Setback in procuring new electricity plants

The Electricity Sector Enterprise Team (ESET)  says it has had a setback in the time frame  to procure new electricity plants aimed at reducing the cost of  energy .

The ESET was to initiate procurement next month, but that has been pushed back to the first quarter of  next year.

The announcement comes two weeks after the team received proposals from investors willing to build new plants and sell electricity to the national grid.

“Pending the cancellation of the EWI license and the beginning of the ESET discussions  in July and August, the Minister of Finance requested an extension to January.

So we have come up with a proposal to Cabinet that was submitted last week. Now we are going with the due diligence process. The committee has continued with meetings looking at what are the next steps based on these proposals to ensure that the country gets the best options for fuel and prices for energy,” said William Mahfood, the private sector member of the ESET.

The ESET is considering proposals from three entities; the Jamaica Public Service (JPS), and bauxite companies -  Jamalco and Alpart. These entities have signaled an interest in building new power plants between 2016 and 2018.    

The move to get new electricity generating plants to reduce the cost of  energy is one of  the growth enhancing reforms being undertaken as part of  the four-year economic reform programme carried out with the aid of  the International Monetary Fund (IMF).

And Mahfood is supporting his colleague members' assertion that the new power plants will result in a 30 percent reduction in electricity prices despite the JPS saying it will not commit to the target.    

Meanwhile, changes to the Electricity Act have been delayed.
The updated Act was scheduled to be passed in Parliament this month.    

However, the amendments have been delayed until January and are not expected to become effective until March next year.    

The amendments to the Electricity Act are to facilitate greater ease in bringing new generating capacity to the grid.