Deadline reached for Belco’s energy generation plan
Belco was due to submit a roadmap for Bermuda’s energy generation yesterday as part of the next stage of the Integrated Resource Plan.
The Royal Gazette reported in June that the utility is looking to submit a plan for liquefied natural gas to be introduced, as per the Environmental Authority.
The utility’s previous proposal for LNG was rejected in the Regulatory Authority’s Integrated Resource Plan despite the North Power Station, commissioned in 2020, being designed to run on the fuel.
The new IRP proposal must be received from Belco by November 17, after which a public consultation will be initiated in accordance with Section 42 of the Electricity Act 2016.
"Significant investment in fuel infrastructure“ was one of the reasons the RA rejected Belco’s initial LNG proposal.
The RA said at the time: “Although the LNG scenarios are expected to have lower system costs than the non-LNG scenarios under the base case assumptions, there are disadvantages in pursuing LNG, mainly driven by the significant investment required in fuel infrastructure.
“There is a risk of regretting the decision to invest in LNG.”
According to the EA minutes, Wayne Caines, Belco’s president, confirmed that the utility was considering the use of LNG as a bridging fuel until a wind farm could be installed.
The minutes read: “He said that great progress had been made worldwide to simplify LNG transport and use, and that the parent company was committed to assist with this transition.”