Outlook

Back in 1990, in an effort to tackle global warming, international leaders set an objective to reduce global carbon emissions. Thirty years later, the concentration of carbon in the atmosphere continues to grow along with average global temperatures, increasing the frequency of extreme weather events and repeated environmental crises. Whilst there is rising frustration and impatience, the scale of international commitment to the decarbonisation agenda has never been greater.

That momentum is now emerging in Jersey. The Island declared a climate emergency in 2019 and has had its first Citizens’ Assembly seeking Islanders input on the issue, followed by an in-committee debate in which the States Assembly considered the Assembly’s findings. Civil servants have been translating ideas into a Carbon Neutral Roadmap and policy recommendations for formal debate by the Assembly in early 2022 – it is hoped – before the June elections.

Whilst there is some uncertainty around where Jersey will settle in terms of ambition and associated policy, it is widely viewed that an ambition of net-zero by 2050 is the minimum acceptable for a relatively wealthy island like Jersey to be able trade into UK, EU and international economies.

Community engagement

Jersey has delivered a strong performance on carbon reduction over the last 30 years, reducing emissions by more than 30%. This has largely been delivered directly as a result of JE’s importation strategy and the decarbonisation of the electricity grid. Now that the grid is virtually completely decarbonised, the only way the Island can reduce emissions further is by stopping the burning of fossil fuels, oil and gas. The challenge has now shifted to one requiring full commitment and engagement of the whole community.

Unfortunately, weak policy support has meant that the Island’s decarbonisation progress has slowed. We remain hopeful that the Government will acknowledge this and get back on track. We would like to see an ambition more challenging than net zero by 2050, reflecting our belief that Jersey could deliver a zero-carbon future faster and more cost effectively than virtually anywhere else – greatly helped by the spare capacity of a well invested and decarbonised electricity grid and the fact that Jersey has no heavy industry and short travelling distances. All the solutions for Jersey are available – we need to find ways to incentivise them and deliver them.

We believe that Jersey can rise to the opportunity of becoming a ‘zero-carbon smart Island’, repositioning and differentiating itself internationally as a progressive, sustainable, technology showcase that is willing to take responsibility in all the sectors in which it participates. Whatever the policy objective, Government will need to make tough decisions and take bold actions with increasing urgency before Jersey completely loses the advantage it has gained.

‘A force for good’

While the policies the Island will take present some risks for Jersey and Jersey Electricity, with a particular risk arising from the threat of regulation, which evidence from elsewhere suggests will lead to poorer services and higher priced electricity for Islanders, the Company remains well positioned to be a ‘force for good’ in Jersey helping to ‘enable life’s essentials and inspire a zero-carbon future’.

There will for sure be challenges and some risks ahead, but Jersey Electricity promises to have an important role in assisting the Island in its efforts to decarbonise and, we hope, become an international showcase of what is possible.

Our business model, with a prudent, long-term focus, has greatly helped the business weather the storm of COVID-19, the increased political tensions from fishing - to which we have responded by developing further contingency measures - and the recent energy market disruption in UK and Europe. Our core services have remained resilient across all three trilemma dimensions of affordability, security and sustainability.

The recent market failures in the UK illustrate the downsides to regulation and competition, leaving customers exposed to riskier supply chains, power shortages, price increases as well as supplier bankruptcies.

Focus on the future

With the stability and protection afforded by Jersey Electricity’s business model and strategy, we have been able to maintain our focus on the future and the long term whilst local competitors and international energy businesses have been distracted by nearer-term issues of the day.

We are accelerating investment in an already well invested, largely future proofed and efficiently operated grid. We continue to explore offshore wind which is potentially commercially viable in the near-term, and we are considering the role of tidal generated electricity in Jersey’s energy mix in the future. We are also scaling up our investment in technology and digital and have put in place important foundational elements of this strategy. Overall, we are making good progress with our cultural transformation programme, solution and infrastructure development and, whilst there is considerable work to do, we remain well positioned to assist Jersey and its residents in a manner that is not only morally and ethically the right thing to do, but also in the interests of all stakeholders.

There will for sure be challenges and some risks ahead, but Jersey Electricity is poised to have an important role in assisting the Island in its efforts to decarbonise and, we hope, become an international showcase of what is possible.