Figure 2: Petroleum Consumption by Activity, 2008 95% of the primary energy supplies mix (see Figure at right); This dependency makes Jamaica vulnerable to increases in the price of oil as was the case in 1973 and more recently in the past six (6) years when the annual average spot peak price of crude oil on the international market increased by 288% from US$25 per barrel in 2002 to US$97 in 2008 Hydro 4% 1% Petroleum 95% Figure 3: Jamaica's Energy Supply Mix (2008) b) The oil import bill in 2008 increased significantly (49.6% higher than in 2007) due to increasing crude oil prices. For the first time the oil import cost surpassed Jamaica's export earnings of US$ 771.3 million for the year c) Approximately 5% of the energy supplies mix comes from other sources - 4% from hydro and 1% from wind d) In 2008, three areas, namely bauxite/alumina (34.6%), power/electricity generation (23.1%), and transport (21.5%) accounted for the largest share of petroleum consumption by volume or 79% of the oil consumption. In terms of cost, the transport sector is the single highest. e) Internal energy per capita consumption, including the energy intensive bauxite sector is 8, and excluding the bauxite sector it is 5 f) Efficiency of energy conversion and use is low. The conversion efficiency of old steam generation plants is less than 30%. With modern technologies such as combined cycle turbines; this efficiency can be improved to over 50%. System losses in transmission and distribution represent 23% of total output (as estimated by the Office of Utilities Regulation). g) Growing demand for automotive fuels (gasoline and diesel oil) is at a rate of 4.3% per annum. In 2008 the automotive fuels consumption was estimated at 5.6 million barrels of oil equivalent - boe (21.5% of oil demand which cost about 31% of foreign exchange expenditure) h) While Jamaica Public Service Company (JPS) retains a monopoly on the transmission and distribution of electricity the production regime has been liberalized to include generation of electricity by private producers for their own use or for sale to the national grid. In 2008, total generating capacity in Jamaica was approximately 818 megawatts (MW), which included 217