Business

Milford Haven’s offshore future in focus as floating wind project wins backing

Published

2 months ago

January 14, 2026

Erebus scheme off Pembrokeshire coast backed in UK auction as Irish Sea port resilience plan published

PEMBROKESHIRE’S role in the next wave of offshore energy took a step forward on Wednesday (Jan 14) after a floating wind project planned off the county’s coastline secured UK Government backing — with ministers also publishing fresh recommendations aimed at improving resilience across Irish Sea ports.

RenewableUK Cymru said Blue Gem Wind’s Erebus floating offshore wind test and demonstration project in the Celtic Sea, off the Pembrokeshire coast, was among the successful schemes in the latest UK offshore wind auction.

The project is being positioned as an early proving ground for floating wind in the Celtic Sea — technology seen as key to unlocking larger developments later in the 2030s — and is expected to help build confidence, reduce costs and develop the skills and supply chains needed for bigger projects to follow.

For Pembrokeshire, the significance is not only the turbines offshore, but what comes with them onshore: ports, fabrication, logistics, marine services and long-term maintenance work.

Milford Haven, already one of Wales’s most strategically important ports and energy hubs, is expected to be central to any future Celtic Sea build-out — both in terms of supply-chain opportunities and the infrastructure needed to support new offshore industries.

RenewableUK Cymru said Wales secured two offshore wind successes in the auction, including Erebus in the south-west and RWE’s Awel y Môr off North Wales, representing around £2.6bn of investment opportunity and enough clean electricity to power almost one million homes. The projects are expected to be delivered around 2030–31.

On the same day, the Welsh and Irish governments published recommendations from the Irish Sea Resilience Taskforce, set up after the temporary closure of Holyhead Port in December 2024 caused major disruption.

Although Holyhead is in North Wales, the Taskforce’s work is being seen across the sector as a reminder that Welsh ports are critical national infrastructure — and that resilience, contingency planning and clear communication matter when services are disrupted.

The recommendations include steps aimed at improving contingency plans to protect passenger connectivity and manage disruption better, as well as a commitment to an annual bilateral meeting between Irish and Welsh transport officials.

Ireland’s Minister of State with responsibility for international and road transport, logistics, rail and ports, Seán Canney, said the Taskforce had strengthened relationships between departments and would continue through annual meetings and regular communication.

Wales’s Cabinet Secretary for Transport and North Wales, Ken Skates, said discussions had reinforced the importance of Irish Sea-facing ports to communities in Wales and Ireland, and the shared responsibility to ensure they “thrive and grow”.

Taken together, the announcements point to a clear theme for Pembrokeshire: Wales’s ports are being asked to do more — supporting new industries such as floating offshore wind, while also strengthening resilience and response planning for the disruptions that can hit major sea links.

For Milford Haven and the wider Haven Waterway, the question now is how quickly local infrastructure, contractors and training pathways can align with the emerging offshore wind opportunity — so that as projects scale up in the Celtic Sea, more of the jobs and investment are anchored in Pembrokeshire.

Later on Wednesday First Minister of Wales, Eluned Morgan, said: “I’m delighted that two Welsh offshore wind projects have secured contracts in the latest UK auction. This demonstrates how Wales is well placed to build on its existing capacity for renewable energy, to reap the benefits of these new projects bringing many high-quality jobs and wider economic benefits to our economy.

“The floating offshore project off the coast of Pembrokeshire will help kickstart the new floating offshore wind industry for Wales and, together with extending the fixed offshore wind generation in north Wales, will utilise the latest technology and help to reduce bills and boost our energy security.

Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said: “We will work with these companies to ensure our ports are used, and that our supply chains are in a position to support this industry. We know we have the ability to deliver on the skills already – our offer is recognised as globally competitive, and we will continue to build on this.”

“Wales is in a fantastic position to support the new floating wind industry and the additional fixed offshore wind projects.

Secretary of State for Wales Jo Stevens said: “Today’s announcement is huge news for Pembrokeshire and North Wales. It is a massive a vote of confidence in Wales’ clean energy industry which is already delivering the well-paid, highly-skilled jobs of the future with the potential to bring thousands more.

“The UK Government is working with investors to develop home-grown clean power which will secure our energy supply and bring down bills for good. These new projects in the seas off Wales will help us achieve those goals.”

On Thursday MS Samuel Kurtz said in a statement to this newspaper: “This announcement is welcome news for Pembrokeshire. For many years, I have been clear that our county is exceptionally well placed to benefit from floating offshore wind, with a skilled workforce, strong engineering capability, established ports and proximity to key natural assets all working in our favour. I have consistently made the case for Pembrokeshire’s role in this sector, which is why this agenda was advanced under the previous UK Conservative Government, and I am pleased to see that progress continuing under this government.

“The real test, however, will be what happens next. It is essential that the economic benefits are maximised locally: that Pembroke Port is used to its full potential, that local firms can compete for and win work, while continuing to recognise the ongoing importance of the oil and gas sector to both our local economy and the UK’s energy security.

“There also remain serious questions for the Energy Secretary about rising energy bills for families and businesses, which have increased significantly since the election despite promises to reduce them.

“In short, this is good news, but it is not the end of the story. I will continue to make the case for Pembrokeshire so that our communities see real and lasting benefits from these developments.”

Port of Milford Haven took to social media to say: “The AR7 announcement is another step forward for offshore wind in Wales.

“As the closest deep-water port to the floating wind development areas, with specialist facilities available at Pembroke Dock boosted by freeport status, we stand ready to support the delivery of the Erebus project and this new industry for Wales.

“We are also delighted to hear of the success of the Awel Y Mor wind farm, and will do what we can to further build our longstanding relationship with the developer RWE.”

Business

Pembroke Power Station marks 10,000th turbine start

Published

5 days ago

February 26, 2026

Tom Sinclair

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.

Business

Business confidence in Wales dips during February

Published

5 days ago

February 26, 2026

Tom Sinclair

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.”

Business

Celtic Freeport secures £638,000 for strategic infrastructure projects

Published

6 days ago

February 25, 2026

Tom Sinclair

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.”