The island’s government is expecting to complete the purchase of Sark Electricity Ltd, and to effectively ‘nationalise’ the company, by the end of the year.
Conseiller John Guille, chairman of the island’s Policy & Finance Committee, said that the compulsory purchase of the company had now reached an approach to the island’s court to agree to the method of valuation and then for that to be carried out.
Once under government control, Conseiller Guille accepted that expert advice had been received that the island’s whole grid may need to be replaced.
‘Absolutely, the £1.5m. [loan from Guernsey] is for the purchase and the immediate safety work. It’s not for the replacement and overhaul. We’ll probably invest in two new generators, and sort out the earthing system on the island, which is known to be a problem.
‘All the switch gear will be gone through, but we are not going to be replacing the grid with that £1.5m., that is more like a £10m. project.’
Conseiller Guille added that specialist consultants have advised Sark to adopt a totally different electrical generation strategy.
‘The optimal solution they arrived at for Sark was about 80% renewables, including two wind turbines and three and a half acres of solar. So you run the diesels for about 20% of the time because otherwise you would be spending a lot of money in batteries,’ he said.
‘As well as the environmental benefits I think switching to renewables would also bring massive reputational and marketing benefits for Sark.’
Sark’s electricity is currently some of the most expensive in the world, but here too the P&F chairman insists that moving towards renewables could help.
‘It is the only way we are going to move the dial on electricity costs. We are not going to make electricity cheaper by continuing to bring diesel to the island.’
Conseiller Guille is assuring current SEL employees that their jobs are safe, describing them as ‘key assets’. He said that, despite the price tag, the project was an exciting one for Sark.
‘It’s projects like these that are going to move the dial on Sark’s future and stimulate economic growth. One of the hardest things about running a business over here is your utility costs.’