Concerns raised over announcement that £600m will be invested in Bute Energy’s onshore wind energy schemes in Wales

Martin Shipton

Serious concerns have been voiced over a claim that more than £600m will be invested in Welsh onshore wind projects linked to renewable energy firm Bute Energy and its sister company Green GEN Cymru.

Senior politicians including First Minister Eluned Morgan, UK Energy and Climate Change Secretary Ed Miliband and Wales Office Minister Dame Nia Griffith have praised the plans, which are backed by Danish investment firm Copenhagen Infrastructure Partners (CIP) and will supposedly create 2,000 jobs.

The investment was announced at Senghenydd Community Centre in South Wales at an event attended by Baroness Morgan. She described it as “a real vote of confidence in the renewable energy sector”, adding: “We are really keen to make sure that we drive forward this renewable energy revolution, but we’ve got to make sure that we get the best for Wales out of it, that we get jobs in our local communities, and that the communities see the benefit.

“We’ve got to get this balance right. We need to make sure that we go forward together, that we land this investment and that we get jobs and opportunities for our communities as a result.”

‘Vote of confidence’

Mr Miliband said: “This is a significant investment and vote of confidence in our mission to make Britain a clean energy superpower.

“Businesses across the country are seizing the economic opportunities of clean energy, driving growth and investment into communities and securing our energy system.

“Renewable energy will be front and centre of our clean power system, with companies like Bute Energy and Green GEN Cymru delivering the projects the UK needs to bring down energy bills, protect our energy security, and create good jobs for the future.”

And during a trade visit to Copenhagen, Dame Nia said: “There are tremendous opportunities for partners and investors in Denmark to work with us to boost the clean energy sector in Wales.

“I am determined to make sure we achieve our clean energy mission which will bring energy security, drive down energy bills, create good jobs, and help to protect future generations from the cost of climate breakdown.”

However, multiple industry figures have raised serious concerns that the £600m investment is not real but rather a speculative estimate entirely contingent on planning approvals for highly controversial wind and grid projects.

‘Snake oil’

One senior Welsh industry insider described the situation as “yet more snake oil being swallowed by the Welsh Government. They haven’t got a clue when it comes to the private sector, and they’re being hoodwinked into going along with PR guff. It’s incredibly naïve. We’re now in a situation where ministers are undermining their own planning process and could end up facing judicial challenges on the basis that decisions have been pre-determined. This could cost the taxpayer a fortune.”

Another source familiar with the situation added: “This smacks of two governments desperate for good news, grabbing anything to announce without checking the details. No serious due diligence appears to have been done on this £600m claim, yet ministers are now endorsing it as fact. They’re setting themselves up for a fall.”

We asked the UK and Welsh governments a series of questions arising from the concerns:

* On what basis has the £600m investment figure been presented as fact, given that it appears to be entirely dependent on planning decisions yet to be made?

* What due diligence has been undertaken by the Welsh Government and/or UK Government to verify the credibility of this investment claim before publicly endorsing it?

*Given the ongoing planning processes, does the public backing of a specific investment not risk undermining the integrity of these decisions?

* The companies involved claim that 2,000 jobs will be created. Has this figure been independently assessed? How many of these jobs are expected to be permanent, full-time roles in Wales, as opposed to temporary construction roles or supply chain impacts abroad?

* Does the government accept that onshore wind is generally a low-employment industry post-construction, and if so, how does it justify promoting such high job numbers?

* Will the Welsh Government or UK Government commit to publishing any independent economic assessments underpinning these investment and job claims?

* What safeguards are in place to ensure that government backing of these projects does not expose planning decisions to legal challenges over pre-determination?

Key role

A spokesperson for the Welsh Government said: “Wales is fast becoming the go to place to invest in clean energy, creating valuable jobs and attracting new green industries. The First Minister was welcoming this latest show of confidence in the Welsh economy not endorsing specific projects which may be subject to future planning decisions.”

A UK Government spokesperson said: “Wales will play a key role in our mission to make Britain a clean energy superpower. It has a world class clean energy sector with abundant natural resources and the potential to create thousands of well-paid jobs, meaning more growth and more money in people’s pockets.

“Attracting and encouraging new inward investment is vitally important in delivering these aims.”

We also put a series of questions to Bute Energy:

* Can you provide a detailed breakdown of how the £600m figure was calculated? Is this a committed investment or an estimate based on potential project approvals?

* What proportion of this investment is guaranteed to be spent in Wales rather than on imported infrastructure or external contractors?

* You claim 2,000 jobs will be created—can you specify how many of these will be:Permanent full-time jobs in Wales post-construction? Directly employed by your companies rather than supply chain estimates?

* Given that onshore wind has relatively low operational employment needs, how do you justify the 2,000 jobs figure?

* Have you had discussions with the UK or Welsh Government regarding their public promotion of your investment figures, and if so, did they request any independent verification before endorsing them?

* Given that all of these projects remain subject to planning approval, do you accept that promoting these figures at this stage could be seen as premature or as exerting undue influence on the planning process?

* What reassurances can you give that planning decisions will not be legally challenged on the basis that they were pre-determined by government statements?

Planning

A Bute Energy spokesperson said: “CIP is committing £600m of investment into Bute Energy to support the development and delivery of renewable energy in Wales, subject to achieving planning and other key development milestones. Like any major infrastructure investment, this funding is linked to project approvals, regulatory progress and other key project milestones. We have announced the investment figure in the interests of transparency. Naturally, the planning authorities will make their own decisions.

“Our portfolio will create up to 2,000 full-time jobs in Wales, largely through our supply chain partners. These roles will support the construction and long-term operation of our energy parks, securing Wales’ position as a leader in renewable energy. For example, we expect our first project to receive consent, Twyn Hywel Energy Park, to support 300 jobs across Wales at its peak and provide up to 630 years of employment through construction and development. These figures are based on independent economic impact reports from BVG Associates and BiGGAR Economics.

“While there are currently no companies in Wales manufacturing wind turbines, we are committed to maximising Welsh supply chain involvement. We are working to ensure our materials and services are sourced from Welsh suppliers wherever possible, and we will require our tier 1 contractors to prioritise local businesses when construction begins.

“CIP’s investment into Bute Energy reflects confidence in our portfolio and our responsible approach to development. Since 2022, their backing, alongside the support of the Wales Pension Partnership, has helped us drive forward our vision for a greener, more prosperous Wales.

“Research by National Grid has shown that 25,000 full-time jobs need to be created in Wales to meet net zero targets. We are proud to be contributing to that goal and ensuring that Wales benefits from the energy transition.”