Jamaica Energy Partners Expansion

completed

Jamaica Energy Partners (JEP) is a 74.2 MW barge-mounted power generation plant powered by medium-speed diesel engines burning heavy fuel oil. The plant is located on the seacoast at Old Harbour, about 40 km west of Kingston. It was developed as a fast track project in 1995, and was the first Independent Power Producer commissioned on the island of Jamaica, selling its capacity and energy to Jamaica Public Service Company (JPSCo), the national integrated public utility and the grid operator, which was publicly-owned at that time, under a twenty-year Power Purchase Agreement (PPA). IFC provided financing for JEP in 1997. Jamaica relies almost entirely on imports of fuel oil to power its generation plants; the high cost of fuel and other factors contribute to the high electricity tariff in Jamaica. To address this problem, the Government of Jamaica is seeking to build larger and more efficient plants and secure cheaper sources of fuel for Jamaica. However, pending these decisions, a 50 MW capacity increment is urgently needed by end 2005. The project is to expand JEP’s capacity from 74.2 MW to 123.6 MW by building a 49.5 MW barge-mounted plant based on updated diesel engine technology burning the same heavy fuel oil. The new capacity and barge will be located at a leased site 200 feet alongshore from the existing barge. JPSCo, 80% owned by Mirant Corporation of the US since 2001, will purchase JEP’s aggregate capacity and power under a twenty-year PPA. JPSCo operates the four-unit, 220 MW Old Harbour thermal plant adjacent to JEP. Petrojam, the current fuel supplier of the existing capacity, will continue to supply maximum 2.2% sulfur content fuel oil under a Fuel Supply Agreement. The new plant will utilize existing fuel unloading and electrical connection facilities.