A prominent ecologist and attorney yesterday raised concerns over the government's suspension of its Renewable Energy Self Generation (RESG) program, suggesting that PowerSecure - the future managing partner of Bahamas Electricity Corporation (BEC) subsidiary Bahamas Power and Light (BPL) - could have undue influence over other energy producers. The government last week passed a suite of legislation intended to reform the electricity sector, including an Electricity Bill and the Utilities Regulation and Competition Authority (URCA) (Amendment) Bill.

The latter would give URCA regulatory oversight over the energy sector, with power producers - including BPL - serving as URCA licensees. The URCA (Amendment) Bill 2015 also requires URCA to apply the tariff rate for electricity supply services by BPL outlined in its initial management contract with PowerSecure for a five-year period, which includes principles and methodologies for the calculation, determination and variations of the rate. This, according to environmental attorney Romauld Ferreira, opens up the possibility of one URCA licensee dictating terms to other URCA licensees, such as residential clients operating their own renewable energy systems.

"There's the technical component. Of course PowerSecure and BPL are going to be concerned about their input and access operating their transmission systems. That's all understandable and I think that's the way it ought to be - it is their asset. But there's also another side. BPL is going to be a licensee under a differentiated licensing scheme, and so will large [renewable energy] providers and residents - they'll all have licenses.

"What we don't want to see happen is a scenario... where you have one licensee, BPL, controlling or contributing to the terms and conditions of how other licensees can come in under the legislation. That is a different kind of concern, which we hope will be addressed as the process moves forward," stated Ferreira.

Ferreira's comments come after BEC quietly announced the suspension of the RESG program last week. BEC stated that the suspension is necessary to better incorporate the RESG program into wider reforms to the country's energy sector. A statement on BEC's website stated that the corporation hopes to restart the program "as soon as possible."

The program, which had been championed by Minister of the Environment and Housing Kenred Dorsett, would permit applicants owning and operating wind and solar systems to tie into BEC's grid in order to both reduce personal energy costs and lessen BEC's generation and transmission burden.

"Due to proposed legislative and regulatory changes coming out of the Energy Sector Reform Process, it is regrettable that we must suspend The RESG Program.

"Customers that may have installed grid tied systems are advised that they must disconnect same until the process restarts and they complete the required approvals and authorization process," read a statement on BEC's website.

BEC similarly advised customers not to purchase or install any new renewable energy systems until the RESG program is officially restarted.

The Bahamas Chamber of Commerce and Employers' Confederation (BCCEC) has called on the government and PowerSecure to restart the program within the first six months of managing BPL, particularly in light of reports that individuals had invested in renewable energy generators for their homes since government registration of residential renewable systems began in May. However, Jack Roosevelt, managing director of BlueWave Capital and Clifton Energy Partners, Ltd., was more optimistic of the RESG program's long-term prospects.

Roosevelt told Guardian Business that the "proof is going to be in the pudding" regarding RESG due to PowerSecure's renewables mandate.

"The RESG program was really going to have to be put on hold so that it can be implemented properly under the auspices of BPL... and I don't think that it's necessarily a bad thing that it's been put on hold. I think it's more honest than anything else," he said.

Roosevelt did not believe that the government intends to scrap the RESG program moving forward, particularly the residential component, but said that it is too early to tell whether the program would change under PowerSecure's influence.

"The proof is going to be in the pudding. Within six months, BPL has to come forward with a renewable energy initiative that essentially outlines its plan for implementing renewable energy into the energy matrix for the entire country. That changed from earlier versions of the bill, which said potentially within three years of taking over.

"Shortening that time to six months was an extremely encouraging side to the bill. I think waiting six months from when PowerSecure takes over BPL to see exactly how RESG is going to be implemented is fine as long as it's done correctly," Roosevelt said.

Clifton Energy Partners last year submitted a proposal to develop a solar plant on hundreds of acres owned by the estate of the late Nancy Oakes. Guardian Business understands that the company has been in talks with both BEC and PowerSecure over a potential power purchase agreement that would see Clifton Energy Partners provide BPL with solar-generated power. Both Ferreira and Roosevelt spoke to the issue ahead of the BCCEC's second annual energy security forum, which will be held on December 9. While the forum will address a host of energy issues, the BCCEC hopes to gain further clarification on any alterations to the RESG program.

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