Belco is to power the Island by harnessing the natural energy of the sun, wind and ocean.

The company is to build large-scale renewable energy sources to ease the Island's reliance on oil imports and cut greenhouse gas emissions.

It envisages providing a fifth of Bermuda's electricity through solar Photovoltaic (PV) panels, wind farms, wave technology and biomass by 2020. The greener approach is good news for the planet but the bad news is, electricity prices will not get any cheaper. This is due to the costs of investment in the new technology.

Consumers however, can expect more stable prices – less dependent on fluctuations in foreign oil. In 2006, Belco consumed one million barrels. Over the past year, the price of a barrel of crude has reached $135, sending consumers' electricity bills soaring. Belco CEO Vince Ingham told The Royal Gazette the company has now issued a solicitation of interest document to potential suppliers of renewable energy sources.

A shortlist will be made in January with a view to drawing up contracts to purchase power by summer 2009. Mr. Ingham currently envisages three offshore wind farms, three wave technology plants, and six to eight sets of large-scale solar PV panels.

He admitted the success of the venture could result in Belco's expansion plans for its central Pembroke power station being significantly reduced.

"The future development of the power plant will be very much dependent on how successful we are in establishing large-scale renewable systems and other points of generation around the Island (small-scale domestic wind-turbines and solar panels)," Mr. Ingham said.

"Expansion of this central plant will depend on whether we can find other locations whereby we can reduce the amount of capacity here."

Belco's planning application to construct two new power stations at its Serpentine Road plant has prompted angry protests from Pembroke residents, who say a further two generators and three smoke stacks will only deteriorate their quality of life through noise, vibration, soot and odours.

The eight-phase development is proposed over a 23-year period.

If the first phase is approved, construction on the $200-million project will start next summer.

Belco says that due to a projected 1.5 percent annual increase in electricity demand, it must meet a deadline of providing another 28 megawatts by 2011.

Mr. Ingham said yesterday that the first phase — construction of a new generator, was still necessary.

"There is still a need for additional plant by 2010-11 and we do not see in the short-term a renewable solution or alternative site meeting that need, so we are still desirous of installing some emergency plant at this location over the next 18 months," he said.

"That buys us time to actively pursue the large-scale renewable solution as well as some alternate energy sites, without the gun being to our head to meet security of supply."

But he added: "Looking at large-scale renewable power, as and when decisions are made, that will be reflected back here to the central plant.

"As and when we determine other locations, certainly that will impact on scale and timing on what needs to be done at this site."

Mr. Ingham said: "Our desire is to introduce over the next ten years appropriate renewable technologies with a view of reaching an internal target by which Bermuda is over 20 percent renewable by 2020.

This is consistent with targets established in Europe and we believe could be attained here.

"The large-scale renewable solution addresses both our dependency on overseas oil and the impact of carbon release from fossil fuels."

Belco's announcement of establishing large-scale renewable energy production coincides with a series of public consultations by the Department of Energy in order to draft a Green Paper on a National Energy Policy.

Mr. Ingham said yesterday: "There has been a growing interest in seeing renewable energy introduced to the Island, which I think is the result of increasing concern over global warming.

"Recently the elevated fuel costs have also caused considerable concern among our customers.

"As CEO I feel this is the right thing to do and is appropriate as we plan for future energy needs, to introduce these technologies which are becoming more accessible and affordable.

"We have for some time been considering the introduction of renewables. We have now decided to issue a solicitation of interest document to mine all available technologies with specific interest being directed at wind, solar, ocean and waste."

However he said this would not mean cheaper electricity bills.

"We should not look at renewable power as an answer to high electricity costs," said Mr. Ingham.

"Renewable energy in most jurisdictions is subsidised and facilitated by a higher unit cost. It is not a cheap power because of the investment in these facilities. But once the investment is made, renewable energy will provide us with a fixed cost of electricity which we can rely on."

Belco's vision is to incorporate large-scale renewables with small-scale (micro-wind turbines and solar panels) at domestic homes and new hotel developments.

For the past year, the company has been exploring the feasibility of domestic renewable energy at a beta-test site — the company-owned cottage the 'Belmont' in Warwick.

Mr. Ingham said: "We believe with every new house built in Bermuda, provision should be made to include solar thermal PV and small micro-wind turbines."

Alternative sources of energy however, will have to be supplemented by traditional fossil fuel electricity production for the foreseeable future.

Mr. Ingham explained: "Renewables do not yet provide security and reliability because they are intermittent by design — for example, the sun only shines in the day.

"So there is a need to fill any shortfall in capacity using the central power plant.

"The idea is to establish different points of generation at different points on the Island, as well as small points at people's homes.

"It is our vision of expanding from one source of energy out into a system bringing multiple points into play.

"I truly believe this could be a model for small island communities. The agenda we are pursuing, we are both excited and challenged by it because it does depend on availability of sites and the long-term commitment.

"But we are optimistic that the necessary support required to enable some of the large-scale renewables will be forthcoming from both the public and Government sectors."

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