Government hopes that by eliminating duty on equipment to harness wave energy Bermuda can develop ways to use the ocean to produce electricity.

On Monday the House of Assembly agreed to waive duty on certain green technology and reduce duty on others.

"The primary purpose is to provide zero-rate of reduced rate of import duty on certain energy efficient goods and on goods for use in harnessing power from renewable energy sources," Finance Minster Paula Cox said.

Solar thermal water tanks, ocean powered generating sets and grid tie photovoltaic inverts were among some of the green technology items which saw duty dropped to zero.

Ms Cox added: "The World Energy Council has estimated that approximately two terawatts (two million megawatts), about double current world electricity production, could be produced from the oceans via wave power.

"It is a genuinely renewable energy source and locally abundant giving wave energy significant local potential. Accordingly Government seeks to encourage the development of ways to harness wave energy for local electricity production."

She said electric water heaters utilising pump technology, LED light bulbs and light fittings would see their import duty drop from 22.25 percent to ten percent. And electrical trucks will see their duty fall from 33.5 percent to 12.5 percent.

People with businesses generating electricity and waste heat recovery will now also receive an exemption from duty on equipment; previously BELCO was the only company that received the exemption.

Also exempted from duty were goods for Bermuda's World Heritage Centre and materials for the King Edward VII Memorial Hospital redevelopment.

"[The new duty rate] provided the St. George's Foundation with duty relief on the importation of goods for their exhibits and related exhibits materials for the World Heritage Centre and the newly restored Deliverance — both of which are operated by the St. George's Foundation," Ms Cox said.

Duty relief for goods imported for the construction, fitting out, maintenance and refurbishment of the hospital's redevelopment was also granted.

This includes relief on duty for large construction items such as cranes temporarily imported for the project.

Television and radio reception apparatuses will also see their duty trip from 33.5 percent to 22.25 percent, in order to bring it inline with other consumer electronics.

Opposition MP Grant Gibbons agreed with the amendments to the Customs Tarriff Act, adding that encouraging green technology was a positive step for the Island.