Belco has postponed plans for the first phase of its power plant expansion while it explores renewable alternatives.

A decision as to whether the energy company will push ahead with total redevelopment of the Pembroke site will be made at the end of 2011.

Meanwhile, Belco is to go ahead with phase two the replacement of four gas turbine units at the West power station.

The work has been approved by a Special Development Order (SDO) and involves the decommissioning of "ageing, less reliable and lower efficiency generating plant" to ensure the company has enough capacity to meet peak load and emergency backup.

Phase two of the eight-stage redevelopment of the central plant involves replacing GT3A-D gas turbine gensets with GT6-9 gensets.

Environment Minister Glenn Blakeney signed off the SDO on June 1.

It states: "For reasons of national importance; and to maintain a reliable and safe supply of electrical power; and to satisfy in an efficient, timely and environmentally responsible way Bermuda's demand for electrical power, planning permission is hereby granted by this Order for the development of the site."

However, a building permit and construction permit is a prerequisite ahead of the development.

MP for Belco's constituency Pembroke Central Wayne Perinchief expressed "relief" at Belco's decision, having initially backed area residents in their campaign against expansion.

"This gives area residents breathing space," he said. "It's a relief that there won't be a sudden and rapid build-out. "

He added that he intends to discuss alternatives with Belco in the near future.

In Belco's 2008 annual report, chairman J. Michael Collier explains: "Belco's Planning application for the 20-year expansion and rebuilding of the Pembroke central plant site ... remains under consideration at the Planning Department.

"The application is for an extensive eight-phased redevelopment project that would require a $500 million investment. The first phase was to have been a major reconfiguration of the site to accommodate two new diesel engines by 2010.

"Given the existing uncertainties and Government's and the community's interest in pursuing alternative energy options, we postponed phase one of the development.

"Instead, in September 2008, we applied to Government for approval of phase two of the plan, the installation of 13.5 megawatts (MW) of gas turbine plant for emergency backup and peak load operations.

"At a cost of $18.7 million, the new units will replace ten MW of existing, less efficient gas turbine plant that has reached the end of its service life. The new units are due to be in service by the summer of 2010, and will be installed at the same location as the replaced units.

"Postponing phase one and moving directly to phase two buys approximately 18 months of time for Bermuda to identify, agree and plan alternatives to further development at the central plant site.

"The window for moving ahead with other alternatives is critically time sensitive. Completion of the gas turbine plant in 2010 will be sufficient to meet peak demand through 2013.

By 2014, Bermuda will require additional installed and commissioned generation capacity to ensure continuous reliable supply."

Linda Smith, Belco spokesperson, said: "The gas turbines would have had to be replaced anyhow but we brought this forward. It allows us to put off for a couple of years the decision as to what phases of the development will take place.

"There will need to be a decision made by the end of 2010 or the start of 2011, as to what the next stage of the development will be, because we need that emergency capacity by 2014. This is because of growth and the retirement of older engines."

Asked whether it was likely the redevelopment of the central plant would be scaled back, Ms Smith said: "The scale of the overall development could be different if there are other alternatives.

"The expansion is on hold and will depend on what alternatives are available. But we still have to redevelop. I don't know whether this will be to expand or redevelop but the alternatives will tell us that, so this application buys us more time."

The Belco annual report states: "An eight-phased, 20-year redevelopment plan for the central plant site, which would have seen the building of a new diesel power station in time for 2010, has been postponed.

"Instead, Belco has moved forward with the second phase of the plan, which is 13.5 MW of gas turbine plant dedicated to emergency and peak load operations.

"Energy demand projections indicate that a decision as to whether Belco will need to move forward with the total redevelopment plan must be made by 2011 in order to sustain reliability of supply beyond 2014.

"The central plant site is congested. Beyond the addition of the new gas turbine plant in 2010, accommodating additional generation units will require complete refiguration of the site."