NASSAU, BAHAMAS – Andros Island is set to experience a major energy transformation following the signing of a $20 million power purchase agreement (PPA) between the Government of The Bahamas, Bahamas Power & Light (BPL), and Andros Renewable Energy Company Limited (AREC). The agreement provides for the construction of three hybrid power plants in Nicholls Town, North Andros; Fresh Creek, Central Andros; and The Bluff, South Andros. The facilities, slated for completion within 18 months, will deliver a combined 7.2 megawatts of electricity, including 5.6 megawatts generated from liquefied natural gas (LNG) and 1.6 megawatts from solar photovoltaic panels supported by battery energy storage systems (BESS).
Speaking at the announcement at the Office of the Prime Minister, Ken Kerr, Principal of AREC, framed the project as a generational investment for Andros Island. “We are proud to deliver a solution that brings clean, reliable power to the Andros communities,” Kerr said. “These projects will meet the growing demand for electricity, reduce harmful emissions, and create lasting opportunities for local employment and development.” He noted that the initiative would replace aging diesel-fired generators with hybrid systems, significantly reducing the island’s environmental footprint. The facilities are expected to eliminate approximately 2,900 metric tons of carbon dioxide emissions annually, cut nitrogen oxide emissions by 90 percent, particulate matter by 95 percent, and sulfur oxide emissions by 99 percent.
Kerr emphasized that the hybrid model of LNG generation, solar energy, and battery storage not only supports sustainability but also strengthens grid reliability. “The inclusion of battery energy storage systems ensures resilience and stability, providing the communities of Andros with dependable electricity even during peak demand periods,” he said. The project also anticipates creating long-term employment opportunities, with 20 plant operators and additional roles during construction and in supporting sectors, including logistics, maintenance, and local sourcing of supplies, food, and accommodation.
Prime Minister Philip Davis praised the partnership as a historic step for Andros’ energy infrastructure and a model for Bahamian enterprise. “For years, families and businesses in Andros have faced power cuts, unstable supply, and the stress of unreliable electricity,” Davis said. “This agreement tackles those challenges with a long-term, sustainable solution. The three new power stations will give Andros a modern, reliable supply capable of meeting current demand and supporting the island’s growth in the years ahead.”
Davis underscored the broader economic benefits. “A dependable energy system underpins every sector—from fishing and farming to tourism and small businesses. Investors gain confidence when infrastructure is reliable. This partnership ensures that Bahamian engineers, financiers, and entrepreneurs are at the center of development, keeping more value and jobs within the country. The PPA reflects a commitment to national energy reform, cleaner generation, and lower operating costs for households and businesses.”
The PPA framework provides for 25 years of electricity supply to BPL, with AREC responsible for constructing, commissioning, and operating the plants before transferring ownership to BPL for a notional $1 at the end of the term. This build-own-operate-transfer arrangement offers long-term stability in energy pricing while maintaining operational flexibility and allowing future integration of advanced renewable technologies.
JoBeth Coleby-Davis, Minister of Energy and Transport, described the agreement as a defining moment for Andros. “This PPA is a covenant with the people of Andros for powering an energy transformation that will support economic growth and development on the island,” she said. “As a nation made up of many islands, we have ensured that our energy reform initiatives are comprehensive and leave no island behind. Following the destruction of BPL’s San Andros power station in 2023 and the Fresh Creek facility in 2025, it was clear that a long-term solution was necessary. These hybrid plants provide that solution while eliminating the need for costly generator rentals.”
Coleby-Davis emphasized the strategic planning behind the plants’ locations. “The Fresh Creek station will be relocated slightly north to ensure residents are not exposed to health or safety risks, while the North and South Andros plants are positioned near existing BPL facilities for efficient integration. All sites will be remediated to meet international and local environmental standards. These facilities will provide stable electricity for decades and allow Andros to transition to more advanced and sustainable energy technologies over time.”
Coleby-Davis also highlighted the government’s focus on long-term social and economic benefits. “By working with a 100 percent Bahamian-owned company, we are ensuring that local skills, labor, and resources are fully utilized. The integration and training of BPL staff, along with local sourcing for supplies, food, and services, demonstrates our commitment to creating sustainable jobs and developing human capital on the island. This project is about more than electricity—it is about building opportunities for Androsians and strengthening the economy from the inside out.”
Leon Lundy, Member of Parliament for Mangrove Cay and South Andros, praised the initiative as a transformative step for the island. “This is a promise to our children that opportunity will not pass them by,” Lundy said. “Three state-of-the-art stations in Nicholls Town, Fresh Creek, and The Bluff will deliver stable, clean energy, doubling Andros’ capacity for business activity, development, and opportunity. We are not simply building power stations; we are strengthening the backbone of the Andros economy and positioning the island to attract investment, create jobs, and lead in sustainable energy solutions.”
The hybrid power plants are expected to have a combined capacity of 7.2 MW, with 18 percent of output coming from renewable energy sources. The construction phase will create jobs across multiple sectors, including engineering, logistics, and maintenance, while the operational phase will support 20 long-term positions. AREC and BPL anticipate the projects will contribute approximately $400 million to the Bahamian GDP by improving energy reliability, reducing outages, and enabling expanded business activity across Andros and beyond.
