Potopsingh

As Jamaica grapples with the challenges of high energy costs, the search for alternatives to expensive oil has been uppermost on the minds of both policymakers and technocrats faced with the daunting challenge.

Since 2005, oil prices have risen by over 300 per cent, driven by speculation, increasing demand, and a number of other factors such as the continued instability in the Middle East wracked by wars and rumuors of wars.

Although relative calm returned to the energy markets last week, with crude oil prices declining, steadily trading below US$70 per barrel, non-oil-producing nations such as Jamaica cannot afford to celebrate as recent record oil prices of up to US$78 per barrel placed pressure on consumers and economies around the world.

The effect of this steep rise has impacted the economy in a myriad ways.

Jamaica depends on imported fuel for over 90 per cent of its energy needs while having no control over the supply and price of the energy it consumes.

Last year, the country imported 26.2 million barrels of oil at an approximate cost of US$1,334.9 million, the single largest imported commodity outstripping all imports and equivalent to nearly 60 per cent of the island's gross domestic product, which is the value of all local production of goods and services.

This situation is clearly unsustainable and has led the country to explore its options perhaps more seriously than in former crises.

PCJ's approach

At the forefront of the local offensive is the Petroleum Corporation of Jamaica (PCJ) which is the entity charged with finding solutions to Jamaica's energy needs, including implementing the National Energy Policy. The PCJ's strategy centres on a three-pronged approach revolving around:

Diversification of the country's energy mix;

Accelerating the renewable energy component;

Energy efficiency and conservation.

Head of the state agency, Ruth Potopsingh, points to a number of initiatives spearheaded by the PCJ geared at improving the country's energy efficiency and conservation, as well as harnessing Jamaica's ample sources of renewable energy such as wind, hydro and solar. The main objective is to achieve a renewable energy target of 10 per cent by 2010 and 15 per cent by 2020, she explains.

The PCJ is currently behind a big push to outfit hospitals islandwide with solar water heaters, re-placing lighting fixtures, as well as replacing inefficient boilers and air conditioning systems, among other initiatives.

Why hospitals?

Hospitals were chosen because they are major users of electricity particularly for water heating, Potopsingh said in explaining the main reason for the focus. Other factors involve socio-economic considerations with implications for reducing health care costs, especially those involving females who comprise the bulk of the lower income population locally.

"We intend to implement a range of energy-efficiency measures including solar water heaters in four major hospitals under a project funded by the Government and the UNDP. And we have also undertaken audits in 22 other hospitals and 10 health centres across the island aimed at determining the major factors contributing to high energy usage in these institutions," Potopsingh noted, adding that some of the projects have already been completed and others had been put to public tender.

She explained that Jamaica has conditions compatible with the maximum utilisation of solar energy which is used mainly in solar water heating. It is estimated that a solar water heater system, which is properly designed, installed and maintained can perform adequately for up to 10 years.

Emerging strategy

Industry, Technology, Energy and Commerce Minister, Phillip Paulwell, is adamant that such initiatives will not merely be showpiece projects but form part of an emerging comprehensive energy strategy aimed at maximising the potential of renewables and promoting conservation locally.

"This effort is part of a range of initiatives to meet our energy needs and conserve. We will be staying the course and we won't ease off because there is a reprieve in energy prices. It will take us many years to become far more efficient in our use and generation of energy so our focus must be relentless," said Paulwell.

While the savings in energy costs is dependent on individual usage patterns, overall residential savings average about 2,000 kilowatt hours of electricity per year, the PCJ estimates, with the financial savings for institutions such as hospitals and hotels being much greater. Added to this is the benefit to society in terms of eliminating investments for additional generating capacity, as well as savings from eliminating the recurrent foreign exchange energy costs and in the reduction of greenhouse gas emissions which harm the environment.

Senior Project Engineer Claon Rowe notes that so far, six solar water heating systems totalling 4,500 litres have been installed at the Bustamante Hospital for Children. These supply hot water to the nursery, the dietary department and seven wards. At the Princess Margaret Hospital, another solar water heating system of 3,800 litres is currently being refurbished, and at the Cornwall Regional Hospital another solar water heater of 15,000 litre capacity will shortly be installed.

Power factor correction equipment, designed to reduce electricity demand charge, is now being installed at the Bustamante Hospital, and a similar project for the St. Ann's Bay Hospital will go out for tender shortly, Rowe said.

Rowe also notes that the main objective of the energy audit programme is to provide the basis for the development of a comprehensive energy investment plan for the health sector. This plan will provide a detailed cost/benefit analysis to inform further energy rationalization. That plan has now been completed and will be shortly be reviewed by the various stakeholders including the Ministry of Health. The energy efficiency programme currently being undertaken in the hospitals is funded by the UNDP and the government of Jamaica, with the UNDP contributing a total of US$505,000 and the GOJ contributing J$70 million.