8 months ago
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A dozen proposals are currently being evaluated by the Jamaican government’s Generation Procurement Entity, GPE, for the supply of 100 megawatts of renewable energy to the national power grid.
It forms part of steps by the Jamaican government to reduce the costly importation of the fossils that fuel electricity generation. The plan involves generating half of the country’s energy from renewable sources by 2030 through the addition of wind and solar power.
“Twelve proposals were received, of which 11 were distinct, with one offering an alternative proposal,” said the GPE in response to Financial Gleaner queries on the outcome of the tender that was put out last September.
The alternative bid involves one entity offering a main proposal with wind or solar and the alternative of adding energy storage to the mix.
The bids, which were extended from the initial deadline in February to April 5, were opened last Friday in the presence of some 30 stakeholders. It’s the first renewable bid session since 2015, when Government sought 37MW of renewable power. Prior to that, in 2012 ,the Government requested 115MW of renewable energy but only got bids for 78MW.
The GPE said it would continue combing through the documents this week, then report on its review to the agency’s board. The winning bid, or bids, will be announced after the board’s evaluation, said the GPE spokesperson.
Winning bidders are required to start construction of their systems within 240 days after the announcement. Successful applicants are required to make a construction security deposit of US$150,000 per MW that must be paid within 30 days prior to the commencement of construction, the GPE said, in response to queries from bidders.
“This short deadline doesn’t consider the time to obtain all the necessary permits, reach financial close, order heavy equipment with long lead time, nor the seasonal weather constraints that can prevent bidders to start construction,” said one concerned bidder, as notated by GPE at the bid opening.
The GPE replied that it would not adjust the timeline.
Another round of proposals is slated to begin “during the course of 2024” for 168MW of additional renewable projects, stated the GPE. This will move the island closer to generating 50 per cent of electricity from clean energy sources.
The current round for the net supply of 100MW requires successful bidders to build, own and operate their facilities. They will operate as IPPs, or independent power providers, that supply electricity generated to the national grid under contract to exclusive power distributor Jamaica Public Service Company.
There are currently nine IPPs in Jamaica, according to the GPE, four of which are providers of renewable energy, namely, Wigton Windfarm, 62.7MW; Content Solar, 20MW; BMR Energy, 36.3MW; and Eight Rivers Energy Company Limited/Paradise Solar PV Park, 37MW. The other IPPs are New Fortress Energy at 94MW; South Jamaica Power Limited, 194MW; and Jamaica Energy Partners at a combined 250MW, incorporating West Kingston Power Partners at 65.5MW, Jamaica Private Power Company at 61MW, and Doctor Bird Power Station at 124MW. Jamaica Energy Partners operates as the holding entity for the three operating subsidiaries and is itself not an IPP.
Separate from the nine IPPs, the power provider JPS also operates renewable energy plants that it owns.
Imported fossil fuels which includes petroleum and liquefied natural gas account for 88 per cent of the total energy mix, with renewable energy making up the other 12 per cent.
Half of the renewable energy capacity is generated from wind, with solar and hydro each accounting for a quarter.
Renewable projects once fell under the ambit of the Office of Utilities Regulation, but that function was transferred to the Generation Procurement Entity, which was created under the amended Electricity Act of 2015, and re-established in January 2020.
The GPE is led by Barrington Jackson as the chief technical expert and chaired by Lennox Elvy. Its remit is overseeing the procurement of new generation capacity for the electricity sector in Jamaica.
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