The Welsh Government has said it will create a publicly owned clean energy developer in a bid to shore up energy security and address rising consumer energy bills.
Speaking in the Senedd on Tuesday Welsh Minister for Climate Change Julie James said the organisation would be formed in response to energy insecurity, the cost-of-living crisis and the increasing threats of climate and natural emergencies.
The agency would aim to establish more than 1 gigawatt (GW) of locally owned generation by 2030, amid a wider “scale up” of renewable energy.
It will do so initially through the development of onshore wind projects on woodland estate held by the Welsh Government.
In a statement the administration said that some renewable energy projects on these estates have already been developed by foreign state-owned energy developers, meaning profits from the projects would be returned to their respective countries.
The Minister said energy profits from the Welsh national developer would deliver benefits for people in Wales.
Surplus funds generated through the new developer will go back into the public purse to be reinvested in improving energy efficiency in homes and “creating good quality, home grown, clean energy jobs.”
Ms James said: “We want to harvest our wind and use it to produce power that directly benefits people in Wales.
“We will set up a publicly-owned renewable energy developer. This is a long-term sustainable investment that puts net zero and the communities of Wales at the heart of the transition we need.
“We are in a climate emergency and our approach is in stark contrast to the UK Government that is focusing on fracking and fossil fuels – opposed by most communities and incompatible with our international obligations.”
She called the action “an historic moment for Wales.”
“If other countries are anything to go by, then we should expect considerable returns from our investment and – as we share the ambitions of these other nations – we have a genuine opportunity to produce an income that will really help us to deliver here,” she added.
“We are taking positive action to ensure we deliver on our net zero commitments in ways that benefit our communities.”
The move follows a policy mooted by Labour leader Kier Starmer, in which he pledged to create a publicly-owned energy company within the first year of a Labour government in Westminster.
Dubbed Great British Energy (GBE), he said the company would look to take advantage of opportunities in clean British power.
Meanwhile, Scotland’s SNP pledged to create a similar entity in 2017. Speaking at that year’s SNP conference, First Minister Nicola Sturgeon said the not-for-profit company would sell gas and electricity to customers at low or wholesale prices by 2021.
However last year the party said efforts had been “halted” in light of the pandemic, with work instead “refocused” on a public energy agency.
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