Hurricane Melissa damage prompts rethink of solar reliance for 220mw auction | Business

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Jamaica wants investors to build more wind and hydroelectric power projects, citing their resilience during hurricanes as part of a national push to generate half of its electricity from renewable sources by 2030.

“We have several indicators of the challenges that we face,” said Steve Dixon, chief technical director for energy in the Ministry of Energy, Telecommunications and Transport, who spoke during a request-for-information (RFI) session for prospective investors and bidders held virtually on Thursday.

“We have to learn from those experiences and to see how we can build a more resilient grid.”

The Government is seeking to add 220 megawatts (MW) of new renewable capacity and 110 MW of energy storage to help balance the grid during low-production periods.

The RFI on March 19 marks the second tranche of the country’s renewable energy auction programme aimed at reducing reliance on imported oil. Stakeholders have until April 10 to submit feedback through the RFI. The Government expects to formally launch the auction in the third quarter of 2026. Currently, about 20 per cent of Jamaica’s electricity generation comes from renewables, but that figure will change due to roughly 150 MW of solar already approved for installation in the medium term.

Recent storms have exposed the vulnerabilities of solar, with Dixon pointing to damage at the island’s largest solar facility – the 38 MW Paradise Park solar photovoltaic plant in Westmoreland. The facility, he stated, was severely impacted by Hurricane Melissa.

Dixon added that the Integrated Resource Plan – which officially forecasts the island’s energy needs – calls for increased use of wind and hydro power alongside solar.

Benjamin Daley, managing director of Reil Energy, said the Government should require more robust solar infrastructure. “Government should stipulate that solar panels can withstand around 2oo-mile-per-hour hurricane rating,” Daley said in an interview with the Financial Gleaner earlier in the month when asked about the tender. He added that such standards should be part of the proposal scoring criteria for bidders.

Reil Energy is the Jamaican partner in the Derillion consortium, which operates a floating solar panel power plant at the Mona Reservoir and is expanding the facility towards 50 MW. The group also plans to build battery-storage systems.

In the first tranche of auctions held in November 2024, Wigton Wind Farm Limited and SunTerra Energy Jamaica Limited were awarded contracts to supply up to 100 MW of electricity from renewable sources. Both companies are using solar photovoltaic technology. Wigton’s project is located in Clarendon while SunTerra’s is in Trelawny. That auction was oversubscribed five-fold.

Dixon emphasised the importance of meeting renewable energy targets to allow for the retirement of ageing fossil-fuel plants.

“Whenever we don’t meet these objectives in terms of these renewable energy targets, we have to extend the life of those fossil fuel plants,” he said. “They add costs, and the price of electricity goes up.”

The auction process is being managed by the Generation Procurement Entity, the national body responsible for securing new electricity generation capacity through competitive bidding.

business@gleanerjm.com



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