9. 9. Short Debate: Delivering a Smarter Energy Future for Wales — Energy Policy Priorities for the New Welsh Government

Part of the debate – in the Senedd at 6:21 pm on 15 June 2016.

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Photo of Lesley Griffiths Lesley Griffiths Labour 6:21, 15 June 2016

That’s exactly what we were discussing; we’ve got five big developers in Wales who perhaps would not be persuaded to build the sort of houses that we are talking about. So, what I did with the Cabinet Secretary for Communities and Children this morning, and officials, was talk about how we can perhaps identify a local authority, maybe, that we could do some sort of pilot with. There would be a lot of risk involved—we accept that—but I think if we are going to be serious about doing this, that’s the sort of thing that we have to do.

Going back to community benefits, I have a farm in my own constituency in Wrexham that has an anaerobic digester, and going back to community benefits, it was quite difficult for the farm owners who built the anaerobic digester to engage with the community. I mean, this was several years ago now, and I think going forward it probably is much easier now.

We’ve also developed a public sector pipeline of energy efficiency, renewable energy and heat projects with a capital value of over £400 million. To deliver this opportunity, we’ve developed the invest-to-save green growth finance package, which has committed £13 million of repayable funding to public sector green growth projects this financial year, building on more than £20 million previously committed. This funding will be recycled into further projects as it’s repaid.

We’ve also set up our Re:fit Cymru service to deliver retrofit that guarantees energy savings for public bodies. This programme alone is expected to deliver £30 million of energy efficiency and renewable energy measures in the next three years.

We will need to ensure that power networks are fit to meet the changes we expect to occur over the coming decades. We need to see more local ownership of generation assets, and more investment in the updating of the energy infrastructure to enable us to balance local supply and demand more effectively. And we do need to be very clear about the challenges that local energy would bring, including the capacity and resource needed to manage the system effectively, and the need for significant changes in the way the industry is currently regulated. However, this will have many benefits, creating decent jobs and keeping costs down through local ownership.

Energy storage should be particularly valuable technology in deploying more renewables, particularly in areas of Wales that have significant grid constraints, and it’s likely to play an increasingly important role in the energy system. Storage does form part of our approach to innovation at a local level, and our smart living programme is supporting a number of innovative projects that will provide learning, as well as putting us on the map in the world of smarter energy use.

The Welsh Government local energy service is also supporting innovative local projects. The service helps communities to make well-informed decisions about the right energy options for them, based on their needs and the available resources.

We do already provide a higher level of grant support than in Scotland or England for the earliest, riskiest stages of project development, and our recirculating loan fund is more flexible than Scotland’s CARES programme. The fund can provide loans for both development and capital construction, and we currently have £4.5 million available for investment.

I think we all accept that if we are to transform the way we think about energy, we do need to work with a range of partners to share the need for, and benefits from, the transition. As I said at the outset, the committee’s report I really do think will be important in assisting me and the rest of Government in bringing about this transition, and I very much look forward to working with a wide range of people, including all Members, in taking forward this important policy area within my portfolio. Diolch.