Jamaica set to pilot mechanism to stimulate affordable renewable energy.The innovative Energy Performance Contracting (EPC) mechanism is to be piloted in Jamaica as a means of stimulating uptake of renewable energy and energy efficient technologies in the public sector through up front financing, expertise and greater accessibility.
The EPC model offers the opportunity to develop a sustainable financing mechanism for renewable energy interventions in Jamaica, thereby removing up front cost as a barrier.
Support will be provided to design and implement the pilot programme in the health sector in partnership with the Petroleum Corporation of Jamaica (PCJ), under the UNDP and PCJ-implemented ‘Deployment of Renewable Energy and Improvement in Energy Efficiency Project’ funded by the Global Environmental Facility (GEF), PCJ and the Development Bank of Jamaica.
Energy Performance Contracting (EPC) provides customers with a suite of energy efficiency and renewable energy measures delivered typically by an Energy Services Company (ESCO). Among the services provided by the ESCO are energy audits, designing and planning, financing, construction and installation, as well as the evaluation and monitoring of energy use. According to project officials, ESCOs can help public entities overcome the lack of finances, time and expertise that local governments may face in identifying and implementing sustainable energy solutions.
In preparation for the pilot programme, UNDP and PCJ recently hosted a three-day workshop focused on building capacity of the team. The workshop welcomed 20 representatives of PCJ, Development Bank of Jamaica, the Jamaica Productivity Centre and project developers from the IDB’s Energy Management and Efficiency Programme (EMEP). The workshop was designed to improve understanding of the EPC concept and roles of ESCOs and Super ESCOs in implementing sustainable energy financing mechanisms; understanding of the risk mitigations for the development and implementation of EPCs; prepare participants to launch a Request for Proposal for the pilot; equip participants to undertake sustainable energy financing schemes within the public and private sector, geared at reducing Jamaica’s Energy Bill..