Belco yesterday defended plans for two new power stations at its Pembroke site, but also backed protestors' calls for a national energy plan.

Residents protested the company's proposals outside Cabinet on Friday, calling for the relocation of the generators and for Government to produce a national energy plan. Belco's Planning application is the initial stage of a proposed eight-phase development over 23 years.

The $200 million project features a North and South Power Station plus another three emissions stacks at its Serpentine Road site. The company says it must meet a 2011 deadline of providing an additional 28 megawatts of electricity, in order to cope with a projected 1.5 percent annual increase in demand.

But residents say the new plants will only exacerbate environmental and noise pollution in the area. They claim their properties already suffer from vibration and that soot ends up in their drinking water.

Yesterday, Belco spokeswoman Linda Smith said the company has explored alternative locations for the power stations. Proposals at Morgan's Point in 1991 "never progressed", but Ms Smith said "discussions are continuing" on possibilities for Dockyard and Tyne's Bay.

She said that due to the pressing need to meet the 2011 deadline for additional energy generation, Belco has had to proceed with its Planning application for two new plants at Serpentine Road.

Ms Smith however, admitted there was a need for Government to formulate "a cohesive long-term energy plan that makes provisions for land requirements for electricity production, as well as delivery".

She said yesterday: "We were aware that neighbours were intending to file objections and represent their views to Government. They have every right to do so, as that is a part of the process. "We held a meeting for neighbours on November 8 and presented Belco's plan to them, along with an explanation of the options that have been, and are still being, explored for distributed sites in other locations and renewable alternatives.

"We also gave them the reasons for the need to proceed with the Planning application at this time in order to meet the increased demand for electricity we project will be required, in the first instance, by 2011.

"The actual Planning application outlines a 20-year development plan, to be constructed in eight phases over that period, and as demand requires. "The plan is flexible and will be adjusted every three to five years, to take into account other technologies and options that we expect will become available over time.

"However, the first critical date for which plans need to be solidified is summer 2011, when we project Bermuda's demand for electricity will require an additional 28 megawatts, in the form of two new 14 megawatt engines, in order to ensure a reliable supply.

"Without this additional generating plant, Belco will not have the redundancy needed to ensure reliable supply in the event of an engine breakdown or the need to take any engine out of service for maintenance.

"Given no other alternatives available at the moment to meet that demand, we have proceeded with the Planning application.

"The reason we have submitted an application that covers the 20-year period is that the current Belco site is congested, and in order to accommodate the next installation we will have to re-configure the site.

"This includes demolishing the existing fuel tanks and creating a new fuel tank facility on property on the north-west portion of the site, and demolishing our transport/garage facility and building the new power station there. This re-configuration has required that we develop a long-term plan that takes into consideration how the property will be re-developed into the future as older engines are retired and replaced with new plant."

Ms Smith said: "Given the nature of the electric utility business, Belco has been required to develop a long-term planning discipline. In 2005, we commissioned the last two new engines in the East Power Station which marked the end of the previous 20-year development period.

"At that point, we began working on our Electric System Discussion Document which we shared with Government and others, beginning in early 2006, in an effort to stimulate discussion regarding the issues and options to be considered in order to ensure reliable electricity supply going forward.

"As in 1991, when we were planning for the East Power Station, just recently completed, we highlighted increased demand for electricity and tried to stimulate discussion on other locations that could be earmarked for future expansion.

"In 1991, we were particularly interested in Morgan's Point, however, discussions never progressed. In most recent times, discussions have centred on Southside, Dockyard, and Tyne's Bay. Unfortunately, Southside appears to be out of the question due to airport regulations, while discussions are continuing on possibilities for the other two locations.

"However, these discussions have not yet concluded in agreements for any alternative site and we need to proceed with the next expansion in order to meet the 2011 deadline."

Ms Smith said: "We are in agreement with the neighbours that given our limited land and infrastructure, energy is no longer a localised issue but one that impacts all of Bermuda and should be the focus of a cohesive long-term Energy Plan that makes provisions for land requirements for electricity production, as well as delivery.

"This includes not only power plant development, but also land for small substations to distribute power and the setting aside of appropriate land for receiving renewable ocean energy that will likely be available in the future.

"In the meantime, in addition to the current planning application, Belco is developing its small scale renewable strategy and policies, and we continue to monitor developments in ocean current technologies and other renewable options to incorporate into our on-going planning activities.

"The objection period for the Belco Planning application has just concluded and now the plan will be reviewed as per the normal process. "We are hoping that approvals for the first phase of development will be agreed no later than the end of the first-quarter of 2008 so that we can proceed to contract for the first two new engines by the second-quarter of 2008, so that we can ensure we will be able to meet Bermuda's 2011 demand.

"In the meantime, we will continue to work with Government and the community to find alternatives and solutions that will give us better options to meet the next critical deadline for power which we anticipate will come in 2013."