onshore wind auction result signals revival for Welsh renewables

Daniel Bevan - Editor

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Wales has recorded its strongest onshore wind performance in almost a decade, with five projects securing contracts in the UK Government’s latest competitive renewables auction, alongside three tidal stream schemes.

The successful onshore wind projects have a combined capacity of 185.41MW and are all based in south-east Wales.

The outcome marks a significant turnaround for a sector that has seen very limited development activity in the country over the past ten years.

The projects awarded contracts are Mynydd Carn-Y-Cefn Wind Farm, developed by Pennant Walters; Mynydd Fforch Dwm by Naturalis Energy; Twyn Hywel Energy Park by Bute Energy; Upper Ogmore Wind Farm by Marubeni; and Pencarreg Wind Farm by Energyfarm UK.

Over the next decade, onshore wind is forecast to contribute around £3bn to the Welsh economy and support more than 3,000 jobs, according to RenewablesUK Cymru, with many expected to be located in rural areas and communities affected by the decline of the coal industry.

Jessica Hooper, Director of RenewableUK Cymru, said: “This result is a much needed, and very welcome, breakthrough for onshore wind in Wales, and a clear sign that the sector is ready to move again after years of stalled progress.

“However, this must be the start of a sustained recovery. Wales is still constrained by limited grid capacity, particularly in mid-Wales, and a planning system that has suffered historically from underinvestment and understaffing.

“These barriers make it difficult to catch up and deliver a steady pipeline of projects eligible for UK auctions.”

Hooper added that a Renewables Sector Deal, known as “Cymru Clean Power”, between industry and government would help provide long-term certainty for investors.

“A sector deal partnership would set clear targets and stable policy from government, in return for industry delivering affordable clean energy, skilled jobs, long-term local investment and environmental benefits. It is the most effective way to turn this momentum into lasting success.”

Bute Energy secured the largest Welsh contract in the auction for its 94MW Twyn Hywel Energy Park.

Martin Chown, Interim Chief Executive of the company, said: “Securing a contract for Twyn Hywel Energy Park is a landmark moment for Bute Energy and our first project to enter the auction.

“Onshore wind is one of the UK’s cheapest sources of renewable power and offers exceptional value for billpayers.

“Wales’ improved performance in this auction shows the depth of appetite from developers, investors and governments to realise the nation’s energy potential.

“With a strong partnership between industry and the Welsh Government, energy security can go hand-in-hand with transformational investment in jobs, local businesses and community benefits across Wales.”