Mon | Apr 24, 2017

Energy projects to deliver electricity at 12.89 cents

Published:Wednesday | March 25, 2015 | 3:00 AM

Minister of Science, Technology, Energy and Mining Phillip Paulwell says the Government has been presented with three alternative fuel choices for the retrofitting of the combined-cycle plant at Bogue.

At the same time, he said two other energy projects will be delivering electricity supplies at a cost around 12.9 US cents per kilowatt-hour and have been approved by Cabinet.

Regarding the Bogue project, Paulwell said: "There were a number of gas solutions proposed, including LPG, LNG and one to use ethane. Those are the three things on the table, and I gather a determination is being made and will be forthcoming any time now."

The Office of Utilities Regulation (OUR) will indicate its preferred option with a matter of days, he told Wednesday Business.

The Bogue project involves converting the existing power plant in Montego Bay from automotive diesel oil to gas. The plan is to design a 115mw gas turbine co-generation plant.

approved plans

Paulwell also disclosed that the Cabinet approved Jamaica Public Service Company's 190mw LNG plant in Old Harbour, St Catherine, under which the utility projects to supply electricity to the grid at 12.89 US cents per kWh.

He said Cabinet has also approved Alpart's construction of a 140mw plant using ethane, with supplies priced at 12.9 US cents, and that negotiations continue with Jamalco, which plans to build a 50MW co-generation power plant at the plant site at Halse Hall, Clarendon. Paulwell said he expects the Jamalco price to come out at around 12.88 US cents.

Other sources said last night that the prices for the three Bogue options were also in the ballpark of 13 US cents per kWh.

The minister, who was speaking at a PSOJ Forum on Tuesday, also noted that the current pricing was a dramatic improvement over previous offers of 19 to 25 cents per kilowatt-hour being cited two years ago.

avia.collinder@gleanerjm.com