Government hints at a ‘more gradual’ transition to renewables

Government has granted itself more power over the electricity sector.

In taking that action, it implies a change to previous “aggressive” targets for the transition to renewable energy.

An amendment to the Electricity Act, passed on Friday, means the Minister of Home Affairs can step in to a process previously held between the Regulatory Authority and an electricity provider, such as BELCO.

The Minister can now suspend, for up to two years, the process to formulate the next Integrated Resource Plan, or IRP – the blueprint governing Bermuda’s energy future.

Alexa Lightbourne, the Home Affairs Minister, cites this move as part of an effort to lower energy costs for Bermudians.

She argues that the previous structure has limited Government’s power to ensure affordability is considered in the IRP process.

The Minister said, “this government was elected in 2025 on a mandate of equity and tangible progress. The price, the reliability and the fairness of electricity sits at the center of that mandate…

“Under the current framework, the Integrated Resource Plan is authored by the utility. We know that the utility is a commercial enterprise… and plans accordingly to its commercial interests. The regulatory authority then refines what the utility submits in consultation with the government’s policy. And the government, which promised the people relief and a better standard of living, holds a responsibility without the statutory means… Three entities, three different objectives…

“It should be declared that none of these institutions has acted improperly. The structure itself produced the misalignment, and this bill corrects it by ensuring that regulatory accountability also considers the public interest.”

Members of the Opposition One Bermuda Alliance commended the aim to reduce energy costs for Bermudians.

However, Dwayne Robinson, Shadow Minister of Home & Community Affairs, cited that affordability is already a part of the electricity act, and questioned if any suspension of the IRP process could lead to higher costs for the taxpayer.

He added that this act is “ministerial overreach, though with good intentions”, and may spook investors by giving the appearance that the independent Regulatory Authority may “not be as separated from government as reach as it should be”.

Scott Pearman, Deputy OBA Leader, reaffirmed that the OBA is instead in favour of giving the Regulatory Authority more power over the electricity provider.

Michael Fahy called for the Minister to explain what Government is planning to do with its new powers in the immediate future.

He asked, “how quickly after this bill passes, will the Minister issue an order or a directive pursuant to the act?…

“Which parts and for how long?… she should also explain how any potential directives or orders that she’s going to give to reconstitute or suspend the IRP is in the public interest.”

Minister Lightbourne cited that much has changed since the Electricity Act was passed in 2016 – including the sale of BELCO to a foreign entity.

Responding to Opposition questions, the Minister also indicated that previous IRP timelines to transition to renewables may be unrealistic and costly to pursue…

“The electricity sector policy of 2015, which is currently the approved government policy, has aggressive 85% renewable targets for energy transition in Bermuda… 2035 targets. And we are just short of of 2035, with not having made material progress towards that 85% targets.”

“To proceed with a target with such an aggressive transition means that the cost relating to reviews, research, technological viability studies – all will be done under a confined timeline, which will all be compounded, and at the cost of the ratepayer.”

“What the energy policy… that is being proposed seeks to rightsize [is] a transition that is more gradual in our context, that does not compromise our energy targets, but rather says ‘due to where we know that we are now… these targets ought to be reconsidered.”