6. Plaid Cymru Debate: Establishing a Publicly Owned Energy Company

Part of the debate – in the Senedd at 4:24 pm on 6 June 2018.

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Photo of Siân Gwenllian Siân Gwenllian Plaid Cymru 4:24, 6 June 2018

(Translated)

In my constituency in Arfon, we have three successful community hydroelectricity schemes, with plans in the pipeline for further initiatives. These are exactly the kinds of initiatives that need support, and establishing the Ynni Cymru company, as recommended Plaid Cymru today, could give a significant boost to this sector, on top of the other benefits that have been outlined.

The community sector has witnessed a great deal of change over the past few years: from the time before the feed-in tariffs, when 100 per cent grants were available, to the era of the FIT, when communities were seen to benefit from green energy, to the demise of the FIT and the less stable period that followed.

The future is rather uncertain at present as a result, but Ynni Cymru could give a clear focus to the work of these community initiatives, emphasising the collaboration between Natural Resources Wales, the local authorities, and the communities themselves. If the Swansea bay tidal lagoon is not to go ahead, then the funds should be invested in renewable energy initiatives instead, including community-owned projects.

Ynni Ogwen is one of these schemes. Local people represent 85 per cent of the shareholders, and almost £0.5 million was raised within two months in local shares. We’re not talking about a wealthy area here. We’re talking about a post-industrial community that is relatively poor, but it is a proud community that has seen the value of generating clean energy for the benefit of the local community.

Ynni Ogwen is more than a hydro scheme. It also successfully raises awareness of environmental issues and climate change, and it is the community itself that has generated this clean energy. They own it, and this gives confidence to the community.

Those associated with initiatives like Ynni Ogwen say clearly that more financial investment is needed, as well as greater structural and structured support from local and central Government, including practical support. Community groups often do not have engineering or environmental expertise, and buying in these kinds of expertise can be very expensive. This is the role that Ynni Cymru could fulfil, providing the practical expert support in an accessible manner.

In a series of meetings on community energy held across Wales with the support of Bangor University in the spring of this year, a forum was held to discuss future opportunities and challenges for community energy in Wales. Ynni Ogwen, Awel Aman Tawe and the Swansea community energy scheme played a central role in these events. The discussions led to a number of conclusions. The sector tells us that robust strategic support is needed for community energy in Wales; consistency is needed with regard to the level of support that is available, moving away from the regular changes we have seen; we need to develop a way to facilitate direct trade between local schemes and local businesses and users; local government and health boards must commit to buying energy locally; departments such as the departments for economic development, planning and energy must work together much more; and we also need to give the sector much more encouragement across Wales, drawing attention to all of the benefits. This is work that could be done effectively by Ynni Cymru.

Tackling fuel poverty should be central to the development of community energy. With 23 per cent of households in Wales living in fuel poverty, the focus must be on tackling poverty. The Centre for Sustainable Energy has found that projects tend to emanate, if truth be told, from wealthier areas. As it happens, Ynni Ogwen is an exception to that rule, but we do need more support in those low-income communities to support community energy schemes so that those communities can share in the economic, social and health-related benefits that the projects will bring.

The creation of Ynni Cymru could bring all of these strands together and give a clear focus and direction to the work that needs to be developed over the coming years, bringing the groups together, providing support and expertise the length and breadth of Wales—in rural and urban areas alike. Doing so would allow the community sector to grow quickly, contributing to the creation of a renewable energy sector that is exciting in Wales, allowing us to realise the full potential of our natural resources for the benefit of our nation.