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Energy and environment

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We want large scale, clean and efficient energy for Wales.

The energy and environment sector has been identified as one of importance for Wales. It is also recognised as having an important enabling role across the wider economy.

This sector includes:

  • energy generation and use
  • renewable energy
  • emerging low carbon energy and technologies
  • environmental goods and services.

The energy and environment sector also provides:

  • opportunities for creating jobs for a sustainable economy
  • delivering resource efficiency
  • driving forward the low carbon, low waste agenda.

Key priorities 

We’re working with the sector panel to develop and implement a strategy and action plan for the Energy and Environment sector in Wales. 
Sub sectors
The sector panel has identified those sub sectors which present the most potential for Wales. They are:
New enterprise
Emerging new technologies and services that respond to the low carbon low waste imperative. For example, smart grid, distribution automation, and micro generation.
Renewable and distributed energy
Established and emerging Welsh knowledge base with opportunities presented in responding to ambitious national targets e.g. marine energy, wind energy.
Support the already well established environmental goods and services sector in Wales and respond to current and future opportunities. For example, waste management technologies and environmental management services.
Energy intensive users
Derive opportunities from responding to low carbon demands.
Large generation
Opportunities to build upon considerable Welsh strengths and capacity in pursuit of emerging UK and international markets. For example, decarbonising large energy.
The sector panel has also outlined the opportunities, key challenges and barriers that need to be addressed to achieve the ambition of placing Wales at the forefront of the transition to a low carbon low waste economy. They are:
  • regulatory frameworks
  • financial frameworks
  • strategic infrastructure
  • skills
  • supply chain capacity
  • research, development and innovation
The sector panel has recommended the above as potential areas for Welsh Government support and intervention.

The sector has demonstrated above average growth at the UK level. With targeted intervention, it is recognised that Wales can gain competitive advantages and benefit from growing markets within this sector.

It is estimated that there could be £50 bn of investments in low carbon electricity production in Wales over the next 10 to 15 years.

Analysis undertaken by Innovas Consulting in 2014 identified that Wales is home to a thriving, well balanced and growing energy and environmental sector with a market value (sales turnover) of £4.76 bn employing about 58,000 people in 2,066 companies.

On the basis of its natural resources, existing knowledge base, academic strengths, and the presence of global players, Wales is well placed to take a leading role in the transition to a low carbon, low waste economy. Further information can be found on Business Wales (external link).

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