The Future Energy Grid

1. Questions to the First Minister – in the Senedd on 12 October 2021.

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Photo of Russell George Russell George Conservative

(Translated)

6. What progress has the Welsh Government made in developing a strategic plan for the future energy grid to 2050? OQ56989

Photo of Mark Drakeford Mark Drakeford Labour 2:13, 12 October 2021

Llywydd, Wales needs an integrated, long-term plan for the gas and electricity networks. This is essential to achieve our climate change ambitions. The tender for an independent partner to lead this work was published on 29 September, and a contractor is expected to be appointed in November.

Photo of Russell George Russell George Conservative

Diolch, Llywydd. Thank you, First Minister, for your reply. I can understand that there is a need for a planned approach to developing grid networks, and taking a strategic approach. I saw the press release from the Welsh Government last month in regard to taking a joint approach, and the Welsh Government taking a lead in terms of bringing relevant parties together to access and gather evidence, and to consider scenarios and advice. What I'm concerned about, First Minister, is that all parties are being brought together in this regard. You will be aware of the long-term history in my own constituency in regard to the mid-Wales connection project.

I think that what is important, when you do bring parties together, is that you bring all partners, including tourism groups, businesses that might be affected, the Campaign for the Protection of Rural Wales and a number of other parties. It seems like, to date—and I hope that you will tell me that I'm wrong—the only parties involved are renewable energy companies themselves, network distributors and the National Grid. Will there be an opportunity for these other stakeholders that I have mentioned to also be involved in this piece of work that your Government is leading on? 

Photo of Mark Drakeford Mark Drakeford Labour 2:14, 12 October 2021

I thank Russell George for that. I thank him for the question, which I think is one of the very important questions on the order paper today. Wales has suffered from the way in which the current system has developed. He will know that the way that grid developments in Wales have happened is on a bid basis. Bids are made from gas and electricity grid companies to Ofgem. These bids compete with one another for investment, and Ofgem has operated on the basis that they will only agree enhanced grid connections when the demand is already there and demonstrated. Now, the purpose of the Welsh Government's initiative is to bring those companies, those six companies, around the table with the Welsh Government and with Ofgem to plan the future. And that will have to, I think, persuade Ofgem to fund grid connections where there is anticipated demand as well as already demonstrated demand.

Now, I take the point that Russell George has made about the importance of taking a wider set of interests with us on this journey, and I think there’s a real appetite in Wales from communities and individuals to be part of the way in which we make our energy system fit for the climate change emergency that we face. I’ve been following closely the Garn Fach development that is proposed for the Member’s own constituency. I saw recently that over 400 people had replied to the pre-consultation process and that support for the Garn Fach proposals outnumbered those who had reservations about it by more than 2:1. I think that tells me that views are changing in Wales, and that people have a higher understanding today of the obligation that we all have to play our part in meeting the challenge that is already on our doorstep, and that we have to be able to do that in all parts of Wales, and there is a job of work, as the Member has said, to make sure that all voices are part of that conversation, while the conversation itself is firmly concentrated on making sure that we all do everything we can to deal with the difficulties we know this planet is already experiencing.