Published On:Thursday, March 04, 2010

By NEIL HARTNELL

Tribune Business Editor

THREE separate sustainable energy projects set to be implemented by the Government, assisted by the Inter-American Development Bank (IDB), will reduce carbon dioxide emissions by more than 350,000 tonnes, in addition to saving the Bahamas Electricity Corporation (BEC) $1.36 million per annum in fuel imports.

The Global Environment Facility (GEF) report on the proposed installation of 150,000 compact fluorescent bulbs (CFLs) in select communities, along with the trials of solar water heaters and solar photovoltaic/net metering, said the pilot projects would reduce carbon and greenhouse gas emissions, and lead to financial savings on BEC's current fuel purchases.

The Bahamas would be sent down the path towards becoming a "low carbon economy", the report argued, as the direct carbon dioxide emissions from thermoelectric generation would be mitigated.

The pilot projects, the GEF report said, would "result in an estimated direct emissions reduction of 60,418 carbon dioxide tonnes, as well as an indirect emissions reduction of 295,455 carbon dioxide tonnes.

"The abatement cost of the total carbon emission reduction is $3.38 per tonnes of carbon dioxide. This cost is below the cost effectiveness of other GEF financed projects."

The GEF report said that the introduction of renewable energy, such as waste-to-energy, and energy efficiency into the Bahamas' electricity matrix would "lead to significant benefits, including a drop in fossil fuel imports, generating important savings and energy security to the Government of the Bahamas.

"Most importantly, it would also lead to a decrease in carbon emissions. The latter is especially important, given that the annual average emission of 6.7 tonnes of carbon dioxide per person places the Bahamas among the highest per capita emitters of greenhouse gases in the world."

This, the GEF report said, would give the Bahamas the ability to sell carbon emission reductions (CERs) through the Clean Development Mechanism developed under the Kyoto Protocol or other voluntary markets for carbon trading.

The three separate pilot projects are currently out to bid, but the GEF document added that they "will provide attractive financial savings in terms of diesel purchase avoidance for energy generation, estimated at $1.36 million per year.

"If we consider a 10-year lifetime for the equipment, this would be $13.6 million. Moreover, if the volatility on international fuel prices continues and if the adoption of renewable energy technologies is successful, it is expected that these projects will be replicated throughout the Bahamas, thus contributing to bringing financial savings for the country, the utility and end users."

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So, while the $1.36 million per annum in expected fuel savings from the three pilot projects is a relative drop in the ocean compared to BEC's $350 million-plus fuel bill in 2008, the initiatives indicate the potential scope for fuel purchase savings if they are expanded to incorporate the entire Bahamas.

The GEF project document estimated that the 150,000 CFL lightbulb project would generate electricity consumption savings of 11,333 Mega Watt hours per year, based on an estimated 15 per cent electricity loss from BEC's system before it reaches the end user.

"It is estimated that over the next 10 years it would be possible to install one million CFL bulbs in the households," the GEF report added.

And the solar water heaters and solar PV projects were estimated to save 295.5 MW hours per year and 113 MW hours per year respectively, with estimated market penetrations of 10 per cent and 5 per cent of Bahamian households.

"The Bahamas also has a high untapped potential for the implementation of energy efficiency measures," the GEF report said. "Its economy is predominantly based on the provision of services, which demand significant amounts of power for the provision of lighting, cooling and operating electrical equipment and appliances.

"Between 40-60 per cent of the electrical power demand at hotels is used for cooling due to the use of inefficient heating, ventilating and air conditioning technologies, and existing building designs.

"Domestic lighting is still dominated by incandescent lighting, and close to 90 per cent of households have electric water heaters. Cooling and lighting services for government and commercial buildings represents another area with significant energy efficiency potential."