Energy - what are we calling for?
Published: 18 Nov 2021
The Welsh Government is not in sole control of how much additional renewable energy capacity is built, because the UK controls the main financial support mechanisms (Contracts for Difference, Renewable Heat Incentive).
While some subsidy-free renewable energy capacity may be built (eg, Pant y Maen), many projects will still require the guaranteed price from a CfD contract, for example, the Swansea Tidal Lagoon. Grid constraints, likewise outside of Welsh Government control, also impact on renewable energy growth.
The Welsh Government should aim for 100% of Wales’s electricity demand to be met by renewable energy generated in Wales by 2035 (including taking into account the need for increased generation capacity for electrification of heat and transport, and the production of hydrogen), including through community-owned renewable energy capacity.
The Welsh Government must use the Future Wales: the National Plan 2040 to make Wales as attractive as Scotland for new-build renewable energy and storage, and lobby to ensure barriers are removed (eg, grid restraints, CfD opportunities). Wales’s renewable energy industrial strategy should capitalise on the expertise of universities and on the dynamism of start-ups, and it also needs a strong political commitment to ensure it succeeds.