The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Renewable energy penetration in The Bahamas is moving "slower than desired" chiefly due to issues with financing, a local renewable energy provider said yesterday.

Guilden Gilbert, vice-president of Alternative Power Sources (APS) Bahamas, told Tribune Business that while there is significant interest locally in moving towards renewables, "it is still to some degree cost prohibitive".

The potential is clearly there, however, shown in April when Bahamas Power & Light (BPL) announced the start of renewable energy grid tie-ins for residential customers but with the imposition of per island limits on the total amount that can be supplied.

Mr Gilbert said: "We have a relatively steady flow of new clients. Obviously a lot of people are definitely interested in moving in that direction but it is still to some degree cost prohibitive. It is something we are looking to address soon on a much larger scale. I can't say we are seeing a concerted push or demand to move to renewables to take advantage of the residential small scale generation.

"Even as a company we don't preach energy cost saving as we preach energy independence. We don't sit with a client and say that by doing this you are going to save X,Y,Z. We make that point that whether BEC is there or not they will have power 24 hours a day. For us it's bigger than saving money, it's about energy independence and energy security."

Mr Guilden noted some of his company's clients had opted to start with smaller renewable systems, with the opportunity to expand them over time.

"There is the cost factor," he said.

"We do have an arrangement with Commonwealth Bank. Some of our clients have used them but it still requires some equity or security. Banks have not moved as yet to accepting the system as collateral for that loan. It's still something fairly new to financial institutions."

Mr Gilbert added: "I think the market itself is making some inroads. It's probably slower than desirable. We are still doing installations and we know that our competitors are installing systems. The generation of power through renewables is still progressing. For broader penetration it will come down to the appropriate financing, making funding available but at an attractive rate. When you look across the Caribbean, and use Jamaica as a reference point, we would be significantly behind in terms of penetration. I would say we are holding our won against some of the others."