After a year of consultation with nine Town Hall public meetings, Government has outlined its national energy policy in a Green Paper. The solutions to Bermuda's energy crisis will include large-scale solar and wind turbine installations, domestic solar and photovoltaic renewables, electric and hybrid vehicles, plus an emphasis on energy conservation and efficiency. A regulatory authority is to be established to oversee the national policy, while revisions to the Building Code and Customs tariffs will seek to encourage uptake of renewable energy initiatives. Energy Minister Terry Lister announced the measures in a statement to the House of Assembly on 'A National Policy Consultation on Energy Debate'.

Apocalyptic warnings were enough to wake up even the sleepiest MP in the House of Assembly as Energy Minister Terry Lister presented Government's Green Paper on a national energy policy.

And wake up Bermuda must, to ease its reliance on expensive oil imports and to confront the reality of climate change.

"Massive droughts, more intense hurricanes, a striking array of human misery including expanded disease, tens of millions of climate refugees, sea levels rising several metres and a planet able to sustain only a fraction of the nine billion people projected to become, as of 2050, Earth's stable population."

Mr. Lister said: "This is the reality that the world is facing if governments do not act now to create sustainable energy policies. Although these challenges seem far away, we in Bermuda must act now to ensure that the predictions do not become fact.

"Creating an energy policy for Bermuda is a subject that does not see political affiliation, age or race. This policy will benefit us all as Bermudians and human beings."

The Department of Energy was formed in January of last year "to address energy-related issues identified in the Sustainable Development Implementation Plan".

Over the past year, nine town hall meetings have been held to search for solutions, with presentations by experts in the energy field.

"Out of this, considerations for an energy strategy in Bermuda were discussed, and the Green Paper was created to lead the way forward," said Mr. Lister.

"Fortunately, there are many solutions that we may draw upon to solve our energy challenges.

"The potential for reducing energy demand in Bermuda through conservation and efficiency measures is significant. By applying incentives such as the Customs tariff to regulate the importation of key energy consuming technologies such as air conditioning systems, lighting products, other electronic appliances and vehicles, Bermuda can move toward more efficient use of energy.

"Bermuda has a diverse mix of renewable energy resources. It makes both environmental and economic sense to invest in the opportunities these resources create, as most are environmentally benign, are not subject to rapid price fluctuations, and allow for the investment of millions of dollars back into the local economy, rather than to foreign oil companies."

The Minister said that in 2007 Bermuda imported 1.76 million barrels of oil, of which more than a million was used to produce electricity at Belco.

Looking to the alternatives, he said: "Wind and solar energy are both well developed and attractive solutions, whilst developing technologies such as wave energy and ocean thermal energy conversion also offer potential.

"The high cost of electricity in Bermuda is a strong driver for alternative/renewable energy technologies. Clear policies on grid connection and the rates paid for power produced from these technologies will offer a strong incentive for their uptake."

Announcing a new regulatory authority, Mr. Lister said: "The Department of Energy is responsible for developing energy-related policies and legislation, while a regulatory authority will be established to oversee regulation of the energy sector.

"The regulatory authority is likely to be required to regulate prices and fees in a fashion that promotes competition and encourages alternative/renewable energy technologies."

He added: "The Department of Energy will continue to consult on its proposed policies, legislation and incentives, thereby providing a transparent process for the creation of an energy regulatory framework for Bermuda."

The Minister said the SDIP recommends an energy strategy which includes: a renewable energy target; facilitating take-up of new technologies; ratifying the Kyoto Protocol; and improving energy efficiency.

He said among the challenges the Island faced were a high population of vehicles almost 2,300 motorised vehicles per square mile and some of the highest electricity costs in the world.

"The momentum created by this Energy Green Paper will make energy conservation/efficiency and alternative/renewable technologies a priority," he said.

"To develop a competitive domestic energy market, Bermuda will need effective legislation and a sound regulatory framework. Interconnections must be put in place and be fully applied in practice. The rules of competition will then need to be vigorously enforced.

"Bermuda has the ability to tackle this new challenge. Our unique geography lends itself well to adopting alternatives for transportation, and the electric utility has an exceptional record in demand management.

"Diversifying the types of energy we use will create conditions for further economic growth, new high-skilled jobs, greater energy security and a much improved environment. Renewable energy technologies are not just attractive and exciting technologically, they are cost-effective 'green', 'clean' and regenerative."

He added: "Conservation and efficiency will form a major part of Bermuda's future energy strategy, staving off the inevitable effects of increasing fuel costs."

Government is to run campaigns to encourage residents to reduce energy usage in the home and to adhere to international standards in appliances, such as the Energy Star programme.

Mr. Lister said: "Mandatory minimum appliance efficiency standards combined with appropriate duty rate adjustments will ensure that more efficient appliances become the norm."

He added: "You may ask how we can reduce our dependency on fossil fuels for transportation. I offer this suggestion avoid using fuel in the first place by walking, cycling, avoiding unnecessary journeys, choosing more efficient routes and in time, by using vehicles powered by renewable energy."

The Minister said use of public transportation was also "not high enough". Government may look at extending operating times and geographical coverage, while alternative fuel vehicles could also be added to the fleet.

Carpooling was another option, and this is something Government will encourage through community campaigns.

"Carpooling will reduce dependency on fossil fuels and ease congestion," said Mr. Lister.

He said that in homes and other premises, the introduction of smart meters will enable people to monitor energy usage and thus reduce it.

Government is to make smart meters mandatory in new buildings.

"Smart meters are an advanced type of usage meter, which is capable of providing significantly more information on consumption patterns than conventional meters," said the Minister.

"They are often capable of net or dual metering. Traditional electricity meters are often difficult to access and, as a result, provide relatively infrequent data.

"Smart meters offer real-time tracking of electricity use to the consumer, either directly through display units, or indirectly via an Internet page hosted by the electric utility. This would allow the consumer to become familiar with his electricity use and to note behaviours which may lead to savings or excess electricity use."

Mr. Lister added: "For consumers who have the ability to generate electricity from alternative/renewable technologies, net metering allows for the flow of electricity both ways, typically through a single meter.

"During times when a consumer's generation of power exceeds usage, electricity is permitted to flow back through the electric grid. We must consider the technology necessary to meet the applicable safety, power quality and interconnection requirements for these smart meters.

"The new regulatory system will include the necessary elements for the adoption of net metering. ith an emphasis on alternative and renewable energy technologies, Bermuda can set a global example of how to move forward in an energy sustainable manner.

"Renewable energy options for transportation may appear limited. Shifting to an electrical generating system based on renewable energy will lay a solid foundation for electric and hybrid vehicles. Flex-fuel vehicles will offer a non-electrical based alternative once reliable fuel supplies are established."

Mr. Lister then said the Island's climate was ideal for adopting renewable technologies such as solar hot water. It would cost up to $9,000 to install such a system in a home.

"Bermuda's strong solar resource can be utilised to produce both electricity and heat for water. One of the simplest uses of solar energy is to heat water."

He said solar photovoltaic technology, which converts electromagnetic energy from the sun to an alternating current via an inverter, required minimal maintenance requirements.

Mr. Lister added: "Bermuda has a strong wind resource, estimated to be on average over seven metres per second.

"Modern wind turbines convert energy available in the wind into mechanical energy that is used to power generators to produce electrical energy. Designs are carefully optimised to operate as closely as possible to the maximum possible efficiency of almost 60 percent, while remaining safe, economical and unobtrusive.

"Although Bermuda has limited free space for large scale onshore turbines, there may be some appropriate locations, particularly when considering their small footprint, which allow land to be used for other purposes. Offshore sites offer greater potential with feasibility studies concluding that offshore wind power development is technically viable and that the existing electrical system is capable of accepting connections from an offshore wind farm. The costs of going offshore, however, are significant."

But he added: "A 20 megawatt wind farm would be expected to output around 70 gigawatt hours of electricity a year, which is approximately 10 percent of Bermuda's annual demand. Such a wind farm would offset the purchase of about 100,000 barrels of oil per year."

The Minister said the Department was also exploring wave energy.

"Bermuda has a strong and relatively consistent wave climate and every household in Bermuda is within a mile or two of the Atlantic Ocean. This proximity to the ocean minimises the transmission requirements for wave energy technologies," he said. "Waves may be predicted days in advance, which increases the value of the power generated as it may be smoothly integrated with conventional power generation."

He said as such, Bermuda could prove to be a role model for the rest of the world in piloting wave energy technology.

"It is anticipated that once a suitable technology emerges, Bermuda may be able to take advantage of this resource, simultaneously becoming an international test-bed for some of the first commercial applications of wave energy technology."

However, research had shown the Island was not a suitable location at which to adopt ocean current energy. He explained the minimum speed for an economically-viable installation was considered to be 2 to 2.5 metres per second. In Bermuda, ocean currents rarely increased stronger than 20 to 30 centimetres per second.

There was "no consistent current flow," he said.

Waste-to-energy and biomass however, were other options the Island could consider.

"Bermuda produces approximately 70,000 tons of municipal solid waste each year. Research suggests that 450 to 550 kilowatt hours of electricity could be generated per ton of municipal solid waste," said Mr. Lister.

"This indicates that the Tynes Bay facility could potentially provide over five percent of Bermuda's annual electricity requirements. The planned expansion of generation capacity at the Tynes Bay Waste to Energy Facility is expected to more than double the power output for the same amount of waste."

Combined heat and power (cogeneration) plants could also drive waste heat energy into processes such as water heaters and absorption chillers. Mr. Lister said 56-77 percent of the energy produced from burning oil to produce electricity by Belco is lost as heat.

By siting electricity generation close to demand for heating or cooling, this would therefore ensure greater efficient use of energy.

"Currently, around half a dozen systems are being considered for various large commercial properties around Bermuda," said Mr. Lister.

He said alternative and renewable energy technologies will be connected to the electrical grid, from residential to utility scale projects. Government is to set national renewable energy targets.

"An open grid policy will require open access to the electrical grid, providing certain technical constraints have been met and will work together with a smart metering policy, to ensure that anyone wishing to generate his own electricity and feed it back to the grid is able to do so," said the Minister.

"It shall be mandatory to fit smart meters with net metering capabilities to all new buildings, and to plan a retrofit programme for existing buildings. This will provide the foundation for the interconnection of small scale renewables energy to the electric grid and this will enable consumers to track their electricity use and will therefore create greater opportunities for savings."

He added: "A rate structure that varies depending on the time of use of electricity will be established. This will allow the electric utility to manage their load factor by encouraging the use of electricity at different times."

In addition, Customs Tariff incentives will encourage renewable energy technology take-up, greater conservation and energy efficiency. "Consumer products will have to meet minimum efficiency standards to be allowed into Bermuda," he said.

"For example, conventional light bulbs could be phased out in favour of compact fluorescent light bulbs and/or light emitting diodes, which would be the only technologies able to meet the minimum efficiency standards."

He said the Building Code would also be revised "to support more sustainable use of energy" in design, such as through Leadership in Energy and Environmental Design (LEED) and Code for Sustainable Homes standards.

"This will affect new buildings and existing buildings undergoing significant renovations," said Mr. Lister. "For example, lighting systems could be required to have automatic occupancy sensors. Requirements for on-site alternative/renewable energy technologies such as solar water heaters could also be included within the Code."

Alternative/renewable energy projects will also be given a priority in the Department of Planning.

"Solar hot water and photovoltaic systems could undergo streamlined Planning approval if applications propose to locate them on south-facing or horizontal roof areas of selected buildings," said Mr. Lister.

"Owners of buildings on land utilised for alternative/renewable energy production or buildings meeting specified conservation/efficiency standards could be eligible for land tax deferrals for a period of several years," he added.

In conclusion, Mr. Lister said: "The Government will lead by example through the initiation of projects that will join schools, hospitals, and Government agencies in adopting energy conservation/efficiency programmes and alternative/renewable energy technologies.

"Public sector participation would also encourage the deployment of these systems where the private sector is unable to.

"Energy policy, legislation and regulation will be covered in detail in a separate industry-orientated supplement to this Energy Green Paper."

But he said: "The Department of Energy will be responsible for developing policies and legislation while proposing to transfer authority for implementing and overseeing electric, gas and other energy regulation to the proposed Regulatory Authority.

"The Department of Energy will set a policy framework for the Regulatory Authority and establish the principles by which it will monitor and regulate industry compliance.

"As we move forward with this policy, securing the future of our families, young people and our Island home, we must all band together to face the challenges ahead. The impact of our energy decisions today will reach far into our future.

"This initiative is critical to Bermuda's ongoing development. With the implementation of this policy we will ensure Bermuda is a world leader in the field of sustainable renewable energy sources."