The House of Commons Welsh Affairs Committee has called for a specific “Ten Point Plan” for renewable in energy in Wales be developed and published this year.
Wales needs clearer plans for job creation, its communities to benefit fully from renewable energy growth as well as overcoming infrastructure issues such as grid capacity to maximise the opportunities offered by the shift to net zero, the Committee said.
It could be a leader in renewable energy, with strengths in onshore and offshore wind, solar, wave and tidal energy, and significant new potential emerging in floating offshore wind.
Any strategy should be developed in tandem with a partnership between the UK and Welsh Governments to advance renewable energy.
This includes upskilling the current workforce, with work being undertaken in advance of COP26 in November, and for the UK Government to address grid capacity issues with Ofgem to facilitate future renewable energy generation.
The Committee also identified port infrastructure as an area requiring the attention of UK and Welsh Governments to realise the full potential of offshore renewable opportunities.
With the seabed getting busier, The Crown Estate should develop a new approach to optimise the environmental and economical potential of the seabed, working closely with developers to ensure adequate leasing rounds be offered on a regular basis.
The Committee argues this would be essential for the development of offshore wind and wave and tidal projects.
A current funding gap between innovation funding and the Contracts for Difference (CfD) scheme risks holding back wave and tidal energy projects.
The Committee argues that failure to address this funding gap would risk impacting development for a sector which could generate £4bn (€4.7bn) to the UK economy.
Further, the UK Government should explore re-introducing generation tariffs to the Smart Export Guarantee, building on the success of Feed-in Tariffs which attracted investment to small-scale renewable electricity generation.
The Committee believes that if the barriers holding back renewable energy are overcome, then there is significant potential for an interconnector given the renewable strengths of Wales, with the nation exporting energy rather than curtailing it.
This could not only export renewable energy to the rest of the UK, but also further afield.
Welsh Affairs Committee chair Stephen Crabb said: “With the UK hosting COP26 in November, there has never been a more important moment to recognise the potential that exists in Wales for much greater renewable energy output.
“It is clear there is no shortage of ambition within Wales but we need to see a clearer strategy from UK Government if Wales is to capture all the opportunities that are emerging.
“Our Committee has identified constraints ranging from skills gaps to grid connection issues, and seabed licensing to funding disparities.
“Overcoming these hurdles will require the UK Government to work closely with the Welsh Government with urgency and purpose.”