Amendments are in the works to further diversify and modernise the island’s energy sector, the Deputy Premier and Minister of Home Affairs said this week.

Walter Roban said the changes to the requisite legislation were necessary to ensure the island was up to speed and open to investment and innovation.

Mr Roban tabled the Electricity Amendment Act 2024 in the House of Assembly last Friday.

The legislation will see the creation of a licence for large developments to generate electricity above the existing licence threshold of 500 kilowatts, solely for use at their premises.

He said: “The amendment is part of the ongoing efforts to modernise and diversify the energy sector.

“There are more and different amendments coming to the regulatory framework.”

Mr Roban said the Government would continue to propose policies in partnership with the Regulation Authority and energy stakeholders.

Last Friday, he told the House that the Bill would allow a Bermuda-registered company, government department or statutory authority which intends to install power generation equipment to apply for a licence.

Licences will be subject to the RA’s oversight to ensure minimal risk to the grid and for costs to remain stable.

He told The Royal Gazette that the Bill was suited for entities with a “substantial system”, who might wish to benefit from their own energy production to run their operations.

He added: “They don’t have to sell power to Belco; they can design the system so that they can benefit themselves.

“But they would also want to have discussions and get approval from the Regulatory Authority before, because the existence of these systems can have impact on the grid and grid stability.”

Although an applicant may be able to power their entire operation, he said they would still likely remain connected to the grid.

He added: “In most cases, they will be connected. There are very few large facilities on the island that can actually power everything they are doing including through renewables.”

Asked if the amendment would be open to entities wishing to invest in the energy sector, Mr Roban said it would have to be a Bermuda-registered company.

He explained: “It has to be a local company that is operating a local institution that would in the further instance be suitable to make an application.

“It does not guarantee that they are going to get the licence.”

He said the Government anticipated “positive investment in renewables” through the amendment.

He added: “We also want to ensure that there is stability in the supply of electricity and that it does not add any cost to rate payers.”

Mr Roban said he looked forward to educating the public on the legislation.

He said he also wanted to raise awareness on the Water Resources Amendment Act 2024 tabled in the House last week.

The Bill introduced a suite of new measures to protect the island’s oceans and groundwater.

The amendment will make a licensed entity responsible to report spills to the Department of Environment and National Resources efficiently.

Mr Roban said: “It gives our persons in the department more powers to address the issue and potentially levy different fines that will be much more severe. The fines are upped as well.

“Any potential spill, if not handled properly by, could potentially have severe repercussions.”

He said island entities had reported spills “quite efficiently” as mandated by the licence structure.

“The scope of enforcement, monitoring, responsibility is widened under the act.”

Mr Roban said the crafting of the legislation led to a review of the DENR’s management to see where more staff might be required.

Asked if the legislation would affect the Seabright Outfall, which releases sewerage into the ocean off the South Shore, Mr Roban said the facility fell under the remit of the Corporation of Hamilton, with DENR and the Department of Public Health also monitoring it.

However, modifications to the island’s overall water infrastructure could see the outfall “disappear” through construction of waste water treatment facilities.

He added: “The expectation is that in the not too distant future, that outfall will disappear altogether, because we need to move away from pumping untreated sewerage into the actual ocean.”