Bermuda’s Power Grid and Its Function
Bermuda’s electrical grid ensures efficient power distribution with high accessibility and quick restoration post-disasters, but it faces challenges with high costs and investment needs for renewable energy solutions.
The electrical grid in Bermuda allows power to be efficiently distributed across the Island. Similar to North American infrastructures, it includes power generation, transmission, and a distribution network.
There are many pros and cons to the electrical supply in Bermuda. Accessibility and quick restoration post-natural disasters are favourable, but the overall cost of fuel and operations can be pricey. Island nations can pay up to three times more for electricity than our American counterparts, according to a report released by the Atlantic Council. The report also explains, while the transition to renewable energy is a solution to the quality of electricity in the Caribbean the initial investment required is predicted to be around $5 to $7 billion.
In Bermuda, access to electricity is at 100 % according to World Bank Data Collection. This means all inhabitable structures are equipped to connect to the island’s electrical grid, and the majority of the population has electricity, which is uncommon in some small island nations.
Furthermore, the main difference between Bermuda and other Island nations is that the island does not experience blackouts or power outages (scheduled or otherwise) on a regular basis. Lack of upkeep of power plants and ageing facilities is predicted to make electrical supply less reliable, which showcases the importance of investment within the energy sector.
Hurricane seasons do present some unique challenges. However, BELCO has historically acted swiftly to provide Bermudians with electricity following bad weather and has been recognised internationally by the Edison Electric Institute (EEI) for its restoration efforts.
It has been documented that in other small nations, it can take weeks for grids to be restored following a natural disaster. An example of this would be the devastation caused throughout the Caribbean by Hurricane Maria. The severe winds went on to destroy government structures and left communities without electricity for up to 4 weeks.
According to William Russel, a UK-based insurer, “Electricity generation tends to be more difficult on the Island.” This statement was released following a report exposing why Bermuda was the most expensive place in the world to run appliances.
The article released in 2022 also attributed the Russia war and cut off of gas to some European countries as the reason for a price spike.