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Central Generation or CG is the electric power production by central station power plants that
provide bulk power. Most of them use large fossil-fired gas or coal boilers, or nuclear boilers
to produce steam that drives turbine generators. In some cases, large hydro is also used. These
enormous plants require costly management of large infrastructures. CG plants are susceptible
to unreliability and instability under unforeseeable events, and are often vulnerable to attacks.
Their limitations, in terms of efficiency and environmental impact as well as stability to sustain
them, have given rise to renewable energy resource options for researchers and policy-makers.
Definition of sector
Reference: http://mset.gov.jm/overview-jamaicas-electricity-sector
Overview of sector
Jamaica’s energy system is highly dependent on imported fossil fuels, petroleum imports
account for over 90 percent of electricity production. This oil import dependency comes at a
high cost. Oil import costs peaked with the global oil price spike in 2008, reaching US$2.7
billion. Import costs remain high and can be expected to increase further as oil prices rise in
the future. Electricity prices for Jamaica’s people have also shot up dramatically in recent
years, reaching a high of US$0.42 per kWh. Consequently, Jamaica is charting a new path to
energy security based on domestic renewable energy sources in order to build an energy
system that is socially, economically, and environmentally sustainable.
Due in part to the central role of the bauxite and alumina industry, Jamaica has a high energy
intensity, consuming an average of over 4,800 kWh per US$1,000 of GDP compared to other
Latin American and Caribbean countries.
The electricity generation sector is Jamaica’s largest petroleum consumer. The average
efficiency for oil and diesel-fired steam generation in Jamaica is low, at 29 percent.
Electricity losses on the grid are declining but still high, at 22.3 percent, of which 10 percent
are technical and the rest are from theft and illegal connections.
The hotel & tourism sector faces high electricity costs due to lighting and air-conditioning
needs (up to 10% of revenue for some hotels).
The National Water Commission is Jamaica’s single largest electricity customer, with
electricity costs accounting for nearly 40 percent of annual revenue. It is currently
undertaking rehabilitation efforts on pipelines and storage reservoirs to reduce energy
consumption.
The Government’s primary objective is to diversify the national energy supply into a mix of
energy sources for energy security. The policy of the Government of Jamaica is that there is
no restriction on the sources of electricity generation and may include solar photovoltaic,
wind, hydro, biofuels/biomass and waste to energy solutions, petroleum coke, coal and
natural gas.
Jamaica Public Service Company Limited is Jamaica’s sole electric utility, serving the
population of 2.7 million.
Here’s a quick glance at how the sector has performed over the last five (5) years…
Total net generation had a marginal decline over the period, falling by approximately 1%. Total
net generation amounted to 4,112 GWh in 2014 compared to 4,137 GWh in 2010.
Transmission and distribution losses as gradually increased from 902 GWh to 1,103 GWh, up
22% over the same time period. Losses amounted to 26.8% in 2014.
Residential electricity customers with 982 GWh followed by Rate 40 (Power Service) with
765 GWh were the main electricity consumers for the last five years. On average, electricity
sales to all rate categories declined by about 1% per annum.
AVERAGE RATE CHARGE (Jamaican Cents per kWh)
Category 2010 2011 2012 2013 2014
Rate 10 (Residential) 2,730.43 3,269.53 3,452.30 3,840.57 4,109.75
Rate 20 (General 2,790.58 3,326.06 3,558.33 3,932.10 4,206.54
Service)
Rate 40 (Power 2,335.35 2,848.56 3,036.14 3,317.74 3,476.37
Service)
Rate 50 (Large Power) 2,153.32 2,656.72 2,814.05 3,079.36 3,183.59
Rate 60 (Street Light) 3,063.57 3,577.46 3,734.06 4,002.22 4,121.98
Other 1,778.58 2,491.70 2,397.98 2,686.95 2,901.14
Note: As at February 2015, the monthly average exchange rate to purchase US$1 was
J$115.70 (Bank of Jamaica)
Analysis also shows that the overall average rate charge was 48% higher in 2014 when
compared to 2010 with Rate 10, Rate 20 and street lighting dominating the rate charges
during the period. Residential customers ended 2014 with an average rate charge of
J$41.10/kWh, Rate 20 with J$42.07/kWh, Rate 40 with J$34.76/kWh, Rate 50 with
J$31.84/kWh and Rate 60 with J$41.22/kWh.
Reference: http://mset.gov.jm/overview-jamaicas-electricity-sector
GDP, infrastructure
No. Households, people, or businesses involved
Energy demand of the sector
Energy supply structure for the sector