However, Jamaica's economic and energy needs are no different from her
Caribbean neighbors and with a combined population of some thirty-four (34)
million people, million could be lifted out of poverty in less than fifteen
(15) years to attain developed nation status by 2030. The strategic importance of
the hot vents and the potential to harness some fifty-two (52) gigawatts of
energy will significantly boost the economic standing of the entire Caribbean
Region.
To this extent, Jamaica and her neighbors must invest approximately
US$131 billion in their energy infrastructure over the next fifteen years or
US$9.0 billion annually, according to the table (No.1). Jamaica alone must invest
annually some US$700,000,000.
Based on forecast electricity consumption by 2031 comparable to
Germany's current energy consumption used as a benchmark, the demand for
Northern Caribbean countries excluding Puerto Rico is estimated at thirty
gigawatt (30 GW).
The hydrothermal energy find will boost Jamaica's economic standing
and strategic position in the region a position it had lost some three decades
ago and is now tittering on the brink of bankruptcy under it's IMF loan
obligations. More importantly, the location of the undersea hot vents falls
within its "sovereign territory" as defined by rights associated with
international laws relating to Exclusive Economic Zones (EEZ). According to the
National Oceanic and Atmospheric Administration (NOAA), that maritime zone
"beyond and adjacent to its territorial sea that extends seaward up to 200
nm from its baselines (or out to a maritime boundary with another coastal
State). Within its EEZ, a coastal State has: (a) sovereign rights for the
purpose of exploring, exploiting, conserving and managing natural resources,
whether living or nonliving, of the seabed and subsoil and the superjacent
waters and with regard to other activities for the economic exploitation and
exploration of the zone, such as the production of energy from the water,
currents and winds; (b) jurisdiction as provided for in international law with
regard to the establishment and use of artificial islands, installations, and
structures, marine scientific research, and the protection and preservation of
the marine environment, and (c) other rights and duties provided for under
international law."-NOAA
It is believed also that the vents are located on the same tectonic
plate as Jamaica giving more rights to the economic benefits from this area.
The economic impact in the region will be significant, especially for Jamaicans
who could see the feasibility of paying US$0.05/kWh (instead of the US$0.35/kWh
they are currently paying) for electricity generated from a floating power
plant hovering above the hydrothermal vents some 3 miles below in some places
on the seabed.
The Proposed Trans-Caribbean Hydrothermal Power Plant and Undersea
Transmission Cables is estimated to cost some US$140 billion with a capital
investment structure of some US$34 billion in private equity over an investment
cycle of twenty (20) years with a Net Present Value (NPV) of US$4.4 billion and
an Internal Rate of Return (IRR) of 24% from revenue generated on a base
electricity cost of US$0.05/kWh.
The construction cycle would last five (5) years and employ an estimate of some 450,000 workers during that time contributing well over US$190
billion in regional GDP and would employ some 6,000 full-time workers during
operation.
The fifty-two (52) gigawatt of clean renewable energy will offset some
228 million tons of Carbon Dioxide (CO2); having Green House Gas (GHG) emission
reduction equivalency; 38 million passenger vehicles and 23.4 billion gallons
of gasoline and could contribute an additional twenty (20) gigawatt of energy
to the North American Grid.
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