Over the past six months the Bermuda Democratic Alliance has been meeting with representatives of the energy industry in Bermuda and the message is clear.

In order to deal with the challenges of increasing fuel costs, rising demand for electricity and ageing energy infrastructure, Bermuda must forge ahead with an alternative energy strategy now.

Bermuda requires an energy supply that is both affordable and responsive to our needs in the decades to come.

The rise and fall of global oil prices affects Bermuda and Bermudians significantly and we need an energy strategy that can help to mitigate this. Our economy is less competitive because we are so dependent on imported fuel and we must set targets to reduce our dependence on traditional fuel and move towards alternative energy sources. Bermuda's economy is hindered by high fuel costs and by reducing those costs we can make our economy more competitive.

It is encouraging to see a great deal of articles discussing alternative energy plans for Bermuda, particularly in anticipation of the forthcoming Energy White Paper which will outline some great initiatives for the Island. What Bermuda needs now is strong leadership to implement some of these initiatives as soon as possible.

Time is running out for Bermuda to have a proactive energy policy if we don't act soon our energy strategy will be a piecemeal approach as we react to each crisis that arises.

Belco is seeking guidance from the Government on how to invest for the future. Sections of our national power plant are ageing and require new generators in order for Belco to keep pace with residents' ever-increasing power needs.

The investment required is in the range of hundreds of millions of dollars and is not taken lightly by investors at Belco.

If Belco simply proceeds with the purchase of fossil fuel generators, the Island will be stuck with equipment that will soon be outdated and hugely expensive to run if fuel costs continue to rise over the next 20 years.

It is possible that we will not be able to afford the fuel to run our generators.

Before making an investment in new energy infrastructure, Belco requires input and leadership from the Government in order to ensure it directs its investment dollars appropriately.

It is clear that a distributed smart grid is the way to go. This means that in the same way as most households in Bermuda catch their own water for domestic use from their roofs, Bermudians can also use solar panels on their roofs to heat our hot water tanks and provide supplementary power to our homes.

Solar power is even in harmony with our power demand we typically use more power in the summer which is when we can have the most hours of sunshine.

We must promote the widespread use of solar panels around Bermuda and set targets to achieve by 2015. The cost of implementing solar panels must be subsidised in the following ways:

* Continued zero percent duty for any solar panels and related equipment

* Continued use of rebates for any home that installs solar panels

* Reduced payroll tax for firms that install solar panels

* Net metering to allow surplus power to be sold back into the grid

* Green loans from the major banks to subsidise installation of solar panels

Our ailing construction industry can supply the labour needed to install our solar panels, giving a boost to local labourers and companies. Though the switch to solar power requires an initial capital outlay, the solar panels will pay for themselves over the years.

A better way is needed in Bermuda to safeguard our energy future in terms of both the development of an alternative energy strategy and the manner in which it is implemented. An initiative to promote the use of solar panels in Bermuda must be undertaken as soon as possible.

This will require collaboration from all sectors of our community business, government, non-profit organisations as well as the general public. The Bermuda Democratic Alliance is actively meeting with all of these sectors now in order to lead Bermuda towards a sound, sustainable and sunny energy future.

Michael W. Branco is the –Bermuda Democratic Alliance spokesperson on Energy