The States of Guernsey’s Policy & Resources committee (P&R) wants to invest £1.3m over the next two years to develop a framework that could facilitate the island receiving substantial financial returns from an offshore wind farm developer.

The committee is asking the Assembly to support the further preliminary work, which would deliver a seabed leasing approach for offshore wind.

This follows initial scoping work by the Offshore Wind Sub-Committee, which has indicated that the seabed has significant financial value as an asset to be developed for the export of offshore wind to the UK.

The most suitable option is based on a site area of 157 square kilometres, with installed capacity of 1.27GW.

P&R said an offshore wind farm could be worth £1.3bn over a 35-year contract.

Deputy Chris Blin, chair of the Offshore Wind Sub-Committee, said: “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.

“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, one of the P&R representatives on the Offshore Wind Sub-Committee, said there needed to be “a degree of caution given the many uncertainties”.

He added: “There are a lot of assumptions, so I would urge against any narrative that suggests this will be the answer to our financial challenges.

“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.

“That’s why we’re recommending investing up to £1,300,000 to undertake that work during 2025 and next year.”

Carbon Trust head of offshore wind advisory Megan Smith said: “Offshore wind development requires a robust and enabling regulatory framework, from site development to offtake, grid connection, consenting and beyond.

“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.”