Wind turbine technology is under renewed investigation as sole energy provider Belco Holdings Ltd. looks to future energy provision for the island.

With world fuel prices on the rise, the Island in the midst of a larger national consultation on sustainable development and improvements in wind turbine technology, Belco has commissioned an economic analysis of the renewable energy as a part of a larger study on long-term energy generation for the Island. Wind is growing as an alternative renewable energy source in places such as California and Denmark.

Danish consultancy BTM recently reported that total global wind-power capacity grew 20 percent to almost 48,000 megawatts last year ? enough to fuel about 16 million homes.

Europe accounted for 73 percent of all new installations in 2004.

The latest Bermuda study by Long Island-based Company Applied Energy Group follows a 2001 Danish study that established that Bermuda appeared to have acceptable levels of wind for such alternative technology.

Four years ago however the cost of implementing a wind plant ? a $20-$40 million investment proved too expensive. Since wind does not blow at a constant level and its power cannot be stored, it could never be the Island's sole energy provider. It could only supplement the power generated at Belco's existing plants.

"The work was done four years ago when the oil prices were not where they are now and the answer was that this will cost us quite a lot of money, more than what our customers are paying," Belco president and CEO Garry Madeiros said.

Four years on, with oil prices on the rise, Belco calculated the cost of implementing wind generation again and found such an investment more feasible.

"The [study] didn't say you are going to make a lot money, but what it did say is after two to three years you would break even and you would start making a contribution so the answer was much better at that point because of the way the oil prices were compared to 2002," said Mr Madeiros. "We can't be certain that we are going to go ahead with it but what you can be certain about is that we will now spend more money in trying to ascertain the real feasibility of making a $20-$40 million investment."

To date, Belco has spent about $300,000 on studies and that investment will likely double by the time all studies are complete.

"We're not talking about chicken feed here and that is what we always have to remember, whatever we do is going to cost this country one way or another so we have to make sure," Mr. Madeiros said. Belco had once eyed Cooper's Island for expansion since NASA previously had its own power plant there, but with that site now deemed a natural reserve, Belco is now only looking to implement wind technology offshore because nowhere else onshore is feasible.In order for Belco to add wind technology to its existing system, plenty of more things will need to be done. Among them, legislation will have to be changed; environmental studies will need to be conducted to examine the impact on fish and birds, a proven developer would have to be found and a geotechnical survey would be needed to determine how the large turbines could be erected on the bottom of the ocean floor.

The company would also have to get the community to buy into the technology, as it would most certainly change the horizon five miles out. Even when anchored to the ocean floor, the blade of the wind turbines would reach the same height as the top of Gibbs Hill Lighthouse, standing on its hill.

Belco is eyeing two different sites off of North Shore. One site, five miles off of Bailey's Bay on the western side of Murray's Anchorage, would be able to handle a 12-megawatt plant. The other location, five miles off the west end of Commissioner's House, would be able to handle up too 20 megawatts.

There is little doubt some people will resist the idea of building huge wind turbines in the middle of the ocean, but Mr. Madeiros points out that others feel strongly that renewable energy is very important to the future of the world. It will also become critical in the next 18 months for Belco to figure out how to upgrade its existing main power plant with the latest technology plant with emission controls. He expects that Belco will be having discussions about future energy provision with interested stakeholders ranging from Government to businesses by the third quarter of this year. If everything comes out in support of going ahead with wind technology, Mr. Madeiros said it would be up to four years before Bermuda would be able to implement it. However, he has yet to settle his biggest concern whether such tall structures can withstand hurricanes." I have no idea what the insurance companies are going to think when we ask for insurance, but you have to have confidence these things are going to be able to withstand 200 mile per hour winds. You go to Denmark and you will see all the wind farms, the ocean forms, but do they have 200 mile per hour winds. No."

Belco has considered other forms of alternative energy, but solar energy for example requires too much land area for an Island of Bermuda's size and hydroelectric power requires a single large body of moving water.

"Wind is the one that has provided the most data and most examples of success than any others have," Mr. Madeiros said adding however that Belco is talking to a group right now about using current for power.

"We will continue those discussions to see where those will lead because if we can, we do want to have a technology that doesn't rely on fuel.

"Fuel prices are absolutely outrageous and that is not withstanding the environmental impacts of all the containments that come out of fossil fuel. We've managed to work quite well within our own clean air standards so we're not overly concerned about the environmental impact of that. It is the cost that we consumers are experiencing in our electricity bills," Mr. Madeiros said.