The race is on to find new ways of generating electricity for Bermuda as the Belco’s ageing Pembroke power plant reaches its capacity even as the Island’s electricity consumption is predicted to increase by 1.5 percent annually over the next 20 years.

Solutions to that challenge, either underway or under consideration, are outlined in Belco’s annual report and include harnessing energy from ocean currents, smaller satellite generating plants that produce can produce hot and cold water as a commercial by-product, and micro-renewable technologies used by individual households such as solar panels and micro wind turbines.

As a consequence of the 2005 Belco fire that caused an Island-wide power outage, there is also now a recognised need to have power generating sources in more than one single location, the company states.

Part of the solution to Bermuda’s power question will come from an underwater power generator harnessing wave action that is due to be in place by mid-2009.

Testing of the technology was carried out last summer.

Current to Current Bermuda Limited, a subsidiary of Current to Current Corporation of Massachusetts, intends to place submersible power generators measuring 150 feet long, 200 feet wide and 60 feet high in the ocean between Bermuda and the US.

At a depth of between 197 feet and 656 feet, the generator will convert the energy of ocean currents into electricity. Belco has an agreement to buy 20 megawatts (MW) of power from Current to Current from mid-2009.

“Belco projects an annual 1.5 percent increase in demand for electricity over the next 20 years. Given this estimate, and the requirement to replace generating plant that is nearing retirement, Bermuda will need to accommodate the installation of 40MW of new electricity generating capacity by 2010,” said chief executive officer Garry Madeiros and chairman Michael Collier in a joint statement.

“Decisions on how to proceed with the next phase of energy supply expansion must be determined before the end of 2007 to stay ahead of demand.”

The company says the current Pembroke station is reaching its full capacity and under environmental safeguards a new power plant development would require a larger “footprint” area than in the past.

“Looking toward the next 20 years, we believe it is prudent for Bermuda’s energy supply to include smaller electricity generating facilities outside the main Pembroke plant location,” said the two executives.

“As these ‘distributed’ generation sites will be more costly to develop than expansion at the existing power plant, distributed generation should incorporate additional revenue opportunities to offset the increased costs.

“For example, combined heat and power installations that take heat energy from a conventional electric generating unit and captures it for use in a heat exchanger or absorption chiller, would provide an additional revenue source through the sale of hot or cold water for commercial use.”

Belco is in discussions with Government to identify sites in the East and West of the Island where small-scale power generation sites can be placed to provide extra electricity supply.

In its annual report, Belco also recognises the role that can be played by micro-renewable technologies in households such as solar water heating and air conditioning, micro wind turbines and solar photovoltaic.

“Over time, these small-scale renewable energy sources have great potential to reduce demand on the Island’s electricity system, while also increasing self-sufficiency and sustainability,” said the company.

“Belco is working with an expert external consultant, who has been involved in marketing and analysis of renewable energy since 1978, to develop a strategy to integrate small-scale renewable technologies into Bermuda’s overall energy mix.”

Belco has been partnering with some of its customers who are already experimenting with small-scale renewable technologies.

On May 7, Belco holds its annual meeting at the BUEI, and will also give a presentation on on-going consultations and the next phase of power production and transmission.