Generation Licence – Template

This document presents the form and terms of a Generation Licence to be granted by the Minister of Jamaica to a preferred bidder selected through a competitive Open Call for Tenders launched on September 18, 2023. The licence authorizes the licensee to build, own, and operate a renewable energy-based power generation complex with a net capacity of up to 100 MW. The facility will generate and supply bulk electricity to the National Grid on a Build, Own and Operate (BOO) basis.

The scope encompasses the design, financing, construction, ownership, operation, and maintenance of the Complex, which includes plants, buildings, and auxiliary equipment necessary to provide net energy output to the National Grid. The licensee must comply with the Electricity Act 2015, the Jamaica Electricity Sector Book of Codes, the Power Purchase Agreement (PPA) with the Power Purchaser (Jamaica Public Service Company Limited or successor), and all applicable governmental requirements.

The licence has a duration of twenty (20) years from the Commercial Operations Date, with potential extension if both the Power Purchaser and licensee agree and the Office approves. Key obligations include maintaining a reliable and efficient system, complying with all applicable environmental laws and regulations, maintaining separate accounts for the licensed business, and submitting required documents including operations and maintenance plans, construction contracts, permits, insurance policies, and engineering certificates within thirty (30) days of licence issuance.

The licensee must pay annual Regulatory Service Fees to the Office of Utilities Regulation calculated as 0.0001 (one ten-thousandth) of revenues derived from electricity sales, with a minimum annual fee as prescribed by the Office. Assignment or transfer of the licence or complex requires prior written consent of the Minister. Decisive Shareholders and Controllers are subject to restrictions on share transfers and ownership consolidation limits (cannot control complexes exceeding 50 MW combined net capacity from the Open Call for Tenders). The Minister retains step-in rights to assume operational control if the licensee ceases operations for 48 consecutive hours without consent, and acquisition rights to purchase the complex at 50% of calculated purchase price if the licensee cannot resume operations within 180 days or if a default occurs under the PPA.