New terms OK'ed in JPS deal
Published:Thursday | October 20, 2011 | 12:00 AM
The Government says it has successfully renegotiated some of the terms of the Jamaica Public Service Company Ltd (JPS) All-Island Electricity Licence in keeping with the National Energy Policy framework crafted by the Ministry of Energy and Mining.
"The renegotiation forms part of the Government's strategy towards ensuring the country's energy security, development of renewable energy sources, improvements in energy efficiency and strengthening the regulatory framework to facilitate investments in the energy sector," the energy ministry stated in a release.
The new terms of the licence are to allow:
a) The implementation of power wheeling, whereby a self-generator can generate at one location and transport it for use at another location for its own benefit. The cost for use of the electric grid and the price to be paid by self-generator is to be determined by the Office of Utilities Regulation (OUR).
b) Introduction of net billing. Small producers of electricity who are also JPS customers will now be able to receive remuneration for self-generated electricity that is supplied to the grid. To this end, the OUR released the JPS's standard offer contract for the purchase of available intermittent energy from renewable facilities up to 100kW on the basis of net billing.
c) Movement from a cap of 15MW for renewable-energy generation to the electric grid without being subject to competitive tendering. The new provisions allow for new generation capacity of up to 25MW to be connected to the grid and sell electricity to JPS without being subject to competitive tendering.