Local communities should get more of the benefits from investment into green energy development, according to a Senedd Committee.
A report published today by the Senedd's Economy Committee calls for loopholes to be closed so that local communities benefit – not companies who only qualify by having headquarters in Wales.
It also calls for urgent work to tackle the skills gap to make sure Welsh workers are ready to take advantage of new green job opportunities.
Samuel Kurtz MS, member of the Senedd's Economy, Trade and Rural Affairs Committee, said:
"Investment in renewable energy and a thriving green economy presents a significant opportunity for Wales. Not only can it provide young Welsh people with quality jobs in their local communities, but it also has the potential to attract talent from around the world.
"Today’s report highlights the need for the Welsh Government to address loopholes in the definition of 'locally owned' renewable energy projects, ensuring that economic benefits remain within Wales.
"To maximise this investment, we must ensure that Wales has the necessary workforce skills for the economy of the future. The Welsh Government needs a clear understanding of where to strengthen our training and education system to help people prepare.
"Wales has immense potential to be a leader in the renewable energy sector, but the first step is for the Welsh Government to listen and act on our recommendations today."
‘Local’ loopholes
The Welsh Government has a clear target for renewable energy developments to be locally owned, but the Committee was concerned the definition of ‘locally owned’ does not require the owners to live close to the project. Instead applying to companies who just have an office headquartered in Wales.
The inquiry found renewable energy developments offer considerable benefits for local businesses and workers through direct employment and creating sustainable supply chains. The Welsh Government must do all it can to ensure that local workers and contractors benefit from these opportunities with targets.
The Welsh Government has set up Ynni Cymru and Trydan Gwyrdd Cymru to support community energy development, and to develop renewable energy projects on the Welsh public estate. The Committee will keep a close eye on how these organisations deliver against their objectives.
Green skills
The report also highlights a ‘skills gap’ in Wales; meaning that there is a shortage of people with the types of skills that are needed for green energy jobs.
For Wales’ economy to prosper, the Committee urged the Welsh Government to conduct a skills audit, identifying what skills are needed and ensuring that the education and training systems are ready for the opportunities of a green economy.
With Wales’ ageing population and ‘brain drain’ being well-established concerns, the Committee reiterate the potential that a thriving green economy could have for the country.
Successful green industries could give young Welsh people the jobs to stay in their communities and could also attract people from elsewhere to come to live and work in Wales.