Bermuda - A National Energy Transition
October 12, 2011
Bermuda’s past use of energy is interesting and unique. Prior to the introduction of electricity and the internal combustion engine to Bermuda, inhabitants relied upon natural elements to work and survive. The discovery of crude oil and its initial use in the form of fuel oil and kerosene was quickly adopted in Bermuda. The first electrical generator, a 50 kilowatt gas unit, was installed in the City of Hamilton in 1907.
To address the modern challenges the Government created the Department of Energy in 2008, with a mandate to reduce fossil fuel dependency, maintain energy security and encourage greenhouse gas emissions reductions. The Department quickly took on these challenges through the publication of a consultation document on a national energy policy for Bermuda; the Energy Green Paper 2009. Feedback from this green paper was subsequently used to develop this white paper thus creating Bermuda’s first national energy policy.
A new white paper now provides a plan, which if followed, shall guide our small-island community to use energy in an increasingly sustainable manner. It promises a future not bound by fossil fuels, but one that is nevertheless bright and exciting, and aimed to also provide an excellent example to other small-island jurisdictions. Achieving the goals outlined in the white paper will however be extremely demanding, requiring nothing short of a national energy transition. Bermuda must quickly abandon the urge of jumping to identify problems it will face in meeting its goals and instead it must view each problem as a challenge, become innovative and search for solutions.
The Government has indicated that it will do its part by continuing to work with the private sector and non-governmental organisations as the policies outlined in the paper are implemented. Individuals and communities must also mobilise themselves to become more energy efficient and to harvest indigenous renewable energy resources. Working together with a shared vision will ensure progress is made for the benefit of Bermuda, her people and the natural environment on which we all depend. The government encourages the entire community to take any steps necessary to decrease fossil fuel consumption and thereby join this transition.
As a vulnerable small island community, the Government believes it is imperative for Bermuda to set a responsible example and has therefore adopted a goal of reducing emissions to less than 1 metric tonne CO2 equivalent per capita by 2050. The white paper outlines the critical first steps that must be made toward achieving this goal focusing on the shorter-term goals of halting emissions growth by 2013 and reducing emissions thereafter to less than 10 metric tonnes CO2 equivalent per capita by 2020; a 30% reduction in greenhouse gas emissions from 2008 levels. Prior to 2020, a new Energy White Paper will be developed to provide more specific guidance on the policies required to reach a subsequent target of reducing emissions 56% below 2008 levels by 2030.
Questions surrounding access to the electrical grid have been a recurrent theme over the past few years. The Government will address this uncertainty by introducing a legal framework that provides greater clarity surrounding the relationship between the incumbent electric utility and independent power producers. The planning of new electrical generation capacity, which has historically been performed solely by the electric utility, will also be subject to new legislation that will ensure it becomes a more inclusive process, involving the entire energy industry in the selection of a more sustainable future generation mix. The electrical delivery system must itself be upgraded to lay the foundation required to meet the 2020 targets as the technical capabilities of this system are key to implementing many vital solutions.
As the electricity generation industry diversifies, the Government will also ensure it does so in a safe and controlled manner. All power producers will be required to obtain generation licences and a comprehensive set of interconnection standards will be developed with the electric utility, while an independent regulatory authority will maintain regulatory oversight of interconnected entities. The building code will also be amended to include quality standards specifically for distributed renewable energy systems. To accelerate growth in small-scale renewable energy, an expedited planning process will be created and renewable energy resource data will be released to the public. Energy efficiency will play a leading role in meeting a target to reduce electricity consumption 20% by 2020. Minimum efficiency standards will be introduced to prohibit the importation of inefficient products to Bermuda, while consumer awareness will be increased through public education and mandatory energy performance labelling. Energy auditing will serve consumers by identifying both inefficient products and more cost-effective energy efficient replacements, while energy management will be promoted to ensure products are operated at optimal efficiency.
