The Bahamas is transforming its national energy strategy by embracing solar power and natural gas. This strategic shift is set to enhance the country’s energy security, lower electricity costs, and help meet an ambitious goal of 30% renewable energy by 2030. Backed by a $30 million loan from the Inter-American Development Bank (IDB), this new energy policy aims to diversify power sources and tackle the nation’s high electricity costs.
IDB Loan Powers The Bahamas’ Energy Reform
The Inter-American Development Bank (IDB) loan will fund the construction of a 25-megawatt solar power plant and a 100-megawatt natural gas facility on New Providence. While the solar plant will feed clean, renewable energy into the grid, the natural gas facility will provide reliable backup power during times of high demand.
Cutting High Electricity Costs
The Bahamas currently has some of the highest electricity costs in the Caribbean, with consumers paying an average of $0.36 per kilowatt-hour. This is largely due to a reliance on imported fossil fuels, which are subject to price volatility. The shift to solar power and natural gas is expected to significantly reduce these costs for both residents and businesses.
Solar power offers clean, renewable energy with stable pricing, while natural gas provides a cheaper and more consistent fuel source than the oil currently used for generation, promising further savings.
Strengthening Energy Security
The Bahamas is vulnerable to power outages, particularly from hurricanes and other natural disasters. This transition to solar and natural gas will create a more reliable and resilient energy system, improving overall energy security for the islands.
The solar plant can generate electricity even during grid outages, and the natural gas facility will provide backup power during peak demand. This new infrastructure will also reduce dependence on imported fossil fuels, whose supply chains are often disrupted by natural disasters.
Achieving Environmental Gains
The shift to solar power and natural gas will also bring significant environmental benefits. As a clean, renewable energy source, solar power produces no greenhouse gas emissions. Natural gas, meanwhile, is a cleaner-burning fossil fuel than oil, resulting in fewer emissions.
This transition is projected to reduce The Bahamas’ carbon emissions by 25% by 2030, helping the country meet its climate goals and support the global effort against climate change.
IDB Support Accelerates Regional Clean Energy Transition
The IDB loan is part of the bank’s broader effort to support the transition to clean energy in the Caribbean. The IDB has also funded renewable energy projects in other regional countries, including Jamaica, Barbados, and the Dominican Republic. More details can be found in the Bahamas Solar News Archives.
This initiative also helps countries in the region build more resilient energy systems. The bank provides funding for projects that improve energy efficiency, increase renewable generation, and strengthen energy infrastructure. For further insights, check out the Bahamas Solar Panel Manufacturing Report.
For The Bahamas, the shift to solar power and natural gas marks a major step toward diversifying energy sources and reducing reliance on imported fossil fuels. The IDB loan will help the country build a more reliable, affordable, and sustainable energy system for its future.
