At the Cost of Living Summit, a debate began over the cost of Bermuda’s next-generation energy mix, but cost is only one issue. Our priority must be on securing a future path for energy transition that preserves the reliability Bermuda depends on, meets clean energy targets and keeps electricity affordable.

Focusing on costs in isolation distracts us from the fundamental questions that will determine our energy future:

• What areas of our island and surrounding waters should be allocated to renewable energy projects?

• What is the renewable energy potential in Bermuda?

• What is the energy policy and renewable energy target?

The Integrated Resource Plan proposal provides a road map for Bermuda’s energy future in accordance with the Energy Act 2016. The proposal identifies the best mix of technologies, costs and timelines for deployment of renewable energy in Bermuda.

The IRP proposal is not Belco’s plan for the future; it is an iterative plan developed in collaboration with industry stakeholders to define Bermuda’s energy future. The IRP proposal is ownership agnostic. The Energy Act 2016 allows for multiple independent power producers, or bulk generators, to generate the energy Bermuda relies on. At present, we already have renewable energy generated at the waste-to-energy plant at Tynes Bay, the utility-scale solar farm at The Finger, and rooftop solar on homes and businesses across the island.

With any further potential increase of bulk generators, there would be an impact on system cost. The goal is to offset fuel cost as the renewable energy deployment increases to stabilise the cost of the entire energy system, which includes generation and the grid. Bermuda has not determined where its renewable energy infrastructure can go. So why are we debating potential infrastructure costs and skipping over the fundamental questions?

First, we must identify the space Bermuda has to offer for renewable energy deployment and still maintain the island’s delicate ecosystem and culture. Once the areas are defined, better yet legislated, then we can perform resource characterisation to understand the true energy potential of our wind and solar resources.

Second, we need clear pathways that remove red tape for project developers to demonstrate that a technology is suitable in our unique environmental conditions. Certification from an independent third party should be required as a prerequisite.

Once we have answered these questions, we can meaningfully discuss the impact on total system costs that incorporates the finances of each renewable energy technology. An energy policy is required to drive the energy transition at a rate of change that minimises the full economic cost of energy.

We cannot disentangle, cost, reliability and sustainability and solve them separately, they are highly interconnected and hugely complex. We can, however, identify the space available for renewable energy and seek technologies that lower costs.

Let’s keep our focus where it belongs: on designing an energy future that works for Bermuda — today and tomorrow.

• Jeffrey Steynor, PhD is the director of energy transition and business development at Belco