Public Private Partnership in Action  Launch of Jamaica’s participation in the UN Secretary General’s Sustainable Energy for All (SE4ALL) initiative  July 31, 2012  Jamaica Conference Centre  Presenter: Michelle Chin Lenn – Project Manager

AGENDA Wigton Overview Current Renewable Energy context in Jamaica Opportunities and barriers to Sustainable Energy for All (SE4ALL) Role of public-private partnership ▫ Examples and success stories

 WIGTON OVERVIEW

WIGTON WINDFARM Wholly owned subsidiary of the Petroleum Corporation of Jamaica Agency of the Ministry of Science, Technology, Energy and Mining (MSTEM) Incorporated April 2000 Aim is to be a catalyst for renewable energy Owns and operates 38.7 MW windfarm complex

LOCATION OF WIGTON

Wigton I 20.7 MW Commissioned NEG Micon (NM52) WTGs Rated 900 kW each Wigton II 18 MW Commissioned Vestas -V80 WTGs Rated 2MW each

 RENEWABLE ENERGY CONTEXT IN JAMAICA

JAMAICAN ENERGY SCENARIO  Regulated Electricity Sector  Liberalised Generation Market  Monopoly on Transmission and Distribution  Heavy Reliance on Imported Fossil Fuels  High exposure to price volatility  ~94% - Oil Based Electricity Generation  Electricity Grid  943 MW installed  64.3 MW Renewables (Wind & Hydro)  7% Renewables by installed capacity  ~5% Renewables by electricity contribution

Source: JPS, Jamaica Power Summit, April 20, 2012

RENEWABLES IN JAMAICA  Wind is 2.7% of annual electricity generation  From MW total installed  3 wind farms  Munro  Wigton 1 & Wigton II  Hydro is 3.4% of annual electricity generation  From 22.4 MW total installed  7 Hydro Plants  Less than 5 MW each

RENEWABLES – POLICY TARGETS  1995 Energy Policy followed by National Energy Policy:  Diversification of fuels  Development of renewable energy resources  Increase Jamaica's renewable energy use from ~6.1% in 2009 by MWh to  11% by 2012  12.5% by 2015  15% by 2020  20% by 2030  Target revised to 30% by 2030

Sustainable Energy for All (SE4ALL) - Objectives

 OPPORTUNITIES AND BARRIERS TO SE4ALL

BARRIERMITIGATION Initially Low Rate/ kWh based on long run avoided cost MSTEM Commissioned Renewable Energy Tariff Study in 2012 Cabinet Submission being prepared Data and StudiesHydro studies updated – PCJ, 2010 Wind Resource Assessment – Wigton/IDB Final Report due June 2013 Land InterconnectionGrid Injection study – Being arranged through MSTEM/Worldbank 2012 Financing StructureJamaica’s country risk adds burden to project finance Development/ Green financing instruments

TypeEntitySize (MW) Projected MWhLocation WindJPS ,990 – 52,560Munro WindWigton III ,072 – 78,840Manchester WindCAEL2463,072Manchester WtEPCJ ,000Riverton WtEPCJ ,000Retirement HydroJPS6.326,500Maggotty HydroPCJ ,680 – 315,360Various BiomassMinistry/PCJ3.126,000Duckenfield BiomassMinistry/PCJ18142,350Frome TotalUp to MW Up to 1,169,682MWh OPPORTUNITIES

1,169,682 MWh from RE represents 28.3% of the 2010 Electricity Generation therefore a significant potential

 ROLE OF PUBLIC PRIVATE PARTNERSHIPS

PUBLIC VS PRIVATE Renewable Energy Deployment in Jamaica has been historically slow due to: 1)High capital cost of technology therefore, long payback periods 2)Private Sector interested in quick returns 3)Commercial bank loan structures not providing: ▫ Long moratorium on interest during development and construction ▫ Long tenure loans ▫ Low interest rates Therefore, opportunity for restructuring private sector financing instruments or investor criteria to facilitate more public-private partnerships

Possible Public-Private terms Source: Thomas Timmins, Gowlings, Jamaica Power Summit presentation, April 2012

PUBLIC - PRIVATE DIALOGUE Wigton is 100% government owned and not to be seen as competition in the renewable market but as the catalyst to demonstrate and motivate other entities to get into the renewables business ▫ Thus Wigton has shared information, knowledge and experiences at numerous seminars and workshops As there was little uptake on renewable energy projects (eg. before JPS Maggotty expansion the last hydro investments were in the 1980s), government lead with implementation of the first commercial scale wind farm for the benefits to the country Advocate private sector involvement in manufacturing/ assembly of renewable energy equipment to drive the costs down (cheaper local labour and employment possibilities) and even export renewable energy products (eg. St. Kitt’s assembling PV)

 EXAMPLES and SUCCESS STORIES

JPS Munro Wind Farm (3 MW) Wigton 100% government owned ▫ Financed through PetroCaribe as more attractive than local commercial bank proposals ▫ Thus opportunity to finance Wigton III with more private involvement if terms adjusted as outlined before JPS – private and government owned ▫ Accessed funding from IFC due to majority private ownership WIGTON II (18 MW)

WIGTON II – PHOTO HIGHLIGHTS

CONSTRUCTION HIGHLIGHTS  Wind Turbines arrived April 4, 2010 Hubs at Port Esquivel Hubs  tonnes (18,141 kg) Generator Details  Rated speed: 1680/2016 RPM  690 V, 50 Hz  2 MW

CONSTRUCTION HIGHLIGHTS Nacelles  Houses Drive Train:  Gearbox  Shaft  Generator  Yaw systm  67 tonnes Hubs at Port Esquivel

CONSRTUCTION HIGHLIGHTS Towers  67 m  160 tonnes  3 pieces Hubs at Port Esquivel

CONSTRUCTION HIGHLIGHTS Blades  39 m  6.5 tonnes  Rotational speed  Static: 16.7 RPM  Operational: 9-19 RPM Hubs at Port Esquivel

CONSTRUCTION HIGHLIGHTS FOUNDATIONS Diameter = 15.6 m Depth = 2.6 m Steel = tonnes Concrete = 327 m 3 each Except T30 which had m 3 Foundation Details Foundation Steelwork at T26

CONSTRUCTION HIGHLIGHTS CABLING CONTROL BUILDING

CONSTRUCTION HIGHLIGHTS WIND TURBINE ASSEMBLY  600 ton crane used

New Substation New Resource Centre for training

CONCLUSION  Wigton has successfully commissioned and operating two wind farms  Wigton is committed to technology transfer to Jamaicans and is actively developing its resource centre offerings while continuously training and exposing its staff  Renewable Energy potential to meet Government targets is identified  Wigton will continue to lobby for more comprehensive renewable energy policy and legislation to facilitate the realization of the identified renewable energy projects  Wigton actively seeks innovative Private Public methods of implementing these renewable energy projects

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