Sark Energy Unlimited has been announced by Scotland-registered Island Power, which described the new entity as a ‘partnership company’.
It is proposed to bring together energy users, investors and professional services providers ‘from Guernsey and beyond, which maintains Sark’s autonomy while maintaining “best practice” in procurement standards’.
It is proposing to give a three-year commitment to lower the cost per unit of electricity in the island, which is currently among the highest in the world at 56p per unit, to 30p (based on current diesel/fuel price and service costs and the company’s announcement points out that prices can go up and down and will be subject to interest rates).
Sark electricity users will be able to take out an ‘energy loan’ and invest in the three-year development project in order to receive an energy return on their investment upon completion in the form of a reduction in the price.
‘Achievement by the SEU development consortium of a target cost of £0.30 per kWh within 36 months enables a return in the utility value of energy,’ said the Island Power statement.
SEU is set to use an energy strategy developed in Denmark to minimise the use of fossil fuels. ‘The outcome will be a “Sark Natural Grid” of the most energy efficient micro-scale renewable technologies supplied as a service.’
‘Resilience is central to Sark Energy Unlimited,’ said Island Power partner Chris Cook.
‘We’re not just talking about renewable energy, but a holistic system designed to withstand external shocks – whether economic, environmental or technical.’
Mr Cook explained that Island Power entered into an acquisition agreement with Sark Electricity Ltd in November last year which is currently in the final stages of due diligence ‘and is naturally subject to Chief Pleas taking a different funding path’.
It has followed Chief Pleas closely and since 2018 had engaged with Guernsey Electricity as a potential service provider partner (not a financier).
‘We felt the time is now ripe to propose our collaborative finance solutions,’ said Mr Cook.
Representatives of Island Power will be in Sark on 26 April to talk to conseillers about their proposals.
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