Government could penalise Belco if it fails to generate an agreed amount of Bermuda?s electricity from greener sources in the future.

A new blueprint for the Island, produced for the Government, suggests that legislation should be brought in to require Belco to find alternative ways of producing energy, such as by harnessing wind power, or face financial consequences.

Belco spokeswoman Linda Smith Wilson, who will talk on the subject tonight at the Sustainable Development public forum, said yesterday that the proposal was not a surprise and was ?in line with what we are doing and in line with the way the world is going?.

The suggestion features in the fifth and final chapter of the Island?s draft sustainable development plan, Charting Our Course: Sustaining Bermuda. Under the theme Living Within Bermuda?s Limits, the report says: ?In order to reduce reliance on fossil fuels and increase energy security, Belco must be encouraged to develop a more integrated portfolio of energy sources.

?Recognising Belco?s current position in the electricity market, Government should require by legislation Belco to generate an agreed percentage of Bermuda?s electricity needs from renewable sources by 2015. The legislation should include financial consequences for non-compliance with the agreed target.?

Erica Smith, the Government?s Director of Sustainable Development, said fossil fuels were going to become more expensive and harder to obtain in future.

?For the health of our entire world it?s clearly not a sustainable practice,? she said. ?Belco themselves are preparing their strategy for the future. We are not so far apart on the direction that Bermuda needs to go.?

She said the plan for tougher laws would not have surprised the Island?s only electricity supplier. ?I think we all have to take responsibility and agree that there are standards that need to be met,? said Ms Smith. ?I think that they realise that this is the way of the future.?

Ms Smith Wilson said Belco had recently completed a document looking at electricity generation and distribution for Bermuda for the next 25 years.

The report includes the energy giant?s plan to sink the world?s first underwater power generator off the south coast of the Island. The Current to Current scheme would capture ocean currents to initially provide nearly ten per cent of the Island?s electricity needs.

Ms Smith Wilson said it could cost less than producing energy from fossil fuels. She said Belco was also looking at ?added value? electricity generation, which might see steam produced by electricity being used to produce water. ?We are looking at all kinds of innovations and options.?

The sustainable development plan suggests that Government needs a dedicated energy unit to monitor Belco and other energy-related businesses and to push renewable energy sources and projects.