Marine Renewables Industry

Debate between Liz Saville Roberts and Wera Hobhouse

Thursday 16th January 2025 Westminster Hall

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Diolch yn fawr iawn, Ms Jardine. I welcome you to your first chairmanship role here. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this debate.

With a wind-lashed coastline stretching for a grand total of 1,680 miles, Wales has an abundance of marine energy potential. This growing sector already contributes significant sums to the Welsh economy. Last financial year, the marine renewable energy sector delivered £29.9 million to the Welsh economy, and it currently sustains 429 full-time jobs. We would like the number of jobs to be way more than that, please.

Tidal stream is the largest contributor to the sector at present, and developers are set to deliver 28 MW-worth of development by 2028. That number is expected to grow with each annual auction round. For the future, it is estimated that Wales has the potential to generate up to 6 GW-worth of wave and tidal stream energy.

I have mentioned jobs. Development and installation of 1 GW alone could support 440 full-time jobs during generation—and those in communities that currently suffer deprivation. That is a theme for many Members of Parliament from what might be called the Celtic fringe, but it really matters to us. We have such potential to generate more energy for the United Kingdom in its entirety and to generate energy security, but at the same time this can be a real levelling-up prospect for communities that have suffered in low-wage economies. Particularly in relation to Wales, I could mention Holyhead; I could mention my own community of Dwyfor Meirionnydd; and I could mention Milford Haven. We should plan ahead and look at the futures of those communities, particularly somewhere like Milford Haven, which is so dependent on fossil fuel at present.

Wales is clearly poised to play a leading role in marine renewables. However, the sector is still in the early stages of development and needs Government support so that it can truly flourish. The Welsh Government have recently announced strategic resource areas for tidal stream, and I welcome that. It is a form of marine planning to designate the future availability of these areas for potential tidal stream energy projects. Of course, in Wales, as elsewhere, it is important to work with other key users of the sea, such as fishermen. There are tourism considerations as well.

This includes, just with regard to my own constituency, the sea off the Llŷn peninsula, where Swnt Enlli—Bardsey sound—has some of the strongest tidal races in the Irish sea. Proudly, Nova Innovation had a project there, but sadly, because of the lack of grid capacity, it eventually pulled out. It is exactly these problems with grid capacity that often hinder the bringing of projects to fruition in bringing their energy onshore from the sea.

Now, of course, I turn to Ynys Môn. I am speaking in place of my hon. Friend the Member for Ynys Môn (Llinos Medi), who is glad to be reopening one of the berths at Holyhead. As of today, ferries are again sailing from Holyhead, which is very good news for not just Holyhead and north Wales, but the connections with Ireland. We have existing tidal stream projects there, such as the Morlais project, and we see a potential model that addresses the problem of grid connection, which might be replicated elsewhere.

Morlais came about with major investment from both the European Union and the Welsh Government, with a grid substation already developed and the environmental consents already in place—that is the important point. That provides an offering to tidal stream developers in which there is a reduced cost and risk that mean that they are sure of getting their technology into the water.

[Wera Hobhouse (Bath) (LD)]

I know that the National Energy System Operator has just put forward proposals to Government on how to address the grid queue and how it should be renewed and reviewed. Does the right hon. Lady agree that we need to hear from Government as soon as possible what the reorganisation of the grid queue would mean and which projects would be prioritised?