Government’s Cabinet Sub-Committee on Energy has been considering proposals that would introduce Liquid Natural Gas (LNG) into Bahamas Power and Light’s (BPL) mix of fuel as well as proposals to build the facilities for the bunkering of this kind of fuel, Minister of Works and Utilities Alfred Sears said yesterday.
The former government went through a tender process to find a vendor to provide LNG and enter into a power purchase agreement to generate electricity for the island of New Providence.
The government chose Shell and entered into negotiations that stalled and were left undetermined as of the general election a year ago.
Now, while BPL contends a deal with Shell is not off the table, other providers are being considered.
The former government contended Shell was the only consideration despite not being able to reach an agreement over a multi-year negotiation period.
Sears said yesterday that the committee is even considering proposals for fuel supply and bunkering separately, while also reviewing proposals for improving efficiency at the power company.
“Some of these proposals relate to begin the utilization of LNG as a source of fuel and the other is to begin bunkering,” said Sears.
“Yet another proposal more related to cost cutting efficiency at BPL will be to consider and adopt the recommendations of the McKinsey Report on the operations of BPL.
“The report has made several recommendations to enhance and introduce efficiency and a more nimble management and operational structure. We fully believe that these measures will lead to the transformation of BPL in the years and months ahead.”
Sears said all of these changes will help to diversify how BPL produces power while moving the country closer towards a greater reliance on renewable energy.
“… These projects combined, will significantly broaden the diversification of energy sources within BPL’s generation fleet and will compliment others already commissioned including the first solar micro-grid system in Ragged Island, an award-winning solar and battery storage solution – which provides 90 percent of the island’s generation,” he said.
“We are proud of these renewable projects that are significant steps in achieving 30 percent renewables as a part of the generation mix by 2030.”
