Guernsey Considers Leasing Seabed for Offshore Wind Development

The States of Guernsey's Policy & Resources Committee (P&R) is exploring the possibility of leasing part of its seabed to an offshore wind developer. The committee has proposed an investment of £1.3 million over the next two years to develop a framework that could generate significant financial returns from leasing the seabed for offshore wind farm projects.

The committee is seeking support from the Assembly for further preliminary work, which would establish a seabed leasing approach to facilitate offshore wind development. This follows initial scoping efforts by the Offshore Wind Sub-Committee, which has suggested that Guernsey's seabed holds considerable financial potential, particularly for exporting offshore wind power to the UK.

A potential development site covering 157 square kilometers with an installed capacity of 1.27GW has been identified as the most suitable option. The P&R Committee estimates that an offshore wind farm at this site could be worth £1.3 billion over a 35-year contract.

Deputy Chris Blin, Chair of the Offshore Wind Sub-Committee, explained the rationale behind the project. “The first part of this sub-committee's work, after being restructured under the current P&R committee 15 months ago, has been to identify whether there is an opportunity for Guernsey, and if so, what might the scale of that opportunity be,” Blin said. “Working with external expertise from PA Consulting and the Carbon Trust, who both have significant track records in these projects, we have confirmed that there is an opportunity worth pursuing further.”

Deputy Bob Murray, a member of the P&R committee, acknowledged the uncertainties surrounding the project but emphasized the potential value. “There are a lot of assumptions, so I would urge against any narrative that suggests this will be the answer to our financial challenges,” Murray stated. “However, the initial phases of work indicate there may be substantial value in leasing a section of seabed in our territorial waters, and we won't know for sure unless we carry out this next phase of work.”

Megan Smith, Head of Offshore Wind Advisory at the Carbon Trust, highlighted the importance of a robust regulatory framework for offshore wind development. “Offshore wind development requires a robust and enabling regulatory framework, from site development to offtake, grid connection, consenting and beyond,” Smith said. “We are excited to collaborate with the States of Guernsey, which has shown its dedication to advancing offshore wind development within Guernsey's maritime jurisdiction. The States' commitment to proactively addressing the enabling environment has the potential to make the seabed around the island an attractive investment for offshore wind developers.”

The proposal is part of a broader effort by Guernsey to explore renewable energy opportunities while positioning itself as a potential hub for offshore wind development in the region.