En Voyage_Issue#14_Flickbook

Business
ENERGY IS EVOLVING
Alan Bates, Chief Executive of Guernsey Electricity, explains
the need for affordability and security of electricity supply
amidst the changing energy market.
It is claimed that the world
of energy is changing more
quickly and more fundamentally
than at any point since the
Industrial Revolution.
With the uptake of electric
vehicles and other developments
in technology, from a smarter
grid to energy storage as well
as micro and macro forms of
electricity generation, such as
solar power, the lines between
energy producers and energy
consumers are becoming less
clear. We are increasingly seeing
GUERNSEY IS NOT
ALONE IN KEEPING PACE
WITH THE CHANGING
ENERGY WORLD
a collective of ‘prosumers’ who
both produce and store electricity,
whilst also intermittently
consuming from the grid. The
rapidly improving economics
of renewable power supported
by the growing prospect of
cost-effective electricity storage
has been hugely influential
to the change. Moreover,
commentary on energy transition
is concluding that these changes
are enabled by technology and
government policy, but are
driven by social imperative. The
pace of change may therefore
be a lot faster than historic
precedent in the energy world.
Given the importance
of the electricity sector to
our functioning society,
there is an urgent need to
ensure the transition into the
future is smooth, affordable,
effective and delivers the best
outcomes for Guernsey.
To achieve this, a complete
review of the structure of
customers’ bills is critical to
ensure that everyone, the ‘selfgenerators’
and those who rely
solely on Guernsey Electricity’s
services, pays fairly and equitably
for their use of the electricity
infrastructure. Continuing with
the existing structure of bills,
created in 1993, puts customers
at risk of increasing prices to
cover the costs of those who
generate their own electricity
but still rely on the grid for
backup. Moreover, changes
in the energy market must be
understood within the context of
any new policies on energy and
security of electricity supply.
As the States of Guernsey
develops its energy and
environmental policies, which
will inform renewable energy
targets over the next five years,
our community must be heard to
ensure affordability of utilities is at
the forefront of decision making.
Early policy direction for the
island, including environmental
aspirations, will also be pivotal,
especially in setting the direction
for future infrastructure
investments in the power, heat
and transport markets. This
direction will be instrumental
to what will be Guernsey
Electricity’s largest ever capital
investment, a proposed second
subsea cable direct to France,
to increase Guernsey’s access
to affordable, low-carbon
electricity and improve security
of supply for the island.
Guernsey is not alone in keeping
pace with the changing energy
world; other countries in Europe
are also making significant strides
to ensure policy aligns with these
changes. In many European
countries the use of coal for
power generation is being phased
out by government intervention,
the use of hydrocarbons in
transport is being reviewed with
targets set for phasing out of
petrol and diesel vehicles, and
most countries are installing large
levels of renewable generation,
with the first few non-subsidised
projects planned. It is clear that
there is much we can learn from
our European counterparts.
Therefore, the island and
Guernsey Electricity must keep
pace with the significant changes
in the energy market to protect
customers from being on the
receiving end of unfair and
higher than required utility bills.
We should continue to strive
towards supplying low-carbon
electricity from renewable sources
in Europe and on-island solar
power, securing the island’s
electricity supply and reducing
our reliability on harmful fossil
fuels. However, early policy
direction from the States is
fundamental to such investments
and how we progress as an island
in the future energy world.
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