Efforts to roll out renewable energy will help to address “an urgent need in the community”, the House of Assembly heard this morning.

The development of eco-friendly projects such as solar photovoltaic farms is under consultation, said Minister of Education and Economic Development Grant Gibbons.

He also outlined plans to reform existing energy regulations.

Mr Gibbons said: “The current use of heavy atmospheric oil and diesel fuel to generate electricity is not sustainable, from either an economic perspective or an environmental one. We must therefore consider other options.”

Mr Gibbons said the Department of Energy was keen to see “the creation of interconnection agreements between BELCO and the many commercial and residential Solar PV system installations that are coming online”.

After “extensive” talks with the Bermuda Working Group, it was agreed a specialist consultant would be hired to look into residential interconnection agreements, commercial interconnection agreements, and utility-scale power purchase agreements. These deals will enable the development of intermediate and large-scale projects, such as solar photovoltaic farms.

Mr Gibbons said that without these power purchase agreements, there could be no credible solicitation for renewable energy proposals for public lands or buildings.

The agreements mean that commercial customers who provide their excess power into the grid will be compensated.

Belco buys back power generated from domestic renewable energy users but no agreement is yet in place for large-scale commercial users.

Mr Gibbons said “the agreements will be developed transparently and be as fair as possible to all participants”.

The Department of Energy is looking into various alternatives to oil and diesel fuel, including natural gas, waste to energy and floating wind turbines.

Mr Gibbons said: “My ministry is acutely aware that interim solutions will have to play a role in Bermuda’s economic recovery, and so we have been looking seriously at liquefied natural gas (LNG).

“LNG may be an excellent bridging solution and it may also have a role to play in reducing our transportation emissions. We believe it will also reduce the cost of energy to the consumer.

“However, it will require considerable capital expenditure by providers. It is imperative that whatever medium-term solutions we choose to pursue, we must also consider our current economic conditions and aid, rather than jeopardise, our economic recovery.”

Mr Gibbons said the Department of Energy was in talks with the Planning and Government Estates departments about building rating systems.

He also outlined that the Department of Energy was continuing to try to reduce the “soft costs” of renewable energy even though the rebate initiatives for solar technologies have ended.

Mr Gibbons described energy regulatory reform as “the top energy-related priority for the Ministry of Education and Economic Development” and said work on this was scheduled to commence over the summer, with public consultations soon after.

Mr Gibbons said: “Energy drives almost every element of our lives and our livelihoods. The Department continues its work on outreach, partnering where possible with other organisations, such as Greenrock, to ensure that the energy efficiency and conservation messaging is consistent and sustained.

“Creating a culture of energy efficiency and conservation will be a major pillar of any national energy plan, and so we must put our collective support behind any initiatives that help educate consumers on how they can reduce their consumption and better control their energy expenditures.

“Conservation is generally the cheapest, most effective means by which the greatest impact can be made.

“I would particularly like to thank the Bermuda Energy Working Group for their sterling efforts in providing valuable input to the Department of Energy on a range of energy policy and related issues.”