Renewable energy deep dive biannual recommendations update 3 - Economy and social value

Recommendation  

We will work with the UK Government to bring new investment to ports in Wales. We will work with ports in Wales to identify opportunities for specialisation and collaboration, and to make Welsh ports investment ready. We call on The Crown Estate and UK Government to maximise the value of supply chain and infrastructure development opportunities in Wales from their leasing rounds.

Key highlights / milestones  

• Early stage support through match funding of up to £1m provided to Pembroke Port
• The Marine Energy Programme (MEP) Team have been working with both MHPA/Pembroke Port and ABP/Port Talbot to encourage them to collaborate to provide a multi-port approach to the very significant opportunities presented by FLOW in the Celtic Sea. Collaboration with local authority partners, led to a successful bid for Free port status based on FLOW for MHPA/Pembroke Port and ABP/Port Talbot.
• Erebus project on hold in wake of Contracts for Difference Allocation Round 5 – no offshore wind developers bid, including Blue Gem Wind
• Floating Offshore Wind Port Infrastructure & Manufacturing Fund (FLOWMIS) announcement expected soon.
• Ongoing discussions with ports indicate that revenue uncertainty remains a potential concern. Welsh Government believe there is a risk that this could have a depressive effect on port investment (smaller stages of upgrade over a longer period of time) which could in turn reduce the scale of benefits delivered in Wales.
• Holyhead Breakwater has received WG funding to secure the future of the Holyhead Port

Next steps towards completion

Over the next six months we will: 

• Monitor and finalise grants to both ports
• Meet Blue Gem Wind to discuss next steps (if any) with Erebus
• Continue discussions with ports on collaboration and actions needed to maximise the socio-economic benefits to Wales of FLOW
• Continue to explore UKIB / UKG under-writing of revenue uncertainty with partners (e.g. TCE) to encourage early full infrastructure upgrades at the ports
• North Wales Growth Deal is working with the Port of Holyhead to support the delivery of Port infrastructure
• Consider the potential of operations and Maintenance hubs

Recommendation    

As we develop a net zero skills action plan by spring 2022 we will support greater industry collaboration to maximise supply chain opportunities in Wales.

Key highlights / milestones    

• Since the publication of the Plan in February 2023 activity has been focused on delivering the 36 actions and on-going awareness raising.
• Action 1 committed to undertake a public consultation to help deepen our understanding of sector specific skills needs and included targeted questions around the definition, employer challenges and support, cross-cutting themes.
• The consultation closed on 31 December 2023 and the responses are being analysed by Miller Research Ltd.
• The Final report is due the end of March with the publication of the Sector Roadmaps in May 2024 with engagement events.
• A new element of the Flexible Skills Programme (FSP) was introduced in October 2023 aimed at employers it provides 50% to upskill its workforce.
• Green Personal Learning accounts and Personal Learning accounts are delivering current skills needs.
• A review is underway to create a new Employer support package for the Summer of 2024. 
• WG supported the North Wales Regional Skills Partnership to carry out detail work in relation to skills gap in North Wales. This has now been published. 

Next steps towards completion

• This recommendation is complete. We will continue to take forward the recommendations from the Renewable Energy Deep Dive.
• iCrossing has been commissioned to develop a Glossary of Terminology on Green / Net Zero Skills and will align to Climate Action Wales.
• An Equality Action Plan is being developed to support the wider plan.
• FE mapping of NZ courses is also underway with a report due the end of March 2024.

Recommendation  

Working with industry, we will scope a programme of work to maximise the installation of renewables, flexibility and storage on business and industrial sites. The programme will explore mechanisms to support and de-risk investment.

Key highlights / milestones    

• NZIW continues to go from strength to strength, in this period it has been successful in securing a “Launchpad” South West Wales which involved up to £2.2m funding from UKGov in the first round.
• NZIW recently led a bid to develop the North East Wales Industrial Cluster (NEW-ID)  and was awarded up to £711k from UKGov structures for place-based decarbonisation, within the two clean growth hubs at Deeside and Wrexham.
• Officials are currently encouraging industry to apply for the UKGov IETF fund Phase Three, applications close in April 2024.

Next steps towards completion

• Officials will continue work to encourage industry to apply for the UK Gov IETF fund Phase Three, applications close in April 2024.