National Energy Policy Inclusions

Please review the attached redline document in addition to the text below:

The world is changing rapidly: geopolitical conflict, shifting trade relationships, rapid technological change, and resulting volatility are placing strain on global energy systems and intensifying competition for resources, investment, and supply chains. More recently, consumers are being buffeted by energy pressures, exacerbating the affordability squeeze.

Major economies are moving decisively to strengthen their electricity systems, which are critical to economic growth, energy security, and long-term competitiveness. China is investing in clean technology and grid expansion at an unprecedented scale and now leads globally in manufacturing electricity technologies. Europe and Canada are making substantial investments in electricity systems, including new generation and major upgrades to transmission and distribution networks. Traditional energy exporters like the United Arab Emirates and Saudi Arabia are also diversifying, investing heavily in clean electricity.

Access to abundant, affordable, and reliable electricity is – more than ever – fundamental to competitiveness, energy security, and economic sovereignty. It shapes where investment flows and influences where industries decide to locate. It defines how productive economies can be.

It also drives critical progress towards climate goals. Mass electrification, advanced in a way that balances reliability, sustainability, and affordability, will enable Bermuda to drive down economy-wide emissions in the most cost-effective way.

Now more than ever, a coordinated effort is critical to sustaining the strong foundation that underpins Bermuda’s economy and its climate ambitions.

A new NESP should establish the following targets:

~30% Renewable energy penetration by 2035. ~70% Renewable energy penetration by 2050. These targets are in line with targets of peer countries. Global trends in cost declines of renewable energy technologies, including solar and storage, point to the viability of meeting these goals.

Private & Light-Duty new vehicle sales & imports ~30% from EVs by 2035 & ~70% by 2050. Heavy-Duty new vehicle sales & imports ~30% from EVs by 2035 & ~70% by 2050. Many US states have made commitments to achieve a full transition to zero emissions vehicle sales in all categories by 2040. The NEP should recommend a slightly longer timeframe to achieve >70% new EV sales to allow time to implement policies to meet these targets.

Electricity Supply ~30% emissions reduction over 2020 levels by 2035. ~50% emissions reduction by 2045. Ground Transportation ~35% reduction by 2035 ~70% reduction by 2050. The revised emissions targets should be absolute instead of per capita reduction, with the goal to eliminate ~70% emissions from electricity supply by 2050. Overall economy-wide emissions targets, including those of the transportation sector, should be included in the forthcoming Climate Change Policy revision.

Companies such as Liberty Power (BELCO) should use their parent company's expertise (Algonquin Power) in other generation fields to leverage growth within Bermuda's electrical grid and look to enhance emissions reductions strategies while maintaining a safe, stable, efficient and cost-effective grid on island. This starts with the implementation of LNG for use in their duel fuel engines to reduce emissions upfront significantly. The Government of Bermuda owes it to the people of Bermuda to open the door to cleaner fuel alternatives for fuel generation. The leveraging and enhancement of the Tynes Bay Waste to Energy Facility should be reviewed as it can play a critical role in supplementing the island's critical electricity supply by becoming a base-load generator.

A critical role of Ministry of Home Affairs is to conduct periodic reviews and evaluation of the NESP to ensure that, even as the Policy is being implemented, it is having the desired impacts and achieving the strategic aims. The factors that the Ministry of Home Affairs will determine are any externalities that may affect Bermuda in achieving the strategic aims and to recommend appropriate mid-course changes; to assess local factors (for instance a once critical strategic aim may no longer be relevant or practical); or a key stakeholder view may influence the need for a review. The Ministry of Home Affairs may, informed by outcomes of the various stages of monitoring, review, and evaluation (including a bi-annual review), recommend changes in the Policy to Cabinet. This reflects the determination to ensure that mechanisms are in place to respond to changed circumstances, new technologies or the emergence of new organisations/stakeholders and therefore assure that the Policy and strategies remain relevant.

A sustainable, climate-resilient future for Bermuda starts with transforming our energy sector. Now more than ever, a coordinated effort is critical to sustaining the strong foundation that underpins Bermuda’s economy and its climate ambitions.