Auriol Miller sets out a vision for how a devolved energy policy could work in Wales with a key role for housing and regeneration.
In today’s fevered political climate, lots of people are looking for certainty, or at least the semblance of it. For longer than a day, with any luck, so that people can feel that they can get on with actually doing something, rather than just watching the Brexit merry-go-round, which of course is not merry by any stretch of the imagination, and which is spinning nightmarishly out of control on a regular basis.
Housing and regeneration people who are keen followers of the intricacies of the process of devolution might therefore find considerable comfort in our latest IWA piece of work that does – clearly and succinctly – set out what is possible now, and what is entirely possible in the future too.
Through our collaborative project Re-energising Wales we set out to show how Wales might meet its energy demand through 100 per cent renewable energy by 2035. Drawing together energy system stakeholders in the public, private, third sectors and in academia and community groups across Wales, we deliberately focussed on the energy sector as a major economic sector in and of itself, not merely as a contributory factor in a purely environmental agenda. It’s an important distinction.
Evidence from the Intergovernmental Panel on Climate Change reminds us of the urgency of addressing climate breakdown, and the UK and Wales Governments have asked the Committee on Climate Change to advise on a net zero emissions target by 2050. Alongside this urgency, the shadow of Brexit threatens to disrupt the Welsh economy, and the opportunities that go with it, for many people living and working in Wales.
Over the past 20 years, legislation, policy and political commitments at the EU, UK and Wales tiers of governance have all played a part in setting out, developing and strengthening the framework for decarbonised energy. Wales currently has an ambition to secure 70 per cent of Welsh electricity use from renewables by 2030.
So let’s take as a starting point that the Wales Act 2017 concludes the current round of devolutionary rebalancing. With Brexit still unconcluded in so many ways it is unlikely a Westminster Government will have the capacity or desire to revisit the devolution settlements much before the early 2020s.
Our fifth Re-energising Wales report considered the governance perspective and set out A Framework for Action: Next steps for Regulatory and Policy Powers over Energy in Wales. Wales is entering a period when it will soon have its own intelligible, integrated energy regime. That regime will be made up of powers and policy that govern planning, onshore and offshore infrastructure, the built environment, fuel poverty and other elements of the energy system, such as the Marine Plan and the National Development Framework, along with new measures resulting from the Wales Act 2017 as they come into being.
In the short term, with the many varied challenges of Brexit, it is difficult to see a more positive UK policy environment in this field. We believe Wales can make substantial progress and should take immediate increased action in the areas where it has existing powers.
Housing and regeneration are key places for this to happen.
First, there are now considerable opportunities for different approaches arising in the housing, regeneration, and built environment sectors, given the devolution of planning and building regulations to Wales.
The newly revamped Planning Policy Wales Edition 10 sets out a clearer alternative path and new green building standards, with Lesley Griffiths AM underlining:
‘I want to make sure when planners and developers are formulating their plans and schemes, they think first and foremost about the people who will live there and how they will go about their everyday lives… This involves thinking about environmental, social, cultural as well as economic needs, including the impact on both mental and physical health, caused by new developments.’
We are seeing the Well-being of Future Generations (Wales) Act starting to show its mettle and as it begins to filter through Welsh Government ministers’ approaches and mindsets.
A strategic shift to renewables will deliver considerable co-benefits and fulfill many of Wales’ well-being goals under the Well-being of Future Generations (Wales) Act 2015:
- with the right development and ownership, renewable deployment will bring and retain prosperity to Wales and the people of Wales
- a renewable approach tends to be a decentralised and distributed approach, which can offer greater resilience
- reduced demand for energy, particularly for heat, would be good for prosperity and health if it reflects properly insulated homes that are also power stations
- community and local ownership of energy generation can contribute to cohesion and thriving communities
- greater renewables deployment, displacing fossil fuel use, helps Wales contribute as a globally responsible nation.
One of our main recommendations was a 12-18 month Low Carbon Stimulus to accelerate action on renewable energy and energy efficiency. Among the key building blocks that would support this are the setting of interim targets to guide all those involved in delivery and to benchmark progress en route; ensuring mechanisms of delivery are aligned to this ambition, and making the most of all the relevant powers that arrive with the Wales Act 2017.
The establishment of the four regional economic collaborations emerged clearly as a route to action within our research. Taking a strategic view of the energy opportunities across the four areas would give each their best chance of flourishing. Being focused on this ‘tier’ approach benefits from sufficient scale across the built environment, transport and the economy of an area, while being close enough to the work to engage local authorities and other partners in collective action. The rural nature and the existing energy infrastructure of mid Wales, for example, means the region potentially holds a different energy future (for example, all electric) to that of the other regions.
This growing Welsh emphasis on local area energy mapping, combined with the energy interest of the four regions suggests a different approach is needed which more clearly unites energy, home, place and community.
This is why we have called for a new Welsh Government cabinet portfolio which unites energy, home, place and community, so as to make the most of Welsh powers in the energy domain, for instance by making homes more energy efficient – if not turning them into power stations – and by building community and local ownership. Wales has 1.4 million homes across a wide range of housing types. Buildings accounted for 9 per cent of Welsh emissions in 2016 with residential buildings making up 82 per cent of this sector’s emissions and there are 291,000 households living in fuel poverty – 23 per cent of households in Wales. Countries which have more energy efficient housing have lower excess winter deaths. Ours doubled to 3,400 in 2017-18.
Housing is the nexus where this all comes together and much more attention needs to be given to the crucial role the housing sector can play in shaping our collective future.
Action focused beyond 2021 should then concentrate on changing the energy framework to best suit Welsh ambitions. That would include joining efforts with the other devolved nations, and devolved localities of England, in lobbying for changes to energy (system) regulation to secure the transition to a decentralised renewable energy system that will benefit Wales, with the expectation that this would lead to primary legislation in the UK Parliament after 2022.
Our essential actions to re-energise Wales have shown how Wales could be 100 per cent powered by renewables by 2035. Wales does not need further powers to act in the immediate future. The time for greater action is now, in this Assembly, and from this Welsh Government, not the next, or one after that.
First Minister Mark Drakeford needs to drive an agenda of a wholly renewable Wales to put his government on the right side of these opportunities for Wales. It is now that Wales needs to show its can-do attitude.
Let’s make the most of this opportunity to build a cleaner, green chapter in our industrial story.
Auriol Miller is director of the Institute of Welsh Affairs. For all the detailed background reports that underpin these essential actions, see www.iwa.wales/news/2019/03/re-energising-wales-2/
Recommendations
Our 10 essential actions to re-energise Wales by 2035 are:
- Fund the future: through an immediate 12-18 month low carbon economic stimulus for Wales which accelerates action on renewable energy and energy efficiency
- Renew Wales’ homes: through improved building standards and a long-term greener homes programme
- Retain the benefits in Wales: by requiring all new renewable projects above 5MW to have between 5 and 33 per cent community and local ownership by 2020
- Use local land for local benefit: by ensuring that planning regulations and public land are used in support of new renewable energy schemes and create maximum local benefit
- Focus on delivery: by ensuring there is sufficient capacity and expertise in key public bodies to deliver the vision in practice
- Future-proof the grid: by getting the electricity grid ready to meet Wales’ energy aspirations
- Get SMARTer: by ensuring Welsh businesses, local and community organisations are supported to capitalise on and lead the shift to smarter energy technology and business transformation
- Get ahead in marine: by taking a coordinated approach between government, industry, academia and others to establish a global advantage over marine energy and floating offshore wind as niche Welsh services
- Harness the potential of bioenergy: enabling Wales to create a world class circular economy
- Decarbonise transport: through a comprehensive ‘Transport Decarbonisation Plan’ co-produced by key public bodies and the transport sector, backed up by a national travel survey
They are set out in A plan for Wales’ renewable energy future: Essential actions to re-energise Wales by 2035
www.iwa.wales/wp-content/uploads/2019/03/IWA_Energy_WP6_Digital-2.pdf