Regulator taking a long-term approach to Integrated Resource Plan (IRP)
No, Mr Fahy – the Integrated Resource Plan, laying out Bermuda’s future energy strategy, is not late.
…so says the Regulatory Authority, citing that global practice for IRPs now favours a more long-term outlook.
Shadow Home Affairs Minister Michael Fahy recently stated that there is supposed to be an IRP every five years.
“You can’t make proper policy”, he said, “if the plans are not being followed and are not up to date or not being published on time.”
The 2019 IRP states that the Electricity Act requires that an IRP should be prepared and conducted “at least every five years”.
However, responding to questions from Bermuda Broadcasting, an RA spokesperson advised that there is no statutory deadline to produce the final IRP.
Long-term view
Expanding on the apparent change in approach, the spokesperson said a longer horizon is consistent with global best practice for IRPs – particularly in jurisdictions with limited land mass and high dependency on imported fuels.
“In alignment with this”, the spokesperson said, “the RA requested and was granted permission from the Minister responsible for Energy to issue the IRP request slightly beyond the five-year mark, allowing the utility to submit a more comprehensive 20-year proposal rather than the five-year minimum specified in the Act.”
BELCO’s IRP proposal was submitted ahead of the three-month public consultation period ending October 31st last year, with multiple energy scenarios and cost estimates projected as far as 2050.
The RA has acknowledged that incorporating additional data has impacted the IRP timeline, but states that it has enhanced the technical scope of the proposal.
The RA also requested more alternative generation proposals.
The initial consultation has concluded and is under review, we have been told. The RA will follow with a public consultation on the alternative proposals, and then further analysis before determining the “optimal generation mix before finalising the Integrated Resource Plan.”
All the same, the RA spokesperson said, they are working alongside all stakeholders to ensure the IRP is completed in a manner that is both comprehensive and timely.
