As we step into 2025, the renewable energy sector in Wales stands on the cusp of transformative growth. New research highlights a £47 billion Welsh investment opportunity from meeting our renewable energy targets in wind, solar and tidal energy.
The groundwork laid in 2024, coupled with the renewed political focus on green economic growth, offers unparalleled opportunities. Yet to truly harness this potential, decisive actions must be taken this year.
Last year was a turning point for renewables in Wales. The new First Minister Eluned Morgan made green economic growth a top priority, positioning the renewable sector as key to delivering this vision. This strong leadership, combined with a mission-led UK Government, has created a sense of alignment and clarity that investors have long been waiting for. In 2024, we saw six onshore wind projects granted consent—the highest number yet in Wales. But while this progress is encouraging, Wales has a long way to go. At the current rate, our wind energy projects are forecast to make up only 5% of the UK's total capacity by 2035—a stark contrast to Scotland’s portfolio and the billions in economic growth and investment this offers.
2025 must build on this momentum. The UK Government’s clean power 2030 mission, which sets clear goals for doubling onshore wind capacity and tripling offshore wind capacity, has charted a course. But ambitions alone are not enough. The real challenge lies in execution—prioritising projects, resolving resource bottlenecks, and ensuring the supply chain is ready to deliver.
A pressing issue is the resourcing and expertise within planning teams. Local authority planning departments and organisations such as Planning and Environment Decisions Wales (PEDW) remain overstretched. With many professionals now learning on the job due to a lack of experience in handling large-scale renewable projects, this gap could become a critical roadblock. The £3.7 million announced in Welsh Government draft budget to accelerate planning decisions and digitise planning services is a good step in the right direction but this is not just about numbers; it’s about ensuring planners have the skills to navigate the complex requirements of renewable projects.
Another pivotal development this year will be the Celtic Sea leasing round, with the three winners set to be announced in March. This will kickstart the new era of floating offshore wind in our region and represents a massive opportunity, with each lease offering 1.5 gigawatts of capacity. Once awarded, they will bring significant attention and investment to Wales, and we expect to see ambitious plans for our homegrown industries, workforce and communities. However, we must address the glaring challenge of incentivising the first test and demonstration projects to get underway in 2025 by putting the appropriate level of government revenue support in place. These smaller-scale initiatives are crucial for developing local supply chains and giving Welsh businesses the experience needed to compete in larger projects. Without them, the leap from no turbines to hundreds of turbines will be impossible for many local firms.
The current structure of UK clean energy auctions puts these demonstration projects at a disadvantage. If no adjustments are made to incentivise smaller projects in this year’s auction, it will raise serious questions about Wales’s position within the wider UK industrial strategy. A system that prioritises capacity over cost alone could be a game-changer, enabling these critical projects to move forward and ensuring Wales doesn’t miss out on the economic benefits of its renewable potential.
Collaboration is key to unlocking this potential and bringing people along on the energy transition journey. Communities in Wales are already directly benefiting from renewable energy projects in their area through Local Electricity Discount Schemes, shared ownership programmes and community benefit funds – worth more than £6.5 million a year from onshore wind alone. The addition of Trydan Gwyrdd Cymru, Wales’ publicly owned renewable energy developer, should help enhance public acceptance by demonstrating further direct local benefits. Complementing this, the newly announced GB Energy at the UK level, provides an opportunity to amplify the impact and value to communities if both entities work in harmony.
Finally, clear political leadership is essential. Setting a firm direction of travel will inspire confidence across the board—from developers and investors to local authorities and communities. The renewable sector is ready to deliver, but it cannot do so alone. Wales must seize this moment with bold, coordinated action.
With the right decisions, 2025 could be a landmark year for renewables in Wales—a year where ambition translates into action, and opportunities are fully realised.
