NASSAU, BAHAMAS — Bahamas Power and Light (BPL) is on track to save $87 million annually through the Davis administration’s energy reform initiatives — a turnaround Prime Minister Philip Davis says will not only erase the utility’s $500 million debt but also restore long-term financial health.
In a communication to Parliament on Wednesday, Prime Minister Davis emphasized that these savings, driven by cleaner energy, better efficiency, and smarter infrastructure, are part of a broader strategy to strengthen BPL’s operations and reduce costs for consumers nationwide.
Davis noted that when his administration took office in 2021, it encountered a power grid and generation system “on life support.”
“BPL was drowning in over half a billion dollars of debt – and that’s not counting another $100 million dollars in unfunded pension obligations… At the same time, engineers and energy experts projected that BPL needed more than $500 million in critical upgrades.”
Prime Minister Davis described a system composed of 29 stations across 17 islands with incompatible, outdated machinery. “Some of BPL’s engines are so old, no one even sells the parts to fix them anymore.” In New Providence alone, over 200 megawatts of new generation capacity is needed to replace aging and rental equipment, and to accommodate demand which peaked at 281 megawatts in 2023. Forecasts show demand could exceed 435 megawatts by 2036 if left unaddressed.”
Davis noted that the family islands face even greater challenges, with 80 percent of the generation equipment needing replacement within five years. “Because BPL’s internal capacity has been limited by aging and ill-equipped engines,” Davis said, “the government has been forced to rely on rental generation at a staggering cost of $42.7 million per year.”
He condemned the burden that high energy costs have placed on Bahamians, citing widespread hardship due to outages and unaffordable bills. “Too many families have had to make the impossible choice between paying their rent or paying their light bill. This is truly unconscionable. And we won’t allow it to continue.”
To address the crisis, Davis said his administration launched a multi-phase strategy to modernize the energy sector, combining new high-efficiency power plants, renewable energy, and infrastructure upgrades. “We’re doing it all, we’re doing it everywhere, and we’re doing it now,” he said. This includes deploying solar microgrids, integrating cleaner fuels, and investing in storm-resilient grid technology.
He noted that partnerships with local and international firms have been key. New Providence Gas is helping establish the country’s first LNG terminal, while the Bahamian Grid Company, partially owned by BPL, will modernize New Providence’s power grid. BPL will oversee Family Island grid improvements. Bahamian firms like Madeleine Solar, Eco Energy, EA Energy, and The Exumas Renewable Energy Corporation are also playing major roles.
Davis said the strategy diversifies risk and positions The Bahamas for long-term energy security and affordability. He noted that the reforms are already having an impact citing that in January, 62 percent of households paid electricity bills under $125.
The financial turnaround includes projected savings of $43 million from eliminating rental generators, $13 million from debt restructuring, $15 million from streamlined operations, $12 million from improved reliability, and $4 million in dividends from the Bahamas Grid Company. “These savings will accumulate until BPL’s entire $500 million debt is erased.”
According to Davis, the LNG transition alone is expected to deliver massive returns. By 2026, 177 megawatts of LNG generation will replace 107 megawatts of rental power and add 63 megawatts of capacity. Efficiency gains and LNG adoption are projected to save $125.6 million annually.
Grid upgrades are also expected to cut costs by $10 to $30 million annually. In total, the reforms represent more than $1 billion in investment—$820 million for New Providence and $324 million for the Family Islands.
By 2030, solar generation will reach 128 megawatts, accounting for 32 percent of national energy needs—exceeding global renewable targets. During the construction phase, 1,000 jobs will be created, with hundreds more in operations and maintenance.
“Our energy future is bright,” said Davis. “It is built on the pillars of renewable energy, modern infrastructure, enhanced efficiency, and improved resilience.”
Davis noted that $130 million in grid upgrades began this month and will finish within a year. The LNG terminal at Clifton is scheduled to begin before year-end and meet base load needs within 18 months. Solar, LNG, and mixed-fuel systems will be operational by mid-2026.
Following his communication, the Prime Minister tabled Securing The Bahamas’ Energy Future: The Davis Administration’s Historic Approach to Energy Reform—a comprehensive report that outlines the national strategy to deliver reliable, affordable, and sustainable electricity to all Bahamians.
