Renewable energy deep dive biannual recommendations update 2 - 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  

This recommendation will be an ongoing priority especially as FLOW opportunities are linked to the release of sea-bed leases as well as future decisions for the Contract for Difference process (see recommendation 11). 

• Early stage support through match funding of up to £1m has been provided to Port Talbot and discussions are continuing with Pembroke Port;
• A financial model has been developed and discussed with the ports, exploring the revenue risk perspective, given the timing and visibility of the long-term development pipeline. A refined model will be used to explore discussions and possible options with possible co-funders – the Crown Estate, UKIB and UKG.

Next steps towards completion

Our priority actions over the next 6 months include:

• Discussions with the UK Infrastructure Bank on potential investment – planned for the next 3 to 6 months, linked to the bullet below;
• Progressing a multiport strategy for Floating Offshore Wind (FLOW) for the development of both Port Talbot and Pembroke. The two ports have jointly bid with local authority partners for freeport status and have linked their bids for FLOWMIS funding (final process/announcement awaited);
• Continuing to explore the opportunities to secure more projects from fixed wind in north Wales.

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    

The Net Zero Skills Action Plan was published on 28 February 2023.  It includes 7 key areas for action:

• Gain an understanding of the current skills position for each emission sector;
• Build a shared understanding of net zero skills across Wales;
• Grow a skilled workforce to meet our net zero commitments;
• Strengthen the skills system;
• Promote opportunities for early years and young people to realise their potential;
• Cross-government and partnership approach to meet our skills commitment;
• Just transition.

The plan is available here: Net zero skills action plan

Next steps towards completion

This recommendation is complete.

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    

Key highlights over this period include:

• Net Zero Industry Wales (NZIW) becoming a incorporate company with a Board of Directors;
• NZIW working on a bid for a Launchpad, which is a UK Gov funded programme;
• Following the launch of the South Wales Industrial Cluster (SWIC) Industrial Cluster plan working with industry to develop pathways to decarbonisation.

Next steps towards completion

This recommendation will lead to an ongoing work programme for Net Zero Industry Wales. Our priorities over the next 6 months include:

• Completion of the governance of this body and an expected programme of works, including exploiting opportunities for industrial rooftop solar, to be published;
• Continuing the collaboration to progress the SWIC Industrial Cluster plan.