NASSAU, The Bahamas – Bahamas Power and Light (BPL) is in the advanced stages of a plan with a private investor to construct a 60 MW photovoltaic renewable power generation plant in New Providence, which will result in a decrease in the company’s fuel costs and offer jobs for Bahamians. The Hon. Alfred Sears, Minister of Works and Utilities, made the announcement in a Communication to Parliament, Wednesday, October 5, 2022.

Said Minister Sears, “Once added to the generation network in New Providence, this plant is expected to decrease BPL’s annual fuel costs by $23 million.  Of significant importance, the project in its design, implementation and operational phases will provide much-needed jobs and training opportunities for Bahamians. More importantly, though, it will bring down the cost of electricity and reduce foreign exchange.”

As Minister with remit for BPL, Minister Sears explained that the issue facing the country’s electricity provider is “critical.”

“BPL is on the precipice of financial fallout if we do not act immediately to align the fuel charge with current fuel prices as well as to take account of the losses incurred by the utility in the midst of the COVID-19 pandemic.”

BPL announced yesterday (October 4, 2022) an increase in electricity rates due to the rising cost of fuel for the generation of electricity. Although cognizant that an increase in the fuel charge may not be popular at this time, Minister Sears assured Parliamentarians that deferring it or refusing to do it will create greater hardships down the road or result in in the “catastrophic failure” of BPL. He emphasized that the fuel charge increase is for a period of approximately 12 months and is intended to help “right size” and not enrich BPL.

“BPL is well aware of the challenges consumers face in managing their electricity bills. BPL’s fuel charge increase, though somewhat painful, is absolutely necessary and comes after much forethought as to timing and impact. Beyond the gradual increase strategy, the timing of the increase scheduled for this month comes after the summer months -- the highest period for consumption.”

Moreover, Minister Sears informed Parliament that the Cabinet Sub-Committee on Energy has been considering various proposals toward reducing BPL’s dependence on fossil fuels. These proposals are to begin the utilization of LNG as a source of fuel, to begin bunkering and a cost-cutting efficiency to consider and adopt the recommendations of the McKinsey Report on the operations of BPL.

“The Report has made a number of recommendations to enhance and introduce efficiency and a more nimble management and operational structure. We fully believe that these measures will lead to the transformation of BPL in the years and months ahead. These projects combined, will significantly broaden the diversification of energy sources within BPL’s generation fleet and will complement others already commissioned including the first solar micro-grid system in Ragged Island, an award-winning solar and battery storage solution- which provides 90% of the island’s generation.”

Furthermore, in a bid to incorporate sustainable energy, Minister Sears said BPL is preparing to integrate Smart Metering as part of its strategy.

“This will allow consumers to advance purchase their electricity based on their needs, similar to the way consumers now purchase pre-paid mobile plans. This gives consumers ultimate control and can help drive down energy consumption and the resulting costs to consumers in our country. Already, BPL is revising its approach to the procurement, usage and management of fossil fuels for generation through a multifaceted approach that includes, fuel diversification, and the implementation of an innovative fuel consumption reduction initiative in the Battery Energy Storage System (BESS) to be commissioned in New Providence within the next twelve months.”

In the upcoming weeks, BPL will begin an LED streetlights initiative, which is planned to put a dent in BPL’s fossil fuel consumption. The project is expected to replace 30,000 streetlights in New Providence and will result in greater safety and security in communities, and energy conservation.

Minister Sears said the government and BPL will continue to employ and exercise best strategies to ensure the provision of safe, reliable and affordable electricity across the archipelago.

“We are proud of the work we have been doing in the past year and believe that we are turning the corner on modernizing BPL as a premier electricity provider in the region,” he said.