Nuclear power is not a suitable alternative energy source for Bermuda and wind farms are questionable — the Island should be looking more to the sun and importing natural gas while cutting down on its own electricity usage.This according to the new president and CEO of Ascendant Group Walt Higgins, who has been a US energy industry leader and nuclear engineer.But even solar panels, solar thermal energy and introducing natural gas aren’t without significant challenges, he said.It’s estimated it would cost hundreds of millions of dollars to transport liquid natural gas and build an LNG terminal and infrastructure in Bermuda.Meanwhile, solar energy would require substantial investment and space — seven to 10 acres per megawatt — and output is intermittent.To address our future energy needs and environmental concerns Belco’s so-called New Energy Equation calls for a combination of replacement of its engines over time to ensure that base load is met efficiently and reliably, as well as power generated from renewable sources and demand-side management — technical, organisational and behavioural solutions to cut electricity consumption and demand.In fact, the Equation calls for 20 percent of Bermuda’s power to come from renewable sources by 2020, while Government’s Energy White Paper calls for 30 percent from renewable sources by 2020, therefore, somewhere between 70 to 80 percent of power will be generated by base load engines when the 2020 targets are met.So where will that energy from renewable sources come from, on an isolated 21-square-mile Island, in the midst of recession, with a population of about 64,000 people, thus making it tough to achieve economies of scale?Currently, we are nearly 100-percent dependent on imported oil. Belco uses around one million barrels of fuel annually, its total fuel costs were some $122 million in 2011.Bermuda’s volume of electricity consumption in 2010 was nearly 651 million kilowatt hours (kWh), slightly lower than the 656 million kWh consumed in 2009.We asked Mr Higgins and two Belco officials what they believed the best options for Bermuda were when it came to alternative energy sources and renewables.The answers below were provided collectively by Mr Higgins, Belco assistant vice-president, Engineering Roger Todd and Belco senior vice-president, Engineering, Environment and Occupational Health and Safety Michael Daniel.What do you feel are the best alternative energy options for Bermuda?Walt Higgins: “Introduction of natural gas as an alternative fuel to enable higher efficiency plant and reduce greenhouse gas emissions, in support of the (Government) Energy White Paper.— “Solar thermal water heating, most easily achieved during major renovations or new construction.— “Commercial scale solar photovoltaic (solar PV). Significant penetration of solar PV would provide a measure of peak ‘shaving’, as peak demand is driven by air conditioning loads in the summer.— Not really alternative energy, but a lot can be done with demand side management (ie on the customer side of the meter) to better utilise the plant we have.”What are the pros and cons of Solar Thermal Water Heating for Bermuda? (Solar water heating systems use panels to collect free heat from the sun to warm domestic hot water, mostly for indoor water heaters or for pools.)(Mr Higgins, Mr Todd, Mr Daniel):Pros:— High-efficiency method of water heating.— Reduces fossil fuel dependency and greenhouse gas emissions— Not subject to electricity or fuel pricing.— Low maintenance.— Mature technology. Prices are reducing as production increases, resulting in shorter payback periods than a few years ago.Cons:— Retrofitting can be difficult, therefore, best achieved during major renovations or new construction.— Capital cost required to install the system, but good return on investment.What are the pros and cons of Solar Photovoltaic (PV) for Bermuda?(Mr Higgins, Mr Todd, Mr Daniel):Pros:— Reduces fossil fuel dependency and greenhouse gas emissions.— Not subject to the fluctuations in fuel pricing.— Low maintenance (if no battery storage).— Mature technology. Prices are reducing as production increases, resulting in shorter pay back periods than a few years ago.Cons:— Requires substantial space seven to 10 acres per megawatt (MW). Therefore opportunity in Bermuda is limited primarily to rooftops.— High capital investment. Typically $7,000 to $10,000 per kilowatt (kW), depending on the size of the installation.— Output is intermittent as it relies on the intensity and duration of sunlight. It is not suitable for baseload power production. Conventional power generation or battery storage is required as backup to provide firm capacity.— If battery storage is utilised, maintenance, replacement and disposal of batteries are required on a shorter life cycle than PV system. Battery storage will also increase the capital cost and reduce the return on investment (ROI).What are the pros and cons of Wind Farms for Bermuda?(Mr Higgins, Mr Todd, Mr Daniel):Pros:— No fuel costs.— Reduced greenhouse emissions in support of the Energy White Paper.Cons:— Requires substantial space, therefore only possible offshore in Bermuda.— Offshore solution has higher capital and operating and maintenance cost, therefore wind farms are often heavily subsidised.— Significant transmission infrastructure requirements and backup generation.— Highly variable output dependent on intensity and duration of wind — not suitable for baseload power production.— Noise and aesthetics.What are pros and cons of Ocean Energy for Bermuda?(Mr Higgins, Mr Todd, Mr Daniel):Pros:— No fuel costs or emissions.— Ocean energy is fairly reliable (or so research has shown so far).Cons:— Technology is in research & development (R&D) and not yet in commercial production/operation.— Unforeseen operations and maintenance challenges as with any new technology.What are the pros and cons of Nuclear Energy?(Mr Higgins, Mr Todd, Mr Daniel):Pros:— Lower emissions than traditional fossil fuel power generation— Typically lower electricity cost than oil-based generation.Cons:— Not available on a scale appropriate for Bermuda.— Traditional nuclear plants too large for Bermuda, greater than 500MW but typical capacity is 1300MW. (For comparison — Belco’s maximum generation capacity is 162MW). Smaller Nuclear Pebble Bed Reactors are still in R&D phase.— High capital cost.— Nuclear waste, regulation, safety.— Due to the worldwide sentiment with regards to nuclear this is not a likely option.What are the pros and cons of Natural Gas in Bermuda?(Mr Higgins, Mr Todd, Mr Daniel):Pros:— Natural gas is the cheapest fossil fuel, less expensive than heavy fuel oil, diesel and propane.— Natural gas is the cleanest fossil fuel. When compared to diesel there is a 25 percent carbon dioxide (CO2) reduction, 85 percent nitrogen oxide (NOx) reduction, 99 percent sulphur oxide (SOx) reduction and 99 percent reduction in particles.— Natural gas is in abundance with proven reserves of over 100 years in the US alone.— Belco’s existing and planned generators are capable of running on Liquefied Natural Gas (LNG).Cons:— Natural gas would need to be transported to Bermuda in its liquid form or as LNG.— An LNG terminal would need to be constructed to receive, cryogenically store and re-gasify the LNG for distribution.— LNG terminals and associated infrastructure have a high capital cost.