Ross Sheil, Staff Reporter

A cornerstone of government attempts to encourage renewable energy in Jamaica, the US$10-million (J$682 million) national energy fund, remains behind schedule.

Meanwhile energy costs continue to rise with gas prices reaching a record level, yesterday.

Minister of Industry, Technology, Energy and Commerce, Phillip Paulwell, tabled the fund in Parliament last June, to be launched in the 2006/2007 financial year to support projects involved in renewable energy and energy saving.

However,citing a lack of interest by local financiers, the Ministry of Industry, Technology, Energy and Commerce has abandoned the original plan of a private-public sector partnership to instead source funds via loans made to Jamaica by Venezuela under the Petrocaribe Initiative.

It was the intention of policy-makers, made clear in the 2006 national energy policy, that the fund would stimulate a market for similar lending.

Sidelined

Work on the fund was also sidelined by competing priorities within the ministry.

"We were distracted by having to fill places on boards for 20-odd agencies and we now have that under control," said Reginald Buddan, senior director of policy, planning, projects and Research in the ministry. "Our next issue is to be focusing on the institutional framework to start the fund and we are going to be focusing on it over the next couple of weeks."

He said a board is to be recruited to review loan applications in addition to a small administrative staff to be based at the Development Bank of Jamaica. Staffing and structural arrangements should be completed by July, he said, after which the fund would be launched and the public invited to apply for loans.

According to outgoing president of the Jamaican Solar Energy Association, Mikael Oerbekke, the fund could help popularise renewable energy and energy saving.

"If the fund is in place that will finally give the opportunity for low-cost financing that is available in other countries and spearheaded a lot of investment," said Mr. Oerbekke. "However, what really matters is the interest rates offered and if they will be low enough to encourage people."

The national oil import bill rose from US$1.34 billion in 2005 to US$1.734 billion last year. Prices at the Petrojam refinery rose yesterday to $56.18 for a litre of 87 octane and $57.62 for a litre of 90 octane.

ross.sheil@gleanerjm.com