Bahamas Eco-Forum

AES Wants BEC to Switch to LNG

by Larry Smith

The company that has been seeking approval for the past seven years to build a $650 million liquefied natural gas {LNG} terminal at Ocean Cay near Bimini to supply South Florida power plants has recently upped the ante.

AES Project Manager Aaron Sampson recently said the company was willing to build a pipeline from Ocean Cay to Nassau to supply LNG to the Bahamas Electricity Corporation.

He added that replacing diesel with LNG would save the country over $200 million a year in fuel costs. It would cost an estimated $10 million to convert BEC's Nassau generators to run on natural gas.

BEC RFP Deadline Extended

by Larry Smith

The Bahamas Electricity Corporation has extended the deadline for renewable energy proposals to September 12 in the interest of ensuring the widest possible participation.

The request for proposals was issued on May 19, with a July deadline. The new deadline will allow companies who have already received the specifications document additional time to perform the necessary research and gather information to prepare and submit proposals.

The Renewable Technology Committee is currently preparing recommendations for amendments to the Electricity Act to allow BEC to negotiate power purchase agreements with private providers.

Florida Announces Solar Energy Initiatives

Contributed by Tracy Toogood

Florida Power & Light announced plans to build three solar power plants during Florida Governor Charlie Crist's second "Serve to Preserve Florida Summit on Global Climate Change," held in Miami June 25-26.

FPL's $688 million renewable energy plan calls for a 10-megawatt solar photovoltaic plant near the Kennedy Space Centre,  a 75-megawatt solar thermal plant in Martin County near Palm Beach and a 25-megawatt photovoltaic plant, one of the largest in the world, in DeSoto County on Florida's west coast.

The Martin County project will be the largest single solar thermal facility outside of California, and the world’s first solar project connected to a natural gas-fired plant. FPL's plans position Florida as the second leading state in the nation for solar energy production after California.

Six Reasons to Love Higher Oil Prices

by Larry Smith

There's good news and bad news on the energy front these days. The bad news? Prices are up. The good news? Prices are up. Analysts are forecasting $200-a-barrel oil, which could put a gallon of gas close to $10 for Bahamians.

Goldman Sachs, the New York investment bank, says a barrel of oil will "spike” at $200 next year, with prices remaining above $100 for the medium term. The underlying assumption is that, unlike the oil shocks of the 1970’s, today's prices are demand driven by the huge emerging economies of China and India, with supplies threatened by geopolitical instability in producing countries.

Skeptics say that Goldman Sachs is part of a speculative frenzy that is driving prices up, but the Paris-based International Energy Agency, which advises 27 rich countries on energy policy, has a more fundamentalist view. Here is what the IEA's chief economist had to say this month:

Cost of Oil Leads to Shift in Vehicle Demand

by Larry Smith

American automakers have concluded that the shift to small cars in response to rising fuel prices is "permanent and structural".

For the first four months of this year sales of the smallest, least expensive cars exploded by 33 per cent in the US, while sales of all other vehicles were down.

And Bahamian car dealers have also noticed a trend towards smaller-engined vehicles in recent months: "There is a greater concern among consumers that the vehicle has a smaller fuel efficient engine," according to Toyota dealer Fred Albury.