According to a State of the Sector Report released today (27 June) the marine energy sector in Wales has received a “record-breaking” £103.4 million in investments and spending last year, almost quadrupling the preceding year’s figures.
The annual report by Marine Energy Wales attributed this surge to infrastructure expansions allowing for sector growth.
The sector with the largest contribution to the Welsh economy was tidal stream with £45.1 million in spending and investment, followed closely by supply chain with £44.7 million.
Floating offshore wind also experienced rapid growth according to the report, contributing £11.6 million to the Welsh economy, with the potential to generation £1 billion over the next five years in economic opportunities.
“Wales’ coastline has abundant wave and tidal resources offering huge potential for marine energy generation. The sector is a major contributor to the Welsh economy, sustaining hundreds of jobs,” said Vaughan Gething, minister for the economy of Wales.
“Floating Offshore Wind is projected to produce £1 billion in economic opportunities within the next five years and the Welsh Government is committed to doing everything we can to ensure that the sector can access the skilled workforce it needs.
“I’m delighted to see the sector go from strength to strength and the growth reported in this report is a remarkable achievement and the record investment the sector has attracted is testament to the confidence it enjoys by investors and stakeholders.”
Recent notable developments within Wales’s marine energy sector include the approval of the nation’s first floating offshore windfarm, Blue Gem Wind and Magallanes Renovables receiving “crucial” support from the UK Government to deploy its tidal stream technology to the Morlais Tidal Demonstration zone off the coast of Anglesey.
“The Welsh Government is making a huge commitment to the offshore renewable energy sector,” commented Mark Drakeford, first minister of Wales.
“I truly believe that it could be a catalyst to providing not only green electrons and decarbonising our communities and business, but also providing high quality career opportunities throughout Wales.
“We applaud the work of MEW and the wider marine energy sector and hope the great achievements made to date continue. The challenge of climate change facing all of us is too great and too important not to give our best efforts.”
Looking forward across the next five years, the marine energy is set to become a key player in Wales’s economy. According to the report tidal stream is estimated to provide benefits of £261 million, whilst wave energy is expected to provide £118 million.
To ensure the sector’s success the report emphasised the need for strategic infrastructure investment, skills and talent development and a supportive political environment.
“Revenue support for commercial-scale projects at a realistic market price is critical. The recent decision to reduce the tidal stream ringfence is deeply concerning, jeopardising megawatt-scale tidal deployment in Wales and the UK,” said Tom Hill, Marine Energy Wales’s programme manager.
“Despite having the world’s largest pre-consented demonstration zone in North Wales, market mechanisms and the loss of access to European funding schemes pose challenges to this innovative sector.”
Wales is continuing to bolster its renewable energy sector as it strives towards its net zero goal of 2030. Reaching this target will require a number of network alterations however, as noted in today’s report by RenewablyUK Cymru which warned that Wales’s grid capacity must double to accommodate its current wind energy pipeline.