3. What analysis has the Welsh Government undertaken of the opportunities outlined in the Institute of Welsh Affairs’s case study, 'Swansea Bay City Region: A Renewable Energy Future’? OAQ52429

Well, can I welcome the recent report that IWA produced, under their Re-energising Wales project, on the potential for the region? It will be extremely valuable for us, and particularly for decision makers in the Swansea area, in order to inform the direction of the city deal.

Thank you, First Minister. Not content with cancelling green trains to Swansea and pulling the plug on subsidies for renewable energy, yesterday the Tory Government pulled the plug on the tidal lagoon, when their own former energy Minister said it would be a no-regrets policy. The Welsh Secretary had the brass neck to tour the TV studios and say that the 30p annual subsidy was expensive, when he's happy to subsidise Hinkley by £12 for every customer a year. So, I think we should call out the hypocrisy of the Tories and the way they've led investors up the garden path who are going to think twice about putting money into innovative technology again. But I think the message of the IWA report is that there is still a possibility for us to lead the way in Wales, and it's for us, as the Welsh Government, to be at the front of that. The case study set out in detail how Wales can meet 100 per cent of its renewable energy demand by 2035 just from green technologies. The city region leaders are supportive. Will the First Minister make sure that the Welsh Government gives its full-throated support to this effort to make sure we still can be leaders in this field?

Yes, and we've already done it, of course, in Pembrokeshire particularly, with projects that we've supported there. I think the problem is that the mood music created around the announcement today is that tidal energy is too expensive. That's the message that's been given. Now, that will apply wherever potential investors are looking at tidal energy projects. If I were a tidal investor now, I'd start thinking twice about investing in the UK, because the UK Government haven't given any encouragement to tidal energy. It's a matter of great regret. What they have said is, 'Well, nuclear is there and offshore wind'—not onshore, but offshore wind is something they want to pursue. The message is that tidal energy is not seen as important by the UK Government, and I regret that very much. Bear in mind that all we were asking for was the same financial deal as was offered to Hinkley. No more than that. We weren't asking for special favours beyond that. If the contract for difference was there in the same way it was for Hinkley, I believe the lagoon could have moved forward, but the UK Government did not accept that, and that is something I know that is a matter for regret not just for Members on this side of the house, but also for Members in other parties as well.

It was my understanding that Ministers made it clear that the door was still open on tidal energy and future discussions on that. But let's talk about something that we can do something about more quickly, and that is rapid and fast electrical vehicle charging points. The same report mentioned that Wales is behind the rest of the UK in the number of charging points available, and suggested as a key action that increasing the number of charging points at major transport nodes, park and rides and tourist attractions should happen fairly quickly. Now, Swansea bay city region is awash with these types of locations, and, as the role of transport within the city deal area is something we're all talking about now, including local businesses, can you tell me whether the money you've given for scoping out the South Wales West metro includes perhaps increasing the number of electrical charging points in the bay, and have you had any further conversations with Ford about whether they're considering electric car production within the South Wales West region?

Sorry, I missed the last point.

Oh—whether you've had any conversations with Ford about electric car production in South Wales West.

Well, there have been discussions with Ford on a number of potential opportunities. To my mind, battery production is where the future lies. The technology's not far away when batteries will become far better used. I suspect that the step change will come if the day comes when people are physically able to take a battery out of the car that has discharged and then able to put one in that has been charged, so there's no delay in terms of the charge. We're a long way from that point at the moment, because the batteries are huge.

In terms of charging points, Tesla, of course, have invested heavily in charging points, but the reality is that there are very few Teslas on the road. There are charging points available in, I think, almost every service station at the moment as well. A number of retailers, like Ikea, for example, have charging points as well in the shops, and it is possible to—. There is an app available that gives you an idea of where all the charging points are. So, we want to roll out charging points across Wales. We know how important that is, and that is something that will be a priority for us as a Government.

The IWA report on the Swansea bay region certainly sets out an exciting vision of the region's energy future. Taking ownership and control is a theme that runs throughout that report, as you know, and it clearly shows that the growth of renewable energy projects in Wales is still dependent, to a large extent, on Westminster. Yesterday certainly proved that point, as regards the tidal lagoon decision.

In view of your earlier comments to Leanne Wood, we look forward to your full support tomorrow in the vote of no confidence in the Secretary of State for Wales. But notwithstanding, whilst the Wales Act 2017 transfers some new powers to Wales for projects generating less than 350 MW, for example, do you now believe that Wales should, as Scotland has, have a greater influence over the strategy to develop offshore wind and marine energy technology as well as setting subsidy levels and priorities for supporting community energy and energy efficiency schemes?

Yes, but we still wouldn't control the market. That's the issue—the GB energy market. We need to have a Government in London that sees renewable energy as important and is willing to make the investments in renewable energy that are going to be needed for the future. That is not the case at the moment. What we've seen over the years are solar panels having their subsidies removed, the same for onshore wind, and now what we have is a situation where the UK Government has limited itself to a small number of ways of generating energy. They need to be more expansive than that, and be far bolder in terms of supporting projects like the tidal lagoon.