Select Committee · Welsh Affairs Committee

Renewable energy in Wales

Status: Closed Opened: 23 Nov 2020 Closed: 15 Nov 2021 2 recommendations 18 conclusions 1 report

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

Reports

1 report
Title HC No. Published Items Response
Second Report - Renewable energy in Wales HC 439 29 Jul 2021 20 Responded

Recommendations & Conclusions

20 items
1 Conclusion Second Report - Renewable energy in Wal…

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 this is not an easy balance and we thank The …

Wales Office
2 Conclusion Second Report - Renewable energy in Wal…

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 announcement from The Crown Estate of a new leasing opportunity …

Government response. The management of the seabed off the coastlines of England, Northern Ireland and Wales, including leasing, is the responsibility of The Crown Estate (TCE), which is independent of the UK Government. Created by an Act of Parliament, it is a …
Wales Office
3 Conclusion Second Report - Renewable energy in Wal…

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, alignment between the timetables being used by The Crown Estate …

Government response. The management of the seabed off the coastlines of England, Northern Ireland and Wales, including leasing, is the responsibility of The Crown Estate (TCE), which is independent of the UK Government. Created by an Act of Parliament, it is a …
Wales Office
4 Conclusion Second Report - Renewable energy in Wal…

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.

Government response. The UK Government recently ran a Call for Evidence inviting views on what scope there is for marine technologies across the UK. In addition, local authorities in Wales and elsewhere had the opportunity to apply to the UK Community Renewal …
Wales Office
5 Conclusion Second Report - Renewable energy in Wal…

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 representatives from the marine energy sector as a matter of …

Government response. The UK Government recently ran a Call for Evidence inviting views on what scope there is for marine technologies across the UK. In addition, local authorities in Wales and elsewhere had the opportunity to apply to the UK Community Renewal …
Wales Office
6 Conclusion Second Report - Renewable energy in Wal…

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 developers as being too limited in scope and for its …

Government response. The Smart Export Guarantee (SEG) gives small scale low-carbon electricity generators the right to be paid for the renewable electricity they export to the grid. It 2 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/990120/ UK_Government_s_Plan_for_Wales_May_2021__ENGLISH_.pdf
Wales Office
7 Conclusion Second Report - Renewable energy in Wal…

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 generation. The UK Government should therefore, as a matter of …

Government response. The Smart Export Guarantee (SEG) gives small scale low-carbon electricity generators the right to be paid for the renewable electricity they export to the grid. It 2 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/990120/ UK_Government_s_Plan_for_Wales_May_2021__ENGLISH_.pdf
Wales Office
8 Conclusion Second Report - Renewable energy in Wal…

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 potentially rich rewards, it also contains significant risks for the …

Government response. The UK government set out in the Ten Point Plan for a green industrial revolution, the importance of supporting levelling up and revitalising our industrial heartlands—and supporting up to 250,000 jobs across the UK by 2030—as we transition to net …
Wales Office
9 Recommendation Second Report - Renewable energy in Wal…

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 upskilling the current workforce, leveraging new opportunities and tackling the …

Government response. The UK government set out in the Ten Point Plan for a green industrial revolution, the importance of supporting levelling up and revitalising our industrial heartlands—and supporting up to 250,000 jobs across the UK by 2030—as we transition to net …
Wales Office
10 Conclusion Second Report - Renewable energy in Wal…

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 on how many of the jobs envisaged by the plan …

Government response. Wales is well-placed to play a central role in the UK’s green industrial revolution and the global effort to reach net zero by 2050. The UK Government has committed £90 million to innovative Welsh net zero projects, including: • £36 …
Wales Office
11 Conclusion Second Report - Renewable energy in Wal…

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 the Ten Point Plan as a starting point, 28 Renewable …

Government response. Wales is well-placed to play a central role in the UK’s green industrial revolution and the global effort to reach net zero by 2050. The UK Government has committed £90 million to innovative Welsh net zero projects, including: • £36 …
Wales Office
12 Conclusion Second Report - Renewable energy in Wal…

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 be resolved, and there are a number of key areas …

Government response. We recognise the important role for the Devolved Administrations in contributing to the expansion of renewable power in the UK. My officials will continue to work closely with officials in the Devolved Administration and those in the Wales Office to …
Wales Office
13 Conclusion Second Report - Renewable energy in Wal…

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 are under consideration, the UK Government should invite Welsh Government …

Government response. We recognise the important role for the Devolved Administrations in contributing to the expansion of renewable power in the UK. My officials will continue to work closely with officials in the Devolved Administration and those in the Wales Office to …
Wales Office
14 Conclusion Second Report - Renewable energy in Wal…

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 likely to be created due to the abundance of wind …

Government response. In last year’s Energy White Paper, the UK government included an ambition to realise at least 18 gigawatts of electricity interconnection by 2030. The UK is supportive of electricity interconnection as a core part of our energy strategy due to …
Wales Office
15 Conclusion Second Report - Renewable energy in Wal…

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. In last year’s Energy White Paper, the UK government included an ambition to realise at least 18 gigawatts of electricity interconnection by 2030. The UK is supportive of electricity interconnection as a core part of our energy strategy due to …
Wales Office
16 Conclusion Second Report - Renewable energy in Wal…

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 severity of this issue, it would suggest that their engagement …

Government response. Regulation of the transmission and distribution network is a matter for Ofgem as the independent regulator. Government is working with Ofgem to help ensure that network companies play a full role in meeting our net zero objectives and supports Ofgem’s …
Wales Office
17 Conclusion Second Report - Renewable energy in Wal…

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 Wales 29 with Ofgem to plan anticipatory investment in Wales, …

Government response. Regulation of the transmission and distribution network is a matter for Ofgem as the independent regulator. Government is working with Ofgem to help ensure that network companies play a full role in meeting our net zero objectives and supports Ofgem’s …
Wales Office
18 Conclusion Second Report - Renewable energy in Wal…

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 of these opportunities.

Government response. We fully recognise the potential economic opportunities presented by the growth in offshore wind (including floating wind) needed to secure our Sixth Carbon Budget and net zero targets. Ensuring that the UK can maximise the supply chain and jobs benefits …
Wales Office
19 Recommendation Second Report - Renewable energy in Wal…

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 funding rounds. Freeports are one current area where significant investment …

Government response. We fully recognise the potential economic opportunities presented by the growth in offshore wind (including floating wind) needed to secure our Sixth Carbon Budget and net zero targets. Ensuring that the UK can maximise the supply chain and jobs benefits …
Wales Office
20 Conclusion Second Report - Renewable energy in Wal…

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 investment have led to the Port of Blyth becoming a …

Government response. We fully recognise the potential economic opportunities presented by the growth in offshore wind (including floating wind) needed to secure our Sixth Carbon Budget and net zero targets. Ensuring that the UK can maximise the supply chain and jobs benefits …
Wales Office

Oral evidence sessions

5 sessions
Date Witnesses
29 Apr 2021 David T C Davies · Wales Office, Rt Hon Anne-Marie Trevelyan · Department for Business, Energy and Industrial Strategy View ↗
15 Apr 2021 Juliet Davenport · Good Energy, Maf Smith · Lumen Energy and Environment, Michelle Davies · Eversheds Sutherland View ↗
18 Mar 2021 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 View ↗
4 Mar 2021 Christoph Harwood · Simply Blue Energy, Jess Hooper · Marine Energy Wales, Paul Hewett · Belltown Power, Tom Glover · RWE Generation View ↗
28 Jan 2021 Hywel Lloyd · Institute of Welsh Affairs, Professor Nick Jenkins · Cardiff University, Rhys Wyn Jones · RenewableUK View ↗