PROJECTS

PPP for Energy Efficiency and Solar PV in Schools, Jamaica

The problem

The Government of Jamaica knew that rooftop solar photovoltaic systems and energy efficiency retrofits could cut electricity costs at public schools, but it lacked the finance and expertise needed to implement its ideas. The government engaged Castalia to establish a replicable performance-based scheme for privately financed solar PV systems and energy efficiency retrofits in school buildings that would save money on school electricity bills.

How we helped

Castalia helped design a PPP arrangement where a private company would finance, install, and maintain the equipment and get paid based on electricity costs saved. We carried out a technical, economic, and financial feasibility study, prepared a business case, drafted the transaction documents, and helped manage the tendering process and subsequent negotiations. We also prepared an implementation plan for scaling up other schools and public facilities through similar performance-based schemes.

Impact

In March 2022, the Government successfully tendered an energy savings performance contract for 30 schools by providing lower cost solar electricity and savings for energy efficiency. This transaction was Jamaica’s first privately financed energy efficiency and distributed renewables project for public buildings.