Población

In 2008 the rapid increase in oil prices set new benchmarks for crude and have exacerbated the impacts of imported fuels and the oil bill on Jamaica’s economic development. In 2008 when oil prices approached $150/bbl Jamaica’s oil bill reached a historic US$ 2.7 billion even though the Nation’s crude consumption remained around 60,000 barrels of oil per day (petroleum importation in 2008 was approximately 29.1 million barrels and 20.5 million barrels in 2010).

Of the total volume of petroleum imported, the electricity sector consumed the largest volume (30.8% or 6,529,445 bbls) for the generation of power. Local road and rail transportation was the second largest category of consumer utilizing 28% of the total imports or 6,012,476 bbls. Bauxite and alumina processing was the third largest consumers of petroleum for heat and power at 18% or 3,752,927 bbls of oil. The last significant category of petroleum consumers was shipping and aviation at almost 17% (3,513,596 bbls) see Figure below.

Figure 3: Petroleum Consumption by Activity 2011.

Road & Rail Transportation Aviation & Shipping Cement Manufacturing Other Manufacturing Electricity Generation Bauxite/Alumina Processing Sugar Manufacturing Residential Petroleum Refining Other.

Petroleum Consumption By Activity (Bbls) 2011

Diagnosis of Generation in Latin America & the Caribbean: Jamaica

Source: Energy Economics and Planning Unit, Energy Division, Ministry of Science, Technology, Energy & Mining, 2012.

The energy demand in the bauxite and alumina industry in Jamaica has historically influenced a high-energy intensity index of 15,400 (EII = BTU/$US 1 unit of output) for Jamaica when compared with most developing countries. The bauxite sector has determined that survival of the sector require greater energy efficiency and fuel diversification away from oil to natural gas or coal as the necessary strategy to reduce inefficiency and energy cost.

In 2008/2009 imported fossil/petroleum fuels accounted for 91% of the overall energy mix (or 22.1 million barrels in 20095), while renewable resources accounted for approximately

9% (electricity and other demands). Approximately 5% of the electricity supply mix came from renewable sources for power generation namely 4% from hydro, 1% from wind and a smaller amount from biomass for both heat and power6 in 2008. By 2010, the oil import

bill declined to approximately US$ 1.67 billion with the decline in oil prices however by 2011 imported fossil/petroleum fuels accounted for a higher proportion of the energy mix. Petroleum rose to 95% of Jamaica’s overall energy mix (though a smaller volume of 21.2 million barrels in 20117 not including lubricants and asphalt which are non-energy

products) at a cost of US$ 2.24 billion. In 2011 renewable resources accounted for approximately 3% of the total national energy mix (see table below). Most of the renewable sources came from wind, hydro, fuelwood, bagasse, solar and ethanol (used in the transportation sector)8.

Table 3: Jamaica's National Energy Mix (2011)

SOURCE BOE BOE % MIX

Petroleum Imports 21,214,652 95.3 Coal Import 327,000 1.5 Renewables Hydro 94,000 Wind 57,000 Charcoal n/a Bagasse 570,000 Fuelwood n/a 721,000 3.2 GRAND TOTAL 22,262,652 100.0

5 _{Ministry of Energy and Mining, Oil Import Statistics, 2009} 6 _{Jamaica National Energy Policy 2009 - 2010.}

7 _{Ministry of Science Technology, Energy and Mining, Oil Import Statistics, 2012.} 8_{Renewable Energy Policy 2009}

Diagnosis of Generation in Latin America & the Caribbean: Jamaica

Source: Energy Economics & Planning Unit, Energy Division, Ministry of Science, Technology, Energy & Mining, 2012.

Of this renewable energy content the sources were 13% from hydropower, 7.9% wind and 79% from bagasse9_.

Table 4: Renewable Energy Contribution to National Energy Mix

RENEWABLES

GRAND TOTAL

Source: Energy Economics and Planning Unit, Energy Division, Ministry of Science, Technology, Energy & Mining, 2012.

In 2011, annual electricity generation alone from renewable energy sources accounted for approximately 5.6 % of total system generation with contributions of 3.5% and 2.1 % from hydro and wind respectively10_{. By the time of this statistic, both JPS and Wigton} Wind farm Ltd added 3 MW and 18 MW of wind power respectively.

Table 5: Jamaica's National Energy Sources to the Grid (2011)

SOURCE MW MWH % ENERGY

JPS & IPPS (Fossil Fuels) 920 4,136,847 94.5

Cement Company (Coal) n/a

JPS Hydro 21.3 152,000 3.5

JPS & Wigton Wind Farm 41.5 91,000 2.1

Solar PV n/a n/a

Sugar Industry – Bagasse n/a n/a

GRAND TOTAL 982.8 4,379,847 100.0

9 _{Source: Energy Economics and Planning Unit, Energy Division, Ministry of Science, Technology, Energy &}

Mining, 2012.

10_{Office of Utilities Regulation, RFP Document for Supply of up to 115 MW of Electricity Generation Capacity}

from Renewable Energy Based Power Generation Facilities on a Build, Own and Operate (BOO) Basis. Document No. ELE2012003_RFP002

Diagnosis of Generation in Latin America & the Caribbean: Jamaica

Source: Energy Economics and Planning Unit, Energy Division, Ministry of Science, Technology, Energy & Mining, 2012.

Since 2012 Jamaica Energy Partners (JEP) added 65 MW of Heavy Fuel Oil, Medium Speed Diesel generation to the grid through its West Kingston Power Producers Ltd (WKPP), increasing its share from 124 MW (74 MW + 50 MW) 184 MW. Both JEP and WKPP combined constitute 20 % of the generation market and second largest source of power in Jamaica. Between this new generation source and the continuity of the high proportion of imported fossil fuels, Jamaica’s national energy security has been further compromised over the years in sheer volume and financially especially during the period in which the international petroleum market price increased by as much as US$ 150/bbl. JPS projects however that between the addition of new hydropower (6.3 MW) and the Request for Proposal (RfP) for 115 MW of commercial scale renewable projects, that Jamaica will be able to achieve 10% capacity on the grid from renewable from relatively low cost renewable energy power11_.