The government is progressing with plans to drastically reform the country’s energy sector, hoping to encourage industry investment, reduce costs and increase capacity.

Assisted by an advisory team consisting of accounting firm KPMG, technical experts DNV KEMA and legal council Hogan Lovells, the government is currently considering proposals from energy companies and has narrowed down the selection to six final bidders.

In place of the current Bahamas Electricity Corporation, the government intends to create two entities–one responsible for generation of power and the other its transmission and distribution. The government will retain 100 per cent ownership of the latter, while the former will be a joint venture with the successful bidder.

KPMG partner Simon Townend said the government hoped to have the new entities up and running by mid 2014, but warned “we have a lot to do before then.”

“There will be fundamental changes to the structure of the sector, which will take a lot of work to make happen with the right partners,” he said, speaking at a Bahamas Institute of Chartered Accountants event, held at the Sheraton Resort Nassau last week.

Townend said this overhaul of the sector would give The Bahamas the opportunity to explore renewable energy technology such as solar, tidal and waste.

He also noted that reform would be necessary to enable the national grid to cope with increased demand from imminent projects coming onstream such as the $3.5-billion Cable Beach mega-resort Baha Mar and a new phase of development at the Albany Resort.

cmorris@dupuch.com