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The Illusion of Reduce Electricity Prices in Jamaica


It will soon be clear that successive governments will not be able to solve the energy crisis problems that have confronted Jamaicans since 2006 when international oil price began their meteoric rise.

On one occasion it was Coal then it was Natural Gas then it was Coal or Natural Gas. It seems for now a decision has been made. Energy World International Ltd has been awarded the contract to build Jamaica's next megawatt scale power plant.

Energy World International Ltd (EWI) submitted a proposal to build a 478MW Natural Gas Combine Cycle Power Plant that is expected to cost the developers an estimated US$737 million (JM$76.648billion). Installation cost US$1.54/Watt. At the time of writing this document the exchange rate was US$1 : JM$104.

With current electricity rate at approximately JM$42 per kilo Watt hour, and a projected rate of increase of $2-5 per year, Jamaica's electricity rates by 2016 could be anywhere between $46-57/kWh or higher. When EWI's plant finally comes on-line the projected reduction is expected to be approximately in the range of  $4-9/KWh.
                                           Source: myjpsco-fuel rates
                                           Source: myjpsco-fuel rates

With this in mind Jamaicans will be expected to pay an electricity rate within the range of $37-53 come 2016. In relative terms there will be no difference in electricity rates and the hope of the Jamaican people dashed.

ColideZ




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