GRAND BAHAMA, The Bahamas — The Ministry of Energy is actively engaging Bahamians in shaping the National Energy Policy (NEP) 2025–2030, emphasizing transparency, inclusivity, and public participation. The campaign encourages citizens to contribute to policy development, with public consultations closing at the end of the month.
The NEP aims to provide safe, reliable, and affordable sustainable energy, aligning with the UN’s 2030 Agenda for Sustainable Development, particularly in areas like affordable energy, sustainable cities, and global partnerships. Key themes in the policy include access, resilience, inclusion, and sustainability.
The transportation, telecommunications, and electricity sectors are the largest energy consumers and central to national development.
The Bahamas currently relies heavily on imported fossil fuels (mainly diesel and heavy fuel oil), exposing the country to volatile global oil prices and high energy costs. The main electricity providers are Bahamas Power and Light (BPL) and Grand Bahama Power Company (GBPC).
During a recent national address on January 8, 2025, announcing the nationwide 5% VAT rate decrease, Prime Minister and Minister of Finance Philip Davis said that his Government had already started by creating the country’s first nationwide energy sector reforms.
He said: “The high cost of energy runs right throughout the economy. Important parts of our outdated electricity grid date back to before Independence. Some of them are so old that no one makes the parts to fix them anymore. But we can’t build a successful economy – and Bahamians can’t build their own success stories – if we continue to be burdened by an old, outdated, system, dependent on heavy and diesel fuels.”
Prime Minister Davis added: “An unreliable system, and above all, an expensive system – you simply can’t build a 21st century economy with 20th century infrastructure. So, we’re reforming, upgrading, modernizing.”
He noted that solar panels were going to go up, and prices were “going to come down”.
“We are partnering with Bahamian companies across our Family Islands, to meet the unique needs of each,” Prime Minister Davis pointed out. “We are going to have New Providence’s first utility-scale solar field. We’re integrating LNG. We’re updating transmission lines and technology, for efficiency – which means cost-savings – for reliability, and increased resilience during storms.”
He noted that it was a huge undertaking, and it was going to make a “huge difference”.
“But the changes will take time – so while that work is happening, we’re offering relief on high monthly electricity bills with an equity rate adjustment – a tariff reduction that has already added up to significant savings for thousands of Bahamian households and businesses,” Prime Minister Davis stated.
“In the coming months and years, imagine how many more Bahamian businesses will grow and thrive, once they are not held back by high electricity costs.”
The NEP is part of a broader legal and regulatory framework, supported by:
- The Electricity Act 2024 (regulating generation, transmission, and supply),
- The Natural Gas Act 2024 (regulating importation, transport, and retail of natural gas),
- The URCA Act, empowering URCA to regulate and issue licenses.
Importantly, the NEP is a policy document, not legislation, but it guides and complements existing laws.
The energy revolution is underway in The Bahamas, with the Prime Minister emphasizing that the country will no longer be held back by long-standing energy challenges. The government is committed to ensuring no island is left behind in this transformation.
As part of ongoing public engagement, the energy team are updating residents of George Town, Exuma, and Matthew Town, Inagua — with the final stop of the consultation tour being at Inagua All-Age School Hall on Friday, May 16, from 5:00 PM to 7:00 PM.