Implementing renewable energy in Bermuda

Challenge

Bermuda’s Integrated Resource Plan (IRP), first published in 2020, set out the ambitious goal for the island to transition to 85% renewable energy by 2040. Energy mix diversification is to be achieved through a combination of new onshore and offshore power generation projects – the largest and most ambitious of them being a 60 MW offshore wind farm.

Although this then set a direction of travel, many questions were yet to be answered –from site location, connection routes, pricing, through to tendering process.

Solution

As a long-trusted advisor to the Bermuda electricity sector’s Regulatory Authority (the RA) we have been supporting with the following key activities:

Siting and pre-feasibility studies 

Leveraging our GIS expertise, we identified potential locations for the project, taking into consideration technical, environmental, practical and technological factors (see below). We considered both fixed foundations and floating options.

We identified potential interconnection routes, again taking into consideration not just technical (leveraging power system simulation capabilities) but also practical and environmental constraints.

Using our bottom-up CAPEX estimating tools, we produced detailed cost estimates for each location / technology type to inform future updates to the IRP and manage expectations in subsequent auctions. Our approach was mindful not just of industry-wide CAPEX benchmarks but also of the specific factors impacting the cost of commissioning such project in Bermuda, including higher workforce, freight and handling costs.

 * LCOE: levilised cost of electricity 

Procurement rules

We designed reversed auction rules, tailored to align and comply with the pre-existing legal and regulatory requirements, where we clarified key roles and responsibilities, the main steps of future auction processes, and appropriate governance frameworks.

Ongoing updates

In light of the vast-evolving nature of offshore wind technologies, we carried out several updates to the initial study to refine costs and technology options along the way.

Project and Risk Mitigation Plans

We produced a detailed plan to procure the project, from inception through to commissioning, highlighting key steps and activities. Recognising the unique nature of the project (relatively small capacity, in a hurricane-prone area, first of its kind in the region) we engaged with industry stakeholders to identify the main implementation risks perceived and elaborate a tailored mitigation approach.

Implementation of Risk Mitigation Plan

We currently oversee the implementation of the risk mitigation plan proposed, including public and industry engagement, the procurement of geophysical studies, and of a bankable wind measurement campaign.

Owner’s engineering services / Procurement advisory

We are the appointed technical advisor to the regulator for the appointment of the offshore wind developer. We designed tender documentation and are supporting with engaging with respondents and evaluating responses.

Customer benefit

Our pragmatic approach meant that there was a clear set of actions in place to make offshore wind a reality in Bermuda in the near future. Despite a vast array of factors to consider (from seagrass and other protected areas, through to difficult seabed topology, and aviation safety requirements) we were able to identify a promising location which gathered reasonable consensus across stakeholder groups. Our study even identified potential for an additional 60 MW of capacity if/when required by further demand growth.

Leveraging our industry knowledge, we were able to identify key risks early on and advise on effective but proportionate mitigation. As a result, developer engagement was excellent in the first round of auctions, and we look forward to concluding the process in the next 12-24 months.