Government created a Department of Energy in response to soaring oil prices rather than global warming, it was reported yesterday.

In his inaugural Press conference as Minister of Energy, Telecommunications and E-Commerce, Terry Lister said that the Island spends up to $100 million on oil just to produce its electricity — the equivalent of $1,500 per person.

"This is a lot of money which is going out of the country," said Mr. Lister. "The inflation rate this year is largely a result of the increase in the cost of oil so we should move away from that as quickly as we can."

Mr. Lister expanded yesterday on the Government's Throne Speech pledge to produce a Green Paper on a national energy policy.

The Minister said he wanted to see the Paper "within a year", and that the public and "all the environmental groups" would have an input.

He admitted: "For too long Government has maintained a hands-off approach to the issue of energy in Bermuda.

"However, the time has now come for Energy to become an important element in a Ministerial portfolio, and this Government will take bold steps in addressing Bermuda's ever-increasing carbon footprint."

Mr. Lister said the creation of a portfolio now in 2008, was all about reducing Bermuda's dependency on oil. "This Government has stepped back and watched what was happening overseas," he said. "But I think we are at the point now that with costs being where they are, we should look at things, definitely."

In 2006, the Belco power station consumed nearly a million barrels of oil.

"With the price of oil near $100 per barrel, we in Bermuda spend almost $100 million just on the fuel to keep our power station running. That equates to roughly $1,500 per person per year," said Mr. Lister.

"Bermuda residents are consuming more and more energy every year. Figures show an average annual increase in energy demand of 1.5 percent and by 2011 our sole power plant has said they will not be able to generate enough energy to keep up with demand."

He said Government would work with Belco in experimenting with combinations of traditional and renewable energy sources, in order to reduce costs.

"I would like to think Belco will work very closely on the renewable sources," said Mr. Lister. "Whatever source or combination of sources the community ends up using, people and businesses will still have to buy their power from Belco. Belco will always have buyers, and I project that as we get down the road to 2030, Belco will be more profitable than it is now."

The Department of Energy will be staffed by a Director and Senior Policy Analyst. It will work with other Government departments, Belco, consultants and sustainable development groups in forging the way forward. Mr. Lister admitted that the success of "reducing Bermuda's reliance on fossil fuel" depended on participation by members of the public. Much revolves around a change in our behaviour, such as swapping standard light bulbs for CFL models, and purchasing energy efficient appliances.

"If everyone does a little, we will make a big impact," said Mr. Lister.

The Department of Energy is now to hold a series of consultative community meetings to get the ball rolling. It will also assess the energy efficiency of domestic and commercial buildings; encourage domestic take-up of micro-wind turbines, solar and Photovoltaic (PV) panels; and introduce lower Customs duties for energy-efficient electrical appliances.

Mr. Lister said that if the public did not buy into going green, Government may resort to higher taxes on certain products.

Last night, Stuart Hayward, chairman of Bermuda Environmental and Sustainability Taskforce (BEST), said: "It is good to hear the Government making these constructive noises and we trust that the consultation will include grassroots organisations, in particular Belco's neighbours who bear the brunt of existing pollution and future pollution if Belco expands in its current location.

"The larger issue is not so much energy supply as moderated demand, and here we would expect Government to take a leading role in reducing wastage in Government buildings and in inspiring businesses to cut their usage in air conditioning and heating."

The Minister added: "It is important to note that the Energy initiative is in its infancy.

"While many proposals are on the table, and I'm sure many more will be received, we have not discounted any option, be they renewables such as wind, solar and ocean currents, or a combination of traditional fossil fuel generation combined with renewables.

"Together we can find the right balance for Bermuda's future energy needs."