The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Prime Minister yesterday pledged that all details on New Providence’s energy generation, grid and renewable reforms will be fully disclosed in Parliament within the next three weeks.

Philip Davis KC, speaking at the commissioning ceremony for two 31 mega watt (MW) engines supplied to Bahamas Power & Light (BPL) by Energy Bahamas Holding, a FOCOL Holdings subsidiary, confirmed that the Government has also finalised a power purchase agreement (PPA) for the 177 MW new power plant that the same company will construct at Blue Hills.

“Today, I am pleased to announce that the power purchase agreement between Bahamas Power & Light and Energy Bahamas Holding Ltd (Bahamas Utilities Holdings) has been finalised,” said Mr Davis.

“This is a significant step forward as we continue to implement the energy reforms necessary to secure a reliable and sustainable energy future for The Bahamas. This agreement ensures that we can immediately enhance our energy capacity while paving the way for cleaner fuels including liquefied natural gas (LNG).”

Mr Davis said the installation of the two 31 MW dual-fuel engines at BPL’s existing Clifton Pier power station is merely a “first phase” in expanding New Providence’s electricity generating capacity. “This is but the first phase in a step towards the transformation of our energy transition,” he added.

“This 62 MW that has now been commissioned today is part of 177 MW that we are going to see to happen very soon. We will be adding solar microgrids to the mix, as well. We have already awarded 75 MW of solar installation to three different providers. I’m advised that, within the next month, you should be seeing those contracts being concluded.

“We’re ensuring that we add at least solar to the mix so this is the beginning of what is to come. Hopefully by the end of 2025 it will all be in place and the Bahamian people will recognise the transformation that we have done to our electricity landscape.”

The three renewable providers referred to by Mr Davis are Compass Power, Inti Corporation and Eco Energy. Cameron Symonette, head of the Symonette Group, is a principal of Compass. Inti Corporation, whose head is Owen Bethel, the former Bahamian financial services executive, has played a key role in developing the first two renewable energy projects that are supplying Grand Bahama Power Company.

Mr Davis declined to give any details about the terms of the generation PPA that has been agreed with Bahamas Utilities Holdings, another subsidiary of BISX-listed FOCOL Holdings. A PPA sets out the cost/price at which its 177 MW plant will supply energy to BPL, as well as the duration of the arrangement. Such PPAs typically last for between 20-30 years to allow private investors to make a return on their investment.

“I don’t intend to give any details at this time, but we’ll be laying it and we’ll be making it public in due course in Parliament. So, within the next three weeks, we’ll be laying it,” said Mr Davis.

He also confirmed that the separate contract with Bahamas Grid Company and its manager, Island Grid, plus Pike Electrical to upgrade New Providence’s transmission and distribution electrical grid has been finalised and will be tabled in Parliament at the same time along with the three renewable energy deals.

Promising that there will not be a “piecemeal laying of these documents”, Mr Davis said: “As I indicated earlier, all the documents related to our energy reform will all be laid one time.

“That includes all of the solar grids, utility solar provider agreements. They’re all under negotiations right now. We don’t want to have piecemeal 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.”

JoBeth Coleby-Davis, minister of energy and transport, said the PPA between BPL and Bahamas Utilities Holdings includes performance benchmarks and penalties for non-performance. She added that it also includes provisions to lock down rates governing the cost at which power is generated to protect businesses and residents from energy price fluctuations.

“Today, we are commissioning two dual fuel turbine engines because of a public-private partnership between BPL and Bahamas Utilities Holdings,” said Mrs Coleby-Davis.

“The partnership is guided by a power purchase agreement. PPAs are standard practice in the energy field. The PPA for this project includes clearly defined key performance indicators and penalties for non-performance. Provisions have also been included to lock down rates, which will protect Bahamian households and businesses from large cost fluctuations.

“The partnership with Bahamas Utilities Holdings will allow for BPL to increase its generation capacity, with direct benefits for households and businesses in New Providence, such as improved reliability and electricity service.”