Industry leaders spoke on the islands pressing energy transition needs at an Institute of Directors (IoD) breakfast yesterday, agreeing that “visionary policy” from government is vital to direct energy providers and the community towards decarbonisation.
Wendy Dorey, Chair of IoD Guernsey, opened the event at the OGH hotel by arguing that geopolitical events which “people have never seen before” are accelerating questions around energy resilience, strategy, and supply.
The panel included Alex Herschel, Managing Director at Guernsey Gas; Alan Bates, Chief Executive at Guernsey Electricity; and Justin Bellinger, Chief Executive at Sure in Guernsey.
There was consensus from the panel that government regulation on energy, whilst welcomed, must be suitable for the future.
“Regulation can’t work in a void from government,” said Mr Bates, whilst Mr Bellinger said “policy is vital, it must point to decarbonisation but can’t stifle innovation”.
He added that this can only come from “visionary policy” delivered by the States of Guernsey.
Mrs Herschel said “government should direct consumer cost saving initiatives” such as better household insulation and efficient home appliances, to encourage a reduction in overall energy consumption.
“We must ask what we can achieve quickly,” she said.
Pictured: The panel spoke to members of the IoD on Thursday morning.
Mr Bates also argued that a 2019 PwC report demonstrated that “just relying on the market will not deliver the energy transition required,” stating it is therefore essential to provide adequate policy.
All three leaders agreed that a portfolio of sustainable options is needed to accomplish legally binding net-zero targets.
Mrs Herschel also said that whilst domestic energy production is a “positive thing” and part of the solution, “fossil fuels are essential for the transition to net zero,” adding that there should not be a “cancel culture” around those fuels.
Mr Bellinger highlighted that the current situation for the energy sector has many parallels to the experience of the telcos some decades ago.
He said this is borne out of a change in demand to the network infrastructure: “It’s the same infrastructure – but there are different demands… so you’re forced to approach it in a different way."
He added that the installation of fiberoptic broadband across the island represented the “final shift of changes” in the domain of telecommunications – moving to a more decentralised approach.
Mr Bates echoed the need for decentralisation in the future energy system, arguing that cooperation between the energy sector and the telcos in respect of smart homes is essential since the “traditional model is really changing”.
He said this can be achieved through greater use of broadband and Internet of Things devices, since only meeting more demand with more infrastructure is unsustainable.
Pictured: The panel agreed that myriad solutions are required to achieve net-zero
Mr Bates said the island’s future energy needs “will determine the future of the power station,” which currently supplies 6% of Guernsey’s energy as a back-up and top-up service.
“Everyone in the community must understand the complexity of the journey, we are all going on together,” he said as he argued the global lack of investment in grids, coupled with the pace of change, has caught many “by surprise”.
Pictured (top (L-R)): Justin Bellinger, Alex Herschel, Alan Bates, and Wendy Dorey.
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