By Gerrino Saunders

Bahama Journal News Editor

Public discussion surrounding the government approach to energy reform policy
has been mixed with some residents unconcerned about who own Bahamas Power
and Light (BPL) as long as there is affordable and reliable energy, while others are
unhappy that the government is seemingly privatizing yet another essential service
entity with little details about the deal being shared with the public.
During debate on the 2025/2026 budget the Minister of Energy and Transport
JoBeth Coleby-Davis while giving an update on the progress being made with
energy reforms on New Providence and the Family Islands also sought to dispel all
claims that BPL is being privatized following its deal with Bahamas Grid
Company (BGC) a local subsidiary of Pike Corporation an energy solutions
company based in Charlotte, North Carolina.
She said, “Energy is more than electricity; it is a lifeline of our economy and the
pulse of every Bahamian household. Our energy challenges are not minor – we
have frequent outages and power fluctuation events, outdated and insufficient
energy infrastructure, high operational costs, and a $500 million debt weighing
down BPL.”
The Energy Minister explained that as part of ongoing efforts to modernize the
energy sector, the BGC was established.
She described it as a dedicated transmission and distribution (T&D) entity
responsible for upgrading and managing New Providence’s grid infrastructure,
which follows a widely adopted model in the global energy industry, where
ownership and operation of grid assets are managed separately from retail and
generation functions to improve operational efficiency and system reliability.
She said, “I want to make sure it is clear that the formation of BGC was made
possible through a public-private partnership. BPL is still part owner of BGC, and
that means if BPL owns part of BGC the Bahamian people still have ownership in
BGC, there is no privatization of BPL.
“They (FNM) understand public private partnership when it’s good for them, but
try to muddy the waters when we are doing right by the Bahamian people, and we won’t allow it,” said Coleby-Davis who explained that the partnership with BGC
brought both capital and technical expertise to support the T&D upgrade.
Continuing she explained that the arrangement also aligns with established utility
practices, enabling long-term infrastructure investment while ensuring stable grid
operations.
“Under the new structure, BGC will oversee the poles, wires, and substations on
New Providence. BPL will continue to manage customer service, billing, and third-
party generation agreements, maintaining continuity in customer-facing operations.
This division of responsibilities reflects a proven industry model for improving
service delivery and supporting grid modernization,” said Coleby-Davis.
She revealed that the T&D upgrade project has kicked off with the first new
transmission poles being put into the ground this week, and the work is expected to
be finished within the next 12 months.
According to Coleby-Davis Bahamas Grid has made significant progress
upgrading and modernizing New Providence’s grid as they have installed or
replaced 237 overhead distribution poles, re-conducted more than 107,000 feet of
distribution wire, load balanced 58 circuit miles serving over 16,000 customers,
and enhanced system reliability by installing 47 IntelliRupters to improve system
reliability.
She said BGC has also performed over 2400 hours of emergency work, expanded
underground services, and strengthened the transmission system with 51 new steel
poles, 400 feet of fiber, and 2400 feet of new conductors.
The government has also taken some criticism for the various power purchase
agreements for New Providence providing new and cleaner power generation.
“A power purchase agreement, or PPA, is a contract where we agree to purchase
power from a seller at a fixed price for 25 years. For us, it is a win-win value
proposition: a PPA is an effective way for the Bahamas to lock in a reliable energy
supply at attractive prices for decades to come, and for the power generation
developers to have a guaranteed revenue stream in exchange for taking on the risk
to develop their power project,” explained the Energy Minister.
However, the government has come under fire from the official opposition that
claims the Davis administration is using the PPA’s to enrich their supporters.

Coleby-Davis said so far the government has signed 177 megawatts of liquefied
natural gas or LNG power, 60 megawatts of solar power, and 10 megawatts of
battery energy storage for New Providence.
She said, “LNG has the advantage of being a cleaner and more transportable fuel
for our base load and solar energy as an integrated part of energy portfolio. Solar
along with battery storage systems enhances grid stability, supports peak shaving
or using battery power during high demand, and provides backup power.
“The timeline for energy generation in New Providence involves switching 50% to
LNG during the fourth quarter of 2025, with the remainder by the fourth quarter of
2026.”
Coleby-Davis revealed that there are plans in place for PPAs for a number of
Family Islands including Abaco, Eleuthera, Great Exuma, Andros, Cat Island, San
Salvador, Long Island, Great Harbour Cay, Bimini, Black Point, Staniel Cay,
Farmer’s Cay, Moore’s Island, and Harbour Island.
“The PPAs that have been signed—or are nearing execution—include utility scale
solar projects are expected to be completed during the second half of 2026,” shared
Coleby-Davis.
Meanwhile, as for lowering the cost of electricity Coleby-Davis said one of the
mechanisms the government introduced to assist in reducing the cost of electricity
is the implementation of the Equity Rate Adjustment Initiative, better known as the
ERA Implemented in July 2024.
She said, “The ERA has created a more equitable balance in the tariff structure and
encourages energy conservation. Under the ERA, we’ve zero rated the base rate for
the first 200 kilowatt-hours of monthly residential electricity. The aim of this
policy decision is to lower the cost of electricity bills for households and ultimately
the cost of living for Bahamian families.”
She noted that between January and May 2025, an average of over 63,000
households across The Bahamas received monthly electricity bills under $125.
The Energy Minister also spoke highly about the government’s “Merry and Bright
– Turn on Your Lights” holiday reconnection programme where an estimated more
than 4,000 customers that were disconnected were allowed to pay 10 percent of
their outstanding balances to have their electricity turned on, and for the remaining
balance BPL offered flexible payment terms.

She said, “At the conclusion of the programme, approximately, 2,811 households
– 2,052 in New Providence and 759 in the Family Islands enrolled in the initiative.
And I am advised that the households are making their payments. This is what
opportunity is all about.”