n what has been received as a blow to hopes of an imminent solution to the country's power generation issues, the government has indicated it may be set to go back to the drawing board with respect to the terms of its request for proposals (RFP) from potential power suppliers.
Speaking about where the government stands today with regard to selecting from among over 60 proposals received, Minister of the Environment Kenred Dorsett told Guardian Business the government has determined it needs to redefine the request for proposals to which these groups have responded over the past year.
While it is not clear at this time whether the move will require a resubmission of all proposals to date, a source behind one of the proposals currently before the government blasted the decision yesterday, saying it is evidence of a "lack of political will" on the subject of energy reform.
Dorsett said the clarification of the proposal will enable the government to compare like to like when reviewing power proposals.
"The Government of The Bahamas through the National Energy Task Force (NETF) has reviewed all of the proposals submitted to us. It was clear to us after reviewing the vast majority of proposals that we were not comparing apples to apples, as a result of there not being a defined and structured RFP process."
The government hopes that by undertaking this redefinition of the RFP, it will be better placed to deal with energy strategy both from the perspective of increased use of renewable energy technologies and "addressing our political mandate to reduce the cost of electricity before the end of this year," noted Dorsett.
The minister added that the prime minister will be making "an announcement" with respect to the issue this week.
Asked specifically if the government now sees the need to redefine and clarify the RFP, Dorsett said it "has to be".
However, the minister is leaving it to the prime minister to say definitively whether those groups that have submitted proposals to date on how they would remediate the cost and reliability issues of the Bahamas Electricity Corporation would now be required to resubmit their proposals in response to a new RFP.
To date, out of the 60 or more proposals which the government has indicated it has before it from would-be power suppliers, a number have come forward to the media to highlight the benefits of their specific option.
Each group intends to enter into a power purchase agreement (PPA) whereby BEC would purchase power from them to distribute via its transmission and distribution infrastructure.
Of those who have come forward, the proposals vary widely, including among them a group which proposes to build a $700 million power plant which would eliminate demand for generation from BEC entirely, using a multiplicity of fuels which could cut generation costs; and a group which wishes to install a "low capital" investment, "distributed generation" system throughout the islands in the form of solar panels and small-scale diesel power generators.
"We've received a number of proposals, many were simply expressions of interest so this (RFP redesign) gives us an ability to separate the sheep from the goats. The prime minister will be speaking on this issue. His ministry will take the lead on this. It's a tripartite relationship between my ministry, the Ministry of Works and Development, as the deputy prime minister is responsible for BEC, and the Office of the Prime Minister is going to take the lead.
"The public should stay tuned, there are going to be some announcements shortly," said Dorsett.
A source who represents one of the proposals currently before the government yesterday decried the its decision to redefine the RFP, calling the move "another delay and lost opportunity to deliver on cheaper power".
"I am not in agreement with a revised RFP; too much time will elapse before the government can deliver on cheaper energy. T here are so many differing technologies and hybrids of the differing technologies that it would be near impossible to write a RFP that could capture all.
"The answer is that we just need the political will to make a commitment. The various options have been before government for 10 months. It's decision time!" the source added.
The latest development comes days after Prime Minister Perry Christie told Parliament that he hopes to bring energy sector reforming legislation before Parliament "before the end of the year".
The intention of that legislation will be to enable individuals to install their own renewable energy systems - such as solar photovoltaic panels - and tie into the national grid. This would remove the need to have storage batteries and reduce the cost of switching to renewables.
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