Select committee: Welsh Affairs Committee
Recommendation 7
Second Report - Renewable energy in Wales
Published 29 Jul 2021
Paragraph 38
Addressed to Wales Office
Welsh Affairs Committee Renewable energy in Wales All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
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 urgency, explore re- introducing generation tariffs to the Smart Export Guarantee in order to adequately support small-scale renewable energy generation. As consumers are currently only guaranteed to be paid less than zero, the UK Government should also examine bringing back a fixed tariff to incentivise further small-scale energy generation. The UK Government should report back to us within the next three months on its review of these proposals.
From: Welsh Affairs Committee, Second Report - Renewable energy in Wales (HC 439), paragraph 38, 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."