THE Jamaica Public Service Company (JPS) has indicated that its push to install charging stations for electric vehicles is part of a business plan to help recapture demand that has been lost due to grid migration, adding that it has the capacity to manage the projected number of electric vehilces that are expected in the island by 2030.

“The projection is that by 2030 we are going to be anywhere between 10 to 15 per cent penetration [with EVs],” Joseph Williams, senior vice-president of generation and business development outlined, saying the numbers come from studies done by the Government. That works out at between 60,000 to 90,000 vehicles he pointed out, saying the grid which produces about 1041 megawatts (MW) of electricity but with peak demand at 667 MW can manage that number of vehicles.

“That would see demand increase by 4 per cent to 6 per cent and does not scratch the excess capacity,” his colleague Blaine Jarrett, senior vice-president with responsibility for energy delivery (responsibility for transmission and distribution network) chipped in during a recent interview with the Jamaica Observer.

Grid migration has seen electricity demand in Jamaica falling 5.2 per cent from its peak of 667 MW demanded in 2017 to 632 MW in 2021. More fallout is expected as more homes and businesses consider setting up onsite units independent of the national grid to reduce the cost of energy on their pockets and operations.

Williams said with the increased demand for electricity to come from having more electric vehicles on Jamaica’s roads, the cost of energy to all customers will be reduced — especially with grid defection pushing up the cost of electricity to the average Jamaican.

“With the higher demand from EVs it certainly could offset that, depending on the growth rate…which would clearly redound to the benefit of all customers and reducing their costs,” Williams told the Caribbean Business Report.

The JPS, as part of its 2019-2023 medium-term investment plan, outlined to the Office of Utilities Regulation (OUR) that the potential for growth from electrification of transportation can be exponential for JPS and therefore have a price benefit for customers.

“Having realised that electric vehicles will be a significant part of the vehicles here…we set out first on a path to convince our regulators that it should be a part of our business plan. And [in] doing so we got approval for the installation of 10 public charging stations — which was the start of building out the charging infrastructure network in the island of Jamaica, which we have completed so far, and then having trying to get another 10 public charging stations during the course of this year,” Williams said.

He said discussions with auto dealers to bring in the cars along with the reduced taxes on electric vehicles bring encouraging signs that the multimillion-dollar bet the company placed on EVs will pay off soon. The JPS converted seven of its own fleet into electric vehicles last year and is looking to convert more while encouraging other operators of fleets to switch.

“We are certainly encouraged by signs from the JUTC which brought in its first [set of] electric buses as part of that and also the build out of the charging infrastructure; and we have kept the conversation open with vehicle dealers to assure them that the infrastructure will be there for them to bring in electric vehicles,” Williams continued.

“We are targeting about 40 vehicles for 2023, including bucket trucks, line trucks and some pickups,” Jarrett said. That will be about 5 per cent of the JPS fleet.

However, as the company embarks on building ahead of demand Williams said it must be careful to ensure that targeting the EVs market is part of a strategic plan for the entire grid.

“It is a chicken and egg situation where, if you really want to move along with the Government’s energy policy to be at 50 per cent renewables by 2030 there’s got to be something that drives that demand. Electric vehicles are one of the ways in which we can ensure that there is a new thrust on green. Now a lot of people wouldn’t buy an electric vehicle if there is no opportunity for them to charge it, but once you start putting in those charging stations it then gives an indication that an electric vehicle can be as easily maintained and supported as an internal combustion engine,” Jarrett outlined.

He said with the range of electric vehicles getting wider the aim is to put charging stations in locations where they can meet demand.

“If there is no sign that the industry is preparing itself, people would not buy electric vehicles,” Jarrett pointed out. Jarrett said with EVs now 25 per cent more fuel-efficient than internal combustion engines, the prospect also presents benefits for consumers.

“The business case for an electric vehicle is a sell-off when you look end-to-end,” Jarrett said, pointing out that studies show EVs are 50 per cent cheaper to own over the life of the vehicle compared to its internal combustion units.

“EVs have fewer moving parts and use significantly less fuel…and there are things like when you are driving down a hill, you could be charging your vehicle as well,” Jarrett continued.