Renewable energy in Wales

Welsh Affairs Committee Closed Inquiry
Opened: 23 Nov 2020 Closed: 15 Nov 2021 Parliament page
We will look at how the UK Government, in cooperation with Welsh Ministers, can best support the development of renewable energy in Wales. This will include the potential significance of COP26 for Wales. Read the inquiry launch and terms of reference
12 Recommendations
8 Conclusions
1 Report
5 Oral sessions
5 Events
Activity timeline 7 events
26 Oct
2021
Report published
29 Jul
2021
Report published
29 Apr
2021
Oral evidence
15 Apr
2021
Oral evidence
18 Mar
2021
Oral evidence
4 Mar
2021
Oral evidence
28 Jan
2021
Oral evidence
Oral evidence sessions 5 sessions
29 Apr 2021
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Oral evidence
David T C Davies · Wales Office Rt Hon Anne-Marie Trevelyan · Department for Business, Energy and Industrial Strategy
15 Apr 2021
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Oral evidence
Juliet Davenport · Good Energy Maf Smith · Lumen Energy and Environment Michelle Davies · Eversheds Sutherland
18 Mar 2021
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Oral evidence
Frank Elsworth · Vattenfall Gary Newman · Wood Knowledge Wales Huub den Rooijen · The Crown Estate Matthieu Hue · EDF Renewables Robert Proctor · Community Energy Wales Simon Hamlyn · British Hydropower Association
4 Mar 2021
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Christoph Harwood · Simply Blue Energy Jess Hooper · Marine Energy Wales Paul Hewett · Belltown Power Tom Glover · RWE Generation
28 Jan 2021
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Hywel Lloyd · Institute of Welsh Affairs Professor Nick Jenkins · Cardiff University Rhys Wyn Jones · RenewableUK
Title HC No. Published Items Response
Second Report - Renewable energy in Wales HC 439 29 Jul 2021 20 Responded
Recommendations & Conclusions
20 results
1 Conclusion Acknowledged
Second Report - Renewable energy i…
The Crown Estate plays a crucial role in the management of the UK’s seabed and...
The Crown Estate plays a crucial role in the management of the UK’s seabed and in ensuring that economic development arising from leases to developers works in tandem with the conservation and protection of our natural resources. We recognise that … Read more
Government Response
The government clarifies that The Crown Estate (TCE) is an independent body responsible for seabed management. It then details TCE's active role, including a confirmed new leasing round for floating offshore wind in the Celtic Sea and the progress of three test projects, thereby acknowledging the committee's positive assessment of TCE's work.
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2 Conclusion Acknowledged
Second Report - Renewable energy i…
Over the course of our inquiry we heard significant demand from energy companies for additional...
Over the course of our inquiry we heard significant demand from energy companies for additional seabed leases to be made available. These leases are essential to the development of offshore energy generation in Welsh waters. We therefore welcome the recent … Read more
Government Response
The government reiterates that The Crown Estate (TCE) is an independent body responsible for seabed management. It then details TCE's active role, including a confirmed new leasing round for floating offshore wind in the Celtic Sea and the progress of three test projects, thereby acknowledging the committee's positive assessment of TCE's work.
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3 Recommendation Deferred
Second Report - Renewable energy i…
We encourage The Crown Estate to continue to work proactively with developers to ensure that...
We encourage The Crown Estate to continue to work proactively with developers to ensure that adequate leasing rounds continue to be offered on a regular basis in the future. Of most importance is that there is, as far as possible, … Read more
Government Response
The government states that The Crown Estate (TCE) is an independent body responsible for seabed management and details TCE's confirmed new leasing round for floating offshore wind and progress of test projects. The response effectively redirects responsibility for direct government involvement in leasing timetables to TCE and does not address mechanisms for distributing wealth generation to Welsh communities.
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4 Conclusion Acknowledged
Second Report - Renewable energy i…
The Contracts for Difference (CfD) scheme has been highly successful in supporting renewable energy development...
The Contracts for Difference (CfD) scheme has been highly successful in supporting renewable energy development in Wales. However, emerging marine technologies such as wave and tidal require additional support to bridge the gap between innovation funding and CfDs. Read more
Government Response
The government points to existing mechanisms like the UK Community Renewal Fund and the CfD scheme's Pot 2 for less-established technologies. It states officials are engaging with tidal stream developers to explore cost-reduction and potential funding arrangements outside CfD.
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5 Recommendation Not Addressed
Second Report - Renewable energy i…
The UK Government must address the funding gap for emerging marine technologies or risk negatively...
The UK Government must address the funding gap for emerging marine technologies or risk negatively impacting their development. As a first step, Ministers from Her Majesty’s Treasury, in cooperation and coordination with Welsh Government Ministers, should arrange to meet with … Read more
Government Response
The government did not address the specific recommendation for Ministers to meet with marine energy sector representatives to investigate Innovation Power Purchase Agreements. The response describes ongoing engagement by officials and existing funding mechanisms.
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6 Recommendation Not Addressed
Second Report - Renewable energy i…
The Feed-in Tariffs scheme had been hugely successful in attracting investment in small-scale renewable energy...
The Feed-in Tariffs scheme had been hugely successful in attracting investment in small-scale renewable energy generation. We are concerned, however, that its Renewable energy in Wales 27 replacement scheme the Smart Export Guarantee has been widely criticised by small-scale renewable … Read more
Government Response
The government only provides a definition of the Smart Export Guarantee (SEG). It does not address the committee's concerns about the SEG's limitations, smart meter rollout issues in rural areas, or the recommendation to work with the Welsh Government to resolve these problems.
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7 Recommendation Not Addressed
Second Report - Renewable energy i…
This is a critical moment for the climate agenda.
This is a critical moment for the climate agenda. If the UK Government is to achieve its ambitious net-zero targets, it needs to have a subsidy programme that succeeds in attracting private sector and community investment in small-scale renewable energy … Read more
Government Response
The government only provides a definition of the Smart Export Guarantee (SEG). It does not commit to exploring the re-introduction of generation or fixed tariffs to the SEG, nor does it agree to report back within three months on a review of these proposals.
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8 Conclusion Accepted
Second Report - Renewable energy i…
The shift to a net zero economy will be one of the most significant economic...
The shift to a net zero economy will be one of the most significant economic transformations in decades. It will have far reaching consequences for communities and individuals across the UK, for livelihoods and lifestyles. While this decarbonisation journey offers … Read more
Government Response
The government acknowledges the need for a comprehensive strategy to upskill the workforce for the net-zero economy, referencing its Ten Point Plan and investments in skills. It highlights the Green Jobs Taskforce, launched last year, specifically tasked with addressing skills for the low-carbon transition.
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9 Recommendation Accepted
Second Report - Renewable energy i…
If the UK Government intends to ensure that jobs will not be lost during the...
If the UK Government intends to ensure that jobs will not be lost during the transition to a greener economy, it needs to work with the business sector and stakeholders including the Welsh Government to develop a comprehensive strategy for … Read more
Government Response
The government highlights its Ten Point Plan for a green industrial revolution and the establishment of the Green Jobs Taskforce last year. This taskforce was already convened with stakeholders to advise on skills and a reskilling strategy, addressing the committee's recommendation.
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10 Conclusion Acknowledged
Second Report - Renewable energy i…
Wales natural resources, coastline and all round renewable energy potential should mean that it benefits...
Wales natural resources, coastline and all round renewable energy potential should mean that it benefits significantly from the UK Government’s Ten Point Plan for the Green Industrial Revolution. However, we are concerned that the UK Government has provided no information … Read more
Government Response
The government acknowledges Wales' central role in the green industrial revolution and lists numerous specific funding commitments and projects in Wales, including over £90 million for net-zero initiatives. However, it does not provide specific figures on the number of jobs anticipated in Wales from the Ten Point Plan.
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11 Recommendation Not Addressed
Second Report - Renewable energy i…
While Wales has the potential to benefit from the Ten Point Plan, it will not...
While Wales has the potential to benefit from the Ten Point Plan, it will not do so automatically or by right. Rather, it will require a clear vision, and a specific plan, for job creation from the UK Government. Using … Read more
Government Response
The government details various existing funding commitments and projects for net zero in Wales, including specific amounts for initiatives like the Active Building Centre. However, it does not commit to developing a new Wales-specific plan with a detailed route-map, job numbers, or allocating parliamentary time for its debate as recommended.
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12 Conclusion Acknowledged
Second Report - Renewable energy i…
Effective collaboration and co-operation between the UK and Welsh governments will be essential if Wales...
Effective collaboration and co-operation between the UK and Welsh governments will be essential if Wales is to achieve net zero by 2050. Significant issues such as grid capacity and port infrastructure, in particular, require cross-government working if they are to … Read more
Government Response
The government recognises the important role of Devolved Administrations in expanding renewable power and confirms that officials will continue to work closely with Welsh counterparts and the Wales Office. Ministerial collaboration will also continue through existing fora such as the Net Zero Inter-Ministerial Group.
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13 Recommendation Rejected
Second Report - Renewable energy i…
The UK Government should focus on maintaining a close working relationship with the Welsh Government,...
The UK Government should focus on maintaining a close working relationship with the Welsh Government, particularly in regard to major energy systems challenges such a grid capacity and port infrastructure. To facilitate effective collaboration, where renewable energy projects in Wales … Read more
Government Response
The government states its officials will continue working closely with Welsh officials to ensure Welsh interests are reflected in the Ministerial Delivery Group. However, it declines to invite Welsh Government Ministers to that specific group, instead suggesting engagement through existing inter-ministerial fora.
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14 Conclusion Acknowledged
Second Report - Renewable energy i…
Interconnectors have been proven to provide strong benefits for decarbonisation, because of this the role...
Interconnectors have been proven to provide strong benefits for decarbonisation, because of this the role of interconnectors is expected to greatly increase in the decades leading to net zero. As an interconnector in Wales would allow excess energy, which is … Read more
Government Response
The government acknowledges the benefits of interconnectors, highlighting its ambition for 18 gigawatts by 2030 and its support for interconnection as a core energy strategy. It references the ongoing Offshore Transmission Network Review which considers multi-purpose interconnectors and expresses interest in Celtic Sea opportunities.
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15 Recommendation Acknowledged
Second Report - Renewable energy i…
Further to the UK Government’s recent collaboration with the EU on a potential North Sea...
Further to the UK Government’s recent collaboration with the EU on a potential North Sea grid, the UK Government should consider the opportunity for further export from the Celtic Sea to the continent and the creation of a Celtic Sea Economic Zone.
Government Response
The government outlines existing ambitions for electricity interconnection and the Offshore Transmission Network Review, and expresses interest in hearing more about Celtic Sea opportunities. However, it does not commit to specifically considering further export from the Celtic Sea or creating a Celtic Sea Economic Zone as recommended.
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16 Conclusion Accepted
Second Report - Renewable energy i…
We received a considerable amount of evidence arguing that grid capacity issues are currently significantly...
We received a considerable amount of evidence arguing that grid capacity issues are currently significantly hindering renewable energy deployment throughout Wales, and are likely to continue to do so in the future. If the UK Government is unaware of the … Read more
Government Response
The government states that network regulation is a matter for Ofgem but is working with them to enable anticipatory investment by network companies. It details significant existing and planned investments in Welsh transmission and distribution networks, and highlights the ongoing Offshore Transmission Network Review which includes the Welsh Administration.
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17 Recommendation Accepted
Second Report - Renewable energy i…
The UK Government must recognise that Wales’ increase in renewable energy development and generation may...
The UK Government must recognise that Wales’ increase in renewable energy development and generation may be significantly hindered by grid constraints if action is not taken. To mitigate this risk, the UK Government must work in collaboration Renewable energy in … Read more
Government Response
The government confirms it is working with Ofgem to enable anticipatory investment in network infrastructure and cites significant current and planned investment across Great Britain and specifically in South and Mid Wales. It also highlights the Offshore Transmission Network Review, which is developing a plan-led approach to grid infrastructure and includes the Welsh Administration.
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18 Recommendation Acknowledged
Second Report - Renewable energy i…
Wales is well-placed to benefit from the significant potential of fixed bottom and floating offshore...
Wales is well-placed to benefit from the significant potential of fixed bottom and floating offshore wind around the Welsh coast. However, existing issues with the supply chain and port infrastructure must be addressed if the country wants to take advantage … Read more
Government Response
The government acknowledges the potential of offshore wind and the importance of supply chain and jobs. It highlights past investment in port infrastructure and welcomes collaboration, but does not commit to new specific actions to address existing supply chain and port infrastructure issues.
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19 Recommendation Acknowledged
Second Report - Renewable energy i…
The UK Government should make clear the likelihood of further funding of ports infrastructure in...
The UK Government should make clear the likelihood of further funding of ports infrastructure in Wales to support the emerging offshore wind sector. Further port investment should be encouraged for Welsh ports, particularly the Celtic Sea ports, in any future … Read more
Government Response
The government acknowledges the economic opportunities of offshore wind and commits to working closely with Welsh stakeholders. However, it does not commit to clarifying the likelihood of further ports funding or accelerating agreement on Welsh freeport funding, instead referencing existing successful investments.
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20 Recommendation Acknowledged
Second Report - Renewable energy i…
The UK and Welsh governments, as well as port operators, and energy companies with developments...
The UK and Welsh governments, as well as port operators, and energy companies with developments in Wales, should work together to learn the lessons from the North East of England, where a clear strategy, focus, and public and private sector … Read more
Government Response
The government acknowledges the economic potential of offshore wind and the importance of maximizing supply chain and job benefits, noting past successful investments in port infrastructure. It welcomes collaboration but does not commit to a specific process for learning lessons from the North East of England as recommended.
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Government Response AI assessment · 20 of 12 classified
Accepted 4
Acknowledged 10
Deferred 1
Not Addressed 4
Rejected 1
Total 12 recs + 8 conclusions