What is the IRP?
The Integrated Resource Plan (IRP) is Bermuda’s strategic tool for ensuring a reliable, cost-effective, and sustainable electricity supply. Approved by the RA, it invites proposals from BELCO and alternative energy providers, balancing costs, risks, and environmental goals for the island’s energy future.
The Integrated Resource Plan (IRP) is a strategic capacity planning tool approved by the Regulatory Authority of Bermuda to ensure a reliable, cost-effective, and sustainable electricity supply. The IRP aims to balance the future demand and supply of electricity, which is consistent with Bermuda’s energy policy objectives.
The plan asks Bermuda’s sole energy provider (BELCO) and any interested alternative energy providers to submit their best plans for Bermuda’s energy future, considering the conditions and criteria listed by the Regulatory Authority in the IRP Guidelines. In July 2024, the RA began the consultative process to progress the Island’s national electricity plan. During the consultative period, Belco’s proposal is accessible to the public for feedback, comments, and suggestions. Interested parties may also submit requests for alternative proposals.
The IRP is updated through an iterative process at least every five years to achieve a practical long-term plan for Bermuda’s electricity system. The entire process can take up to sixteen months. The IRP evaluates and balances the expected costs, risks, and electricity policy objectives. Some sustainable technologies highlighted in Belco’s 2019 IRP included small-scale and utility-scale PV systems, offshore wind farms, and waste-to-energy systems.
Various assessments are carried out before implementing any new energy-generating technology on the Island.
The aims of the IRP are to:
- Approve the lowest cost, or otherwise most appropriate, electricity capacity expansion plan that meets demand at the lowest overall cost and with acceptable levels of system reliability and implementation risk to consumers;
- Assess the economic, environmental, and social implications of adopting alternative capacity expansion plans to be able to determine the optimal trade-offs contained in Ministerial directions;
- Evaluate the merits of applications by prospective IPPs or other licensees, as well as other proposals that contain deviations from the IRP, by calculating their benefits, costs, and risks to the electricity system.