My Thoughts on Technology and Jamaica: C&WJCCU joins banks to offer Alternative Energy Loans - Money, Money, Money in Distributed AEPP World

Wednesday, April 11, 2012

C&WJCCU joins banks to offer Alternative Energy Loans - Money, Money, Money in Distributed AEPP World

It seems that the Year of The Dragon is also an expansionist year for the JCCUL (Jamaica Co-Operative Credit Union League). They have dipped their hands in partnership with Mozido Jamaica Limited to offer e-payment solutions based on smartphones called JCUES (Jamaica Credit Union e-Payment Services) as described in the my blog article entitled “JCCUL JCUES is put on hold by the BOJ - ePayment setback means Mozido has been Bewitched”.

But in a sign that they are down but not out, the C&WJCCU (Cable and Wireless Jamaica Co-Operative Credit Union), a member of the JCCU, has decided to forge ahead into yet another futuristic and fast-growing business area. This is the rapidly expanding field of loans for homeowners to purchase Alternative Energy Equipment as stated in the article “Lenders see business potential in Energy Lines for homes”, published Sunday April 1st 2012 by Avia Collander, The Jamaica Gleaner.

Truly, the brave may fall but never yield, Kingston College Style!!

This time unlike e-payments, it’s a proven field already populated with other lending institutions such as the Capital and Credit Financial Group and the DBJ (Development Bank of Jamaica) which offer Alternative Energy loans of between JA$250,000 to JA$5 million via its affiliation with:

1.      National People’s Co-Operative Bank
2.      National EX-IM (Export-Import) Bank,
3.      Jamaica Money Market Brokers
4.      Capital Credit Merchant Bank

These loans are for the purchase of Solar Water Heaters to full blown Solar Panel and Wind Turbine Systems to power the entire house, mainly the refrigerators and the air conditioning unit as concluded in my blog article entitled “Dr. Taylor's states Global Warming increasing Jamaica's Energy Bill - Vybz Kartel's Summertime Soylent Green”.

At ten (10) years to repay a JA$5 million Alternative Energy Loan, this is effectively a mortgage for Solar Power Equiptment with a fixed monthly repayment for the life of the loan replacing your fluctuating Electricity Bill.

The JCCUL failed in their bid to effectively introduce a service that would have heralded the coming of a Cashless Society in Jamaica based on mobile phone transactions, the JCCUL has yet to receive any clear word from the BOJ (Bank of Jamaica) as noted in the article “JCCUL’s e-payment service still in Limbo”, published April 8th 2012, The Jamaica Gleaner.

Their long term aim is to tap into the lucrative Remittance field, now set for boom time as stated in the article Remittance Companies Bullish As Transfers Hit New Record published Sunday March 4, 2012 by Avia Colander, The Jamaica Gleaner.

This despite at the last minute converting their Thursday March 15th 2012AD product launch into a public sensitization with regards to the potential of doing financial transactions using your mobile phone as stated in the article “JCCUL Converts Epayment Launch To Product Sensitization”, published Sunday March 18, 2012, The Jamaica Gleaner.

Thus this new product focus by another JCCUL into the lucrative Alternative Energy Sector is an indication that the JCCUL sees potential in the disenchantment by the Jamaican Public with the slow pace of Jamaica’s move to Energy Sector Liberalization and cheaper electricity rates as mentioned in my blog article entitled “Senator Phillip Paulwell chooses LNG over Coal - Power Engineers in Stephen King's Graveyard Shift”.

It may also mark the beginning, albeit slow, of yet another foray for the JCCU into financially viable territory based on mortgage styled loans somewhat similar to what Google is doing as described in the article Google: Rent your Solar panels from us”, published September 28 2011 10:55 AM PDT by Candace Lombardi, CNET News - Green Tech  and “Google helping homeowners get Solar Power with $75 million investment”, published September 28 2011 by Jeff Hughes, DigitalTrends

Google, in partnership with  Californian VC (Venture Capitalist) Clean Power Finance is assisting homeowners to install Solar Panels and Wind Turbines at Residential Customers via a US$850 million financial loan arrangement as described in my blog article entitled “Google invests US$75 million in Residential Solar PUC - Aliens in future Energy Market Shakeup.

This may be an Alternative means by which Jamaican homeowners, can, on an individual basis, also achieve Energy Sector Liberalization for themselves in much the same way Mr. Chong was able to despite the lack of waivers for Alternative Energy equiptment as described in my blog article entitled “Lack of Waivers for Expensive Alternative Energy Gear - Mr. Paul Chong's Adoption Contradiction”.

This as they have all the collateral they need, their own property and the investment, albeit long term, makes them totally independent of Jamaica’s sole Power Utility Company and thus one less bill to worry about.

Even more interesting, is the possibility that Telecom Provider Digicel may begin to diversify into Alternative Energy in a bid to reduce the cost of their usage of electricity post-CLARO Jamaica acquisition as noted in my Geezam blog article entitled “Digicel Jamaica’s Alternative Energy Future – Increased Electricity Bills and Energy Sector Opportunities collide”. If this is possible for Digicel in the long term, the same may be the route that the JCCUL may pursue as well: from lending to procuring the equiptment themselves.

At that point in the future, possibly about 2015AD, they would effectively become a Distributed AEPP (Alternative Energy Power Provider) for Residential Customers, putting the JCCUL and banks in direct competition with JPS Co (Jamaica Public Service Company). Customers could get power audits done free of cost and then sign to contracts agreeing to pay a Flat Rate Utility Bill in exchange for having the Solar and Wind Turbine equiptment hosted free of cost on their premises.

It’s the same concept as a loan, but instead of paying for the equipment over ten (10), you pay for the electricity service at a guaranteed fixed rate on your house. You don’t own the equiptment, merely rent it, as a rental fee would be a part of the utility bill that would go towards the cost of the equipment. Again like the partnership with Mozido Jamaica Limited for e-payment service JCUES, this could also be done in partnership with another local or FDI (Foreign Direct Investor).

Once such partner could be Canadian-owned Solarmon Energy Corp, which has plans to set up a very large Solar Installation here in Jamaica as stated in the my Geezam blog article entitled “Solamon Energy Corporation to build Caribbean’s Largest Solar Plant – Jamaica to get a Green Energy Boost” and may be looking for a financial partner that has people at its heart

Another such partner could be with American-based Green Energy RG, which may be currently looking for a financial partners to retail its line of Solar Powered gear made here in Jamaica as stated in my Geezam blog article entitled “Green RG in Jamaica to make Solar Power Gear”.

Interestingly both of them have an interest to use Jamaica in a push towards Latin America as surmised my blog article entitled “Solamon Energy Corp & Green RG invest in Jamaica's Alternative Energy Future - Let the Cheaper Energy Hunger Games for Latin America Begin”., much in the same way that Mozido Jamaica has plans to eventually expand beyond the shored of Jamaica to the fast growing economies of Latin America.

Even better,  All-Electric Vehicle Maker Oregon-based Porteon is coming to Jamaica to manufacture and sell their brand of lithium-Ion battery-powered vehicle as described in the my Geezam blog article entitled “Oregon-based Porteon to assemble All-Electric Vehicles in Jamaica – One By One” and my blog article entitled “Porteon to manufacture All-Electric Vehicles in St. Lucia - Strengthening CARICOM ties with Jamaican Skilled Labour”.

This means that eventually Jamaicans exchanging their Gasoline and Diesel Vehicles for an All-Electric variety may become commonplace as predicted in my blog article entitled “Alternative Energy and Range Extender Technology - Jamaica to Rhaatid”. So too may the upgrading of one’s vehicle to run on LPG (Liquid Petroleum Gas) as opined in my Geezam blog article entitled “Auto LPG as a Motor Vehicle Fuel”.

Yet another branch in the ever expanding tree of Alternative Energy in Jamaica for the JCCUL and Banks to invest as the Jamaican Economy slowly recovers!

A potential match made in heaven for JCCUL following on the example of C&WJCCU and the DBJ, heralding
Money, Money, Money in the Distributed AEPP (Alternative Energy Power Plant) World.

More on this interesting development as it unfolds……


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