Since the start of the US–Iran conflict, people in Wales and across the rest of the UK have watched their gas bills and petrol prices skyrocket, wondering what aspect of their lives might be affected next as tensions escalated.
When the Strait of Hormuz, responsible for carrying around a quarter of global seaborne oil trade, was threatened with closure, it further highlighted how dependent the UK remains on energy sourced thousands of miles away. Within a single day, the Strait was reportedly both open and closed again, illustrating the volatility of these markets. Every time an energy crisis like this occurs, the same reaction follows: renewed calls for investment in renewables, followed by slow progress once prices stabilise and short-term political solutions take over.
However, Wales is already laying the groundwork to ensure that when the next crisis hits, energy bills are determined at home rather than in the Middle East.
In 2024, Wales generated enough renewable electricity to meet 54% of its total demand. Last month, it launched an even more ambitious plan, committing to generating 70% of its electricity from renewables by 2030 and 100% by 2035.
Driving these figures is Wales’s unique landscape, which gives the country a natural advantage in clean energy generation. With the second-highest tidal range in the world, an Atlantic-facing coastline, and mountainous regions, Wales is ideally positioned to harness onshore and offshore wind, tidal, and hydropower energy.
But natural advantage alone does not create a fully functioning energy system. Grid infrastructure underpins every form of electricity generation. Generating clean energy is only half the equation; without the infrastructure to transport it, the power we produce cannot reach the homes and businesses that need it.
Wales’ existing grid capacity is currently the single biggest obstacle to its renewable ambitions. Built for a different energy era, it cannot keep pace with both the increasing electrical demand and volume of renewable projects now ready for development. This is where Green Gen Cymru comes in, developing a network of green energy pathways that will allow direct connection of community and other generation projects, while reducing pressure on the existing electricity grid.
Grid development is not only crucial for future energy security. It also has the potential to shape Wales’s economic trajectory. The renewables industry delivers high-value jobs to communities across the country, with the average GVA per job in renewable energy running 19% higher than the Welsh economy-wide average, and salaries exceeding the national average by 26%. Crucially, unlike oil, wind energy profits do not flow overseas. This growth is Welsh-owned and Wales-based.
Furthermore, energy availability is becoming an increasingly important factor in where businesses choose to invest and where emerging industries choose to locate. One such industry is artificial intelligence. According to the UN, AI training is still powered primarily by fossil fuels, while renewables meet only 27% of its electricity demand. These data centres could draw power from the grid, but their ability to do so depends on the electricity mix of the region in which they operate. Countries that power AI development with renewable energy will outcompete those still dependent on volatile fossil fuel markets, all while reducing environmental impact.
However, realising this opportunity requires a nationwide commitment. Accelerated investment is needed to support the companies building this critical infrastructure, and it is needed now.
Without serious investment in grid infrastructure, Wales’ clean energy potential risks being stranded in its hills and coastlines, leaving that capacity untapped and the country just as vulnerable when the next oil crisis arrives.
There has never been a better time for Wales to invest and get ahead in an area where it already has a head start. The wind, coastlines, and mountains have always been there, but what previous energy crises have exposed is not a lack of natural resources, but a lack of infrastructure to harness them. That gap is now being closed, but not quickly enough.
Wales has the geography, the targets, and the companies ready to build. What it needs now is the funding to match its ambition.
