The Jamaican consortium, Amorview-Tank Weld, which has made a joint bid for the 360-megawatt energy generating capacity, is pushing its case, suggesting that it could cut electricity costs by 25 percent.
Chris Bicknell, the CEO of Tank Weld, , says his consortium has already secured funding for two power plants that can use either expensive heavy fuel oil or Liquefied Natural Gas (LNG).
“We can start our project immediately without the difficult task of securing a future LNG supply and on that basic efficiency gain we can save the country 70 percent of the potential savings which will equate to US$250 million per year in fuel costs”
The gains would be garnered just from the efficiency of the new plants, even if they use the same heavy fuel oil used by the light and power company - the Jamaica Public Service (JPS) to produce electricity. He says the savings will cut electricity costs by 21 percent, with added savings to come when LNG supplies are secured.
“One we have the natural gas and automatically switch to the natural gas we then save a further US$50 million per year, you are looking at a total potential 24 percent in energy savings across the board."
He said close to 3,000 jobs will be created at the peak of the construction period slated to run from 18 to 24 months.
The project now awaits approval from the Office of Utilities Regulation (O.U.R.) of the preferred bidder.
Five bids were received for the project, which seeks to find new generating capacity to replace outdated electricity-generating units and cut the cost of electricity to consumers.