Second Report - Renewable energy in Wales
Select Committee
Welsh Affairs Committee
HC 439
29 July 2021
Government Response (AI assessment · 20 of 20 classified)
Accepted
4
Acknowledged
10
Deferred
1
Rejected
1
Government response
Second Special Report - Renewable energy in Wales: Government response to the Committee’s Second Report · published 26 Oct 2021
Recommendations & Conclusions
20 results
1
Conclusion
Acknowledged
Para 23
The Crown Estate plays a crucial role in the management of the UK’s seabed and...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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2
Conclusion
Acknowledged
Para 24
Over the course of our inquiry we heard significant demand from energy companies for additional...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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3
Recommendation
Deferred
We encourage The Crown Estate to continue to work proactively with developers to ensure that...
Recommendation
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, …
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Government Response Summary
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.
Wales Office
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4
Conclusion
Acknowledged
Para 30
The Contracts for Difference (CfD) scheme has been highly successful in supporting renewable energy development...
Conclusion
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.
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Government Response Summary
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.
Wales Office
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5
Recommendation
Not Addressed
Para 31
The UK Government must address the funding gap for emerging marine technologies or risk negatively...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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6
Recommendation
Not Addressed
Para 37
The Feed-in Tariffs scheme had been hugely successful in attracting investment in small-scale renewable energy...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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7
Recommendation
Not Addressed
This is a critical moment for the climate agenda.
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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8
Conclusion
Accepted
Para 43
The shift to a net zero economy will be one of the most significant economic...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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9
Recommendation
Accepted
Para 44
If the UK Government intends to ensure that jobs will not be lost during the...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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10
Conclusion
Acknowledged
Para 47
Wales natural resources, coastline and all round renewable energy potential should mean that it benefits...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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11
Recommendation
Not Addressed
While Wales has the potential to benefit from the Ten Point Plan, it will not...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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12
Conclusion
Acknowledged
Para 56
Effective collaboration and co-operation between the UK and Welsh governments will be essential if Wales...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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13
Recommendation
Rejected
Para 57
The UK Government should focus on maintaining a close working relationship with the Welsh Government,...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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14
Conclusion
Acknowledged
Para 62
Interconnectors have been proven to provide strong benefits for decarbonisation, because of this the role...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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15
Recommendation
Acknowledged
Para 63
Further to the UK Government’s recent collaboration with the EU on a potential North Sea...
Recommendation
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 Summary
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.
Wales Office
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16
Conclusion
Accepted
Para 71
We received a considerable amount of evidence arguing that grid capacity issues are currently significantly...
Conclusion
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 …
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Government Response Summary
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.
Wales Office
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17
Recommendation
Accepted
Para 72
The UK Government must recognise that Wales’ increase in renewable energy development and generation may...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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18
Recommendation
Acknowledged
Para 79
Wales is well-placed to benefit from the significant potential of fixed bottom and floating offshore...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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19
Recommendation
Acknowledged
Para 80
The UK Government should make clear the likelihood of further funding of ports infrastructure in...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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20
Recommendation
Acknowledged
The UK and Welsh governments, as well as port operators, and energy companies with developments...
Recommendation
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 …
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Government Response Summary
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.
Wales Office
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