Over the past decade, BELCO has submitted numerous energy plans and consultation documents for consideration and approval by the various Government Administrations and regulatory bodies. Without achieving the necessary permissions, we were unable to proceed with the infrastructure upgrades and replacements. As a result, we now find ourselves and the Country at a major tipping point. The following chronology provides the details of the various actions BELCO has undertaken since 2005.
HOW WE GOT HERE
East Power Station Phase 4 (E7 & E8) commissioned
Electric System Discussion Document (ESDD)
Electric System Discussion Document stakeholder consultation
BELCO submits “Central Plant Development Plan” to the Planning Department
No permission received for “Central Plant Development Plan”
BELCO submits Special Development Order Application for emergency/peaking gas turbines
BELCO issues Large Scale Renewables Solicitation Of Interest (SOI)
Government releases Energy Green Paper
Special Development Order Application for emergency/peaking gas turbines granted
Emergency/Peaking Gas Turbines (GT6, GT7 & GT8) commissioned
Government releases Energy White Paper
BELCO develops “New Energy Equation Plan” and submits planning application for phased redevelopment of its Central Plant (North Power Station)
Received final planning permission for North Power Station
BELCO negotiates engineering, procurement and construction contract for North Power Station
Energy Commission rejects North Power Station tariff increase
BELCO develops “Integrated Resource Plan” (IRP)
Government releases National Electricity Sector Policy
- Least cost and high-quality electricity service that is delivered at the lowest possible financial cost, without compromising safety standards or failing end users’ expectations for reliability and customer service;
- Environmentally sustainable electricity service that, over time, does not cause economic harm to Bermuda’s sensitive natural environment or cause economic harm to the global environment;
- Secure electricity service that is provided using a mix of primary energy options that are procured from reliable sources and under terms that make Bermuda resilient to shocks (such as dramatic changes in the availability or price of fuels, or the introduction of binding commitments to reduce greenhouse gas emissions); and
- Affordable electricity service that allows all Bermudians to pay for at least a basic supply, while preserving (where cross-subsidies for ensuring basic supply are involved) the competitiveness of Bermuda’s productive sector.
Replacement generation at BELCO needed
BELCO 2016 IRP submitted to the Energy Commission – No decision made
Electricity Act comes into operation
Establishment of Regulatory Authority (RA)
BELCO submits “Capital Plan” to RA
RA Consultants tour BELCO plant and report to RA
There has been no further discussion of the Capital Plan
Impact of Delay
Analysis has shown that by not constructing the new power plant in 2012 for an estimated $72M, an additional $80M has been spent on fuel costs, repairs and maintenance associated with operating the older, less efficient generating units. Some of these generating units will be over 40 years old at their revised retirement dates due to delays in approvals.
BELCO considers the Capital Plan to be a matter of national importance for Bermuda as BELCO cannot ensure reliability of electricity supply without its timely implementation. In keeping with BELCO’s intended schedule for retirement of generators, a decision must be reached in respect of the Capital Plan immediately.