The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

FOCOL Holdings’ top executive last night said its overhaul of New Providence’s baseload electricity generation could save consumers up to $120m annually in reduced fuel costs alone.

Dexter Adderley, the BISX-listed company’s president and chief executive, said the transition from heavy fuel oil (HFO) and automotive diesel oil (ADO) to cheaper liquefied natural gas (LNG) will generate lower energy costs for households and businesses while also delivering cleaner, more reliable supply.

Speaking at a University of the Bahamas (UoB) legal week seminar, Mr Adderley said that while he cannot provide exact figures for how the LNG generation project will affect individual electricity bills - since it is only one part of the overall energy system, and does not include transmission, distribution and grid management - the resulting savings for The Bahamas and consumers will be “significant”.

“It should be significant. We have released the past statements that our project, once fully built-out, will save the country in fuel costs north of $100m, north of maybe even $120m per year in fuel costs alone,” said Mr Adderley.

“How that translates and trickles down to your electricity bill is beyond what I can speak to, other than to say it will be significant. The savings component is very important. But there are also other components, such as the reliability, the environmental benefits and the efficiency of the entire network.”

Mr Adderley said the cost savings from switching to LNG are substantial and, while heavy fuel oil may seem cheaper, it is not attractive to investors because it damages the environment. He added that the transition will bring The Bahamas in line with global standards. 

“The world is changing. We have to change. And so whereas the savings is a big issue, and we are committed to delivering those savings, know that this energy reform project and the part that we are playing is bigger than just the savings. It's about coming in aligned with global standards and global trends, and where the rest of the world is,” said Mr Adderley.

He added that the introduction of LNG will be the “single most impactful shift” in the country’s energy sector. 

“One of the most significant developments underway is the introduction of LNG to power on New Providence, as we are now advancing the single most impactful shift in the modern Bahamas energy sector with this project,” said Mr Adderley.

“This year, The Bahamas will experience the first introduction of natural gas at Clifton Pier.  That moment will mark the beginning of LNG being available in country, which we recognise as a milestone that can lower emissions, stabilise pricing and set the stage for real, measurable reduction in electricity costs for both households and businesses.”