March 28, 2023
This will be the first solar plant in The Bahamas financed by IDB Invest under a Power Purchase Agreement (PPA) framework
The project is one of the first utility-scale renewable energy projects in the country
IDB Invest closed a senior loan for up to US$11.2 million to Lucayas Solar Power Ltd. to sell energy to Grand Bahama Power Company Limited, the privately-owned, sole power utility on the island of Grand Bahama in The Bahamas.
This will be the first solar plant in The Bahamas financed by IDB Invest and one of the first utility-scale renewable energy projects in the country. Utility-scale projects are large renewable energy projects for commercial use and will have a notable impact on reducing carbon emissions. It is expected to cut 10,654 tons of CO2 emissions per year and close to 266,340 tons over the 25-year life of the PPA.
The project consists of two solar PV generation systems of 6MW DC (direct current) and 5MW DC each and other transmission and interconnection infrastructure to be located in Freeport, Grand Bahama.
This deal represents a unique opportunity to help The Bahamas to meet its climate goal of reducing greenhouse gas emissions while fueling economic growth by stabilizing the price of electricity.
IDB Invest is also working through an advisory assistance facility to implement a gender and diversity program with a recruitment and retention strategy for women in semi-skilled jobs on the construction site.
IDB Invest is committed to developing a market for clean energy sources in the Caribbean. Through its participation, it is contributing to raise environmental and social performance, as well as mitigating corporate governance risks.
This deal is expected to contribute to four United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth Industry (SDG 8), Industry, Innovation and Infrastructure (SDG 9) and Climate Action (SDG 13).