Jamaica is entering a critical phase of power sector reform. Despite diversifying into liquified natural gas (LNG), wind, and solar, it continues to face some of the highest electricity tariffs in the Caribbean Community (CARICOM) region and globally, driven by system losses of roughly ~27% and legacy power purchase agreements (PPAs) that have locked in high costs. In late 2025, the government announced it would not renew the Jamaica Public Service Company’s (JPS) license under its current terms. As the monopoly provider of transmission and distribution services, the system operator, and a major generator, JPS sits at the center of the sector, making the decision a potential turning point in the structure and governance of Jamaica’s electricity market. The success of this transition will depend on whether reforms tackle underlying issues such as system losses, contract transparency, and sector governance, rather than focusing solely on renegotiating existing arrangements.
Download to read the full analysis (8 pages) here.