Living near Belco is like "being stuck at the back of a very badly maintained bus", according to Pembroke Central resident James Hallett.

Mr. Hallett says the oily emissions from the power plant are the bane of his life whenever the wind blows towards his home on Mount Hill.

"Sometimes it makes you nauseous, it gives you headaches," he told The Royal Gazette yesterday.

Pollution from Belco has long been a gripe of its neighbours, who complain it raises health concerns and coats their homes with grime, meaning they have to shut their windows in summer.

Local MP Wayne Perinchief, who has long supported the residents in their calls for anti-pollution measures, acknowledged Belco had a difficult task to be environmentally friendly.

"I know they try their best, as they have to generate energy and are better than in many years; they are having to increase their capacity without increasing their footprint," he said.

Residents hope things will improve after Government makes long-awaited decisions over renewable energy sources.

Belco said in a statement yesterday: "Belco operates the central plant in an environmentally responsible manner by maximising plant efficiency and reducing fuel consumption, which, in turn, reduces emissions.

"However, there are cases when Belco has to rely more than usual on the diesel engines in the oldest part of our central plant.

"Also, we have had to take the short-term step of postponing some planned engine retirements, instead beginning work to extend the operating lives of our oldest engines.

"We have taken this step as we await critical Government decisions about central plant development and the introduction of large-scale renewable energy sources to Bermuda.

"Belco needs Government decisions in order to put in place a plan that will ensure the Island's future energy requirements are met securely, reliably and sustainably, as demand for electricity continues to grow."

Belco has recommended generating 20 percent of energy from renewable sources by 2020, in line with internationally established targets; Government has not yet set a target.

The statement added: "Of course, this means that 80 percent of energy will still come from fossil fuel generation. Toward that end, Belco sought interest from alternative energy providers.

"Any decision regarding large-scale renewable energy generation for Bermuda requires input and approval from Government."