NASSAU, BAHAMAS – For years, Bahamians have faced high electricity costs and concerns over the reliability of the country’s power supply.
Now, Energy Minister JoBeth Coleby-Davis is putting a price tag on some of the longstanding challenges facing Bahamas Power and Light, which include $500 million in debt, more than $100 million in pension liabilities, and roughly $40 million a year spent leasing generation capacity.
However, that’s not all.
The minister reveals that more than 80% of BPL’s existing engines were expected to reach the end of their working lives within five years.
Speaking before finance professionals at the Bahamas Institute of Chartered Accountants conference Wednesday, Coleby-Davis acknowledged the financial burden.
Jobeth Coleby-Davis – Minister of Energy, Utility and Aviation
“Every accountant in this room knows that the most damaging liabilities are seldom, the ones on the face of the financial statements. They sit in the notes. They are deferred, rolled over 2 and carried forward, until the day they can no longer be carried...”
Coleby-Davis framed her speech around the countries impending transition to a new energy era, emphasizing the use of natural gas and solar energy.
Jobeth Coleby-Davis – Minister of Energy, Utility and Aviation
“It is also the largest coordinated energy investment in our nation’s history; more than one billion dollars in targeted investment, with $820 million for New Providence projects and $324 million for Family Island projects.”
However, as the government touts what it calls the largest coordinated energy investment in the country’s history, a key component of that plan is taking longer than expected – natural gas.
Jobeth Coleby-Davis – Minister of Energy, Utility and Aviation
“Natural gas is now scheduled to reach Clifton in early 2027 and Blue Hills in late 2027.”
Also, while the natural gas transition faces delays, the government is also pushing ahead with its renewable energy target, planning to extend it beyond New Providence.
Jobeth Coleby-Davis – Minister of Energy, Utility and Aviation
“Across the Family Islands, 23 microgrid and solar projects are in design, and plans are advancing for hybrid microgrids on Long Island, San Salvador and Cat Island.”
