The new Marine Energy Wales State of the Sector Report 2023 has unveiled a record-breaking £103.4 million investment and spending in the Welsh marine energy sector, nearly quadrupling the previous year’s figures.

The surge is attributed to infrastructure expansions that are paving the way for future deployments and sector growth. The report also sheds light on the sector’s employment landscape, gender distribution, and the economic potential of various technologies.

The tidal stream segment emerged as the largest contributor to the Welsh economy, with £45.1 million in spending and investment, closely followed by the supply chain at £44.7 million. The Floating offshore Wind (FLOW) sector demonstrated rapid growth, injecting £11.6 million into the economy in the past year. With the potential to generate £1 billion in economic opportunities over the next five years alone, FLOW is poised to play a pivotal role in Wales’ marine energy sector.

Tom Hill, Marine Energy Wales Programme Manager said:

“Revenue support for commercial-scale projects at a realistic market price is critical. The recent decision to reduce the tidal stream ringfence is deeply concerning, jeopardising megawatt-scale tidal deployment in Wales and the UK.

“Despite having the world’s largest pre-consented demonstration zone in North Wales, market mechanisms and the loss of access to European funding schemes pose challenges to this innovative sector.”

Economy Minister Vaughan Gething said:

“Wales’ coastline has abundant wave and tidal resources offering huge potential for marine energy generation. The sector is a major contributor to the Welsh economy, sustaining hundreds of jobs.

“Floating Offshore Wind is projected to produce £1 billion in economic opportunities within the next five years and the Welsh Government is committed to doing everything we can to ensure that the sector can access the skilled workforce it needs.

I’m delighted to see the sector go from strength to strength and the growth reported in this report is a remarkable achievement and the record investment the sector has attracted is testament to the confidence it enjoys by investors and stakeholders.”

Wales’ commitment to renewable energy

The report spotlights Wales for its dedication to renewable energy and the significant milestones achieved throughout the year. One notable achievement is the approval of Wales’ first floating offshore wind (FLOW) farm, Erebus, developed by Blue Gem Wind. This ground-breaking project has the capacity to generate clean power for 93,000 homes while exemplifying Wales’ commitment to responsible environmental stewardship.

Further strengthening Wales’ position as a marine energy hub, Magallanes Renovables received crucial UK Government support to deploy their tidal stream technology to the Morlais Tidal Demonstration zone off the coast of Anglesey. This milestone will enable the first tidal array in Welsh waters, delivering reliable and predictable energy to up to 5,000 homes upon completion in 2025.

Looking ahead: prospects and economic opportunities

The future of Wales’ marine energy sector is promising - the State of the Sector Report underscores the potential economic benefits and opportunities that lie ahead. FLOW projects alone are projected to create a £1 billion economic opportunity in the next five years. Tidal stream, supply chain diversification, wave energy, and tidal range technologies also demonstrate substantial growth potential, with estimated benefits of £261 million, £289 million, £118 million, and £69 million, respectively. Tidal stream and supply chain are also set to benefit from this industry. Both are predicted to deliver an excess of £250 million to the Welsh economy.

To fully harness these prospects and ensure a thriving marine energy sector, the report emphasises the importance of strategic infrastructure investment, skills and talent development, and an industry supportive political environment to allow this industry to continue to soar to new heights.

First Minister, Mark Drakeford quoted in the report:

“The Welsh Government is making a huge commitment to the offshore renewable energy sector.

I truly believe that it could be a catalyst to providing not only green electrons and decarbonising our communities and business, but also providing high quality career opportunities throughout Wales.

We applaud the work of MEW and the wider marine energy sector and hope the great achievements made to date continue. The challenge of climate change facing all of us is too great and too important not to give our best efforts.”

Click here to download the report in full