The Tribune

By JADE RUSSELL

Tribune Staff Reporter

jrussell@tribunemedia.net 

BAHAMAS Power and Light (BPL) signed a Power Purchase Agreement (PPA) with Madeleine Solar Power Ltd, marking a major step toward renewable energy expansion — but government officials did not disclose the cost details of the deal.

The signing ceremony took place at the Blue Hills power station. Officials said the Madeleine Solar Power plant will be built at the Blue Hills station over the next 18 months, creating jobs for over 100 Bahamians. The solar farm is expected to provide at least 20 megawatts of power, representing 7.4 percent of BPL’s power demand in New Providence. This marks the first utility-scale solar project for New Providence, aiming to lower energy costs for customers and enhance energy security.

Minister of Energy and Transport Ms JoBeth Coleby-Davis was unable to provide the project’s cost, stating she would need clarification. In agreements like this, the cost of electricity is typically structured as a fixed rate per megawatt-hour (MWh) over the contract period, ensuring price stability for the utility while allowing the independent power producer to recover investment costs and earn a return. Without cost details, it is unclear how the deal will translate into meaningful savings for consumers.

 When asked about the duration of the agreement with the Bahamian-owned company, Madeleine, Mrs Coleby-Davis noted that independent power producers typically have contracts for about 15 years.

 “They’re going to build the facilities,” she said. “They’re going to assist with training BPL teams to operate in the renewable field. It’s going to be new for BPL, so we’re excited about them getting that training, and then at the end of that period that they serve as independent power producers, it’ll be transferred to BPL.” 

 The PPA includes clear performance indicators and penalties for non-performance, ensuring fixed rates that will protect Bahamian households and businesses. The minister added that the performance indicators will specify the standards the Madeleine Solar farm must meet for renewable energy production. 

 Ms Coleby-Davis emphasised that Madeleine and other Bahamian companies were chosen to promote greater energy independence. She also mentioned that more PPAs with other Bahamian companies would be signed in the coming weeks. While acknowledging the uncertainty in the energy sector due to global concerns about carbon emissions and renewable energy expansion, she gave an assurance that the government remains committed to the energy sector and will not be distracted by “global political” discussions.

 Owen Bethel, CEO of Inti Corporation, said that the solar project at Blue Hills would be branded under the SPV as Madeleine Solar Power Ltd. He called the project a significant first step toward the government’s commitment to renewable, sustainable energy by 2030. 

Prime Minister Mr Philip “Brave” Davis shared similar sentiments, highlighting the project’s impact. He said the solar farm would integrate seamlessly into the national grid, adding critical capacity. Seventy megawatts of solar power are supported by thirty-five megawatts of battery storage. The system is designed to stabilise, sustain, and support our growing energy demands, Mr Davis said. 

“We are powering a future where Bahamians no longer ask, can we afford electricity, but instead ask, what more can we achieve with it?” 

“Let me be clear — this is only the beginning. As we continue to integrate renewables and invest in cleaner fuel alternatives, we are creating a new energy paradigm for future success where Bahamian families and businesses no longer struggle with keeping the lights on.”