THE Scottish Government has come under fire for having "no ambition" after the Welsh Government took its next step in creating a new publicly owned national energy company.
SNP ministers came under fire last year for claiming Scotland would need the full powers of independence for such a move while the Labour-run administration in Cardiff set up the publicly owned wind and solar developer Trydan Gwyrdd Cymru (Green Electricity Wales) in 2024.
Last year the company announced plans for three wind farms on publicly owned Welsh woodlands which would be able to generate up to 400 MW of clean electricity, enough to power around one in four Welsh homes.
In 2017, then-Scottish first minister Nicola Sturgeon pledged to establish a “publicly owned, not-for-profit energy company”, but the policy was dropped after the 2021 Holyrood elections.
The Welsh Government has now launched a consultation on proposals to bring existing public energy organisations together into a single company designed to increase Welsh ownership of renewable energy and keep more of the economic benefits generated in Wales.
The proposed company would aim to develop a stronger publicly owned energy sector, with revenues from projects reinvested in communities and public services. The company would also work with communities, businesses and public services to help them make greater use of energy generated in Wales.
Former Scottish energy secretary Gillian Martin previously told MSPs that setting up a publicly owned energy firm was "not something we are able to do at the moment with the current devolution settlement".
Robin McAlpine, from the Common Weal think tank, partnered with Plaid Cymru during their time in the Welsh government to lay the groundwork for Trydan Gwyrdd Cymru.
He said the launch of the Welsh consultation shows a lack of ambition from the Scottish Government.
McAlpine said: “There’s a quote from Henry Ford which I love which applies here. He said ‘whether you think you can or can’t, you’re probably right’.
"That is the difference between the Welsh approach and the Scottish approach to energy. Both have the same constitutional barriers but the Welsh have decided to try and do something and the Scottish Government has decided not to try.
"I’ve heard all the talking points about how Westminster won’t let us but the Welsh are showing that this is just an excuse.
"If you wake up every day with no ambition, everything looks impossible.”
John Swinney did say in the run-up to the election he would push the UK Government over the devolution of energy policy.
In a speech in December, he outlined proposals to give Scottish communities the right to own up to 20% of renewables projects in their local area and cut the UK’s “nuclear levy” and end “the folly” of constraint payments.
He argued that the measures could together cut Scottish people’s energy bills by up to one-third – but that they would only be possible with independence.
Common Weal has advocated for an energy company co-ordinated and funded by the Scottish Government but where wind farms are owned by local authorities which it believes is possible in the current settlement.
The company being consulted upon in Wales would not replace existing energy suppliers or directly control the prices households pay for gas and electricity.
The Welsh Government says greater Welsh ownership of energy projects could nevertheless help reduce costs over the longer term.
Cabinet minister for enterprise, connectivity and energy Adam Price said: “Wales has huge potential to generate clean energy from our natural resources.
“We want to make sure the benefits of that energy are felt by people and communities across Wales, both in jobs and growth but eventually in lower bills too.
“Wales is on the verge of another energy revolution and this time we want to make sure we keep more of the benefits here.
“This consultation is about how we can build a stronger Welsh energy sector, support local ownership and create lasting value for future generations. It’s about cheaper, cleaner energy that is made and owned in Wales."
A Scottish Government spokesperson said: "A national public energy company that is involved in large-scale energy generation would only be possible in an independent Scotland where we had full powers over the energy market and full access to borrowing.
“Ministers are already addressing many of the issues identified in the Welsh Government consultation, including strengthening our ability to deliver renewable and low carbon energy projects and smarter energy systems and retaining more value from these energy developments for people and communities.
“As set out in the Programme for Government, this includes taking action to ensure Scotland benefits from the energy transition, including establishing a ScotWind wealth fund to maximise public value from investment. Through our £500 million Just Transition Fund, we are supporting jobs, skills and communities, while increasing funding for our Community and Renewable Energy Scheme to £15 million this year to help more communities develop their own renewable energy projects.
“However, many of the key powers needed to deliver a fair energy transition remain reserved to the UK Government. That is why we have formally requested the devolution of energy powers to the Scottish Parliament. With those powers, we could take the decisive action needed to tackle fuel poverty in the short term, de-link energy costs from volatile global gas markets, and ensure Scotland's households, communities and businesses feel the full benefit of our energy wealth.”
