Championing Offshore Renewables in Wales’ Local Growth Fund
Marine Energy Wales has submitted a detailed response to the Welsh Government’s consultation on the proposed UK Local Growth Fund in Wales. Our response sets out a clear, evidence-based case for why offshore renewable energy must be treated as a strategic growth sector within future investment plans, and how public funding can be used most effectively to unlock long-term economic value for Wales.
This consultation is significant. The Local Growth Fund will shape how billions of pounds of public investment are deployed across Wales from 2026 onwards, replacing the Shared Prosperity Fund. Decisions taken now will influence which sectors grow, where infrastructure is prioritised, and whether Wales captures the full value of its natural resources.
Making the case for offshore renewables as a priority sector
Across our response, we consistently emphasised that offshore renewable energy is not a niche interest. It is a nationally significant growth opportunity with strong regional roots.
The sector has already delivered nearly £300 million of investment into the Welsh economy, sustains hundreds of skilled jobs, and has a pipeline exceeding £1.3 billion over the next five years. Floating offshore wind in the Celtic Sea, tidal stream at Morlais, and emerging wave and tidal range technologies position Wales at the forefront of the global energy transition.
We called on the Welsh Government to explicitly recognise offshore renewables, including floating offshore wind, tidal stream, tidal range and wave energy, as a priority cluster within the Local Growth Fund. Clear recognition sends an important signal to investors, developers and supply chains that Wales is serious about competing for this opportunity.
Focusing on what actually unlocks growth
A central theme of our response was that enabling infrastructure is the critical bottleneck.
Ports, grid capacity, supply chain facilities, and regulatory capability are prerequisites for deployment. These investments often need to happen before commercial returns are guaranteed, creating a market failure that requires public sector leadership.
We made the case for:
- Strategic investment in ports such as Pembroke Dock, Port Talbot, Holyhead and Mostyn
- Grid upgrades aligned with the Welsh Government’s Strategic Resource Areas
- National-level coordination for infrastructure that benefits multiple regions
- Increased capacity within Natural Resources Wales to support timely consenting
Without early, anticipatory investment in these areas, Wales risks losing first-mover advantage to competing regions.
Long-term thinking, not short-term outputs
Offshore renewable energy projects operate on long timescales. It can take a decade or more to move from leasing to operation. We therefore welcomed the proposal for multi-annual funding and 10-year regional visions, while also warning against an over-reliance on short funding windows and “shovel-ready” criteria.
We urged the Welsh Government to ensure that:
- Evaluation frameworks reflect long-term outcomes, not just immediate outputs
- High-quality, sustained employment is prioritised over headline job numbers
- Innovation funding spans the full pathway from real-sea demonstration to commercialisation
This approach better reflects how value is created in emerging, capital-intensive sectors like offshore renewables.
Advocating for coastal and Welsh-speaking communities
Much of Wales’ offshore renewable energy opportunity is concentrated in coastal and peripheral regions, including Anglesey, Pembrokeshire and Port Talbot. These are areas that have faced long-standing economic challenges but also possess nationally significant assets.
Our response highlighted how targeted investment in offshore renewables can:
- Support economic renewal and reindustrialisation
- Anchor skilled employment in Welsh-speaking communities
- Reduce outward migration by creating local career pathways
We also emphasised the importance of bilingual skills provision and community engagement, ensuring the growth of the sector supports the Welsh language rather than undermining it.
Continuing to advocate for the sector
This response reflects Marine Energy Wales’ core role as an independent voice for the offshore renewable energy sector. We work closely with our members to translate on-the-ground experience into clear, constructive policy input, ensuring decision-makers understand both the opportunity and the practical barriers to delivery.
As the Welsh Government develops the Local Growth Fund and associated Investment Plans, we will continue to engage proactively to ensure offshore renewable energy is embedded as a cornerstone of Wales’s economic and net zero future.
If you would like to discuss any of the issues raised in our response, or contribute to our ongoing advocacy work, please get in touch.