VZCZCXRO3501
RR RUEHGR
DE RUEHKG #0286/01 0951209
ZNR UUUUU ZZH
R 041209Z APR 08
FM AMEMBASSY KINGSTON
TO RUEHC/SECSTATE WASHDC 6159
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHSJ/AMEMBASSY SAN JOSE 1979
RUEHBR/AMEMBASSY BRASILIA 0099
RUEHCV/AMEMBASSY CARACAS 0524
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 KINGSTON 000286 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CAR (JTILGHMAN) 
WHA/EPSC (VDEPIRRO) 
 
SANTO DOMINGO FOR FCS AND FAS 
 
E.O. 12958:  N/A 
TAGS: ENRG SENV ECON ETRD JM XL
SUBJECT: JAMAICA: ELECTRIC ABOUT RENEWABLE ENERGY 
 
REF: A. KINGSTON 263 
 
¶B. KINGSTON 277 
¶C. 07 KINGSTON 1614 
 
SUMMARY 
------- 
 
¶1. (SBU) Minister of Mining, Energy and Telecommunications Clive 
Mullings is focusing the country's attention on support for 
renewable energy (reftels).  A few ethanol /biofuel projects are 
currently being negotiated by the Government of Jamaica (GOJ), and 
the Office of Utilities Regulation released a Request for Proposals 
(RFP) for renewable energy specifically to reduce the country's 
dependence on imported petroleum. The RFP calls for increasing the 
percentage of energy supplied to the national grid from renewable 
energy sources from the current level of 5.5 percent to 10 percent 
by 2010 and 15 percent by 2015. This goal is in line with the 
Minister's recent pledge at the Washington International Renewable 
Energy Conference (WIREC). 
 
---------------------------------- 
Renewable Energy is the "End Game" 
---------------------------------- 
 
¶2. (SBU) Addressing a group of investors on March 19 at a local 
brokerage house, Mullings said Jamaica needs to focus on energy 
security and reducing the country's dependence on imported 
petroleum.  Mullings stressed that the "end game" had to be 
renewable energy.  Mullings outlined a number of renewable projects 
that the country was pursuing to solve the current energy crisis. 
Chief among these were the roll out of E-10 (ethanol) at local pumps 
by the end of the year; the conversion of waste to energy; the 
expansion of the 20 megawatts Wigton Windfarm; and the possible 
creation of a solar panel manufacturing plant funded by the Canadian 
government and a Chinese firm.  Mullings said that by 2010 the 
country should reach its target of deriving 10 percent of its power 
from renewable energy, a pledge he recently made at the WIREC 
Conference. Mullings reiterated the importance of focusing on 
renewable energy and moving away from being a country of one-off 
test projects to a country that implements projects on a wide 
scale. 
 
----------------------------------- 
Diversify, Regardless of Oil Prices 
----------------------------------- 
 
¶3. (SBU) In response to how Jamaica would finance the projects, the 
Minister said it was crucial for technological innovation and 
private sector investors to be the driving force for solutions.  He 
said that with a number of developed countries approaching the 
maximum level of emissions under the Kyoto Protocol, a significant 
amount of capital was actively seeking renewable projects in 
developing countries to derive carbon credits.  Mullings suggested 
that even if oil fell to USD 20 tomorrow, the focus would still be 
on renewable energy. 
 
¶4. (SBU) Mullings said that although Jamaica has had some positive 
results in its ongoing oil exploration, any potential discoveries 
would not deter the plan to diversify Jamaica's energy supply. 
Mullings said the rise in oil prices has reduced the demand for 
electricity on the island.  He suggested the rise in oil prices has 
been mitigated by the benefits derived from the PetroCaribe 
Agreement with Venezuela.  As oil prices rise above USD 100, over 50 
percent of the value of oil purchased from Venezuela is converted to 
a 20 year, one percent loan. 
 
------------------- 
Ethanol and Biofuel 
------------------- 
 
¶5. (SBU) A Brazilian company, Infinity BioEnergy was selected April 
2 by the GOJ to take over Jamaica's indebted sugar estate assets 
(reftel B). Infinity BioEnergy, a major producer of cane-based sugar 
and ethanol, would likely take over 70,000 acres under the deal. In 
another project, the U.S. firm Biomass Investment Group (BIG) hopes 
to assume public debt in exchange for inactive land that was once 
used for sugar cane production.  BIG proposes to plant e-grass on 
the land for use as a feedstock for ethanol production.  BIG is 
hoping to secure 30,000 acres from the GOJ, believing each parcel of 
10,000 acres could grow enough feedstock to generate 75 megawatts of 
power in Jamaica. 
 
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KINGSTON 00000286  002 OF 002 
 
 
Renewable Energy RFP 
-------------------- 
 
¶6. (U) The Office of Utility Regulations released its RFP seeking 
proposals to supply renewable energy to the national grid on April 
¶1.  The scale of the projects must be at least one megawatt, and 
firms must be able to build, own and operate (BOO) their generation 
facility for the next 20 years.  The GOJ is seeking at least 73 MW 
of capacity to be supplied to the grid on a continuous basis. 
Proposals can be submitted in any category of renewable energy 
generation including: hydro, wind, biomass, and solar. 
 
----------------------- 
Culture of Conservation 
----------------------- 
 
¶7. Mullings also has addressed the issue of conservation in Jamaica, 
suggesting that the country needed to build a culture around 
conservation, with the country's tourism industry being a major 
player.  Jamaican hotels recently implemented a new per-  room tax 
to help defray the cost of rising fuel prices (reftel A). 
JOHNSON