By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Government yesterday signed what is expected to be the first of several utility scale solar energy power purchase agreements (PPAs) for New Providence with Madeleine Solar Power.

Prime Minister Philip Davis KC said the deal is “only the beginning” and the project will increase generation capacity at Bahamas Power & Light’s (BPL) Blue Hills power station.

He added that renewable energy projects will be rolled out on the Family Islands as well, and the integration of renewables into the energy mix will create a new future that “Bahamian families and businesses no longer struggle with keeping the lights on”.

“INTI’s solar project will integrate seamlessly into the national grid, adding critical capacity right here at Blue Hills power station. Seventy mega watts (MW) of solar power is supported by 35 MW of battery storage. This system is designed to stabilise, sustain and support our growing energy demands,” said Mr Davis.

“Of course, our solar expansion is bigger than New Providence. Across our Family Islands, independent power producers are laying the foundation for a cleaner, more independent energy future. From Abaco to Andros, Eleuthera to Exuma, Long Island to San Salvador, the shift is happening with tailor-made solutions for each island.”

JoBeth Coleby-Davis, minister of energy and transport, said BPL employees will be involved in the project and have the opportunity to gain new knowledge and skills through training and development. She said the PPA also includes key performance indicators (KPIs), penalties for non-performance and provisions that will lock in rates, protecting Bahamian businesses from sharp increases.

“They have key performance indicators. The KPIs will advise, based on our agreed approach, what standards they should perform at. There’s minimum requirement in terms of the power we should be receiving to the grid from the renewables, and just operating and technical performance requirements,” said Mrs Coleby-Davis.

“Those standards will be tied to penalties that will trigger if they fall below the standards that have been agreed by our technical team, so that was worked on through their technical team and our teams at BPL to make sure it’s within the standard and the minimum requirements to generate the renewable portion of the power that would be needed for us.”

Mrs Coleby-Davis explained that independent power producers (IPPs) are contracted for 15 years and will build the solar farm and assist with training BPL employees.

“I think that the IPPs are contracted for about 15 years. It’s build, own, operate, transfer. So they’re going to build the facilities,” she added. “They’re going to assist with training BPL teams to operate in the renewable field. It’s going to be new for BPL, so we’re excited about them getting that training, and then at the end of that period that they serve as independent power producers, it’ll be transferred to BPL.”

Mrs Coleby-Davis said while there may be some uncertainty about the future of renewable energy globally, the Government is committed to “transforming” the energy sector and integrating renewable energy .

“Now is not lost on me, as the signing of this PPA comes at a coming of uncertainty in the energy space, with concerns about the global commitment to reduce carbon emissions and expand the use of renewable energy in doubt,” said Mrs Coleby-Davis.

“However, we in the Davis administration must remain focused on transforming our energy sector for all Bahamians. We cannot - and we will not - allow ourselves to become distracted or caught up in the global political discussion. For us, the welfare of the Bahamian people takes precedence.”