Plans for an offshore wind farm in Jersey’s territorial waters should be paused until the island’s potential access to UK and French markets “becomes clear”, according to a new report – despite almost £1m being spent already on researching and developing the project.
The publication of the Offshore Wind Energy report – which aims to help decide if Jersey should develop an energy export industry – follows an update given by Environment Minister Steve Luce in September, when he said he would bring forward his recommendation on whether Jersey will pursue the creation of an offshore wind farm in its territorial waters to the States Assembly this month.
If Jersey was to proceed, the document estimates that development could begin in the late 2030s, with operations commencing around 2040.
But it stated that, despite “regular and persistent engagement”, conversations with the UK and France about access to export markets “have not yet been able to progress discussions to the required detailed technical and legal level”.
“Therefore, the resources required to support these negotiations cannot yet be estimated and requested.”
It concluded that “current market uncertainty, geopolitical risk and unclear access to export markets make this an unfavourable time to proceed with a leasing process”.
“A decision should only follow once market conditions and access terms are clearly understood and shown to deliver a net benefit for islanders,” it added.
The government report, which Deputy Luce will present to the States, recommended that securing market access “should be our next focus”.
“Given the current limited clarity from UK and French governments, we plan to continue until the scope of discussions becomes clear,” it continued.
I remain committed to an open, evidence-based approach, as we look to understand more about the opportunities Jersey might have to enter global energy markets
Environment Minister steve luce
Debate over whether the island should take on such a scheme picked up pace last year following approval of a proposition to further investigate the opportunity to develop a wind farm, of up to one-gigawatt in generating capacity, in the south-west of Jersey’s territorial waters.
Earlier this year, Express revealed that a total of £941,541 had been spent on the wind farm project since 2023.
Deputy Luce said that he was “confident” that the work completed so far “puts Jersey in a strong position to shape its energy future”.
“This project is about looking ahead, ensuring that our decisions today create opportunities for the future,” he added.
“I remain committed to an open, evidence-based approach, as we look to understand more about the opportunities Jersey might have to enter global energy markets.”
The report also concluded that, if “favourable market access” were to be secured, initial modelling indicated offshore wind could deliver a potential benefit of at least £4 for every £1 of public expenditure on the project.
Economic Development Minister Kirsten Morel said that offshore wind represented “a potentially transformative opportunity for Jersey”.
“While we remain open-minded about its future, our approach will be guided by evidence and a clear focus on what is best for islanders,” he added.
“This is not a conclusion, but a milestone in our journey to explore how offshore wind could support sustainable growth and help meet our climate commitments.”
In a statement, the Offshore Wind Review Panel, which was established following last year’s debate, said that it agreed that “the current geopolitical risk, and unclear access to export markets make it unfavourable to proceed with confidence at this time”.
Panel chair, Deputy Hilary Jeune, said: “We commend the Minister and his team for what has been transparent and open dialogue with us.”
Deputy Jeune continued: “They have kept us updated on progress as this important piece of work has progressed.
“This is a highly significant proposal for Jersey offering economic opportunity, but it comes with high costs and risks.”
She explained that the panel was “in agreement” with the Minister’s decision to pause work on bringing forward proposals to move to a leasing process for now.
However, the panel has also called for “a clear market access plan developed for our particular circumstances”, so that Jersey can be ready “once the geopolitical situation is more favourable”.
“A comprehensive plan will also enable Jersey to consider other renewable energy projects in future,” Deputy Jeune added.