Dr. Raymond Wright, Group Managing Director, Petroleum Corporation of Jamaica, is urging the local private sector to invest in renewable energy. He was speaking recently at an Eye on the World Breakfast meeting hosted by GraceKennedy Ltd. at Alhambra Inn.

Dr. Wright was making his remarks in light of the current energy crisis which has seen a volatility in the price of oil, moving from US$10 per barrel in 1998 to over US$70 in 2005, with the possibility to go even higher; and problems in the supply and demand of oil, along with concerns for the environment. The cost of Jamaica's oil imports in 2004 was US937, or about 66% of the country's foreign exchange earnings from merchandise, noted Dr. Wright.

Noting that the trend internationally was for a greater share of renewable energy sources in each country's energy mix, Dr. Wright said the development of these technologies would require the concerted effort of government, the private sector, the international community and civil society.

There were many opportunities, said Dr. Wright, for the private sector to get involved. He encouraged companies to explore the potential of generating their own electricity from wind farms. Wind energy, he said, was competitive with fossil fuels and was a buffer against the volatility in oil prices. "And importantly, the wind resource is free," said Dr. Wright.

Dr. Raymond Wright (right), Group Managing Director, Petroleum Corporation of Jamaica, shares his view on renewable energy. Listening attentively are Simon Roberts, General Manager, Grace Food Processors (Canning) Ltd., and Miss Sandra Shirley, President of First Global Financial Services Ltd.

The PCJ head spoke of the work currently being done by his company at Wigton Wind Farm in St. Elizabeth to harness wind as a source of energy. "Land-based wind reduces in cost at higher winds speeds. At Wigton, we have wind speeds at over 8 metres per second and we are in fact producing and selling energy at the rate of 6 US cents per kilowatt hour.

Jamaica currently has the largest wind farm in the English-speaking Caribbean and already investors, including local banks, are showing interest. "We (PCJ) have been a catalyst in respect of building this wind farm. And we would like to see private sector companies follow suit," he said.

In addition to generating electricity for their own needs, as well as sale to the grid, Dr. Wright said companies could also explore joint ventures in the energy sector with overseas investors that could give them access to international markets, capital inflows and technology infusions.

Posted: September 21, 2005