Two years after the government promised a renewable energy act and the amendment of the 1956 Electricity Act, it appears the only significant change to the Bahamas energy framework is a tax concession to The Bahamas Electricity Corporation (BEC) and the release of a National Energy Policy, which allows for a small amount of solar power self generation and plots a forward path for energy reform over the next 20 years.
The only amendment to the 1956 Act since 2012 was concluded last year, and removed the excise tax on fuel imported for electricity generation by BEC "or by any other entity approved by the minister and published in the gazette."
And while the new energy policy allows renewable energy self generation (RESG) of a limited amount of solar power, some critics say it does not go nearly far enough. One outspoken critic went so far as to say the government's policy would "kill solar" in The Bahamas.
Nonetheless, the policy does represent forward momentum on energy reform.
Sector Profile
The Bahamas has nearly complete electrification. About 99 percent of the country has electricity, provided by 16 isolated island grids. That power is supplied by BEC, which services 93,000 customers via 29 generating plants with an installed generating capacity of 438 megawatts (MW), and the Grand Bahama Power Company, which services 19,000 customers on Grand Bahama operates one diesel plant, two gas turbines and one steam plant. Its installed capacity in 2014 is 98.5 MW.
The jurisdiction is almost 100% dependent on imported oil, and international and local oil companies supply the fuels and lubricants derived from fossil fuels used in the electricity and transport sectors. In 2009, heavy oil was used to generate 44% of electricity and automotive diesel oil used to generate the remaining 56% of electricity produced by BEC.
It is worth noting that in the policy document's profile of the energy sector it is noted that The Bahamas experienced 12.3% 'system losses' in 2008. Waste of fossil fuels, via leaks and lack of inventory controls, are a particular concern.
The energy sector is governed by the Electricity Act, which established BEC, the Out Island Electricity Act and the Out Island Utilities Act. For the electricity sector, a significant constraint in the use of renewable energy sources is the fact that the 1956 Act does not allow independent power producers (IPPs) to sell to the national grid.
The policy also notes entrepreneurial opportunities for supplying electricity to the Family Islands, if it is demonstrated to be "in the nation's best interest," and points out that the Hawksbill Creek Act also provides for an electricity franchise holder in select areas, including areas controlled by the Grand Bahama Port Authority.
After electricity, transportation is the second largest user of energy in the country. There are gaps in data and information on energy usage in the transport sector, but the policy notes that the transport sector is characterized by the use of larger, less fuel-efficient vehicles. Vehicular gasoline consumed locally increased from $63.291 million in 2002 to $201.147 million in 2008 - a three-fold increase. Similar changes occurred with jet fuel and aviation gasoline.
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