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STATES OF JERSEY
EVIDENCE_BASED ENERGY STRATEGY (P.11/2025): – COMMENTS
Presented to the States on 11th March 2025 by the Minister for the Environment
STATES GREFFE
2025 P.11 Com.
COMMENTS
I understand, and am sympathetic to, the intent behind this proposition.
It is recognised that development of an energy strategy is an important piece of work. This has been identified in the Carbon Neutral Roadmap,[1] the Bridging Island Plan [2]and, more recently, the JCRA Electricity Market Study.[3]
The Carbon Neutral Roadmap (which is one of the priorities in the Common Strategic Policy) identifies development of an energy strategy as one of its key deliverables (CNR - strategic policy 2).
This being the case I have already prioritised beginning work on an energy strategy in 2025. This was set out in correspondence with the Environment, Housing and Infrastructure Panel last year regarding my ministerial priorities and also in my response to WQ.374/2024. As such, I support Deputy Jeune 's Proposition, subject to certain amendments to provide greater clarity.
An Energy Strategy
My intention is that an energy strategy will provide a high-level vision and long-term roadmap for how energy should be managed, supplied and used over time in Jersey. It is likely to set broad goals and it will identify key themes and priorities and areas of tension. It is more likely to provide a framework for decision-making and identify further policy development in areas such as legislative, regulation and specific policy actions to implement the strategic intent. As such part (b) of the proposition can be supported as subsequent to part (a) if the Strategy identifies that any legislative changes are necessary.
Energy trilemma
An energy strategy can be viewed through the lens of the energy trilemma. Each of the issues identified in the proposition fit into one or more elements of the trilemma:
• Security – Jersey's energy supply is secure and resilient (safety, security)
• Affordability – Jersey's energy supply is affordable and available (affordability, market competitiveness*)
• Net zero – Jersey's energy supply is low carbon and clean (carbon- neutrality). This area is already well developed with the adoption of the Carbon Neutral Roadmap.
Energy strategy issues are all linked and sometimes there are tensions between policy outcomes that need to be resolved with a clear understanding of the impacts.
*NB. The proposition defines "market competitiveness" as an aspect of the energy strategy. Market competitiveness is an economic term with a specific meaning – it means a market with many buyers and sellers, a market that sellers can quickly, easily and cheaply enter (and exit) and a market where sellers and buyers have full information. In such a market, prices are competitive and no buyer or seller can influence them and products and services (e.g. tariffs, customer service levels) meet customer need.[4]
In the context of Jersey, a small island, it is neither possible nor desirable to have true market competitiveness in all markets. This is particularly true of energy markets which require suppliers to invest large sums in developing and maintaining networks to supply energy to consumers. It would be hugely inefficient to have more than one gas or electricity network in an island nine miles by five. In the context of Jersey's energy market, market competitiveness is defined to mean a market that delivers competitive outcomes in terms of reliable and safe supply, prices and tariffs that deliver best value to consumers (affordability) and in terms of customer service.
I have therefore proposed an amendment to the proposition to clarify this point. Roles and responsibilities
Developing and agreeing an energy strategy covers matters that lie across several Ministers' portfolios and stakeholders from outside of government and I consider it a complex piece of work to do correctly. Hence, I did not intend for it to complete in this term of Government and so my intentions match those of Deputy Jeune 's in the Proposition.
As Minister for the Environment I have, among other things, ministerial responsibility for "energy policy".[5] In practice, it might be helpful to see this as a convening role, bringing other Ministers and stakeholders together in the energy policy sphere as I do not have legal responsibility for all matters relating to energy.
Planned work
Part (a) of the proposition requests the Council of Ministers to "develop and before 31st October 2026, implement" an energy strategy. Recognising the election in June 2026, I have proposed a small adjustment to the date to allow time for the new CoM to take office and consider the energy strategy. The strategy will be forward looking and set out a strategic position on energy as well as actions to be taken over 2026/2027 and beyond. Full implementation will therefore be over a number of years. The proposed timings mean that this will be a matter for the next Council of Ministers to consider and take forward but I would hope that a future Assembly and Ministers will see the importance of this policy area.
In parallel with the development of the strategy, a programme of immediate and ongoing tactical work is already planned which will contribute to the delivery of an energy strategy. This work is not limited to my portfolio and includes inter alia: responding to the C&AG's report on energy infrastructure resilience; gas legislation updates; renewal of the fuel farm lease; recommendations arising from the JCRA Market Study; continued delivery of the Carbon Neutral Roadmap and progressing plans for exploring the potential for the development of offshore wind in Jersey's waters (P.82/2023).
Resources
In order to develop the evidence base envisioned by the proposition, it is likely that specific, limited technical advice will be required albeit this is not yet scoped. For example, analysis of Jersey's long-term energy requirements, or advice on market structure. As the development of an energy strategy is identified in Strategic Policy 2 of the Carbon Neutral Roadmap, there is already some budget assigned within the Climate Emergency Fund therefore I do not expect there to be additional funding requirements.
[1] R Carbon Neutral Roadmap 20220525 JB.pdf Strategic Policy 2 – Island Energy Market
[4] Input provided by Government economics team
[5] R.118/2024 States of Jersey Law, Article 30A: List of delegations to be published