Home affairs minister warns of ‘costly’ LNG infrastructure
The price tag of switching to a cleaner fuel for the island’s power, estimated by consultants at considerably more than $100 million, must be matched with the goal of affordability in the island’s new electricity policy, the Minister of Home Affairs told legislators.
Alexa Lightbourne said in the House of Assembly that investment in infrastructure for liquefied natural gas would prove “costly”. She was responding to questions from Dwayne Robinson, the Shadow Minister of Home and Community Affairs, on her update on the draft National Electricity Sector Policy.
The Government released the policy document for consultation last month, rolling back previous targets for the island to produce 85 per cent of its energy from renewable sources by 2035 and instead still producing 93 per cent from fossil fuels in 2030.
Mr Robinson asked if LNG would be considered now that the renewable timetables had changed.
Ms Lightbourne said it was costly to commission more studies into viable energy options, which the Government was “trying to mitigate”, while LNG would demand more research and further cost.
Mr Robinson suggested infrastructure already existed for LNG but Ms Lightbourne pointed out that only one component for the fuel was in place.
She explained: “There was a private entity decision. It just so happens to be our incumbent utility that made a decision regarding the investment in technology which was a dual-fuel engine.”
The engines were designed to burn heavy fuel oil or LNG, but were optimised for LNG — causing emissions problems when Belco had to use oil after the regulator rejected LNG as an option.
Ms Lightbourne said using LNG entailed “infrastructure, piping, regasification that is required and not currently deployed”.
She added that at a time when the island’s roads were being upgraded, “we are talking about unpacking roads and creating further pipelines to facilitate LNG, which is a costly enterprise”.
Belco president Wayne Caines said last August that the utility “desperately” wanted LNG, calling the fuel “both cleaner and more cost-effective”.
Castalia, a consultancy firm, reported in 2016 that electricity generation in Bermuda could be switched over to LNG by 2020 for between $258 million and $315 million.
Leidos, an engineering consultancy, said that “LNG infrastructure for the full conversion of generation” would cost in the region of $140 million, in a proposal produced with Belco in 2018.
Algonquin Power & Utilities Corp, Belco’s owner, is a Canadian-regulated utility company that provides natural gas and electricity through its subsidiary, Liberty Utilities.
On Friday in Parliament, Ms Lightbourne repeatedly emphasised the new electricity policy’s remit of affordability, saying it was “at the forefront”.
“Rising electricity costs place real and sustained pressure on households and businesses across this island.”
The reform of electricity in Bermuda began in April 2025, when a ministerial directive was issued to the Regulatory Authority.
The directive established three priorities: enhanced transparency through annual reporting, capacity building through a Resource Development Plan to strengthen local technical expertise in renewable energy and grid modernisation, and a comprehensive review of the electricity transmission and distribution model to explore fairer pricing and identify cost-saving.
Bermuda’s Integrated Resource Plan, the blueprint for the future energy mix, has been in development since 2019, and had established a target of 85 per cent renewable deployment.
Ms Lightbourne said: “As of 2026, it has not been fully operational. Its provisions have not been stewarded into deployment with the required regulatory discipline.”
“Under the existing legislative framework established by the Electricity Act 2016, the IRP is proposed by the electricity utility and reviewed by the RA, a process which has proven cumbersome. Proposed plans too often run contrary to the Government’s policy, the policy Bermudians elected us to deliver.
“In 2026, with families battling electricity costs compounded by global events, those delays are no longer something Bermuda can afford.
“The 2026 policy addresses that failure directly. Integrated resource planning sits at the centre of the framework and the legislative amendments now in development will place responsibility for preparing the IRP with the RA, with input from the industry.
“The future of this sector requires precise regulatory rigour and disciplined implementation. Policy that is adopted and then left to languish serves no one.”
She said the future IRP would be prepared with the “regulatory rigour and implementation discipline that has been absent”.
“Ambition must be matched with practical, economically sound execution.”
The revised draft policy is open for consultation until May 21.
There will be a town hall meeting today to present the key elements of the 2026 policy and the changes since 2015.
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