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Viewing cable 09KINGSTON626, JAMAICA ENERGY MINISTRY: PLANNING AND CHANGING, AGAIN

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Reference ID Created Released Classification Origin
09KINGSTON626 2009-08-24 18:15 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Kingston
VZCZCXRO9910
RR RUEHGR
DE RUEHKG #0626/01 2361815
ZNR UUUUU ZZH
R 241815Z AUG 09
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 7968
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 KINGSTON 000626 
 
SIPDIS 
SENSITIVE 
 
STATE FOR WHA/CAR (VDEPIRRO) (WSMITH) (JMACK-WILSON) 
WHA/EPSC (MROONEY) (FCORNEILLE) 
EEB/ESC/IEC (GGRIFFIN) 
EEB/ESC/IEC/EPC (MMcMANUS) 
INR/RES (RWARNER) 
INR/I (SMCCORMICK) 
SANTO DOMINGO FOR FCS AND FAS 
TREASURY FOR ERIN NEPHEW 
EXPORT IMPORT BANK FOR ANNETTE MARESH 
USTDA FOR NATHAN YOUNG AND PATRICIA ARRIAGADA 
OPIC FOR ALISON GERMAK 
 
E.O. 12958:  N/A 
TAGS: ENRG EINV ENV ECON ETRD EIND EMIN PINR IADB IBRD
IMF, TRSY, XL, JM 
SUBJECT: JAMAICA ENERGY MINISTRY: PLANNING AND CHANGING, AGAIN 
 
REF: A) KINGSTON 294 
B) KINGSTON 601 
C) KINGSTON 427 
1.  (SBU) SUMMARY: Marcia Forbes, the Permanent Secretary (PS) in 
the Ministry of Energy, resigned on August 20 after serving only 
four months.  She became PS when Minister James Robertson took over 
the portfolio in April from then-Minister Clive Mullings (reftel A). 
 The PS position has yet to be filled, but the job was offered to 
former Financial Secretary Sharon Crooks (Reftel B).  Jamaica's 
energy sector is in dire need of improvement and sound guidance; a 
pattern of changing leadership will only further delay desperately 
needed reform.  Forbes worked aggressively to publish Jamaica's 
National Energy Policy (NEP) 2009-2030 in July (Reftel C), but will 
no longer be there to implement it.  END SUMMARY. 
 
PS Saw New Post As Conflict of Interest 
--------------------------------------- 
 
2. (SBU) Robertson had brought Forbes, a dedicated and talented 
technocrat, from the Ministry of Telecommuniations to assist at the 
Ministry of Energy.  Given the range of challenges facing the energy 
sector and the extensive amount of reform that is needed, it is 
surprising that the Jamaica Labour Party (JLP)-led government would 
undergo another leadership change at the PS level, particularly as 
the PS recently released the NEP outlining future plans and goals. 
Forbes told Emboff that she was to be transferred to the Office of 
the Prime Minister to serve as Director General for Information, 
Telecommunications and Special Projects.  Forbes and her husband own 
a large multi-media company in Jamaica; she viewed the new posting 
as a direct conflict of interest.  She resigned instead of taking 
the job. 
 
Who Will Fill PS Job? 
-------------------- 
 
3. (SBU) Crooks does not have a technical background related to 
energy and is likely to decline the PS position.  There is 
speculation that she may be seeking a position abroad with a 
multilateral institution.  Another possible candidate for the 
position is Hillary Alexander, Chief Technical Director of the 
Public Sector Modernisation Division (PSMD) in the Office of the 
Prime Minister. 
 
National Plan 
------------- 
 
4. (SBU) The 90-page NEP includes an overview of Jamaica's energy 
sector and outlines seven major goals, but offers few specifics.  In 
substance, the stated policies closely mirror those from the 
2006-2020 Jamaica Energy Policy "Green Paper."  Notable changes from 
Green Paper include a decision to pursue developing liquefied 
natural gas (LNG) infrastructure and imports, and openness to 
small-scale nuclear power when it becomes feasible.  In this 2009 
publication, Robertson has demonstrated the ability to mobilize his 
planning staff and stakeholders to identify the major long-term 
goals for Jamaica's Energy Sector while supporting his short-term 
agenda. 
 
Energy Sector Dependent on Oil 
------------------------------ 
 
5. (SBU) Jamaica is almost completely dependent on imported 
petroleum and nearly a third of the country's installed capacity is 
nearly 40 years old (Reftel C).  The electricity tariff allows all 
fuel costs to be passed on to the consumer, resulting in 
disincentives for production efficiency and source fuel 
diversification (Reftel C).  The high import bill resulting from the 
oil prices of 2008 for the first time eclipsed export earnings. 
Jamaica's Greenhouse Gas Intensity has been among the highest in the 
hemisphere, credited largely to bauxite/alumina--a sector that has 
nearly collaped during the current economic downturn. 
NEP's Goals 
----------- 
 
6. (SBU) In light of this background and with and the United Nations 
Climate Change Conference in Copenhagen on the horizon, the 
published energy sector goals of the Government of Jamaica (GOJ) 
are: 
 
KINGSTON 00000626  002 OF 002 
 
 
 
-- Goal 1 - Conservation and efficiency: estimates 12 percent of 
gains by 2020 through these measures; 
 
-- Goal 2 - Modernize and expand energy infrastructure: 40 percent 
of generation capacity is over 30 years old.  Jamaica would like to 
attract the necessary investment to improve production efficiency; 
 
-- Goal 3 - Renewable energy: wind and hydro currently account for 5 
percent of energy.  By 2030, the goal is for renewables to account 
for 20 percent; 
 
-- Goal 4 - Long-term sustainable growth: through increased 
diversification of fuel source and development of any indigenous 
sources, Jamaica would like to improve energy security and see 
natural gas contributing 25 percent to the energy supply by 2020 
(versus zero today); 
 
-- Goal 5 - Governance/regulatory structure: general agenda as 
needed to support long-term policy.  Hedges progress on net-metering 
legislation by calling for further study; 
 
-- Goal 6 - Government leads by example: the GOJ has made progress 
in this area by conducting some energy audits of public buildings, 
and now would like to follow-up and implement the recommendations. 
(NOTE: The GOJ signed a USD 350,000 grant with the Intern-American 
Development Bank on August 21 to finance programs to reduce 
government spending on energy in the public sector END NOTE); 
 
-- Goal 7 - Industrial eco-efficiency: A broad-based goal to improve 
energy utilization in the private sector; 
 
7. (SBU) COMMENT: Although probably not the goal of the high-level 
publication, Robertson has set a relatively low bar for specific 
items for which he can be held accountable.  Where the plan does get 
into specifics, there appear to be some conflicts, based on 
discussions Emboffs have had with Robertson.  For example, in 
private meetings he indicated that Net Metering, a common policy 
critical to fostering distributed generation which has been talked 
about here for at least three years, was a "done deal;" yet, the 
report calls for more study.  Oddly, to support the goal of 
increasing renewable energy, renewable energy plants that generate 
less than 15 megawatts are called for on a not-to-compete basis, 
with only those generating more than 15 megawatts requiring a 
competitive process, through the independent Office of Utility 
Regulation (OUR).  Such a provision probably only serves to benefit 
the state-owned Petroleum Corporation of Jamaica (PCJ), which owns 
the existing Wigton Wind Farm (Reftel C). 
8. (SBU) With a large share of the energy demand related to tourism 
and the increase of eco-minded tourists, it was surprising the 
policy did not lean more heavily on that sector through efficiency 
improvements, sustainable construction minimum requirements, and 
no/low-carbon transportation.  Additional, unmentioned opportunity 
exists to support "green jobs."  Energy auditors have expressed 
frustration at the unwillingness of businesses to value their 
services.  There are qualified auditors on the island, and their 
projects make financial sense, but the business community is not 
willing to pay for such services because they are not acquainted 
with the technology and do not realize the financial gains that 
could be derived.  This knowledge gap could be exploited by 
Robertson to create awareness and help reduce energy consumption. 
9 (SBU) Robertson has been in his post since April, and will soon 
need to show some solid deliverables.  His predecessor, Clive 
Mullings, was able to successfully implement an island-wide roll out 
of E-10 ethanol blend (a 10 percent ethanol and 90 percent gasoline 
blend) at gas stations, but as impressive as this was, it was not 
enough to allow him to keep the portfolio.  Robertson's task will be 
made even more difficult, as the new PS, once appointed, will take a 
few months to get up to speed in the Ministry.  Time is of the 
essence for the Minister and for Jamaica's beleaguered energy 
sector. 
PARNELL