Wind Energy Development in Jamaica - · PDF fileWorld Bank Energy Week 2009 Ruth Potopsingh ACCELERATING ADVANCED ENERGY TECHNOLOGIES Wind Energy Development in Jamaica Ruth Potopsingh

World Bank Energy Week 2009 Ruth Potopsingh

ACCELERATING ADVANCED ENERGY TECHNOLOGIESACCELERATING ADVANCED ENERGY TECHNOLOGIES

Wind Energy Development Wind Energy Development in Jamaicain Jamaica

Ruth Potopsingh Group Managing Director, Petroleum Corporation of Jamaica


Presentation Outline

• Country Profile – Jamaica• Case Study: Wind Energy in Jamaica –

Wigton Windfarm Experience• Challenges to implementation• Conclusions


Country Profile - Jamaica

• Population of 2.7 million• No proven commercial petroleum reserves

to date• Over 90% dependent on imported

petroleum• Inflation rate 2008 of 16.8%• Balance of payment deficit –

US$2,447.2million (August 2008)• HDI of 0.736 – ranked 101• GDP per capita – US$4,291


Charcoal, 0.6%

Bagasse, 2.0%

Fuelwood, 1.9%

Petroleum , 94.3%

Coal, 0.6%

Wind, 0.1%Hydropower,

0.3%

Energy Mix - 2008


Petroleum Consumption By ActivityACTIVITY 2004 2005 2006 2007 2008pRoad & Rail

Transportation 6,075,623 6,247,835 6,373,380 6,079,884 5803724

Shipping 368,356 1,636,028 3,239,911 3,972,826 2805615

Aviation 1,792,975 1,577,438 1,983,596 1,931,222 1598706

**Cement Manufacture 104,791 37,066 14,338 28,477 26004

Electricity Generation 6,225,912 6,555,261 6,390,163 6,654,238 6274571

Bauxite/Alumina Processing 9,444,053 9,799,121 9,551,792 8,807,899 9392039

Sugar Manufacturing 75,993 40,283 50,055 61,491 52926

Cooking & Lighting 902,939 924,730 963,531 912,116 931853.4

Other Manufacturing 135,991 163,261 181,695 198,995 128678

Other 186,022 180,749 83,935 80,332 73537

TOTAL 25,312,655 27,161,772 28,832,396 28,727,480 27,087,653

Petroleum Refinery 223,266 164,247 331,788 362,947 355,076

GRAND TOTAL 25,535,921 27,326,019 29,164,184 29,090,427 27,442,729

SOURCE: Bauxite/Alumina Companies, Caribbean Cement Company, Jamaica Public Service Company, Independent Private Power Companies, Refinery Statistics, Marketing Companies' Sales(Information provided by the Ministry of Energy)


3% 2%

36%

26%

19%

14%

Jamaica’s Generation Mix Hydro

Wind

Steam

Diesel

Gas Turbines

Combined CycleWind Energy ~ 2%Renewables ~ 5%


Renewable Energy Potential - Jamaica

Source Existing Capacity Estimated Potential

Wind 20.7 MW 60 MW

Hydropower 23.8 MW (installed) 81.7 MW

Bagasse 940,000 boe 68 MW

Bio ethanol 220 mgl (Imported Feedstock) 236 mgl (local feedstock 16mgl for local market)

Waste-to-Energy

55 MW

Biogas 840-6,300MWh estimated TBD

Solar 3 MWh est. 75-100 MWh

Photovoltaics 600w est. 1.0MW

Jamaica’s Renewable Energy Target is 10% electricity generation from renewables by 2010 and 15% by 2020.


WIND STUDY SITES

Spur Tree

762 m

Spur Tree

762 mBlenheim

800 m

Blenheim

800 mWigton

750 m

Wigton

750 m

Green Castle

79 m

Green Castle

79 m


• Wigton Windfarm Limited a state owned company owns and operates a 20.7MW wind farm in Manchester, Jamaica.

• Wigton Windfarm was commissioned in April 2004 with twenty-three 900kw turbines

• Capacity factor of 30% (normal capacity for wind farms worldwide)

• The wind farm supplies electricity tothe national grid.

• However despite the successful implementation of the plant the facility experiences technical and economic challenges

Wigton Wind Farm


Wigton Wind Farm• Wigton was financed with 62% debt, 12% equity

and 26% grant• Entered into a 20 year Power Purchase

Agreement with the Jamaica Pubic Service Company (JPSCo.) to sell all the electricity generated by the wind farm to the power company

• US$5.5cents/kwh• Constructed in 7.5 months• Registered CDM Project (March 19, 2006)


Planned Expansion – Newer Technology

• 18MW planned expansion project• Nine 2MW V80 wind turbines• Negotiations ongoing

• Financing• Construction

• Conclusion of all transactions by April 2009

• Expected implementation March 2010


Challenges - Policy• No Renewable Energy Legislation in Jamaica• Strategy - discrete projects vs. total national

target• Size of orders for machines generally

unattractive to wind turbine manufacturers (eg. nine turbines needed for Wigton Windfarm expansion project)

• Incomplete wind mapping exercise – site specific information lacking

• Issues of data sharing/selling • Government vs. Private Sector• Should Government sell data or provide at

no cost


Challenges - Location

• Geographic Location• Jamaica is in the Hurricane and earthquake zone• Construction standards have to be appropriate

• Tropical model class 1 turbines used - rated up to a maximum of 69 m/s (248 km/h)

• No heaters• Additional cooling

• Radiator on nacelle top cools generator only• Heat exchanger for gear oil cooling plus additional oil

cooling radiator with fan• turbine heights lower

• Management for hurricane warning systems• Special disaster mitigation and response plan

• Hurricane Shutdown and Start up procedures


TRACKING A HURRICANE• Hurricanes are tracked via various sites on the internet

as well as local weather bulletins

http://www.space.gs/weathernews/08/28-aug-2008-1.html


Challenges - Geography

• Transportation of new turbines to site • Local Geography

• Mountainous terrain• Local Infrastructure

• Narrow roadways• Poor road surfaces

• Special vehicles needed


Challenges• Additional Costs

• Wind regime in Jamaica more favourable in areas where the main public utility infrastructure is limited. Therefore additional infrastructure has to be incorporated into the project. For example construction of a substation.

• Tariffs • No special legislation governing renewable energy• Office of Utilities Regulation (OUR) provides an

indicative cost• rates from public utility negotiated on individual sites• Final rates approved by the OUR

• Negotiation prowess informs the commercial agreement with the Public Utility Company

• Wind energy development was new to the Caribbean therefore it was difficult to negotiate rates as there was no standard/precedent


Challenge

• Technology Transfer• Maintenance contracts are usually tied to the

turbine supplier • Training of local technicians is limited• Certification programmes by turbine supplier

is guarded


Challenge

• Lengthy bureaucracy• Procurement processes• Cabinet • Contracting Process• Financial guarantees• CDM - Lengthy verification process and long

delay period for payment


Challenge• Access to Land

• Land ownership had to be established • Overhead line route had to be determined as

the transmission lines had to be installed along parochial roads and private properties.

• 20 year lease arrangement executed with land owners to erect the wind turbines.

• Some farmers on-site were compensated for crop damage during the construction and commissioning of the wind farm.

• Agreements were signed mandating that farmers desist from further use of the land


Challenge• PERMITS/APPROVALS

• An Environmental Impact Assessment (EIA) report had to be prepared.

• NEPA reviewed EIA then issued permit for construction

• Mining permit • Dynamite blasting procedure for civil works

(foundations)• Manchester Parish Council Building Permit• Power Generating License from Office of Utilities

Regulation (OUR)• Local stakeholder consultations


Challenge

• Supply of Wind Turbine Equipment • The demand on the world scene for wind

turbines has increased dramatically over recent years and as such the waiting period for the delivery of turbines has moved from less than 1 year to periods of 18 – 24 months.

• The unit price for wind turbines is still high despite the recent global financial downturn


Challenge

• Financial Viability• Global Financial Markets• Operations

• Utility incidents• Power Interchange Agreement

• Contractual• Tariffs• Penalties


New Technologies - Consideration

• Jet ducted; no propellor• Variable pitch control• Modular and scalable

Traditional technology

WindJetprototype

Specification Traditional WindjetCapacity (MW) 1.6 14Height (m) 122.2 38.1Diameter (m) 82.6 30.5

WINDJET PROTOTYPE


WINDJET ADVANTAGES OVER EXISTING TECHNOLOGIES

• Up to 7 times more energy density per land area • Units have smaller dimensions for equivalent rated

power

• 25% capital cost

• Less maintenance

• Operates at lower cut in speeds

• Shorter delivery times

• Components ship in standard sized containers Multiple WindJets per Tower


Conclusions – Role of Multilateral

• Policy• Site specific or macro country approach

• How can the arguments for or against be advanced through shared information, experiences, protocols. Much RE policy is advanced from industrialized countries

• What protocols could be used in Developing Countries as well as Economies in Transition given their unique situations?

• Development of Tariff Rate Structures for Renewable Energy• Legislative Framework

• Technology• Risk Assessment of new technologies• An approach for allowing energy technology to be accommodated

in Developing Countries whereby investment and infrastructure risks do not leave these countries worst off


Conclusions – Role of Multilateral

• Capacity Building• Negotiation skills for Commercial Contracts for RE is

weak. This affects fair pricing, leads to inequities; penalties and profits; technology transfer.

• Training in RE impact analysis: measurement of efficiencies, project outputs and development results

• Research and Development• Increase facilitation of R&D through

Developed/Developing Country counterpart studies and living laboratories.

• Knowledge Management – RE Chat line to discuss newer technologies.


Wigton Wind Farm

Thank You

Documents

Wind Energy Development in Jamaica - · PDF fileWorld Bank Energy Week 2009 Ruth Potopsingh ACCELERATING ADVANCED ENERGY TECHNOLOGIES Wind Energy Development in Jamaica Ruth Potopsingh