A renewable energy provider that raised more than $130m from Bahamian investors yesterday said site clearance for its Abaco and Eleuthera plants will begin this week.

EA Energy, in a statement, said work is beginning on its hybrid solar and liquefied natural gas power plants for the two islands now that all necessary financing and environmental permits have been obtained.

It added that design and engineering works for the two power plants are at an advanced stage, with full-scale vertical construction set to begin in the coming weeks. The new facilities will be constructed next to to the existing Bahamas Power & Light (BPL) facilities at the Wilson City power plant on Abaco and the Hatchet Bay power station on Eleuthera.

EA Energy said its hybrid plants will integrate LNG, solar photovoltaic systems and battery energy storage to create resilient microgrid generation. “EA Energy is proud to reach this pivotal milestone. With financing secured and permits in hand, we are moving full speed ahead to deliver the reliable, cost-effective energy these islands deserve,” said Erold Farquharson, EA Energy’s chief executive.

“This is not just an investment in infrastructure; it’s an investment in people, in businesses, and in the long-term prosperity of Abaco and Eleuthera. By the end of 2026, it is our intention to make load shedding due to power generation loss a thing of the past. That’s the standard of service we’re committed to providing.”

EA Energy said construction is expected to create around 38 full-time jobs - 22 in Abaco and 16 in Eleuthera. The plants are targeted for construction completion in the 2026 fourth quarter, with operations beginning shortly afterwards.

Jobeth Coleby-Davis, minister of energy and transport, said the projects showed the Government’s commitment to modernising the energy sector with cleaner, more efficient and sustainable power generation.

“By embracing hybrid technology, we are not only improving the reliability and affordability of power for Abaco and Eleuthera, but we are also taking a meaningful step toward reducing our dependence on imported fuels and cutting our carbon emissions, which is a pledge made by this administration,” she said.

“This is the kind of progress that delivers real benefits to the Bahamian people and our environment.” Clay Sweeting, minister of works and Family Island affairs, added: “For far too long, residents of Eleuthera have endured the frustration and economic strain caused by unreliable electricity. This project marks a turning point.

“These new facilities will not only bring reliable, affordable energy to our communities, they will also fuel economic growth, create jobs, and give our young people more reasons to build their future right here at home. This is progress you can see, and it’s the kind of progress we are committed to bringing to every corner of The Bahamas.”

EA Energy, in its capital-raising offering documents issued to Bahamian investors, said it has also been given effective exclusivity to supply power on both islands if it performs, meaning a public monopoly in BPL has been swapped for a private one. It won the bid to supply renewable energy on both Abaco and Eleuthera.

“The ‘limit on third-party purchases of energy’ provision ensures that BPL will exclusively source energy from the project as long as the facility meets 100 percent of the demand requirements for its customers in Eleuthera and Abaco, and remains capable of delivering at least the agreed minimum purchase obligation,” EA Energy said.

EA Energy is estimating that its Eleuthera and Abaco power plants will supply energy at 25.47 cents and 25.79 cents per kilowatt hour (KWh), respectively, when they begin generating electricity in the 2026 third quarter. Site clearance work was already shown to have begun.

Given that BPL was charging a combined all-in 35 cents per kilowatt hour over 800 KWh in February 2025’s billing, the tariffs proposed by EA Energy would appear to represent between a 26.3 percent and 27.2 percent or just under 10 cent per KWh decrease compared to existing billings.

However, energy industry sources have queried these prices. One contact, speaking on condition of anonymity, said the prices shown by EA Energy appear to be wholesale prices meaning the cost it will sell energy to BPL for.

Besides being higher than BPL’s 23.5 cents per KWh all-in electricity tariff when the Minnis administration’s fuel hedge was in effect, the source said BPL would likely need to add a mark-up equal to 12-12.5 cents per KWh to cover its own costs plus grid maintenance. As a result, they suggested the price charged to Abaco and Eleuthera consumers will not see a major decrease based on these figures.

EA Energy’s equity private placement document showed that, together, the two power plants will create some 38 full-time jobs with a combined annual payroll of $2.762m. Their combined revenue is forecast to grow from $50.1m during their first full year in operation in 2027 to $131.9m in 2050 - the last year before the 25-year PPA ends.

The renewable energy provider is a joint venture between Consus, a Turkish energy company, and Verdant, a Bahamian entity for whom few details were disclosed. Following the private placement equity raise, both partners will retain a 37.5 percent ownership interest with the remaining 25 percent held by Bahamian investors. Each will thus be selling off 12.5 percent of its existing 50 percent equity stake.

The participants in EA Energy, and the renewable provider itself, were both described as having existing strong Bahamian links. EA Energy was said to have the Nassau Cruise Port as a “sister company”, although the link was not fully explained, while Verdant is a “shareholder in Island Power Producers (IPP)..... the 60 mega watt (MW) LNG-fuelled shore power project development in New Providence”.

That will supply clean energy to ships docked at Nassau Cruise Port. Erold Farquharson, a contractor, who is Island Power Producers’ managing director, is also named as EA Energy’s chief executive, and EA Energy’s Board includes as directors Mr Ferguson and Antoine Bastian, the Genesis Fund Services’ principal.

Island Power Producers’ address, No.3 Bayside Executive Park in western New Providence, is the home of Levant Advisors, whose principals are listed on the company’s website as Mr Ferguson and Mr Bastian. The duo are heavily involved with the Government’s efforts to monetise The Bahamas’ seagrass meadows, mangroves and other so-called ‘carbon sinks’ via the creation of ‘blue carbon credits’.