WATCH: P&R sets aside £1.3m to progress wind farm opportunity

The committee wants the States to back the investment of £1.3m. over two years to progress the idea.

Its report uses a ‘base case’ of an area of 157sq. kilometres, which represents about one quarter of the area that could be used to provide power that could then be exported to the UK. Research carried out on behalf of the sub-committee showed that, assuming this area had a capacity of 1.27 gigawatts, it could yield £1.3bn over a 35-year period, or about £40m. a year.

P&R’s report said that an alternative to this would be to take an up-front amount of £300m., to be shared between the States and its chosen developer.

• Watch: Mark Ogier spoke to offshore wind sub-committee member Deputy Carl Meerveld

An ‘arms length’ body is being suggested to oversee delivery of the project, and the States is being asked to approve an investment of £1.3m. over two years. The money has already been set aside by P&R.

‘We’ve done the first two phases. This is a continuation,’ said sub-committee chairman Chris Blin.

‘The continuation of this will lead us to phase four, where we will be actually getting to market, to actually make this happen and get to the returns from the wind farm and that’s going to need a body to be set up to then deliver the project.’

Consultants the Climate Trust, PA Consulting and engineers Ramboll have been taken on, with the engineers coming up with the £300m. ‘net present value’ figure.

‘There’s substantially a larger area available,’ said Deputy Blin. ‘So that figure could range from £300m. to £700m.’

Committee member Carl Meerveld said the policy letter from P&R was to inform the States and the public of the direction of travel, since the money had already been allocated.

‘Unlike a lot of government investments or expenditure, this is an investment that’s aiming to make a return actually earn money for the States, as opposed to a lot of money we put into planning things that we often don’t proceed with.’

P&R’s report clarified the income that could be anticipated.

‘The overall financial benefits to the States of Guernsey could comprise of a lease exclusivity payment ahead of delivery of the wind farm, rental income over a period of up to 35 years, and tax revenue.’

Much of the cost of development would be met by a developer, not the States, with P&R saying the preferred approach would be to carry out a competitive process to find a partner with steps put in place to ensure progress.

Deputy Bob Murray was one of the committee’s representatives on the offshore wind sub-committee and urged people not to look at this as being the answer to all of the island’s financial challenges.

‘However, the initial phases of work indicate there may be substantial value in leasing a section of seabed in our territorial waters and we won’t know for sure unless we carry out this next phase of work.’

If approved by the States, P&R will be directed to come back by the end of next year with a commercial leasing agreement, terms and a preferred bidder.

The earliest turbines would be erected is likely to be the early 2030s.