Identifier
Created
Classification
Origin
08KINGSTON286
2008-04-04 12:09:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kingston
Cable title:  

JAMAICA: ELECTRIC ABOUT RENEWABLE ENERGY

Tags:  ENRG SENV ECON ETRD JM XL 
pdf how-to read a cable
VZCZCXRO3501
RR RUEHGR
DE RUEHKG #0286/01 0951209
ZNR UUUUU ZZH
R 041209Z APR 08
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 6159
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHSJ/AMEMBASSY SAN JOSE 1979
RUEHBR/AMEMBASSY BRASILIA 0099
RUEHCV/AMEMBASSY CARACAS 0524
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 KINGSTON 000286 

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CAR (JTILGHMAN)
WHA/EPSC (VDEPIRRO)

SANTO DOMINGO FOR FCS AND FAS

E.O. 12958: N/A
TAGS: ENRG SENV ECON ETRD JM XL
SUBJECT: JAMAICA: ELECTRIC ABOUT RENEWABLE ENERGY

REF: A. KINGSTON 263


B. KINGSTON 277

C. 07 KINGSTON 1614

SUMMARY
-------

UNCLAS SECTION 01 OF 02 KINGSTON 000286

SIPDIS

SENSITIVE
SIPDIS

STATE FOR WHA/CAR (JTILGHMAN)
WHA/EPSC (VDEPIRRO)

SANTO DOMINGO FOR FCS AND FAS

E.O. 12958: N/A
TAGS: ENRG SENV ECON ETRD JM XL
SUBJECT: JAMAICA: ELECTRIC ABOUT RENEWABLE ENERGY

REF: A. KINGSTON 263


B. KINGSTON 277

C. 07 KINGSTON 1614

SUMMARY
--------------


1. (SBU) Minister of Mining, Energy and Telecommunications Clive
Mullings is focusing the country's attention on support for
renewable energy (reftels). A few ethanol /biofuel projects are
currently being negotiated by the Government of Jamaica (GOJ),and
the Office of Utilities Regulation released a Request for Proposals
(RFP) for renewable energy specifically to reduce the country's
dependence on imported petroleum. The RFP calls for increasing the
percentage of energy supplied to the national grid from renewable
energy sources from the current level of 5.5 percent to 10 percent
by 2010 and 15 percent by 2015. This goal is in line with the
Minister's recent pledge at the Washington International Renewable
Energy Conference (WIREC).

--------------
Renewable Energy is the "End Game"
--------------


2. (SBU) Addressing a group of investors on March 19 at a local
brokerage house, Mullings said Jamaica needs to focus on energy
security and reducing the country's dependence on imported
petroleum. Mullings stressed that the "end game" had to be
renewable energy. Mullings outlined a number of renewable projects
that the country was pursuing to solve the current energy crisis.
Chief among these were the roll out of E-10 (ethanol) at local pumps
by the end of the year; the conversion of waste to energy; the
expansion of the 20 megawatts Wigton Windfarm; and the possible
creation of a solar panel manufacturing plant funded by the Canadian
government and a Chinese firm. Mullings said that by 2010 the
country should reach its target of deriving 10 percent of its power
from renewable energy, a pledge he recently made at the WIREC
Conference. Mullings reiterated the importance of focusing on
renewable energy and moving away from being a country of one-off
test projects to a country that implements projects on a wide
scale.

--------------
Diversify, Regardless of Oil Prices
--------------


3. (SBU) In response to how Jamaica would finance the projects, the

Minister said it was crucial for technological innovation and
private sector investors to be the driving force for solutions. He
said that with a number of developed countries approaching the
maximum level of emissions under the Kyoto Protocol, a significant
amount of capital was actively seeking renewable projects in
developing countries to derive carbon credits. Mullings suggested
that even if oil fell to USD 20 tomorrow, the focus would still be
on renewable energy.


4. (SBU) Mullings said that although Jamaica has had some positive
results in its ongoing oil exploration, any potential discoveries
would not deter the plan to diversify Jamaica's energy supply.
Mullings said the rise in oil prices has reduced the demand for
electricity on the island. He suggested the rise in oil prices has
been mitigated by the benefits derived from the PetroCaribe
Agreement with Venezuela. As oil prices rise above USD 100, over 50
percent of the value of oil purchased from Venezuela is converted to
a 20 year, one percent loan.

--------------
Ethanol and Biofuel
--------------


5. (SBU) A Brazilian company, Infinity BioEnergy was selected April
2 by the GOJ to take over Jamaica's indebted sugar estate assets
(reftel B). Infinity BioEnergy, a major producer of cane-based sugar
and ethanol, would likely take over 70,000 acres under the deal. In
another project, the U.S. firm Biomass Investment Group (BIG) hopes
to assume public debt in exchange for inactive land that was once
used for sugar cane production. BIG proposes to plant e-grass on
the land for use as a feedstock for ethanol production. BIG is
hoping to secure 30,000 acres from the GOJ, believing each parcel of
10,000 acres could grow enough feedstock to generate 75 megawatts of
power in Jamaica.

--------------

KINGSTON 00000286 002 OF 002


Renewable Energy RFP
--------------


6. (U) The Office of Utility Regulations released its RFP seeking
proposals to supply renewable energy to the national grid on April

1. The scale of the projects must be at least one megawatt, and
firms must be able to build, own and operate (BOO) their generation
facility for the next 20 years. The GOJ is seeking at least 73 MW
of capacity to be supplied to the grid on a continuous basis.
Proposals can be submitted in any category of renewable energy
generation including: hydro, wind, biomass, and solar.

--------------
Culture of Conservation
--------------


7. Mullings also has addressed the issue of conservation in Jamaica,
suggesting that the country needed to build a culture around
conservation, with the country's tourism industry being a major
player. Jamaican hotels recently implemented a new per- room tax
to help defray the cost of rising fuel prices (reftel A).
JOHNSON