Diolch, Lywydd. Our energy system is going through significant change. This statement reflects this changing context, and sets out Welsh Government priorities in relation to energy.

The Paris agreement is driving the international decarbonisation agenda. We are seeing rapid developments in renewables, storage and demand reduction. At COP22 in Marrakesh, I met leaders who’ve made progress in developing low-carbon societies more resilient in coping with future challenges. In contrast, the UK Government has created policy uncertainty and undermined investor confidence in energy. I want to be explicit about the priorities for Wales and how we will deliver them.

This Government remains committed to the ambitions set out in ‘Energy Wales’. I have three clear priorities for this Assembly. First, we will reduce the amount of energy we use in Wales. Second, we will reduce our reliance on energy generated from fossil fuels. Third, we will actively manage the transition to a low-carbon economy. We will drive this transition to deliver maximum benefits for Wales, providing strategic leadership, and reducing uncertainty. We must continue to grow the economy at the same time as reducing emissions and managing affordability. I will ensure our policies and support are aligned and work towards delivering a low-carbon energy system for Wales.

First, reducing the energy we use in Wales: we will continue our flagship energy efficiency programmes, focusing on vulnerable people at risk of fuel poverty. This futureproofs homes against rising energy prices, reduces emissions, and helps people stay warm and healthy. We have spent £217 million improving over 39,000 homes in the past five years. Last year, the Nest scheme delivered average energy bill savings of over £400 per household. I know my colleague the Minister for Finance and Local Government is looking at the detail of the autumn statement and discussing Welsh Government priorities for additional spending. When the current building regulations sustainability review is complete, we will turn our attention to improving the energy performance of new buildings.