A new energy company for Wales, but what’s actually changing? 

By Will Davies – Account Executive

Adam Price MS, Cabinet Minister for Enterprise, Connectivity and Energy, has launched a consultation on a consolidated Welsh public energy company. The Welsh Government is presenting this as the delivery of a manifesto commitment. However, the consultation precedes the National Energy Strategy, which will define the company’s role, leaving important questions about its mandate, funding, and relationship with industry unanswered.

A manifesto promise delivered?

Let’s start with delivery.

In its 100-day plan, the Plaid Cymru administration promised to prioritise a new National Energy Strategy, including a Renewable Energy Sector Deal, as well as measures to promote community-owned renewables. It is also committed to developing Trydan Gwyrdd Cymru into a single, consolidated energy company with a remit to help reduce energy bills over the medium to long-term.

More than 100 days into the new administration, neither the National Energy Strategy nor the Renewable Energy Sector Deal has been published. Publication is not expected until later in 2026.

The direction of the National Energy Strategy has also departed from that which was promised in the 100-day plan. The plan promised generation targets for individual technologies. The Welsh Government has since indicated that the strategy could move away from renewable energy targets and instead focus on emissions-reduction targets.

This is a seismic change for developers making investment decisions in Wales, and coupled with mandated shared ownership and benefits, is causing real concern for the delivery of onshore wind and solar.

Technology-specific targets provide a clear signal about the scale and mix of generation that the Welsh Government hopes to see. An emissions-based approach, however, offers less certainty to industry and represents a departure from the initial 100-day plan.

This is not the first such revised commitment. Shortly before entering office, Plaid Cymru revised its net zero by 2035 target to a net zero by 2040 ambition. The change was an early sign that the demands of government would test the party’s commitments.

What actually changes?

Not a great deal. Trydan Gwyrdd Cymru already develops renewable energy projects on the Welsh public estate. Ynni Cymru supports community and locally owned energy projects. The Welsh Government Energy Service provides technical and commercial support. The central proposal of this consultation is to bring these functions together within a single organisation and under a single brand. The consultation even asks which existing name the new body should use.

A single organisation could reduce duplication and give developers and communities one public-sector body to engage with. But without new powers, capital or delivery responsibilities, this is just a merger and rebrand rather than a significant intervention in the energy market.

The Welsh Government has set clear limits on the company’s role. It will not supply energy to consumers, set household prices or seek to displace private developers. It will also remain separate from Great British Energy.

The 100-day plan gave the company a “clear remit to help reduce energy bills”. The consultation instead says that greater Welsh ownership “could” reduce costs “over time”. This appears a watered-down commitment, with no direct mechanism showing how the reorganisation would reduce household bills.

Company first, strategy later

The National Energy Strategy is intended to be the document that will map energy needs in Wales, reshape where development happens, and outline the timelines needed to deliver the Welsh Government’s ambitions. It was also intended to define the role of the public energy company. This energy strategy has not yet been published, and the company is being consulted on it before that wider framework is even published.

This creates difficulties for the industry. Developers are being asked to comment on the structure of an organisation without being privy to the targets, policy frameworks or delivery timelines within which it will operate.

How will the company select projects? How will it contribute to emissions reduction targets? Will its involvement affect planning or consenting expectations? These questions cannot be answered properly without the National Energy Strategy.

The changing approach to targets is more consequential for industry than the consolidation itself. It will affect investment decisions, project pipelines and confidence in the Welsh market. It deserves at least as much scrutiny as the structure and name of a consolidated public energy company.

Ownership, ownership, ownership.

One thing is clear throughout this debate. Ownership is the most important thing to this administration. As part of the consultation, the Welsh Government is seeking views on whether renewable projects above a specified threshold should offer between 15 and 25 per cent local or community ownership. The public energy company could hold equity on the communities’ behalf, with returns retained and distributed through a proposed Welsh Energy Wealth Fund.

For developers, the key questions are which projects would be covered, when ownership must be offered and whether the requirement would be voluntary, contractual or linked to planning and consenting.

The consultation also differs from Plaid Cymru’s manifesto, which applied the ownership expectation to projects above 10 MW. The consultation considers a lower threshold of 5 MW, potentially bringing a wider range of developments within scope.

Who pays?

The consultation suggests that the company could invest in larger developments, potentially including offshore wind. That ambition needs capital.

Large renewable energy projects require substantial investment, often before they generate any return. If the company is expected to act as a developer or co-investor, its credibility will depend on the funding available, its risk appetite, and its ability to make commercial decisions.

The consultation does not explain whether that capital would come from direct Welsh Government funding, borrowing, project revenues or private investment.

What it means.

The consultation delivers a manifesto commitment, in that the Welsh Government has brought forward plans for a consolidated company. What remains to be seen is how this fits into the upcoming National Energy Strategy and what the implications are for the new Renewable Energy Sector Deal.

A single organisation could simplify engagement, strengthen public-sector expertise and give communities a clearer route into project ownership. But a new structure will not deliver projects on its own.

The energy industry needs clarity on the company’s mandate and relationship with developers. Until the National Energy Strategy and Sector Deal are announced, the proposals above remain a rudderless ship.

The consultation closes on 30 November 2026. If you would like support in developing a response, please get in touch.