Bahamas Prime Minister announces nationwide electricity grid modernization plan

Prime Minister Philip Davis has announced a nationwide plan to modernize the Bahamas’ electricity infrastructure, addressing a system he described as being on ‘life support.’ The government reported that Bahamas Power and Light (BPL) inherited approximately $600 million in debt and unfunded pension obligations, alongside aging equipment that required $500 million in critical upgrades to prevent total collapse.

To address these issues, the government has separated generation from transmission and distribution. The Bahamas Grid Company has already implemented a $130 million upgrade in New Providence, including new high-voltage substations, steel poles, and fiber communications. These improvements have reportedly led to a 45 percent reduction in outage frequency and a 35 percent reduction in outage duration compared to historical averages.

The modernization strategy includes phasing out expensive engine rentals, which cost over $40 million annually, and transitioning toward natural gas and renewable energy. Additionally, the Prime Minister introduced new oversight policies to manage BPL’s overtime costs, following reports of excessive spending by specific employees.