The Future of Energy Storage in the Caribbean

Countries in the Caribbean are looking to deploy more affordable renewable energy and storage solutions while improving resilience against extreme weather events. The need is particularly pressing for Caribbean islands prone to hurricanes that can sweep away key infrastructure and disrupt energy security and affordability

Enter Battery Energy Storage Solutions (BESS), which plays a key role in stabilizing the grid and harnessing clean energy from renewable sources. Overall, battery energy storage enhances grid reliability, supports renewable energy adoption, and improves resilience to disruptions, making it a vital component of modern energy systems.

Lithium-ion batteries, with their scalability and low cost, will likely be the most competitive energy storage technology for the foreseeable future for new projects in the Caribbean seeking to expand electricity access through mini-grids in remote areas.

Modernizing the Energy Sector in The Bahamas

It is against this backdrop that the Government of The Bahamas, with the support of the IDB, has developed a service ecosystem to advance renewable energy in the country, as part of the Reconstruction with Resilience program in the Energy Sector of The Bahamas.

The program has introduced the BESS in New Providence, home of the archipelago's largest grid, in support of an electricity grid that serves around 85,000 customers. It is managed by the Bahamas Power and Light Company (BPL), a subsidiary of Bahamas Electricity Corporation, whose sole shareholder is the Government of The Bahamas.

BPL worked with the team implementing the project (Project Execution Unit - PEU) and the IDB to roll out the storage solution. BESS has an energy storage capacity of 25-megawatt hour, and a response time of 220 millisecond to restore power to the grid.

The main benefits of the BESS in The Bahamas include:

• Reducing fossil fuel consumption and enhancing the use of renewable energy, thus, contributing to the net zero emissions energy transition in the Bahamas
• Stabilizing the grid against fluctuations of peaks in demand or surges.
• Reducing power generation costs in the long term; and
• Stimulating digitalization and automation through the generation of data on the performance of the electricity grid.

The introduction of the BESS in The Bahamas, represents an important step towards a cleaner, more reliable, accessible, and affordable energy system in the country. It will also contribute to improving its energy security and achieving its updated Nationally Determined Contribution (NDC) targets to at least 30% renewable energy participation in its energy mix by 2030. Additionally, it will provide valuable experience and lessons learned for other BESS projects in the Caribbean.

Moving forward, the program Reconstruction with Resilience in the Energy Sector in The Bahamas and Bahamas Power Light company, plan to install mini-grids and renewable energy with solar generation. These are [PB1] technically and economically attractive applications in some locations. In doing so, the Family Islands will have more stable grids and pave the way to deploy more renewable energy.

To find out more about this journey towards decarbonization, read the publication "State of Charge: Energy Storage in Latin America and the Caribbean." Additional information about our work in the Caribbean energy sector available in the resources below.

• Bringing together the Caribbean through Energy
• Digital transformation: empowering the Caribbean, reshaping energy landscapes in Guyana and Suriname

[1]IDB | Reconstruction with Resilience in the Energy Sector in The Bahamas (iadb.org)

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