Select committee: Welsh Affairs Committee

Recommendation 5

Second Report - Renewable energy in Wales Published 29 Jul 2021 Paragraph 31 Addressed to Wales Office
Recommendation (the committee's words)
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 urgency to investigate the feasibility of introducing Innovation Power Purchase Agreements. Such Agreements could provide a powerful catalyst for investment in emerging technologies and help support innovation and development in renewable energy projects.

From: Welsh Affairs Committee, Second Report - Renewable energy in Wales (HC 439), paragraph 31, 29 July 2021

Government response

The government responded to the whole report on 26 October 2021 (deadline 29 September 2021).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government says it "remains firmly committed to the renewables industry across the UK, including in Wales" and responds to each recommendation by setting out existing policy and activity, with several matters left to independent bodies.

  • On seabed leasing, it says this is the responsibility of The Crown Estate, which is "independent of the UK Government", and notes that TCE has confirmed its intention to hold a new floating offshore wind leasing round in the Celtic Sea.
  • On small-scale generation tariffs, it states "We believe that the market should determine prices" and says the Government will review an annual Ofgem report on the Smart Export Guarantee to monitor whether the market is delivering.
  • On grid constraints, it says regulation is a matter for Ofgem and that Government supports Ofgem's work to enable investment ahead of need "where the need is sufficiently certain to justify this".
  • On a Welsh freeport, it says "We remain committed to establishing a Freeport in Wales as soon as possible."

Read the government's response ↗ Report an error