5. Following the UK Government's decision not to back the Swansea bay tidal lagoon, what action is the Welsh Government taking to encourage and support energy production schemes in Wales? OAQ52490

Wales has the potential to create significant new low-carbon generation, which could provide economic and social benefits. Welsh Government policies and support mechanisms have created a positive environment for developing new energy generation. Our focus now is on ensuring Wales benefits over the long term from any further development.

Thank you, Cabinet Secretary. We now know that the UK Government based their decision upon inaccurate figures, understating the true benefit and cost of the Swansea bay tidal lagoon. An audit undertaken by the Centre for Economics and Business Research shows that the six proposed lagoons would only be slightly more expensive than Hinkley C. Cabinet Secretary, in light of this revelation, will you be demanding that the UK Government re-evaluate the proposal for Swansea bay?

I know the UK Government has now published a summary of its value-for-money assessment, and as I mentioned in an earlier answer, we're now reviewing that, and I think it depends what conclusions we come to from that as to what action we take. It did suggest the proposed tidal lagoon at Swansea bay would have a capital cost of more than three times as much per unit of electricity as the Hinkley Point C nuclear power station. So, I think these are figures that we need to look in depth at, and I'm sure we will have a view, and then we can decide on what action we want to take.

The Westminster Government seems to have an energy policy based upon offshore wind and nuclear power. As prototypes are by their very nature more expensive, and the future storage costs of nuclear are capped—we would never have had a nuclear power station built if they weren't capped—it is not a level playing field. Did the Westminster Government explain why the price for nuclear—which, as we all know, is an over-60-year-old technology—was acceptable, but the same price, which was the final offer of the same strike price for the tidal lagoon as for Hinkley, was not acceptable? Have the Westminster Government explained why one is acceptable and one isn't, when one's a prototype and one's a 60-year-old technology with a capped final cost?

No, and I think that's a very important point that you raise. I've just mentioned in my answer to Caroline Jones that we are looking at that summary value-for-money assessment now. I think you're right; their policy does seem to focus on just offshore and nuclear power. Of course, nuclear power, whilst being low carbon, is certainly not renewable energy. I've had discussions with Claire Perry, the Parliamentary Under-Secretary of State, around this, and about the need to encourage further onshore wind, and certainly solar power, too. I've also written to Greg Clark following the decision around the importance of making sure that we engage and support other renewable energy technologies.

Both Caroline Jones and Mike Hedges have made some very valid and important points when it comes to the Swansea tidal lagoon, and Welsh Conservatives have been clear that we hope that there can be a way forward found for that project. I appreciate that this is a setback, but the Welsh Government certainly have our support in finding alternative ways in the future to progress the project.

Of course, there are smaller scale schemes as well across Wales that are going ahead. You may be aware of Prosiect Gwyrdd in my constituency—I hope I pronounced that right—which is actually a collaboration between the five councils in south-east Wales, including Monmouthshire, that seeks the most cost-effective and environmentally friendly way to deal with residual waste that cannot be recycled or composted, but that can be burnt to produce steam and provide energy. Would you agree with me that this is a great example of collaboration between local authorities, Cabinet Secretary, and also a great way to deal with waste that cannot be dealt with in an otherwise environmentally friendly way? What are you doing to extend these types of projects, and to roll them out across the rest of Wales?

Yes, I would agree with you. It's good to see collaboration at that scale between the five local authorities. It's really important that we get a mix of energy, and certainly community energy projects. I've seen some fantastic ones right across Wales. You'll also be aware—I think it's in your constituency; it's certainly Monmouthshire council—of the big solar farm that they've got there. We loaned, I think, about £4 million from Welsh Government. So, I think it is really good to see local authorities collaborating, coming up with innovative technologies to help us, again, make sure we reach our carbon targets.