This was sent to the Minister of Home Affairs and the chairperson of The Regulatory Authority and copied to The Royal Gazette

It is with great concern to BEST that Belco is now overtly advertising that “they are pursuing liquefied natural gas for Bermuda”. What has been (glaringly) omitted from anything in written form that might be available to the public are the plans for the infrastructure to support a move to LNG.

We wonder if you have seen and read the International Court of Justice's advisory opinion on Climate Change. Here are links to that document and to some Q&A based on that opinion.:

The advisory opinion:

https://commonslibrary.parliament.uk/research-briefings/cbp-10354/

Q&A on the advisory opinion:

https://cri.org/cri-qa-on-the-icj-advisory-opinion-on-climate-change-and-int-law/

Though not law, their opinion provides a strong basis for future legislation. LNG is a fossil fuel, and their position is that jurisdictions that do not already have LNG should not pursue it. That, “... states that continue to approve fossil fuel expansion in the face of climate science are not just pursuing bad policy, they are potentially violating international law”. Are or will be.

LNG is a fossil fuel because it is derived from natural gas; “a non-renewable energy source, formed from the remains of ancient organisms”. It is often considered and touted as a cleaner-burning fuel, but it is still a fossil fuel, and its extraction and use releases greenhouse gases, like methane and carbon dioxide.

Bermuda: a dinosaur compared with the Cayman Islands

Meanwhile, in Cayman, they are making Bermuda look like a relic, a dinosaur, in our energy ambitions:

https://parliament.ky/wp-content/uploads/2024/12/Cayman-Islands-National-Energy-Policy-2024-2045.pdf

The Cayman Islands Parliament has shared its updated National Energy Policy (NEP) 2024–2045, approved in April 2024, and which aims for 100 per cent renewable energy for electricity, 100 per cent electric vehicle adoption for new sales, and 100 per cent reduction in electricity-sector emissions by 2045. The strategy includes intermediate targets of 70 per cent renewable energy by 2037 and focuses on solar, efficiency, and grid modernisation.

Renewable Energy Targets: 30 per cent by 2030, 70 per cent by 2037, and 100 per cent by 2045.

Transportation: 30 per cent of all new vehicle imports to be electric by 2030, reaching 100 per cent by 2045.

Emissions: Target to reduce electricity sector emissions by 30 per cent by 2030 (vs. 2019 levels) and 100 per cent by 2045.

Implementation: An Energy Policy Implementation Committee has been established to oversee these goals.

Consumer Action: The policy empowers consumers to produce their own energy via solar and battery storage.

Importance of increased solar and battery storage for a more stable energy future for Bermuda

Further, we strongly encourage a look at this powerful article, which speaks clearly to what those in the solar field in Bermuda have been saying: moving to a 90 per cent solar and battery-powered electricity future is less expensive than fossil fuels and any currently known electricity source.

https://nworbmot.org/blog/solar-battery-world.html?trk=public_post_comment-text

This makes it crystal clear where investment should be going and, for us in Bermuda, what is exciting is that with a relatively small offshore wind farm and solar, we can get to a 90 per cent-plus renewable energy-powered island, over time, including modes of transport.

Oahu, Hawaii’s experience, and the truth about LNG

Finally, a paper from GridLAB highlighting Oahu, Hawaii’s, fight against the truth about the promise of LNG and the waste of resources that could be going towards the renewable energy future that is needed, and is inevitable:

https://gridlab.org/portfolio-item/hawaii-lng/

This paper highlights several significant factors that we should seriously consider:

• Bermuda’s dependence on fossil fuels drains our economy of millions of dollars, money that could remain on the island with investment directed towards renewable energy.

• In our case, where a Category five hurricane is inevitable, and after which it's likely that not one telephone pole will be left standing, we need to learn from other island nations to our south who discovered that after a major hurricane, a diversified RE energy grid is more reliable.

• We argue that the capital expenditure required for LNG infrastructure establishes a “lock-in” effect, generating perverse incentives to delay renewable deployment. This paper proposes that a direct reallocation of capital towards renewable energy and storage offers a more financially robust and risk-averse pathway to the state’s electricity affordability and energy security goals.

• The paper also points out that LNG forward pricing is not a given, particularly if prior volume commitments are not met. With new electric cars offering massive storage capacity (something Belco has glaringly omitted from their current IRP), future demand for Belco power may be far less than anticipated.

• The conclusion of that paper is worth repeating and heeding for Bermuda’s energy future:

“If Hawaii maintains a dependency on imported fuels, it accepts a permanent requirement for annual capital outflow to global markets.

“In contrast, prioritising local renewable generation shifts the economic burden to upfront capital investment. Once these local assets are amortised, the marginal cost of production is near-zero, effectively ending the state’s century-long exposure to imported fuel costs and price volatility.

“Policymakers should consider a “Direct Renewable Investment” scenario. Redirecting the LNG infrastructure capital towards utility-scale solar, BESS, and grid transmission upgrades avoids the volatility of global fuel markets and the risk of stranded assets, providing a more secure pathway towards the state’s goals of cheaper electricity and eliminating its dependence on imported fuels.”

Thank you and BEST regards,

KIM SMITH

Paget

Executive Director

Bermuda Environment Task Force