9 months ago
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Wigton Windfarm Limited, whose energy operations was been built out in three phases over time, has got on extension on its power supply contract with Jamaica Public Service Company, JPS, while it works to tie down financing for new equipment.
It’s also awaiting the approval of its upgrade programme from the utilities regulator. The cost of the project was not disclosed.
The replacement of aged wind turbines for Wigton I was formerly projected for this month, March, but while the company says it has identified suppliers for the new equipment, it’s still in talks to secure the funds needed for the purchase.
The 23 wind turbines installed under Wigton I two decades ago had the capacity to deliver 20.7 megawatts of power.
Wigton II has a capacity of 62.7 MW, while Wigton III has a capacity of 24 MW. Rose Hill, Manchester-based Wigton Windfarm operates 44 turbines in total under the three phases.
As exclusive distributor of electricity, JPS generally issues 20-year contracts to independent power providers for the supplies they sell to the national grid. The Wigton I contract is at an end, but the wind farm operator got a three-year extension that is structured as an addendum to the existing arrangement. The extension takes effect as of April 1, based on an agreement struck with JPS in mid-February, Wigton said in a market filing.
Wigton Managing Director Earl Barrett said the original agreement provided for an extension of up to six years, and that the early signals from the light and power utility had been favourable.
“Based on the position of JPS, and based on the condition of the turbines, JPS agreed that they would not unduly say no or put any impediments in the way,” Barrett said, explaining that while the contract allowed for the extension, it was not automatically granted.
As to the replacement plan for the turbines, he said Wigton had started the process of repowering Phase I in 2017, but only got approval from the ministry in charge of energy for the full programme in 2022.
Now it’s awaiting the sign-off of the Office of Utilities Regulation.
“We got past that hurdle, but we’re still in a process of negotiation with the OUR, which regulates all utilities. They have to sanction it,” Barrett said.
The aged-out turbines are getting ever harder to maintain and can be replaced by fewer units that can crank out two and a half to three times the power of each of the current Wigton I units.
The wind farm operator expects to complete the repowering programme long before the extension period comes to an end, but said the period was negotiated as a ‘cushion’.
In securing JPS’s agreement for the extension, Wigton got an independent assessor to certify that the Wigton I turbines could continue to operate beyond their documented useful life.
“We got the report, we shared it with JPS, got the extension and shared it with the OUR. This is not to say that the regulator has three years to give us a decision. What we want to see is that within three years, everything including installation should be done,” Barrett urged.
In other happenings at the company, Barrett said it was among the bidders for the Jamaican government’s request for the supply of 100MW of renewable energy capacity; while consideration is being given to the usage to which the land purchased for US$1.55 million at Ferry Pen in Kingston will be put.
The one-acre parcel is located within the industrial commercial park called Kingston 876.
“A team of experts is preparing guidance as to how we should proceed,” said Barrett, but he also confirmed the usage would relate to renewables.
The one-acre plot is too small for the large-scale installation of wind or solar power generation, but the location is directly in the path of southeasterly winds coming off the Kingston Harbour and straight across Riverton City, presenting no obstruction for the efficient operation of a small, one-megawatt wind turbine combined with a small commercial-scale solar power array, one expert opined.
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