£47B renewable energy push in sight for Wales by 2035

Wales has an unprecedented £46.8 billion (around $59.6 billion) investment opportunity from the renewable energy sector by 2035, according to an analysis unveiled by RenewableUK Cymru.

The potential investment, primarily driven by offshore wind,  ore wind, solar, and tidal power, is projected to fuel economic growth, generate thousands of jobs, and invigorate communities across Wales, RenewableUK Cymru noted.

The analysis, carried out by BiGGAR Economics and commissioned by RenewableUK Cymru in collaboration with Solar Energy UK and Marine Energy Wales, outlines an impressive nearly £4 billion in annual renewable investments, peaking at £7 billion by 2028.

“Wales stands at the threshold of a historic opportunity. By harnessing this renewable investment potential, we can secure Welsh jobs and build a secure, long-term local economy across all parts of the country,” said Jess Hooper, Director of RenewableUK Cymru.

The report envisions offshore wind as the pillar of Welsh economic growth, projected to account for £32.4 billion of the total investment by 2035. Realizing this potential will require a strategic boost in industrial planning and substantial upgrades to port infrastructure, RenewableUK Cymru noted.

Despite the promising figures, grid limitations and planning challenges pose immediate hurdles. 

The latest 2024 Welsh wind power report shows that Wales’ renewable project pipeline has surged by 18% this year alone – from 9 GW in 2023 to over 10.5 GW in November 2024. But even with this momentum, Welsh wind capacity is anticipated to make up just 5% of the UK’s total by 2035, trailing behind Scotland’s expected 64 GW.

“The size of the renewables opportunity in Wales is immense. To put it into perspective, the £47 billion private investment needed to meet our targets is equivalent to the cost of building 208 Principality Stadiums. Renewables project investment and delivery will bring Wales better energy security, increased employment, industrial expansion and rural economic development,” said Nikki Keddie, Director of BiGGAR Economics.

“To maximize the economic benefits of these projects for local businesses and communities, it will be essential to remove barriers to delivery and boost the opportunities for them to capture and retain value. We are looking forward to working on the next phase of this report, where we will quantify the potential share of the opportunity Wales can secure.”

In June, RenewableUK Cymru urged the next UK Government to set technology-specific targets to support the goal of meeting 100% of electricity demand from renewable sources by 2035.