Island's future up for debate

Wednesday 20 May 2020

This month's virtual States meeting gets underway today, with plans for Guernsey to become carbon neutral within the next 30 years on the agenda.

The long awaited Energy Policy, put together by the Committee for Environment & Infrastructure, sets out a number of long term aims for the island.

Along with a target of net zero emissions by 2050, the policy letter asks deputies to agree an interim goal of reducing emissions by 57% in the next ten years.

If the policy is agreed, one of the main investments will be a second electricity cable linking the island with the European grid, therefore lessening the need for diesel generators to operate.

Environment & Infrastructure will also look into generating renewable energy locally, with directions to begin a consultation on a licensing framework for targeted competition. But, these plans have raised concerns for the States Trading & Supervisory Board, which carries out the States' role as shareholder in Guernsey Electricity.

Pictured: Diagram explaining E&I's Energy Policy.

"Looking specifically at the electricity sector within the wider energy supply market, the STSB has previously made clear to you its concerns that there is insufficient evidence currently available to support competition in both the electricity supply and generation markets," the board's President, Deputy Peter Ferbrache wrote to E&I. "A key concern is whether the costs of the regulation that will be required to enable a competitive market will be outweighed by the benefits."

However, the Islands Energy Group has spoken out in favour of the Energy Policy.

“IEG is ready to bring significant investment into the island, promoting renewable energy schemes, and we have several medium-to-large potential investment projects as well as many small domestic schemes," said Group Managing Director, Ian Plenderleith.

Pictured: Deputy Peter Ferbrache of STSB voiced concerns about the plans.

"We believe strongly that competition should be promoted and IEG is ready to invest. However, for our customers to be able to buy our local renewable energy from our larger schemes, the existing conveyance network needs to be liberalised and the exclusivity removed from the incumbent operator at the earliest opportunity.

"The STSB wish to maintain and extend Guernsey Electricity’s exclusivity to the conveyance network and this goes against the Energy Policy’s fundamental principle of promoting competition and choice in energy and working towards a low carbon economy. It is yet another proposed barrier to entry to the market.

"IEG is ready to invest in generation projects at no cost to islanders and so providing choice and competition. This effectively will democratise the energy market, empowering the customer to make their own energy decisions built on a solid Energy Policy."

Pictured: President of E&I, Deputy Barry Brehaut.

The policy is based around four 'pillars' which it hopes to address:

• Managing and supporting change in the energy market in line with global efforts to reduce emissions
• Allowing for an open energy market with all suppliers having shared responsibility for security
• Facilitating a competitive energy supply market using shared critical infrastructure as appropriate
• Establishing a secure supply platform as an enabling factor for the growth of renewable technologies

It will be debated in this week's virtual States meeting, which can be streamed here.

For further information on the Energy Policy click here.