Electricity in Jamaica is expensive. In fact, our electricity bills are among the highest in the Caribbean. High energy costs affect everyone. Businesses have to spend more money to operate, which can lead to higher prices for goods and services. Families also struggle to pay monthly light bills.
Our power grid is also vulnerable to storms. In October 2025, Hurricane Melissa damaged more than 70 per cent of Jamaica’s power network, leaving thousands of people without electricity for days, weeks, or even months.
Jamaica needs energy that is cheaper, more reliable, and better able to withstand disasters. Most people agree on that. The challenge is deciding how to get there.
Over the years, Jamaicans have heard many proposals for addressing the country’s energy challenges. These include increasing renewable energy, exploring for oil and gas off Jamaica’s south coast, nuclear power, and more recently, renegotiating the Jamaica Public Service Company licence agreement.
Jamaica’s Energy Policy commits to generate 50 per cent of its electricity from renewable sources by 2030. Currently, roughly 13 per cent of our electricity supply comes from renewables. Which path will Jamaica prioritise, and how will it stay committed to that course over the long term?
IS NUCLEAR POWER THE ANSWER?
Nuclear energy is often described as clean because it produces zero carbon emissions during operation. Nuclear power plants, however, are expensive to build and operate. They require highly trained workers, strict safety regulations, and long construction periods.
Some have suggested Small Modular Reactors (SMRs), which are smaller versions of traditional nuclear plants. The technology, however, is still new. Only two commercial SMRs are currently fully operating, one in Russia and one in China. Japan also operates a test reactor while many more are being designed or built in other countries. Costs remain uncertain, and widespread use is likely years away. Jamaica’s energy challenges, however, are immediate.
WHAT ABOUT OIL AND GAS?
Some people believe that finding oil or gas would solve Jamaica’s energy challenges. But the reality is more complicated.
Around the world, fossil fuels receive huge subsidies, meaning governments and societies often pay hidden costs that are not included in the price. These costs include damage from climate change and health problems caused by air pollution. In April 2026, the International Monetary Fund estimated that fossil fuel subsidies amount to US $7.4 trillion annually.
Fossil fuels also expose countries to events they cannot control. price volatility, and geopolitical events that are entirely beyond their control. Wars, supply shortages, and changes in global markets can cause prices to rise suddenly.
Even if oil or gas were discovered in commercial quantities off Jamaica’s coast, it would likely take many years before production could begin. By then, the global energy system could look very different.
It is also important to note that oil discoveries do not automatically lead to cheaper electricity or broad national benefits. In many countries, the benefits have been uneven or limited, with high energy costs and weak development outcomes. Examples include Nigeria, Angola, and Venezuela.
Because of this, fossil fuel discoveries do not guarantee lower electricity prices or widespread prosperity. How the resource is managed matters as much as the discovery itself.
WHY RENEWABLES MAKE SENSE
Renewable energy has changed dramatically over the past decade. Solar panels prices have dropped by more than 90 per cent since 2010, and wind power costs have fallen by about 50 per cent. Today, in many countries, it is cheaper to build new solar and wind facilities than new fossil fuel plants. Improvements in battery storage are also making renewable energy more reliable.
At the CB Facey Foundation’s recent annual lecture, Uruguay’s former Energy Secretary, Dr Ramón Méndez Galain, shared how his country transformed its electricity sector over a decade. Today, more than 95 per cent of Uruguay’s electricity comes from renewable sources such as solar, wind, biofuels, and hydropower. According to Dr Méndez Galain, the renewable-energy path reduced exposure to volatile fuel prices, produced a more stable system, increased energy independence, catalysed US$5 billion in investment, created 50,000 new jobs, and lowered generation costs by 40 per cent. Importantly, Uruguay did not make this change mainly because of climate change. It did so because renewable energy made economic sense.
WHAT CAN JAMAICA LEARN?
Jamaica faces many of the same challenges that Uruguay once faced. We import all of the fossil fuel used to generate electricity, spending between US$1.5 billion and US$2 billion each year. While we have some renewable energy in our electricity mix, approximately 88 per cent is derived from fossil fuels. Because we depend on imported fuel, any disruption in global markets, whether from wars in the Middle East or supply shocks elsewhere, raises costs at home.
Uruguay’s success was built on the following important pillars:
- Long-term policies that gave investors’ confidence.
- Careful planning to identify the best mix of energy sources.
- Strong regulation and contracts that were suitable for renewable-energy providers.
- Cohesion among the political directorate.
These lessons are relevant for Jamaica.
Jamaica cannot pursue every option at once and expect a clear path forward. We need a long-term plan that focuses on what is most likely to deliver affordable, reliable electricity for Jamaicans.
One of the questions after the lecture was about how to deal with so-called ‘vested interests’. Dr Méndez Galain pointed out that the public overwhelmingly supports lower electricity costs, and this is what renewable energy delivers.
If the country’s objectives are lower electricity costs, greater energy security, new investment, and job creation, renewable energy should be at the centre of Jamaica’s energy strategy.
Theresa Rodriguez-Moodie is an environmental scientist and chief executive officer of the Jamaica Environment Trust and Diana McCaulay is the Founder of the Jamaica Environment Trust. Send feedback to columns@gleanerjm.com
