Bahamas Eco-Forum

Controversy Over LNG Project Heats Up Again

by Larry Smith

There has been another exchange of views in the Nassau press on the AES proposal to build an LNG regasification terminal on uninhabited Ocean Cay near Bimini (see previous post for background).

An American teacher named Alan Jackson wrote an op-ed piece for the Tribune questioning the benefits of the project and citing "dangerous negatives that cannot be ignored."

Jackson's arguments focused on safety and security issues, with particular reference to the 37-year-old Everett facility in Boston harbour. He said the Ocean Cay terminal would be a target for terrorists because of its scale and value to the South Florida economy.

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.

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.

Minor Energy Concessions in Government Budget

by Larry Smith

Prime Minister Hubert Ingraham tabled a $1.5 billion budget in Parliament last week, acknowledging a slowdown in economic growth (2.8% in 2007 from a projected 3.1%) together with higher inflation (2.5% in 2007 from 1.8% in 2006).

The biggest policy announcement was new legislation to promote the redevelopment of Nassau and investment in several poorer out islands.

Capital spending will focus on improving the New Providence road network, dredging Nassau harbour, redeveloping the Lynden Pindling and Marsh Harbour airports, and laying out new public housing estates on New Providence and Abaco.

The budget included a two-year suspension of the 17 per cent tax levied by the government on the Bahamas Electricity Corporation's fuel imports. Officials had been reviewing the need to raise electricity rates by 9 per cent a year (the rate plus surcharge is presently 35 cents per kilowatt/hour), but the tax holiday will obviate this.

BEC paid almost $20 million in import taxes last year. The taxes that would have been paid over the next two years will be offset against what the government owes BEC, giving a net capital contribution to the corporation.

Although a special public/private sector committee is working on a national energy policy, only a handful of minor energy concessions were featured in the budget. They included the elimination of import duties on compact fluorescent lightbulbs, solar lamps, batteries, converters and wind turbines.

Import duties on energy-efficient home appliances, windows, low-flow shower heads and low-flow toilets were reduced to 15%.

The duty on hybrid (gasoline-electric) vehicles was cut from between 45% and 65% to 25% (all electric vehicles were not mentioned).

Hybrids are not currently available in the Bahamas for technical reasons, although both Toyota and Honda are talking with their local representatives. But even with the reduced duty, the local price of a Honda or Toyota hybrid will be around $38,000.

BEC Calls for Renewable Energy Bids

by Larry Smith

BEC's long-awaited request for proposals to supply renewable energy in the Bahamas was issued today.

Proposals are requested to supply power on any island serviced by BEC using one of the following candidate technologies:

1. Solar Power (including Solar Thermal and Photovoltaics).
2. Wind Power.
3. Waste to Energy/Biomass.
4. Hydrokinetics (including Ocean Wave and Ocean Tidal Systems).

Bidders must submit details on experience and past performance with similar projects, capabilities and personnel, and financial resources. BEC says it wants the option to take an ownership position in any  projects that are selected, and will evaluate five- to 25-year BOO as well as BOOT proposals.

Bidders must pay a fee of "$0.50/kW of name plate capacity" after receiving notice that they have been shortlisted. This is to ensure that the proposal has been carefully considered and represents a binding offer.

BEC says it must be granted "any and all current and/or future renewable energy certificates and emissions credits associated with the energy from the successful project. In addition, BEC will be granted all accredited capacity from the proposed project. If the pricing is contingent on any carbon incentives, the Proposer should indicate the price with and without the incentive."

Also required is a feasibility study, environmental impact assessment, a site plan and a community outreach plan.

Bid documents are available at BEC's head office for a fee of $100 for foreign applicants and $50 for local applicants.

BEC's Renewable Energy Committee can be contacted at rtc@bahamaselectricity.com.

See the easlier post on this website for background.

AES Invests Heavily in Renewables

contributed by Bill Bardelmeier

Global power producer, AES Corp, has been investing heavily in alternative energy projects, including a landfill gas project in El Salvador.

The Virginia-based company has been seeking Bahamas government approval to build a regasification plant for liquified natural gas on Ocean Cay off Bimini for years. The plant would supply gas imported from Trinidad via pipeline to power plants in South Florida.

The US imported 10.71 million tons of LNG in 2007. Prices have increased to almost $12 per million energy units compared to $ 17 for heavy oil.

The landfill gas plant in El Salvador will produce 25 megawatts of energy, using methane that would otherwise contribute to global warming. Methane is a more potent greenhouse gas than carbon dioxide.

AES has also invested a billion dollars in solar projects and has been aggressively expanding its wind generation business with projects in Europe and the United States. The company owns hundreds of traditional power plants in more than two dozen countries.

The Gift of Free Solar Power

by Christian Henry
chenry@capesystemslimited.com

What’s better than free? 

The Bahamas has been blessed with gifts of sun, sand and sea.  Because these gifts are free, we take them for granted. But how can we honour these gifts? 

We are given stewardship of the Earth, and the greatest gift in the Bahamas is our people. So when you see your neighbours saving energy by harnessing the free sun to heat their water, what do you do?  If you are following the pack these days, you are turning free sun into cash savings with solar hot water.

A teacher of mine always told us to KISS: “Keep it simple, stupid.”  But when it comes to hot water right now, we have it complicated.

Virgin Islands RFP Gets 14 Bids

contributed by Doug Cotton

More than a dozen companies have responded to the US Virgin Islands' recent call for proposals to supply non-oil produced energy to the V.I. Water and Power Authority.

The proposals include several ocean thermal energy conversion, wind power, geothermal energy, coal and an inter-island connection cable between St. Croix and St. Thomas. The bidders are from throughout the Caribbean and the United States.

WAPA's evaluation team has begun the process of deciding which proposal will be the best fit for the territory. Evaluators will be guided by consultants Boston Pacific, R.W. Beck and Skadden Arps, as well as ex-officio team members including WAPA Executive Director Hugo Hodge Jr. and the authority's legal
counsel.

Ensuring that the small power provider will produce electricity at a lower cost than WAPA's existing generators will be a major factor in the selection, but environmental sustainability and the amount of time needed to come into operation also will be considered.

The selection committee will announce the winner on June 30. WAPA and the winner then will begin negotiating terms for the contract.