Gov’t commits to multifaceted approach to reduce energy costs

Prime Minister Andrew Holness has reiterated his administration’s commitment to reducing Jamaica’s high energy costs, stressing that it is a national priority not only for residential consumers but for businesses as well.

The prime minister was speaking at the commissioning of the Jamaica Broilers Group’s new LNG-powered co-generation energy plant at the company’s Best Dressed Chicken facility in Spring Village, St Catherine, on Tuesday.

Holness acknowledged that while there has been some progress in transforming the energy sector, these advances have yet to significantly reduce electricity costs across the board.

“So we have done some transformations in the energy space but it has not resulted in a reduction or stabilisation of energy cost, which continues to be far too high not just for consumers but also for businesses, which ultimately resulted in higher cost of living,” Holness said.

The prime minister described the high cost of energy as an “untraceable” burden on the Jamaican people and the business sector, and one that requires a comprehensive and sustained effort to resolve.

“So the government has to take on this problem and bring the cost of energy down. This is a multifaceted approach to bring the cost of energy down,” he added.

ENERGY INDEPENDENCE

Among the strategies being pursued is the ongoing renegotiation of the Jamaica Public Service (JPS) licence. Holness noted too that addressing the energy cost challenge demands more than just economic interventions – it also intersects with climate concerns.

“We are a government that is very much concerned about the climate, and the impact of the climate, granted what we contribute to global warming or any climate change impact is negligible,” the prime minister stated.

He emphasised Jamaica’s vulnerability to climate-related disasters, given its geographic location as a small island in the hurricane belt.

“So if we are going to raise our voices globally about climate change, then we can’t at the same time be irresponsible in how we conduct our own energy consumption.”

In this context, Holness stressed the need to incorporate more climate-friendly fuels into Jamaica’s energy mix as part of a long-term energy strategy.

“It is important for Jamaica to integrate within our energy provision and energy mix, more climate friendly fuels,” he said.

He further outlined that Jamaica’s energy policy is guided by the principle of energy security, which depends on the nation’s ability to maintain a consistent supply of energy and fuel. He argued that greater energy independence is key to achieving this security.

“Our energy policy calls for a certain level of energy security which speaks to our ability to ensure that we have a consistent supply of energy and fuel coming in to Jamaica,” he explained. “The only way to enhance this security is when there is also a certain level of independence.”

ALTERNATIVE ENERGY SOURCES

Among the renewable sources being explored is solar energy, which the prime minister believes has immense untapped potential.

“What God has given us every day in abundance is solar. We could increase our energy generation from solar, but there are other options too that we must explore in the energy mix, including hydro, and nuclear even though most people haven’t grabbed on to this one as yet,” Holness remarked.

He revealed that Jamaica has already signed Memoranda of Understanding (MOUs) with Canada and other countries to build local capacity in nuclear energy science and manpower.

“MOUs have been signed with Canada and other countries to help Jamaica develop the manpower and the understanding of the science so should that technology become something that we could use, we are in a position to use it,” he said.

The commissioning of Jamaica Broilers’ 6.5-megawatt LNG-powered plant marks a significant milestone in the country’s energy transition. According to the prime minister, approximately six per cent of Jamaica’s energy is now generated through liquefied natural gas (LNG), signalling incremental progress in diversifying the national energy portfolio.

Holness also credited the relative stability of Jamaica’s energy policy across political administrations as a strength in enabling long-term planning and investments in alternative energy sources.

As the Government continues to navigate both the economic and environmental dimensions of energy reform, Holness stressed the importance of proactive planning and bold decisions to secure Jamaica’s energy future.