By Clemia Neely

Journal Staff Writer

The Government of The Bahamas has taken another step toward the transformation of the way in which Bahamas Power and Light will generate electricity in New Providence.  Prime Minister Hon. Philip Davis, along with the Minister of Energy and Transport, Hon. Jobeth Coleby-Davis held a press conference on Thursday, for the signing of a Sale and Purchase Agreement for Liquified Natural Gas (LNG) and a Terminal Development Use Agreement.  The terminal will be constructed at the BPL Clifton Pier Power Station.

During the signing Mr. Davis said the agreement represents an “essential component” in the government’s energy reform and economic development plans.  He thanked the executives of FOCOL led by president and CEO Dexter Adderley for partnering with the government to make its vision for LNG a reality.  The Prime Minister also expressed his gratitude to executives at Shell, the Minister responsible for Energy and Attorney-General Ryan Pinder and his team along with other stakeholders who made it possible.   

The Hon. Jobeth Coleby-Davis, Minister of Energy and Transport said, “from as far back as 2002, we’ve spoken about the need to diversify our fuel mix. However, beyond the talk, not much progress was made.  With today’s signing on the sale and purchase agreement for LNG and our terminal development use agreement, our nation embarks on a new chapter in the transformation of our energy sector.”

Prime Minister Davis said the agreement brings The Bahamas one step closer to ushering in a new era for energy.  “Energy reform is, perhaps, the most powerful policy intervention we could make to provide relief and lower costs for households and businesses.  Our reforms began with the Equity Rate Reduction.  The results of that adjustment speak for themselves. In January, we had 58,000 households with bills below $125.00.”

Mr. Davis remarked on the aging and deteriorating power grid this system will replace.  He also noted that there was a complete lack of renewable energy, and a power company nearly crippled by over half a billion dollars in debt.  He said there were many obstacles standing in the way of the government’s energy reform ambitions, but their greatest challenge created their greatest opportunity.  “We announced plans to solarize our islands.  Utility-scale solar is on track for Abaco, Andros, Eleuthera, Exuma, New Providence, Long Island, and San Salvador — almost every major island.  This process is being driven by several Bahamian companies leading the way to our renewable energy future,” Prime Minister Davis said.

The Prime Minister also referred to the modernization of the power grid, which will improve reliability and lower costs.  Phase one is set to begin before the end of the year, which will not only have a significant impact on our economy, but it will also include the creation of new jobs, he said.