Milestone highlights growing importance of flexible gas generation as renewables expand

PEMBROKE POWER STATION has reached a major operational milestone after recording the 10,000th start of its combined cycle gas turbine (CCGT) units — underlining the plant’s continuing role in keeping the UK electricity system stable as renewable energy increases.

The RWE-owned power station, which opened in 2011, was originally designed to run almost continuously. However, as wind and solar generation have grown, the facility now operates far more flexibly, starting and stopping units to respond to changes in electricity demand and renewable output.

All five generating units now operate across multi-shift patterns, helping to balance the grid when renewable supply drops or when rapid increases in power are required.

Engineers at the site have also significantly improved performance over time. Start-up times have been reduced from around 70 minutes to just 41 minutes, allowing the station to respond more quickly to fluctuations in supply and demand. The units have also completed multiple major maintenance cycles while maintaining high reliability, including during the Covid-19 pandemic.

Gas-fired power remains a key part of Britain’s energy mix, providing what industry experts describe as “firm and flexible” generation capacity. While renewable sources are expected to supply the majority of electricity in the future, gas stations continue to provide backup and stability when renewable output is low or unpredictable.

Roland Long, RWE Pembroke Power Station Manager, said: “Reaching 10,000 unit starts is a proud moment for everyone at Pembroke. It highlights not just our operational capability but the vital contribution that flexible gas generation makes to the UK’s energy system.

“As the grid becomes increasingly driven by renewables, our ability to start quickly and run when needed ensures security of supply and reinforces Pembroke’s role as a dependable partner in the nation’s energy transition.”

The milestone reinforces the ongoing importance of flexible gas generation in supporting homes and businesses across the UK with secure and reliable electricity, particularly as the country continues to move towards lower-carbon energy sources.

Firms remain positive but optimism weakens compared to UK average

BUSINESS confidence in Wales fell slightly during February, with firms reporting lower optimism about both their own performance and the wider economy.

The latest Business Barometer from Lloyds shows overall confidence in Wales dropped three points to 29%, compared with 32% in January. This contrasts with the UK picture, where confidence remained unchanged at 44%.

Companies reported reduced confidence in their own trading prospects, down three points to 35%, while optimism in the broader economy fell five points to 22%.

Despite the dip, many Welsh businesses said they are continuing to pursue growth plans over the next six months. The top priorities identified were investing in staff through training (71%), developing new products or services (52%), and entering new markets (29%).

The monthly Business Barometer surveys around 1,200 businesses across the UK and has been running since 2002, providing an early indicator of economic trends.

Across the UK, confidence in firms’ own trading prospects fell six points to 53%, although optimism about the wider economy rose eight points to 36%. London recorded the highest regional confidence in February at 59%, followed by the North West and Northern Ireland, both at 58%.

Sector results were mixed. Construction saw a significant rise in confidence, up 14 points to 60%, while manufacturing increased five points to 37%. Retail and service sector confidence dipped slightly, down two and three points respectively.

Nathan Morgan, area director for Wales at Lloyds, said businesses in Wales remain focused on growth despite short-term uncertainty.

He said: “While business confidence dipped this month, we know Welsh businesses are continuing to press ahead with their growth strategies. Whether their plans are to upskill their teams, enter new markets or diversify product and service offerings, we’ll continue to be ready to provide our support.”

Hann-Ju Ho, senior economist at Lloyds Commercial Banking, said the wider economic outlook appeared to be stabilising.

He said: “It’s encouraging to see optimism in the wider economy returning, although with a small reduction in firms’ confidence in their own trading prospects. The majority of the survey results were collected following the Bank of England’s close decision to hold interest rates at its February meeting, signalling potential easing ahead, which may have alleviated business concerns, including those around cost pressures.

“The rise in pricing expectations to a six-month high may indicate firms are looking to rebuild their margins in 2026. It’s also great to see confidence increase for manufacturers and construction firms as they are key for UK growth.”

THE CELTIC FREEPORT has secured £638,000 in UK Government funding to support key infrastructure projects in Pembroke Dock and Port Talbot, helping to unlock future investment and accelerate development linked to floating offshore wind and clean energy industries.

The funding forms part of a wider £3.3 million package announced for sixteen Industrial Strategy Zone projects across the UK. The three successful Celtic Freeport schemes will focus on removing development barriers and preparing sites for future commercial activity.

Successful projects

Criterion Quay, Pembroke Dock — £213,000

Funding will support technical assessments required to enable floating offshore wind operations and maintenance (O&M) infrastructure at the site.

Talbot Wharf, Port Talbot — £265,000

Land remediation works will improve the viability of development plots, making them more attractive to companies within the floating offshore wind supply chain.

Port Talbot Marine Infrastructure — £160,000

Feasibility and design work will be carried out to refurbish two jetties, supporting future import and export activity and strengthening marine capability at the port.

Rt Hon Steve Reed MP, Secretary of State for Housing, Communities and Local Government, said:“From offshore wind manufacturing on the Humber to new clean energy facilities in Pembrokeshire, this backing for our freeports will generate real economic growth across the country. By tackling the barriers developers face early on, we’re helping to unlock significant private investment and create thousands of good jobs in clean energy and advanced manufacturing.”

Luciana Ciubotariu, Chief Executive of Celtic Freeport, said: “Today marks a significant milestone for Pembroke Dock and Port Talbot. Securing UK Government funding for these three projects accelerates the Celtic Freeport’s vision, supporting investment in port infrastructure that will enable floating offshore wind and the wider green energy transition.”