FREEPORT, Grand Bahama, March 20, 2023 – Speaking at the groundbreaking ceremony for the country’s first utility scale solar plant on Friday, March 17, Sarah St. George, Acting Chairman of Grand Bahama Port Authority, Limited (GBPA), said Power Purchase Agreements “such as this were envisioned back in 2013 when the GBPA Regulatory Framework, the first of its kind in The Bahamas, was signed between The Power Company and GBPA.”
“These successful Solar PPAs underline the positive role of the best practices Framework in providing cost-effective, reliable, modern, power on the island,” Ms. St. George said. “Being the chairman of the GBPA regulatory committee is not an easy job – you’re faced with making incredibly difficult decisions – how do you balance the needs of a modern, healthy, reliable utility with maximum cost-effectiveness to customers (especially us in Grand Bahama after 2 CAT 5 hurricanes and the pandemic, but we saw how well the utility performed in Cat 1 Hurricane Nicole last November, we barely lost power at all). But today, we can see the benefit of those difficult choices, now and for the future.”
Ms. St. George added: Before our Regulatory Framework, Fuel Charges used to fluctuate up and down monthly causing budget problems for everyone but particularly, our industrial and commercial customers. The framework stabilized the Fuel Charge, together with a strong Hedging program. This Solar project equates to an equivalent fuel charge under 10c p/kWh, consistent with the current fossil fuel charge, and further mitigating against volatile fuel prices. So it ticks all the boxes.
“Additionally, PPAs such as this can free up capital at GBPC, to invest in Battery Storage which is more expensive, going forward, but will be needed as island Solar Power increase, plus Control systems, and increased resilience, all stabilizing the cost to customers. It is a new string to our bow in Grand Bahama, one of diversity, and a step towards reduction in greenhouse gases, and emissions. Congratulations to LSP, GBPC, the IDB, and last but not least, my team at the GBPA. As the song goes; Let The Sunshine In! “
Earlier in her remarks, after observing official protocol by acknowledging officials present at the groundbreaking, Ms. St. George said: “I’m very proud to be here because it is indeed a sunny occasion! As you’ve heard, this is Grand Bahama’s, very first Utility Scale Solar Farm. In fact it’s the very first in the entire Bahamas. As we know, The Bahamas has a bold green mandate to move towards 30% renewable energy generation by 2030. We are currently on a path to 22 MW of Solar Energy out of an overall 90 MW. This project alone represents 9.5 MW or 6% of island generation.
“So Jorge (Marques), you and LSP are truly blazing a trail, and again congratulations on your perseverance because we know how much hard work you have put into making this a reality. So too your fellow investors Rupert Roberts, and Paul Roker, and of course your lending partner the IDB represented by Daniela. All key persons to getting this $15 million project to completion, with construction to be finished in just 10 months from start, in other words before year end.”
Continuing, Ms. St. George added: “I also have to congratulate the far-sightedness of Emera who sent Dave McGregor, COO of Emera Caribbean, here as President of GBPC. Dave kicked off the renewable transformation in Barbados, which is probably the lead island in the Caribbean on solar; he built the eastern Caribbeans biggest project, 10MW in Barbados. It’s what he does! He arrived five years ago with the same goal. Then Hurricane Dorian and Covid hit, but Solar is coming and over the next months you will hear news of the other projects to complement Jorge’s here today. I attended the signing of the Agreement yesterday, and Dave McGregor articulated a self-evident truth: we are using our foreign exchange to buy fuel from overseas. Moreover, storms and hurricanes can interrupt shipping and supplies.
“Why else is solar power such a compelling energy resource? As said by one Nation’s leader; ‘It is an axiom that no country can develop without electricity’. Hence we and the rest of the world are very dependent on fossil fuels and gas to produce that electricity. But in The Bahamas, we do not have our own oil fields, or natural gas.
“What we do have is the most obvious, the most natural, the most unlimited resource – Our Sun! Vast, inexhaustible, and clean. That is what is meant by the term, Renewable and Green. It is an efficient, and infinite source of energy through particles called Photons. Plants have been using this energy since the beginning of creation — since God said in Genesis 1:3 “Let there be Light”! Without the sun, life would not be possible on Earth. It’s just taken several million years for us humans to be able to harness it in this way.
“But make no mistake, Solar energy is not inexpensive to build and operate, it isn’t available for 12 hours of every day, or on a heavily cloudy day. Therefore, it’s a sophisticated technology, which needs careful monitoring and integration into the grid. It also needs large spaces, which we do have and some cities dont… This Lucaya Solar project will be on two sites — one here at Fairfield and the other in the Devon area — together some 30 acres for 9.5MW.”
Noting that the IDB is providing 76% of the capital and LSP the equity balance of the $15 million cost, Ms. St. George said: “And with that dollar amount, SLP and the IDB have ensured equipment and materials of the highest quality. SLP’s supplier is a Bloomberg-rated tier 1 company. Structures will be specially reinforced to resist extreme weather conditions, making the solar panels 70% more resistant to winds than standard panels, including a back sheet to protect the parts from salt corrosion, plus other cable features to reduce degradation, wear and tear, and systems of the latest generation. LSP and the IDB have made this project unique in that this has formed the basis of a New Model for Solar Farm PPAs in hurricane regions, enshrined at the Rocky Mountain Institute which sets industry standard guidelines. “
