Chamber of Commerce: Calculations suggest energy prices will be halved with renewables

Energy lead says secure, sustainable and affordable power is achievable, though acknowledges challenges remain over interim net-zero targets

The Isle of Man Chamber of Commerce believes the Island can achieve a secure, sustainable and affordable energy supply - and insists businesses want to see progress.

Ralph Peake, a former MHK who was involved in developing the Climate Change Act 2021, says the Chamber has consulted widely with local businesses through workshops over several years to help shape its position.

He says the message from those discussions is clear - companies want energy that is secure, sustainable, and affordable.

Mr Peake says he believes all three goals are achievable and points to international examples, including the Faroe Islands, as proof that renewables can play a major role in reducing fossil fuel dependence.

He describes the Climate Change Act as a "good start" and says the Island must remain committed to its net-zero target for 2050, not only to help the local population but also to attract future business investment.

However, questions remain over the government’s interim target of cutting carbon emissions by at least 35 percent by 2030, and ensuring electricity is fully decarbonised by then.

According to the Climate Change Plan, 70 percent of that ambition relies on installing a second electricity interconnector with the UK - a project the chief minister has previously speculated could cost in excess of £100 million.

Mr Peake accepts the second interconnector is "just one solution" and believes other technologies and opportunities will emerge to strengthen the Island’s position.

He also highlights the Isle of Man’s natural resources, which he says can be harnessed to support a more independent and greener energy system.

When asked about proposed onshore and offshore wind farm developments from Manx Utilities and Orsted, Mr Peake says he supports all renewable energy initiatives.

On the issue of whether there is sufficient public backing for such projects, he says other countries are adopting similar approaches and are likely to benefit from embracing renewables.

Affordability

Mr Peake acknowledges current gas and electricity prices are high, but says modelling carried out by the Chamber - alongside partners such as the Technical University of Denmark - suggests energy prices on the Isle of Man could potentially be halved in future.

That’s despite Manx Utilities’ own view, which has stated it’s difficult to predict future prices, though it believes some onshore wind generation could help reduce costs.

Mr Peake told Christian Jones, it’s important to set a clear direction, but not lose sight of the Island’s current financial pressures: