The Tribune

By LEANDRA ROLLE

Tribune Chief Reporter

lrolle@tribunemedia.net

ENERGY Minister JoBeth Coleby-Davis said the Office of the Attorney General is finalising negotiations for power purchase agreements with bidders selected to carry out renewable energy projects on the Family Islands.

She said at yesterday’s press briefing that talks are expected to conclude in the next two to three weeks.

In December, BPL requested proposals to create “more independence in energy generation” in Family Island communities.

In June, officials announced the selection of several companies, including Verdant and Consus, Providence Advisors, INTI Corporation and Osprey Construction, to produce renewable energy-based independent power producer projects for various Family Islands.

Mrs Coleby-Davis’ update yesterday followed BPL’s finalisation of a power purchase agreement with Bahamas Utilities Holdings (a FOCOL subsidiary) to increase generation capacity and improve reliability for businesses and residents.

While full details of the partnership have not been disclosed, officials confirmed it is a 30-year agreement with key performance indicators, penalties for non-performance, and provisions to lock in rates.

The agreement also enables BPL to assume full ownership and control of the generation capacity provided through the power purchase agreement once it is in a stronger financial position.

When asked when BPL will be in a better financial position, Mrs Coleby-Davis said the goal is to reduce BPL’s legacy debt and “get it in a better standing within six to seven years so that we can begin to build up and improve our operations.”

“These PPAs and these IPP partnerships will do a great deal of helping BPL begin to pay down their legacy debt and provide the lower cost electricity to Bahamians at the same time,” she added.

She reiterated that the power purchase agreement includes fuel costs and capacity, explaining: “Everything under a PPA structure is a capacity charge.

“So whatever usage comes out of the system, whatever you as a consumer is pulling out of the system, we would have that usage and those engines generating the fuel and the power to put into the grid, and based on those numbers, they’ll be able to determine how much you used in that month, and what the capacity charge is, and so all of that detail is in exhibits that are attached to the agreement.”