6. Welsh Conservatives Debate: Offshore renewable energy

– in the Senedd at 4:24 pm on 18 January 2023.

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Photo of David Rees David Rees Labour 4:24, 18 January 2023

(Translated)

Item 6 this afternoon is the Welsh Conservatives debate on offshore renewable energy. I call on Janet Finch-Saunders to move the motion.

(Translated)

Motion NDM8183 Darren Millar

To propose that the Senedd:

1. Believes that utilising Welsh coastal waters will help to deliver a revolution in green, renewable energy.

2. Notes that an estimated 10,000 green jobs and wider benefits can be created.

3. Calls on the Welsh Government to support the development of offshore renewable energies in Wales, ensuring the delivery of a sufficiently skilled workforce and enhanced manufacturing capacity.

(Translated)

Motion moved.

Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 4:24, 18 January 2023

Diolch, Dirprwy Lywydd, and I'm very proud as a Welsh Conservative to be opening this debate on offshore renewable energy. Electricity consumption in Wales is expected to surge by up to 300 per cent by 2050, due to increased demand by the transport and heat sectors. The Welsh Government has to take accountability to ensure that we have sufficient capacity to meet this demand. It is vital that Wales does not miss out on renewable opportunities and their subsequent benefits to the community, including employment opportunities, and a boost to our economy.

The case for investment in offshore wind is clear: the UK is already viewed as a world leader in offshore wind. In 2020, there were 35 offshore windfarms off the coast of Great Britain, encompassing almost 2,200 wind turbines. Contributing 13 per cent of the UK's electricity needs, these offshore windfarms produced 40.7 TWh. Offshore windfarms are also viewed as more efficient than their on-land counterparts. This is primarily due to the higher wind speeds experienced across the sea and a lack of physical obstructions by natural or man-made structures. This subsequently results in the seas providing more space for offshore windfarms to be positioned, as well as being further away from local populations. Offshore renewables can contribute a significant amount to Wales's economy, and floating offshore wind is said to have contributed £2.2 million to the Welsh economy in recent years.

Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 4:25, 18 January 2023

I'm really delighted that rights have been granted for the Erebus project, which could create subsequent projects of approximately 300 MW in the Celtic sea. The project will initially focus on a 100 MW demonstration project, which is predicted to power over 93,000 homes per year, and this would save 151,000 tonnes of carbon emissions per year.

Of course, I'm also pleased that the proposed tidal lagoon off the Denbighshire coast received council approval. This project would see an estimated 22,000 jobs created, including between 6,000 and 7,000 at the construction phase. The tidal lagoon, which would have the capacity to generate 5—I can never say this—TWh in a year, could power up to 1 million homes. Tidal lagoons and barrages are also able to assist in flood prevention for coastal communities, so that means that investments we make now will produce savings over the long term.

Offshore renewables also have the potential to generate thousands of green jobs in Wales. It has oft been said there should never be a choice between supporting the economy and protecting the environment. Here is the perfect opportunity now to do both.

The Wales national marine plan states the Welsh Government would support further commercial deployment of offshore wind technologies. But I'm afraid, Minister, words have to be backed by action: 2020 saw the lowest annual deployment rate of new renewable capacity since 2010, with just 65 MW being commissioned. This is disproportionately low compared with the peak seen in 2015, when 1,019 MW were commissioned. Offshore wind has the second lowest number of projects in Wales, with just three. In comparison, onshore wind has 751 projects. Despite this, offshore wind has the capacity to generate 726 MW of electricity, behind only onshore wind and solar photovoltaics. So, this is particularly disconcerting since the Welsh Government recently applauded itself for being an early adopter of offshore wind.

As shadow Minister for climate change, it is very important to ensure that these projects also protect local wildlife and biodiversity. Offshore wind can positively influence biodiversity within the world seas. So, to ensure this, we should develop a strategy for reversing sea bird decline and review it at least once in every Senedd. The Minister is very aware of how I want to ensure that we do have a strategic marine spatial plan in order that there are certain areas where renewable energy producers can go and other areas where, no, those would be left for biodiversity and conservation projects.

We need to see a plan to see offshore windfarms also acting as artificial reefs, attracting more marine life than natural reefs, by functioning as fish accumulation devices. Local fishermen—. In fact, one of our main fishermen in Conwy is desperate to get involved with companies providing offshore wind near my constituency, but trying to get those talks under way, because there is the prospect of wrapping mussel ropes around the bases of wind turbines, so that way you can have both—you can actually have your marine conservation and biodiversity, but at the same time, working together in terms of renewable energy, developing a strategy for sustainable seafood harvesting from within the areas of windfarms.

So how do we ensure that these projects come to fruition and that more like them are approved in a timely fashion? We need, our renewable energy providers need, a clear and responsive framework from the Welsh Government. Last May, the Senedd unanimously accepted our legislative proposal for marine planning in Wales. This would create a duty for the Welsh Government to facilitate the creation of a national marine development plan and establish strategic resource areas for marine energy. As Welsh Conservatives, we would invest £150 million in a Wales marine energy investment fund. We would also fund a Welsh tidal feasibility study to accelerate the delivery of tidal power projects around Wales and provide open-source data for developers.

The renewable energy targets set in 2017 include generating 70 per cent of electricity consumption from renewables by 2030, and to have 1 GW of renewables owned locally by 2030. If the Welsh Government doesn’t get behind more offshore renewable projects, these targets will be virtually impossible to meet. Only last week, Minister, you were talking about having come back from COP15, and some of the fantastic ideas that you picked up whilst out there. We all agreed, cross-party, that maybe you would come back to the Chamber at some time and talk with us about what ideas you picked up from there. So, without further ado, I’ll say my bit. I know we’ve got some really interesting contributions from my own group, but also, I hope, from other Members in this Chamber. Diolch.

Photo of Delyth Jewell Delyth Jewell Plaid Cymru 4:31, 18 January 2023

(Translated)

I genuinely welcome this debate. The United Kingdom, as we’ve already heard, is among the world leaders with regard the potential of our renewable offshore energy sector. I’m sure that the word ‘potential’ will be mentioned several times in this debate, and Wales has the potential to be a giant in this sector. As things stand, the potential of this sector is being realised in only a handful of countries. In 2021, over 99.5 per cent of new offshore wind capacity was installed in just five countries, namely China, Denmark, Vietnam, the Netherlands and the United Kingdom.

We must remember, Dirprwy Lywydd, that the countries that gain a head start in this sector, and invest early, will be at an advantage in establishing supply chains and expertise in an industry that will, without a shadow of a doubt, grow and develop. The Global Wind Energy Council forecasts that there will be a 57-fold increase in international capacity by 2050. Experts expect an increase in America, South Korea and Taiwan, and by developing expertise here in Wales we could be part of that story. The potential is stratospheric in some ways. In the Celtic sea alone, the assessments of additional capacity stand at around 20 GW.

However, things must change before we can benefit from the opportunities that exist. The necessary infrastructure isn’t here in Wales. We need to develop our ports to allow sufficient space, capacity and depth for FLOW platforms. The Welsh Government and Westminster Government must help developers, ports and relevant authorities to give them the confidence to invest.

The state of grid connectivity and storage in Wales is also a problem—it’s insufficient. We must tackle the problems that face our grid. Again, there’s a need to invest in this area, and this includes green hydrogen and more efficient cabling. Of course, this expansion will mean nothing for Wales unless we can benefit from it. We need Crown Estate powers to fulfil this potential, and I would reiterate my party’s stance that these powers should be devolved. Responsibility for the Crown Estate was devolved to Scotland in 2017, but the Treasury in Westminster retains these powers in Wales. Well, they still benefit from the powers, of course, and the royal family does as well.

Finally, we must enhance green skills. I know that important work is being done in this area; Climate Cymru is holding a round-table event titled ‘Good Green Jobs for All’ on 16 February, and it involves representatives from TUC Cymru, Tata Steel, Airbus and the Wales Development Bank, and several others. We need an open mind and ambition to ensure that the workforce can derive maximum benefit from these exciting opportunities. Wales needs to be in the vanguard on this. We've already heard from Janet Finch Saunders that we need to make sure that we keep an eye on the climate emergency and nature emergency in the context of this issue. We need to ensure that energy developments do not negatively impact biodiversity, so, of course, we must be reasonable and sensitive in deciding where these developments happen, and how they happen.

But, to conclude, Dirprwy Lywydd, people talk about the green goldrush that is happening off Wales’s shores, but until we have the required investment and powers, Wales will continue to be a bystander. Wales’s resources must benefit Wales’s people. We need far-reaching change to enable this to happen.

Photo of Paul Davies Paul Davies Conservative 4:36, 18 January 2023

It gives me great pleasure to take part in this afternoon's debate. As the Member for Preseli Pembrokeshire, I've been very privileged to be at the forefront of discussions surrounding offshore renewable projects, and I'm acutely aware of just how important these projects are in meeting our energy needs for the future, as well as the huge economic benefits these developments can provide. I will be focusing my contribution today on floating offshore wind, but I know there are significant opportunities available to Wales in terms of tidal power and other renewable energy sources as well.

The Welsh Government faces a huge challenge in meeting its net-zero target and ensuring energy security, which means that developing home-grown clean energy must be an immediate priority. Floating offshore wind, for example, has the capacity to provide clean energy and also drive regional development and create supply chain opportunities. The UK Government announced its ambition to deliver up to 50 GW of offshore wind by 2030, including up to 5 GW of floating wind, with further expansion through the 2030s and beyond. As Members will know, the UK already has the largest floating windfarm in the world in Kincardine in the north sea, and this is a great example of the positive benefits of floating offshore wind to the UK. Of course, now more than ever, it's vital that Governments across the UK and at all levels are working collaboratively in order for Wales to benefit from this technology.  

In order for Wales to fully realise the benefits of offshore floating wind, as Delyth Jewell said, it's crucial that there is significant investment in our ports, and FLOWMIS, the floating offshore wind manufacturing investment scheme, launched by the UK Government next year, is an important step forward. Details are still being developed around this funding, and I sincerely hope to see ports in the Celtic sea receiving support to upgrade their infrastructure and manufacturing capability. We also need to see support and investment from the Welsh Government too. Indeed, perhaps in responding to this debate, the Minister will tell us how the Welsh Government is investing in Welsh port infrastructure, and confirm that the Welsh Government's draft budget does prioritise port development by allocating funding to upgrade their existing infrastructure. 

Photo of Paul Davies Paul Davies Conservative

Yes, I'm more than happy to take an intervention. 

Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru

To me, you won't be surprised to hear, making sure that Holyhead is the key port for the next generation of offshore wind in the Irish sea is very, very important. The free port bid developed by Ynys Môn and Stena for the north of Wales could be key in that. I'm sure the Member would be glad that the campaign was successful to get a level playing field in terms of funding for free ports in Wales, but does he also agree that the best way to bring synergy would be actually to have two free ports—north-west and south-west—two successful bids to drive forward the kind of change he wants? 

Photo of Paul Davies Paul Davies Conservative 4:39, 18 January 2023

You wouldn't be surprised to hear me say that, yes, I would agree with you on that basis, because I'd like to see a Celtic free port, and, of course, I would also support your endeavours as well and your MP Virginia Crosbie's endeavours to make sure that there's a free port also in Holyhead. 

One of the important levers to get floating offshore wind into Wales is, of course, free ports, as I've just been discussing. Henrik Pedersen, the chief executive officer of Associated British Ports, which owns a number of other ports in Wales and around the UK, recently made it clear to the Welsh Affairs Committee that either we bring these developments into Wales, or it's done in Spain, France or elsewhere, and it's really as simple as that. If we don't take and nurture these developments, then other countries will. Of course, it would be remiss of me not to again mention the Celtic free port bid, given that the bid would help secure economic benefits in my constituency, and right along the south Wales coast. I appreciate, as has already been mentioned, that there are other free port bids that have also been submitted. Nevertheless, if successful, the Celtic free port would naturally support the regeneration of communities in west Wales by attracting new businesses, jobs and investment, which would in turn boost the Welsh economy. Given the transformational impact it would have in south-west Wales, I sincerely hope we'll hear some positive news on this front in the very near future.

Members here are aware of the positive benefits of floating offshore wind and, moving forward, we need to increase grid capacity and make new grid connections available too. We know that the planning and consenting processes are already quite slow and can be difficult, and we also cannot underestimate the scale of the task facing Natural Resources Wales and the need for it to be fully resourced. Evidence from Copenhagen Infrastructure Partners to the Welsh Affairs Committee noted the ongoing discussion between the Welsh Government and Natural Resources Wales to resolve resourcing issues, particularly for their offshore renewable energy programme. They said that it was critical for consenting bodies to be appropriately resourced to be able to meet the demands that the acceleration of floating offshore wind projects will have, and they are absolutely right. Indeed, in the discussions that I've had with developers only this week, the overwhelming message was that the consenting processes in Wales are far too long and that could be really detrimental to the development of projects. And so, while this is an exciting time for the floating offshore wind sector, there are still significant challenges too. Wales really does have an opportunity to be a global leader in offshore renewable energy, and whilst today I've focused on floating offshore wind, we know there are also opportunities in terms of tidal power and other renewable energy sources as well. So, I urge Members to support this motion.

Photo of David Rees David Rees Labour 4:42, 18 January 2023

And for the record, I should notify that the Celtic free port involves my constituency as well. Carolyn Thomas.

Photo of Carolyn Thomas Carolyn Thomas Labour

Diolch. The impact of climate change is all too evident, and Wales is at the forefront of addressing the challenges of decarbonising energy generation, with policies and support for renewable energy. Plans for a publicly owned renewable energy developer ensure profits created in Wales will develop greater benefit for residents with profits reinvested in improving energy efficiency in homes in Wales and creating good-quality, home-grown, clean energy jobs, a stark contrast from the UK Government, which will continue to focus on fossil fuel extraction while failing to tackle the impact of rising energy costs on household budgets. The UK's political parties should be showing the world how to build a safe, secure and resilient net-zero energy system, using indigenous renewable energy sources, not misleading its population into believing that nuclear is needed to meet baseload power or the lights will go out.

The UK's offshore wind resources alone exceed net zero and foreseeable UK energy demand, and we could look at green hydrogen as a storage solution. Investment in the £12 million engineering centre of excellence at Coleg Llandrillo's Rhyl campus is further evidence of the Welsh Government's commitment to the renewable energy sector. The centre there will become a hub for delivering world-class education and training in engineering, with the latest specialised equipment, and will be a new institute for renewable energy technology, in partnership with RWE Renewables. A main feature of this will be a three-floor-high industrial-scale wind turbine servicing and maintenance hall, which is fantastic. It's brilliant we have this facility to provide local people in north Wales with the relevant skills to work on renewable projects in north Wales and beyond.

As the First Minister raised yesterday, the UK Government needs to invest in the national grid, which should be renationalised. It's currently not fit for purpose, with billions of profits creamed off for shareholders each year. That money should be reinvested into the grid to improve capacity, to allow for the hundreds of renewable projects currently on hold to go ahead. But what happens should the winds not blow and energy demands remain high? There were two periods in 2021 when the supply of wind energy collapsed for 10 days, forcing the national grid to buy electricity from Belgium, at the highest price Britain has ever paid to keep power flowing. Tidal lagoons, such as the north Wales tidal lagoon, and the Swansea lagoon, should be part of the energy mix to address these problems. The tide is totally reliable, as is the electricity it will generate.

This one project in north Wales could generate enough power for virtually every home in Wales, underpinning intermittent supplies of energy from wind and solar, and, unlike a nuclear power station, tidal lagoons are low technology and low cost. Given investment and support, the north Wales tidal lagoon could be up and running in 10 years—many years before a nuclear plant—with an operating life of over 120 years, and no challenging decommissioning residue. The coastal defence offered by the lagoon will protect millions of properties and infrastructure, benefiting generations to come, while mitigating the need for substantial coastal defence works by Welsh Government, who have already had to invest billions of pounds in it. It could provide a huge boost to the north Wales economy and its ability to meet the challenges of climate change and create thousands of jobs. 

The initial investment in a tidal lagoon would, at first glance, seem high. However, given that the asset created has an ultra-long operating life—twice as long as a nuclear plant and four times that of a windfarm—any investment needed truly provides excellent value and return of capital when compared to other energy projects. I would like to note, however, the expected expansion of off-shore windfarms, and tidal energy across the world could have significant environmental impacts, and those need to be carefully understood and monitored. I attended an RSPB event showing sea birds having to cope with an accumulation of wind turbines, boats, and other structures at sea, so we need a co-ordinated marine spatial plan. I trust that Welsh Government understands these risks, and will treat the nature crisis that we seriously face while deciding the future of our renewable energy production. Thank you.

Photo of Altaf Hussain Altaf Hussain Conservative 4:46, 18 January 2023

Diolch, Dirprwy Lywydd. I would like to thank my colleague, Janet, for introducing this important debate.

In the midst of an energy crisis caused by Putin’s illegal war, and with dire warnings that 2023 will be the hottest on record as a result of climate change, it is right that we look to foment a green energy revolution in Wales. The war in Ukraine has vividly underlined the need for energy security, highlighting the ease with which a vile dictator can hold an entire region’s heating and lighting hostage. But, it has also shown us just how reliant we are as a nation upon fossil fuels—fossil fuels that predominately come from geopolitically unstable regions, and are contributing massively to climate change.

Wales has felt the effects of global warming in the past week, from widespread flooding and then just days later, snow as well as sub-zero temperatures. Unpredictable extreme weather events are now a frequent occurrence. We therefore have to urgently decarbonise our energy sector, not only for the sake of our bank balances, but for the future of our planet. We need a green revolution that has learnt the lessons of the past. My region has suffered from the previous Welsh Government’s disastrous energy policies, namely technical advice note 5 and the industrial scale onshore windfarms. On the coldest day of 2022, onshore wind met less than 1 per cent of our energy demands. More energy was produced by coal-fired stations. That’s the problem with onshore wind: until we have reliable energy storage, we can't depend upon these huge windfarms spread across the Swansea and Ogmore valleys.

But, there is an alternative: offshore wind and tidal power. South Wales West can reap the benefits of pioneering these renewable technologies. It's an exciting time for the region. Not only do we have the prospect of the Celtic free port, with Port Talbot playing a major role in the development of the Celtic sea floating offshore wind project, we also are likely to see the Blue Eden project come to fruition as part of the Swansea bay city deal. Blue Eden is a groundbreaking project proposed for Swansea's waterfront that will include a newly designed tidal lagoon, featuring state-of-the-art underwater turbines generating 320 MW of renewable energy from the 9.5 km structure. The £1.7 billion project is wholly privately funded and is being led by a Bridgend company, DST Innovations, who believe that the development will create over 2,500 permanent jobs and support a further 16,000 jobs across Wales and the UK. Blue Eden is not just a tidal lagoon. It will also feature a floating solar array and a massive onshore battery plant which will not only produce batteries for renewable energy projects but also store the energy produced by Blue Eden for later use. These are the technologies we should be backing: floating offshore wind; tidal lagoon; and grid-level battery storage. That way my constituents in South Wales West can reap the benefits in terms of jobs and cheaper energy, whereas previously only the wind farm developers prospered. I urge Members to support our motion today. Diolch yn fawr.

Photo of Sam Rowlands Sam Rowlands Conservative 4:51, 18 January 2023

I'm grateful to be able to speak in today's very important Welsh Conservative debate on offshore renewable energy, tabled in the name of my colleague, Darren Millar, and, of course, opened by Janet Finch-Saunders. And since becoming a Member of the Parliament here for North Wales, I've been a huge advocate of the fantastic benefits that offshore renewable energy contains, but also the fantastic natural resources, facilities, skills and unique opportunities that we have here in Wales, and I, of course, would argue that much of this being in the region of north Wales, having the fantastic opportunities up there. And in contributing to today's debate, I'd like to focus on three pertinent issues that I think are really important when assessing this offshore renewable energy opportunity, and as we've already heard this afternoon, there is, of course, Senedd and political support for seeing delivery of more greener technology and supporting our economy as well.

As point 1 of our motion states, by utilising our coastal waters, we will help to deliver a revolution in green, renewable energy, and as has already been outlined a moment ago by Janet Finch-Saunders, we're expecting to see, by 2050, that surge of 300 per cent in electricity consumption, so there is a very near and present need to see this green revolution take place. Whether it's wind, wave or tidal energy projects, they can all play a crucial role, of course, in delivering a green economy and moving away from our current reliance on oil and gas.

Of course, with this green revolution, it's not just the green credentials, but, of course, the economic benefits of offshore renewable energy. And as point 2 of our motion states today, it’s estimated that a further 10,000 green jobs could be created if this opportunity is fully and properly grasped. Many of these jobs, of course, are well paid, with long, successful careers, which is essential in terms of certainly supporting our young people staying in some of our more rural communities, having those important jobs. In addition to this, of course, offshore renewables can contribute a significant amount towards our wider economy and that all-important supply-chain opportunity that comes with it, and that would make such a difference in some of our industrial advanced technology heartlands in north Wales, such as in Deeside and Wrexham as well.

But for the benefits and opportunities of offshore renewable energy to be fully maximised and utilised, we need to see further work from the Welsh Government. As point 3 of our motion states, we're calling on the Welsh Government to support the development of offshore renewable energies in Wales, whilst ensuring the delivery of a sufficiently skilled workforce and enhanced manufacturing capacity. So, along with this, it's crucially important that we see a more friendly environment made for investment, along with the Welsh Government working more closely with organisations and technology such as TPGen24 and other tidal-power proposals, to ensure that we see offshore renewable energy opportunities maximised and invested in Wales.

I'd like to hear today from the Minister, in the response, how the Welsh Government plans to support renewable energy schemes more than it's doing so today, along with the plans for achieving that baseload electricity position, with the support, of course, of offshore renewables. Minister, I'd also be pleased to hear an update on the tidal lagoon challenge, because I've asked previously for an update on this, and when the next stage will be announced.

So, to conclude, it's clear from my side, that, more than ever, offshore renewable energy has fantastic opportunities to deliver a greener environment, to deliver successful and well-paid jobs. And with our unique opportunities, skills and facilities here in Wales, it's a great area that we can all get behind to deliver long-lasting benefits. We must ensure that more is done to ensure that these renewable energy projects are encouraged and supported, and any slowdown in renewable energy development, deployment and investment is reversed as quickly as possible.

I look forward to the rest of the debate, Deputy Presiding Officer, and call on Members from across the Chamber to support today's motion. Diolch yn fawr iawn.

Photo of David Rees David Rees Labour 4:55, 18 January 2023

(Translated)

I call on the Minister for Climate Change, Julie James.

Photo of Julie James Julie James Labour

Diolch, Dirprwy Lywydd. I'm very glad to have the opportunity to respond to this motion today. I absolutely welcome the broad consensus that marine energy is a pillar of the economy in Wales and will become ever more so in the coming decades, and I very much associate myself with many of the comments made by Members in this debate. The Welsh Government supports the motion.

The Welsh Government's unwavering commitment to marine energy has been acknowledged by the sector. International companies invest in Wales, they say, for this reason, as well as the ability for them to bring together world-class teams of Welsh workers. Welsh manufacturers are winning repeat contracts for construction of marine energy devices, and are keen to see the Government continue to foster confidence and growth in this sector.

The Welsh Government has, with funding from the European Union, invested more than £100 million in more than a dozen marine energy projects across north, south and west Wales. Our £31 million investment in tidal energy technologies to be deployed within the Menter Môn Morlais demonstration zone includes support for Magallanes, Morlais's first berth holder to secure a contract for different support. These new opportunities sit alongside the 726 MW of generation across RWE's three offshore windfarms, already sustaining hundreds of jobs.

We are working with companies like these, new and established, as well as with other Governments and with sector bodies, through partnerships like the Celtic sea cluster, to realise, for the immediate and longer term, economic opportunities. This includes, but is not limited to, supporting the further growth of the skills base in Wales, and strengthening our infrastructure to support the expansion of manufacturing, as is called for in the motion. Our industrial policies are only part of our focus on marine energy, with energy planning and environmental protection also being important areas of our responsibilities that are vital to sustaining the marine energy sector's ongoing success.

So, Dirprwy Lywydd, having established the strong consensus around the importance of offshore marine energy, and the commitment of this Welsh Labour Government to continue to support its success, I'd like to turn to the wider context in which we operate, and particularly the role of the UK Government in enabling the green revolution to which the motion today refers.

The key difference between the approach of the Conservative and Labour Parties, in the pursuit of fostering the industries of the future, is that we believe that Governments should take an active leading role. We believe that our ambitions will not be realised if instead Government are asleep at the tiller, as their Westminster colleagues sometimes appear to quite literally be.

Photo of Andrew RT Davies Andrew RT Davies Conservative

I'm grateful for you taking the intervention. Obviously, you're on a trail now to denigrate the actions of the UK Government. Why is it the case that the first, the second, the third and the fourth largest windfarms in the world are in the United Kingdom—in the world—if the UK Government has been slow to act?

Photo of Julie James Julie James Labour

Because they could have had the sixth, seventh, eighth, ninth and tenth if they'd been a bit faster is the easiest answer to that. [Interruption.] Your motion today makes no mention—no mention at all—of the UK Government's responsibilities. It makes no mention at all of the UK Government's responsibilities. What I would say to you is this: you believe that we should be part of a union in the United Kingdom. We have mutually agreed responsibilities. You want us to step up to ours; you need to ask your political masters in Westminster to step up to theirs. Your party's motion makes no mention of the responsibility of the UK Government, as if it's entirely divorced from the developments in Wales. And it's completely understandable to me that you do that, because you have a record of colossal failure in the energy sector, and it's easier forgotten. [Interruption.] I'll remind you of one. Do you remember the Charles Hendry report? You sat on those benches opposite here and supported it—

Photo of David Rees David Rees Labour 4:59, 18 January 2023

Minister, Minister. I would like to hear the response from the Minister, and at the moment, I can't because of the noise coming from the opposition benches, so please give her a chance to respond.

Photo of Julie James Julie James Labour

You sat opposite me and you agreed with me that the Swansea bay lagoon should be built. Your own Conservative MP who looked at the report agreed that it should be built—Charles Hendry. Do you remember that? And the Government did what? It said 'no'. It said it wasn't to be built, even though it was absolutely called a 'no-brainer'. 

Photo of Andrew RT Davies Andrew RT Davies Conservative

I'm grateful to you, Minister, for being so generous with interventions. And I agree that it was a missed opportunity not to build Swansea tidal lagoon. I agree with that. But an important point that my colleague, Paul Davies, raised was the ability of NRW to license these schemes, and that was an unwritten agenda item to do on behalf of the Welsh Government. NRW would not issue the marine licences, and the developers were deeply concerned that, even if they had the go-ahead, they wouldn't have been able to proceed because those marine licences weren't forthcoming. 

Photo of Julie James Julie James Labour

The difference there, of course, is that that's a hypothetical concern, and the actual concern was that the UK Government would not support it. We have recently done an end-to-end review of marine licensing in Wales, because we want to have the most effective and efficient system. Only yesterday I discussed it with NRW's marine licensing team. So, we are absolutely on that. But we need both Governments to step up to the mark. It's just as simple as that. The UK Conservative Government has not brought forward a contracts for difference mechanism of the scale and sophistication to match the extent and nature of the opportunities in the offshore marine sector. They need to significantly expand the contracts for difference to enable more projects—and crucially more projects at different scales—to come forward if we are to become the world leaders we can be in this sector. And crucially, they need to ensure that the auction round for the Celtic sea contains robust local supply and employment conditions in it and does not just go to the highest bidder so that the profits come once to the Crown Estate and then all the other profits are exported from the UK. And you know that as well as I do, and you need to call on them to do just that. 

And in addition to that, the UK Conservative Government continues to fail to reform the development of the national grid, completely constraining our ability to deliver a planned expansion of grid infrastructure in line with a rapid and wholesale switch to renewables. I'm really sorry to have to say that, instead, the UK Government presides over a slow, expensive, piecemeal approach under which all aspects of the energy system suffer, locking communities out of opportunities for jobs, locking out the nature restoration that Janet always triumphs, and the regeneration that energy investment absolutely should and could bring. The First Minister only yesterday told you of the concerns that we have both had expressed to us, that we get this energy—really lovely, green, renewable energy with all of the resource and jobs that you have all talked about—to the beach and then where does it go? Because, without the grid, there's nowhere for it to go. So, the UK Government must—must—bring forward the grid reform—must. 

The other issue with the UK Government is that it relies far too heavily on adding costs to consumer bills rather than on general taxation in order to meet these challenges. The regulatory asset base model of development is no good, absolutely no good. It's highly regressive and it's an unfair way, which places disproportionate burdens on those who can least bear it. [Interruption.]

Photo of David Rees David Rees Labour 5:02, 18 January 2023

The Minister is waiting to speak without interventions, and I would like to listen to the Minister. I've asked once already this afternoon. All Members—all Members—need to ensure that I'm able to hear the Minister.

Photo of Julie James Julie James Labour 5:03, 18 January 2023

As I was saying, the UK Government relies far too heavily on the RAB mechanism for funding these things, which adds costs to customer bills, rather than on general taxation. It is regressive and it places a disproportionate burden on those who can least bear it, which in itself slows progress towards the energy system we need. A different model of investment is desperately required. But instead of reforming these important areas within their responsibility, the UK Government spent the whole of last year fighting like cats in a sack as they ran the UK economy into the ground—there's no getting away from that; that's what they did—only occasionally pausing to play up to the right-wing press by taking an opportunity to pick fights with anyone else they could find—desperate people fleeing conflict or essential workers to whom we all owe so much and who you were very pleased to clap for, but not so pleased to pay for, I notice. 

So, I welcome the motion's acknowledgement of the importance of the thousands of jobs to be gained in the marine sector and the importance of free ports, now that we have successfully campaigned for the UK Government to acknowledge the need for a level-playing field, as acknowledged by Rhun in his contribution. But I also wonder if the Conservative Party, in your closing remarks, will acknowledge and apologise for the thousands of jobs lost in the last few months as a result of your breathtaking incompetence and the obsession with taking chunks out of each other instead of taking charge of the green revolution that you all claim to aspire to. 

You also might want to explain why the hundreds of millions of pounds of EU funds that we invested in marine energy have not been replaced in full, or even acknolwedge that they haven't been replaced at all. So, I hope the Conservatives, in closing this debate today, will take the opportunity for once to speak up for the interests of Wales. Perhaps they might let us know what representations they have made and will be making to their UK counterparts on those areas of their responsibilities in enabling a green energy revolution. And to help you out, I’d like to suggest you join with us today in calling on the UK Government to invest in all Welsh ports, to enable them to maximise the opportunities for the deployment of offshore renewables, to work with us on addressing the UK-wide supply chain gaps, and transfer further powers relating to offshore consenting, energy storage and the Crown Estate. Those three modest and potentially rapid actions would finally show that UK Government is indeed taking the opportunities in this sector seriously, and would further advance the ambitions for Wales shared right across this Chamber.

And finally, I would like to commend the bravery of the Welsh Conservatives for bringing forward this motion, as their UK counterparts preside over the deterioration of the energy system and wider economy and open coal mines—I ask you, coal mines. I would urge you to be even more courageous and ask your UK counterparts to call a UK general election, so that we can have the Government we need for a greener, fairer, and, frankly, functioning Government. Diolch.

Photo of David Rees David Rees Labour 5:05, 18 January 2023

(Translated)

I call on Samuel Kurtz to respond to the debate.

Photo of Samuel Kurtz Samuel Kurtz Conservative

Diolch, Dirprwy Lywydd. I’ve responded to the Minister before on a debate where I’ve agreed with so much of what she said, and, for 30 seconds this afternoon, I agreed with nigh on 100 per cent of it, and then I felt, Minister, you really did miss the aim of what we were trying to do with this debate this afternoon, in the consensual nature as to what this is doing. Even only last night, there was cross-party support in terms of the event I hosted around renewable energies. I think you completely missed the mark on what we were trying to achieve here this afternoon.

But we have had, from sensible benches on my left-hand side, an emphasis in this Chamber throughout the debate about the host of opportunities Wales’s coastline has to offer: an unprecedented treasure of blue and green opportunities that not only aid our fightback against climate change, but enhance the environment, economy and our society. And unlike other parts of Britain, not only are these opportunities exclusive to one region, they are available to us around the whole coast of Wales, from the utilisation of north Wales’s coastline—as Janet so passionately spoke about at the beginning—to the abundance of untapped energy in Pembrokeshire’s floating offshore wind potential. So, let’s not be a nation that just boasts of these possibilities, that potential—as Delyth Jewell said on Zoom—that potential that we have here; let’s seize that with both hands and be part of the story, the global story, here in Wales.

And this is already under way in west Wales. We saw, as I mentioned, and heard that last night, during the Haven Waterway future energy cluster Senedd reception: Pembrokeshire is the critical energy asset to decarbonising the south Wales industrial cluster and obtaining the United Kingdom’s energy security, with the UK’s largest energy port in the Haven Waterway. But, for this to be the case, then this Government—and the UK Government, absolutely; we need to be working collaboratively—must pursue a path of cross-industry application, bringing together both the public and the private sectors, displaying an immediate focus on advancing our green energy sector. 

Photo of Samuel Kurtz Samuel Kurtz Conservative 5:08, 18 January 2023

I’ll happily take an intervention from the Member for South Wales West.

Photo of Tom Giffard Tom Giffard Conservative

I'm grateful to you for the intervention. And on that floating windfarm off the south-west Wales coast, which I know we both support, did you share my delight earlier today when we saw the Secretary of State for Wales, David T.C. Davies, confirming that the building materials for that floating offshore windfarm would be sourced as locally as possible, which would have a huge impact on the local economy, as well as our green ambitions?

Photo of Samuel Kurtz Samuel Kurtz Conservative

Absolutely. I’m very grateful to the Member for that intervention, and I share with him his delight in that announcement by the Secretary of State for Wales. It would have been nice had the Minister mentioned that in her statement earlier, advocating something positive. I’m not one to shy away from saying Welsh Government have done something well at some point—it’s few and far between, granted—but it would be nice if the Welsh Government were able to look up the M4 and say, ‘That was a good idea, UK Government; thank you very much for that.’ Because that’s what T.C. Davies has done with that statement today.

With offshore renewable energy—. If I return to my speech, with the Offshore Renewable energy Catapult, port of Milford Haven, Marine Energy Wales, RWE, Blue Gem Wind, Valero, Dragon LNG, South Hook LNG, Floventis Energy, Blue Flow Energy—too many to name—we can ensure that Pembrokeshire becomes the premier peninsula in energy production, supporting supply chains, as Tom Giffard said, and employment the length and breadth of Wales—those job prospects that were mentioned by Sam Rowlands in his contribution earlier this afternoon.

But, as we’ve heard from both Paul Davies and Altaf Hussain, the opportunities don’t just stop there. The Celtic Freeport bid is a transformational project that will accelerate Wales’s path to net zero, decarbonise south Wales’s industrial corridor, and support the growth of new industry by rolling out floating offshore wind, hydrogen production, marine energy and clean, sustainable fuels. The Member for Ynys Môn, Rhun ap Iorwerth, mentioned his advocation for the free port bid in Holyhead; I absolutely agree with him that two bids in Wales should be accepted. I think that’s a great idea. And do you know what I think? Because there are two Welsh Government Ministers, there are two UK Government Ministers, on the decision-making panel, I'm glad that they'll be able to listen to Rhun's calls, Paul's calls and my calls this afternoon that Wales receives two free ports.

But this is what a free port can bring to the Celtic sea: it can generate £5.5 million in new investment, it can bring over 16,000 new high-quality green jobs and trigger £1.4 billion in port infrastructure, those improvements to port infrastructure that we've heard this afternoon, securing a first move in the advantage of the global floating offshore wind market, bringing these exciting opportunities to south-west Wales. Investing in areas of existing infrastructure is an opportunity to work with the undisputed potential—Delyth mentioned that potential—to enhance the opportunities before us and support the industry-wide transition towards carbon zero and net zero. It's through science and technological advances that we are going to stop the damaging effects of climate change. From large-scale floating offshore wind, the advancement of tidal and wave technologies, and the yielding of both blue and green hydrogen, the Celtic sea and Wales's coastal waters will help deliver clean energy and employment for generations to come.

Carolyn Thomas mentioned the hurdles that are in the way, and used the opportunity of her five-minute contribution to bash the UK Government once again, which is what we've come to expect—I've come to expect—in my near two years in this Chamber: just bashing, bashing, bashing with no understanding of what the issues are at hand. But what we need to do is to have co-operation. This is an opportunity that we can all see, so why are we shaking our heads, Minister? Why are we not seeing the potential that's there? I'd be willing to take an intervention, Minister.

Photo of Julie James Julie James Labour 5:11, 18 January 2023

Certainly. I don't think you should be as patronising as that to other Members of this Senedd.

Photo of Samuel Kurtz Samuel Kurtz Conservative

I'm sorry, Minister, I'm not being patronising—[Interruption.] I'm not being patronising. The UK has generated only 3 per cent of the global human carbon dioxide output, yet, as Andrew R.T. Davies said, we've got the largest, second largest, third largest and fourth largest offshore windfarms. I think we should be damn proud of what we've achieved here in the United Kingdom. We should be damn proud of what Wales can do in that renewable story as well.

So, I will not listen to—. There are no political masters with me, Minister. I make my own decisions when I'm in this Chamber here, and I am proud to be able to support the Welsh Conservative group, proud—[Interruption.] As long as my whip agrees with me; that's absolutely right. I'm proud to support this motion, and I urge all the Members in the Chamber this afternoon to do so too. Diolch, Dirprwy Lywydd.

Photo of David Rees David Rees Labour 5:12, 18 January 2023

I remind Members to watch their language in their contributions.

Photo of David Rees David Rees Labour

(Translated)

The proposal is to agree the motion. Does any Member object? No. Therefore, the motion is agreed in accordance with Standing Order 12.36.

(Translated)

Motion agreed in accordance with Standing Order 12.36.