Because the demand for electricity is expected to soar in the next two years, the Bermuda Electric Light Company are planning to build a new plant.

"Projections show that by 2005 there will be a need for additional plant space," Belco's vice president of external relations and corporate communication Linda Smith said.

The expected additions include two 14-megawatt, medium speed, diesel engines that will utilise the existing stacks on the east side of the plant. No other stacks are to be built but there will be an additional building that will house the two engines.

"Growth, demand and retirement of existing facilities are the reasons for the expansion," Ms Smith said.

Preparation for the plant is at the early stages but Belco plans to have the facility ready in 18 to 24 months.