Marubeni says old power plants to be replaced by renewables

Marubeni Power International has now confirmed that renewables have been chosen to replace old fossil fuel-fired power plants at Rockfort and Hunt’s Bay in Kingston. The company made the revelation about the choice after making the commitment to the Government to align the company with the objective of having 50 per cent of power generated in Jamaica coming from renewable sources by 2030, during a recent visit.

The two power plants are expected to be shutdown starting in the next two years, and the Jamaica Public Service (JPS), based on its licence, has the right to replace generating capacity it already owns and will be spending US$500 million to replace those plants with renewable energy. It will be looking to develop projects which together will replace 171 megawatt entirely with solar and wind energy.

“In the next two years or less, some of the plants are going to be shutting down and have to be replaced, and the replacement the Government indicates to us has to be renewables,” Damian Obiglio, senior vice-president, Marubeni Power International and chairman of JPS, told the Jamaica Observer in an interview Tuesday. He added that the investment will also include battery storage to ensure power remains available when the sun is not shining or when the wind dies down.

The confirmation comes long after it was first indicated that the JPS would be replacing the old power plants with renewable energy. Daryl Vaz, Jamaica’s energy minister, earlier this year told the parliamentary committee reviewing the Electricity Act that renewables would be the replacement power source, but a check with the JPS then revealed that the issue was not finalised as yet.

“JPS is in the final stages with the Government about how much battery, wind and solar power,” Obiglio added in the interview with the Business Observer. He said it is expected that 60 per cent of the investment, or US$300 million, will be spent on batteries to store power for future use. Of the US$200 million left to build the farms, he said US$160 million will go to solar farms while the other US$40 million will be invested in wind energy solutions.

“These are different investments from the other renewable investments the Government is seeking. This is the JPS just replacing existing capacity which is about to come off line with renewables,” Obiglio stressed. He said the Government indicates that it would prefer the battery farm to be somewhere in the Corporate Area where demand is greatest, either on Spanish Town Road or at its old plant at Hunt’s Bay.

“In the case of renewables, the Government have indicated a strong preference for the farms to be in the eastern end of Jamaica — the St Thomas area and the Portland area — while some of the plants may be set up in Clarendon.”

The company added that it is awaiting further directives and stand ready to cooperate as soon as the plans are agreed upon.

Just recently, executives from Marubeni Corporation and Marubeni Power International visited Jamaica in demonstration of their ongoing commitment to the country and to being an investment partner in the nation’s growth.

In the island for a one-day visit were Satoru Harada, Chief operating officer, Power Division of Marubeni Corporation and Yukio Konishi, senior vice-president, Marubeni Power International.

They paid a courtesy visit on Prime Minister Andrew Holness at the prime minister’s office, where Harada spoke to the significance of Marubeni’s investment in Jamaica and pledged to continue to partner with the Government in supporting economic growth through efficient and sustainable energy generation.

Marubeni, a major shareholder in JPS, also has interests in the 194-MW capacity power plant operated by South Jamaica Power Company, located in St Catherine.

Currently, JPS has two major investors: Marubeni Corporation and Korea East-West Power, and each holds 40 per cent of shares in JPS. The Government of Jamaica, through the Development Bank of Jamaica, holds the remaining 19.9 per cent while the remaining less than 1 per cent is held by private shareholders.

This article was published in the Jamaica Observer https://www.jamaicaobserver.com/business/renewables-boost/