The Government is hoping that Bahamas Power & Light (BPL) can become “cash flow neutral” by 2032 if all the benefits from its energy reforms are realised, it was asserted yesterday.

Prime Minister Philip Davis KC tabled the ‘Securing The Bahamas’ energy future’ report, detailing the anticipated economic and social benefits from the industry’s overhaul, in Parliament as his administration sought to make the case for “far-reaching” changes to a sector that has been “in crisis”.

“These reforms are already delivering results. By 2025, the switch to liquefied natural gas (LNG) is projected to generate $90m in savings. When all projects are in place, the total annual savings across the system are expected to exceed $130m. Financial projections indicate that Bahamas Power & Light could reach cash flow neutrality by 2032,” the report said.

It made no mention of the fuel hedging mishap, or the estimated $110m reclamation of ‘under-recovered’ fuel costs that sent customer bills skyrocketing in summer 2023 through up to 163 percent fuel charge increases, instead focusing on the present and future alongside the draft National Energy Policy 2025-2030, which was also unveiled yesterday for public consultation.

The Policy, which has yet to be finalised, calls for the creation of a Department of Energy. And it sets out targets, such as cutting energy losses from BPL’s grid, known as the transmission and distribution (T&D) system, from the present 15 percent to 10 percent by 2030, while also seeking to “decrease annual system outages due to failures” in the grid by 30 percent come the same year.

Energy efficiency and conservation is also a key focus. “The Government has been making consistent and sustained efforts to meet its international obligations regarding climate change and energy efficiency, evidenced in part by the identification and execution of energy-saving measures within Government-occupied buildings,” the draft National Energy Policy said.

“In 2023, energy audits were conducted on more than 70 such buildings, assessing their energy use and identifying opportunities for savings. The audit results show the potential for an annual savings exceeding $1m, with some government buildings currently realising such benefits.”

“To date, 25 percent of government buildings’ energy consumption have been audited, and it is a goal of the Government to aggressively audit all government-occupied buildings by 2026. The Government, through the Ministry of Energy and Transport, is also committed to promoting energy efficiency in Bahamian homes to mitigate cost of living and enhance climate change resilience.”

The National Energy Policy said the Bahamas’ Customs headquarters building on Thompson Boulevard had reported energy savings worth $65,000 in 2023 compared to the prior year as a result of implementing energy efficiency measures.

The draft Policy also reveals that the Cabinet on November 19, 2024, approved the creation of a Department of Energy to give “focused attention” to all issues regarding the industry given its importance to The Bahamas and the country’s economic competitiveness.

“Recognising the very significant role of the energy sector to national growth and development, the Government has established the Department of Energy to bring focused attention to matters concerning the energy sector in The Bahamas,” it confirmed. 

“While the Government also recognises and acknowledges URCA’s role, jurisdiction and statutory mandate to regulate the energy sector in The Bahamas, the Department of Energy has been given the clear mandate to lead, oversee and superintend certain key energy sector initiatives.

“The Government expects that the Department of Energy will work closely with the Ministry of Energy and Transport and other energy sector agencies, including URCA, to implement the Government’s National Energy Policy.”

The draft National Energy Policy also conceded that the use of renewable energy by businesses and households has been painfully slow to expand since the first Electricity Act was passed in 2015. “While renewable energy sources like solar power are gradually increasing in The Bahamas, their impact on the fuel landscape remains limited,” it conceded.

“Since the passing of the Electricity Act in 2015, the installation of [solar] photovoltaic (PV) panels has grown steadily. However, they currently account for only about 2.5 percent of the total installed generation capacity. Consequently, conventional fuels continue to dominate the energy mix, although the Government remains committed to promoting cleaner, renewable alternatives to reduce the country’s dependence on imported fossil fuels.”

It added: “The most recent assessments show that approximately 12,000 kW (kilowatts) of privately installed photovoltaic capacity exists within The Bahamas. Of this capacity, approximately 80 percent is installed in commercial settings, while the remaining 20 percent is residential.

“However, approximately 75 percent of the total number of systems installed are residential. Furthermore, approximately 90 percent of all such systems are situated on the island of New Providence. In addition to privately installed systems, there is approximately 14,000 kW of utility-scale photovoltaic renewable energy capacity deployed within The Bahamas.

“Battery Energy Storage Systems (BESS) have also been deployed within The Bahamas, primarily by electricity sector licensees as part of their power generation assets. To date, approximately 47,300 kWh (kilowatt hours) of BESS capacity has been installed by these licensees. This capacity plays a critical role in diversifying the energy mix and reducing the country’s dependence on traditional fossil fuels.”