A new deal has been launched to ensure Wales meets its renewable energy targets whilst maximising the benefits for communities.
The Renewable Energy Sector Deal will be a strategic partnership between Welsh Government and industry.
It coincides with the publication of the latest Energy Generation and Energy Use in Wales report, which shows renewable electricity generation in Wales in 2024 was equivalent to 54% of its electricity consumption.
The target is for renewable electricity generation to meet 70% of consumption by 2030 and 100% by 2035, whilst also delivering at least 1.5 gigawatts of locally owned renewable energy capacity by 2035.
The Welsh Government said the Sector Deal will help deliver on these “ambitious”targets by accelerating renewable deployment across onshore and offshore wind, solar, marine and hydro. It also aims to strengthen supply chains, build the workforce of the future and ensure that communities across Wales reap the benefits.
Rebecca Evans, the Cabinet Secretary for Economy, Energy and Planning, launched the Sector Deal on a visit to the Morlais tidal energy project, in Anglesey.
Owned and managed by the social enterprise Menter Môn, the Morlais scheme – in which the Welsh Government has an £8 million equity stake – will become the largest consented tidal energy project in Europe.
The Cabinet Secretary said:
“Our ambition is to become a world leader in renewable energy, creating jobs and green growth to make families in Wales more prosperous and to help with the cost of living.
“The current conflict in the Middle East has further highlighted the importance of energy independence. Our Renewable Energy Sector Deal will provide a strong foundation for the future delivery of renewable energy to the benefit of our economy, environment and energy security.
“The Morlais project is a strong example of how sustained partnership can unlock Wales’ natural energy resources and convert them into lasting economic opportunity for local communities and businesses.
“The Energy Generation and Energy Use report also shows we are making progress towards our renewable energy targets. Combine this with the record 20 major renewable energy projects, totalling 1,400 MW, to receive backing in the latest UK Government Contracts for Difference auction round and it is clear we are creating an environment for a more resilient, renewable energy-powered future.”
Dafydd Gruffydd, Managing Director of Menter Môn, said:
“The Renewable Energy Sector Deal is an important step in accelerating the growth of renewable energy in Wales and across the UK. For Menter Môn, it recognises the important role marine energy schemes like Morlais can play in strengthening energy security, creating high-quality jobs, and delivering long-term economic benefits for local communities like Anglesey.”
The Sector Deal was co-produced by a Task and Finish Group of developers and community organisations.
RenewableUK Cymru has welcomed the launch, describing it as a major step forward for Wales’ energy security, affordability and long‑term economic growth.
The deal, also known as Cymru Clean Power, is “a landmark moment for Wales because of what it represents: a practical partnership between government and industry to deliver the right energy mix Wales needs for decades to come”, the organisation said.
Jessica Hooper, Director of RenewableUK Cymru, said:
“By scaling up home‑grown renewables, Wales is showing leadership by reducing our exposure to global shocks beyond our control – and commitment to building an energy system based on affordable, secure power produced here at home.
“Wales has world‑class natural resources – our wind, coastline and weather are strategic national assets. Turning that advantage into jobs and long‑term prosperity will depend on working together to remove barriers and anchor investment here in Wales. Cymru Clean Power will focus on the key constraints holding the sector back, including grid capacity, consenting and planning, and strengthening community energy and engagement.
“We now have a robust framework to work with whoever wins at the ballot box in May – and to advocate with one voice for the scale of action and investment that Wales needs. In a world of growing global uncertainty, that kind of consistency matters.”
Marine Energy Wales said:
“This sector deal reflects the significant collaboration that has taken place between Welsh Government and industry over the past year. Bringing together a wide range of voices from across the renewable energy sector has helped shape a shared vision for how Wales can accelerate clean energy deployment while maximising the economic opportunities for Welsh businesses and communities. It demonstrates what can be achieved when government and industry work together with a clear and ambitious purpose.”
Solar Energy UK said:
“Solar energy is vital for Wales – for the economy, for employment and for decarbonisation. Like any sector, it thrives in a positive and stable policy environment, which is just what the renewable energy sector deal delivers. Backed by the recent announcement that solar or other sources of renewable power will become a requirement for new build homes, we look forward to significant growth across Wales in the coming years.”
Laura Dunn, Senior Associate at the Energy and Climate Intelligence Unit (ECIU), said:
“Every solar panel and wind turbine we install reduces our exposure to volatility in energy markets – wind alone reduced the UK's wholesale electricity prices by a third last year – and, in the long term, lays the path towards genuine energy independence not controlled by global geopolitical events.
“With industry bodies warning that Wales is in danger of falling behind the rest of the UK when it comes to scaling up its new renewables capacity, the Middle East conflict is a sobering reminder of the benefits of speeding up the delivery of new renewables, insulating Welsh households from global energy price shocks, and boosting energy independence.”
