Bahamas Power and Light (BPL) is in the advanced stagesof a plan with a private investor to construct a 60 MW photovoltaic renewablepower generation plant in New Providence, which will result in a decrease in thecompany’s fuel costs and offer jobs for Bahamians. The Hon. Alfred Sears,Minister of Works and Utilities, made the announcement in a Communication toParliament, 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. Ofsignificant importance, the project in its design, implementation and operationalphases will provide much-needed jobs and training opportunities for Bahamians.
More importantly, though, it will bring down the cost of electricity and reduceforeign exchange.”
As Minister with remit for BPL, Minister Sears explained that the issue facing thecountry’s electricity provider is “critical.”
“BPL is on the precipice of financial fallout if we do not act immediately to alignthe fuel charge with current fuel prices as well as to take account of the lossesincurred by the utility in the midst of the COVID-19 pandemic.”
BPL announced yesterday (October 4, 2022) an increase in electricity rates due tothe rising cost of fuel for the generation of electricity. Although cognizant that anincrease in the fuel charge may not be popular at this time, Minister Sears assuredParliamentarians that deferring it or refusing to do it will create greater hardshipsdown the road or result in in the “catastrophic failure” of BPL. He emphasizedthat the fuel charge increase is for a period of approximately 12 months and isintended to help “right size” and not enrich BPL.
“BPL is well aware of the challenges consumers face in managing their electricitybills. BPL’s fuel charge increase, though somewhat painful, is absolutely necessaryand comes after much forethought as to timing and impact. Beyond the gradualincrease strategy, the timing of the increase scheduled for this month comes afterthe summer months -- the highest period for consumption.”
Moreover, Minister Sears informed Parliament that the Cabinet Sub-Committeeon Energy has been considering various proposals toward reducing BPL’sdependence on fossil fuels. These proposals are to begin the utilization of LNG asa source of fuel, to begin bunkering and a cost-cutting efficiency to consider andadopt the recommendations of the McKinsey Report on the operations of BPL.
“The Report has made a number of recommendations to enhance and introduceefficiency and a more nimble management and operational structure. We fullybelieve that these measures will lead to the transformation of BPL in the yearsand months ahead. These projects combined, will significantly broaden thediversification of energy sources within BPL’s generation fleet and willcomplement others already commissioned including the first solar micro-gridsystem 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 ispreparing to integrate Smart Metering as part of its strategy.
“This will allow consumers to advance purchase their electricity based on theirneeds, similar to the way consumers now purchase pre-paid mobile plans. Thisgives consumers ultimate control and can help drive down energy consumptionand the resulting costs to consumers in our country. Already, BPL is revising itsapproach to the procurement, usage and management of fossil fuels forgeneration through a multifaceted approach that includes, fuel diversification,and the implementation of an innovative fuel consumption reduction initiative inthe Battery Energy Storage System (BESS) to be commissioned in New Providencewithin the next twelve months.”
In the upcoming weeks, BPL will begin an LED streetlights initiative, which isplanned to put a dent in BPL’s fossil fuel consumption. The project is expected toreplace 30,000 streetlights in New Providence and will result in greater safety andsecurity in communities, and energy conservation.
Minister Sears said the government and BPL will continue to employ and exercisebest strategies to ensure the provision of safe, reliable and affordable electricityacross the archipelago.
“We are proud of the work we have been doing in the past year and believe thatwe are turning the corner on modernizing BPL as a premier electricity provider inthe region,” he said.
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.
