The Tribune

By EARYEL BOWLEG

Tribune Staff Reporter

ebowleg@tribunemedia.net

PRIME Minister Philip “Brave” Davis has announced that a power purchase agreement between Bahamas Power and Light (BPL) and Energy Bahamas Holding Limited had been finalised, a “significant step” toward ensuring reliable energy for the country.

“This agreement ensures that we can immediately enhance our energy capacity while paving the way for the transition to cleaner fuels, including electrified natural gas,” he said. “By June 2025 these dual fuel turbines will run fully on LNG, reducing emissions, reducing emissions and lowering costs while providing reliable power to behave in families and businesses.”

Mr Davis later told reporters he believed the government signed an agreement on Monday with Pike Corporation, establishing a 25-year partnership to upgrade and manage BPL’s transmission and distribution network. Under this deal, the government will hold 40 percent of shares in a special purpose vehicle, Bahamas Grid Company, while Pike’s management company, Island Grid Solutions, will own the remaining 60 percent.

Mr Davis spoke during and after the commissioning ceremony for two 31-megawatt GE dual-fuel turbine engines supplied by Bahamas Utilities Holdings, which operate on both diesel and natural gas at Clifton Pier.

Dexter Adderley, FOCOL president and CEO, said the new gas turbines are 35 percent more efficient and emit 30 percent fewer emissions than most of the older generators currently operating.

Energy Minister JoBeth Coleby-Davis said the commissioning results from a public-private partnership between BPL and Bahamas Utilities Holdings Limited, guided by a power purchase agreement (PPA).

Currently, the available electricity capacity in New Providence is 256 megawatts. The new engines would add 62 megawatts of electricity to the grid at full capacity.

 Mr Davis said: “We are addressing the immediate need for reliable power, but this is just the beginning. Our vision for energy reform is not limited to new engines or upgrades. It’s about breaking free from an energy system that has for too long been inefficient, outdated and reliant on costly fuels.”

 “We’re adding 62 megawatts of power to the grid today, which will provide immediate relief, but we are also laying the groundwork for the transition to cleaner, more cost-effective fuels like LNG. This means lower emissions, as I said, better air quality, and, most importantly, lower energy costs overhand, we are here to build a new energy system that works for everyone.”

 Mr Davis said 75 solar installation beds have already been awarded to three providers. He indicated that contracts for these installations should be finalised within the next month. He expressed optimism that by the end of 2025, the transition to solar energy would be well underway, leading to a significant transformation in the country’s electricity landscape that the Bahamian people would recognise.

 On the sideline of the event, he told reporters that all documents related to energy reform would be laid out in Parliament.

 “They’re all under negotiation right now,” he said. “We don’t want to have a piece laying of these documents because it’s a big picture. We don’t want pieces left out. So when you have all of them signed, they’ll all be laid, and you’ll see them at that time.”

“The government is not divesting anything. What the government is really doing is finding capital to put in this infrastructure and working on arranging for that capital provider in an arrangement where they can recoup their investment through a partnership arrangement.”

 Meanwhile, Mrs Coleby-Davis said the partnership with Bahamas Utilities Holdings will allow BPL to increase its generation capacity, directly benefiting New Providence households and businesses through improved reliability and electricity service.

“The engines allow for dual fuel technology, which will enhance operational flexibility,” she said. “However, by June 2025, the engines will run fully on LNG; the LNG fuel will be provided by Shell North America.”