The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government is seeking private sector bids to supply “up to” 60 Mega Watts (MW) of power to vessels at Nassau Cruise Port because Bahamas Power & Light (BPL) “cannot supply” this demand.

The bidding document, which has been seen by Tribune Business, says the Davis administration has partnered with BPL in “exploring measures” to provide the hundreds of cruise ships that call on Nassau annually with clean energy via power generated by liquefied natural gas (LNG) fuel.

The provision of this 60 MW, known as “shore power”, would enable docked cruise ships to shut down their diesel generators when in port. This would reduce their emissions of carbon dioxide and other pollutants when in Nassau, enabling this nation to become “a greener, more sustainable” maritime industry operator.

And it would also enhance Nassau’s competitiveness as a destination given that the cruise lines are increasingly switching to cleaner fuel and power generation sources with each new build that comes out of the shipyard production lines. Documents accompanying the bid tender suggest the winning bidder will enjoy significant demand with 1,573 cruise calls already scheduled for Nassau in 2025.

The request for proposal (RFP) signals that the winning bidder will be required to develop and construct a new power generation facility, together with an LNG regasification terminal, at Arawak Cay. It is unclear whether a new electricity cable, for instance, will then have to be laid in Nassau harbour to take the energy generated over to Nassau Cruise Port.  

“The Government of The Bahamas, in partnership with Bahamas Power & Light Company, is exploring measures to provide up to 60 MW of shore power for the New Providence cruise ship terminal,” the request for proposal (RFP) document said.

“BPL cannot supply the 60 MW required for shore power at the newly-opened Nassau Cruise Port. At this juncture, BPL is fully subscribed to meet its existing energy demands and cannot allocate additional power for the port’s requirements.” Hence the need to turn to privately-owned energy groups and investors.

Explaining the rationale for launching the bidding process, with the RFP issued on July 9, 2024, the tender document said “shore power” was increasingly being provided by ports worldwide and Nassau needed to keep pace to maintain its cruise industry competitiveness. The use of LNG-generated power will also slash emissions by the cruise ships while docked at Prince George’s Wharf.

“Shore power for cruise ships, also known as cold ironing or alternative maritime power (AMP), connects docked vessels to the local electrical grid, allowing them to shut down onboard diesel generators,” the RFP said.

“This technology, increasingly adopted in ports like Los Angeles, Vancouver and Shanghai, significantly reduces emissions of sulfur oxides (SOx), nitrogen oxides (NOx), particulate matter (PM) and carbon dioxide (CO2). For instance, the Port of Los Angeles reported an 87 percent reduction in NOx and a 95 percent reduction in PM emissions from ships using shore power.

“Additionally, shore power minimises noise pollution, creating a quieter environment for port communities and marine life. Overall, adopting shore power is crucial for The Bahamas’ energy transformation towards greener, more sustainable maritime operations.”

With 1,573 cruise ship calls on Nassau already booked for 2025, the bid document said such vessel scheduling is typically 90 percent accurate “with the total number of calls being approximately 95 percent accurate”. As a result, the winning bidder already has significant demand lined up, with suggestions that total annual passenger numbers will eventually hit seven million compared to the 5.4m forecast for 2024.

“Not all cruise ships can connect to shore power due to the age of the ship. While some cruise lines have retrofitted their ships, others are too old, making retrofitting impractical given their scheduled retirement. Generally, older and smaller vessels require less shore power, while larger vessels require more, ranging from 6 MW to 14 MW,” the bid document said.

“The Nassau Cruise Port, which opened in 2023, represents a transformative investment of $300m into the Bahamian tourism infrastructure. Designed to revitalise Nassau’s waterfront and elevate its status as a premier cruise destination, the port is anticipated to welcome approximately seven million visitors annually.

“This state-of-the-art facility can accommodate up to six cruise ships simultaneously, including the world’s largest vessels such as the Oasis-class and Quantum-class ships. By enhancing capacity and providing modern amenities, the Nassau Cruise Port aims to offer an unparalleled experience for cruise passengers, contributing significantly to the local economy and tourism sector.”

Michael Maura, the Nassau Cruise Port’s chief executive, could not be reached for comment on the “shore power” RFP before press time last night. However, he has previously described its provision via clean-burning fuel sources such as LNG as “a game changer from a destination perspective and that of the ships”.

“The regulators that govern them are looking and putting pressure on them to get as green as possible,” he added of the cruise lines and other vessels. “And so for us here in Nassau to be able to.... feed both the cruise port and the container port with green power would be a game changer.”

Dion Bethell, Arawak Port Development Company’s (APD) president and chief financial officer, told Tribune Business that the BISX-listed container port operator was unaware that the Government had issued a shore power request for proposal (RFP) involving the Arawak Cay location.  

“APD has no role in this and I was not aware of the RFP. Sorry that I am unable to help with this,” he said via messaged reply. However, the RFP refers to the delivery of “shore power from the Arawak Cay Port Development to the Nassau Cruise Port”.

The bid document also describes to the “Arawak Cay terminal” as the site for the 60 MW power generation facility. The actual location will be leased by the Government to the winning bidder at what was described as a “nominal cost”, although the latter will be required to pay for any necessary extension to BPL’s grid to facilitate delivery of power to the Nassau Cruise Port.

The shore power system must also be able to interface with “smart grid technology” and “be capable of synchronising with the existing electrical grid to ensure seamless integration. It should be able to manage and regulate its output to maintain stability and efficiency, adapting to the varying power demands of connected vessels,” the bid document added.

“The Government of The Bahamas/BPL will require that the project developer take on any costs associated with any required grid extension to the identified site to accommodate energy delivery. This would include any transmission or distribution upgrades required to deliver the shore power from the Arawak Cay Port Development to the Nassau Cruise Port.

“The ownership of the transmission and distribution facilities will become the property of the Government of The Bahamas at the end of the agreed term.” The bid document adds that the selected provider will only be licensed to operate as a public electricity supplier within the Nassau Cruise Port and Arawak Port Development site.

Site tours will be conducted for bidders from July 22-24. Questions must be submitted by July 30, and replies are due by August 6. The deadline for bids to be submitted is August 20, and all submissions evaluated by September 4, 2024. The winning bidder will be issued its ‘letter of award’ by September 9, and will have a week in which to accept.

The Ministry of Energy and Transport, in a statement, said: “The Ministry of Energy and Transport wishes to advise that a request for proposal (RFP) has been issued in respect to shore power which proposes to supply energy from Arawak Cay for the New Providence cruise ship terminal via LNG.

“The scope of work includes the provision of up to 60 MW of power at the terminal.... As we embark on this energy transition to a brighter, cleaner, and more sustainable future, the Ministry of Energy and Transport remains focused on leading a transparent process. The Government of The Bahamas is committed to pursuing energy solutions that are reliable and more affordable for all Bahamians and businesses.”