BPL still pushing for rate reduction bond before year’s end

BPL still pushing for rate reduction bond before year’s end
Bahamas Power and Light Chairman Dr Donovan Moxey (FILE PHOTO)

NASSAU, BAHAMAS — Bahamas Power & Light (BPL) chairman Dr Donovan Moxey said closing out the rate reduction bond (RRB) before year-end is still “very much” on the power provider’s agenda.

Moxey pointed to ongoing negotiations over a power purchase agreement with Shell North America in a recent interview.

“We are making progress on the power purchase agreement. We are still negotiating with them,” he said.

While referencing the RRB, Moxey said: “We are still working on that as well. That is is still very much on our agenda and we are still actively working to get that bond closed. That’s our goal. Our goal is to get that closed before the end of the year. Obviously, with anything such as this, we are always mindful of market conditions but we are working to get it closed out before the end of this year.”

The Utilities Regulation and Competition  Authority (URCA) has approved Shell’s application for an Independent Power Provider (IPP) license.

The license commenced on October 5 2020 and expires on October 5, 2035.

Shell Bahamas Power Company Inc. confirmed that it has received approval from URCA in a statement.

“This approval brings Shell one step closer to negotiating a Power Purchase Agreement (PPA) with Bahamas Power and Light (BPL) for the establishment of an LNG to Power complex on New Providence,” it read.

“Shell’s application to URCA was submitted for consideration in May, and after a deliberative process, Shell satisfied URCA’s requirements for the IPPL consistent with international best practice, Bahamian law and in the interest of the Bahamian people,” the company said.

“The submission was supported by BPL and allows Shell to become the primary generating entity on New Providence with a 225-megawatt LNG-powered generating facility, should it receive executive approval for the project. As a global energy company, Shell and its affiliates are pleased to participate in the delivery of reliable, affordable, and cleaner electricity to New Providence, and to enable future expansion of renewable energy in The Bahamas.”

It added: “The company brings considerable competencies and experience from similar projects throughout its portfolio which was an important consideration for URCA in granting the license. The Bahamas LNG to Power project demonstrates that LNG can provide cleaner and lower-cost electricity and enable the expansion of renewables in the Caribbean community. Through this project, Shell and The Bahamas are helping to lead the region’s clean energy transition.”