Jamaica's Sustainable Island Opportunities for Scottish Businesses

Jamaica
Sustainable
Island
Market
Opportunities
Presented by: Sameer Simms
Date: September 04, 2015
Edinburgh Centre for Carbon Innovation
High School Yards, Edinburgh, EH1 1LZ, Scotland

Contents
Introduction ............................................................................................................................................3
Background of Jamaica ...........................................................................................................................6
Electricity Generation ...........................................................................................................................13
Renewable Energy ................................................................................................................................17
Energy Efficiency and Conservation......................................................................................................26
Transport Sector ...................................................................................................................................31
Waste Management .............................................................................................................................37
Water Resource Management..............................................................................................................40
Sustainable Buildings ............................................................................................................................44
Consultancy...........................................................................................................................................46
Specific Exportable Opportunities ........................................................................................................47
Funding Streams Available....................................................................................................................51
Strategies for Energy Diversity, Efficiency, and Conservation..............................................................54
Conclusion and Recommendations ......................................................................................................56
Appendix ...............................................................................................................................................57

Executive Summary
Various sectors in Jamaica are assessed to determine opportunities for private sector participation. The
sectors assessed are energy, water, waste, transport, buildings, and consultancy. For each area, the
relevant policies are discussed along with the current state (condition), implementations by the
government and private sectors, potential for development, and opportunities for investment by
businesses in Scotland.
Jamaica has one of the highest electricity prices in the world. This factor as well as high vulnerability to
global oil price spikes stemming from the high dependence on foreign oil, has created a drive to increase
the use of cheaper and indigenous energy sources while increasing energy efficiency and conservation.
The government has created an environment that encourages investment which is evidenced by the
increasing popularity of photovoltaic systems, fluorescent and LED lighting, and solar water heaters and
the development of a wind farm, and recent contracts for the development of a solar photovoltaic farm
and wind farms. The high attention placed on this industry means that Scottish businesses will face
strong competition in general (unless competitive advantages can be identified) but it is encouraged
that opportunities be pursued. Micro-hydro presents an area of good opportunities due to receiving
less attention and having potential but environmental impacts must be minimal for proposed
developments. Photovoltaic systems, solar water heaters, energy efficient lighting, power/energy
monitors, timers, and occupancy sensors are available on the market and Scottish businesses providing
these devices must have a lower cost or financial model competing advantage to survive.
The island is often called the land of wood and water, however, it is probably more suitable to be called
(based on recent drought spells) the land of wood and no tap water. This situation has created a need
to tap into more water resources and increase water use efficiency and conservation. The government
has a long history working with the private sector on projects to improve water supply and treatment.
The opportunities for businesses which provide water use audits, water-use-reduction devices, and
water extraction, supply, and treatment are immense.

Waste treatment and disposal presents another area full of opportunities. There is an urgent need to
upgrade the disposal sites across the island to state of the art landfills. Recent fires at the largest
disposal sites have brought significant attention to the waste industry and so now is an opportune time
for Scottish businesses with expertise in landfill development and management. There is strong
potential for businesses specialising in waste-to-energy facilities utilising solid waste and liquid waste
to be successful in Jamaica. Biogas plants using animal manure and residential wastewater are not
popular and so businesses with the relevant capabilities are encouraged to propose projects. The
government needs to finalise its position on waste treatment, especially composting which can reduce
methane production at disposal sites, to increase investor confidence.
The transport sector presents opportunities mainly in fleet management, driver training, biodiesel
production, and bioethanol production. Driver training and fleet management are services with good
potential for success among manufacturers and service companies battling high diesel and gasoline
prices. Hydrogen, hybrid, and electric vehicles currently have limited potential. These technologies are
cost prohibitive and requires massive (and unlikely) government incentives for large-scale uptake.
The opportunities in building are uncertain and possibly limited. The sustainable materials used in
Scotland will have to be tested in Jamaica’s climate and be durable enough to survive hurricanes. Also,
the large distances between the two countries can make for an expensive shipping cost. A solution is
to establish sites in Jamaica that creates the materials but testing must be done to ensure suitability.
Consultancy services are provided by local, regional, and international companies and experts. This
industry will be a competitive one for interested Scottish companies unless niche markets can be found
and of course competitive advantages are present.

Introduction
Scotland has an impressive track record in developing various faucets of sustainable development and
living. Along with other countries, Scotland has been pioneering the implementation of various
technologies in an effort to reduce waste and increase system efficiencies. A strategic approach has
been taken which covers policies, regulatory environment, innovation, financing, and behavioural
change. The recent developments, involving renewable energy, efficient energy usage, and approach
to financing and operating, in the islands show signs of potential for implementation in islands across
the globe. The exportation of expertise and products facilitating sustainable island development can be
used as a tool to strengthen relationships between Scotland and island nations like Jamaica and other
Caribbean islands. By exporting, Scottish companies stand to benefit from a larger customer base and
increased profits while island nations stand to benefit from access to new technologies and investment.
While all island nations are arguably unique, they often face similar problems due to the smallness of
their size. The island is classified as a small island developing state (SIDS), a group of 52 low-lying coastal
countries that share similar sustainable development challenges such as limited resources,
susceptibility to natural disasters, excessive dependence on international trade, and fragile
environments.
This report seeks to analyse the state of various sectors in Jamaica and assess the potential
opportunities available for relevant Scottish companies and expertise. The industries chosen were
energy, transport, waste management, water management, sustainable buildings, and consultancy.
Each sector was assessed for weaknesses, the supportive environment for private sector participation,
and the potential for a viable market. Recommendations are made based on the information presented
in this report. The involvement of relevant Scottish companies in product and knowledge transfer to
Jamaica stands to benefit both parties. The access to new technologies and expertise can help Jamaica
to achieve its sustainable goals and the Scottish companies stand to increase their target market and
profits.

Background of Jamaica
Jamaica is the largest English speaking small island developing state (SIDS) located in the Caribbean.
The island is well known for athletics (dominance in sprinting), white sandy beaches, music (reggae and
dancehall), food, and its culture. The island has a population of over just over 2.7 million people mainly
of African descent with Chinese, Indian, and European descent forming the major minorities.
The Economy
The island, with land area of 10,991 km2
, has a GDP of £9.22 billion (2013 estimate according to the
World Bank) and GDP per capita of capita £3,392.21. The largest contributors to the economy are the
industry (29.4%), agriculture (6.5%), and service (64.1%) sectors. In 2010, Jamaica consumed about
60,000 barrels of oil per day which were obtained mostly from Venezuela to provide electricity, fuel for
transport, synthetic oils, and other products. In 2013 Jamaica spent approximately £1.4 billion on fossil
fuel imports alone while only earning £1.01 billion from all exports. The value of all imports was £3.94
billion. Jamaica spent more on purchasing foreign oil alone than what it made from exports. The high
level of imports lead to a trade deficit of £2.94 billion.
Figure 1 - Petroleum Consumption by Activity
(Source: National Energy Policy 2009-2030)

Policies and Sustainable City Initiative
There are several policies supporting the drive to a low carbon future for Jamaica. The National
Development Plan, otherwise called Vision 2030, envisions Jamaica with empowered citizens, a secure,
just, and cohesive society, a prosperous economy, and a healthy natural environment. It is the
overarching strategic plan outlining the steps towards achieving sustainable development.
Energy
The National Energy Policy outlines the role the energy sector will play and stemming from it are several
sub-policies covering the role of different subsectors in achieving sustainable development. The
strategies being used makes for a favourable policy environment that encourages investment in
renewable energy, energy efficiency, energy conservation with regards to electricity production and
consumption as well as the transport industry. The Regulatory Policy for Addition of New Generating
Capacity to the Public System 2006 makes it possible for independent power producers to set up power
plants and supply electricity to the grid at prices which allows a profit to be made whilst ensuring that
end users pay a reasonable price. While anyone can apply for a license to produce electricity, only the
Jamaica Public Service company is allowed to distribute electricity.
Waste and Biomass
The National Solid Waste Management Policy, among others, state objectives relating to waste
minimisation and waste processing. According to the policy document, the government will
provide incentives to encourage the private sector to invest in enterprises geared towards
developing and upgrading disposal sites to landfills, waste processing, and converting waste to
energy. The National Energy from Waste Policy outlines how the government will achieve its
goals to create an economic infrastructure, use the most appropriate and environmentally
friendly technologies, create partnerships between the energy and waste management

sectors, and develop a well-defined institutional, legal, and regulatory framework to support
the sustainable generation of energy from waste. The National Biofuels Policy has similar goals
relating to the use of biomass for energy production. Emphasis is placed on the production of
bioethanol from sugar cane, biogas from animal and domestic waste, and the production of
biodiesel (castor beans and jatropha have been selected for field trials). The policy outlines
creating an enabling environment for private sector investment and public-private sector
partnerships as a strategy for creating economic, infrastructural, and planning conditions
conducive to the sustainable development of the biofuels industry.
Transport
The National transport Policy envisions providing infrastructure and services in an integrated
and coordinated manner while minimising user cost and optimising efficiency. The government
welcomes private sector participation in:
 the planning, financing, designing, construction, and maintenance of the road network,
growth and development of ports, terminals, and infrastructure services
 On-street parking management
 Construction and operation of off-sheet parking facilities
 Traffic management measures
 Operation of vehicle fitness testing stations
 Provision of rail services
 Provision of services in the maritime transport sub- sector

Water
The National Water Sector policy speaks about the actions the government will take regarding
the sustainable management of the water resources. The recent spells of drought has led the
government to further invite the private sector to assist in improving the efficiency of the
provision and consumption of water services. Also the government is considering service
contracts, management contracts, leases, concessions, build own operate transfer and
rehabilitate operate transfer arrangements as tools to facilitate private sector participation.
List of Relevant Policies (underlined items are hyperlinked)
 National Energy Policy 2009-2030
 National Renewable Energy Policy 2009-2030
 The National Energy Conservation and Efficiency Sub-Policy 2010-2030
 The National Energy‐from‐Waste Policy 2010-2030
 The Biofuels Policy 2010-2030
 National Policy for the Trading of Carbon Credits 2010-2030
 Regulatory Policy for Addition of New Generating Capacity to the Public System 2006
 Net Billing Regulation 2009
 All Island Electric Licence 2001 (Ammended)
 National Transport Policy
 Petroleum (Quality Control) Act 1992
 Jamaica Water Sector Policy
 National Resources Conservation Authority Regulations 2006
 Housing Public Private Partnership Policy 2008
 Energy Efficient Building Code 1996
 Tourism Master Plan for Sustainable Development

Montego Bay Sustainable City initiative
The Ministry of Local Government and Community Development implemented the Montego Bay Urban
Sustainability Action Plan in 2013 through funding from the Inter-American Development Bank valued
at £136,000. Another £81,600 was spent in 2015 towards the plan which is expected to run from
September 2013 to September 2015. Various components of the plan arose from Montego Bay being
chosen as a city to participate in the Emerging and Sustainable Cities Initiative (ESCI) spearheaded by
the IDB and the government of Korea. The plan aims to address the main environmental, urban and
fiscal issues affecting the long term sustainability of the city. The ESCI report revealed that:
1. There were no vehicles using non-fossil fuels as energy source
2. Lack of adequate open green and public spaces
3. An alarming 65% of water distributed is unaccounted for and so produces no revenue
4. Only 25% of population had access to a sewer system in 2002
5. All of the city’s solid waste is disposed of in dumps, water bodies, and burned
6. There is no climate change adaptation plan, disaster risk management. Or natural disaster
contingency plan.
The report had numerous recommendations including methane gas capture at dump site, use of
composting, using household energy-saving appliances, tackle energy savings in hotel sector, and
changing small vehicles from gasoline to natural gas.

Need for Innovation.
Innovation is a tool that can help to alleviate socio-economic problems and improve the economy.
Jamaicans with bright ideas tend to just keep bright ideas due to unawareness (of the current) and lack
of enough specialised pathways to successful development and implementation. Jamaica spends 0.3%
of its GDP on Research & Development, a small figure compared to the average world, developed
countries, and Latin America and the Caribbean figures of 1.7%, 2.3%, and 0.6% respectively (2005
figures). In the five year period 200-2005, there were 23 patent filings per million people in Jamaica. In
the year 2002 alone, there were over 230 patent filings per million people in Scotland and that figure
(for 2004) was 335 and 147 for Norway and Singapore respectively. Clearly there is need to encourage
a culture of innovation and more importantly, facilitate the development of ideas into products that
are attractive to investors and financial institutions. Facilitation is needed in the form of financial, skills,
network, and training support. Over the past few years the government has been promoting a culture
of science and technology and improving science education which tackles two barriers to innovation.
The Planning Institute of Jamaica recommends increasing government funding for R&D to 2% in the
long term, forge strong public-private sector partnerships, and place continued emphasis on
stimulating the growth of small and medium enterprises and entrepreneurship.
Current Infrastructure
 Promotion of Entrepreneurship
 Introduction of the National Innovation Awards for Science and Technology
 National Quality Awards Programme
 R&D in some ministries and main tertiary institutions
 Improved Intellectual Property Rights System

What is required?
 Foreign direct investment
 Venture capital financing
 Publicly funded secondment of research scientists and engineers into firms
 Development of Science & Technology/ Research & Development clusters
 Stronger innovation policy
 Tax incentives and subsidies for R&D by private firms
 Strong government support for the transition from idea to commercialisation
Innovation Incubators
 Microsoft Innovation Centre
 The University of the West Indies (Office of Research and Innovation)
 The University of Technology (Technology Innovation Centre)
 Scientific Research Council
 Caribbean Climate Innovation Centre

Electricity Generation
Jamaica has a reasonable good penetration of electricity with 92.6% of the population having access.
The sole distributor and majority generator of electricity is the Jamaica Public Service (JPS). In 2014, the
total amount of electricity generated was 4107 GWh, while the net sales was 3013 GWh. This
represents a loss of 26.5% which JPS attributes to technical losses (9.5%) and electricity theft (17%).
The heat rate of JPS has improved over the years from 10,183 kJ/kWh in 2010 to 9,625 kJ/kWh in 2014
corresponding to increasing efficiency from 35.35% to 37.4%. In comparison, this value is close to that
of the UK and the USA which were 43% and 36.8% respectively, in 2003 (ECOFYS, 2006).
Figure 2 - Trend in Net Electricity Generation
(Source:https://www.mona.uwi.edu/physics/sites/default/files/physics/uploads/RE%20Development%20MSTEM.pdf)
Jamaica has been seeing an improvement in its energy mix over the recent years. Figure 4 below
illustrates this improvement in terms of generating capacity for electricity. Capacity however is not the
best measure for energy mix. Actual energy production is a much better measure. The actual share of
electricity generated by renewable energy in 2014 was 3.3% and 2.9% for hydro (135.96 GWh) and
wind (120.16 GWh) respectively. This represents a combined share of 6.2% to electricity distributed by

the JPS. The actual share for total electricity generated is higher due to inputs from residential and
commercial solar PV installations. However the exact amount of the input is not known but the capacity
is in excess of 4.26 MW (the known amount of commercial installations) which can produce an
estimated 6.2 GWh annually (using 4 peak sun hours as an operating average). The share from RE is
then at least 0.15%.
Table 1 - Share of Renewable Energy in Overall Share Consumption
Year Petroleum
Imports
Renewable
Consumption
Other Energy
Available
(Coal)
Total Supply RE in mix
2004 25,530,179 1,579,000 323,000 27,432,179 6%
2005 27,033,983 1,334,500 259,000 28,627,483 5%
2006 29,990,474 1,521,000 186,624 31,698,099 5%
2007 29,086,636 1,503,000 176,000 30,765,636 5%
2008 28,310,718 1,674,279 389,000 30,373,997 6%
2009 21,607,004 1,559,652 167,000 23,333,656 7%
2010 19,968,327 1,569,364 139,000 21,676,691 7%
2011 20,616,766 1,758,689 361,000 22,736,454 8%
2012 19,733,569 1,758,436 284,000 21,776,005 8%

Figure 3 - Renewable Energy Shares in Electricity Generating Capacity.
Due to the large dependence on foreign oil, high system losses, and poor economic situations in
Jamaica, the cost of electricity is among the highest in the world. The high cost are attributed to the
expensive (heavy fuel oil and diesel) sources used in power plants. Figure 5 below shows the trend in
average electricity cost and figure 6 shows the average electricity cost in some countries across the
globe.
Figure 4 - Average Demand Side Electricity Cost 2010-2015
(Source:http://www.myjpsco.com/news/electricity-cost-down-to-five-year-low-of-us-25-cents-per-kwh/)

Figure 5 - Electricity Cost in Some Countries
(Source: http://shrinkthatfootprint.com/average-household-electricity-consumption)
The prices in figure 6 are for the year 2011. In that same year, the average price of electricity in Jamaica
was £0.23. This high price of electricity stifles the manufacturing sector and hinders economic growth.
In 2012, Jamaica produced £421 of GDP per barrel of oil equivalent (BOE) consumed while Trinidad
generated £1085/BOE, and Barbados generated £1540/BOE.
Potential and Opportunities
The largest opportunities in the electricity generation sector (excluding renewable sources) are for
entities with experience in LNG plant construction, smart grid technology, and reducing grid and plant
system losses. Reducing system losses and setting up a LNG power plant both can significantly reduce
electricity costs while smart grid technology can increase the stability of grids with high intermittent
source (solar and wind) penetration both of which are urgently needed.

Renewable Energy
Solar
Jamaica has yet to significantly tap into its immense solar resource. The island receives on average over
5 kWh/m2/day of insolation. The graph below shows the average global horizontal irradiance for several
locations in Jamaica and the average for Germany. Clearly, Jamaica has a significantly higher and less
varying insolation pattern. Following price reductions and the removal of common external tariff (CET)
from renewable energy equipment (and others), more and more residential consumers are purchasing
photovoltaic (PV) systems and solar water heaters. The exact amount of residential installed capacity is
not known for neither PV systems not solar water heaters. In 2008, the Petroleum Corporation of
Jamaica estimated that roughly 0.9% (7800) of homes were equipped with solar water heaters and over
183KW of residential solar PV was installed in Jamaica. Also in 2008, there was over 104 kW of small
commercial PV installed. The figures should be significantly larger now since the average price per watt
of PV modules fell from £2.59 in 2008 to £0.42 at the end of 2014. Based on articles in local
newspapers, hotels and large commercial companies have installed over 4 MW of solar PV systems
since 2012 with the largest being a 1.6 MW system at the Grand Palladium Resort & Spa (pictured
below) in the parish of Hanover. PCJ’s Energy Efficient Unit has installed at least 9.5kW of PV systems
at hospitals and a hotel. Over 46, 120L (10,145 gallons) of solar water heaters have been installed at
several healthcare facilities including major hospitals. Solar street lights, numbering 221, were installed
on sections of highway 2000 by TransJamaica Highway in 2013. This was done based on the
recommendations from a study done by graduate students at the University of the West Indies. The
general consumption tax (VAT equivalent) on several solar energy products (including but not limited
to solar panels and tubes, solar water heaters, solar street lamps, solar electric fans, and solar-electric
refrigerators) have been removed. This move will surely make solar products more affordable and help
the country to achieve the revised energy mix of 30% by 2030 (was initially 20%).

Figure 6 - Picture of the Photovoltaic Panels on the Grand Palladium Resort &Spa
(Source:http://www.jamaicaobserver.com/latestnews/Grand-Palladium-Resort-unveils-largest-solar-PV-plant-in-Jamaica)
Wind
Based on the findings of several studies done, Jamaica has notable wind power potential. Some of that
potential has been tapped into by the PCJ and the JPS. PCJ owns the Wigton Wind Farm Ltd which
operated the islands largest wind farms (37.8 MW installed capacity) while JPS operates a smaller 3MW
wind farm in Munro, St. Elizabeth. There are small residential and commercial wind systems installed
but the capacity is not known. According to the JPS annual report for 2014, wind accounted for 120.16
GWh of electricity produced from its Munro wind farm and PCJ’s Wigton Wind farm, the latter through
a power purchase agreement (PPA). Hybrid PV wind systems (pictured below) was offered by JPS but
due to performance issues and high cost, the product has been pulled off the market.

Figure 7 - Picture of a Hybrid PV-Wind System on a Rooftop
(Source:http://inhabitat.com/jamaica-unveils-worlds-largest-wind-solar-hybrid-installation/)
Figure 8 - Picture of Turbines at the Munro Wind Farm
(Source:http://www.evwind.com/wp-content/uploads/2012/09/jamaica-wind-energy-wind-farm-wind-power.jpg)

Hydropower
Jamaica has several small scale hydro plants (both dam/impoundment and run-of-river types) owned
and operated by the JPS. The total capacity installed is 31 MW most of which comes from plants more
than 40 years old. Jamaica lacks the ability to support large scale hydropower plants due to the small
size of its numerous rivers.
Figure 9 - Picture of a Hydropower Dam in Jamaica
(Source:http://www.pietrangeli.com/assets/uploads/projects_pics/zoom/Jamaica_hydropower_plants.jpg)
Biomass
The conversion of biomass into usable energy is limited to sugar cane farms that burn bagasse to
provide electricity. Historically, wood was burned to make coal which was used by households for
cooking and ironing purposes. With an increase in affluence and higher accessibility to petroleum

cooking gas and electricity, such practices have become confined to practically deep rural communities
and impoverished families.
Figure 10 - Picture of a Sugarcane Harvesting Machine in Operation
(Source:http://www.jamaicaobserver.com/assets/8833542/sugar-cane.jpg)
Solar
Jamaica receives on average 5 kWh/m2/day of sunlight. That is a high enough energy density to satisfy
our current and future electricity demand using a small fraction of the land. A global horizontal
irradiance of 5 kWh/m2/day, an operating efficiency of 12%, and an annual demand of 4100 GWh works
out to a solar PV farm of size ~19 km2 which is only 0.17% of the land surface. Therefore, there is more
than enough incident energy from the sun to meet out demand. The factors affecting implementation
are high initial costs and intermittence of supply. The costs of solar PV have been falling rapidly over
the last decade. Solar PV has reach grid parity in several countries which means the levelized cost of
energy is the same price or cheaper than electricity derived from fossil fuels (most utility companies
use fossil fuels as their majority energy source). The problem of intermittence is significant as grids have

a baseload demand that is always present and must be met. Solar supply changes throughout the day
as the sun moves across the sky but more significantly, cloud cover is dynamic and not easily forecasted
at a local level for a particular time. The use of storage mitigated this problem but storage methods can
be complicated and expensive. The use of batteries is popular but expensive and is recommended at
small scales. Pumped storage is used in the USA, China, Costa Rica, and other countries on large scales
but is costly. Pumped storage would be adequate for large scale PV plants (and perhaps small scale)
while batteries are better suited for small scale applications (based on current technology). Solar
thermal with storage is suitable for providing baseload power but has very high set up costs. As oil
prices increase, both technologies should become highly favourable for satisfying electricity demand.
Concentrating solar power (CSP) is another technology which harnesses the power of the sun. There
are several types but the principle behind them all is to focus sunlight to heat a collector to high
temperatures which in turns heats a fluid which is used to generate electricity through steam and
generators. This technology has the advantage of having the ability to supply firm supply by storing hot
thermal fluid in tanks. It is only recently that solar PV costs have fell below that of CSP. Just has the cost
of PV has fell due to mass production and improvement in production methods, CSP cost reductions
are expected. Research and development is expected to produce more efficient generation
technologies and improved storage which will help to reduce CSP costs up to 40% or more by 2020. As
electricity demand increases, there will be increasing demand for firm supply at utility scale and CSP is
a promising technology with the potential to satisfy this demand given Jamaica’s rich solar resource.
Wind
Based on feasibility studies done, Jamaica has significant untapped wind potential. A study completed
in 2013 identified 4 sites with an excellent wind regime. To date two of those sites have been chosen
for the installation of wind turbines namely, Top Lincoln (Malvern) and Rose Hill. Winchester and Kemps
Hill still have not being mentioned for development as yet. There exists potential for the development
of these areas into wind farms. The location at Kemps Hill is small and can only accommodate 10

turbines at most but there is a bauxite industrial waste pond in close proximity which can accommodate
up to 15 turbines but data needs to be collected to ensure potential. The Winchester area is the best
location with the highest wind potential. The area has a ridge which is almost perpendicular to the
prevailing north east trade winds. This alignment allows for very narrow spacing between turbines
which means more turbines can be placed per unit area. A single Vestas V80-2 MW turbine with 67 m
hub height has a theoretical power output of over 7 GWh annually at the Winchester location. That
amount of electricity costs £1.33 million if bought from the JPS at a rate of £0.19/kWh.
Hydropower
The PCJ mandated a number of studies which have shown that the hydroelectric capacity could be
increased by 81.7 MW by constructing a number of small scale plants. Most of the suggested sites can
support plants of less than 5 MW with one being 50MW and another being 8 MW. At the time the
studies were done, electricity costs were low and resulted in the economic assessment being negative.
Also, hydroelectric plants require high specific investment costs. Another factor opposing construction
are the environmental impacts and also the impact on the tourism industry for some rivers. There are
ongoing prefeasibility and feasibility studies being done by Studio Pietrangeli Consulting Engineers for
constructing small scale hydro plants on 5 rivers with a combined capacity of 10.3 MW. There is
potential for the deployment of micro hydroelectric plants (5-100 kW) in the many small rivers across
the island to produce electricity for small villages and communities as a part of the government’s rural
electrification program.
Biomass
According to the PCJ (back in 2009), the potential for energy from bagasse and waste to energy is 68MW
and 55 MW respectively. All Jamaican sugar mills are equipped with low efficiency cogeneration units
for the supply of heat and power to the mills by burning bagasse. Sometimes, additional electricity from
the grid and diesel plants (owned by the sugar companies) has to be used to supplement supply. The
boilers in the cogeneration plants were designed with an efficiency below 50% in an effort to burn as

much bagasse as possible as this was an unwanted waste product. Also, at the time, selling electricity
to the grid was not possible. In Jamaica, the boilers are of low temperature and pressure design and
are able to produce around 60 kWh/tonne of bagasse and 20-30 kWh/tonne of cane. High temperature
and pressure boilers, such as those installed in Brazil, are able to produce 370-510 kWh/tonne of
bagasse and 90-160 kWh/tonne of cane. Currently, the falling price of sugar on the global market amidst
other factors, have led to the closure of several sugar factories. This presents an opportunity for the
use of the land for food and fuel crops.
The minister of science, technology, energy, and mining has stated intentions of considering increasing
the ethanol blend given to motorists. Currently 10% of gasoline given to motorists is ethanol. The
minister has stated considering increasing the blend to a ratio of 25% ethanol and 75% gasoline. This
would increase demand of ethanol production. Current sugar cane farms can be converted to dedicated
sugarcane-to-ethanol plants to provide some of the additional ethanol and the waste product, bagasse,
can be burned to provide electricity and heat.
The government began conducting field trials of a variety of plants (seeds obtained from Jamaica, Brazil,
India, and China) which can produce feedstock for biodiesel under the Scale Biodiesel Pilot Project. The
£ 56,160 research partnership was funded by the Petroleum Corporation of Jamaica (60%) and the
Caribbean Agricultural Research and Development Institute (40%). The United Nations Environmental
Programme also provided funding of £31,940.
In 2013, a biodiesel project was launch by the University of the West Indies, Mona and the Youth Crime
Watch of Jamaica (YCWJ) community based crime prevention group. The university will provide the
technical capacity while the YCWJ will engage communities with at-risk youth. Waste vegetable oil is
collected from restaurants in nearby communities and converted to biodiesel and soap. The project
aims to collect 30,000 litres of waste vegetable oil over 18 months and build capacity in
entrepreneurship, biodiesel production, and environmental stewardship through training of 30

community members and 30 students. Funding was provided by a grant from the Global Environment
Facility Small Grants Programme.
Planned Implementations of Renewable Energy Technologies
i) Blue Mountain Renewables LLC – Size: 34 MW, projected cost: £27.6 mil, commission date: early 2016
ii) Phase III – 24 MW (2015)
iii) WRB Enterprises – Size: 20MW, projected cost:£38.5 mil, commission date: Apr-Jun 2016
iv) National Irrigation Commission plans to launch a £1.65 million irrigation project under which solar
power will be used to operate pumps. The project will be one of many done previously costing over
£27.4 million with the aim of reducing the dependence on rainfall and ensuring sustainable agriculture.
Figure 11 - Potential Sites for Renewable Energy Development
(Source:http://www.pcj.com/dnn/Portals/0/Documents/National_Renewable_Energy_Policy_August_26_2010.pdf)

Energy Efficiency and Conservation
Over the past decades various programmes have been implemented to tackle energy efficiency and
conservation. Today more than ever, there is a desire to improve energy efficiency and conservation
efforts stemming from the need to reduce costly foreign oil importation and also greenhouse gas
emissions (GHG). There is a tremendous opportunity for Jamaica to reduce its energy consumption
through energy conservation and efficiency applications. In the electricity sector, most of the
generating plants are old and inefficient and needs to be replaced with higher efficiency plants which
burn cheaper and cleaner fuels such as liquefied natural gas (LNG) and utilise advanced methods such
as combine cycle process. Power plants utilising combined cycle process and LNG can achieve
efficiencies up to 60% (compared to current 37.4%) and reduce emissions of carbon dioxide, oxides of
sulphur, and nitrous oxide (NOx). The combined cycle process also reduces the temperature of exhaust
gases which in turn reduces thermal pollution. On the demand side, there is also need for consumers
to reduce energy consumption. There are energy saving products on the market but high retail mark
ups make them unattractive to the majority of the population. The high cost of electricity is a big driver
for consumer desire but high prices is a very significant obstacle opposing this desire for smart energy-
efficient devices. Energy conservation and efficiency with regards to mobility is covered in the transport
section. With regards to lighting, much ground have been covered as many offices and homes have
switched to fluorescent technology and a few are utilising LED bulbs. The switch was fuelled by the
lower power consumption and heat production which made rooms, especially small ones, hot during
use of incandescent bulbs. Usage of occupancy sensors is steadily gaining ground but the
implementation level is still low by best judgement (no official data). Newer technologies are typically
more energy efficient but cost is a large factor when a consumer considers purchasing a new piece of
equipment such as a refrigerator, air conditioning unit, or television. While the government made a
highly commendable step in reducing and in some cases exempting, the common external tariff (CET)
on numerous energy saving and renewable energy products, some common consumer electronics and

appliances with Energy Star badges such as televisions, refrigerators, air conditioning units, and
uninterruptible power supplies (UPS) are not included. Consequently, these devices are unattractive
financially for the average consumer even though they might want to purchase them (high mark-ups
are to be blamed as well). As is seen on the figure below, Jamaica has a relatively low productivity (GDP
per capita) and energy efficiency (GDP per million BTU). When the ratio between the two are
considered, Jamaica is one of the better performing islands but it is clear that both productivity and
energy efficiency needs to be improved.
Figure 12 - Productivity against Energy Efficiency in some Caribbean Countries
(Source: http://caribbeancic.org/energy-efficiency)
Implementations by the Government
The Ministry of Transport and Works implemented a programme to replace all incandescent traffic
lights with new energy-saving lamps which was projected to reduce electricity bills by 87%. The 20-22W

LED bulbs, with a lifespan of 7-10 years, were used as replacements for 100W incandescent bulbs which
only lasted 3 months.
The GOJ developed a program where 4 million compact fluorescent light bulbs (given by Cuba as a gift)
were freely distributed to households which reduced electric load by 80 MW and saved 48,500 MWh
of electricity annually. More recently, the government partnered with JPS and the Caribbean Maritime
Institute to retrofit 200 street lights by installing LED fixtures on existing poles at a cost of £28,500 on
a section of the Palisadoes roadway. The LED’s are expected to reduce energy consumption by more
than 50%, increase visibility by virtue of having a higher colour rendering index (CRI), and last longer
than the high pressure sodium fixtures that were removed. The government, through the Tourism
Enhancement Fund (TEF), installed a total of 797 LED streetlights along a 17km long section of Montego
Bay’s Elegant Corridor at a cost of £1.49 million.
Through the PCJ, the government developed EE programmes for hospitals, schools, and hotels. The
GOJ replaced inefficient lighting, refrigerant in AC units, entire AC systems, and refrigerators with more
efficient technology. An example of this is the installation of an energy efficient AC system, solar water
heating system, and retrofitting of the internal lighting system at the Spanish Town Hospital. Two AC
systems totalling 32 tonnes is expected to reduce energy costs by £8,800 per year. The solar water
heating system, which cost £20,800, reduced energy usage by 18%. The lighting system retrofitting cost
£6,600 and shaved off £4,900 off energy costs annually. In July, 2014 it was announced that 15 schools
across the island were to benefit from a £342,000 energy saving project. The project will see the
installation of solar systems in 14 high schools, 1 primary school, and three government agencies. A
total of 18 PV systems with peak capacity of 232 kW will be installed and is expected to reduce energy
costs by £88,200 annually. According to an article in a local newspaper, junior minister in the Science,
Technology, Energy and Mining Ministry Julian Robinson mentioned that in 10 years prior to 2015, the
PCJ has carried out more than 100 energy efficiency projects at a cost of more than £630,000 which
have collectively resulted in more than £237,000 in energy cost reductions annually.

The Inter-American Development Bank in 2011 provided funds (£12.82 million) for a program aiming
to enhance the energy efficiency and conservation potential of the island. This enhancement was done
through improving the institutional capacity of the Ministry of Energy and Mining to design and
implement investment schemes and to measure energy efficiency and energy conservation in the
public sector. The program was expected to reduce energy fiscal expenses and greenhouse gas
emissions.
In 2012, the Jamaica Productivity Centre launched a project titled, “Developing an Energy Services
Company (ESCO) Industry in Jamaica” funded by the European Union (75%) and the Government of
Jamaica (25%). The project, which is to last for three years and costing £401,800, aims to establish the
infrastructure necessary for the development of an Energy Services Company (ESCO) Industry in
Jamaica.
The government removed the common external tariff (CET), in some cases reduced, on numerous
renewable energy and energy saving devices in 2013. The list of eligible devices was extended in 2014
to accommodate additional devices. The current list includes compact fluorescent lamps, absorption
refrigeration systems, air-conditioning chillers, and many other devices.
Implementations by the Private Sector
JPS developed an early initiative targeting the household sector called the Demand Side Management
(DSM) Programme. The initiative gave 300 free CFL’s to 100 households in phase 1 and sold 100,000
CFL’s as part of an overall energy savings package (including items like low flow showerheads and
outdoor lighting controls) in phase 11. The initiative resulted in a 1MW reduction in electric load and
electric savings of 5,350 MWh per year.
Red Stripe, a large brewing company, £5 million for the purchase of a combined heat and power
generator in an effort to increase energy efficiency, reduce carbon footprint, and environmental
impact. The generator is said to have an overall efficiency of over 80% and so uses less power to provide

electricity, steam, and chilled water to the brewery. The company has an ISO5001 plan which aims, by
2016, to reduce CO2 emissions by 50%.
Much attention has been placed on the energy sector over the last few years which has resulted in it
being competitive. There are numerous companies offering energy efficient lighting products and
energy saving devices. Fewer companies provide energy audit services and energy management
systems. The opportunities then are not great unless interested entities have a competitive advantage
such as lower costs or attractive finance model. Economical low energy cooling solutions that perform
better than common air-conditioning units and absorption chillers are exceptions. Affordable products
that can adequately cool a building using little energy will do very well in Jamaica and face little
competition. The high temperature combines with high humidity levels to make an uncomfortable
working environment or home if there is no air-conditioning unit or sufficient breeze.

Transport Sector
Currently, the overwhelming majority of vehicles in Jamaica use gasoline and diesel. Most vehicles use
gasoline as the use of diesel is almost confined to (small, medium, and large) trucks, buses, and SUV’s.
Hybrid and electric vehicles are quite rare and there is no documented use of 100% hydrogen-fuelled
vehicles. Harlo Maynes introduced an on-demand hydrogen generator to the Jamaican market back in
2008. The 40 lbs (18.1 kg) plug-n-play device is claimed to be able to save drivers up to 20% on fuel
savings, produce >99.99% pure hydrogen at a discharge rate of <8 L/min. While the device has not seen
widespread implementations, Harlo was recognised for his invention through a National Innovations
Award from the prime minister. E10 was introduced to Jamaica on November 1, 2008 and by May 2009
all motorists were receiving E10 in both Octane 87 and 90 fuels as their only option. According to a
report done by Al Binger, the average vehicle efficiency is estimated to be about 10 litres per 100 km
or 28 mpg (UK gallons). The government has placed age restrictions on the importation of vehicles. The
age limit on motor cars, motorcycles, light commercial trucks, buses, and medium to heavy trucks are
5,5,6,12-20, and 15-30 years old respectively. This ban is expected to help to increase the average
efficiency of vehicles on the road as newer cars are equipped advanced technologies which make them
more efficient. Also, vehicles with larger engine sizes, poorer mileage (lower efficiency), and older
vehicles attract higher import duties.

Figure 13 - Motor Vehicle Ownership in Jamaica 2004-2006
(Source: Annual Transport Statistics Report 2006-2007)
Figure 14 - Motor Vehicle Fuel Mix 2004-2006
(Source: Annual Transport Statistics Report 2006-2007)
Ultra Low Sulphur Diesel (ULSD) was introduced in June 2013. While the limit for sulphur levels in diesel
fuel is 5000 ppm, the sulphur contents of ULSD can be as little as 11 to 50 ppm. The lower sulphur
content improves mileage and reduces sulphur emissions. In addition, it is legal to blend biodiesel to
diesel up to five per cent by volume.

The maritime transport sub-sector recorded very few incidents of oil spills over the last decade. Data
on introduction of waste into the water by ships and introduction of invasive aquatic species is limited
though and so the impact is not known. The introduction of waste into the water from industries is of
major concern signalled by the increase of the organic content of thee Kingston harbour (7th
largest
natural harbour in the world). The Soapberry Waste Water Treatment plant only handles 30% of the
waste water from the KMA. There is an opportunity for the development of new water treatment
facilities to treat the remaining wastewater. Jamaica is a signatory to the International Convention for
the Prevention of Pollution from Ships (MARPOL), Convention for the Protection and Development of
the Marine Environment of the Wider Caribbean Region (Cartagena Convention), and the Convention
on Wetlands of International Importance (RAMSAR).
The China Harbour Engineering Company, which is currently working on the north-south highway link
and other projects, proposed the construction of a £956 million logistics hub on the Goat Islands. The
project faced much criticism from environmentalists and fishermen who argue that the project will have
devastating impacts on the ecosystem. The construction could see Jamaica being home to the 4th
largest logistics hub in the world. Based on projects CHEC have done in the past, it is unlikely that much
opportunities exist here as Chinese resources and equipment are likely to be used solely.
In an effort to reduce fossil fuel imports and increase resilience to price shocks, there is a drive to using
alternative fuels for vehicles. The government has made it mandatory that all gasoline be supplemented
with ethanol (10%) and recently mentioned considering introducing a 20-25% blend. If this happens, it
will increase the demand for ethanol-producing companies. The closure of several sugar companies
due to low prices has resulted in large plantations with infrastructure and fertility to establish
sugarcane-to-ethanol plants. The government is also interested in the biodiesel field. Field trials have
been launched with plants from Jamaica, Brazil, India, and China. There are initiatives involved in

exploring the use of waste oil for biodiesel production. Companies with expertise and experience in
producing ethanol and biodiesel should definitely explore the market in Jamaica.
The market for hydrogen infrastructure development and cars, electric vehicles, and hybrid vehicles is
relatively weak currently. These technologies require more development to direct a reduction in price
before they become attractive enough to Jamaica. Of those mentioned, electric vehicles have the most
potential but their costs are still prohibitive to penetration because while gasoline and diesel are
expensive, electricity is also expensive. In effect, the payback period is very long and will require massive
government incentives (which is extremely unlikely) to receive widespread attention. There are wealthy
citizens who might be willing to invest in an electric car but the market size is really small.
Electric vs Petrol Car
The following analysis looks at the case of purchasing an electric car versus a gasoline car. The most
popular electric car in the UK, the Nissan Leaf, and the most popular petrol car, the Ford Fiesta, were
chosen for the study. To determine the simple payback period, the net purchase price and net annual
operating costs were used. The net purchase price is the difference in actual price of the two cars
(electric-gasoline) while the net operating costs is the difference between that of the two (gasoline-
electric). Therefore, 𝑆𝑃𝑃 =
(𝑃𝑟𝑖𝑐𝑒 𝑒𝑙𝑒𝑐𝑡𝑟𝑖𝑐−𝑃𝑟𝑖𝑐𝑒 𝑔𝑎𝑠)
(𝐴𝑂𝐶 𝑔𝑎𝑠−𝐴𝑂𝐶 𝑒𝑙𝑒𝑐𝑡𝑟𝑖𝑐)
, where the annual operating cost
(AOC) is the cost per 100km multiplied by the annual distance travelled.
Table 2 - The Case of the Most Popular Electric Car vs Petrol Car
Item Electric Gasoline
Cost (lowest MSRP) £18,474.24 £7,635.51
Capacity 24 kWh 41 litres
Efficiency (combined) 18.75 kWh/100 km 6.75 L/ 100km
Range 128 km 540 km

Fuel Cost 16p/kWh 77p/L
Fill up cost £4.27 £31.57
Cost per 100 kilometres £3.33 £5.85
Figure 15 - Payback period variation with distance travelled for several scenarios
The green, blue, and red vertical lines represent the annual distance travelled by a commuter living
close to work (20km/day), a commuter living a good distance from work (55km/day), and a taxi
operator (165 km/day). The lines labelled CS, FS1, FS2, and FS3 represent current scenario and future
scenarios 1, 2, and3 respectively. The scenarios are explained in the table below.
Table 3- Description of Scenarios
Scenario Electricity Cost (p/kWh) Relative Cost of Electric Vehicle
CS 0.16 200%
FS1 0.16 130%
FS2 0.12 200%
FS3 0.12 130%

The value of 200% regarding relative price of the electric car to a petrol one was calculated from the
lowest manufacture suggested retail prices (MSRP) of a Nissan Leaf and a Ford Fiesta the best-selling
electric and petrol cars, respectively, in the UK for 2015. The future scenario 1 assumes the cost of
the electric car fall by a combination of government incentives and reduced manufacturing costs due
to increased demand while electricity costs remains the same. Future scenario 2 assumes electricity
prices reduce due to a larger penetration of cheaper fuel sources (renewables and LNG) while the
price of the electric car remains the same. Future scenario 3 assumes that both the electric car price
and the cost of electricity reduce by the same amounts in the two previous scenarios. Based on the
graph, the current scenario produces figures only slightly economical to taxi operators. Commuters
travelling 55km/day on average will find electric cars somewhat economical under future scenarios 1
and 3 if they plan to keep the car for a few years, more than 5 and 8 years respectively. Electric cars
are not economical to conservative drivers (travel less 20km/day) under any scenario. Taxi operators
considering electric cars will face the challenge of limited range. A daily average of 165km/day will
require a single charge at some point during the day. This can be remedied by charging the vehicle
during a lunch break. A rapid charger will be able to replenish 80% of the battery capacity in 30
minutes however frequent use of rapid chargers reduces battery life. Fast chargers can do the job in 1
to 2 hours which is doable. The lost time, since lunch is likely to take an hour or less normally, can be
regained by starting work slightly earlier and/or ending work slightly later than usual. It should be
noted that the calculations done did not consider several factors including difference in insurance
costs, difference in non-fuel maintenance costs, and battery lifespan. Also, it was assumed that
gasoline price remained constant.

Waste Management
Solid Waste
The National Solid Waste Management Authority (NSWMA) is responsible for the collection of waste in
the island. The NSWMA directly collects the majority of waste while private contractors collect the
remainder. About 80% of all waste in the island is collected. Waste is transported to four dump sites
across the island. There are a few recycling companies that collect scarp metals, plastic bottles and
waste paper and ship them abroad to be recycled. Composting is not heavily practiced in the island but
can become popular based on the government decisions. There is no policy for the separation of waste
and collection of tipping fees for waste collection. According to a 2013 report by the NSWMA,
compostables, paper, plastic, glass, and metals collectively represented 88% of all waste collected. The
aforementioned items can be used to provide fertilizer, biogas, and feedstock for recycling initiatives.
Figure 16 - The Composition of Waste Collected in Jamaica, 2013
(Source:http://www.nswma.gov.jm/WASTEGENERATIONANDCOMPOSITIONSURVEYREPORT2013.pdf)

Liquid Waste
The National Water Commission (NWC) is the primary provider of wastewater services in Jamaica. NWC
collects water from over 700,000 persons across the island of 2.7 million. While there are over 150
private and public waste water treatment facilities across the island, there is a notable use of pit
latrines. The NWC makes use of waste water stabilisation ponds for waste water treatment in Montego
Bay and the Kingston Metropolitan Area. In the KMA, a majority of households (93%) have flush toilets
while only 63% of households use flush toilets in other towns. Only 47% of households in the KMA are
connected to a sewer system while the rest are connected to pit latrines (most of them). Only 4% of
households in other towns are connected to a sewer system.
Currently, waste at the dump sites in the island are not separated or recycled (on a large scale). With a
high organic content of at least 60%, a large volume of the potent GHG methane is being released on a
daily basis. This gas can be burned to produce electricity. There are over 150 biogas plants utilising
animal manure in the island. Those plants have been used for heating and cooking purposes on farms
and in households and seldom, used for providing electricity. Solid waste can be used to provide
baseload power. Jamaica produces about 1.5 million tonnes of waste annually. The waste is unsuitable
for direct combustion due to the high moisture content. Also, direct combustion would require strict
emissions control and so is not very attractive. Recently, the government abandoned plans to construct
two waste-to-energy direct combustion plants which would have had a combined output of around 500
GWh annually with a power capacity of 65 MW. The plants were to be financed, constructed, and
operated through a joint venture between PCJ and American-based Cambridge Project Development
Company Inc. (CPDco). The reasons for the collapse of the deal varies according to each party. The PCJ
says that CPDco didn’t have the necessary resources after going through a bankruptcy-caused
restructuring. The CPDco said the reason given to them by the PCJ was that the project was too
expensive considering all the factors.

A study done by the PCJ to determine the economic viability of biogas plants at the island largest dump
site (Riverton) revealed that biogas electricity production and cogeneration are viable. The minimum
level for cost-competitive generation is 1000 m3
per hour. The conservative estimate for biogas
production at Riverton is 3904 m3
per hour. There then exists an opportunity to construct and operate
biogas plants profitably, however, the NSWMA is promoting plans to increase composting in the
country which would reduce the organic and moisture content of the waste stream at Riverton
effectively reducing the amount of biogas production. There exists an opportunity for the
implementation of small scale biogas plants in those communities not connected to a sewer system.
Larger scale plants can be implemented at the waste water stabilisation ponds to produce electricity
for sale to the grid in an effort to subsidise maintenance costs. Another benefit is using the liquids for
biogas production is considered partial treatment of liquid waste. A study conducted by the Scientific
Research Council (SRC) revealed that 840-6300 MWh of electricity could be delivered to the grid by
collecting and treating domestic sewage waste from the KMA alone.
There is an urgent need for the government to develop a comprehensive waste management strategy
so that developers can determine the volume and costs of accessing waste fuel. That along with the
introduction of tipping fees will provide the enabling environment for investments.
Companies with expertise in waste minimisation projects and reuse of waste will find great
opportunities. The problem of waste disposal is of persistent concern (recent fires at a large dump site
did not help this situation) at the largest disposal site has placed pressure on the government to tackle
the problems associated with waste management. The government highlighted waste minimisation and
treatment/disposal as areas to tackle to remedy the situation. The government is also interested in
waste-to-energy technologies and so welcome private sector participation.

Water Resource Management
There is growing awareness and concern for the issues and problems in the water sector, which
threaten the nation’s health and which demand considerable sums for their resolution. These include
the deterioration and malfunction of the municipal supply and sewage treatment infrastructure,
management of industrial and toxic waste and its effect on water resources, rapidly increasing demand
in water deficient areas, and the adverse effects of deforestation. Jamaica has made significant progress
in providing water services for its people. Across the country as a whole, the percentage of households
with piped water has risen from 61% in 1990 to 71% in 2001. Over the same period, the percentage of
households relying on water from rivers, springs and ponds has fallen from 5.7% to 3.1%, while the use
of pit latrines and other types of sanitary conveniences has declined commensurately. Unfortunately,
the poorest 20% of the population has not shared in these improvements. One third of the poorest
households rely on standpipes for their water, and 30% obtain water from untreated sources such as
rivers. Only 21% of the poorest households have flush toilets. The Government of Jamaica has tasked
the Water Resources Authority (WRA) with the task of regulating, controlling, and managing water
resources.
Water treatment and supply
The island of Jamaica receives around 4,083 million cubic meters per year (MCM/yr) of water with
ground water accounting for 3418 MCM/yr and surface water providing 3418 MCM/year (2004 data).
The amount of potable water from both ground and surface sources is about 920 MCM/yr which
represents 22.5% of water yield. A vast 3,163 MCM/yr. is available for development.
Urban Areas
The National Water Commission is responsible for the supply of water in urban areas (Montego Bay,
Kingston Metropolitan Area, and Portmore are the largest of such areas). Access to piped potable water
varies across the island. In Kingston, 98% of households (2004 data) have access to piped water while

the same is true for 86% of households in other towns. Those households without piped water rely
mostly on standpipes which are located within 46 meters for half of the households. The island receives
more than enough water satisfy to satisfy its demand as indicated by the yield and production values
above. Albeit, there is a problem of erratic supply especially in urban areas with high population
densities. The problem is a lack of adequate infrastructure to move the commodity from water rich
areas to where it is needed. The recent spells of drought has made this supply even more erratic with
more frequent shortages in urban areas, especially the KMA. In a recent report by the Jamaica Observer,
the acting president of the NWC stated that several sections of the KMA will be receiving water every
third day as water levels continued to dwindle following an island wide drought caused by the El Niño
effect. The Japanese Bank for International Cooperation (JBIC) provided funds to the Japan International
Cooperation Agency (JICA) for financing the KMA Water Supply Rehabilitation Project (2010) which
aimed to increase the availability and the quality of water supply to the Kingston Metropolitan Area.
The project cost £51.7 million of which, the Government of Jamaica provided £15.9 million.
1. The Inter-American Development Bank funded a £85.27 million project to improve the efficiency,
quality and sustainability of the potable water services provided to the Kingston Metropolitan Area. The
project aimed to optimize water infrastructure performance, reduce non-revenue water levels, and
strengthen the National Water Commission.
Rural Areas
Less than half of households (45%) in rural areas have access to piped water (2004 data). Access to
water from standpipes, rainwater tanks, and directly from water bodies (rivers, streams, and ponds)
represents 24%, 23%, and 8% of households respectively. Most standpipes are located over 46 meters
from households with 10% being located more than 900 meters. Sewer services are only provided in
small housing development and represents only 3% of households in rural areas. Pit latrines are very
popular, used by 60% of rural households, and 39% use flush toilets (2001 data). The government

encourages participation from the private sector in the provision of potable water and sewer services
as long as there are benefits to the consumers and the country.
Water use efficiency and conservation
Implementation of Environmental Audits for Sustainable Tourism (EAST) project has resulted in hotels
in the island adopting environmental management systems (EMS).The use of these systems provides
benefits to hotels in the form environmental care considerations in all aspects of operation. The EMS
has water conservation as a key component which provides environmental as well as financial and social
benefits. Reducing water use reduces money spent on purchasing water, operation of and maintenance
requirements of septic tanks, and treating raw water. Since a strain is placed on the environment to
produce potable water, reducing the demand for water reduces the environmental effects which arise
from the use of chemicals, fossil fuel derived energy, and other resources associated with the
production of potable water. The social benefits of water conservation include reduction in water
shortages and government spending for increasing capacity of water mains, sewers, and wastewater
treatment plants.
In 2014, the NIC installed ultrasonic flow meters which has the benefits of high accuracy, ease of
installation, and improved efficiency.
In July 2015 Miya, a wholly owned subsidiary of Arison Investments an Israel based company, signed a
£27.6 million contract with the NWC to improve the efficiency of water systems in the KMA with funds
provided by the IDB. The project will run for 5 years and focus on minimizing the non-revenue water
currently at 54%. This minimization will result in over 70 million litres of fresh water being saved which
can supply water to 500, 000 people.
The Water Resources Authority (WRA) is responsible for ensuring that water resources are used
sustainably. The WRA is also tasked with the preserving ecosystems and the aquatic development. WRA

is responsible for the allocation of water resources which it does using the factors of historical water
rights, availability of water, water quality, and effect on existing wells and downstream users
There exists immense potential for private sector participation in the supply of potable water and
wastewater services in urban areas. Due to the capital intensive nature of providing those services, the
government encourages private investment in new infrastructure and private operation of water
services in an effort to ease the full burden of financing the sector. The Office of Utilities Regulation is
responsible for setting tariffs at such a level that efficient cost levels (capital and operating) can be fully
recovered.
Jamaica, the land of wood wand water, has been experiencing harsh drought spells which have resulted
in scheduled water supplies in the corporate area and some rural areas. There is an excellent
opportunity for companies that can provide expertise and equipment to increase potable water supply.
There is a market for companies that can provide waste water treatment and waste water-to-energy
services as there is a need to increase waste water treatment and generate energy from renewable
sources. The recent spells of drought have also created a demand for greater water use efficiency.
Companies which can reduce water usage without causing significant inconvenience are encouraged
to explore this market potential.

Sustainable Buildings
Jamaica’s current building code by law dates back to the turn of the 20th
century over 100 years ago.
For the last 3 decades, there have been plans and attempts to update the building code but so far the
attempts have been futile. There is an updated building code offered by the Bureau of Standards which
is voluntary. In 2014, it was announced that a new building code was to be passed into law by the end
of the year however, that did not happen.
In 2013, a joint project among the Global Environmental Facility, the United Nations Environment
Program, and the University of the West Indies was launched with the aim of promoting zero-
energy/energy-plus buildings (ZEB/EB). This promotion will be accomplished through combining energy
efficient designs with renewable and efficient sources of energy to satisfy demand and possibly export
excess to the grid.
Energy management systems in buildings, especially commercial entities, are increasing gradually.
More and more businesses are paying for energy audits and implementing the recommendations of
such reports in an effort to reduce high electricity costs. Common implementations include the use of
LED/fluorescent lighting, occupancy sensors, and energy conservation measures. Most common use is
of passive systems which record data from sensors and display it. There is a market for the supply of
devices capable of measuring temperature, humidity, current, voltage, energy (kWh), etc., and
displaying such data in adequate formats.
The construction industry has been quite active over the last few years due to the construction of new
hotels, housing schemes, plazas, etc. There is a potential for export of sustainable building products so
long as they are not cost prohibitive. The government needs to make into law the most recent version
of the building code which at the moment is voluntary. The suitability of the proposed building fabrics
must be assessed. Energy management in buildings present an immense market opportunity. Several

companies in Jamaica have installed energy management systems and others are looking to follow suite
and benefit from reduced electricity bills. Lighting represents a significant portion of energy
consumption and so, the international capabilities of companies that specialise in low energy lighting
should be assessed.

Consultancy
The increasing need for energy-based services has resulted in a growing private sector in the energy
sector. There are many local businesses which provide products for energy efficiency, energy
conservation, and renewable energy implementations. Consultancy in the areas of project design,
planning, and environmental assessment is typically provided by foreign entities (sometimes through
local firms employing foreign expertise) for large scale projects. For smaller-scale projects, local firms
typically provide these services directly (mostly technical). As an example, the Renewable Energy and
Energy Efficiency Department of the PCJ provides energy auditing services to the local population but
enlists the expertise of foreign companies to do tasks such as feasibility assessments.
The demand for consultancy is fairly strong which makes for a market with good potential. Expertise in
project design, planning and environmental assessment, legal, and policy aspects of projects is sought
after by developers and investors in Jamaica. This demand is being satisfied by foreign firms directly
and through local firms/agencies. The market then is a competitive one. Community development
expertise is a niche that can be exploited however, as it hasn’t been in the spotlight.

Specific Exportable Opportunities
Energy
Electricity
The smart grid projects that were implemented in the Orkney’s Electric Future initiative, Northern isles
New Energy Solutions project, Eigg Micro-grid, and Gigha battery and community energy have potential
to be implemented in Jamaica under the Rural Electrification Program (recently renamed National
Energy Solution Company Limited) being run by the government. The program seeks to address the
issue of inaccessibility to electricity in remote rural areas where it has been deemed too expensive and
thus uneconomical to extend the grid to. The government has stated interest in the use of renewable
sources as the fuel for electricity generation. In order to supply a stable power supply using intermittent
sources such as wind and solar, a smart grid is needed as well as some form of storage such as a lithium-
ion battery. As much as 2.5% of the population, or 75,000 persons, live in rural areas without access to
electricity.
The community ownership approach can be used to offset the investment costs and selling power to
the grid can be used to service loans. After the loan is repaid, revenue earned from selling power can
be used to pay dividends to the shareholders and finance the development in other areas.
In general, businesses in the Energy sector, specifically those offering performance optimisation, power
systems software, high voltage equipment and testing, smart meters, automation and control systems
can tap into the utility-scale electricity market albeit there will be competition from Asian businesses
who have relationships with the majority shareholder companies which are headquartered in Korea
and Japan. Another group of businesses with a possible market are those specialising in energy storage
especially those offering pumped storage and battery technology solutions.
Efficiency and Conservation

This is a popular area receiving much attention from the public and private sectors. There are several
companies that provide products and services which makes opportunities fairly weak unless entities
have a competitive advantage such as an attractive finance model or lower costs. The market for
affordable low cost cooling is an exception and should be explored by interested parties.
Biomass
Companies offering products or expertise in biomass boilers as well as combined heat and power
systems as well as companies that can supply equipment, technology, or chemicals to improve the
efficiency of such heating systems can exploit the desire for these systems. While heating is uncommon
in Jamaica, some manufacturers such as those that produce alcoholic beverages require heat and
electricity and currently are looking towards coming off the grid in an effort to reduce operational costs.
Wind
Based on wind studies, there are only a few feasible locations for utility-scale wind farms. To this date,
there is only one identified suitable location (Winchester, Portland) which has not yet been utilised. It
is advisable for companies with the adequate capacity to look into this opportunity. There is potential
in the micro-wind market as, based on the results of large-scale feasibility studies, it is very likely that
there are numerous areas to support a micro-wind market. Companies that can provide feasibility
studies, equipment suppliers, and potential investors should work to examine this potential.
Solar
Several medium to large-scale sites were identified by the government as potential areas for solar
farms. A total capacity of 39MW were identified and envisioned to be operational by 2015/16. To date,
only one has seen some progress with the 20MW PV farm scheduled to be operational by 2016.
Companies that can provide project development services as well as those desiring to create solar farms
should explore this opportunity. To encourage investments, the government, through the OUR, is

offering competitive rates in power purchase agreements to guarantee acceptable economic
performance.
Hydropower
The government and JPS both are looking to exploit more of the hydroelectric potential. Three mini-
scale plants were envisioned to be operational by 2015/16 with sizes 2MW, 8MW, and 10MW but to
this date there is no news about the progress. There are numerous potential sites with potential
between 1MW and 5MW. Past studies that identified them are quite old and there might be need for
more recent studies. It is recommended that interested companies request the most recent studies as
private sector involvement in hydropower is welcomed by the government. Such companies include
utilities with hydropower experience, project developers, and consultancy firms.
Transport
Opportunities in this field lie mostly in renewable fuels, fleet management, and driver training. The
consideration of increasing ethanol share in the fuel mix ratio will increase the demand for ethanol and
therefore feedstock for the process. There will also be an increase in the demand for biodiesel (local
production of which the government is pursing) which is likely to be introduced in the diesel supply
chain as a supplement. Companies with expertise in ethanol and biodiesel production are encouraged
to explore this opportunity with the government. Companies with large fleets can benefit from the cost
savings to be gained from proper fleet management and training of drivers. Increasing fuel prices
continuously increase the desire to increase efficiency and conserve fuel. If the savings are worth the
cost of these services, there are numerous companies ranging from manufacturers to service providers
who are likely to be interested. Currently, hydrogen and electric vehicles are cost prohibitive and so
creates a very small market opportunity, which is not helped by the lack of adequate facilitating
infrastructure.
Water

Arising from more frequent drought spells in the last few years, there is urgent need to tap into
additional water resources and improve water use efficiency and conservation, effects which are
sometimes attributed to climate change. Companies with the relevant expertise are encouraged by the
government to assist in tapping into additional sources and reduce unnecessary and inefficient water
usage.
Waste
There are opportunities for private sector participation in both solid and liquid waste treatment. There
has been talks for the establishment of a waste to energy facility at the largest dump site which has
been proved to be technically feasible from studies done. The government needs to finalise a waste
policy which outlines action for composting, recycling, tipping fees, and other factors that affects the
long term viability of a waste to energy facility. Currently, the majority liquid waste treated is released
into the environment. There then is an opportunity for companies that can provide expertise and
equipment to convert liquid waste into energy. Waste reuse and minimisation are being considered by
the government to assist with the waste-based issues and so present additional opportunities.
Sustainable Buildings
Opportunities here are limited for the export of materials and energy management in buildings has
been covered in a previous sub-section.
Consultancy
The need for expertise and experience in the above mentioned areas were mentioned prior. Expertise
in “unpopular” areas such as community energy development will face less competition from
consultants in other countries such as the USA and Germany which would be the case for energy, water,
transport, and waste.

Funding Streams Available
Inter-American Development bank (IDB)
The IDB has a long history operating in Jamaica. It provides financing solutions for a large variety of
projects in almost all sectors including the energy, water, and transport sectors. Recently, the bank
provided £80 million towards the financing of a project dealing with the operation and maintenance of
the container facility, the deepening of the navigation channel, and the acquisition of new equipment
and systems at the Kingston Container Terminal. The bank also provided non-reimbursable funds for
the training of selected National Water Commission (NWC) staff in establishing a non-revenue
reduction program (£7,054) and the hiring of consulting services to update the Water Resources Master
Plan (£128,000).
Caribbean Development Bank (CDB)
In 2012, of the USD166 million (£106.3 million) in loan approvals, 19% (£19.7 million) were for projects
in Jamaica. CDB funding in Jamaica is used for financing social and economic infrastructure
development such as schools, road and water projects, building more disaster-resistant structures,
student loans, and support for small and medium-sized enterprises. The BNTF in Jamaica is
administered through the Jamaica Social Investment Fund (JSIF) and through locally-led Community
Development Committees and Citizens’ Associations throughout the island.
PetroCaribe Development Fund (PDF)
The PetroCaribe Development Fund provides loan financing to the Ministry of Finance and Planning and
self-financing public bodies for critical development projects. These loans are intended to support the
achievement of the strategic objectives of the Government and to promote the goals of the PetroCaribe

Energy Cooperation Agreement for social transformation and economic development of participating
countries.
During the FY 2013/14, the PDF provided funding of £400 million Jamaica including £2.24 million for
improving the sustainability of a shipping pier, £24.9 million for the expansion of the Wigton Windfarm,
and £460,000) for the establishment of a skills and training centre at the Caribbean Maritime Institute
catering to the future need for qualified professionals in the islands ports.
The PDF also provided funding for a school sanitation project. The project provided for new sanitation
blocks equipped with septic tanks, toilets, urinals and ramps to facilitate access by physically challenged
persons. These facilities replaced pit latrines which long existed at the schools. In addition to the above,
£1.09 million was spent to build communal sanitary conveniences and showers in Kingston and St.
Andrew.
Development Bank of Jamaica
The Development Bank of Jamaica, wholly owned by the Government of Jamaica, has a mandate to
foster economic growth and development of the agriculture and agro-processing, manufacturing,
information technology, mining and quarrying, energy, services and tourism sectors of the Jamaican
economy. The bank aims to provide medium and long-term financing solutions to all entities with an
emphasis on small and medium-sized entities and direct lending for large project in strategic areas. In
the FY 2013/13, the DBJ facilitated the investments of £84.35 million from its lending activities
approving £44.84 million loans itself.
The National Export-Import Bank of Jamaica (EXIM Bank)
The Banks mandate is to help business ventures become viable and competitive in international
markets. Specific focus is placed on SME entities involved in non-traditional exports, such as Tourism,
Manufacturing, Agro-processing, Mining, the Service Sector, Information Communication and
Technology and the Creative Industries. Loans are available for entities wishing to retrofit to

accommodate energy efficiency, energy conservation, and alternative energy sources. Eligible entities
are commercial and industrial users, energy service companies, and manufacturers of energy efficiency
equipment and devices.
The Bank of Nova Scotia Jamaica Ltd.
More commonly referred to as Scotiabank, this entity provides loans to eligible persons desiring to
install solar water heaters, solar panels, wind turbines, hydro-electric plants, or ethanol plants. The
bank provides energy loans with up to 100% financing, repayment up to 5 years, and a maximum
principal of £10,960.

Strategies for Energy Diversity, Efficiency, and Conservation
In an effort to improve the energy mix and reduce energy usage the government has put in place
incentives for the development and implementation of renewable energy, energy efficiency, and
energy conservation technologies. The factors considered for government incentives typically include:
• Growth in electricity generating capacity using renewable resources;
• Growth in electricity generation by renewable resources;
• Growth in the production of ethanol fuels;
• Reduction in cost of the renewable technology; and
• Market sustainability of the renewable technologies.
The incentives provided for those implementations which target one or more of the factors listed above
are either fiscal or financial. Financial incentives include:
• Personal Income Tax credits and deductions for the purchase of various renewable
technologies or alternative fuel vehicles;
• Corporate Income Tax credits, exemptions, and deductions for investments in renewable
technologies;
• Sales Tax (or GCT) exemptions on renewable equipment purchases;
• Variable Property Tax exemptions on the value added by the renewable systems;
• Grants for renewable energy technology demonstration projects;
• Special Loan Programmes for renewable energy investments; and
• Production Tax credits.

Fiscal incentives provided include:
• Direct taxing;
• Full (100 per cent) depreciation in the first year of installation of a project;
• Exemption/reduction in Exercise Duty;
• Exemption from Sales Tax (GCT); and
• Custom Duty concessions on the import of material, parts and equipment;
• Tax subsidies for the production and use of alcohol transportation fuels under the following: (i)
Excise Tax exemption; (ii) Ethanol Excise Tax exemption; (iii) Blenders' Tax credit; (iv) Ethanol
Production Tax credit; or (v) Alternative Fuels Production Tax.
Tax Credit consideration is available for the following eligible services.
• Energy audits;
• Implementation of Energy Conservation Opportunities (ECOs);
• Waste recycling production; and
• Research and development in energy related processes and technologies:

Conclusion and Recommendations
The Jamaican market in general presents a variety of opportunities spanning many sectors. The
enabling environment for private sector participation and activity varies in strength from sector to
sector but the government welcomes and encourages it in all of them. Sector-specific goals have been
set which imply the desire for change and improvement. While progress has been slow in some areas
like sustainable buildings, progress in other areas like energy have been modest (which might be due
to the domino effect high energy prices is having on all sectors). Regardless of the progress, there is
room for improvement, improvement the private sector can help to achieve. There are policy and
regulatory changes that should be made to make individual sectors, such as waste management, more
attractive to investors. Apart from this and competition in some areas such as consultancy, the
opportunities are definitely worth exploring as there is immense potential for the development of
mutually beneficial relationships.

Appendix
Organization Contact Person Interest in Jamaica
AES Stephen Hannay Wind Farm Operations
GS Renewables Thomas Vaughn Heat Pump/ CHP
Windair Systems Ltd Godwin Osigwe Buildings/Energy
Conservation
Cascade Water Wastewater reuse
iPower Energy Services and
Products
Tantallon Systems Energy Management
Carbon Masters Biogas
Capture Mobility Pvt Ltd Sanwal Muneer Vertical wind turbines

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