Future energy needs planning process suspended
A planning process to determine Bermuda’s future electricity needs has been suspended for a period of up to 18 months.
Alexa Lightbourne, the Minister of Home Affairs, said the pausing of the Integrated Resource Plan was necessary “to ensure that electricity planning reflects the economic reality Bermudians live with and the Government’s policy to reduce energy costs”.
However, clarification is being sought by the energy provider Belco, after the latest plan was approved and made public on the Regulatory Authority’s website on July 3 — three days before the suspension.
The site describes the IRP as Bermuda’s strategic tool for ensuring a reliable, cost-effective and sustainable electricity supply.
Updated at least every five years, it seeks to achieve a practical long-term plan for Bermuda’s electricity system.
The Electricity Amendment Act 2026, which was passed last month, gives the Minister of Home Affairs the power to suspend the IRP process if deemed in the public interest.
Ms Lightbourne noted the grounds for the decision had been documented and were “quantified”.
She said: “The Integrated Resource Plan determines Bermuda's future electricity generation mix for the next 15 to 20 years.
“The decisions arising from this process will have far-reaching implications for every resident and business on our island.
“They will influence how electricity is generated, the pace and scale of renewable energy deployment, future investments in energy infrastructure and ultimately the cost of electricity paid by consumers.
“Those decisions must be guided by current national policy. The Government will not permit further significant decisions and expenditures until the Integrated Resource Plan is aligned with the updated National Electricity Sector Policy.”
She added: “The record before the Government is specific. The IRP has been in various stages of development since 2019. IRP cycles in comparable jurisdictions complete within 12 to 24 months.
“The 2019 plan set a target of 85 per cent renewable generation by 2035. In 2025, fossil fuel generators supplied 91 per cent of the 594 gigawatt hours generated on this island, and solar supplied under six per cent.
“No Innovative Licence has been awarded. No offshore wind has advanced. Seven years of process have not moved the generation mix.”
Ms Lightbourne added: “The decisions made through the IRP will shape what every household on this island pays for power for decades.
“The policy framework, the legislation and the public record are now in place to make those decisions properly, and the plan that follows will be measured against one test: what it delivers for the Bermudian consumer.”
Questioned in the House by One Bermuda Alliance MP Linda Smith, Ms Lightbourne also said the latest IRP did not contemplate “the impact new technologies could have to the grid”.
Belco subsequently moved to clarify “inaccuracies” in the statement about the IRP’s timeline and the company’s role in developing it.
A spokesman said: “The current IRP was not seven years in the making. The 2019 Integrated Resource Plan was the last plan published, but the work behind the current plan began in Q4 2022.
He added: “As Bermuda's licensed transmission, distribution and retail holder, Belco brings the qualified, licensed engineering expertise to draft the plan, because this is the work the company does every day. But the RA owns the process, owns the consultation and owns the decision to approve and publish.
“On the status of the plan itself, the record is also worth clarifying. The Integrated Resource Plan was approved and made public on the Regulatory Authority's website on July 3.
“The subsequent suspension order, which became operative after that approval, creates uncertainty about the legal and practical effect of suspending a process that had already reached approval and publication.
“Belco is therefore seeking clear confirmation from the RA on where the approved and current IRP now stands. Customers, investors and stakeholders deserve one clear and accurate explanation of the IRP's current status and next steps.”
Additionally, the spokesman explained Belco remained open to guidance from Government and from the RA on the path forward, and he added that the energy provider believed the RA was “best placed” to lead the IRP because of its independence.
“Belco’s engineers have drafted this plan under the Regulatory Authority’s direction from day one,” said Wayne Caines, president of the utility.
“The RA sets the process, runs the consultation and makes the decision, and our ownership structure has never changed what this company is.
“Belco was built by Bermudians and is staffed by more than 250 Bermudian employees who balance reliability, sustainability and affordability for our customers every day.
“We remain ready to work with the Regulatory Authority and with Government, in the best interests of the Bermudian consumer.”
An RA spokesman confirmed it was aware of the minister’s comments and said the latest IRP was approved by the Board of Commissioners on June 25.
He added: “The RA remains guided by the statutory process undertaken by the board and the decisions made pursuant to its legislative mandate.
“As the matter is currently the subject of ongoing engagement, it would not be appropriate to comment further at this time.
“The RA remains committed to discharging its mandated responsibilities independently, transparently and in accordance with the legislative framework established by Parliament.
“As part of the implementation of the already approved IRP, the RA will undertake a comprehensive programme of public and stakeholder engagement in the coming weeks to support understanding of Bermuda's long-term electricity planning framework, the evidence underpinning the IRP and its role in delivering a secure, reliable and least-cost energy future for Bermuda.”
• To read the minister’s statement in full, see Related Media
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