Investors there to support flexible electricity strategy
GUERNSEY’S proposed electricity strategy was sold to States members yesterday as a ‘starting gun’, which would release pent-up demand from investors in renewable energy, increase security of supply and save hundreds of millions of pounds between now and 2050.
Environment & Infrastructure president Lindsay de Sausmarez warned members that there was no option that did not involve a very large bill, as the engines at the power station were nearing the end of their use and will need replacement.
Additionally, demand locally is expected to increase over the next 27 years from a peak of 60MW to a peak of 157MW, necessitating significantly more investment.
Specifically, she attempted to ward off any challenge of a lack of focus on renewables by stressing that the strategy had the flexibility to ensure no new opportunity was overlooked.
E&I did not need any new resource, she said. ‘We just need the starting gun in the form of an agreed strategy.
‘The energy industry and private investors are raring to go in this respect. There is a lot of pent-up demand.’
Deputy de Sausmarez admonished some of her fellow States members and media for portraying her committee’s favoured
option – listed as option D in
its policy letter – as a choice that will cause an extra spend of £1.7bn.
This was the total value of the electricity that would be supplied to Guernsey Electricity customers up until 2050, which would be met by customer charges, she said.
The option actually represented a saving of £200m. in that period, when compared to continuing with current policies, she said.
Despite this, she said cost considerations were not the only criteria employed in recommending the option. Security of supply and energy independence were also best served by the committee’s favoured option.
Environmental impact was also considered, but had not been given a high priority in the committee’s assessments.
Currently, 7% of the island’s electricity is generated locally with diesel, using engines that have to be kept warmed and ready to be fired up in case of a failure of the cable link to France.
If current policy was not changed, this would mean having to increase local capacity, which would be wasteful.
‘Guernsey is in a pickle and we need a strategic plan,’ she said.
An optimum wind energy supply of 65MW had been identified, which could be achieved through a number of small arrays or via a share of a larger one, while solar energy was also to be pursued.
Tidal energy, by contrast, the committee considered was not yet proven to be commercially viable.
Any future arrangements which required the taxpayer to act as guarantor would come back before States members, Deputy de Sausmarez assured them.
