MISSED OPPORTUNITIES

Back in May 2021 there was some news about the developers being chosen to develop off shore wind energy fields of our coast is actually. Once again Wales received little or no benefit from the economic exploitation of its own natural resources, save that this time the waters were off-shore rather than inland or underground. 

A question that was asked at the time (and should be asked now) was is why should the fees go to the Crown and the UK Treasury? And not to Wales? 

Any Welsh Government, worth its salt, should insist that decisions about the use of Wales’ natural resources should be made in Wales for the benefit of Wales. Even without devolved powers they should been able to set up a Welsh national energy company immediately to develop our own Welsh-owned sector and have  at least explored the  possibilities of setting up an embryonic sovereign wealth fund for receipts, rents received, etc.

The then Labour in Wales government chose not too…

Two energy companies were involved - BP and EnBW ( described by the BBC as a German energy firm) which were chosen as the preferred developers for the major new wind farm off the north Wales coast. 

Both companies were effectively the preferred developers for a 500 square kilometre lease, situated approximately 30 kilometre off the north Wales coast, and another 300 square kilometre site east of the Isle of Man. These off shore wind farms once completed should have the potential to generate enough power for 3.4 million homes. 

Now what is worth noting in passing is that EnBW is actually over 90% owned by the regional government and local authorities of Baden-Wurttemberg - not they you would hubs found any reference to that on the BBC. It was doubly ironic that the Scandinavian State-owned Vattenfall and Statkraft and largely State-owned EDF meant that citizens of other countries will own more of Wales' renewable sector than we do ourselves (and also benefit from it).

The Labour in Wales Government, at the time, understandably stated that it is looking forward to working with the two companies, in fairness there was literally not much else that they could say or do. The devil, as they always say, was in the detail or perhaps in this case the literal small print, once you get beyond the spin. 

The then, Conservative Westminster government, called the development a "major vote of confidence in the UK's green economy and net zero ambitions”. Clearly we are somewhere else now, as the Conservatives in opposition appear to have embraced the “Drill Baby! Drill” mindset entirely - regardless of the environmental consequences.

However, it gets more interesting the further you delve, as it turned out that it is the Crown Estate, not the Welsh government, managed (and still manages) the seabed around Wales, as it does with the seabed of England and Northern Ireland, has also announced six proposed new offshore wind projects.

Beyond being either a willing or a reluctant minor partner the Welsh Government had little choice or say in the matter save but to notionally co-operate. The Crown Estate’s auctioning off development rights with no direct benefit to the people of Wales, aside from being unjust, clearly  demonstrated that Wales' marine energy potential is of international significance.

The Crown Estates, continues to play the role of barely mentioned absentee landlord, in Wales. As far back as March 2012  a report produced by the then Scottish Affairs Committee (in Westminster) stated that the Crown Estates management of the marine environment around Scotland lacked transparency and public consultation. 

The Crown Estate's owns portions of our coast, almost all the seabed, and some of the land beneath our feet - little appears to have changed in relation to the lack of transparency and the lack of public consultation. It owns around 65 per cent of the Welsh foreshore and riverbed, and inland, and also owns around 27,800 hectares (68,700 acres) of Welsh common land, owns the rights to the sites of fish farms, renewable energy developments, ports and marinas.  

The Westminster government (post BREXIT) stated that it believed in ‘local control’ yet would not commit to having the Crown Estate's seabed and marine responsibilities and all rights related to Wales devolved to the Welsh government. 

Those who have dealt with the Crown Estates on a regular basis are often highly critical of the Crown Estate - interestingly enough back in 2012 the then Scottish Affairs Committee (in Westminster) heard that the organisation effectively behaved like an "absentee landlord" and "tax collector".

That said the revenues do not belong to the monarch and surplus revenue from its businesses are paid each year to the Treasury. The Crown Estates revenues in Wales are not vast at the moment, but, the assets have what could best be described as game changing potential. 

That's why control of these marine and and coastal assets particularly in the case of renewables and off shore wind generated hydrogen could give our nation to opportunity to reboot our economy and make a significant contribution to fighting global climate change and would be a step towards ending the dangerous dependency of hydrocarbons from unstable, unsavoury and despotic states. 

Our energy and water resources including the responsibility for sewerage for the whole territory of Wales should be the responsibility of the Welsh Government. The Crown Estate still remains largely unaccountable to the people of Wales and all profits from its holdings (which includes on and off shore wind farms) are passed to the UK Westminster Government. 

Profits from these holdings are only likely to grow significantly mostly due to the growing demand for renewable energy. The seabed is important for energy generation if not vital as offshore energy projects could include wind turbines, dial turbines, tidal lagoons and tidal fences - at present any leasing profits are paid to the UK Treasury, which then pays a percentage ( 15% ) to the Crown. 

For way too long our natural resources have been run for the benefit of others with few real or lasting benefits trickling down to the people of Wales. Ownership and control over the Crown Estates in Wales should be transferred to the Welsh Government via the Treasury. 

The final say on how our natural resources are exploited and developed should be the direct responsibility of the Welsh people (and the Welsh Government) with 85% of the profits or dividends directly benefit the people who live here rather than opaque absentee landlords, as per the situation in Scotland. 

Westminster remains incapable or unwilling to change this situation, at least as far as Wales is concerned. The Westminster focused political parties, with merely their branch offices nominally based in Wales at at least happy with the current set and the status quo or indifferent to the needs and aspirations of our country. 

Yet change can happen, back in 2017 Crown Estates Scotland was created, and this was under the watch of Conservative Westminster government that was on the verge of tearing itself apart over BREXIT. The Crown Estates are devolved in Scotland, which means that net revenues are retained and allocated locally. 

So that was a Yes for Scotland and a No for Wales - setting the monies and assets to one side, the divide and rule aspect of having different levels of powers for devolved nations within these islands and different levels control over their own resources and assets and the tools for wealth generation is simply unfair and undemocratic and it has to change. 

Even the Labour Party in Wales when in government in Cardiff Bay but in opposition in Westminster (prior to July 2024) indicated that Wales’s should control its own assets and have a fair financial settlement. Since June 2024, obviously when in power at Westminster… it’s a different story… so much for joined up government at both ends of the M4… and now with a Plaid minority government in office it’s a case of watch this space…

INVESTING IN OUR TOWNS

Plaid Cymru is investing millions of pounds into town centres and communities across Wales.

We're serious about supporting local businesses, boosting footfall, and creating spaces that communities can be proud of.

Why does Wales need more powers?

This is a question we receive a lot, and it's a fair one.

It's not about having powers for the sake of it. It's about making sure our nation has the tools it needs to tackle the challenges we face.

So what powers are Plaid Cymru calling for, and what difference could they make?

🚔 Policing and justice: Powers over policing and justice would make it easier to join up the work of the police, courts and services such as health, housing and education to prevent crime and reduce reoffending.

🚆 Railways: More control over our rail infrastructure and investment would give us greater power to improve services, make trains more reliable and build better connections between communities across Wales!

🌊 Our natural resources: Control over the Crown Estate in Wales would enable us to reinvest profits in our communities just like Scotland does, and bring down energy bills.

💷 Fair funding: A fair funding settlement and more financial flexibility would mean more scope to invest in the NHS and the other vital public services we rely on, and enable us to plan for the future and respond to changing needs.

Not powers for power's sake, but tools to improve public services, strengthen our economy and deliver better outcomes for communities across Wales 🏴󠁧󠁢󠁷󠁬󠁳󠁿

WALES HAS THE AMBITION

Wales has the ambition 

We need the powers and resources to match it.

Here are four things Plaid Cymru is demanding from Burnham

KEEPING THE LIGHTS ON

Somewhat ironically, considering where we are now energy bill wise, back in the 1960's people, according to my old man, we’re told that by the year 2000 energy would be so cheap that it would be impossible to bill people for it. Now while this obviously never happened, largely as a result of the ideologically driven privatisation of the energy boards which rapidly created a privatised energy cartel / monopoly. 

Once ‘market forces’ set to work we were left with the big six energy suppliers - a cartel by any other name - that emerged in plain sight. With weak ineffective regulation - despite periodic and actually very effective work by Westminster parliamentary select committees - the cartel members have been able to get away with much - mostly at our expense (literally). 

We need to simply recognise that this costly experiment has failed - much like the privatisation of the railways and the water companies and the flogging off of state assets on the cheap. Yet rolling back the clock to having it all run by the indifferent dead hand of a re-centralised post Brexit Brit state is just not a realistic option. 

if we are serious about solving the energy crisis, then we need to do something quite different - firstly we need to make sure that we don't get fleeced over our energy bills by the members of the 'Big 6 Energy Cartel' - who have made and continue to make fat if not excessive profits over the years at our expense. 

In Cymru / Wales having recognised that what we have does not work, we now need to change the rules of the game and to create a national energy company for Wales to generate sustainable and reasonably priced energy, which can also be part of the solution to create a low carbon society. 

There is no reason to suggest that similar solutions would not work in parts of England. Ynni Cymru, should be run as a not-for-dividend company at arms-length from the Welsh Government. This would prevent the agencies of the state from skimming profits off the top and ensure that they get reinvested.

This is a viable vision for energy and the environment for a Wales that reduces its carbon emissions, harnesses our natural resources sustainably, and seizes opportunities in the low-carbon and circular economies. The link between energy and climate change is clear. 

A number of actions could fall into the remit of Ynni Cymru, including: reducing the cost per unit of energy to homes and businesses in Wales, reducing the consumption of energy in homes and businesses and helping consumers to make informed decisions based on smart metering technology.

Ynni Cymru should be tasked with funding the mass installation, outsourced to local companies, of solar panels on the roofs of households, business premises and lampposts in Wales, beginning with public buildings and social housing. The company would coordinate and facilitate the use of publicly owned land for renewable energy purposes. 

Such a company could finance the acquisition and development of new large-scale generating and storage capacity, ensuring Wales becomes self-sufficient in renewable energy and becomes a renewable energy exporter. It could boost our energy market by ensuring the development of a national producer cooperative among community energy organisations.

The problem we face is that our energy production and distribution model has been effectively restructured to primarily benefit the big 6 energy cartel members, their interests and their (City and shareholders ) profits. 

From the perspective of energy consumers and smaller scale energy producers, or anyone who wants things to change things - the problem is that almost all of the Westminster focused political parties have quite happily bought into this cartel dominated model of energy production and ownership (or perhaps more truthfully they were quietly bought).

Not that you would red it in the media, but the UK’s cartel dominated model for energy production and distribution is not necessarily the norm everywhere in Europe or around the world. And contrary to what you might think, and tend hear from Westminster and much of the UK media; realistic viable alternatives exist and actually prosper, a particularly good example of a balanced and healthy energy mix can be found in Germany. 

Simply tweaking a model that does not work or deliver won’t solve the problem. Small may very well be beautiful, both politically and economically, even with a geographically sizeable state, perhaps especially in relation to energy, in 2012 some 22% of the countries energy came from small scale green entrepreneurs, and by 2024 it was between 40% and 50%. 

Small-scale, citizen-driven initiatives are particularly dominant in solar energy. In 2024, rooftop and building-integrated systems accounted for two-thirds of the new solar capacity added, which itself generated 13.8% of Germany's total electricity. And small-scale generation has been boosted by a surge in "balcony solar" (plug-in solar devices), with approximately 435,000 new units installed in 2024.

Community based co-operatives (both urban and rural), farmers and homeowners are part of the 2.7 million renewable energy producers (2023) and part of the energy mix. In Germany, citizens’, cooperatives, and communities own more than half of German renewable capacity. Small-scale electricity generation is having a knock on effect encouraging change throughout the energy system.

It’s a fairly simple idea with citizens’ owned energy in Germany which involves:  

• Private individuals or farmers (jointly or individually) invest in energy facilities
• The investment is made with the citizens own capital, which gives a certain level of control over the project
• Citizens own at least 50 percent of voting shares
• Citizens have a connection to the region where the facility is operated

In Berlin, a literal citizens energy cooperative (Burger Energie Berlin – literally Berlin Citizens Energy) continues to strive to take control of the capital's electricity grid with some 35,000km of underground cables. The cooperative is a free, cross-party coalition of citizens who are committed to a sustainable, sustainable and democratic energy policy in Berlin. Members have one vote regardless of the amount their deposit and anyone who wants the power network to be in civil hand, is welcome.

Ordinary Berliners have literally invested their cash in the venture with the intention of producing a reliable 100 per cent renewable energy supply. The aim is to promote the integration of renewable energy into the grid and to invest a portion of the profits from this directly into the transition to renewable energy. After some serious campaigning, on the 5th March 2019 the Berlin electricity grid was awarded to Energie Berlin. 

This is grass roots energy generation from the bottom up that has potentially the power to change the nature of the energy supply system (in Germany and elsewhere) and build in more energy security. The aim to build an energy grid that is better handle the rise of green power and allows local use of locally produced energy. This may well be deeply disturbing from the cosy perspective of Westminster and Cardiff Bay - something that can be both community beneficial and community owned. 

There is no practical reason beyond ‘thats not the way it’s done here’ why people living here and Wales could not benefit from membership of citizen owned energy co-operatives. In Germany, there is a deliberate promoted policy of energy transition (or ‘Energiewende’) – this is a very different approach to what is practised in these islands (at least south of the Scottish border). The ‘Energiewende’ is also driven by a desire to reduce and eliminate any dependency on nuclear energy.

The introduction of the Feed-in-tariff (EEG) in 2008 was an important part of this process, along with (post Fukushima) the almost unanimous across the board political commitment to a wide range of targets (in 2011) which included a commitment to reduce energy demand (with a 50% reduction in primary energy use by 2050) and the achievement of an 80% renewable electricity share of total consumption (by 2050). This has resulted in a significant uptake of renewables in Germany.

The real striking difference is that the operation of the grid in Germany means that generated renewable electricity is used first and that distribution network operators (DNOs) are also seeking to reduce demand. This is so radically different from the way the energy is generated, distributed, moved around and used here in our country that it no doubt, at least from their limited perspective, something that quite understandably frightens Westminster focused politicians, the civil service and the city.

A significant difference, aside from the scale and pattern of investment (in Germany), is that small businesses, co-operatives, individual households and local authorities benefit from investment distributed by a network of local banks (again something we pretty much entirely lack here in Wales). The whole thing has been supported by the KfW (state investment bank) to the tune of 23.3 billion euro in the area of environment and climate protection.

These developments are a million miles away from the so-called ‘Free market’ for energy that exists in the UK, which remains, despite various price caps and payments to more vulnerable members of society, effectively dominated by the ‘Big 6’ energy cartel members. 

The fact that some former politicians have found rewarding post political career employment within the energy sector may be purely co-incidental but perhaps could be interpreted to suggest that there remains little desire for change or improvement within Westminster and perhaps a complete lack of understanding of the concept from any Labour in Wales government(s) be they previous, current or future. 

The way the current set up works, it is difficult to imagine ‘a Government’ at most levels (at least outside of Scotland and Wales (in the UK) grasping the concept, the practicalities and real possibilities of genuine community owned beneficial energy generation projects. Pending some real change in the way energy policy works we are all pretty much trapped with a real lack of meaningful choice or realistic alternatives when it comes to customers securing domestic energy from the big 6 cartel members.

Over the years we have had a largely visionless New Labour, Conservative-Lib DeM and then Conservative and now Labour governments in Westminster, which have remained hand in glove with despotic oil and gas-producing regimes in the Middle East ( aside from the vassal like relationship between the UK and Saudi Arabia ) who have had has little real interest in renewables or dealing with climate change. 

The successive governments of Cameron, May, Johnson, Truss, Sunak, Starmer and Burnham have not, and are not are interested in changing the current situation at all beyond gesture and window dressing - that has to change if we are serious about sustainability, energy independence and energy security.

Recent events in the Gulf have not finally shown the danger of dependency on hydrocarbons for unstable regions. Years of failure from wobbly and unstable Westminster government(s), along with its unhealthily obsession with big energy projects which effectively continue to actively work to pull the rug out from under the renewables sector by cutting the feed in tariff something that has cost highly skilled jobs here in Wales. Time for a change...

OUR PLAID CYMRU GOVERNMENT'S PRIORITIES

The Plaid Cymru Welsh Government sets out a new ambition for a modern, thriving, ambitious and confident nation.

This is how early action will be turned into lasting results.

A NEW CLEAN ENERGY COMPANY FOR WALES

Wales has some of the best renewable energy resources in Europe, but profits flow outwards whilst we struggle with rising costs 📈

Plaid Cymru is proposing a new clean energy company - owned by Wales, to benefit Wales. 

Creating jobs, growth and lowering bills 🏴󠁧󠁢󠁷󠁬󠁳󠁿💪