John Myers Jr, Senior Reporter

David Geddes, spokesman for the Office of Utilities Regulation. - File

The Office of Utilities Regulation (OUR) has rejected four of seven bids to build renewable energy systems here, and says the remaining three fall short of the 65 megawatts of additional generating capacity that Jamaica is seeking to power homes and businesses.

The OUR, which had extended the bid deadline by a month to entice investors, now says it will likely have to launch another round to meet the target.

"We did not get the amount of megawatts that we were seeking so that would likely mean that we would have to go back to the market again, but I couldn't say when (or) how," said David Geddes, the OUR's director of consumer and public affairs.

Energy policy

The OUR earlier this year invited proposals to develop renewable energy systems - the extended bid deadline closed July 24 - in keeping with Jamaica's energy policy which mandates that as much as 15 per cent of the island's energy should come from renewables by 2015.

About 90 per cent of Jamaica's energy is now derived from fossils.

But, even more urgent is the realisation that monopoly power provider Jamaica Public Service Company will need to increase its electricity generation capacity to about 1,027 megawatts by 2012 if it is to satisfy the country's growing energy needs.

In the short run, it must increase its capacity by 70 megawatts by 2009 as energy consumption is projected to grow two per cent more than this year. The country's energy consumption has been growing at an average two per cent every year for the last five years.

The OUR's offer document said the successful renewable energy bidder would be offered a 20-year licence initially, with the possibility for extension to build and operate a renewable energy generation facility whose power would be sold to the national grid under a power purchase agreement with JPS.

Of the seven bids received by OUR, "three were rejected because they did not meet the criteria, one was rejected at the first stage of the evaluation process and the other three have gone through the evaluation process," Geddes said.

He declined to comment on whether the bids were from local or international firms.

"If you look at the three bids that went through the evaluation process those three wouldn't give us the total amount that we need," he said.

He declined to say how much capacity the three bids covered.

john.myers@gleanerjm.com