NASSAU, BAHAMAS: The Bahamas is emerging as one of the Caribbean's most prepared countries for the maritime energy transition, but the introduction of shore-side power and green fuel bunkering at the Nassau Container Port remains a medium-term opportunity requiring additional infrastructure, planning and investment, according to a new Inter-American Development Bank-commissioned study.
The report, "One Caribbean Ports – Readiness for Shore-Side Power and Green Fuel Bunkering," assessed seven Caribbean countries — The Bahamas, Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago — examining their readiness to adopt two critical maritime decarbonization pathways: shore-side power (SSP) and green fuel bunkering (GFB).
The study noted that electricity costs in The Bahamas, at US$0.
The study was conducted in line with the International Maritime Organization's 2023 GHG Strategy and emerging lifecycle-based fuel intensity requirements, assessing infrastructure, energy systems, regulatory frameworks, institutional capacity and market conditions.
The report found that no port among the seven countries currently provides operational, port-led shore-side power or comprehensive green fuel bunkering services.
However, The Bahamas was identified, along with Barbados, as one of the most advanced countries in the region from a legislative, regulatory and policy standpoint, benefiting from strong national climate and energy legislation and a mature conventional bunkering sector.
The assessment focused on the Nassau Container Port (NCP) at Arawak Cay, which serves as the primary cargo gateway for New Providence and the wider national economy.
The report said NCP can currently accommodate Panamax-size vessels and berth up to three vessels simultaneously, although this level of concurrency reportedly occurs only about once per week.
Average vessel time alongside is approximately eight hours, while planned dredging is expected to enable larger vessels to call at the port over time.
From a shore-side power perspective, the study found that NCP's operational profile — characterized by short port stays and limited vessel concurrency — means SSP demand, if introduced, would likely be intermittent and concentrated during peak berthing periods rather than continuous.
The terminal has an annual handling capacity of 200,000 Twenty-foot Equivalent Units (TEUs).
For the year ended June 30, 2024, NCP processed 140,740 inbound and outbound TEUs, representing a 2% increase in container volumes compared with financial year 2023, when the port processed 138,256 TEUs.
The study found that NCP currently has no infrastructure to provide shore-side electricity to vessels alongside its berths and there are no immediate plans to install such infrastructure.
"Port management has indicated that shore-side electricity is on the agenda for later consideration rather than near-term implementation," the report stated.
Electrical power at NCP is supplied from the national grid, with backup power and emergency fuel storage available to maintain operations during natural disasters and grid interruptions due to the country's hurricane exposure.
The report noted that The Bahamas' electricity supply remains dominated by fossil-fuel generation distributed across multiple islands.
Bahamas Power and Light operates approximately 30 diesel-based generation plants across about 25 islands, with major generation capacity concentrated on New Providence and additional capacity on Grand Bahama.
All fuels for the islands are imported.
The study noted that electricity costs in The Bahamas, at US$0.28 per kilowatt hour, are above the Caribbean average of US$0.24 per kilowatt hour.
Electricity reliability and cost are perceived by the private sector as major impediments to growth, with frequent power outages contributing to the widespread use of off-grid self-generation among high-income households and large resorts.
As of 2022, The Bahamas had approximately 487 megawatts of installed generation capacity and peak demand of 386 megawatts.
However, the report cautioned that SSP feasibility at NCP would depend on localized distribution capacity, including feeder availability, transformer sizing and the ability to accommodate short-duration peak loads at berths, which has not yet been confirmed.
A major development highlighted in the report is the planned 70 megawatt LNG combined-cycle power plant at Nassau Cruise Port, adjacent to NCP.
Construction is expected to begin later in 2026, with completion targeted for 2027.
The project includes an interconnection switchyard to the national grid and ship-to-shore electrification equipment.
The study said the LNG plant creates a credible pathway for future SSP interconnection at NCP due to the physical proximity of the power asset.
While the cruise sector's shore-power requirements are operationally distinct from cargo operations at NCP, the report said the planned infrastructure could support future expansion.
Renewable energy penetration in The Bahamas remains limited, with approximately 37 megawatts of solar capacity as of 2022, representing about 7.6% of installed capacity.
The country has a stated target of reaching 30% renewable energy by 2030.
The report said SSP would provide immediate local air quality and noise benefits at berth, while lifecycle greenhouse gas reductions would improve over time as renewable energy penetration increases and LNG replaces diesel in the national electricity mix.
The study identified several constraints to SSP development at NCP, including the lack of existing shore-side power infrastructure, unknown distribution-level capacity for ship loads, limited renewable energy penetration, hurricane exposure, high electricity tariffs and grid reliability challenges.
However, key enablers include the planned 70 megawatt LNG combined-cycle power plant at Arawak Cay, national grid upgrade initiatives, the potential for NCP interconnection due to its proximity to the LNG facility and manageable vessel concurrency that could support phased or pilot approaches.
The report recommended that The Bahamas pursue a phased, demand-informed SSP pathway linked to the commissioning of the Arawak Cay LNG plant.
Recommendations include conducting a distribution capacity and connection study for NCP, developing an interconnection concept between NCP and the adjacent LNG plant and grid switchyard, establishing commercial arrangements for SSP services and beginning deployment with a pilot berth or limited-capacity installation.
On green fuel bunkering, the study found that The Bahamas has emerged readiness due to enabling legislation and its mature conventional bunkering sector, although ports have not yet been adapted for green fuels.
The report identified Trinidad and Tobago as having the strongest supply-side foundation for GFB, supported by LNG, methanol and ammonia production capabilities, while Jamaica demonstrated demand-side exposure with LNG-fueled vessels already calling and offshore ship-to-ship bunkering occurring.
Across the region, methanol was identified as the most viable transition fuel because of scalability and lower infrastructure risk, while ammonia represents a long-term zero- or near-zero compliance fuel requiring early regulatory and safety preparation.
The report concluded that Caribbean ports are not yet positioned to deliver shore-side power or green fuel bunkering at scale, but countries are progressing at different stages toward future deployment.
For The Bahamas, it concluded that NCP remains a non-SSP port with no shore connection infrastructure and no near-term implementation plan, but the planned LNG-based power plant at Arawak Cay provides a significant enabling factor.
"SSP at Nassau Container Port is best characterized as a medium-term opportunity that could become technically attractive once the adjacent power asset is operational and once berth-level electrical upgrades, standards alignment and commercial arrangements are defined," the report stated.