Part of the debate – in the Senedd at 5:32 pm on 26 September 2017.
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.