Hard questions need answer
HOW do we keep the lights on without killing the planet? In jargon, it’s called the energy transition – putting sustainability at the heart of the production, distribution and use of energy – as countries decarbonise to mitigate climate change.
But having mapped out the destination, how do we get there? Steps have already been taken, such as a coming ban on the sale of new combustion engine vehicles, to encourage a switch to electric cars.
But challenges remain, particularly in ensuring social equity. Think heating, a substantial part of which is hydrocarbon powered. There may be more outlay initially on more efficient heating systems but better environmental returns. How do you encourage take-up?
Electric vehicles are currently more expensive than equivalent combustion engine models. It’s hoped prices will fall, but how do you bridge the gap for who cannot afford EVs? It’s fantastic that those who can invest in solar panels have done so, but what about those who cannot?
There are options. Hope for the best and leave it to the market. Or state intervention in one form or another to accelerate change. When it comes to innovation, market forces have extraordinary power. But Guernsey is a small island, so competition may be more targeted. Overlay that with the need for energy security.
Could Guernsey Electricity be the vehicle to drive the energy transition in the most cost-effective way for consumers and taxpayers? It is state-owned but commercialised. It already has plans drawn up, has developed community solar projects, and operates the grid and the power station. This paper takes no view on this, but merely asks the question to stimulate debate.
But alongside that, consideration would need to be given to potential implications. If the state intervenes to decarbonise the economy, what does that mean for businesses built on fossil fuels? If grants are provided, for example, for non-hydrocarbon boilers, would firms negatively affect require compensation or just have to evolve? Could the energy sector work together?
Would it be equitable to give grants to homeowners for energy efficient measures, potentially increasing the value of their properties, while renters see no such financial benefit while helping foot the bill? Or is the environmental benefit ultimately worth it with very targeted measures?
They are all hard questions that require hard solutions sooner rather than later if Guernsey is to navigate the energy transition.