Why the Policy Was Updated
The NESP 2015 set a target of 38% renewable electricity generation by 2035. A subsequent Integrated Resource Plan (IRP), approved by the Regulatory Authority in 2019, raised that ambition to 85% renewables by 2035. Since then, the rapid growth of rooftop solar (distributed generation, or DG), rising fuel costs, and a shrinking base of grid-purchased electricity have placed sustained upward pressure on tariffs - a burden felt most by customers who cannot install their own solar systems.
The NESP 2026 responds to these lessons. It moves away from fixed renewable energy targets and instead requires every investment, whatever the technology to be tested for its contribution to lower costs, reliability, and system resilience through the Integrated Resource Planning process.
Bermuda's 2045 Vision
The Policy commits Bermuda to an electricity system that is reliable, affordable, equitable, and lower-carbon by 2045. This vision rests on several core principles:
- Affordability: the 2025 average retail tariff serves as the reference point for tracking long-term cost stability.
- Reliability: the grid must meet or exceed internationally recognised reliability standards.
- Equity: customers who rely fully on the grid must not bear an unfair share of system costs as distributed generation grows.
- Least-cost planning: all generation and grid investment decisions are tested through the IRP process.
- Technology neutrality: the Policy does not favour any single technology (solar, wind, LNG, storage, or otherwise); all options are assessed on cost, reliability, and resilience grounds.
How the Electricity Sector Is Structured
The sector involves several distinct bodies, each with defined responsibilities:
- The Ministry responsible for Energy: sets policy direction and provides strategic guidance to the sector.
- The Regulatory Authority (RA): the independent regulator responsible for tariffs, licensing, service quality, and approving the Integrated Resource Plan.
- The Transmission, Distribution & Retail (TD&R) Licensee: the utility that delivers electricity to customers.
- Independent Power Producers (IPPs) and BG Sole Use Installations: entities licensed to generate bulk power.
- Distributed Generators: homes and businesses with their own rooftop solar or similar systems.
- Community and Cooperative Energy Models: a new licence class enabling shared ownership of renewable projects for those who cannot install their own systems.