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…
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