Ein cyf/Our ref: NICW/25/EnergyUpdate

Rebecca Evans MS

Cabinet Secretary for Economy, Energy and Planning

3 October 2025

Dear Rebecca,

Re: Welsh Government response to NICW’s Preparing Wales for a Renewable Energy 2050 recommendations – areas requiring clarity and action

I wrote to you in July to highlight NICW’s longstanding view that increasing levels of local ownership of energy projects in Wales is central to ensuring that value is retained within our communities. I was grateful for the opportunity to meet with your officials to expand on our recommendations following the 2023 report on accelerating renewable energy deployment.

We continue to note that many large-scale renewable projects—such as the recent floating offshore awards—remain predominantly owned outside Wales, which risks the majority of benefits leaving Wales. Our 2023 report suggested a mandatory local/community equity offer (on commercial terms, with proportionate risk-sharing). We drew this from strong international examples, such as Denmark’s approach since 2011.

Our analysis indicates that greater local ownership tends to support community acceptance and long-term consent. When people, councils and enterprises hold a stake, rather than only receiving community-benefit payments, projects are more likely to gain durable support, embed value locally, and reduce risks of opposition.

In that spirit, and ahead of forthcoming scrutiny, we set out below some areas where additional clarity, direction, or next steps would be welcome:

1. National vision and targets (capacity and ownership)
   

• Issue: Wales currently lacks a clear ministerial vision for our contribution to GB generation, by technology and ownership.
  
• Suggestion: On publication of the NESO Strategic Spatial Energy Plan, a Ministerial Statement could help by confirming Wales’s contribution and setting indicative ambitions (e.g., capacity ranges, siting interfaces, and a minimum % of local/community equity by project type).
  

2. Legislative tools for ownership and consent
   

• Issue: Current planning law limits consideration of ownership, which weakens alignment between projects, benefits, and community consent.
  
• Suggestion: We would welcome the Government’s perspective on whether legislative change might enable material weight for local/community ownership in planning, mandate equity offers (e.g., a 20% baseline), and potentially streamline repowering where local equity exceeds a threshold (e.g., ≥40%). A separate study commissioned to understand the options and international examples and models could be helpful to support any legislative action
  

3. Community benefit vs. community ownership
   

• Issue: Benefit payments are important but cannot substitute for equity if long-term value is to remain in Wales.
  
• Suggestion: Clarification on how future policy and the sector deal will ensure equity offers sit alongside benefit payments, and how uptake will be monitored, would be helpful.
  

4. Built environment standards – solar PV and storage readiness
   

• Issue: Wales risks falling behind EU norms and England without proactive measures.
  
• Suggestion: It may be timely to consult on rooftop solar PV (with exemptions) and battery readiness as part of current Building Regulations work, with a clear timetable.
  

5. Permitted development
   

• Issue: We understand review work is underway.
  
• Suggestion: A public timetable for conclusions and intended flexibilities (heat pumps, rooftop solar, battery storage) would aid certainty.
  

6. Planning capacity – pooled resource and digital enablement
   

• Issue: We welcome pooled-resource pilots but note uneven coverage and recruitment constraints. AI-assisted analysis could help relieve pressure.
  
• Suggestion: Publishing a rollout plan for pooled planning capacity, alongside plans for AI procurement frameworks with appropriate guardrails, could provide confidence.
  

7. Sector deal – ownership and supply chain
   

• Issue: Developers value certainty.
  
• Suggestion: Outlining intended commitments on ownership, local supply chains, and skills within the sector deal, together with monitoring arrangements, would be valuable.
  

8. Crown Estate – revenues and devolution pathway
   

• Issue: We welcome the formation of an expert group to assess the devolution of the Crown Estate. Without change, Wales may host offshore assets while retaining limited fiscal benefit.
  
• Suggestion: Clarifying near-term options for hypothecating Welsh marine-renewables revenues (for grid, ports, skills, community equity) and the longer-term devolution pathway would support strategic planning.

These points are offered as constructive input, recognising the considerable progress that has already been made. We hope they can assist in shaping a clearer, faster and more equitable pathway for Wales’s renewable energy future.

Yours sincerely,

Dr David Clubb - Chair