Information Doc RFPWTE - Petroleum Corporation Of Jamaica

5.0 SECURITY PACKAGE AND FINANCING STRUCTURE
SECURITY PACKAGE
Grant of License to produce and sell Electricity
The Project Company will require a Licence to generate Electricity from the
Government of Jamaica (GOJ), which will be based on the selection and
recommendation of the Office of Utilities Regulation. The Project company will
therefore be required to respond to a solicitation from the OUR to formally submit the
project for consideration. Pursuant to the Licence, the GOJ will grant the Project
Company the right to design, build, own, operate the Complex and sell electrical
energy to the national grid under powers of the Electric Lighting Act.
Principles of Power Purchase Agreement
The Project Company will enter into a Power Purchase Agreement (PPA) with JPS
on or before financial closing. Pursuant to the PPA, the Project Company will build,
own and operate the Complex and will sell power to JPS.
The key Features of the PPA are as follows:
The term will be for 20 years initially from the date of commissioning of the
Complex and may be extended for an additional
period.
The Complex will utilize locally available Municipal Solid Waste as
feedstock.
If the arrangement is for " As Available Energy Only":
i. The Complex will be fully dispatched at all times based on availability.
ii. Payment will be based on a variable charge which in turn will
be based on the agreed variable price and Net Energy Output.
If the arrangement is for "Firm Capacity and Energy":
i. The Complex will be dispatchable by JPS, subject to project
type and approved scheduled outages.
i. The capacity of the Complex will be tested at regular intervals and JPS will
pay the Project Company a fixed amount per kW of tested capacity, subject
to agreed indexation
ii. Payment will include a Fixed Payment and a Variable Payment
Information for WTE RFP
PCJ’s Centre of Excellence for Renewable Energy Page 35 of 56