Energy Transition Initiative, Islands Energy Snapshot - Bahamas (Fact Sheet), NREL (National Renewable Energy Laboratory)

Energy Snapshot

Bahamas

This proﬁle provides a snapshot of the energy landscape

of the Commonwealth of the Bahamas—a country

consisting of more than 700 islands, cays, and islets—

of which only 28 are populated. Located north of Cuba,

with the Turks and Caicos Islands to the southeast, the

Bahamas has an average electricity cost of $0.32 per

kilowatt-hour (kWh), in line with the Caribbean regional

average of $0.33/kWh. Like many island nations, the

Bahamas is almost 100% reliant on imported fossil

fuels, leaving it vulnerable to global price ﬂuctuations

that directly impact the cost of electricity.

Electricity Sector Data

The Bahamas Electricity Corporation (BEC) controls 438

megawatts (MW) of generation capacity, while Grand

Bahama Power Corporation (GBPC) controls the remain-

ing 98 MW. Generation is currently fueled by all imported

petroleum with a mix of diesel (56.5%) and heavy fuel oil

(43.5%), totaling 1,930 gigawatt-hours (GWh) for the entire

country. High generation costs have led to relatively high

electricity tariffs, particularly for industrial consumers. The

fuels used for generation result in potential electricity price

volatility for all rate payers.

Population

321,834

Total Area

13,880 square

kilometers

Gross Domestic Product (GDP)

$11.4 billion

U.S. dollars (USD)

Share of GDP Spent on

Fuel and Imports

Electricity – 4.59%

Total – 11.35%

GDP Per Capita

$32,000 USD

Urban Population Share

84.3%

Bahamas

The Bahamas’ Clean Energy Goal:

30% by

2030

Government and Utility Overview

Government

Authority

Ministry: Ministry of the Environment

Key Figure: The Honorary Kenred Dorsett

Designated

Institution for

Renewable Energy

None

Regulator

Utilities Regulation Competition Authority

Utilities

Name: Bahamas Electricity

Corporation

Government-

owned

corporation;

currently in

reform process,

which will split

the company

into two

companies

Serves 95,000 customers

in New Providence and the

Family Islands, providing

85% of the electrical

generation across the

country.

Name: Grand Bahama

Power Corporation

Public-private

corporation

including

foreign-owned

utilities

Serves 19,000 customers

from the island of Grand

Bahama from West End to

Sweetings Cay. Majority-

owned by Emera Inc.

Islands

Diesel and

Heavy Fuel Oil

73.5%

Natural Gas

26.5%

Commercial,

Small 8.33%

Residential

34.85%

Street Lighting 1.89%

Commercial,

Large 42.58%

Losses 9.61%

Other 2.74%

Energy Generation Mix

Energy Consumption by Sector

Based on average global generation costs for renewable

technologies, electricity rates in the Bahamas offer an oppor-

tunity for renewable energy to diversify the fuel portfolio and

reduce rate volatility.

The islands that comprise the Bahamas have moderate poten-

tial for variable renewables—wind and solar—but limited or

no potential for baseload renewables such as hydropower or

geothermal. Interconnecting the Bahamas’ 16 isolated island

grids would be necessary to transport power generated from

renewable energy across the country.

Clean Energy Policy Environment

The Government of the Bahamas has discussed plans to

reform its energy sector through a partial-privatization of

BEC and by introducing regulation-by-contract principles

to meet the capacity for future growth, implementing more

economically viable renewable energy sources, and modern-

izing the energy sector.

There has been effort made related to increasing energy ef-

ciency in the country. As recommended in the Inter-American

Development Bank (IDB) Country Strategy for the Bahamas,

the benets of energy efciency were communicated to

residents in low-income communities, and homeowners were

offered incentives for installing energy-efcient lighting. In

addition, a Bahamas National Energy Policy was established

in response to IDB’s recommendations, which outlined

standards for energy-efcient buildings.

Electricity Sector Overview

Total Installed Capacity

438 MW (BEC); 98 MW (GBPC)

Peak Demand

234 MW (BEC); 74 MW (GBPC)

Total Generation

1,641 GWh (BEC); 289 GWh (GBPC)

Renewable Share

<0.1 %

Transmission &

Distribution Losses

12.3%

Electriﬁcation Rate

100% (GBPC)

99.0% (Overall)

Average Electricity

Taris (USD/kWh)

Residential

$0.316

Commercial

$0.374

Industrial

None

Existing Policy and Regulatory Framework

Renewable Energy

Feed-in Tari

Net Metering/Billing

Interconnection Standards

Renewables Portfolio Standard/Quota

Tax Credits

Tax Reduction/Exemption

Public Loans/Grants

Green Public Procurement

Energy Eciency

Energy Eciency Standards

Tax Credits

Tax Reduction/Exemption

Public Demonstration

Restrictions on Incandescent Bulbs

Appliance Labeling Standards

Targets

Renewable Energy

Energy Eciency

In Place

In Development

While renewable energy policies such as net metering and

feed-in-tariffs have been debated, there are limited policy

support mechanisms in place to drive the development of

renewable energy projects in the Bahamas.

Energy Eciency and

Renewable Energy Projects

With energy-related costs estimated at 15% to 20% of

annual operating budgets for small- and medium-sized hotels

in the Bahamas, the Bahamian hotel industry launched a

signicant energy efciency initiative in 2013 in partnership

with the Government of the Bahamas to reduce energy-

related costs. The initiative aims to conduct energy audits

at participating hotels, recommend energy efciency

improvements, and develop nancial proposals to obtain

funding for implementation.

In terms of renewable energy, despite having resource

potential, economic conditions for solar photovoltaics and

solar water heaters, and efforts in 2008 and 2009 to introduce

renewable energy, the market is still largely untapped. In

2008, the Government of the Bahamas incentivized solar

technologies by reducing the import duties from 42% to 10%.

In 2009, GBPC explored wind and biomass resources and

BEC considered 13 bids for renewable energy projects, but

none have materialized yet and currently the Bahamas does

not have any installed renewable energy. In the next decade,

the Bahamas aims to have solar water heating systems on

20% to 30% of all households, which has the potential of

adding 200 GWh of heat for water per year.

Opportunities for Clean

Energy Transformation

According to preliminary assessments, wind and solar

resources offer the greatest potential for renewable energy

development in the Bahamas. The Bahamas has one of the

strongest economies in the region with $4.6 million being

invested in the renewable energy sector between 2006 and

2012. However, the government indicated that it intends to

delay any movement on renewable energy implementation

until the BEC reform process is complete.

High and volatile electricity tariffs, specically for indus-

trial consumers, offer an opportunity for fuel savings from

renewable energy installations once capital costs have been

paid back. Reduction of electricity rates has been highlighted

as a priority area by the government.

Because the Bahamas produces no fossil fuels, an increase in

domestic energy production from renewables could reduce

price volatility and the potential for supply disruptions,

resulting in more self-sufciency and stable energy costs over

the long term.

Solar

Potential: 60 MW

Installed Capacity: 0

Potential: 0

Installed Capacity: 0

Geothermal

Potential: 0

Installed Capacity: 0

Hydropower

Potential: 200 MW

Installed Capacity: 0

Wind

Ocean

Potential: Unknown

Installed Capacity: 0

Biomass

Potential: 1 MW

Installed Capacity: 0

Renewable Energy Status and Potential

Sources

The information provided in this fact sheet was developed using

the following sources.

Bahamas Electricity Corporation, Company Prole: http://www.

bahamaselectricity.com/about/company_prole/index.cfm.

Bahamas Hotel & Tourism Association, Energy Cost Rise

‘Achilles Heel’ For Private Sector: http://www.bhahotels.com/

news-updates/642-energy-cost-rise-achilles-heel-for-private-sector.

Caribbean News Now, Bahamas trails Caribbean in renewable

energy index: http://www.caribbeannewsnow.com/topstory-

Bahamas-trails-Caribbean-in-renewable-energy-index-18595.html.

Caribbean Renewable Energy Development Programme, A Review

of the Status of the Interconnection of Distributed Renewables to the

Grid in CARICOM Countries: http://www.credp.org/Data/CREDP-

GIZ_Interconnection_Report_Final_Oct_2013.pdf.

Caribbean Sustainable Energy Roadmap, Phase 1:

http://www.worldwatch.org/system/les/nPhase%201%20

C-SERMS%20Summary%20for%20Policymakers%20(1).pdf.

Central Intelligence Agency, World Factbook, Bahamas: https://www.

cia.gov/library/publications/the-world-factbook/geos/bf.html.

Climatescope 2013, Multilateral Investment Fund (FOMIN)

and Bloomberg New Energy Finance (BNEF), 2013):

https://www.bnef.com/InsightDownload/8692/pdf/.

Economy Watch, Value of Oil Imports Data for All Countries:

http://www.economywatch.com/economic-statistics/

economic-indicators/Value_Oil_Imports/.

Energy Information Administration, Frequently Asked Questions,

“How much electricity is lost in transmission and distribution in the

United States?”: http://www.eia.gov/tools/faqs/faq.cfm?id=105&t=3.

Grand Bahama Power Company, About GPBC: http://www.gb-power.

com/en/home/aboutgbpc/default.aspx.

Inter-American Development Bank: http://www.iadb.org.

International Renewable Energy Agency, Renewable Energy Country

Proles Caribbean: http://www.irena.org/DocumentDownloads/

Publications/_CaribbeanComplete.pdf.

Organization of American States, Energy Policy and Sector

Analysis in the Caribbean 2010-2011:

http://www.ecpamericas.org/data/les/Initiatives/lccc_caribbean/

LCCC_Report_Final_May2012.pdf.

Percentage Distribution of Population by Island 2000 And 2010

Censuses: http://statistics.bahamas.gov.bs/download/082103200.pdf.

Regulation by Contract: A New Way to Privatize Electricity

Distribution?: http://globalregulatorynetwork.org/Resources/

Foundations/Files/Readings/Day2-WBP7.pdf.

The Bahamas National Energy Policy, Second Report of the National

Energy Policy Committee (September 2010): https://www.bahamas.

gov.bs/wps/wcm/connect/c0934c9b-fc0e-4496-90e7-5d273c57553a/

energypolicy.pdf?MOD=AJPERES.

The Freeport News-Reforming the energy sector of the Bahamas:

http://freeport.nassauguardian.net/Politics/Parliament/

Reforming-the-energy-sector-of-The-Bahamas.

The Government of the Bahamas, Cabinet Ministers:

http://www.bahamas.gov.bs.

Tribune 242, BEC’s 170% Fuel Charge Rise Masks Operating Woe:

http://www.tribune242.com/news/2013/nov/

25becs-170-fuel-charge-rise-masks-operating-woe/.

Tribune 242, ‘No Reason To Delay’ Renewable Energy

Until 2014: http://www.tribune242.com/news/2013/aug/21/

no-reason-to-delay-renewable-energy-until-2014/.

Energy Transition Initiative

This energy snapshot was prepared to support the Energy Transition

Initiative, which leverages the experiences of islands, states, and cities

that have established a long-term vision for energy transformation and

are successfully implementing energy eciency and renewable energy

projects to achieve established clean energy goals.

Through the initiative, the U.S. Department of Energy and its partners

provide government entities and other stakeholders with a proven

framework, objective guidance, and technical tools and resources for

transitioning to a clean energy system/economy that relies on local

resources to substantially reduce reliance on fossil fuels.

Prepared by the National Renewable Energy Laboratory (NREL), a national

laboratory of the U.S. Department of Energy, Oce of Energy Eciency and

Renewable Energy; NREL is operated by the Alliance for Sustainable Energy, LLC.

Islands

DOE/GO-102015-4575 • February 2015

Page 1 photo from iStock 41158512; page 4 photo from iStock 29878236