PORTIA SIMPSON Miller's suggestion that Government consider nuclear energy as a source to support the national grid has been rejected by Government.

Prime Minister Bruce Golding told Parliament on Tuesday that the proposal has been ruled out for a number of reasons.

"... Environmental concerns, extremely high capital costs, long lead time and the challenges involved in operations, maintenance, waste disposal and decommissioning," Golding said as he listed negatives.

The prime minister was making his contribution to the Budget Debate.

Nuclear facilities

According to Golding, for countries that do not already have nuclear facilities, it would take 15 years to establish a nuclear power reactor.

"The siting of such plant would also be hazardous in a country of Jamaica's size and population density ... where would you put it?" the prime minister asked.

Both the Opposition and the Government have said that the development of the Jamaican economy will depend on the country's ability to source cheaper energy.

On Tuesday, Golding said, "One of the most binding constraints to achieving competitiveness is the high cost of energy.

"It bites a huge chunk out of the ability of local producers to compete, either as exporters or domestic suppliers. The reopening of our aluminium plants, even after market conditions improve, hangs on our ability to obtain cheaper energy," Golding said.

Generating electricity

The prime minister told Parlia-ment that the oil bill for generating electricity alone has moved from $18 billion in 2005 to $38 billion in 2008.

Golding said that owing to the volatility of oil prices, its high conversion cost and the carbon emissions it produces, liquefied natural gas (LNG) remains the country's best option for energy diversification.

"Within the next few weeks, Cabinet will issue the necessary policy directions to the Office of Utilities Regulation to invite propo-sals from potential investors for the development of the necessary infrastructure to facilitate the conversion from oil to gas for electricity generation," the prime minister said.

daraine.luton@gleanerjm.com