The international Finance Corporation (IFC) with the support of the Government of Canada and along with the Overseas Private Investment Corporation (OPIC) will finance the 36 MW wind generation project in St. Elizabeth Parish, Jamaica.
BMR Jamaica Wind Ltd. will build, operate and maintain the new facilities about 90 km west of Kingston. This will be the largest renewable energy project developed by the private sector in Jamaica.
The US$62.7 million financing package consists of a US$42.7 million senior loan from OPIC, a US$10 million senior loan from IFC’s own account, and a US$10 million loan from the IFC-Canada Climate Change Program, which promotes private sector financing for clean energy projects and will help make the financing package viable.
The project is expected to become operational in the first half of 2016.
The wind farm will sell electricity to the private electrical utility, Jamaica Public Service Company (JPS), under a 20-year power purchase agreement (PPA). On September 18 BMR Energy executed the PPA with JPS.
JPS signed in late September another PPA for 20 years with WRB Enterprises (WRB). Approximately US$60 million will be spent to construct the 20 MW photovoltaic generation project that will see 98,000 panels installed in Content Village, Clarendon Parrish.
Jamaica’s dependence on outdated oil-fired electricity generation has led to high electricity prices, which create a burden on the economy. These projects are in line with Jamaica’s National Energy Policy, which has set a goal of diversifying the country’s energy matrix.