PROJECTS

Reforming Bermuda’s Electricity Sector Overhaul

The problem

Bermuda’s electricity sector regulation was old and lacked mechanisms to ensure least-cost investment and dispatch of generation and development of renewable power generation.

How we helped

Castalia led a team that helped Bermuda to reform its electricity sector. We drafted a new National Electricity Sector Policy (approved by Cabinet in June 2015) that set a transparent planning and procurement process for new generation investments; defined a framework for distributed renewable generation; and encouraged energy efficiency with a mix of utility and private sector investments. We assisted with drafting the new Electricity Act (approved by Parliament in 2016); developed licenses for generation, transmission and distribution; and prepared tariff setting rules. We also rationalized the fiscal regime for fossil fuels to reflect the government’s policy to reduce emissions. We drafted a fuels policy (approved July 2017) and action plan; prepared drafting instructions for a Fuels Bill; and completed the licensing framework for fuels-related activities. We then helped Bermuda procure its first ever large-scale renewable energy project, a 6MW privately-financed solar PV plant up to commercial and financial close, and completion of construction for commissioning.

Impact

Bermuda has completely modernized its energy sector regulation, completed its first Integrated Resource Plan, and procured its first renewable energy generation plant.