The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Bahamas was yesterday urged to follow Jamaica’s lead and “move now” to alternative energy, a private sector executive arguing that lower electricity costs were key to turning this nation’s economy around.

Debbie Deal, head of the Energy and Environment Division at the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), told Tribune Business that the private sector must take the lead, adding: “The days of waiting for government are over.”

Ms Deal, who led a Chamber delegation to Jamaica last week as part of a study tour on alternative or renewable energy infrastructure, said that nation in recent years has witnessed an economic rebound and positive forecast from ratings agencies. Its move to alternative energy such as liquefied natural gas (LNG) is seen as a key element driving that turnaround.

“A lot of the issues that they faced are similar to the issues that we face; an unpopular utility, frequent outages and old infrastructure,” said Ms Deal.

US-based New Fortress Energy, and Jamaica’s legacy utility, JPS, signed an agreement in 2015 for the supply of LNG from a 120 Megawatt (MW) power plant in western Jamaica, shifting the latter’s fuel mix away from diesel.

“They get the natural gas from the US, and they ship it to Jamaica and the United States. Why can’t we be paying $14-17 cents per kilowatt hour like Jamaica?” MsDeal said. “When you talk to an employer you will hear them say I have to decide whether I pay my employees or pay my BEC bill.

“That’s the crisis that we are in here. A lot of foreign companies don’t come here any more because it’s too expensive to do business. We have to see what we can do to bring those people back, and what we can do to make Bahamian businesses profitable and keep them from closing down. Addressing the cost of energy is one thing we can look at.”

Ms Deal added: “We have to come up with some suggestions that we can offer to government. It doesn’t have to be government-led. The private sector can do it.

“A lot of things in this country are going to have to be private sector-driven. The days of waiting for government are over. We have to set goals and keep pace with the technology. We need to move to alternative energy.

“Natural gas is something you can use day and night. There is a solar farm in Jamaica as well, and they have pre-paid meters. Moving to alternative energy would be the first step to reducing our cost. Their economy is better, they have businesses thriving and improving; it’s just incredible. They are emerging as a top country in the region and most of it has to do with energy.”

Ms Deal estimated that the average Bahamian business pays $3,000-$15,000 a month for electricity bill, and for some it is much higher. “If you can reduce that just a quarter, they would be able to put more money in their business and hire staff,” she added.