We will build on changes we introduced in 2014 to further reduce the climate impact of new developments in Wales. I anticipate this work will start towards the middle of 2017. We’re also increasing investments in public sector energy-efficiency projects. By the end of this financial year, we expect to have invested approximately £35 million in cost-reducing projects. I will continue to work with the Permanent Secretary to consider how we can achieve our energy-efficiency goals on the Welsh Government estate. We will continue to support energy-intensive industries, including steel, to become more energy efficient through our environmental protection scheme. Our scheme alleviates some of the issues of high overall energy costs. However, we continue to call on UK Government to deal with systemic problems of energy pricing for these industries.

Second, reducing reliance on energy from fossil fuels: this Government’s commitment to support renewable energy projects is set out in ‘Taking Wales Forward’. It will form a key element of the four cross-cutting strategies driving forward our priorities. The low-carbon transition will impact on how we generate and use electricity and heat, and transform the way we meet our transport needs. As this sector is a major fossil fuel user, I will be working with my colleague Ken Skates, the Cabinet Secretary for Economy and Infrastructure, on the joint implications for our portfolios. We are committed to supporting low-carbon vehicles and modal shift for passengers and freight in order to reduce emissions from transport. To deliver secure and affordable low-carbon energy, we need a mix of different technologies and sizes, from community scale to major projects. In the medium term, this means transitioning to low-carbon generation, which includes nuclear. We will maximise the role of renewable generation. Storage and smart technology will play a key enabling role, and carbon capture and other innovations may play a part. We will develop our evidence base to identify the energy pathways delivering the best outcomes for Wales. This will enable us to set ambitious yet realistic targets for renewables, including community energy.

We have established ground-breaking legislative frameworks in relation to planning, natural resource management and decarbonisation, underpinned by our Well-being of Future Generations (Wales) Act 2015. We will implement these strategic frameworks to guide the right energy developments to the right places for Wales. My aim now is to put mechanisms in place to deliver a clearer and more streamlined system. This will include establishing our national development framework, consulting on our draft marine plan, consulting on our innovative approach to natural resource planning, producing area statements to help identify opportunities for renewable energy, and reflecting this potential within local development plans, establishing the first carbon budgets and low-carbon transition plan, and developing an effective consenting regime for Wales as we receive powers to consent developments up to 350 MW.

I’m grateful to all who contributed to the recent Environment and Sustainability Committee report and the task and finish groups on marine energy and rural energy. We will now focus on implementing the practical recommendations. Where possible, we will streamline the number of consents for a project. The Wales Bill devolves control over onshore oil and gas activity in Wales. Gas plays a role in the transition. However, we must manage its deployment sensibly. I will continue our precautionary approach to unconventional gas activity, including opposing fracking. Coal has played a central role in Wales’s economic development. However, we must move to more sustainable energy sources.

I agree with the UK Government’s proposals to phase out unabated coal-fired generation by 2025. I will shortly be consulting on changes to planning policy to restrict proposals for new coal extraction. I will provide a strong voice for Wales in the wider energy system, sharing our priorities with the UK Government, Ofgem, National Grid and others. This includes supporting renewable generation, including least-cost technologies such as solar and wind, continuing to support emerging technologies such as marine energy, ensuring regulation supports decarbonisation and decentralisation of energy, and making our grid infrastructure fit for purpose.

My third priority is to drive the energy transition to deliver maximum benefits for Wales. We will develop our skills base and provide practical and financial support for energy opportunities that accelerate the low-carbon transition. Wales has opportunities to host major energy projects, which can provide significant benefits to Wales. These include nuclear and marine in Anglesey, and tidal lagoons and innovative energy elements in the Swansea city region bid. We will continue to support generation at different scales, from farm scale to Wylfa Newydd, the largest infrastructure project Wales will see in a generation. We await the outcome of the Hendry tidal lagoons review with interest.

Our Smart Living programme brings together public, private and academic institutions around practical demonstration projects. It will create new business models for low-carbon vehicles, storage and local grid management. We will also continue to work with developers to identify whether new small modular reactors can add value to our skills base in Wales. We will continue to listen, evolving our support to the changing needs of the public sector, businesses and communities. I believe this co-ordinated and coherent approach to energy will deliver a prosperous and secure low-carbon Wales.