ENERGY SECTOR FRAMEWORK The Ministry of the Environment (MOTE) is the responsible agency for the energy sector in the Bahamas. It is supported by the Bahamas Environment, Science & Technology Commission (BEST) which assess the environmental impact of energy and electricity sector projects. At a future date yet to be determined by the government, the newly created Utilities Regulation and Competition Authority (URCA), which currently regulates electronic communications, will be task to “assume responsibility” for the electricity sector. (Government of Bahamas, 2010; Organization of American States, 2010)
ELECTRICITY SECTOR REGULATORY FRAMEWORK The primary regulatory acts that govern the electricity sector are the Electricity Act, the Out Island Electricity Act and the Out Island Utilities Act. The BEC was established through the Electricity Act and tasked with the secure supply of electricity at a reasonable price and mandated to “purchase, generate, transmit, transform, distribute and sell energy to in bulk or to individual consumers.” (Government of Bahamas, 2010) The Out Island Act allows for the creation and operations of private utilities to supply electricity to the Family Islands if “it is in the nation’s best interest.” It has been difficult for the private sector to meet this provision and as a result BEC continues to be the exclusive electricity provider except on Grand Bahama and a number of very small franchise holders which are allowed operation in the area controlled by the Grand Bahama Port Authority under the Hawksbill Creek Act. (Government of Bahamas, 2010; Organization of American States, 2010) The monopoly supplier (BEC) is not required to purchase electricity generated by independent power producers (IPP) offering limited incentive for outside investments into the electricity sector as a whole or RE sources in particular. No regulation exists for the interconnection of power generation making it nearly impossible for IPP to feed their capacity into the existing grid. Furthermore, there does not exist a national energy efficiency standard or a national energy conservation effort and by some estimates as much as 27 percent of electricity demand could be saved through efficiency measures. The Government of the Bahamas functions at the same time as the “policy-maker, regulator, and owner” leading to a less than ideal set-up for the electricity sector. The current regulatory framework has resulted in a “regional monopoly on electricity production and distribution” which lacks competition and efficiency and fails to produce electricity at “reasonable” prices. (Government of Bahamas, 2010; Organization of American States, 2010; Renewable Energy & Energy Efficiency Partnership, 2012a).
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ENERGY MATRIX COUNTRY BRIEFINGS