2024 was another successful year for the marine renewable energy sector, both here in Wales and across the world.
There is now just ten years left to reach the Welsh Government’s target of meeting 100% of the country’s annual electricity needs from renewable energy by 2035, and whilst the latest figures show we are making progress, currently generating around 59% from renewable energy sources, there is still a considerable journey ahead.
2025 is shaping up to be a landmark year for the tidal stream and FLOW industries in Wales, and our focus at MEW for the weeks and months ahead is on ensuring the industry receives the support it needs to continue progressing and start delivering.
Let’s look at some of the key highlights and industry updates that have helped shape the past year.
january: ‘Bidders day’ for floating wind developers
2024 got off to a productive start for floating offshore wind developers in Wales, with The Crown Estate hosting an industry event on Offshore Wind Leasing Round 5 – which aims to deliver up to 4.5GW of new renewable energy through three floating wind farms in the Celtic Sea.
Developers were given more detail on the upcoming process, including a confirmation that the end bidding date had been brought forward to March 2025.
A shortened timeline on Round 5 is something we at Marine Energy Wales, specifically through the Celtic Sea Developer Alliance, has been calling for.
January also saw a public consultation launched for Llŷr 1, a test and demonstration project by Floventis in the Celtic Sea, that is expected to power just over 100,000 homes with clean, green energy.
February: Celtic Sea Blueprint launched & morlais officially handed over
In February, an independent study determined that delivery of the first three floating offshore windfarms in the Celtic Sea could generate enough energy to power more than four million homes, deliver £1.4 billion a year to the UK economy and create more than five thousand jobs over five years.
The Celtic Seas Blueprint, commissioned by The Crown Estate, also looked at the minimum requirements needed to deliver the first three projects.
February saw an important milestone for Anglesey tidal energy project, Morlais too, with civil engineering firm Jones Bros officially handing over the substation to the site’s owner, Menter Môn Morlais.
March: FLOWMIS for Port Talbot & a bumper CFD budget
An ambitious project to transform the port of Port Talbot into a major hub for Floating Offshore Wind went one step further to securing a share of up to £160 million of UK Government funding in March of this year.
The UK Government agreed to take forward the Future Port Talbot project and the Port of Cromarty Firth in Scotland to undergo due diligence, as part of the next stage of its Floating Offshore Wind Manufacturing Scheme (FLOWMIS).
March also saw the UK Government outline their budget for the next Contracts for Difference auction, confirming a £10 million ringfence for tidal stream projects and an increased funding pot for wave, tidal and floating offshore wind developers to bid into.
april: 2024 industrial growth plan unveiled
This Spring saw the publication of the 2024 Offshore Wind Industrial Growth Plan. A joint document by The Offshore wind Industry Council, Renewable UK, The Crown Estate and Crown Estate Scotland, the plan sets out recommendations on how to triple offshore wind manufacturing capacity over the next ten years, and establish the UK as a global leader.
April also saw an announcement that the green light had been given to build Europe’s first commercial-scale floating offshore wind farm off the coast of Scotland.
Once completed, Green Volt will include around 35 floating wind turbines, and provide up to 560 MW of renewable energy capacity off the coast of Aberdeenshire.
MAY: £50 million fund launched for uk supply chain
In May, The Crown Estate established a new £50 million ‘Supply Chain Accelerator Fund’, to develop the offshore wind industry’s domestic supply chain.
Images were also released this month, revealing elements of a new £6.25 billion renewable energy scheme in Swansea. The project includes a tidal lagoon, renewable energy transport hub and an oceanic and climate change research centre.
june: a month of industry collaboration
June saw some high-profile industrial collaboration, with one Wales-based project, designed to develop low-carbon steel, awarded nearly £1 million in funding. The Launchpad project is a collaboration between Marine Power Systems (MPS), Tata Steel, Swansea University, Associated British Ports and engineering and fabrication company, Ledwood Engineering.
Tidal energy developers Inyanga Marine Energy Group and Verdant Morlais Ltd also signed a collaboration agreement to deliver a 4.9MW project at Morlais. The project plans to make use of Inyanga’s patented HydroWing technology.
july: 2024 state of the sector report is launched
July saw the launch of our 2024 State of the Sector report, which revealed that Wales’ marine renewable energy sector delivered an impressive £29.9 million to the Welsh economy during the 2023/24 financial year.
The report collates spending and economic data from our network, and highlights and celebrates Wales’ achievements within the industry over the past 12 months.
The new UK Government also demonstrated its commitment to advancing the renewable energy sector, with announcements on the creation of GB Energy and new investment powers for The Crown Estate.
august: UK Wind power reaches historic 30gw milestone
In August, the UK hit a historic milestone of 30 gigawatts of wind generation capacity. The opening of SSE Renewables’ Viking Wind Farm on the Shetland Islands boosted the country’s capacity by 443MW, taking the total past the 30GW threshold.
Closer to home, August saw Deputy Prime Minister Angela Rayner, First Minister Eluned Morgan and Secretary of State for Wales, The Rt Hon Jo Stevens MP, officially open the Pembroke Dock Marine project. The project has delivered new, world-leading port infrastructure to drive forward innovation and create new opportunities for industrial growth.
september: tidal stream leads as ar6 results are published
The results of the UK Government’s Contracts for Difference were announced in August, with an additional 10MW of tidal stream capacity contracted in Wales.
The latest results mean Scotland now has 83MW and Wales 38MW of contracted tidal stream capacity. There has still not been a successful project contracted in England.
The Crown Estate also launched two reports in August, outlining its vision for how the UK’s seabed can support the transition to clean energy.
october: new national energy system operator for UK
The UK’s new National Energy System Operator (NESO) was officially launched in September. NESO has been commissioned by the UK, Welsh and Scottish Governments to develop the first Strategic Spatial Energy Plan (SSEP) for Britain.
It’s hoped the plan will help optimise and accelerate the transition to clean, secure and affordable energy by providing greater engagement, consultation and clarity to communities, industry, investors, and consumers on the shape of our future reformed energy system.
Applications also opened in September for the second national cohort of the Fit for Offshore Renewables (F4OR) programme.
november: clean industry bonus and new welsh crown estate commissioner
Last month, the UK Government announced a new initiative to encourage offshore wind developers to invest in key industrial regions, coastal communities and oil and gas hubs across the UK.
Introduced by Prime Minister Keir Starmer at this year’s COP29 Climate Talks in Azerbaijan, the Clean Industry Bonus (CIB) initiative is designed to reward firms for investing in sustainable, local suppliers across Wales, Scotland and Northern England.
November also saw an announcement from The Crown Estate on plans to appoint a Welsh representative, to ensure Wales benefits from future offshore energy projects.
december & looking ahead to 2025
December 2024 brought with it a flurry of announcements for the marine renewable energy industry in Wales. The Crown Estate announced the 13 successful organisations, five of which are planning operations in Wales, who will share nearly £5 million in funding, as part of their innovative Supply Chain Accelerator.
The UK Government set out their plan for “a new era of clean electricity”. The Clean Power Plan 2030 is a detailed plan for achieving the target of clean power by 2030, providing the foundation for the UK to build an energy system that can bring down bills and build new energy infrastructure. The plan set out bold measures to get more homegrown, clean power to people including: cleaning up the grid system, speeding up decisions around planning permissions and expanding the renewable auction process to stop delays and get more projects connected.
This month also saw the launch of a joint report by ourselves at MEW, the Offshore Renewable Energy Catapult and Celtic Sea Power, urging decision-makers to recognise the existing capabilities of the Celtic Sea region when it comes to supporting the UK’s future floating offshore industry and net zero targets.
At MEW, we remain committed to driving the industry, advocating for change and fostering collaborations that can enable a cleaner future for Wales.
Here’s to a 2025 full of positive change, progress and delivery.