RISING electricity costs driven by higher global oil prices are forcing cinema operator Palace Amusement Company to tighten energy use and fast-track limited solar plans, as it works to contain mounting operating pressures.

Assistant Managing Director Steven Cooke said in a recent interview with the Jamaica Observer that higher oil prices on the international market have been driving up local energy costs, placing additional pressure on a business that is heavily reliant on electricity for air conditioning and daily operations.

The company remains dependent on the national grid, with limited scope for a full transition to renewable energy.

“Despite higher fuel costs and rising electricity prices, we’re not in a position to move fully into solar right now,” Cooke told BusinessWeek. “We simply don’t have enough roof space for the panels, though our consumption is massive.”

The volatility in global oil supply has prompted Palace to reassess both short-term conservation efforts and longer-term energy planning. The changes come as rising fuel costs begin to affect electricity prices more broadly across Jamaica.

While constraints persist, Cooke said the company is fast-tracking parts of a solar transition that had previously been considered a medium-term goal. He disclosed that discussions are underway to fast-track a pilot renewable energy project that could allow Palace to install partial solar capacity and repay the investment over an extended period.

In the interim, conservation remains a primary focus as the company moves to implement strict energy controls across its operations, including timed systems for lighting and air-conditioning, temperature monitoring, and early shutdowns before the end of nightly screenings.

“Everything is on timers and doesn’t turn on before a certain time — and it’s turned off half an hour before the last show ends,” Cooke said as part of the company’s conservation efforts.

“The building is also very well insulated, so that helps us maintain lower temperatures,” he added.

The measures are part of a broader push to contain escalating costs and maintain financial discipline, he said.

Palace is also grappling with rising prices for imported concession items, including hot dogs, nachos and packaging materials.

“All the packaging is imported, and those costs have also been affected,” Cooke said.

Describing the situation as a “serious balancing act”, he said that while the company has been able to absorb some increases using existing inventory and supplier support, that buffer is expected to last for only a few more weeks if the Middle East conflict continues to disrupt oil markets.

“We’re going to have to pass on some of those costs as we’re not in a position to absorb anything,” he said. “Everything we absorb, we lose — and we can’t afford that right now.”

With no plans to take on additional debt, Cooke said the company is instead focused on tightening operations and improving efficiency.

“The belt is tight and the buckle is firm,” he stated.

After reporting a wider net loss of approximately $115 million up to the half-year mark in December, Palace has in recent years faced a series of market and industry challenges. Financial pressures for the company further intensified after hurricane damage last October forced the permanent closure of its Montego Bay Palace Multiplex cinema, eliminating a significant revenue stream.

To boost revenues, management has since late last year moved to pursue a range of low-cost diversification measures, including enhanced in-seat concession services and a broader mix of programming such as anime, lifestyle content, and live sports screenings.

As Palace closely monitors its numbers and prepares for continued volatility, Cooke said the strategy remains focused on cost containment, energy efficiency and gradual investment in alternative power.

“We have to plan for the worst even as we hope for the best,” he stated.

COOKE…everything is on timers and doesn’t turn on before a certain time — and it’s turned off half an hour before the last show ends