NASSAU, BAHAMAS- The number of renewable energy systems in The Bahamas increased by 13.6 percent in 2024, according to the Utilities Regulation and Competition Authority’s (URCA) 2024 Annual Report.
The report noted a 12.71 percent increase in installed renewable energy capacity, reflecting significant progress in the country’s transition to cleaner energy sources.
Most of the renewable energy systems in The Bahamas are photovoltaic (solar) installations, with residential and commercial properties increasingly adopting solar solutions to meet energy needs. These systems not only offset consumption but also allow property owners to export any excess energy back to the national power grid, contributing to the country’s broader renewable energy efforts. URCA noted that frameworks for both residential and commercial renewable energy adoption have been developed, enabling greater participation in the renewable energy market.
At the end of 2024, approximately 99 percent of The Bahamas’ installed electricity generation capacity, which totals around 735 megawatts (MW), remains powered by fossil fuels such as diesel and heavy fuel oil. Despite the growing number of renewable energy systems, renewable energy still accounts for a negligible share of the country’s overall electricity production. However, this is expected to change as the government accelerates energy sector reforms outlined in June 2024.
“While fossil fuels currently dominate our energy mix, the recent increase in renewable energy installations is a sign of progress,” said URCA in its report. “As the government implements its Energy Sector reforms, we expect the country’s reliance on imported fossil fuels to reduce significantly, paving the way for a greener energy future.”
The Energy Sector reforms announced in June 2024 are seen as a crucial step in modernizing The Bahamas’ energy infrastructure. The redevelopment of the National Energy Policy (NEP) is expected to create a more enabling environment for renewable energy investments, streamline processes for the adoption of residential and commercial renewable systems, and promote utility-scale renewable energy projects. The draft National Energy Policy 2025–2030 also proposes tax incentives for households and businesses to accelerate investment in cleaner technologies and reduce reliance on fossil fuels.
URCA’s report also noted that exceptions to the license requirement for renewable energy generation exist, particularly for private standby generation systems with a capacity under 1 MW and renewable systems used for non-utility purposes. These exemptions aim to make it easier for individuals and businesses to adopt renewable energy solutions without complex regulatory hurdles.
The government has already moved forward with several agreements to develop large-scale renewable energy facilities in key locations, including New Providence and various Family Islands. These projects are expected to significantly increase The Bahamas’ renewable energy capacity, reduce emissions, and improve energy security in the long term.
“Large-scale renewable energy projects are essential to meeting the country’s long-term energy goals and reducing carbon emissions,” URCA stated. “As these projects come online, The Bahamas will be better positioned to achieve its renewable energy targets and enhance its energy security.”
The report also underscored the importance of energy storage solutions, particularly battery systems, to manage the intermittent nature of renewable energy generation. With solar and wind energy systems becoming more prevalent, energy storage will play a critical role in ensuring that excess power can be stored and used during periods of low generation, helping to stabilize the grid and reduce reliance on fossil fuels.
