Wind Energy Development in Jamaica

Transcription

1 ACCELERATING ADVANCED ENERGY TECHNOLOGIES Wind Energy Development in Jamaica Group Managing Director, Petroleum Corporation of Jamaica

2 Presentation Outline Country Profile Jamaica Case Study: Wind Energy in Jamaica Wigton Windfarm Experience Challenges to implementation Conclusions

3 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 ranked 101 GDP per capita US$4,291

4 Energy Mix Wind, 0.1% Hydropower, 0.3% Coal, 0.6% Petroleum, 94.3% Charcoal, 0.6% Bagasse, 2.0% Fuelwood, 1.9%

5 Petroleum Consumption By Activity ACTIVITY p Road & Rail Transportation 6,075,623 6,247,835 6,373,380 6,079, Shipping 368,356 1,636,028 3,239,911 3,972, Aviation 1,792,975 1,577,438 1,983,596 1,931, **Cement Manufacture 104,791 37,066 14,338 28, Electricity Generation 6,225,912 6,555,261 6,390,163 6,654, Bauxite/Alumina Processing 9,444,053 9,799,121 9,551,792 8,807, Sugar Manufacturing 75,993 40,283 50,055 61, Cooking & Lighting 902, , , , Other Manufacturing 135, , , , Other 186, ,749 83,935 80, TOTAL 25,312,655 27,161,772 28,832,396 28,727,480 27,087,653 Petroleum Refinery 223, , , , ,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)

6 Jamaica s Generation Mix Hydro 14% 3% 2% Wind 19% 36% Steam Diesel 26% Gas Turbines Wind Energy ~ 2% Renewables ~ 5% Combined Cycle

7 Renewable Energy Potential - Jamaica Jamaica s Renewable Energy Target is 10% electricity generation from renewables by 2010 and 15% by 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 MWh Photovoltaics 600w est. 1.0MW

8 WIND STUDY SITES Green Castle 79 m Spur Tree 762 m Blenheim 800 m Wigton 750 m

9 Wigton Wind Farm 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 to the national grid. However despite the successful implementation of the plant the facility experiences technical and economic challenges

10 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)

11 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

12 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

13 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

14 TRACKING A HURRICANE Hurricanes are tracked via various sites on the internet as well as local weather bulletins

15 Challenges - Geography Transportation of new turbines to site Local Geography Mountainous terrain Local Infrastructure Narrow roadways Poor road surfaces Special vehicles needed

16 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

17 Technology Transfer Challenge Maintenance contracts are usually tied to the turbine supplier Training of local technicians is limited Certification programmes by turbine supplier is guarded

18 Challenge Lengthy bureaucracy Procurement processes Cabinet Contracting Process Financial guarantees CDM - Lengthy verification process and long delay period for payment

19 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

20 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

21 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 months. The unit price for wind turbines is still high despite the recent global financial downturn

22 Challenge Financial Viability Global Financial Markets Operations Utility incidents Power Interchange Agreement Contractual Tariffs Penalties

23 New Technologies - Consideration WINDJET PROTOTYPE Specification Traditional Windjet Capacity (MW) Height (m) Diameter (m) Jet ducted; no propellor Variable pitch control Modular and scalable Traditional technology WindJet prototype

24 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

25 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

26 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.

27 Wigton Wind Farm Thank You