Energy is going off track
Are we moving in the right direction with our energy planning?
If this question was asked five years ago, we would probably say quite easily, "No". There was a complete disconnect between Belco's apparent business strategy based on increasing or not increasing consumption of fossil fuels, and any articulated energy strategy or regulation being proposed by Government.
Yet, in that same year, around the time Greenrock was emerging as a formalised group, we learned about the discussions that were occurring between local experts and public officials around the notion of creating a sustainable development strategy for Bermuda's future growth. And within these discussions, there was an overriding agreement that Bermuda's dependency on energy produced from fossil-fuels was unsustainable economically, environmentally, and socially.
Several years later, with the public consultation in 2008, and the release of the Green Paper in February 2009, we would say we are moving in the right direction. But the Energy Act 2009 enacted in July of this year, and now with the recent appointments of the Energy Commission being announced, Greenrock is concerned that sensible and far-sighted theory is not being put into practice.
For example, when the Energy Act 2009 Bill was tabled in the House of Assembly,
Greenrock raised the following issues in public:
1. Will this Energy Commission established by the Energy Ministry be independent of Government or Ministerial influence? How will decisions of the Commission be appealed (ideally through the courts, not to the Minister…avoiding the SDO process)?
2. What sort of term will the members of this Commission serve? Will they be compensated for their time and will this Commission be funded independently of the Ministry? How will they be chosen? Will there be some conflict of interest provisions and disclosure requirements for members to adhere to before being selected?
3. How transparent will the Commission's process be for setting pricing? Will the Commission be subject to Key Performance Indicators (KPI's) to ensure responsiveness and effectiveness?
4. How will the existing power grid system control and oversight be modified to actively manage energy input from multiple sites (including large-scale and domestic renewables), multiple net-metering communities, as well as possible future demands such as electric transportation recharging stations.
In our view, the independence of the regulatory authority responsible for providing guidance to Bermuda's future energy policy is paramount; a view we have expressed during the public consultation period in 2008 at many of the Town Hall meetings.
Bermuda can't afford to have our Energy Plan become hostage to the extensive use of Special Development Orders; which has unfortunately been the fate of our Development Plan, with Ministerial fiat by-passing the Development Applications Board.
In addition, Greenrock had hoped, and had expressed both publicly and in discussions with Government, Belco and other concerned parties, that the Energy Commission should be made up of members with diverse backgrounds relevant to a National Energy Plan.
The Energy Commission must have people who have experience in Bermuda with energy generation (conventional and renewable), building development, property management, environmental assessments, and grid systems. The team recently announced almost universally comes from a background of telecommunications and information technology with Mr. Michael Mello being a carry-over from the Price Commission.
It certainly makes life easier for Government to model the implementation of the National Energy Plan on the work that had been done in deregulating the Bermuda telecom industry. However, there are very different pressures on the energy sector, and these must be acknowledged.
By not broadening the experience on the Energy Commission, are you not limiting the guidance the Minister will receive and potentially biasing policy decisions towards the telecom model versus something uniquely relevant to both the global energy situation and our local energy pressures.
We are still at the stage of establishing the framework on which the National Energy Plan will operate. Greenrock will continue to debate the decisions that are being made on the public's behalf, and to encourage discussion. We can't let decisions be made that are expedient and convenient based on a particular policy model just because it is familiar. We must be creative and show true vision and leadership to ensure that this National Energy Plan is sustainable, suitable, and smart.
Are we heading in the right direction? Maybe not, but there is still time to get back on track.
Andrew Vaucrosson is president of Greenrock, a registered Bermuda charity focused on sustainable development. For more information on Greenrock, go to www.greenrock.org or e-mail info@greenrock.org