Local companies will be able to install larger energy sources to generate power solely for use at their premises, MPs heard yesterday.

The Electricity Amendment Act 2024, tabled in the House of Assembly, is to create a licence for large developments to generate electricity above the existing licence threshold of 500 kilowatts.

Walter Roban, the Deputy Premier and home affairs minister, told the House that the Bill would allow a Bermuda-registered company, government department or statutory authority which intends to install power generation equipment to apply for a licence.

Licences will be subject to the Regulatory Authority’s oversight to ensure minimal risk to the grid and for costs to remain stable.

He said: “The licence holder will be permitted to distribute up to the permitted amount, 30 per cent or less, as determined by the RA, of its total electricity generated.”

Responding to questions from Scott Pearman of the One Bermuda Alliance, Mr Roban told the House that the two top candidates for the new licence would be the National Sports Centre, and the Department of Public Transportation’s depot in Devonshire, where solar power would be used for “the charging stations for the numerous buses”.

Mr Roban said the Large-Scale Self Supply Licence applied to any development generating over the 500 kilowatt threshold, and which is to be completely off the grid and without a Belco meter.

He said Bulk Generation Licence holders must enter into a Power Purchase Agreement with Belco to sell all their generated electricity back to the power company.

Mr Roban suggested the legislation would benefit solar developments at homes and businesses.

He said the Government was committed to reducing the use of fossil fuels for the production of electricity 85 per cent by 2035, as reflected in the 2019 Integrated Resource Plan.

However, he said: “Promoting distributed solar development, while restricting installations to 500 kilowatts for large commercial enterprises, is an anathema to the goals of reduction in the use of fossil fuel to produce electricity and also limits the ability of a distributed generator to earn a return on their investment.”

At present, developers of large-scale installations cannot use their own renewable energy, but are required by law to sell it to Belco for approximately 12 cents per kilowatt.

Mr Roban said: “They must continue to buy all their consumed electricity from the utility at in excess of 45 cents per kilowatt.”

He said large solar developments, such as the National Stadium and government rooftop installations, fell into this category.

Mr Roban warned that providing exemptions from the 500 kilowatt limit had to take into account “the impact on the grid and the cost to the rate payer”.

“If not managed effectively, there could be power disruptions affecting the development and the neighbourhoods adjacent to the large development.

“In addition, the savings derived from the Feed-in-Tariff for such a development could lead to the costs being assumed by rate payers.”

Mr Roban told MPs the RA would need to determine that the development would have minimal impact on the grid and rate payers before an installation was built.