The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

WASHINGTON, DC: THE Government is talking to a “major player” in the natural gas industry as it bids to diversify the Bahamas’ energy sources, the Prime Minister pledging it will move quickly on generation competition once the Bahamas Electricity Corporation (BEC) manager is appointed.

Following his address to the first-ever Caribbean Energy Security Summit in Washington D. C., Mr Christie said the Government was talking to various energy producers and would move quickly once a BEC management company was appointed.

“We are entering a new field of public-private partnerships ,and it’s going to be moving much more quickly once we make this initial decision. We are talking to people who are involved in different kinds of energy production and different forms of it,” Mr Christie explained.

“Once we appoint a manager, then we are going to be moving very quickly to have that manager compete against others in terms of the provision of electricity. We are in talks now with one of the major players who has gone into Jamaica, in terms of natural gas.

“We’re dealing with that. We have chosen an island to talk to him about, and so you are going to find that renewables and alternative energy supplies will be a very hot topic in the Bahamas.”

The Government has moved away from splitting BEC into separate generation and transmission and distribution (T&D) arms, as initially proposed in August 2013, and is now moving forward with a business model that mirrors the Nassau Airport Development Company’s (NAD) arrangement for Lynden Pindling International Airport’s (LPIA) management.

Under that arrangement the Government will retain 100 percent equity ownership of BEC even after the private sector manager is in place.

“We have discussions with one of those producers who is building a plant in Florida right now, all with the view to taking advantage of what could happen in terms of the production of natural gas. Of course that means converting for that to be a reality,” said Mr Christie, in relation to BEC’s generation turbines.

He added that the new BEC manager would have to bring about an immediate reduction in the cost of electricity on New Providence.

“With respect to the Family Islands it is also anticipated that the management group will have a great capacity to introduce the best practices in solar, wind and other forms of energy,” said the Prime Minister.

One of the key objectives of the Caribbean Energy Security Summit, hosted by US vice-president Joe Biden, is to identify ways to promote a cleaner and more sustainable energy future in the Caribbean through improved energy governance, greater access to finance and donor co-ordination.

Coming out of that summit, the World Bank presented a proposal to create a Caribbean Energy Investment Network to improve co-ordination and communication among development partners, and to empower Caribbean nations to direct and align external support with their own national goals.

The US has pledged its support to Caribbean nations in developing clean energy projects, and has indicated that its Overseas Private Investment Corporation (OPIC) will intensify its focus on developing clean energy projects in the Caribbean.

OPIC and the US State Department have chosen a team with specific responsibility for identifying and arranging financing for Caribbean projects. aacross the region.