
Haiti
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Uruguay
Regional Average
0
1000
2000
3000
0 2000 4000 6000 8000 10000 12000 14000 16000 18000
annu
al k
Wh
per c
apita
con
sum
ptio
n
GDP per capita
Source: World Bank, EIA, Worldwatch Institute
Power Plant EfficiencyGeneration Technology & Owner (where applicable) Efficiency
(percent)
Jamaica Private Power Company Low-Speed Diesel 43.0
Jamaica Energy Partners Medium-Speed Diesel 41.9
Combined-cycle 40.7
JPS Low-Speed Diesel 37.4
Oil-Fired Steam 26.8
Gas Turbine 24.4
Households With Electrical Appliances
Appliance 1997 2006
Television 74.0 93.1
Refrigerator 69.6 82.0
Microwave Oven 6.9 34.6Microwave Oven 6.9 34.6
Washing Machine 6.4 23.1
Electric Stove 3.2 4.1
Electric Water Heater 2.9 6.4
Air Conditioner 1.7 3.0
• Energy efficiency measures can result in significant cost savings over a short time frame.
• Jamaica’s petroleum power plants are highly inefficient
• Jamaica’s electricity grid has high transmission and distribution losses.
• Major reductions in Jamaica’s bauxite and alumina production—a sector with high energy consumption needs—played a significant role in reducing the country’s energy intensity
Key Findings: Energy Efficiency
energy intensity
• The hotel and tourism industry has high potential for achieving energy savings.
• The National Water Commission (NWC), Jamaica’s water and sanitation service provider, is the country’s single largest electricity consumer and faces prohibitive energy costs.
• Financing barriers continue to hinder implementation of cost-saving efficiency measures.
Renewable Energy Potential
Solar Energy Potential
Wind Energy Potential
Hydro Power PotentialLocation Potential Capacity (MW)
Great River 8.0
Martha Brae River 4.8
Back Rio Grande 3.9
Rio Grande 3.6
Yallahs River 2.6
Spanish River 2.5Spanish River 2.5
Wild Cane River 2.5
Morgan’s River 2.3
Green River 1.4
Negro River 1.0
Dry River 0.8
Total 33.4
Source: MSTEM
Waste-to-Energy Potential
Economic Viability Analysis for Waste-to Energy Facility
Annual Waste to Be Incinerated 109,500 tons per year
Annual Operating Cost USD 11.63 million
Annual energy sales to the grid (at USD USD 8.13 millionAnnual energy sales to the grid (at USD
0.1205 per kWh)
USD 8.13 million
Annual tipping fee (at USD 75 per ton) USD 8.21 million
Net Profit USD 4.71 million
Key Findings: Renewable Resources• The entire island’s electricity demand could be met with renewable resources.
• Distributed solar PV generation at the household and commercial level can play an
important role in Jamaica’s energy mix.
• Just 10 medium-sized wind farms could provide over half of the country’s current power
demand.
• Developing additional small hydropower capacity can provide cheap power to Jamaica’s • Developing additional small hydropower capacity can provide cheap power to Jamaica’s
electricity grid and energy access for remote locations.
•Improving the efficiency of Jamaica’s current biomass generation facilities and connecting
them to the grid could provide nearly 10% of the country’s electricity demand with
agricultural waste alone.
•A coherent national waste management strategy is necessary in order to harness the
significant public and private interest in waste-to-energy development.
Grid and Storage
Jamaica’s Current Electricity Grid
Typical Weekday Load Profile
Monthly Solar Variation
200
250
300
Av
era
ge
GH
I (W
/m
2) Soapberry
Wigton
PCJ
0
50
100
150
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Av
era
ge
GH
I (W
/m
2)
Month
PCJ
Montego Bay
Trade Winds
SRC
St. Ann's Bay
Germany
Daily Wind Variability
Key Findings: Grid & Storage
• Grid upgrades and expansion required under any scenario
• Distributed generation reduces grid losses
• Storage solutions can help meet demand at peak hours
• Strategic placement of renewable energy sources can further
reduce renewable intermittency issues
• Variability challenges can be minimized by upgrading the grid with
higher voltage transmission lines and improving operations and
forecasting.
Pathways to Meet Future Demand
8000
10000
12000
14000
GW
h
Annual Demand Projection (GWh)
1200
1400
1600
1800
2000
MW
Peak Demand Projection (MW)
OUR Demand Projection 2009- 2030
0
2000
4000
6000
8000
2009 2012 2015 2018 2021 2024 2027 2030
GW
h
Low Base High
0
200
400
600
800
1000
2009 2012 2015 2018 2021 2024 2027 2030
MW
Low Base High
800
1000
1200
1400
Loa
d (
MW
)
OUR Projected Load Profile in 2030
0
200
400
600
Loa
d (
MW
)
Hour
Scenarios For Energy TransitionScenario 1
Baseload Expansion: LNG
Scenario 2
Baseload Expansion: Coal
Scenario 3
Baseload Expansion: None
Renewable Share of
Installed Capacity
Renewable Share of
Installed Capacity
Renewable Share of
Installed Capacity
BAU 5% BAU 5% BAU 5%
1a 20% 2a 20% 3a 20%1a 20% 2a 20% 3a 20%
1b 30% 2b 30% 3b 30%
1c 50% 2c 50% 3c 50%
1d 70% 2d 70% 3d 70%
1e 94% 2e 81% 3e 94%
20% Renewable
Energy
30% Renewable
Energy
50% Renewable
Energy
70% Renewable
Energy
94% Renewable
Energy
6000
7000
8000
9000
10000
Annual Demand & Generation - Scenario 1: RE/Gas
Scenario 1 Energy Demand & Generation
0
1000
2000
3000
4000
5000
6000
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
GW
h
Petroleum NG Petcoke Renewables Annual Power Demand
800
1000
1200
1400
Loa
d (
MW
)
Electricity System in 2030 (50% Renewable Energy)
LNG Used as Expansion
Projected Energy Matrix in 2030
0
200
400
600
Loa
d (
MW
)
Hour
Oil (Capacity: 127MW) Natural Gas (Capacity: 622MW) Petcoke (Capacity: 100MW)
Bagasse (Capacity: 101MW) Hydro (Capacity: 75MW) Wind (Capacity: 644MW)
Solar (Capacity: 890MW) Load (MW)
12001400160018002000220024002600
Loa
d (
MW
)
Electricity System in 2030 (94% Renewable Energy)
LNG Used as Expansion
Projected Energy Matrix in 2030
0200400600800
10001200
Loa
d (
MW
)
HourOil (Capacity: 127MW) Natural Gas (Capacity: 597MW) Petcoke (Capacity: 100MW)Bagasse (Capacity: 101MW) Hydro (Capacity: 75MW) Wind (Capacity: 1330MW)Solar (Capacity: 1900MW) Load (MW)
Scenario 1 Load Analysis w/ Storage
Excess RE Generation
Stored for Backup
Excess RE Generation
Stored for Backup
1200
1400
1600
1800
2000
2200
2400
2600
Loa
d (
MW
)
Electricity System in 2030 (94% Renewable Energy with Energy Storage)
0
200
400
600
800
1000
1200
Loa
d (
MW
)
Hour
Energy Storage Backup (Capacity: 500MW) Natural Gas (Capacity: 597MW)
Petcoke (Capacity: 100MW) Bagasse (Capacity: 101MW)
Hydro (Capacity: 75MW) Wind (Capacity: 1330MW)
Solar (Capacity: 1900MW) Load (MW)
Scenario 2 Energy Demand & Generation
20% Renewable
Energy
30% Renewable
Energy
50% Renewable
Energy
70% Renewable
Energy
81% Renewable
Energy
7000
8000
9000
10000
Annual Demand & Generation - Scenario 2: RE/Coal
0
1000
2000
3000
4000
5000
6000
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
GW
h
Petroleum Coal Petcoke Renewables Annual Power Demand
Scenario 2 Hourly Load Analysis
800
1000
1200
1400
1600
Loa
d (
MW
)
Electricity System in 2030 (50% Renewable Energy)
Coal Used as Expansion
0
200
400
600
800
Loa
d (
MW
)
HourOil (Capacity: 430MW) Coal (Capacity: 627MW) Petcoke (Capacity: 100MW)
Bagasse (Capacity: 101MW) Hydro (Capacity: 75MW) Wind (Capacity: 644MW)
Solar (Capacity: 890MW) Load (MW)
Scenario 2 Hourly Load Analysis
1200
1400
1600
1800
2000
2200
2400
Loa
d (
MW
)
Electricity System in 2030 (81% Renewable Energy)
Coal Used as Expansion
0
200
400
600
800
1000
Loa
d (
MW
)
Hour
Oil (Capacity: 430MW) Coal (Capacity: 422MW) Petcoke (Capacity: 100MW) Bagasse (Capacity: 101MW)
Hydro (Capacity: 75MW) Wind (Capacity: 1127MW) Solar (Capacity: 1602MW) Load (MW)
Scenario 2 Load Analysis w/ Storage
Excess RE Generation
Stored for Backup
Excess RE Generation
Stored for Backup
1200
1400
1600
1800
2000
2200
2400
2600
Loa
d (
MW
)
Electricity System in 2030 (81% Renewable Energy with Energy Storage)
0
200
400
600
800
1000
Loa
d (
MW
)
HourEnergy Storage Backup (Capacity: 249MW) Coal (Capacity: 422MW)
Petcoke (Capacity: 100MW) Bagasse (Capacity: 101MW)
Hydro (Capacity: 75MW) Wind (Capacity: 1127MW)
Solar (Capacity: 1602MW) Load (MW)
Scenario 3 Energy Demand & Generation
20% Renewable
Energy
30% Renewable
Energy
50% Renewable
Energy
70% Renewable
Energy
93% Renewable
Energy
6000
7000
8000
9000
10000
Annual Demand & Generation - Scenario 3: RE/Oil
0
1000
2000
3000
4000
5000
6000
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
20
12
20
14
20
16
20
18
20
20
20
22
20
24
20
26
20
28
20
30
GW
h
Petroleum Renewables Annual Power Demand
Projected Energy Matrix in 2030
800
1000
1200
1400
1600
Loa
d (
MW
)
Electricity System in 2030 (50% Renewable Energy) - Demand Not Served
With Existing Oil-Fired Capacity
0
200
400
600
800
Loa
d (
MW
)
Hour
Oil (Capacity: 573MW) Natural Gas (Capacity: 0MW) Petcoke (Capacity: 0MW) Bagasse (Capacity: 101MW)
Hydro (Capacity: 75MW) Wind (Capacity: 644MW) Solar (Capacity: 890MW) Load (MW)
12001400160018002000220024002600
Loa
d (
MW
)
Electricity System in 2030 (93% Renewable Energy)
With Existing Oil-Fired Capacity
Projected Energy Matrix in 2030
0200400600800
100012001400
Loa
d (
MW
)
Hour
Oil (Capacity: 573MW) Natural Gas (Capacity: 0MW) Petcoke (Capacity: 0MW)Bagasse (Capacity: 101MW) Hydro (Capacity: 75MW) Wind (Capacity: 1314MW)Wind (Capacity: 1877MW) Load (MW)
Excess RE Generation
Stored for Backup
Excess RE Generation
Stored for Backup
12001400160018002000220024002600
Loa
d (
MW
)
Electricity System in 2030 (94% Renewable Energy with Energy Storage
Backup) – Oil
Scenario 3 With Energy Storage
0200400600800
10001200
Loa
d (
MW
)
HourEnergy Storage Backup (Capacity: 500MW) Oil (Capacity: 573MW)Natural Gas (Capacity: 0MW) Petcoke (Capacity: 100MW)Bagasse (Capacity: 101MW) Hydro (Capacity: 75MW)Wind (Capacity: 1314MW) Solar (Capacity: 1877MW)
Battery Cost Projection
Key Findings• An electricity sector based on a share of more than 90% renewable energy by 2030 is
technically feasible. A renewable energy share of 50% by 2030 would merely cover new
demand but not replace existing conventional power.
• Natural gas and petroleum systems are better options than coal for transitioning to higher
shares of renewable energy.
• Investments in new coal plants will limit the amount of renewable energy the system can
integrate. integrate.
• Natural gas and oil-based generation plants are more flexible solutions, with fast ramp
times and lower minimum operating levels, allowing a smoother integration of larger
renewable energy shares.
• An accelerated renewable energy expansion might be in conflict with ensuring
profitability of newly built conventional power plants as their capacity rate significantly
reduces over time.
• Storage solutions can help renewable energy integration and reduce curtailment needs.
Socio-economic analysis
LCOE Without Externalities
20
25
30
35
40
45
50
55
US
c/k
Wh
0
5
10
15
20US
c/k
Wh
Capital O&M Fuel
LCOE With Externalities
20
25
30
35
40
45
50
55
US
c/k
Wh
0
5
10
15
20US
c/k
Wh
Capital O&M Fuel Cost Pollution Climate Change
LCOE Projection to 2030
20
25
30
35
40
45
Usc
/kW
h
0
5
10
15
20
Usc
/kW
h
LCOE Projection to 2030
15
20
25
US
c/k
Wh
Dummy Scenario 1: Natural
Gas
Scenerio 2: CoalScenario 3:
Oil
0
5
10
Bu
sin
ess
As
Usu
al
US
c/k
Wh
20
% R
en
ew
ab
le E
ne
rgy
30
% R
en
ew
ab
le E
ne
rgy
50
% R
en
ew
ab
le E
ne
rgy
70
% R
en
ew
ab
le E
ne
rgy
94
% R
en
ew
ab
le E
ne
rgy
20
% R
en
ew
ab
le E
ne
rgy
30
% R
en
ew
ab
le E
ne
rgy
50
% R
en
ew
ab
le E
ne
rgy
70
% R
en
ew
ab
le E
ne
rgy
81
% R
en
ew
ab
le E
ne
rgy
70
% R
en
ew
ab
le
En
erg
y
93
% R
en
ew
ab
le
En
erg
y
Fuel Cost & Savings
15000
20000
25000
Cumulative Fuel Costs &
Savings till 2030 - NG
15000
20000
25000
Cumulative Fuel Costs &
Savings till 2030 - Coal
15000
20000
25000
Cumulative Fuel Costs &
Savings till 2030 - Oil
0
5000
10000
Total Cost of Fuel
for Electricity
Generation
Total Savings in
Fuel Cost Over
Business As Usual
Business As Usual 20% Renewable Energy
30% Renewable Energy 50% Renewable Energy
70% Renewable Energy 94% Renewable Energy
0
5000
10000
Total Cost of Fuel
for Electricity
Generation
Total Savings in
Fuel Cost Over
Business As Usual
Business As Usual 20% Renewable Energy
30% Renewable Energy 50% Renewable Energy
70% Renewable Energy 81% Renewable Energy
0
5000
10000
Total Cost of Fuel
for Electricity
Generation
Total Savings in
Fuel Cost Over
Business As Usual
Business As Usual 70% Renewable Energy
93% Renewable Energy
Scenario 1 Savings from High RE Penetration
15,000
20,000
25,000
30,000
US
D (
In M
illi
on
s)
Cumulative Costs & Savings till 2030 - NG
-
5,000
10,000
15,000
Total Investment Required to
Meet Annual Demand
Total Cost of Electricity
Generation
Total Savings Over Business As
Usual
US
D (
In M
illi
on
s)
Business As Usual 20% Renewable Energy 30% Renewable Energy
50% Renewable Energy 70% Renewable Energy 94% Renewable Energy
Scenario 2 Savings from High RE Penetration
15,000
20,000
25,000
30,000
US
D (
In M
illi
on
s)
Cumulative Costs & Savings till 2030 - Coal
-
5,000
10,000
15,000
Total Investment Required to
Meet Annual Demand
Total Cost of Electricity
Generation
Total Savings Over Business As
Usual
US
D (
In M
illi
on
s)
Business As Usual 20% Renewable Energy 30% Renewable Energy
50% Renewable Energy 70% Renewable Energy 81% Renewable Energy
Scenario 3 Savings from High RE Penetration
20,000
25,000
30,000
US
D (
In M
illi
on
s)
Cumulative Costs & Savings till 2030 - Oil
-
5,000
10,000
15,000
Total Investment Required to
Meet Annual Demand
Total Cost of Electricity
Generation
Total Savings Over Business As
Usual
US
D (
In M
illi
on
s)
Business As Usual 70% Renewable Energy 93% Renewable Energy
Scenario 1 GHG Mitigation
75
100
125
150
Mil
lio
n t
on
s C
O2
Cumulative CO2 Emissions till 2030 - NG
-50
-25
0
25
50
Total Emissions From Electricity
Generation
Total Emissions Savings Over Business As
Usual
Mil
lio
n t
on
s C
O2
Business As Usual 20% Renewable Energy30% Renewable Energy 50% Renewable Energy70% Renewable Energy 94% Renewable Energy
Scenario 2 GHG Mitigation
50
75
100
125
150
Mil
lio
n t
on
s C
O2
Cumulative CO2 Emissions till 2030 - Coal
-50
-25
0
25
50
Total Emissions From Electricity Generation Total Emissions Savings Over Business As Usual
Mil
lio
n t
on
s C
O2
Business As Usual 20% Renewable Energy 30% Renewable Energy
50% Renewable Energy 70% Renewable Energy 81% Renewable Energy
Scenario 3 GHG Mitigation
50
60
70
80
90
100
Mil
lio
n t
on
s C
O2
Cumulative CO2 Emissions till 2030 - Oil
0
10
20
30
40
50
Total Emissions From Electricity Generation Total Emissions Savings Over Business As
Usual
Mil
lio
n t
on
s C
O2
Business As Usual 70% Renewable Energy 93% Renewable Energy
Key Findings: Socioeconomic Analysis• The cost of generation for renewable energy in Jamaica currently cost less
than 9.6 U.S. cents per kWh on average, which is 42% cheaper than the least-
cost fossil fuel generation option on the grid
• Integrating environmental costs in these cost assessments further
strengthens the argument to move away from a fossil-fuel based electricity
system
• Transitioning to an almost entirely renewable electricity system can decrease
the average cost of electricity in Jamaica by 67%, from 22 U.S. cents per kWh the average cost of electricity in Jamaica by 67%, from 22 U.S. cents per kWh
to 7 U.S. cents per kWh in 2030
• Higher shares of renewables require higher initial investments but reduce the
total cost of electricity generation in the long-run. Jamaica can save up to
USD 12.5 billion by investing in renewables, whereas BAU will cost the
country USD 29 billion to 2030, USD 23 billion of which is fuel costs alone
• With higher renewable shares, Jamaica can create up to 4,000 more jobs
than in the BAU scenario and decrease annual emissions in the electricity
sector by up to 5.2 million tons, to an estimated 0.7 million tons.
Finance and Investments
Financing Sustainable Energy in Jamaica: RE and EE Credit Lines
Credit Line Total Fund Amount Maximum Loan
Amount
Interest Rate Repayment Period
PetroCaribe Energy
Fund
Varies between J$500
million to J$1 billion
(USD 6–12 million)
J$30 million
(USD 340,000)
5% rate charged to
AFIs; 8% maximum rate
to borrower (on the
Jamaican dollar)
7 years; 1-year
moratorium on principal
payments
World Bank line USD 4–6 million J$30 million (USD 2.75% to AFI, maximum 10 years; 4-year
340,000); can be lent in
either USD or J$
5.75% to borrower
(USD); 4.5% to AFI,
maximum 7.5% to
borrower (J$)
moratorium on principal
payments
DBJ regular funds Varies No limit 6.5% to AFI, maximum
9.5% to borrower (J$)
10 years; 4-year
moratorium on principal
payments
PetroCaribe Varies USD 3 million 4.25% to AFI, maximum
7.25% to borrower (J$)
Information not
available at publishing
Residential energy
investments
Varies J$2 million
(USD 23,000)
6.5% to AFI, maximum
9.5% to borrower (J$)
8 years
International Finance Streams
Government and Multilateral
Organizations
• World Bank
• International Monetary Fund (IMF)
• Inter-American Development Bank
Climate Finance
• Clean Development
Mechanism (CDM)
• The Global Environment • Inter-American Development Bank (IDB)
• Caribbean Development Bank (CDB)
• United Nations Development Programme (UNDP)
• U.S. Agency for International Development (USAID)
• Organization of American States (OAS)
• U.S. Trade and Development Agency
• The Global Environment
Facility (GEF)
• Nationally Appropriate
Mitigation Actions
(NAMAs)
Key Findings: Finance and Investments• High interest rates and the lack of long-term loans pose a major barrier.
• DBJ provides energy credit lines and low-interest loans for sustainable energy projects,
especially for small and medium-sized enterprises.
• Banks are becoming more familiar with Jamaica’s growing renewable energy market and
domestic financial capabilities are increasing for EE and RE.
• The risk perception and capacity building needs are still impediments to widespread
domestic financing; mechanisms such as loan guarantees can provide a more stable
investment climate.
• Bilateral and multilateral agencies are focusing more on sustainable energy. Climate
financing can provide major support for Jamaica’s sustainable energy transition.
• More effective policy and regulatory mechanisms can address investment barriers.
Recommendations:Sustainable Energy Finance
• IMF acknowledged the important role of favorable EE and RE policies in strengthening Jamaica’s overall financial situation.
• Education and outreach is needed to inform developers about developments such as lowered interest rates.
• International finance is key to sustainable energy development, • International finance is key to sustainable energy development, especially for large-scale projects.
• Reducing bureaucratic hurdles and instituting risk-management measures such as loan guarantees will be essential for attracting international finance.
• International assistance can support both individual projects and implementation of sustainable energy policies.
Policy Assessment & Recommendations
Three Necessary Ingredients
Long-Term Vision• The National Energy Policy can be strengthened:
• Sector-specific RE targets for electricity, transportation, etc.
• Set an electricity-specific target of at least 30% of total generation by 2030
(a 30% RE share of primary energy would require a RE electricity target of
over 80%)*over 80%)*
• Various plans continue to prioritize fossil fuel energy sources:
• MSTEM diversification plans
• OUR’s 2010 Expansion Plan
• PIOJ’s Vision 2030 Plan
• Jamaica’s 2nd Communication to the UNFCCC
• Unified messaging is needed to signal policymakers and investors
Administrative Structure &
Governance• Streamline RE capacity permitting • Grid connection is often longest and
costliest. MSTEM and OUR should
guarantee grid access for RE
installations
• Strengthen existing efforts to guide
financing institutions and energy
developers (e.g. DBJ’s Environmental developers (e.g. DBJ’s Environmental
Management Framework)
• Aim to develop a single administrative
window for RE development
• Strengthen the Jamaica Energy Council
• Support MSTEM’s efforts to take on
electricity planning and procurement
Permitting Process for Small Hydro Capacity (100kW to 25 MW)
© Worldwatch Institute
Energy Efficiency Policies
Energy Efficiency
• Implement baseline efficiency standards and high-efficiency performance incentives for
high-impact appliances beyond refrigerators and freezers and bauxite/alumina
equipment
Tax Exemptions:
• General consumption tax exemptions apply broadly to EE and solar technologies
• Jamaica’s investment and export promotion agency (JAMPRO) implemented tax credits • Jamaica’s investment and export promotion agency (JAMPRO) implemented tax credits
for RE projects and accelerated depreciation benefits
• Extend import duty reductions and exemptions to high-efficiency equipment
Reduce Technical Grid Losses and Electricity Theft:
• At the end of 2011, JPS had installed 4000 smart meters (30-40% of electricity sales) and
10,000 automated meters, and strengthened its auditing efforts
• The successful Residential Automated Metering Infrastructure (RAMI) pilot project
should be improved and expanded
Policies to Harness Sustainable Energy:
Concrete Policies & MeasuresRenewable Energy
• MSTEM awarded first 11 five-year net billing
license contracts in 2012, but so far only 2
customers have connected to the grid
• Cost barriers and low net billing ratesOther Recommendations:
• Approve the Modernize
Electricity Act
• If the RFP generates significant
© Worldwatch Institute
Application process for renewable self-generation net billing
• If the RFP generates significant
interest, consider continued
tendering to achieve RE capacity
additions
• Feed-in-tariffs
• Loan guarantees for large-scale
sustainable energy investments
Key Findings: Policy Assessments
• The largest barriers to achieving a sustainable energy transition in Jamaica can be
overcome through smart policies
• National targets for EE and RE should be strengthened and embraced across all agencies
• The role of the Jamaica Energy Council should be strengthened and participation
expanded to all relevant Ministries
• OUR’s mandate to ensure affordable electricity prices from diverse energy sources must • OUR’s mandate to ensure affordable electricity prices from diverse energy sources must
be strongly enforced
• Transferring electricity planning and procurement from OUR to MSTEM would facilitate
greater RE deployment
• Existing policies to promote RE (net billing, electricity wheeling, and a request for
proposals for renewable capacity) should be implemented to their fullest potential
• Policies like net metering and renewable feed-in-tariffs provide additional future options
for Jamaica
Conclusions & Next steps
Next StepsConduct Additional Technical Assessments < 1 Yr. 1–2 Yrs. 3–5 Yrs.
Assess energy and cost savings potential of bauxite/alumina efficiency standards ●
Conduct sector-wide efficiency study for hotel/tourism industry to
demonstrate cost savings
●
Determine key appliances for new/upgraded efficiency standards ●
Conduct feasibility assessments for utility-scale solar PV farms ● ●
Conclude Wigton site-specific wind resource and feasibility assessments,
including variability data
●
including variability data
Conduct up-to-date small hydro resource and feasibility assessments ● ●
Conduct thorough resource and environmental assessment of biogas vs.
direct combustion waste-to-energy
●
Conduct grid connection feasibility and cost assessments for solar, wind,
and small hydro sites
● ●
Conclude World Bank grid assessment; include feasibility and cost
assessment for connecting and integrating distributed and variable
renewable generation
●
Conduct site feasibility assessments for pumped hydro storage ● ●
Next StepsStrengthen Socioeconomic Data Availability < 1 Yr. 1–2 Yrs. 3–5 Yrs.
Centralize Jamaica-specific renewable energy job
creation data
●
Assess gender inequities with regard to access to
sustainable energy wealth and job creation opportunities
in Jamaica
●
Strengthen Financial Institutions < 1 Yr. 1–2 Yrs. 3–5 Yrs.Strengthen Financial Institutions < 1 Yr. 1–2 Yrs. 3–5 Yrs.
Continue and expand education campaigns to improve
risk perception for sustainable energy investment
● ● ●
Establish sovereign guarantee for sustainable energy
loans with support from development institution
●
Establish national strategy for accessing climate finance,
including through Nationally Appropriate Mitigation Actions
● ●
Next StepsImplement a Strong Policy Framework < 1 Yr. 1–2 Yrs. 3–5 Yrs.
Focus Jamaica's energy strategy on renewable energy; coal and
natural gas should be secondary
●
Establish stronger, sector-specific renewable energy targets●
Strengthen the role of the Jamaica Energy Council in fostering
inter-ministerial cooperation for sustainable energy
●
Enforce OUR's mandate to ensure affordable electricity from
renewable sources
● ● ●
Pass legislation to grant MSTEM authority over electricity
capacity planning and procurement
●
Streamline permitting procedures for renewable energy projects ● ●
Implement energy efficiency building standards●
Next Steps
Implement a Strong Policy Framework (continued) < 1 Yr. 1–2 Yrs. 3–5 Yrs.
Pass new appliance efficiency standards●
Expand electricity theft audits and automated meter installations
● ● ●
Ensure full participation in net billing and electricity wheeling
programs
●
programs
Implement renewable capacity request for proposals in a timely,
efficient manner
●
Establish mechanisms for future renewable capacity
procurement, possibly through net metering and feed-in tariffs
●
Guarantee grid connection and priority grid access for renewable
capacity
●
Thank You!!Thank You!!
Alexander Ochs
Director of Climate and Energy
Mark Konold
Caribbean Program Manager
