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The Welsh government has unveiled plans to establish a publicly-owned energy company to develop renewable projects in Wales.
The company will be tasked with delivering more than 1GW of renewable generation by 2030, initially through the development of onshore wind projects on the Welsh government’s woodland estate.
Surplus funds generated by the company will be returned to the public purse to be reinvested in improving the energy efficiency of Welsh homes.
Climate change minister Julie 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 added: “The cost-of-living crisis is directly related to the major increase in the cost of energy, which strengthens the need for an approach that returns more to the people of 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.”
The announcement comes after Labour leader Sir Keir Starmer pledged to set up a publicly-owned energy developer within one year of coming to power at the party’s annual conference in September.
Noting the extensive ownership of the UK’s energy infrastructure by foreign state-owned entities, Starmer said the company would seek to turn Britain into a “clean energy superpower”. He later clarified that it would not act as energy supplier.
The Welsh Affairs Committee recently warned the UK government that the power grid in Wales is facing severe constraints onboth the supply and demand sides. It also raised concerns over Ofgem’s plans to shift charges for connecting to electricity distribution networks onto all consumers in the local area, saying this could unfairly burden rural residents.
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