A lack of ambition and strategy is holding back investment in renewable energy in Wales, a new report has claimed.
The report, entitled Funding Renewable Energy Projects in Wales by the Institute of Welsh Affairs (IWA) called on the Welsh Government to develop a comprehensive energy strategy, which it said would give investors more confidence.
It also recommended using business rates relief to help stimulate investment and highlighted the role local authority pension funds could play in unlocking projects.
“Wales needs to reach its renewable energy potential by taking advantage of its ‘abundance of natural resources’ and should do so by investing in a way that ensures wider economic and social benefits are retained locally in Wales,” said report coordinator, Shea Buckland-Jones.
The report also calls for the creation of a new charitable or not-for-profit body, which will help support investment in Welsh renewable energy projects.
In particular, it claims such a body could partner up with an investment platform and help develop community-owned schemes.
The co-founder and managing director of the investment website Abundance, Louise Wilson, said: “The people of Wales deserve the opportunity to invest in home-grown renewable projects and earn a fair, tax-free return through an ISA, while helping to deliver clear environmental, economic and social benefits for Wales.”
A spokesman for the Welsh Government spokesperson said they have “repeatedly challenged the UK Government to reinstate the necessary support for the most affordable renewable technologies, solar and wind, as well as supporting the development of newer technologies such as wave and tidal”.
“This lack of funding is the greatest barrier to further deployment,” added the spokesman.
“Our innovative support for local energy has seen us support and de-risk the development of a pipeline of projects, many of which are already generating energy and income. We have made £25m available this financial year to develop a range of projects in the Welsh public and community sectors.
“There are renewable energy projects across Wales which are entitled to support through both our £100m Small Business Rates Relief Scheme and £10m transitional support scheme.”