The National Wealth Fund (NWF) has released a five-year plan, promising to drive over £100 billion of investment into the UK’s clean energy transition. Established as the government’s “principal investor and policy bank”, NWF’s purpose is to stimulate private sector investment into priority areas, and with £27.8 billion of capital to deploy, it represents a significant opportunity for the marine energy sector. By 2050, the Fund aims to create or support more than 200,000 jobs and save 500 million tonnes of carbon dioxide emissions.
The five-year strategy outlines three main aims:
1. Unlocking growth opportunities on the pathway to clean energy – accelerating investment into clean energy foundations, building UK presence in emerging industries, and enabling decarbonisation
2. Accelerating place-based investment across all four nations – providing project development support to local government, investing in enabling infrastructure, and sharing commercial expertise
3. Strengthening sovereign and strategic capabilities – investing in national security priorities, supporting UK leadership in future industries, and backing domestic supply chains
At Marine Energy Wales, we particularly welcome the commitment to working with devolved governments and sector bodies—including MEW specifically, which is named as a partner organisation alongside Development Bank of Wales, Net Zero Industry Wales, and RenewableUK Cymru.
As Wales positions itself at the forefront of marine energy development, this strategy offers a significant opportunity to channel public and private finance into projects that will deliver jobs, energy security, and decarbonisation to Welsh coastal communities.
How does the strategy relate to the Welsh marine energy sector?
Wales features the strategy in several instances; the HyNet carbon capture cluster explicitly covers North Wales alongside the North West of England, and Welsh strengths in advanced materials manufacturing in Wrexham and Flintshire are recognised. The Fund has already invested in Denbighshire flood defences, demonstrating willingness to support Welsh projects.
The strategy’s emphasis on ports infrastructure is particularly relevant to Welsh marine energy ambitions. The Fund states it will focus on “infrastructure and manufacturing facilities at ports that enable UK and devolved government policy—especially in offshore wind.” This creates clear opportunities for Welsh ports seeking to develop as hubs for marine energy operations and manufacturing.
The Regional Project Accelerator programme offers another avenue for engagement. This provides advisory support and low-cost lending directly to local authorities for regionally significant projects. Welsh local authorities developing marine energy-related infrastructure could benefit from this support.
How could Floating Offshore Wind set to benefit from the plan?
The strategy positions offshore wind as central to the UK’s clean power system, with the sector expected to account for over half of total electricity generation by 2050. The Fund commits to support the sector through debt, guarantees, and performance bonds, with its investment timing linked to the Contracts for Difference allocation rounds.
The Fund has already co-invested with GB Energy and the Scottish National Investment Bank via the Pentland Floating Offshore Wind project in Scotland. This demonstrates that the NWF recognises floating offshore wind as a technology requiring public finance support to reach commercial scale—a position Marine Energy Wales strongly endorses.
However, the strategy also states that the Fund does “not currently expect to make further equity investments in floating or deep-water offshore wind as this will be a focus of GB Energy.” This raises important questions for the emerging Welsh floating offshore wind pipeline in the Celtic Sea.
The Celtic Sea represents one of the UK’s most significant opportunities for floating offshore wind development. The Crown Estate’s leasing round has created a substantial project pipeline that will require access to finance over the coming years. These projects face the same financing challenges that justified NWF investment in Pentland.
Marine Energy Wales recognises the importance of coordination between public finance institutions, and would therefore like clarity on the following:
GB Energy’s capacity and timeline: Is GB Energy resourced and ready to support the full Celtic Sea pipeline at the pace required? If there are gaps, will NWF step in?
Debt and guarantee products: The strategy excludes equity but remains open to debt and guarantees for offshore wind. How actively will NWF pursue these opportunities for Welsh FLOW projects?
Geographic equity: Having supported a Scottish floating wind project with equity investment, there is a reasonable expectation that Welsh projects should have access to equivalent support. Devolving responsibility to GB Energy should not result in Welsh projects receiving less favourable treatment than Scottish counterparts.
We will be seeking assurances that the division of responsibilities between NWF and GB Energy does not create gaps that leave Celtic Sea projects without access to the public finance support they need to proceed.
The Tidal Stream Opportunity
While the strategy provides comprehensive coverage of many clean energy technologies—including offshore wind, energy storage, hydrogen, and nuclear—tidal stream energy is not explicitly addressed within the 25 priority sectors. This represents an important gap that Marine Energy Wales will be seeking to address through engagement with the Fund.
The tidal stream sector has characteristics that align closely with the Fund’s stated investment criteria:
Government-backed revenue certainty: Tidal stream projects have secured Contracts for Difference through dedicated allocation rounds, providing the offtake arrangements the Fund typically requires for debt financing
Proven technology: Leading tidal stream technologies have achieved commercial operation and meet the Fund’s TRL7+ threshold
Confirmed project pipeline: Projects including Morlais in Wales have clear development timelines and consenting pathways
Strategic value: Tidal stream offers predictable generation that complements intermittent renewables, supporting grid stability as the UK transitions to clean power
The Fund was established precisely to address financing gaps in strategically important sectors where private capital alone is insufficient. Tidal stream—with its project pipeline, government support, and financing requirements—represents exactly this type of opportunity.
Investment in Wales: an untapped opportunity?
The Fund’s geographic investment map shows significant activity across Scotland, the North East of England, and Cornwall, with more limited deployment in Wales to date. Rather than viewing this as a concern, Marine Energy Wales sees it as highlighting the untapped opportunity that Welsh marine energy represents.
Wales offers a compelling investment proposition:
Morlais: One of the world’s largest consented tidal stream sites, with a development framework in place and projects advancing through the CfD process
Celtic Sea: A priority area for floating offshore wind development, with The Crown Estate’s leasing round creating a pipeline of projects requiring port infrastructure and supply chain investment
Port infrastructure: Welsh ports at Pembroke Dock, Port Talbot, Mostyn and others offer strategic locations for marine energy operations and manufacturing
Supply chain potential: Existing manufacturing capabilities and workforce skills that can support marine energy deployment
How we at Marine Energy Wales Will engage going forward
The strategy explicitly names Marine Energy Wales as a partner organisation, and the Fund has committed to working with devolved nations directors to identify investment opportunities. We will use this platform to:
Demonstrate sector alignment: Present the case for tidal stream’s inclusion in the Fund’s active sector list, highlighting how the established project pipeline meets the Fund’s investment criteria
Facilitate project engagement: Connect Fund representatives with Welsh project developers to explore specific investment opportunities
Support coordination: Work with Welsh Government and other public finance institutions to ensure Welsh projects can access appropriate support from across the investment landscape
Share sector expertise: Provide the Fund with insights on market conditions, project pipelines, and financing requirements in Welsh marine energy
Conclusion
The National Wealth Fund’s strategic plan represents a significant opportunity for Welsh marine energy. The Fund’s commitment to clean energy investment, place-based development, and partnership with devolved nations creates a framework for meaningful engagement.
While there is work to do in ensuring tidal stream is recognised within the Fund’s investment framework, the foundations for productive dialogue are in place. Marine Energy Wales looks forward to working with the National Wealth Fund to unlock investment in Welsh marine energy projects that will deliver jobs, energy security, and decarbonisation for coastal communities across Wales.
Get Involved: MEW members interested in learning more about financing opportunities or who have specific projects that may align with NWF’s investment criteria should contact the MEW team. We will be engaging with the Fund on behalf of the sector and welcome input from members on priorities and concerns.