Part of the debate – in the Senedd at 6:16 pm on 15 June 2016.
I’ll come to that bit in a moment. I had a meeting this morning, actually, with Carl Sargeant, who’s obviously now responsible for housing, where we discussed that very issue. But I will refer to that later on.
I think the energy system is already being transformed, and this is clear from the low-carbon generation report that we published last November. Wales had 2,280 MW of renewable capacity installed at the end of 2014, and that was up from 1,101 MW in 2012; 14,380 projects were delivered across Wales, from the 576 MW Gwynt y Môr offshore windfarm to nearly 11,000 solar photovoltaic arrays. We know that developments have continued in the 18 months since then, and I think there are opportunities for the future, and that includes the £12 billion Wylfa Newydd project in north Wales and, of course, the Swansea bay tidal lagoon.
We need to ensure we’ve got a very flexible and diverse energy mix here in Wales, and as we move forwards towards a low-carbon economy, our energy priorities need to support low-carbon jobs and skills, ensuring that energy developments benefit people in Wales and that the regulatory system protects their interests. In conjunction with the committee’s report, I see a very important and increasing role for local generation and supply based on renewable sources, with smart storage and local grid management, and again, over the last five years, I think we have now established a legislative and policy framework that will enable that change. We provided leadership through the groundbreaking set of legislation that uses the levers that we have. The Well-being of Future Generations (Wales) Act 2015 is designed to increase the well-being of Wales by ensuring that all of our actions provide social, economic, cultural and environmental benefits, and we’ve got to continue to drive forward action on energy, providing multiple benefits and helping achieve the well-being goals. This will mean taking forward the statutory climate change target and carbon budgeting required by the Environment (Wales) Act 2016. Local public service boards will have an important role in translating targets into local action, and low-carbon energy generation and energy efficiency will be core components in delivering them. Indeed, energy will need to be a fundamental consideration within LDPs. Local authorities have been reminded of this requirement to plan positively for renewable energy, and we will continue to support them in doing this.
The changes to the consenting regimes promised through the UK Energy Act 2016 and the Wales Bill, as well as the implementation of the developments of national significance regime, provide the opportunity for decisions on significant renewable energy projects to be taken for the benefit of the people of Wales. We’ve published an energy efficiency strategy and a local energy statement that set out a clear direction for Wales. However, energy policy and market regulation are not devolved, so we continue to work with the UK Government, with the grid operators and Ofgem to secure the transformation in regulation and in the markets that Wales needs.
For new buildings, improving energy performance through building standards is important in achieving our well-being aims. I just mentioned to Nick Ramsay that I met this morning with Carl Sargeant, within whose portfolio house building now is, and we talked about how we need to build houses for the future. We’ve got to raise standards in a cost-effective way that recognises the economic importance of house building in Wales, and we’re going to continue to work with the industry to ensure we balance the need to reduce energy demand in new housing with the need to meet housing demand. I don’t think we can just carry on building the same sort of houses expecting low-carbon energy not to be part of them, because clearly as energy costs rise, the houses that we have been building are not going to be what people want going forward.