4. Statement by the Minister for Climate Change: Renewable Energy Targets

Part of the debate – in the Senedd at 3:54 pm on 24 January 2023.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 3:54, 24 January 2023

I'd like to thank the Minister for her statement. We all agree that a local supply of secure, affordable renewable energy within the context of a strong GB network is the foundation to a prosperous zero-carbon society. We need to be ambitious to achieve that community that we want to see Wales being, so I welcome your decision, Minister, to set a target for Wales to generate the equivalent of 100 per cent of our annual electricity consumption from renewable electricity by 2035. By 2050, electricity consumption is anticipated to increase by between 200 per cent and 300 per cent. This is likely to be mainly due to increased consumption in the heat and transport sectors. So, a question, Minister: alongside pursuing the roll-out of new renewable technologies, what steps will you be taking to try and encourage our community, where they can, to use less electricity?

Now, you have proposed a target for at least 1.5 GW of renewable energy capacity to be locally owned by 2035—[Interruption.] Sorry about my voice. Of the almost 73,000 locally owned renewable electricity and heat projects in Wales, nearly 90 per cent are domestic. The majority of these domestic projects are solar PV and heat pumps, which can be an expensive upfront cost for home owners, and, in our inquiry for retrofitting homes, this turned out to be quite a barrier. Now although 2020 saw 20 out of 22 local authorities increase their generation, just five saw an increase of more than 5 per cent. So, while, clearly, there is some progress being made, it is simply not rapid enough to meet your Government's near-term targets. So, what incentives, Minister, are your Government providing to empower domestic home owners and local authorities to speed up the rate of renewable energy generation?

For example, we know that business rates are a barrier to private hydro schemes. The cost of providing business rates relief to privately owned hydro projects during the 2021 financial year, when we saw so many come on line with this scheme, the last year they were eligible within the scheme, was £380,000. So, to help the drive towards producing more renewable energy and make hydro schemes on farms available, will you consider reintroducing the business rates support for landowners going forward to 2023-24?

In order for these ambitions to be worth something, there has to be a tangible framework for delivery. This includes the development of green jobs, investing in skills and training to deliver well-paid opportunities to the workforce who will be needed to make these renewable projects a success. Therefore, it was disappointing that the publication of the Net Zero Wales skills plan in the autumn of 2022 has been delayed. This means that Wales is the only Government across the whole of UK not to have published anything on net zero skills. So, will you commit, Minister, to the publication of a coherent plan for education and skills training so that these highly paid green jobs can actually become a reality?

Finally, I recently held a meeting with the Crown Estate. They are fully focused on delivery. They do have a wonderful track record of successfully leasing sea bed, to the point that the UK is the second most successful market in the world. As they have made clear to me, there is an opportunity for Wales themselves to be global leaders if we move at pace and we encourage businesses to invest. So, Minister, will you please confirm that you are fully focused on delivery and moving at pace, and, as such, will you rule out pursuing Plaid Cymru's what can only be determined obsession with devolving the Crown Estate? If you don't agree with me, could you tell me what you believe the benefits would be by the devolution of the Crown Estate? But we as a group remain firmly opposed to that. Thank you. Diolch, Dirprwy Lywydd.