NASSAU, Bahamas, October 16, 2024 — An additional 62 megawatts was added to Bahamas Power and Light’s (BPL) New Providence grid yesterday with the commissioning of two dual-fuel turbine engines at Clifton Pier, which will address the immediate need for reliable power, Prime Minister Philip Brave Davis said, The Nassau Guardian reported today.
He said the 62 MW added to New Providence’s grid are part of 177 MW being added.
“For far too long, the Bahamian people have endured high energy costs, frequent blackouts and the limitations of an aging power grid,” said Davis at a ceremony at Sun Oil’s Clifton Pier headquarters.
“These issues have placed a heavy burden on families, stifled businesses and stolen our nation’s progress.”
He said the commissioning of the two engines is not a quick fix, but a part of a forward-looking solution that will set the foundation for a more sustainable energy future.
“For years our energy system has been broken. We’ve been dealing with high bills, unreliable service and an aging infrastructure that simply wasn’t built to meet the modern demands of life in The Bahamas,” he said. “… The truth is, we are fixing what should have been addressed decades ago. We are making up for years of neglect, underinvestment and a failure to modernize.”
Davis also revealed that a power purchase agreement between BPL and Energy Bahamas Holdings Limited has been finalized.
“This is a significant step forward as we continue to implement the energy reforms necessary to secure a reliable and sustainable energy future for The Bahamas,” he said.
He said the agreement ensures that BPL can immediately enhance its energy capacity while paving the way for the transition to cleaner fuels including liquefied natural gas (LNG).
The two dual-fuel engines can run on both diesel and LNG.
By June 2025, they will only run on LNG, which Davis said will reduce carbon emissions, lower energy costs and provide reliable power.
Minister of Transport and Energy JoBeth Coleby-Davis said the addition of the two engines to BPL’s grid comes as a result of a public private partnership (PPP) with Bahamas Utilities Holdings Limited, a subsidiary of FOCOL. Sun Oil is also owned by FOCOL.
The partnership is guided by a power purchase agreement (PPA), she said.
“The PPA for this project includes clearly defined key performance indicators and penalties for non-performance,” Coleby-Davis said. “Provisions have also been made [to include] lockdown rates which will protect Bahamian households and businesses from large cost fluctuations.”
She said the partnership with BUH will allow BPL to increase its generation capacity with direct benefits for households and businesses in New Providence, such as improved reliability in electricity service.
The dual-fuel engines will use LNG provided by Shell North America, the minister said.
Through its energy reform process, she said the government is also focused on providing opportunities for Bahamian businesses.
Coleby-Davis said all the successful partners for a renewable energy project in New Providence and the Family Islands are at least 51 percent Bahamian-owned, and in some instances, fully owned by Bahamians.
She said the government will share more about its energy reform plans in the coming weeks.
Asked if she knows the price tag associated with the PPA, BPL CEO Toni Seymour said she couldn’t say, but is sure that Coleby-Davis will announce it at a later date.
The two dual-fuel engines are 35 percent more efficient and emit 30 percent less emissions than most of the older generators currently used by BPL, Dexter Adderley, president and CEO of FOCOL Holdings Ltd, said.
“This achievement is not just a milestone for Bahamas Utilities Holdings Limited, a subsidiary of FOCOL, but a leap forward for the entire Bahamas in our journey toward clean, reliable, affordable energy solutions,” Adderley said.
The prime minister also spoke about plans to introduce solar power to New Providence.
“Very shortly, we will be adding solar microgrids to the mix as well as we have already awarded 75 [MW] of solar installation to three different providers, and I am advised that within the next month, we should be seeing those contracts being concluded …” Davis said.
“So this is the beginning of what is to come. Hopefully by the end of 2025 it will all be in place and the Bahamian people will recognize the transformation we have done to our electricity landscape.”
The Davis administration’s ambitious energy reform process was unveiled in June.Part of the process involves a 25-year agreement with Pike Corporation through its Bahamian management company, Island Grid Solutions, to upgrade and manage the transmission and distribution (T&D) network on New Providence.
The government also plans to build utility-scale solar power in the Family Islands, transform energy generation through LNG implementation in New Providence, and has introduced equity rate adjustments meant to lower electricity bills.
