5. Statement by the Minister for Economy: Offshore Marine Energy

Part of the debate – in the Senedd at 3:53 pm on 17 May 2022.

Alert me about debates like this

Photo of Luke Fletcher Luke Fletcher Plaid Cymru 3:53, 17 May 2022

As we already know, Wales is well positioned to play a global leading role in marine energy, with 1,200 km of coastline and up to 6 GW of generating capacity through the potential for wave and tidal stream. If we are to reach net zero by 2050, or perhaps before, we need to massively increase renewable energy generation in Wales. The Minister and Deputy Minister said in a letter to the Climate Change, Environment, and Infrastructure Committee that, since 2019, work has been under way to stimulate renewable tidal power generation in the seas around Wales and to help to support other forms of marine energy generation. As a recent report on the Welsh Government's marine policies by the Senedd's climate change committee makes clear, with reference to evidence from Jess Hooper, there has been a lack of policy support for tidal range developments from the UK Government, and that the large scale of some projects meant that they did not fall within the competence of Welsh Government, such as the north Wales tidal lagoon project. What's clear is that a lack of powers, a lack of policy support and a lack of financial resources, not to mention severe grid constraints, skills gaps and insufficient port infrastructure, are seriously holding us back when it comes to fully realising our marine energy potential, our ability to respond to climate, and our ability to build a greener and fairer economy in the process. Is now not the time to seek greater powers over large-scale renewable energy projects? I'd like to ask the Minister what conversations he's had with his ministerial colleagues in Welsh Government as well as the UK Government, regarding the further devolution of powers over large-scale energy projects, so those that are above 350MW, does he agree that we need further powers in order to realise our potential for offshore energy development?

Now, the report also notes the number of jobs that will be created through offshore renewables, with Marine Energy Wales stating that floating offshore wind alone is expected to generate 3,000 jobs by 2030, if the early mover opportunity is seized. David Jones of Simply Blue Energy said that, because of the predicted need for jobs in the sector, which is, by the way, 70,000 by 2026 to deliver the current programme, his company had engaged with local schools and further education, focusing on science, technology, engineering and mathematics and skills development. As part of the Deputy Minister for Climate Change's deep dive on renewable energy, he confirmed that Welsh Government will develop a net-zero skills action plan by spring 2022. Well, of course, we're in spring 2022, and, whilst I welcome the Government's continued commitment to delivering on that plan, could the Minister provide a new rough estimate on when we will see this plan? Because to achieve our ambitions around net zero, I can't emphasise enough how important it will be to get to grips with the skills gap in the green economy, and I would be interested if the Minister could also provide timescales for implementation and the Government's targets with regard to green job creation in the sector by 2050 as soon as possible. 

Finally, according to UKRI's own figures for 2018 and 2019, research councils and Innovate UK spent £5.4 billion across the UK, only £131 million of which was spent in Wales. This amounted to 2.4 per cent of the total and £42 per capita, the lowest such figure among the UK's comparable nations and regions. If research spending were devolved and fed through the Barnett formula, then the Welsh Government could expect to receive an allocation equivalent to around 5.9 per cent of the total. Given that Wales lags behind the rest of the UK when it comes to research and innovation funding, I'd like to hear if, or rather how, the Minister plans to scale up research and innovation funding in the marine energy sector to help them develop and deliver positive outcomes.