Professional Documents
Culture Documents
Volume 1, Issue 12
Powered by the
CARICOM Secretariat
In this Issue
25.
MEMBER
STATE
PROFILE
+ St. Vincents
Geothermal
Revolution
Full Steam Ahead
36.
CEP PROFILE
PAST HAPPENINGS
He further stated that the Overseas Private Investment Corporation (OPIC) of the US will
intensify its focus on developing clean energy projects in the Caribbean and also went on to
note that OPIC had indicated that it would disburse the first tranche in the amount of US$43M
in financing for the US$90M for the Blue Mountain Renewables 34 MW wind project in Jamaica
In addition, Prime Minister Christie welcomed the explicit commitment by Vice President Biden
to address the methodology and criteria utilised for graduation of Caribbean countries by his
Government as well as International Financial Institutions (IFIs) such as the World Bank, in
which the US has high-level representation.
In his presentation to the Summit, the CARICOM Chairman provided an overview of the
Regional energy situation and underscored the importance of moving sustainable energy and
the predictable supply and pricing benefits to the top of the list of investment priorities for the
Caribbean. He, however, indicated that the economies of the Region were characterised by
very limited fiscal space, and that in such instances, conditions imposed in agreements with IFIs
further restricted the space within which government could play. He highlighted some of the
progress made by Regional governments, including the adoption of National Energy Policies
and regional renewable energy targets under the Caribbean Sustainable Energy Roadmap
and Strategy (C-SERMS), as well as the recently approved CARICOM Energy Policy. . He
agreed that although the Region faced challenges, opportunities exist for development partners
to promote sustainable energy investment within the existing framework.
During the forum, there were interventions from a number of delegation heads, including The
Bahamas, Dominica, Jamaica, St. Vincent and the Grenadines, Trinidad and Tobago, Aruba, the
Dominican Republic, the European Union, New Zealand and Spain, as well as from multilateral
organisations such as the Inter-American Development Bank (IDB), the International
Renewable Energy Agency (IRENA), and the Organisation of American States (OAS).
The Summit was apprised of lessons from Aruba which had contributed to a significant reduction
of that countrys electricity tariff from an average of US38 cents per kWh in 2013 to US26
cents in 2014, through the increased penetration of solar photovoltaics and the introduction of
propane as a replacement from diesel in some of its generation facilities.
but reiterated the need for Partners to recognise and implement Regional strategies and initiatives. The
Region highlighted the fact that the strategies for financing and coordination required the support of
Development Partners but that Regional ownership was key to the process. In this vein, Trinidad and
Tobago advised of its intent to develop a regional financing mechanism, the Caribbean Energy Fund with
support from the IDB. Once operational, the Fund is expected to be used to leverage additional grant
funding and private investments in support of clean energy projects within the Region.
During the Summit, there were three panel sessions that focused on
Vice President Biden used the Aruba experience to make the case of what was possible for the
rest of the Caribbean through fuel-switching and highlighted potential opportunities for power
generation from natural gas within the Region. He said that an appropriate regulatory framework
and political will was needed in order to attract investments to diversify the power generation in
the Caribbean from oil to a mix that included natural gas and renewable sources was.
While noting the opportunities highlighted, Member States indicated that a number of situations,
including the fiscal circumstances of the Region, were prohibitive. In addition, the need for the
identification of global public resources to stimulate investments in the infrastructure required to
support alternative energy technologies and energy efficiency applications within the Region was
At the conclusion of the Summit, a joint Declaration was issued under the theme Fostering a Cleaner and
More Sustainable Energy Future in the Caribbean which can be accessed via the link.
noted. It was also noted that the natural gas option was only cost-effective in some countries and
that the Eastern Caribbean States were committed to developing their indigenous geothermal
resources to provide base load power.
CARICOM also raised concerns about the graduation of a number of Member States, which
have relatively high per capita GDP, thus limiting their access to grants and concessionary loans
for addressing sustainable development issues. In particular, it was recommended that bilateral
donors and IFIs use the vulnerability indices of countries rather than per capita GDP, as Member
States deem it as more a realistic reflection of their sustainable development situation. Member
States continue to lose significant portions of their GDP due to the frequency and intensity of
natural disasters. While Vice President Biden supported the recommendation, he indicated that
access would be limited to financing earmarked for the energy sector.
The Community pointed out that the Region was dedicating significant efforts and resources
towards improving its energy situation, through the support of a number of Development Partners,
PAST HAPPENINGS
achievement of renewable energy targets is demonstrably clear... We must now give momentum
to the process of translating our ambitious commitments into tangible action at the regional and
national levels. In this regard, the establishment of the Caribbean Centre for Renewable Energy and
Energy Efficiency (CCREE), which was endorsed by the Thirty-Ninth COTED in November 2014
is most welcome and we must now proceed with those details which will ensure its effective and
harmonious operations.
Minister Paulwell commended the Regions efforts in the area of sustainable energy development and reiterated
the sentiments expressed by the Deputy Secretary-General, CARICOM, that significant gaps remain and urged
the collective action as a Community in addressing the development of the energy sector and a reduction of the
Regions fuel bill, he stated that although sustainable energy solutions have made great strides in our region,
many significant gaps and barriers remain. In the coming decades, these barriers to renewable energy access,
energy efficiency, and reliable grid development and deployment must be overcome through a cohesive regional
effort coordinated and fully supported by each of us as Member States of CARICOM and I am confident that we
will achieve our objectives.
The most significant aspects of the day were the key decisions taken at Meeting by the CARICOM Energy
Ministers. The Meeting endorsed the criteria and selection process for the Host Country of the Caribbean Centre
for Renewable Energy and Energy Efficiency (CCREEE) Secretariat, clearly noting that the host country selection
would be done through a competitive bidding process.
During the first week of February 2015, the Caribbean Community (CARICOM) Secretariat
convened the Fifty-Fourth Special Meeting of the Council for Trade and Economic and
Development (COTED) (Energy) at its Headquarters in Georgetown, Guyana. The Meeting of
Officials preparatory to the Fifty-Fourth Special Meeting of the COTED (Energy) was held on 2
February 2015, prior to the Ministerial Session which was held on 4 February.
Her Excellency, Amb. Manorma Soeknandan, Deputy Secretary-General, CARICOM, in her
remarks, declared the meeting as an opportunity for advancing along the sustainable energy
path by developing reliable access to secure, affordable, clean
and sustainable energy services, stating that there is a broad consensus that our Regional energy
system, despite the progress already made, has to undergo significant additional changes in
order to urgently meet the demands for modern, secure, reliable,
efficient, cost effective energy services.
Ambassador Soeknandan also reminded the Meeting of the need
to utilise resources in a more effective and efficient way, noting
that Energy was about sustainable livelihoods and job creation
alike, which has led to it being identified as a crosscutting area
within the Strategic Plan [2015-2019] of the Caribbean Community
(CARICOM) for building economic resilience within the Region.
The keynote address was delivered by the Honourable
Phillip Paulwell, Minister of Science, Technology, Energy
and Mining of Jamaica and Chairman of the Meeting. He
highlighted the significance of the proposed establishment
of the CCREEE, noting that In adopting a CARICOM
Energy Policy, our commitment to the meaningful
The Honourable Phillip Paulwell, Minister of Science, Technology, Energy and
Mining of Jamaica and Chairman of the meeting
The Meeting also endorsed the CCREEE as the coordination hub for the implementation of regional renewable
energy and energy efficiency programmes, projects and activities, and recommended the selection of an Interim
Director, noting that the appointment shall not prejudice the competitive process for selection of an Executive
Director for the CCREEE. The Interim Director will be responsible for providing dedicated attention to and
managing the process of the establishment of the Centre, prior to the appointment of the Executive Director.
In addition to the aforementioned consensus reached on matters related to the proposed establishment of the
CCREEE, the Meeting also agreed on a number of areas for supporting sustainable energy development in
CARICOM, including:
+
The strengthening of the regional coordination mechanism that was being
implemented by the Energy Unit of the CARICOM Secretariat.
+ Adjustment of the scope of services that have been proposed by the CCREEE, to
ensure the necessary synergies and congruence with the work of the Energy Unit
of the CARICOM Secretariat, so that there is no duplication of efforts, following
completion of an analysis of the institutions involved in sustainable energy activities
in the Region.
+ Recommendations from the Fourth Caribbean Sustainable Energy Forum (CSEF IV)
and that it was imperative to pursue actions for promoting sustainable energy use
in the transportation sector.
+ That the Energy Unit of the CARICOM Secretariat, with the assistance of the CCREEE,
should identify opportunities and make recommendations for greater energy
efficiency in the regional transport sector.
+
Recommendations from the Workshop on Energy Information Systems and
Knowledge Management Systems.
+To explore possibilities for regional benefit under the Caribbean Energy Security
Initiative (CESI).
+ Areas of cooperation in energy and climate change, including emerging opportunities
under the Post-2015 Development Agenda, for recommendations to the Fifty-Fifth
Special Meeting of the COTED (Energy and Environment).
+ That Trinidad and Tobago, through the CARICOM Secretariat, would provide details
on the Caribbean Energy Fund (CEF), which would be considered and discussed at
the next Special Meeting of the COTED on Energy.
CARIBBEAN ENERGY QUARTERLY
PAST HAPPENINGS
The Honourable Robert Pickersgill, Minister of Water, Land, Environment and Climate Change, Jamaica delivering Opening Remarks
(Centre) is flanked by Ambassador Manorma Soeknandan, Deputy Secretary-General, CARICOM (R) and Dr. Douglas Slater, Assistant
Secretary-General, Human and Social Development, CARICOM Secretariat (L)
.Key Decisions
On conclusion of the Meeting, some key decisions which were taken by CARICOM Ministers with responsibility
for Energy and the Environment included:
10
PAST HAPPENINGS
During the CCETS there were several discussions and these were led by energy leaders and other
stakeholders within and outside the Region. The discussion topics included assessing the current energy
landscape, developing a workforce around green energy, financing clean energy technologies and
exploring how utilities in the Caribbean region and other areas are adapting to a cleaner energy economy
as they maintain profitable and more sustainable operations.
After the panel discussions several experts in the field of energy shared their thoughts and ideas on energy
education, economic growth and clean energy, buildings and energy efficiency, electricity generation and
delivery, energy assurance, base load electricity diversification and clean transportation.
The US Department of Energy also presented the Energy Transition Initiative: Islands Playbook, an
action-oriented guide with steps on how to organise for a transition towards an energy system which will
eliminate dependence on one or two imported fuels by relying on local resources. The Islands Playbook
also includes templates and worksheets that highlight lessons learned from the symposium in the USVI
and other areas.
Furthermore, the Clean Energy Solutions Center highlighted its resources, webinars, training and
expert assistance services, as remarks on climate change were provided by representatives of the US
Environmental Protection Agency.
Strategic partners of the CCETS and for future Caribbean energy initiatives included the CARICOM
Secretariat, The Caribbean Council, CARILEC, University of the Virgin Islands Caribbean Green
Technology Center, Institute of the Americas, New Energy Events, Organization of American States,
Virgin Islands Economic Development Authority, Virgin Islands Energy Office, and the Virgin Islands
Water and Power Authority.
Over two hundred delegates from CARICOM and other countries attended the first ever Caribbean
Clean Energy Technology Symposium which was held from 24-27 March 2015 in the United
States Virgin Islands (USVI). The symposium was co-hosted by the US Department of Energy,
Caribbean-Central American Action (C-CAA), and the government of the USVI in collaboration
with the Inter-American Development Bank (IDB).
The CCETS brought together sector experts of the Caribbean to share best practices as well
as their knowledge on clean energy efficiency and security for the Caribbean. Here, they were
able to work together to identify common goals and create action plans with deliverables that will
lead to increased access to energy efficiency and renewable energy technology in Caribbean
countries.
The Caribbean Community (CARICOM) Secretariat during the pre-symposium session made
a presentation on the strategies for Caribbean sustainable energy and variable renewable
energy (VRE) grid integration which was presented by Dr. Devon Gardner, Programme Manager
for Energy at the CARICOM Secretariat.
11
12
PAST HAPPENINGS
It was also highlighted that the OPIC was in advanced talks to finance a 20 MW solar farm
in Jamaica, and has already committed to financing Jamaicas largest private-sector
wind farm, a 36 MW facility in Malvern, St. Elizabeth Parish. OPIC is actively looking for
opportunities to support solar and wind energy projects in Jamaica and throughout the broader
Caribbean region.
Because of the reliance of Caribbean States on imported fuel the United States would be
working with the Region towards the establishment of an Energy Security Task Force. The Task
force would evaluate progress of the cooperation between the US, the Caribbean and Central
American countries with the aim of identifying concrete steps to advance energy sector reform,
regional integration and clean energy development.
13
Through the Summit it was revealed that the Caribbean Clean Energy Technology Symposium
(CCETS) was held in St. Thomas, USVI in March. There the Department of Energy of the
United States assembled energy stakeholders and experts within the Caribbean to explore
opportunities ranging from clean energy, efficiency, diversifying electricity generation, clean
transportation and energy education. Stakeholders were divided into working groups and these
groups would report on their progress at the 2016 Symposium to be hosted by Jamaica. Also,
it was indicated that the Department of Energy had launched a new Energy Scenario Planning
Tool building on its Energy Transitions: Island Playbook, to help island communities plan clean
energy projects that are most likely to attract investment, capitalize on local resources, and
meet the energy needs of consumers.
The U.S. Department of Energy (DOE) and the Ministry of Science, Technology, Energy,
and Mining in Jamaica signed a statement of intent that sought to advance shared interest
in sustainable energy. Potential areas that were identified for cooperation included energy
conservation and efficiency, energy infrastructure, micro grids and energy storage, fuel
diversification, and energy policy. Moreover, USAID was launching a complementary project
focused on the Eastern Caribbean that would develop new financing tools for energy efficiency
and renewables.
In conclusion, it was agreed that the tourism industry was the largest energy user in the
Caribbean. The Department of Energy, with its Pacific Northwest National Laboratory, and OPIC
are undertaking the Caribbean Hotel Energy Efficiency and Renewables (CHEER) initiative,
which supports projects to improve energy and water efficiency as well as the exchange of best
practices in the hotel and tourism industry.
14
PAST HAPPENINGS
The initiative seeks to increase collaboration among participating countries to:
15
The ECPA was launched at the 2009 Summit of the Americas in Trinidad and Tobago by President
Obama, in support of the Summit Declaration on Energy. It provides a medium for independent
states within the Western Hemisphere to collaborate on efforts aimed at addressing common
energy and climate change issues through collective programs, projects, and initiatives.
At the First Hemispheric Energy Ministerial held in April 2010, seven thematic areas for regional
collaboration were agreed on, namely: (i) energy efficiency; (ii) renewable energy; (iii) efficient
use of fossil fuels; (iv) energy infrastructure; (v) energy poverty; (vi) sustainable forests and land
use; and (vii) adaptation.
The Third ECPA Ministerial will be hosted by Chile in 2017.
16
PAST HAPPENINGS
President Barack Obama, via a video message, announced that the Seventh CEM would be
held in the United States in 2016, while Chinas Minister of Science and Technology Wan Gang
signaled that countrys intent to host the 8th CEM in 2017.
A key output of the Meeting was the launch of the second phase of the CEM (CEM
2.0) which is expected to play a key role in accelerating the transition to a global clean
energy economy. In an effort to facilitate this process, a CEM Steering Committee was
established to provide year round strategic guidance and leadership for CEM-related
initiatives, and to prioritise efforts aimed at deriving greatest impact.. Three new global
initiatives under the CEM which will address major technology and policy issues across
17
18
mechanisms for sustainable energy. Speaking in HighLevel Panel IV, Regional Strategies for Sustainable
The Vienna Energy Forum (VEF) 2015 themed Sustainable Energy for Inclusive Development
was held from 18-20 June 2015 at the Hofburg Palace, Vienna, Austria. The event brought
together participants from about 60 countries, including 24 ministers, as well as high-level
dignitaries and senior representatives of international and non-governmental organizations,
academia, civil society and the private sector. The event was organized by the UN Industrial
Development Organization (UNIDO), Austrian Federal Ministry for European and International
Affairs, International Institute for Applied Systems Analysis (IIASA), the UN Secretary-Generals
VEF 2015 convened against the backdrop of three crucial events set to take place in 2015:
Ethiopia, in July; the UN Summit for the Adoption of the post-2015 Development Agenda taking
(COP 21) to the UN Framework Convention on Climate Change (UNFCCC) to be held in Paris,
climate processes by emphasizing their multiple co-benefits, and by showcasing best practices
Sustainable Energy for All (SE4All) initiative and the Austrian Development Agency (ADA).
get more energy, food and water from the sea through
the Third International Conference on Financing for Development to be held in Addis Ababa,
place in New York, US, in September; and the 21st session of the Conference of the Parties
France, in December. VEF 2015 aimed to contribute to the post-2015 development agenda and
19
20
underlines that, to meet energy efficiency and renewable energy potential, scaled up action and investments
are needed in targeted areas, such as cities, and in key sectors such as industry, transport, power generation
and buildings. Key message five states that the nexus between energy, transport, food, water and health is
inseparable is an essential contributor to social progress and human wellbeing, and needs to be approached in
an integrated manner for adequate solutions. Key message six states that greater effort is needed to strengthen
the synergies between the three 2030 SE4All goals: (ensure universal energy access, double the global rate
of improvement in energy efficiency and double the share of renewable energy). Key message seven outlines
that much of the potential for greater impact in climate and development action goes untapped because of lack
of regulatory cohesion and lack of synergy between national and sub- national efforts. This message highlights
the need for regional approaches, such as regional centers, on renewable energy and energy efficiency, and
cohesive policy actions for lowering transaction costs and promoting economies of scale for regional approaches.
Key message eight states that sustainable energy and womens empowerment are mutually reinforcing goals
and that empowering women to become agents of sustainable energy will be key to achieving truly inclusive and
sustainable development.
development challenge for islands, and most electricity is generated from imported diesel fuel at a
high cost; thus, fuel import bills often exceed total export revenues. Conference participants from
the Caribbean Community (CARICOM) included Hon. Ian Liburd, Minister of Public Infrastructure,
Post Urban Development and Transport in the Federal Government of St. Kitts and Nevis, and Dr.
Devon Gardner, Programme Manager for Energy at the CARICOM Secretariat.
The outcome of the meeting was summarized through the Martinique Action Plan (MAP):
We, the participants of the Martinique Conference on Island Energy Transitions, have met in
Martinique on 22-24 June 2015 to advance the goal of unlocking and mobilizing the human,
financial and technical and natural resources that are needed to transition the energy systems of
small island developing states (SIDS) to a sustainable energy future.
We note that SIDS face significant economic and social challenges, including those arising
from climate change, energy price and supply volatility, and energy insecurity stemming from
21
22
the reliance on imported fossil fuels. In this context, we underline that many islands are global leaders in the
promotion of renewable energy but much remains to be done to reach set ambitions.
We further note that SIDS possess immense renewable resource potential, including biomass, geothermal, hydro,
marine, solar and wind. We recognize that rapid progress to diversify the energy mix by accelerating the costeffective use of domestic renewable energy sources, coupled with energy efficiency measures, is an essential
element of a safer and more prosperous future.
We recall the SIDS Accelerated Modalities of Action Pathway (SAMOA pathway), adopted in September 2014 at
the Third International Conference on SIDS, which stresses the importance of renewable energy and requests
a strategy for deployment of renewable energy resources, development of sustainable energy roadmaps, and
Encouraging the use of financial risk mitigation instruments and blended publicprivate financing structures to reduce the cost of capital.
We emphasise that renewable energy is one of the key means for mitigating climate change and strengthening
opportunity to showcase the progress in deployment of renewable energy to date and to renew commitments to
resilience against its impact. The upcoming UN Climate Change Conference in Paris (COP21) will be an
act in the years to come.
We recognise that the SIDS Lighthouses Initiative, launched at the UN Secretary-Generals Climate Summit
in 2014, provides a holistic framework for action to support the transformation of island energy systems, and
a means for communication through its Global Renewable Energy Islands Network (GREIN).We acknowledge
that partners of the SIDS Lighthouse Initiative continue to grow, a testament to the commitment of partners to
accelerate an energy transition in SIDS.
We recognize also that existing programs and strategies of SIDS inter alia, the Sustainable Island Initiative
(SIDS DOCK), Caribbean Sustainable Energy Roadmap and Strategy (C SERMS), and Pacific Islands Energy
Policy and Strategic Action Plan (PIESAP) provide orientation for the SIDS Lighthouse Initiative and other global
partnerships to support the transformation of island energy systems.
We note that public-private partnerships can be instrumental in unlocking the investment capital that islands
require to fully exploit their renewable energy potential and acknowledge that this exploiting potential will require
We acknowledge that community engagement and support of civil society is critical for the long term success of
the transition process.
We welcome the opportunity for dialogue in Martinique that has provided a platform for exchange of views and
experiences of many stakeholders and, based on this dialogue we recommend to:
23
Lighthouses events in Hawaii, Bangkok, and Cape Town [supported by USA, Japan and Germany, respectively]
in the lead up to COP21 to maintain the momentum for action.
24
renewable source
energy
within
St.
Gonsalves:
St. Vincent and the Grenadines has a population of 104,000 people and is 150 square miles,
Caribbean.
Later
studies
(1996-2012)
revealed
Saint Lucia. From a morphological point of view, St. Vincent shares similarity with the remaining
(1,234 m) in the north and extending to Mt. St. Andrew in the south. The island is entirely volcanic
required capacity.
lying 61o West or approximately 100 miles west of Barbados, and 13o North or 24 miles south of
Windward Islands and consists of a central axial range of mountains, starting from La Soufriere
and has six main volcanic centres located along its central axis.
Like a majority of CARICOM Member States, with the exception of Trinidad and Tobago, St.
Vincent and the Grenadines is heavily dependent on imported oil for its commercial energy
needs, including electricity generation. This oil dependency was most significantly reflected in the
historically high electricity rate of 40 US cents per kilowatt hour during 2014, which resulted from
an increase in the fuel surcharge passed unto customers due to damage caused by the floods of
December 2013 to hydropower plants in the island. St. Vincent and the Grenadines has a long
Despite the obvious benefits, the Government of St. Vincent and the Grenadines in recent years
history of hydroelectricity generation, dating back to 1952, which now constitutes around 20% of
made the decision to restrict further hydropower development on account of what was deemed to
be the significant social impacts to villagers that relied heavily on the rivers. Geothermal power
25
26
Guadeloupe captured the attention of France. It was in the interest of the Government of France
potential to provide electricity to the overseas departments via submarine cables, which, one the
to support the development of the geothermal resources in Dominica as the project has the
one hand, reduces their cost of electricity and, on the other hand, adds to the carbon reduction
strategy of France, in particular, and the EU, in general. Only one other OECS country, Montserrat
which is a British Dependency, has made similar progress. This has been mostly attributed to the
injection of public funds from the UK Department for International Development (DFID).
The lesson of the aforementioned experiences is that derisking of geothermal projects requires
public financing, which is frequently not available within our respective countries. An ability to
attract international public (donor) financing is therefore important for the replication of the more
successful of the OECS models, viz. Dominica and Montserrat.
Risk Fund of the CDB, IDB and JICA, which has the
potential to keep the return on equity for the project
A critical fact is that test drilling can account for up to 15% of the overall capital cost of the project
as St. Vincent that have very limited fiscal flexibility, the Government cannot absorb the risk and
project to attract the requisite grant funding caused the Government to approach its geothermal
and is typically required at a stage where the risk of project failure is still high. For countries such
overcoming the funding gap will require the injection of grants. An inability of the St. Vincent
development in an alternative way. The public private partnership (PPP) method seemed to be
a logical choice for achieving the capital injection that was necessary for financing some of the
early stage activities without the injection of capital from Government; this required, nonetheless,
some degree of public commitment to geothermal power development.
The Government of St. Vincent and the Grenadines invited proposals from private companies to
with the exploration was taken by the private developer. A Letter of Intent was signed in January
develop new geothermal sites through concessions, in which a majority of the risk associated
2013 between the Government and two private partners Reykjavik Geothermal and Light &
Power Holdings respectively. The Letter signaled the mutual intent of the Parties to proceed with
additional good faith negotiations designed to develop the Geothermal Project on the basis of an
investment decision, which will contain detailed estimates of capital and operating costs, target
tariffs, rates of return and rates of taxation, after the resource have been proven. This model
provides immediate access to technical expertise and financial resources and requires:
Under this arrangement, the geothermal consortium (Reykjavik Geothermal and Light & Power
Holdings) and the Government will incorporate a company under which the project will be
developed under an equity sharing arrangement. Governments equity portion will be financed
through concessionary loans, grants (where available), land contribution, and tax concessions.
Though there is cognizance that the injection of capital by the private investor will come at a
high cost on the basis of the fact that this is being done during the riskier phase of the project
development, there is optimism that the return on equity may be brought above the threshold
required by the investor if Government, with the support of its international development partners,
27
28
PERSONALITY PROFILE
Ms. Tomblin, the President and Chief Executive Officer
of JPS, comes with years of experience and industry
knowledge and an unpretentious love of what she
One of the proudest moments Ive had was when I was standing in
that room, in a line office which is out in the field and they went around
the room after saying, thats like a pledge of the allegiance, the vision
and mission of our company, and throughout the room, people were
able to not only repeat it, but really say how they contributed to it and I
just felt really a sense of alignment with that. Kelly Tomblin
Under Ms. Kelly Tomblins management, JPS is well on
its way to accomplishing a new energy revolution which
aims to find a solution for every Jamaican. Moving away
from the recent internal and external trust crisis, JPS
has spent some US$22M to replace basic infrastructure
technology systems and distribution automation which
Ms. Tomblin believes is continuing to position the
company as a market standard. Nonetheless, JPS is
not without its share of difficulties. Achieving public
satisfaction and proving that JPS is all about caring for
its customers has not been easy in a country where
there is a history of mistrust between consumers and
the utility.
Youve got to rebuild trust before you can be a true
energy partner and I think we are on the cusp of being
that true energy partner and having customers believe
that, the CEO stated.
Ms. Tomblin thinks that functioning under a regulatory
framework which does not support conservation and
29
30
the view that for the National Energy Policy to deliver on its goal of breaking oil dependency, there
is need for greater transparency in policy-making. She also believes that, once the policy decision
has been made, greater focus should be placed on their implementation; the policy to introduce
natural gas into the electricity generation mix of Jamaica, for instance, she felt was not being
sufficiently supported by strong policies to attract the requisite gas supply for Jamaica. Though
renewable energy within the Caribbean was not the cheapest option, Ms. Tomblin suggested,
she held the firm belief that the Region has a strong renewable energy policy. The task at hand,
she suggested however, is that there is need to ensure that the approach to renewable energy
investments was organized and efficiently managed.
Ms. Tomblin also spoke of the role for smart grids in contributing to the energy transition, stating
that JPS have begun playing it smart by implementing smart grid architecture, especially to
manage their large customers. The company, she says, intended to extend this facility to the entire
customer base on the grid. This, she believes, can be coupled with other major innovations to
help customers to manage their energy use more efficiently and may help to reduce non revenue
losses. She stated that the future energy needs of consumers in Jamaica and the Caribbean are
rapidly increasing, and innovation for customers, such as the use of mobile money to pay for
electricity services will become pivotal. This she says however, must be done so as to provide a
single end result: cost-efficient energy to the consumer!
And what of CARILEC, the Caribbean Association of Electric Utilities?
Ms. Tomblin, recently elected to the CARILEC Board of Directors, is optimistic that in this era of
energy transition, that organization can help to shape the transformation of the energy systems
within the Caribbean, especially serving as a real source of knowledge-sharing and operating
as a forum for members to assess and share industry best practices and regulatory policies. The
expectation is that this will allow other utility managers within the Region to explore the kinds
of innovation that Kelly Tomblin have started and perhaps, uproot the status quo and achieve
ground-breaking ideas and results.
As Ms. Tomblin said everyone wants cheaper energy and thats always the number one goal.
The maintenance of a balance that provides affordable energy through an efficient, stable, reliable
grid from secure, clean (and where possible), indigenous sources is no easy task.
31
Corporate Profile
JAMAICA PUBLIC SERVICE COMPANY LIMITED (JPS) is an integrated electric utility
company and the sole distributor of electricity in Jamaica. The Company is engaged in
the generation, transmission and distribution of electricity, and also purchases power
from five Independent Power Producers.
In April 2011, Marubeni Corporation entered into a Purchase and Sale Agreement with
Korea East-West Power (EWP), for joint ownership of majority shares (80%) in the
Jamaica Public Service Company Ltd (JPS). The Government of Jamaica and a
small group of minority shareholders own the remaining shares. JPS currently has
approximately 606,654 customers who are served by a workforce of approximately
1,690 employees.
The Company owns and operates: 4 power stations, 9 hydroelectric plants, 43
substations and approximately 14,000 kilometers of distribution and transmission lines.
Along with the provision of electricity, JPS is a key partner in national development. The
company has a vibrant corporate social responsibility portfolio and makes significant
contributions in the areas of education, health and sports. The company also has a
strong environmental focus and carries out its operations in an environmentally
friendly manner.
The Office of Utilities Regulation (OUR), is the independent regulatory agency with
responsibility for the electricity sector.
32
REETA PROJECT
PROFILE
One of the first steps of BEEP was to establish a clear policy from the Management of the Secretariat
and this has been published in the form of posters which highlight the Energy Vision of the organisation.
The Project Officer with responsibility for utilities has been mandated by the Secretariat to fulfil the role
of Energy Manager, who will be charged with actively addressing opportunities to improve the utilisation
of energy. Moreover, at the same time, an energy audit was undertaken to update the management team
on the issues and of opportunities to further improve the utilisation of energy through investments in more
energy efficient equipment and on-site electricity generation.
The key findings of the energy audit included the following
33
The CARICOM BEEP is currently engaging with other development partners, apart from the German
Government, to explore opportunities for funding the energy efficiency and renewable energy elements
of the overall project.
In terms of energy efficiency, the project will implement
34
CEP PROFILE
35
36
FEATURE ARTICLE
Over the past nine months, the establishment of the Caribbean Centre for Renewable
Energy and Energy Efficiency (CCREEE) has been an agenda item in the majority
of meetings related to energy within the Caribbean Community (CARICOM). But The
CCREEE, which has been designed to address the implementation deficit in the
CARICOM sustainable energy sector and to support and coordinate the execution of
regional Renewable Energy (RE) and Energy Efficiency (EE) projects and activities,
would be a new regional institution. As a result, concerns have been expressed around
whether the CCREEE can add value to a region where: (i) Member States, most of which
face challenges with regard to debt and limited fiscal space, are already inhibited in
their ability to service the cost of existing regional institutions; and (ii) there are already
an increasing number of stakeholders assisting Member States in improving their
energy situations.
37
38
39
40
PROGRAMME BRIEFS
The CARICOM region wastes more than half the available energy in the imported fuels, which
results in relatively high energy consumption per unit of GDP. The Energy Programme has
prioritized activities toward the systematic improvement of energy intensity and is focusing on
the electricity sector, to include
41
42
43