June 28, 2025

Bahamas solar power agreement: 132 MW Plant Set for 2025

Bahamas solar power agreement launches 132 MW plant on Andros Island

The Bahamas is taking a significant step towards a greener future with plans to construct a 132 MW solar power plant on Andros Island. This initiative is part of an agreement signed by Prime Minister Philip Davis and representatives from the Saudi Arabian company, ACWA Power.

Announced during the 2025 United Nations Climate Change Conference (COP30), this project is a key component of the Bahamas’ broader strategy to integrate renewable energy into its national grid. According to PV Magazine, this effort underscores the Bahamas’ commitment to addressing climate change and reducing its carbon footprint.

Project specifics under the Bahamas solar power agreement

The solar power plant is slated to become operational by 2025 and will significantly cut down the Bahamas’ dependence on diesel generators, which currently account for 99% of the country’s public electricity production. The plant will occupy a 1,200-acre site on Andros Island and is part of a larger initiative to promote renewable energy sources.

In recent years, the Bahamas has been actively expanding its renewable energy capacity. The 2019 introduction of the Renewable Energy Act was a pivotal move to encourage the development of solar and wind energy projects. This act offers tax incentives and other benefits to companies investing in renewable energy infrastructure.

Moreover, the Bahamas has implemented a net metering program allowing homeowners and businesses to generate their own renewable energy and sell excess electricity back to the grid. This initiative has facilitated the installation of small-scale solar systems across the islands.

Government and global backing for the Bahamas solar power agreement

The Bahamian government has also forged partnerships with international organizations to advance its renewable energy objectives. In 2019, the Inter-American Development Bank approved a $170 million loan to support various renewable energy projects, including solar panel installations on government buildings and the development of microgrids in remote areas.

In a notable collaboration with the United Nations Development Programme (UNDP) in 2020, solar systems were installed on schools and clinics throughout the Bahamas. Funded by the Global Environment Facility, this project is anticipated to reduce carbon emissions by 1,500 tons annually.

These initiatives align with the Bahamas’ commitments under the Paris Agreement to reduce greenhouse gas emissions and increase the share of renewable energy in its energy mix. The country aims to generate 30% of its electricity from renewable sources by 2030.

Challenges and outlook for the Bahamas solar power agreement

Despite these robust efforts, the Bahamas faces several challenges in transitioning to renewable energy. The country’s small size and scattered population complicate the development of large-scale renewable projects. Additionally, the high costs associated with renewable technologies and the lack of local expertise present barriers to infrastructure expansion.

Nevertheless, the Bahamian government continues to express a strong commitment to its renewable energy goals, actively attracting investment in the sector. In 2022, plans were announced for a 20 MW solar farm on New Providence Island, the most populous island in the Bahamas. Expected to be completed by 2025, this project will further decrease the country’s reliance on fossil fuels.

Exploring offshore wind energy is another promising avenue for the Bahamas. With a vast maritime territory and strong wind resources, the country is ideally positioned for offshore wind farms. Feasibility studies are currently underway to assess the potential of such projects.

In conclusion, the Bahamas’ solar power plant project on Andros Island represents a significant stride towards reducing its reliance on diesel generators and advancing its renewable energy ambitions. Despite existing challenges, the country remains steadfast in its renewable energy objectives and continues to draw investment in this vital sector.


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