The next item on our agenda is the statement by the Cabinet Secretary for Environment and Rural Affairs on energy. I call on the Cabinet Secretary to make the statement—Lesley Griffiths.

Diolch, Presiding Officer. Last December, I set out my priorities in relation to energy. And, today, I want to focus on accelerating the transition of the energy system in Wales, particularly through the increased deployment of renewable energy.

Our energy system has undergone dramatic changes in recent years, and there is further transformational change to come. The Paris agreement is gaining momentum and, with it, a clear commitment to decarbonise economies and energy systems across the globe. Wales must compete in global low-carbon markets, particularly now we face a future outside the EU, and the UK Government is aiming to phase out unabated coal by 2025.

The ability to meet our needs from clean energy is, therefore, part of the foundation for delivering the future set out in our new national strategy, ‘Prosperity for All’. In parallel with the need to decarbonise, the economic case for renewables continues to strengthen, with increased deployment of renewables lowering costs, as confirmed by the recent contracts for difference auction. We’ve seen significant progress in Wales, with the Government in 2005 setting a target of generating 7 TWh of renewable energy every year by 2020.

The UK Committee on Climate Change reported earlier this year that we are on track to deliver this ambitious target. Electricity generation from renewables in Wales has trebled since 2010. Two projects that have recently become operational help to symbolise the change taking place. Pen y Cymoedd wind farm, which the First Minister will be opening later this week, is the largest onshore wind project in England and Wales. Vattenfall has supported and created more 1,000 jobs in Wales and the project delivers £1.8 million annually into a community benefit fund. On a much smaller, community scale, we have Awel Aman Tawe’s wind development. It is wholly community owned, meaning all its profits are kept within the Aman valley and their shareholders.

We need many more such projects at all scales and technologies to transform our energy system, play our part in tackling climate change, deliver benefits for Wales and address likely increases in electricity needs as we use more electricity for transport and heating. Other low-carbon energy sources will also be important, with Wylfa Newydd representing the largest private sector investment in Wales in a generation.

The UK Government has a critical role to play in keeping this momentum going. However, I am determined to drive change using the levers we have here in Wales. This is why I am today announcing targets to focus action across Wales and capture the benefits for Wales. We have worked with expert organisations to pull together a solid and robust evidence base. We held a successful event in July, involving experts as well as those with an interest in the issue to help inform our thinking.

Firstly, I’m setting a target of Wales generating 70 per cent of its electricity consumption from renewable energy by 2030. The latest data show that, in 2015, we generated 32 per cent of electricity consumption in Wales from renewable energy. Secondly, I am setting a target for 1 GW of renewable electricity capacity in Wales to be locally owned by 2030. In 2014, 330 MW of renewable electricity capacity in Wales was locally owned.

Finally, by 2020, I expect new renewable energy projects to have at least an element of local ownership. I will be issuing a call for evidence on the issue, however my expectation is for new projects to involve local people and provide benefits to Wales, as well as to external shareholders. I believe these are stretching but realistic targets that will help us to decarbonise our energy system, reduce long-term costs and deliver greater benefits to Wales. I am clear we need to take action to support delivery of these targets.

Firstly, in this increasingly complex world, we need to provide more direction on certain aspects of our energy policy, particularly for those making difficult decisions in planning and permitting. I will be considering the need for energy alongside the other ways we use land. This will have implications across my portfolio for how we manage our natural resources.

We’ve already seen some excellent work with local ownership. I’ve agreed core funding for Community Energy Wales to enable them to work with developers on behalf of communities in Wales, looking at how we secure greater local involvement from the design stage onwards. I will also be focusing on heat. Though the 70 per cent target does not include heat, the potential future impact of electrifying heat is significant for both demand and supply elements of the target. The UK Committee on Climate Change has recommended we provide clearer policy on heat for Wales and I will be taking this forward.

Secondly, we will work collectively to ensure our grid infrastructure enables a low-carbon model of electricity generation. The electricity and gas grid we need for the future will look very different to what we have now. The right flexible and affordable grid infrastructure is a fundamental enabler to connect the new generation that Wales needs for a prosperous low-carbon future. I will be working closely with the regulator, electricity grid operators, academics, innovators and developers to identify cost-effective ways of ensuring we have a fit-for-purpose grid.

Thirdly, the targets I am announcing today have implications for our planning system. We have made significant progress in ensuring we have a streamlined yet robust planning system in place, for example by establishing the development of a national significance regime. I will shortly be consulting on amending permitted development rights for rooftop solar and small-scale, low-risk hydro projects. Alongside this, we’re working on the national development framework, which will be an all-Wales development plan and will reflect the policies of the Welsh Government.

Furthermore, we will keep our national planning policy under review so that it continues to support delivery of our energy ambitions. I will be shortly consulting on the national marine plan, which will set the context for the offshore renewable sector. I’m also looking to the UK Government to deliver on areas that are not devolved to Wales. The UK has invested over £9 billion in developing the renewables sector. Costs have successfully been driven down, however the rapid changes of UK Government policy have decimated large parts of the renewable sector, with developments potentially valuable to Wales stopped in their tracks by UK Ministers.

The bulk of UK Government renewables investment is now going to offshore wind projects outside Wales. This investment is paid for by Welsh bill payers, amongst others. There is a need for the bulk of energy supply to come from the most affordable technologies if the costs are to be found from energy bills. These technologies therefore need a route to market if we are to meet our ambitious targets and deliver the most benefit to Welsh bill payers. That is why I have called repeatedly on UK Government to stop the ideological exclusion of onshore wind and solar from the CFD process. This is not simply a Welsh Government view. I am working with some of my Brexit ministerial round table participants to build a real and balanced consensus on what will best meet Wales’s needs.

It is also important to support emerging and innovative technologies such as wave and tidal, which the current CFD auction rounds singularly fail to do. Recent evidence of the falling costs of offshore wind demonstrate what similar support could do for other emerging sectors. Welsh Government is doing its share. We’ve made around one hundred million €100m of EU structural funds available for investment in marine energy. The SPECIFIC initiative is taking ideas from thoughts through to market-ready technologies: leading-edge work based here in Wales.

However, we do not have either the levers or the funds to do everything. We do need a mature debate in the UK about how to structure both support for research, development and innovation, bringing forward to market the technologies of the future at the same time as we ensure the bulk of our energy needs are delivered from affordable, low-carbon sources.

We are already capturing value from energy development in Wales. Welsh Government is a statutory consultee in the planning process for the Wylfa Newydd project and we are working with UK Government and Horizon Nuclear Power to ensure the developing plans work for Wales and that this multibillion pound project provides a positive and lasting legacy to Wales.

On Swansea bay tidal lagoon, we continue to press the UK Government for clarity on support and a response to the Hendry review. I will continue to build on the co-ordinated and coherent direction that I set out last December and will provide a further update on other aspects of that statement, including a focus on energy efficiency, in December this year. Our key priority remains to deliver a prosperous and secure, low-carbon Wales.

There are many strands to this statement and I will not test your patience, Llywydd, by going through all of them, but I do want to start by saying there’s a broad range of political consensus here in the shift to renewables and to decarbonise our energy sector. So, in that tone I offer these comments and questions.

I think the Cabinet Secretary is right to say we need transformational change—I think that’s what the public also demand now—and you have noted that we’ve made some fairly rapid progress recently, and electricity generated from renewables has trebled since 2010, and in 2012-13 alone it increased by 9 per cent. Obviously, that does indicate that we should raise our sights and set very big ambitions.

So, I think it is appropriate to compare what we are planning to do with the Scottish experience. Just as a mark, there are differences, and there are different approaches, no doubt, appropriate. But your target of 70 per cent of electricity consumption from renewables by 2030—it’s currently 32 per cent, so that’s a little over double in 15 years—is that the pace that we think is achievable now? But the target in Scotland is 100 per cent by 2020. It’s currently at 60 per cent. They’re already far advanced of us. So, I think the basic question is: is this transformation enough, and do we need to push for even more change? Particularly relating to the Scottish target of 100 per cent, when do you think you might, or a future Government might, be able to match this, given the action you intend to take as Minister in setting us on that path?

I think everyone would welcome the move to more community ownership in whole or part, but I would like some details on the consultation fairly soon. When is it going to start? If you’re hoping to see these advances by 2020, we need to get a move on. So, I think at some point soon you will need to make that clear.

There is no target for heat, despite your reference in the statement, and as you note, we have been urged by the UK Committee on Climate Change to look at this area of policy. So, when are you going to do that? Scotland does have a target, so, again, I think that needs to be borne in mind.

You’re right to look at the potential of microgeneration. I think that’s going to grow in importance. It also involves people, and they can be part of the solution in a very direct way—so rooftop solar and small-scale hydro are really important. They’re rapidly changing technologies, particularly solar, and becoming ever more viable. So, I think that is important.

Finally, I think there are great gains for Wales from wave and tidal that are yet to be captured, and we all support the Welsh Government in pushing for the Swansea tidal lagoon, and the Welsh Conservative group here has very strongly expressed its support and continues to do so through all channels available to us. Generally, investment in innovation and research in the marine sector is important, so publishing your marine plan needs to be urgently completed, because, as you said, it sets the context for offshore and nearshore projects. Here, we really do have potential to become a world leader, and that should be our ambition.

You said lots of things about land use and planning, which I will take another opportunity to follow up and scrutinise you on. We would welcome even higher targets and more ambition. But, as a start, we welcome that this is, at least, beginning down the road we need to travel.

I thank David Melding for welcoming the statement and also for his questions. I was very clear to officials that I wanted ambitious, but achievable targets. I hear what you say about Scotland, and I obviously realise they do have a target of 1 GW of locally owned generation, for instance, by 2020, and our target is 2030. But I don’t think you can compare, and I think you alluded to that. You can’t directly compare Scotland with us: they’ve got a larger land area; they’ve got a greater renewable energy resource than we do in Wales. But I think it is right that we do have these very ambitious targets to ensure that that transformational change speeds up now. I think the Paris agreement really has focused everybody’s minds. I know, ahead of Conference of the Parties 23 in Bonn, which is being held in November, energy, and renewable energy, is going to be one of the main points of discussion.

You referred to the community ownership, and we have been supporting the community renewable energy sector for several years now. I think it started back in 2010, but, again, we need to continue to do that, but we need to up our game. I do think in the discussions that I’ve had with commercial developers, for instance, that they really welcome the opportunity of taking forward new projects in partnership with local communities. So, I will be consulting, I hope to do so before the end of this year, to start that process.

You referred to heat not being part of our target, and I mentioned in my opening remarks that we’ve worked with expert organisations to develop our thinking around the energy targets. The UK Committee on Climate Change has peer reviewed our evidence paper and are very broadly content with our approach. It was from those discussions that it was decided that the target shouldn’t have heat in it. But, obviously, as we look at transport particularly using more electricity, and heat is the main user of electricity in Wales, we do need to make sure that our policy is correct. As I mentioned in my opening remarks, I will be driving that forward.

In relation to tidal power, it is imperative we know what the UK Government are going to do on Hendry. I’m not referring to any specific project, because, obviously, I have planning responsibilities also. But, I constantly write to the UK Government, and I keep getting responses saying, ‘In due course,’ which means nothing to me. Hendry reported in January. I last wrote to Richard Harrington who, since the election, is the Minister responsible, a month ago—I’m still awaiting a reply—asking for a timeline, because I think it’s really important that we know where the UK Government are coming from on this. You heard the First Minister say in questions today that he’s very concerned that it’s not now going ahead, but I do want to assure Members that I am pressing the UK Government, and any help that anybody can give me from the benches opposite would be very much appreciated.

May I welcome today’s statement, in general terms, by the Cabinet Secretary because it has put more meat on the bones from her statement back in December of last year? Certainly, we can now see specific figures and targets in terms of renewables, and specifically renewable electricity. Just to give some context here, we have just had the best summer ever in terms of renewable energy throughout the whole of the UK. Between 21 June and 22 September, 52 per cent of the electricity consumed throughout the UK came from renewable and low-carbon sources, and 24 per cent came specifically from purely renewable sources. So, the increase is very substantial indeed, and the impact is very positive too. Four years ago, in the summer of 2014, 491g of carbon dioxide per kilowatt hour were produced. Now, this year, that had been more than halved—or more than halved, I should say—to 216g. So, it’s a positive impact in terms of climate change and in the carbon dioxide emitted. That’s the context in which the Minister makes her statement.

May I start with the figures and the targets that were announced today? Plaid Cymru, in 2016, stood on a manifesto of producing 100 per cent of electricity from renewable sources by 2035. Today, we see a target of 70 per cent by 2030. Now, 70 per cent isn’t 100 per cent and it falls short of the target that we hoped to achieve within five years of that date, but it is an improvement, and we now have a figure. We can now scrutinise the Government, but also assist the Government, because I want to be in a position in Plaid Cymru to support these things and to encourage Government to do more wherever possible. So, I very much hope that she will keep that figure under review and will take the opportunity, as has happened in Scotland, to enhance the target if necessary or if possible, so that we can move this process apace. She will recall that we have seen a significant price drop in terms of wind energy over the last year or two, and solar over the past five years, which means that perhaps even more financial efficiencies can be made as we develop this further.

The second thing that she mentioned, which I warmly welcome, is this principle of community ownership. I very much hope that we will see that delivered. In my view, much of the opposition that we see to renewable energy development sometimes emerges from the fact that people feel that it has been done to them, rather than them being part of the project from the very outset, and community ownership is of huge assistance in getting over that problem. There are some people who will oppose for opposition’s sake, of course, but it certainly helps in disseminating information and support. I’m disappointed that the Cabinet Secretary hasn’t decided to adopt one of our ideas, namely the concept of an independent energy company for Wales—something such as ‘Ynni Cymru’ or ‘Energy Wales’—as something that could bridge the gap between the community, the Government and the commercial side of things, as a vehicle that could take ownership of some of these developments on behalf of the local community. What I’m asking, therefore, is, as there is a consultation on community ownership, has the door been closed entirely on this concept of an energy company for Wales, or is that something that could be discussed again in the consultation on ownership?

The third point that I wanted to mention is the issues of the grid. Unless we see significant improvements—and not just improvements, but a transformation of the grid—then we won’t be able to achieve some of the targets and the vision outlined in the statement. I welcome the fact that the Government wishes to work with the owners of the grid and those responsible for the national grid, but I also recall that the Government itself—. The statement blames the Westminster Government from time to time, but this Government was also responsible for preventing grid developments in mid Wales because the Government dragged its feet and got cold feet because so many people had opposed those improvements. That certainly stopped two or three onshore wind energy proposals that would have been developed if it weren’t for that and would have contributed significantly to the targets that we currently have. So, I very much hope that the Cabinet Secretary, on this occasion, will—well, not oppose—but will be willing to be robust and innovative in the face of any opposition to making proper improvements to the grid.

I regret that there are no specific targets for heat either. I hear what the Government has had to say on that. Can the Cabinet Secretary confirm that it is her intention to develop targets in due time for the heat system, and also for transportation? The decarbonisation of transport is exceptionally important in the bigger picture. It means, in my view, that we need to invest in infrastructure for electric vehicles. We’ve heard some discussion on that already this afternoon, but I would like to see the Government being more innovative still in investing in our infrastructure for electric vehicles, and I would like to hear her comments on developing targets on infrastructure in that regard.

Os caf i orffen—llawer o gwestiynau, llawer o bwyntiau, yn y datganiad hwn, os caf ddweud hynny. Ond ychydig o bwyntiau terfynol, yn gyflym iawn: croesawaf y ffaith y bydd rhagdybiaeth datblygu a ganiateir o blaid solar pen tŷ a dŵr. Hoffwn iddi ystyried a ddylid ymestyn hyn i ddatblygiadau gwynt ar y fferm, ac rwy'n siarad yn benodol am dyrbinau gwynt sy'n uniongyrchol gysylltiedig â gweithgareddau fferm, nid yn unig ar gyfer gwerthu trydan masnachol, oherwydd gellir ymdrin â hynny mewn ffordd wahanol. Ond rwy'n credu y byddai yn dderbyniol iawn, ar ôl Brexit, i lawer o ffermwyr yng Nghymru pe bai dull datblygu a ganiateir i ddatblygu gwynt ar y fferm, a chredaf y byddai'n helpu llawer o ffermwyr i wneud eu busnesau yn fwy hyfyw.

Rwy’n gorffen gyda'r pwynt olaf yr ydym wedi bod yn ei drafod ynghylch yr angen am y morlyn llanw ym Mae Abertawe fel arloeswr, fel y nodwyd yn glir yn adolygiad Hendry. Rydw i'n un o'r buddsoddwyr cymunedol yno, ynghyd â channoedd o bobl leol, sydd am weld hyn yn cael ei wneud. Rydyn ni’n credu y gall ynni adnewyddadwy nid yn unig ddigwydd a bod yn rhan o'n cymysgedd ynni yng Nghymru, ond gallwn fod yn arwain y byd, yn enwedig yng ngoleuni ynni'r llanw. Rwy'n croesawu'n fawr yr hyn sydd eisoes wedi'i gyhoeddi ar gyfer Ynys Môn a Sir Benfro o ran meysydd ynni'r llanw i'w datblygu. Ond mae'r morlyn ynddo'i hun yn brosiect sy’n barod i fynd, ac rwy’n annog y Llywodraeth hon a Llywodraeth San Steffan i roi'r golau gwyrdd iddo.

I thank Simon Thomas for a very long list of questions, which I will endeavour to cover. Again, you raised a similar point to David Melding about the 100 per cent target. I look very carefully at targets and, as I say, we did take expert advice, but I don’t think the grid would support a 100 per cent target at the moment. I don’t think the current UK Government energy market mechanisms would support that at the moment. We are connected to a global energy system, and I just don’t think at the current time it would be the right thing to do. But it’s like any target—and I hear what you say about Plaid Cymru’s target was for 100 per cent by 2035. Well, who knows? From 2030 to 2035, we could make it. It’s like our recycling targets: we’re there already, we’re there two years beforehand, so I’m looking at whether we should be changing that target. So, obviously, we can certainly keep it under review.

You referred to the work that we’re doing with community energy and local ownership. We’ve got over 330 MW of renewable generation capacity owned by our communities and locally-owned organisations. So, that’s a significant amount, and it’s a good amount to build on. You’ll be aware that our local energy service currently works closely with 34 different groups across Wales at the current time, and we are supporting a further two at the moment, which are due to be completed by the end of this year. I think that will take us up, then, to about 17. So, as I say, I will be consulting later in the year.

Simon Thomas referred to the possibility of an energy company for Wales, which was an idea that you and I met over, and we certainly took it forward. I did make a written statement last month, indicating that we do not believe a strong enough case was made for establishing an umbrella supply company for Wales. Again, we collected evidence and views about the potential for energy services companies. We held a series of consultations back in March, and that really created a very clear consensus, I think, around the risks and the challenges and the tensions that would be inherent if we did set up and run an energy supply company. I think many people—and I know I’ve discussed this with Simon—felt that the Government had a sort of trusted neutral voice, if you like, and that could be lost if we then did participate in the market. So, the conclusion was that the risks of creating a Welsh Government supply company could heavily outweigh the potential benefits. Have we closed the door? No, of course not. We will always listen to views. So, maybe it is something that we consider looking at, at a future date.

You raised grid flexibility. Clearly, we need a modern, efficient, reliable energy infrastructure, and that has to be alongside a very robust and fit-for-purpose grid, and that grid has to enable our low-carbon energy objectives to be delivered. So, we are engaging with National Grid—I’ve met National Grid; I know the First Minister’s met the chief executive of National Grid—to make sure that their delivery plans include a grid that’s absolutely fit for purpose for what we want to do in Wales.

You mentioned about heat, and I think I gave the reasons why we didn’t choose to include heat. But you’re right; we need to have that development of that policy forward. It’s so important if we are going to reach our decarbonisation targets. So, that will be policy that we are developing.

The point you mentioned about onshore wind on farms—I have seen a couple of farms where farmers have diversified already. But you’re quite right; Brexit has, I think, made diversification that much more of an issue being discussed by farmers, and I think we will see more of that going forward.

In relation to the Hendry review, you will have heard my earlier answer to David Melding. It’s very important we get a response as quickly as possible. They really are dragging their heels now, and we do need to know what they’re doing. But, certainly, we remain supportive of that principle, but it’s for UK Government to trigger the green light, not us.

And you mentioned the funding that Ken Skates announced, I think it was yesterday, on Anglesey, which I agree is very welcome.

It’s always a pleasure to listen to the Cabinet Secretary, but I’m afraid I can’t be quite so complimentary about the contents of the statement itself. I’m going to introduce a certain diversity into the proceedings this afternoon, as might be expected. I want to question the assumptions upon which the statement is made. I’ve got three points to make altogether.

First of all, the statement says that the Paris agreement is gaining momentum and there’s a clear commitment to decarbonise economies and energy systems across the globe. But I’m afraid all the evidence is the opposite. China and India between them emit more than a third of the world’s carbon dioxide. China is planning to double its output of carbon dioxide in the next 15 years, and India to triple it. That’s one reason why President Trump of the United States, which also emits 15 per cent of the world’s carbon dioxide, wants to resile from the Paris accords altogether, because he says that he was elected to represent the citizens of Pittsburgh, not Paris. And what motivates him is that there is a let-out clause in the Paris agreement itself, article 4(7), which says:

‘The extent to which developing country Parties will effectively implement their commitments under the Convention…will take fully into account that economic and social development and poverty eradication are the first and overriding priorities of the developing country Parties.’

That is why, although China and India have signed up in principle to the fundamental theories behind the climate change convention, they’re not actually going to contribute anything in practical terms to its realisation. Even in Germany, which fully signed up to anti-global warming policies, carbon dioxide emissions have risen in each of the last eight years, including the present one. So, I’m afraid the world is not going in the direction that the Cabinet Secretary assumes.

Secondly, there is an assumption here that the economic case for renewables continues to strengthen and that renewables are lower in costs, as confirmed by the recent contracts for difference auction. Well, I’m afraid it isn’t possible to draw that inference from these prices, and I commend to the Cabinet Secretary this publication by Professor Gordon Hughes, professor of economics at the University of Edinburgh, who analyses this in his publication, ‘Offshore Wind Strike Prices: Behind the headlines’. His fundamental point here is that these are complicated contracts, but are fundamentally options. They’re not actually necessarily going to be realised, these projects, at the prices that have been awarded. And, at £74.75 for the Triton Knoll contract, and £57 for the Hornsea Two and Moray East contracts, the three that have recently been in the headlines in the newspapers—that would represent, if it did correspond to a fall in operating costs and construction costs of 55 per cent for offshore wind in the last five years. That is simply not credible. Even though there have been advances in turbine technology, there is no way in which costs of construction and development in offshore waters could possibly have fallen by 55 per cent in that period. In fact, to some extent, because we’re having to go further and further offshore in order to build these windfarms, then costs are likely to increase, or at least the extra costs of going into deeper waters will outweigh the technology costs.

So, what we’re seeing here is a replication of what happened 20 years ago in relation to the fossil fuel obligation, because there 247 windfarm contracts were awarded, but only 57 were actually built—a sixth of the capacity that was intended. What happened there was that the early contracts that had high prices were built and the later contracts with low prices weren’t, and that’s exactly what we’re seeing here. So, this is all part of the Government’s policy—the UK Government as well as the Welsh Government—of soaking the poor. We produce nothing in global terms in carbon dioxide—Wales, probably 0.1 per cent of world emissions. We’re the poorest part of the United Kingdom, with a quarter of our households in fuel poverty, and yet the household bills of ordinary people are rising year in and year out—£115 a year at the moment in green levies on the average electricity bill. That will rise, by 2020, to £170, and, by 2030, to £245 a year in constant pounds. I think this is an appalling policy to impose greater and greater costs upon those who are least able to withstand them.

Well, Neil Hamilton, I think we’re going to have to agree to disagree. I did have a little bet when I was doing some prep for the statement today—you know, how long it would take you to mention the word ‘China’. So, I’m glad you didn’t disappoint me. But the scientific evidence is clear: climate change is happening, and greenhouse gas emissions from man are extremely likely to be the dominant cause. We have to take action now. The longer we leave it, the more expensive it becomes, on so many levels. It just poses such a great risk to everything—to economic development, to global food security, to health, and, frankly, I’ve seen what Trump wants to do in relation to the Paris agreement. I was out in Marrakech last year at COP22; I look forward to going to COP23. And you really are in the minority. I accept that we are poles apart on this, but we have renewable energy here in Wales, and it’s absolutely vital that, to achieve our decarbonisation targets, we embrace it.

Offshore wind: we continue to support offshore wind. It remains one of the most developed and commercially viable technologies currently available, and I do believe that it can really significantly contribute to our renewable energy targets, and I think you referred to the contracts for difference option results, and that really confirmed that this industry is now very, very competitive, and I’m going to be working closely with the Crown estate, with any potential developers, to ensure those developments progress within the environmental limits.

Talking about the contracts for difference, as I said, I really do want the UK Government—and I’ve called on the UK Government repeatedly in correspondence—to stop the ideological exclusion of onshore wind and solar from the CFD process. I really wish that they would consider our views and the impact of the decisions they’re taking on Wales when they are making these decisions on contracts for difference.

I really don’t know where you think we’re going to get our energy from. We have to move away from fossil fuel. I mentioned the UK Government has announced they want to get rid of abatement for coal by 2025. We have to look at new technologies, and there will be several consultations going forward. The national marine plan is very important. I think it was David Melding that mentioned that before, and I will be getting on very quickly—certainly, within the next month, I hope to be going out to consultation on the national marine plan also.

I welcome the Cabinet Secretary’s statement on energy. I know that burning carbon creates carbon dioxide. I also know that carbon dioxide is a greenhouse gas. Thus, we need to reduce our use of carbon-based fuels and reduce our carbon dioxide production, unless we want to be wading in here up to our knees in water.

So, I welcome the proposed target for Wales to be generating 70 per cent of its electrical consumption from renewable energy by 2030. Two questions on this. Firstly, are intermediate targets going to be set so that progress can be checked against them and action be taken if they fall behind, or they can be increased if we’re doing better than expected? The second question is: what progress is being made on battery technology to store electricity created by wind energy at peak production time?

On the Swansea bay tidal lagoon, I welcome the Minister’s commitment to continue to press the UK Government for clarity on support and a response to the Hendry review, which was unequivocal in its support for a tidal lagoon. Some of us had doubts when it was set up that it was being kicked into the long grass. What we had was the most positive report I’ve ever seen, where I think he used words such as, ‘This is a no-regrets policy; if you do it and it doesn’t work, there’s still no regrets’.

The benefits it gives in design skills and the creation of supply chains—which will happen if Swansea is the first—if we wait until other countries create them, we will lose these opportunities. The first gains unique opportunities—Aarhus in Denmark with wind power. Those that follow inevitably import from the innovators. So, can I ask the Cabinet Secretary to put even further pressure on the Government at Westminster that we do need a tidal lagoon in Swansea? Tidal lagoons are the way forward for renewable energy.

I thank Mike Hedges for his questions. In relation to intermediate targets, no, I’ve set those targets. However, what I will do—when I brought forward the statement on energy last December, I committed to reporting annually. So, this December, I will be bringing forward an update on the policy statement from last year. I think, as part of that policy statement, we could then give the latest data. Because as I say, the data that I was looking at for renewable energy, for instance, was 2015. So, hopefully, by December, we’ll have more updated data. So, we could build that into the annual reports.

Storage is a big issue, and certainly in discussions that I’ve had with individuals, with RenewableUK et cetera, they all point to storage being something that we need to get our heads around much quicker than perhaps we are doing. So, again, those policies are being looked at and, clearly, discussions will need to go on about storage as we increase our renewable energy—both what we’re producing and usage.

You’re right about the Hendry review, it certainly was a very unequivocal report, and maybe the UK Government shouldn’t have asked the question if they don’t like the answer. I don’t think I can put any more pressure than I am doing on them. As I say, the last letter I wrote was a month ago—and I’m still awaiting a response from Richard Harrington—asking him to set out a timescale. Before the election, it was Jesse Norman and Greg Clark that I was writing to. Every response I’ve had, I’m afraid, has been light on detail. But I do want to assure Members that we are putting as much pressure as we can on the UK Government to bring forward a response as soon as possible.

Cabinet Secretary, in your statement today you’ve made it clear that the Welsh Government has invested around €100 million of EU structural funds in marine energy, which I very much welcome. However, recently, it’s been brought to my attention that the Welsh Government has invested in certain marine projects off the coast of Pembrokeshire, one of which will be in the ownership of a local authority based in England.

Now, some of my constituents are concerned that, if projects in Wales are run by local authorities outside Wales, then we could end up where places like Pembrokeshire, and indeed the whole of Wales, don’t actually get the local benefits from such projects. So, in the circumstances, can you tell us how you and your officials are making sure that any grant funding provided to marine projects will be reinvested in Welsh communities? And can you tell us how your department is monitoring the effectiveness of such projects to make sure that communities in Wales actually benefit? Because you refer in your statement today to the importance of community-owned projects.

I thank Paul Davies for those questions. Certainly, monitoring is continuous. I’d be very happy to give the Member an up-to-date response in relation to the project you refer to. I think Wales is very well placed to take advantage of any of the opportunities associated with the blue economy. We have a high tidal range, for instance, and of course I want to see Welsh companies doing that, and officials absolutely know that that’s the case—that we’re happy to offer them the right support, and I think that is a very strong message to give them. I think we also need a strong message from the UK Government around support for marine energy, and I know that the developers who are actively involved in Wales at the current time in relation to marine energy have indicated an expected investment of £1.4 billion, so a significant amount. But I will write to the Member with an update on that particular one.

I’m really pleased to see this statement today by you, Cabinet Secretary, and I’m really pleased to see the continued support with innovation in marine energy projects, as something that I’ve been involved in for a very long time. I’m not going to repeat—I’m sure you’ll all be pleased—all that’s gone before, but I will point to one area of particular interest for me, and that is that, as part of the £1.3 billion Swansea bay city region deal signed earlier this year, £76 million has been pledged for the Pembroke Dock marine project. That will be used to develop innovation in offshore renewable marine energy technology, and that project itself has four pillars. I’m hoping that will bring some skills and innovation and training into the area that I both live in and represent. So, I’m wondering if you have any further information regarding that particular scheme in terms of when it might start and how many opportunities might be available.

I don’t have those figures to hand, but you’re quite right; it’s really important that we have the innovation, we have the research and development, we make sure the training and skills work alongside these projects. It’s certainly a significant amount of money, and I obviously meet with my colleague Julie James, The Minister for skills, in relation to ensuring that we have those skills ready to go, and it’s the same with the tidal lagoon. We need to make sure that once the UK Government do give the green light, we have those skills there.

I welcome this statement; I think it’s absolutely essential that Wales tackles and does all it can to mitigate climate change, because I think we’ve got to accept that it’s the poorest of people in the world who suffer from what climate change is bringing to us. I think we have an absolute duty to do this, so I welcome this statement very much. I welcome the ambitious targets, the 70 per cent I welcome, and I also welcome—as many people have—the issue of local ownership, because we do know that some countries, in particular Germany, have made a much bigger step ahead than we have, and I think it’s very good if there’s going to be a drive on this.

Does the Cabinet Secretary believe that there is a case, or opportunity, really, for more local government involvement in renewable energy? I’ve raised in this Chamber many times the development of the Radyr weir scheme in my constituency in Cardiff North. That’s actually been operating for a year now, and it has generated electricity equivalent of powering 500 average-sized family homes during that time, and there’s also been some downtime when they fine-tuned the mechanics, so I think in the future it will generate even more. So, could she say what future she thinks—or what opportunities there could be given to local government to work and develop this sort of scheme? And the other point I just wanted to make was that I do think it would be a good move, really, to look again at the Wales energy supply company.

I thank Julie Morgan for those questions. You’re absolutely right about climate change; we’ve obviously got a long-standing commitment around climate change. We’re only a small country, but I’m very proud of the commitment that we’ve given on the action that we take on climate change. You mentioned Germany, and certainly, out in Marrakesh at COP22, to talk to some of the very small regions about the fantastic work they were doing around decarbonisation and renewable energy was incredible. Some of the targets they have set were—again, like ours—very ambitious, and it was good to hear how they were achieving those targets.

I certainly do think there is a role for local government, and you mentioned the project in your own constituency of Cardiff North. I opened a hydro scheme that had been done in conjunction, again, with the community, the developer and also with—I think it was Merthyr Tydfil council. So, I think certainly local government do have a role to play.

You will have heard my earlier answer to Simon Thomas that we haven’t absolutely closed the door on it; I just took the advice following the events that were held in March, and at the current time I don’t think it’s the right time for us to do that, but certainly we can look at it. And if it’s possible to have it as part of the consultation, I’ll be very happy to do that.

I thank the Cabinet Secretary.