Garth Rattray

The world's population is growing. Globalisation has opened up hitherto (geographically, politically and ideologically) isolated places to travel for business and pleasure. Competitive and diverse job markets necessitate frequent long-distance commuting and precipitate lengthy, serpentine traffic lines. The demands of 'modern' living and the need for creature comforts have put a tremendous strain on the world's energy resources. The economic boom in India and (especially) China is accelerating the depletion of our uncertain energy stores.

Programme for energy

Consequently, every nation, including Jamaica, needs a programme of energy conservation to significantly reduce consumption of fossil fuel. This energy source - believed to be formed by the fossilised remains of dead plants and animals that have been heated and pressurised within the Earth's crust over hundreds of millions of years - is not only non-renewable, it is expensive and extremely polluting.

Jamaica's innumerable motor vehicles congest our streets day and night. Air-conditioned, multi-storey administrative offices; hillsides bejewelled by opulent illuminated residences, energy-hungry factories and businesses all go to prove that we consume far more than we produce. Our penchant for First-World amenities on a Third-World budget (that landed us deep in generation-spanning debt) belies the fact that Jamaica's energy bill is subject to volatile crude oil prices (now more than US$110 per barrel).

Utilise renewable sources

The Government is making an organised effort to utilise renewable energy sources, reduce our dependence on fossil fuels, reduce our energy bill and reduce our production of pollutants and greenhouse gases. We have already embarked on a long-term programme to use ethanol (from locally grown sugar cane) not only to replace methyl tertiary butyl ether but also to increase the percentage of ethanol in fuel from 10 per cent (E10) to 85 per cent (E85) over time. This will provide a cleaner burning fuel and save us vital foreign exchange. Additionally, the National Housing Trust is offering low-interest loans for the purchasing of solar water heaters and solar panels. And, even now, regulations dictate that buildings must be designed for energy efficiency.

I found the Green Paper before Parliament, The Jamaica Energy Policy 2006-2020, to be very informative. It laments that "Jamaica has one of the highest energy intensity rates in Latin America and the Caribbean". In 2004, two-thirds of every dollar earned through exports went to pay for oil! Electricity generation (20 per cent of which is 'system losses') and road transportation accounted for almost 50 per cent of petroleum consumption. This figure is expected to grow by three to four per cent per annum in the medium term.

Experimenting for energy

We have therefore begun experimenting with renewable energy sources like the Wigton wind farm, six rehabilitated mini-hydro plants, two demonstration photovoltaic housing schemes and an ethanol plant. In addition to encouraging natural gas and coal in our fuel mix, the Green Paper recommends that we consider oil exploration.

With the exception of LPG, the government may consider increasing the (nominal) tax on fuel to "enhance efficiency and conservation" and for a road maintenance fund. Low-import duties on diesels and vehicles with smaller engine sizes encourage their importation but, in my view, duty based on the manufacturer's litres-per-kilometre rating is a better determinant of fuel efficiency.

Additionally, the Green Paper speaks to a better public-private sector transport balance, the introduction of hybrid and flexi-fuel vehicles and a (long overdue) 'park- and-ride' programme. Government may explore introducing some competition into the electricity market and promulgate the need for more efficient electricity generating plants and energy distribution systems. It also plans to encourage renewable energy education, use, research, development and investment.