IDB Invest Fosters Sustainable Growth in The Bahamas by Promoting Renewable Energy
- 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).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US$15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About Lucayas Solar Power Ltd.
Lucayas Solar Power Ltd. is a limited liability company incorporated in The Commonwealth of The Bahamas in 2019 as a special purpose vehicle specifically for implementation of the project. It is a joint venture entity 65/35% owned by Bahamian and foreign investors. The technical team, with an accumulated experience of 2000 megawatts in the solar and renewable energy sector, has been recruited through the engagement of the Bahamas-based Engineering, Procurement and Construction (EPC) contractor, Inti Corporation Ltd.