Bahamas power grid overhaul estimated at US$500mn

The upgrade of Bahamas’ electricity grid requires an estimated capital expenditure of nearly US$500mn, according to the government.

The Caribbean island’s “new energy era,” which the government touts as the country’s “most ambitious” reform of the sector, points to the high price of power, frequent outages and old and failing infrastructure.

The government highlights that some transformers and substations are over 50 years old and in some cases on the verge of collapse, and that much of Bahamas Power and Light’s (BPL) capacity in New Providence and 80% in the Family Islands needs replacement.

It adds that the current system, which relies on heavy and diesel fuels, is expensive and inefficient.

New legislative and regulatory changes include support for the use of environmentally sustainable electricity, tariff adjustments for low-income users, greater competition, efficiency promotion and stronger consumer protection, underpinned by a more flexible and modern Utilities Regulation & Competition Authority.

To advance on these fronts, the government is partnering with the private sector, starting with the 27MW Family Islands solar program which will include the participation of Verdant and Consus, INTI, Osprey Construction, Providence Advisors, Roswell and Wilkem Tech.

In New Providence, independent power producers Eco Energy, Compass Solar and INTI will integrate 70MW solar and 35MW battery energy storage to the grid.

Natural gas is another component of the sector’s revamp, with Bahamas Utilities Holdings and Shell Oil supporting the conversion to LNG at New Providence as an alternative to heavy fuel oil and automotive diesel oil. It is expected that 177MW of combined cycle will be built at the Blue Hills power plant.

Regarding transmission and distribution, Island Grid Utilities will help kick off an upgrade project this year, and the government selected the Encorp Egility platform for distributed energy resource integration and engaged ECF Engineering Consultants as the owner’s engineer.