Jamaica Making Progress in Meeting 50 Per Cent Renewable Energy Target

Jamaica Information Service

Jamaica is making strides in meeting its target of generating 50 per cent of its electricity from renewable sources by 2030.

Minister of Science, Energy, Telecommunications and Transport, Hon. Daryl Vaz, highlighted the progress being made during a press conference at the Ministry’s office in Kingston on Tuesday (March 18).

In October 2018, the Government stated its intention of having 50 per cent or approximately 520 megawatts of renewable energy in the local energy mix by 2030.

This is an increase from the previously declared 30 per cent target, which was announced April 2017.

In pursuit of the renewable energy target, the Government implemented legislation, enabling Jamaica Public Service (JPS) customers with renewable energy generators to sell excess capacity to JPS at wholesale prices.

“The Electricity (Net Billing) Regulations, 2022 accelerated distributed renewable energy adoption, with 436 new renewable systems licensed, adding 8.5 megawatts of new capacity,” Minister Vaz noted.

He further cited the expansion of utility-scaled renewable projects that are expected to come on stream soon, further bolstering the renewable energy push.

“In November 2024, the Generation Procurement Entity (GPE) awarded 99.83 megawatts of new solar capacity contract to Wigton Energy Limited and Sunterra Energy Jamaica Ltd., supporting the 50 per cent renewable energy target by 2030. Both bidders have obtained their generation licences from the Ministry, and their implementation schedule completion is expected by 2027,” he informed.

An additional 220 megawatts of utility-scale renewables with storage will be competitively procured in 2025.

These projects, along with the JPS’s replacement of 171.5 megawatts of retiring fossil fuel units with renewables, will bring renewables electricity generation close to 48 per cent when the projects are connected to the grid, Minister Vaz said.

Minister Vaz indicated that the country’s renewable energy capacity stood at 188 megawatts by December 2024, generating an estimated 481,432-megawatt hours annually, accounting for 10 per cent of the nation’s total electricity production.

This is up from 2016, when renewable energy capacity represented seven per cent of total grid generation.

Minister Vaz said the progress made in expanding the energy portfolio has been guided by a robust policy framework and strategic investments.

He acknowledged an increase in electricity prices between 2016 and 2024 but noted that this was not due to a lack of investment in renewable energy, citing the supply chain disruptions from the COVID pandemic, the Russia-Ukraine conflict, and other conflicts led to spikes in global oil and natural gas prices, and a subsequent increase in electricity costs.

“The view that electricity prices in Jamaica have increased due to a lack of investment in renewables ignore the global macroeconomics and energy market realities that have driven electricity costs higher worldwide,” he noted.

He noted, further, that the cost of raw materials for renewable energy infrastructure such as wind turbines increased sharply between 2021 and 2023, delaying cost reductions in renewable energy generation.

“Had Jamaica procured renewables during the higher price period, those elevated prices would have locked us in for decades,” the Minister contended.

He said that while renewable energy technology costs have declined over time, the transition away from fossil fuels must be a planned, orderly, and well-timed deployment.

Further highlighting the progress in renewable energy, Mr. Vaz noted that in 2024, Jamaica moved up eight places in the Bloomberg NEA Climate Scope Report, ranking 10th in Latin America and the Caribbean for renewable energy investment attractiveness.

“This reflects clear and strong policy direction, regulatory improvements and investment incentives that position Jamaica as a leader in the regional energy transition,” he affirmed.

Jamaica’s transition to adopting 50 per cent renewables is being guided by the updated Integrated Resource Plan (IRP-2), which was approved by Cabinet and published in 2024.

The Plan prioritises wind, hydro and solar as primary energy sources, and battery energy storage systems (BESS) for grid stability, reliability and efficiency.