The IFC is confident that renewable energy investment is attractive regardless of this year’s drop in oil prices. The International Financial Corporation estimates that a country can absorb between 25 to 35 percent of renewable energy before intermittent nature of renewable energy disrupts the base-load capacity of any generation system. The IFC has partially funded the US$62.7 million BMR project in order to further encourage Jamaica’s clear national energy policy and the transition to renewable energy on the Island. As technology has become more competitive, and as regulatory environments offer more support, the private-sector arm of the World Bank Group has moved out of investing solely in hydroelectric plants. IFC Senior Manager for Central America and the Caribbean, Luc Grillet, said that the aim of new investment into solar and wind is to encourage the installation of renewable energy capacity in several emerging markets, including Jamaica. A balanced energy mix is very important to the organization and plans to explore natural gas, in addition to wind and solar energy. The 36.3 MW BMR wind project will contribute to the 115 MW of energy that the Jamaican Government seeks to generate from renewable sources, thus transforming the national energy sector. Grillet explained: “You need additional efficient base-load capacity to be part of the energy matrix in any country in order to balance the intermittent nature of renewable energy being added to the system.”
The fall in world oil prices contributed to a decrease in Jamaica’s yearly oil import bill and makes the case for renewable investment to maintain more inexpensive energy available to the Island.
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