Norris McDonald | JPS, solar energy and ‘Nebuchadnezzar’s nu-cl-e-ah dream!’

“Jamaica’s Annual Report” to the American government, Securities and Exchange Commission (SEC), was submitted on July 12. Jamaica’s Energy Policy (2009-2030) was among the things discussed in this report to America’s financial watchdog.

Section D-39-40 of the report gave details of the Government’s future energy plan but did not mention anything about building a nuclear power plant.

Why would Prime Minister Andrew Holness talk about building a Jamaican nuclear power plant in May 2023 but never mentioned it in the July 12, 2023, ‘national homework’ sent to the American financial watchdog?

Other key information gleaned is that the reported steep decline of foreign investment from a 2016 high of about US$1billion to a meagre, ‘dehgue-dehgue’ US$300 million in 2022 most certainly will humbug present and future government plans.

How will this affect the Government’s energy-transition plans?

MISLEADING INFORMATION

What we find in this document, too, is an attempt ‘to pretty-up’ their report. This is against the background, even in the face of, what they confessed were:

• rising inflation

• rising imports

• a decline in exports of bauxite and alumina, and

• a sharp decline in foreign investment

Prime Minister Andrew Holness or Finance Minister Dr Nigel Clarke, perhaps, needs to say more on Jamaica’s negative investment climate. This is clearly needed since sources of financing of Jamaica’s renewable energy plans are unclear.

Wigton Windfarm, Blue Mountain Renewables, WRB, Eight Rivers Energy Company, and of course -high-price electricity imposing – the Jamaica Public Service Company (JPS) are mentioned as the backbone of the Government’s long-term energy policy.

JPS’ “24.5 MW- [Megawatt] – Hybrid Energy Flywheel and Lithium-Ion Battery Storage Project” will store solar energy, the GOJ document said.

Hidden inside we also find a shocking confession of the need to have “better management of conglomerates”.

Is the JPS one of the entities that lacks effective management?

CORRUPTION ALLEGATIONS

Without throwing any big stone anywhere, an in-depth investigation of the Government-JPS business partners may be of some interest to you.

Abu Dhabi National Energy Company and Marubeni Caribbean are the Jamaican Government’s business partner in the JPS.

Each holds a 40 per cent stake in the JPS while the Government of Jamaica holds the remaining 20 per cent. Both Marubeni and Abu Dhabi have a history in which allegations of corruption have been raised.

It is, therefore, important to put more pressure on the Government, and the JPS, if the “National Energy Policy, 2009-2030” is to be realised.

The JPS is central to the Government’s national policy. And this is clearly stressed in the document submitted to the US SEC.

Why do we need to know more?

“Corrupt business practices” allegations against JPS business partner Marubeni, in 2014, led to prosecution by the US Department of Justice (DOJ). Given these allegations, Marubeni entered a guilty plea and paid a fine of US$88 million to the US government.

The US DOJ then responded that under the Foreign Practice Act, 1977, Marubeni accepted that in 2014 “they bribed a key Indonesian politician and other public officials”.

This appeared to be part of continued “corrupt business practices”, the US government said.

Marubeni, therefore, faced “the consequence for its crooked business practices in Indonesia” the US Justice Department said.

Still, despite this settlement of the case, a new “superseding indictment” was again opened in 2020 by the US DOJ against Marubeni and top politicians in Indonesia.

Other major Marubeni scandals include, in 1976, an alleged payoff scheme involving Lockheed Martin. Marubeni’s then chairman, Hiro Hayami, “took responsibility” and resigned, the New York Times said.

Then in 2008, the US DOJ accused some Marubeni employees “that defrauded US$351 million” from the now-closed Lehman Brothers investment bank.

TRUST DEFICIT

The trust deficit government’s other partner in electricity price-gouging, JPS, Abu Dhabi National Energy, also faced allegations of “bribery and kickbacks.”

Peter Barker-Homek is a former CEO of Abu Dhabi National Energy who sued the company in 2010 in the US District Court of Eastern Michigan for US$460 million. He alleged that he was forced out “for trying to stop kickbacks, bribery, accounting fraud, and corruption”, Amena Bakers of Reuters says in an August 31, 2010, news report.

Is there anything more we need to know about this trust deficit in the Government’s JPS partnership agreement that may not have been fully disclosed?

SOLAR ENERGY

Solar energy, the power of the sun, can easily be harnessed and stored in lithium-ion batteries for later use when the mighty power of the sun is not momentarily available.

Quite recently, the Moroccan community of Id Mjahdi became “Africa’s first solar-powered village”, CNN reported.

America, in long-term goals, is not planning to build more nuclear power plants. Their long-term plan is to shift from oil, coal, gas, and nuclear energy and create a national electric grid which has 45 per cent of this energy generated from the Sun’s powerful rays.

In oil-rich Texas, a 250-megawatt Phoebe Solar Project costing approximately US$397 million is now being built.

Hawaii, too, recognising the disastrous impact of climate change, is shifting to 100 per cent green energy that comes from solar, wind, and hydroelectric power.

But high-light-bill-suffering Jamaicans may well be getting a fool-fool, ‘foot of clay,’ Nebuchadnezzar-type, unrealisable ‘nu-cl-e-ah dream!’

ENERGY JUSTICE

Poverty-stricken rural Jamaicans in Mount Vernon, Epsom, Walkerswood, Railway Lane, Petersfield, and Acompong do not care about pretty, tricky, economic growth figures.

Do you? Why would you if your life is getting terribly worse?

Also, do you care about any darn, delusionary visions of a Nebuchadnezzar-type dream of Jamaica having a nuclear power plant?

What sense does it mek?

Tivoli Gardens, Arnett Garden, Sufferers Heights, Riverton City, Maxfield Park, and other urban poor people just want to have cheap, regular electric light, and they want it now!

Finally, just as how the Government gave a full report to the American government, the Jamaican poor people and the middle class demand bold action to lift them out of ‘energy poverty’ created by high light bills. Energy justice is what is needed now!

That is just the ‘bitta’ truth!

Norris McDonald is an economic journalist, political analyst, and respiratory therapist. Send feedback to columns@gleanerjm.com and miaminorris@yahoo.com.