One of the Labour Party’s earlier campaign promises in the run up to their landslide victory at July’s General Election was the creation of a new state owned renewable energy vehicle, Great British Energy. For many, this seemed like a novel approach to tackling our pressing need for more renewable energy development, but for the people of Wales, this idea was a tried and tested plan.
Wales has had two publicly owned renewable energy ventures in operation for some time now. The first of these to be launched, Ynni Cymru (Welsh for “Energy Wales), was launched in August of last year, having been in discussion and development since 2016. Focusing on smaller-scale projects that can be delivered quickly, several successful projects have already been rolled out since the company’s founding, including solar and clean heat installations across Wales.
More recently, just days after Labour swept the board on election day, the Welsh Government launched Trydan Gwyrdd Cymru (Green Electricity Wales), another renewable energy company under public ownership, this time focusing on larger-scale projects. More specifically, Trydan Gwyrdd Cymru was launched with the aim of developing onshore wind farms and maximising their value for the Welsh people. The government predicts that the company will produce 1GW of clean energy by 2040.
During a recent official engagement with the the First Minister of Wales, Eluned Morgan, UK Prime Minister Kier Starmer pledged to work closely with the devolved Welsh government to hasten delivery of renewable energy projects across England and Wales. With Great British Energy finally beginning operations, it is worth examining what lessons the Great British Energy can learn from Wales’ success in publicly-owned renewable energy.
Clear, consistent messaging
Arguably one of the biggest missteps the UK government has made in launching Great British Energy is a lack of consistent and clear messaging on what the new renewable energy vehicle is actually aiming to achieve.
Early on in Labour’s election campaign, it seemed like Great British Energy would be a renewable energy developer in much the same vein as Trydan Gwyrdd Cymru. However, in May 2024, the Labour Party was forced to clarify that the project would in fact, be purely an investment vehicle for renewable development and not an energy company itself, a change that caused significant confusion among the voting public. Post-election, the message changed once again, with the King’s Speech stating that Great British Energy would own, manage and operate clean power projects.
These changes, clarifications and uncertainties arguably muddy the waters for the future of Great British Energy. Here, the UK government could have learned a thing or two from Ynni Cymru and Trydan Gwyrdd Cymru; the two operations have had clearly defined roles since launch, and the separation of the two could be argued to provide a level of clarity for those seeking advice or funding from either body.
Decisive action
Secretary of State for Energy Security and Net Zero Ed Miliband is arguably the most hands-on Energy Secretary the nation has seen in over a decade: mere days after being appointed Energy Secretary, Miliband removed the de facto ban on onshore wind, approved three solar Nationally Significant Infrastructure Projects (NSIPs), and made public statements debunking the myth of solar farms threatening food security that had been pushed by his predecessor, Claire Coutinho.
Moreover, he is the first Energy Secretary to be appointed co-chair of the Offshore Wind Energy Council (OWIC), and also co-chairs the Solar Taskforce and the Mission Board, a ministerial forum tasked with accelerating clean energy investment across the UK. This government so far has been taking bold action on renewable energy generation.
As such, it is curious how slowly progress is being made on Great British Energy. The second reading of the Great British Energy Bill, which will formally create Great British Energy, took place in the House of Commons on 5 September. While this does seem to be a significant milestone, a previous Current± article noted that this does little to move the project forward materially. Since the election, energy industry stakeholders have been waiting with bated breath for more information about Great British Energy’s launch, and the slow drip of announcements is doing little to aid this.
Meanwhile, in Wales, Ynni Cymru came on strong straight out of the gate, announcing at its launch in August 2023 that £750,000 has already been allocated to 11 energy projects for delivery as resource grants over the next three years. These projects, several of which have already been delivered, include solar power installations on community and business buildings in Bethesda, North Wales, and the heart of the Dyfed power unlocker project on the Carmarthenshire border.
More recently, the Welsh government announced that Ynni Cymru would provide a £10 million funding pot to support local developers in the creation of Smart Local Energy Systems (SLES), focusing on projects that can be completed by March 2025.
Collaboration and learning are key
None of the above is to say the Welsh system for delivering renewable energy generation is perfect; Current± recently published a statement from renewable energy developer Bute Energy, who strongly criticised the Welsh planning permission system and called for urgent reform to speed up the rollout of more renewable energy projects, especially larger-scale ones.
However, in the wake of growing confusion about Great British Energy’s role in our future energy plans, it’s clear that the UK government should look to the devolved nations—Scotland has much to teach England, too—for advice on developing the project and avoiding any further missteps. Clarity and decisive action are key.
Great British Energy offers significant potential for hastening the UK’s net zero ambitions, and it is vital that that potential – and the trust of the voting public – isn’t squandered. If Starmer and Miliband want to make Great British Energy a success, they need to look to the Valleys for the path forward and prove they are serious about creating the “genuine partnership of collaboration and respect” that Starmer promised during his visit with the Welsh First Minister.
