Bermuda could be set to get more economical electricity thanks to newly-unveiled plans by Renewable Energy Holdings (REH), an AIM-listed British investor and operator of renewable energy technologies, and Bermuda-based Triton Renewable Energy to supply the Island group with wave-generated electricity, according to online publication M&Adeals.co.uk

The negotiations are expected to be completed at the end of the year and, if successful, they would push forward the construction of a 2MW test site followed by a grid connected 20MW wave power installation.

But Belco will not be directly involved in the new project.

Under the terms of the agreement, REH and Triton would build and operate wave farms in Bermuda using REH's CETO wave power technology, a wave energy device located on the ocean floor that generates electricity on-shore.

Triton's role would involve developing the wave farms, while REH would grant the rights to use its wave technology and help to build the wave farm sites. The two firms aim to supply Bermuda with more economical electricity.

Mike Proffitt, REH's CEO, said: "It is currently very expensive to generate electricity in an island environment, due to the high cost of imported fuel oil. CETO provides an economic and clean solution to this problem. Bermuda has an excellent wave regime and there are several sites, which we believe would be suitable for a CETO wave farm."

REH owns two operational wind farms sites in Germany. REH is also at various stages of development of wind farm sites in Poland and Wales.

A spokeswoman for Belco said: "We are aware and supportive of the project, but have no direct involvement. Our only involvement would be as a potential purchaser of power, including connection to the grid."