WALES is on the cusp of a £47 billion renewable energy investment wave that could transform its economy, create thousands of jobs, and breathe new life into communities. This promising outlook was unveiled today at the Future Energy Wales 2024 conference at Newport’s ICC, showcasing preliminary analysis by BiGGAR Economics on the economic potential of renewable energy across the nation.

Commissioned by RenewableUK Cymru, in partnership with Solar Energy UK and Marine Energy Wales, the study highlights the substantial economic gains Wales could achieve by meeting its renewable energy targets across onshore wind, offshore wind, solar, and tidal power.

The research projects an average annual investment of nearly £4 billion, reaching a peak of £7 billion by 2028. Offshore wind alone is expected to attract £32.4 billion, forming the foundation of Wales’ economic growth through 2035. However, capturing this opportunity requires an effective industrial strategy and substantial port infrastructure upgrades to support thousands of new, high-quality jobs.

While offshore wind presents long-term growth, onshore wind offers Wales a rapid boost, with a potential £4.5 billion in investments enabling an increase to over 3 GW capacity by 2035, contingent on addressing planning and grid capacity challenges.

The NESO 2030 Clean Power report underscores the need for grid reform to expedite renewable energy across the UK, but Wales remains hampered by immediate planning resource shortages.

The latest data from the 2024 Welsh wind power report shows a surge in renewable project interest, with Wales’ pipeline expanding by 18% this year, from 9 GW in 2023 to over 10.5 GW in November 2024, largely due to new onshore wind projects. However, with current deployment rates, Wales is forecast to contribute only 5% of the UK’s total wind capacity by 2035—well behind Scotland’s 64 GW target.

RenewableUK Cymru’s Call for Strategic Support

Jess Hooper, Director of RenewableUK Cymru, said:

“Wales stands at the threshold of a historic opportunity. By harnessing this renewable investment potential, we can secure Welsh jobs and build a robust, long-term local economy. But achieving this vision requires strong, immediate support from both the UK and Welsh governments.

“We urge a coordinated, four-nations approach to accelerate wind deployment and grid upgrades. With strategic investment in grid capacity and planning, wind energy can become central to Wales’ clean energy future—delivering real benefits for our climate, economy, and communities.”

£47 Billion Equals 208 Principality Stadiums

Nikki Keddie, Director at BiGGAR Economics, added:

“The scale of Wales’ renewables potential is extraordinary. The £47 billion needed to reach our targets is equivalent to building 208 Principality Stadiums. Investment in renewables will boost energy security, employment, industrial growth, and rural development.

“To maximise economic benefits, it’s crucial to dismantle barriers to project delivery and create opportunities for local businesses to capture value. We look forward to the next phase of this report, where we will detail the economic share Wales can secure.”

A GREEN hydrogen fuel production facility by Pembroke Power Station has been approved by Pembrokeshire planners, despite a concern raised about the amount of water it will take from the county’s Llys y Fran reservoir.

An application by Pembroke RWE Generation UK plc for the construction of a green hydrogen production facility, with associated works including a water supply pipeline to the Pembroke Power Station and electrical supply connection to the National Grid Substation on land adjacent to Pembroke Power Station, was recommended for conditional approval at the November  meeting of the county council’s planning committee.

Green hydrogen is produced from water, in an electrolysing process using electricity obtained from renewable sources; the electrolyser site previously occupied by the power station’s sports and social club.

A report for planners stated: “The electrolyser is planned to be powered with ‘low carbon electricity supplied primarily via grid connected renewables’ and will create ‘green hydrogen’ for use in industrial processes. Water for the electrolyser will come from existing power station supplies.

“The pipeline corridor would supply hydrogen gas to the Valero Refinery. The pipeline corridor would follow the route of an existing natural gas pipeline. Most of the pipeline corridor would be underground, passing across farmland and a wooded area. It will emerge above ground within the Valero Refinery. The working width of the construction area for the pipeline is expected to be approximately 30m.”

Some of the final details are subject to potential change, members heard, but the maximum height of the flare stack would be 25m and the electrolyser building and compressor building would be up to 17m in height.

The report also quoted the applicant: “By bringing together technologies such as hydrogen production, carbon capture and storage, battery storage and floating offshore wind to the Pembroke area, RWE can help to decarbonise the energy sector in Wales for generations to come. RWE’s ambitions will build on Pembrokeshire’s local energy heritage, safeguarding existing jobs at the development site, while delivering a significant local economic investment and creating new jobs throughout construction and operation.”

Speaking at the November planning meeting, project development manager Zoe Harrison told members would make “a significant contribution to net zero,” the green fuel leading to approximately 90,000 tons less of Carbon Dioxide being produced a year, the equivalent of 18,000 cars being taken off the road.

Cllr Steve Alderman, who said he was in support of the proposal, raised the issue of the amount of water the facility would take from the Llys y Fran reservoir to produce two tons of hydrogen fuel per hour, members hearing nine kilos of water was needed for every kilo of hydrogen fuel produced by the electrolysing process.

Zoe Harrison said the water was available through an existing agreement with Welsh Water, and a suggestion by Cllr Alderman to look at desalinating seawater was not part of the current scheme but could potentially be looked at in the future.

Moving approval, Pembroke Dock councillor Brian Hall said: “I’m sure everybody does realise this is a very important project for Pembrokeshire full stop,” adding: “I can’t emphasise enough how the people in my area can’t wait for this development.”

Fellow Pembroke dock councillor Tony Wilcox also supported the proposal, saying of concerns about potential visual impacts: “To a certain extent, that horse has bolted, because it’s in the middle of a power station.”

Members unanimously supported delegated approval for the application.

The facility is expected to take 24 months to build, an earlier consultation on the scheme said, and could be built by early 2027.

PLANS for a green hydrogen production facility by Pembroke Power Station, which the applicants say “can establish Pembroke at the forefront of south Wales’ low carbon future,” and create new jobs are expected to be backed next week.

An application by Pembroke RWE Generation UK plc for the construction of a green hydrogen production facility with electrolysers, hydrogen gas storage, HV transformer and electrolyser control building, and hydrogen gas pipeline offtake; together with associated infrastructure, including water supply pipeline to the Pembroke Power Station and electrical supply connection to the National Grid Substation on land adjacent to Pembroke Power Station is recommended for conditional approval at the November 5 meeting of the county council’s planning committee.

The electrolyser site was previously occupied by the power station’s sports and social club.

A report for planners states: “A green hydrogen facility is proposed that would comprise the main electrolyser area, a hydrogen gas pipeline corridor, an electrical connection to a high voltage transformer and an area for connections into the Pembroke Power Station and a cable corridor for connection into the National Grid Substation.

“The electrolyser is planned to be powered with ‘low carbon electricity supplied primarily via grid connected renewables’ and will create ‘green hydrogen’ for use in industrial processes. Water for the electrolyser will come from existing power station supplies.

“The pipeline corridor would supply hydrogen gas to the Valero Refinery. The pipeline corridor would follow the route of an existing natural gas pipeline. Most of the pipeline corridor would be underground, passing across farmland and a wooded area. It will emerge above ground within the Valero Refinery. The working width of the construction area for the pipeline is expected to be approximately 30m.

“The applicant states that some of the final design aspects and features of the proposed development within the electrolyser site ‘cannot be confirmed at this design stage as these depend on the appointment of an Engineering, Procurement and Construction (EPC) contractor. This may include the heights of buildings, structures and plant and the arrangement of features defined by zones’, nevertheless the maximum height of the flare stack would be 25m and the electrolyser building and compressor building would be up to 17m in height. All other equipment would be of lower height than the electrolyser building.”

The report also quotes from the applicant: “The proposed development forms part of the Pembroke Net Zero Centre (PNZC) initiative which will see RWE diversify its energy generation portfolio to demonstrate a pathway towards decarbonisation.

“RWE’s vision for the PNZC has a critical role to play in Wales’ and the UK’s pathway to Net Zero. By decarbonising its current operations at the power station, while investing in new innovative technologies at the development site, RWE can establish Pembroke at the forefront of South Wales’ low carbon future. The proposals for RWE Pembroke Green Hydrogen form part of this ambition.

“By bringing together technologies such as hydrogen production, carbon capture and storage, battery storage and floating offshore wind to the Pembroke area, RWE can help to decarbonise the energy sector in Wales for generations to come. RWE’s ambitions will build on Pembrokeshire’s local energy heritage, safeguarding existing jobs at the development site, while delivering a significant local economic investment and creating new jobs throughout construction and operation.”

The facility is expected to take 24 months to build, subject to approval, an earlier consultation on the scheme said, and could be built by early 2027.