1. 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

2. 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

3.  WIGTON OVERVIEW

4. 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

5. LOCATION OF WIGTON

6. Wigton I 20.7 MW Commissioned 2004 23 NEG Micon (NM52) WTGs Rated 900 kW each Wigton II 18 MW Commissioned 2010 9 Vestas -V80 WTGs Rated 2MW each

7.  RENEWABLE ENERGY CONTEXT IN JAMAICA

8. 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

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

10. RENEWABLES IN JAMAICA  Wind is 2.7% of annual electricity generation  From 41.93 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

11. RENEWABLES – POLICY TARGETS  1995 Energy Policy followed by National Energy Policy: 2009- 2030  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

12. Sustainable Energy for All (SE4ALL) - Objectives

13.  OPPORTUNITIES AND BARRIERS TO SE4ALL

14. 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

15. TypeEntitySize (MW) Projected MWhLocation WindJPS15- 2045,990 – 52,560Munro WindWigton III24-3063,072 – 78,840Manchester WindCAEL2463,072Manchester WtEPCJ41-46325,000Riverton WtEPCJ18-25140,000Retirement HydroJPS6.326,500Maggotty HydroPCJ40-80157,680 – 315,360Various BiomassMinistry/PCJ3.126,000Duckenfield BiomassMinistry/PCJ18142,350Frome TotalUp to 252.4 MW Up to 1,169,682MWh OPPORTUNITIES

16. 1,169,682 MWh from RE represents 28.3% of the 2010 Electricity Generation therefore a significant potential

17.  ROLE OF PUBLIC PRIVATE PARTNERSHIPS

18. 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

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

20. 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)

21.  EXAMPLES and SUCCESS STORIES

22. 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)

23. WIGTON II – PHOTO HIGHLIGHTS

24. CONSTRUCTION HIGHLIGHTS  Wind Turbines arrived April 4, 2010 Hubs at Port Esquivel Hubs  18.141 tonnes (18,141 kg) Generator Details  Rated speed: 1680/2016 RPM  690 V, 50 Hz  2 MW

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

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

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

28. CONSTRUCTION HIGHLIGHTS FOUNDATIONS Diameter = 15.6 m Depth = 2.6 m Steel = 25.462 tonnes Concrete = 327 m 3 each Except T30 which had 898.6 m 3 Foundation Details Foundation Steelwork at T26

29. CONSTRUCTION HIGHLIGHTS CABLING CONTROL BUILDING

30. CONSTRUCTION HIGHLIGHTS WIND TURBINE ASSEMBLY  600 ton crane used

31. New Substation New Resource Centre for training

32. 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

33. Questions ?