RenewableUK Cymru calls on Welsh Government to back route which maximises jobs, investment and community benefits.
New economic analysis by BiGGAR Economics, published today by RenewableUK Cymru, shows that a proposed electricity grid transmission route through Wales could unlock an additional £1.3 billion of spending with Welsh businesses and support 540 long-term jobs compared with an alternative route which would bypass Wales.
The report, The Full Value of Connection, examines options identified by the National Energy System Operator (NESO) in its Beyond 2030 – Electricity Transmission Update. It concludes that only the Western MWNC option, including a new substation in Mid Wales, would allow Wales to capture the full economic benefits of grid investment. Crucially, most of that value would come not from constructing the grid infrastructure itself, but from the long-term operation of the onshore renewable energy projects it would enable, creating sustained opportunities for Welsh businesses.
According to the analysis, MWNC would provide up to 3GW of additional connection capacity for Welsh onshore wind and solar, beyond the capacity needed to meet NESO's requirements for moving bulk power north to south. This additional headroom would create two distinct sources of long-term economic value for Wales: recurring benefits for local communities and highly productive employment that could help narrow Wales's productivity gap with the rest of the UK.
The projects enabled by the route could generate almost £60 million every year in business rates and community benefits for Mid and North Wales, providing lasting value long after construction ends. The analysis also finds that the jobs supported would be 62% more productive than the Welsh average, contributing to the Welsh Government goal of halving Wales's productivity gap with the rest of the UK within ten years.
By contrast, the report warns that the alternative MWN1 option would bypass Wales, reducing the capacity available to connect Welsh renewable energy projects and leaving the sector smaller and less competitive. That would also make it harder for Welsh Government to achieve its ambitions for growth, productivity and industrial renewal.
Jess Hooper, Director of RenewableUK Cymru, said:
'This decision is about far more than where pylons go. It is about whether Wales has the infrastructure it needs to build a stronger economy, and whether the value created stays here in Wales.
'A route through Wales, including a new substation in Mid Wales, would unlock renewable energy projects, jobs and sustained opportunities for Welsh businesses. But its true value would go further than the benefits we have been able to quantify from those projects alone.
"Energy infrastructure underpins the whole economy. Giving businesses confidence that the grid will be there when they need it can help them expand, invest and grow, attract new industries to Wales and support existing employers to decarbonise. That is why the choice of route matters - not only for the energy projects it enables, but for the wider ripple effect of prosperity it creates throughout Wales.'
Last month, a coalition of business and energy organisations wrote jointly to Cabinet Minister for Enterprise, Connectivity and Energy, Adam Price MS. The signatories included the leaders of Powys and Ceredigion councils through the Mid Wales Growth Deal - a significant endorsement from the areas that would host much of the new infrastructure. Today's report sets out the investment, jobs and recurring local benefits that those communities and the wider Welsh economy stand to gain.
- Read "The Full Value of Connection - an economic analysis of Welsh grid options."
- Simon Cleary from BiGGAR Economics will be presenting the detailed findings behind this research at Future Energy Wales on 4th Nov at ICC, Newport. Tickets available here
Source: RenewableUK
