Welsh energy firm plan puts Scottish Government in spotlight 2026

Key Points

• A public consultation process has been initiated by the Welsh Government with regards to establishing a new public corporation to control the energy sector in Wales.
• The proposed corporation will bring together existing public energy companies, increase Welsh involvement in renewable energies, and use profits to invest in community services.
• It does not mean replacing energy providers in Wales nor setting the price of household energy in Wales, but may lead to cost savings through more localized control in the future.
• The consultation period will last up to 30 November 2026 and will seek input on issues such as the structure, governance, functions, delivery models, funding, and profit distribution.
• The development has seen criticism of the Scottish government for lack of ambition, given that campaigners claim the two governments have comparable challenges constitutionally but the latter is doing something.
• Cabinet Minister for Enterprise, Connectivity and Energy Adam Price MS stated the aim is “cheaper, cleaner energy that is made and owned in Wales”.

Wales (Wales Times) September 2026 – The Welsh Government has formally opened a public consultation on proposals to establish a single national public energy company owned by the people of Wales, marking the next step in its plan to consolidate existing public energy functions into one entity. The initiative is intended to increase Welsh ownership of renewable energy projects and ensure more of the economic benefits from Wales’s energy resources flow to local communities, businesses and public services.

As reported by staff at GOV.WALES, the consultation document states the company would bring together existing energy organisations and help ensure that more of the economic benefits from Wales’s energy resources flow to people, communities, businesses and public services in Wales. The Welsh Government emphasises that the company would not replace existing energy suppliers or directly set household energy prices, but increasing Welsh ownership of energy projects could help reduce costs over time and ensure more money is reinvested locally.

What will the consultation ask the public and organisations?

The 12-week consultation, which closes on 30 November 2026, seeks views on five broad areas: structure and governance; functions and delivery model; financing and investment; returning value to Wales; and the relationship with other public energy bodies. It asks whether a single Welsh public energy company would add value, whether Trydan Gwyrdd Cymru (TGC) should form the basis of the new company, what the company should be called, and how it should be governed.

As reported by BBC News Wales, the consultation also explores whether TGC should retain its name or adopt Ynni Cymru, and whether the organisation could invest in larger projects including offshore wind, marine energy and nuclear power. The document further considers the creation of a Welsh Energy Wealth Fund to enable energy projects to assist the most vulnerable populations and those in areas where projects are implemented.

How does the Welsh plan compare with Scotland’s energy policy?

The Welsh move has reignited debate over Scotland’s approach to publicly owned energy. As reported by Robin McAlpine of the Common Weal think tank in comments covered by The National, the launch of the Welsh consultation shows a lack of ambition from the Scottish Government. McAlpine said: “There’s a quote from Henry Ford which I love which applies here. He said ‘whether you think you can or can’t, you’re probably right’. That is the difference between the Welsh approach and the Scottish approach to energy. Both have the same constitutional barriers but the Welsh have decided to try and do something and the Scottish Government has decided not to try.”

SNP ministers came under fire last year for claiming Scotland would need the full powers of independence for such a move while the Labour-run administration in uk/local/cardiff/">Cardiff set up the publicly-owned wind and solar developer Trydan Gwyrdd Cymru in 2024. In 2017, then-Scottish first minister Nicola Sturgeon pledged to establish a “publicly owned, not-for-profit energy company”, but the policy was dropped after the 2021 Holyrood elections. Former Scottish energy secretary Gillian Martin previously told MSPs that setting up a publicly-owned energy firm was “not something we are able to do at the moment with the current devolution settlement”.

What has the Welsh Government said about the proposal?

Cabinet Minister for Enterprise, Connectivity and Energy Adam Price MS said: “Wales has huge potential to generate clean energy from our natural resources. We want to make sure the benefits of that energy are felt by people and communities across Wales, both in jobs and growth but eventually in lower bills too.” He added: “Wales is on the verge of another energy revolution and this time we want to make sure we keep more of the benefits here. This consultation is about how we can build a stronger Welsh energy sector, support local ownership and create lasting value for future generations. It’s about cheaper, cleaner energy that is made and owned in Wales.”

In an interview with BBC Radio Wales Breakfast, Price articulated:

“Our vision for the future energy landscape in Wales is one that is clean, affordable, and owned by our people.”

He noted that the organisation is consolidating various components “to form a single company that possesses the necessary expertise and a significant pool of resources and knowledge to effect meaningful change”. Price remarked that Wales was “an energy powerhouse during the Industrial Revolution due to coal, but regrettably, the benefits were not primarily enjoyed by our own communities”, adding:

“We aim to avoid repeating that error with the vast potential Wales holds in this new energy revolution centered around renewable sources.”

What is Trydan Gwyrdd Cymru and what projects are underway?

Trydan Gwyrdd Cymru (Green Electricity Wales) was established in 2024 as a publicly owned wind and solar developer. Last year the company announced plans for three wind farms on publicly owned Welsh woodlands which would be able to generate up to 400 MW of clean electricity, enough to power around one in four Welsh homes. TGC is currently engaged in several initiatives on land owned by the Welsh government, including potential farms at Coed Wen, Aberdaron and Glynthi in Carmarthenshire.

The consultation asks whether TGC should serve as the foundation for the new company and whether it should retain its name or adopt Ynni Cymru instead. The proposed consolidated company would aim to develop a stronger publicly owned energy sector, with revenues from projects reinvested in communities and public services.

What are the limits and safeguards outlined in the consultation?

The consultation document makes clear that the company would not replace existing energy suppliers or directly control the prices households pay for gas and electricity. The Welsh Government says greater Welsh ownership of energy projects could nevertheless help reduce costs over the longer term. As reported by BBC News Wales, the firm indicated that it would not “supplant current energy providers or directly dictate residential electricity rates”, but its objective is to “assist Wales in decreasing energy expenses over time by creating and managing renewable energy assets” while “promoting local and community ownership and investing in intelligent local energy systems”.

The minister acknowledged that many energy-related decisions are made at the UK level but stated that energy generated by a public energy company could result in “lower energy prices” through arrangements with significant local energy consumers. The new entity will operate independently from Great British Energy, which was established by the UK government in 2024.

Background to the development of Wales’s publicly owned energy company

The proposal builds on Wales’s existing public energy functions, including Trydan Gwyrdd Cymru, Ynni Cymru and the Welsh Government Energy Service, which the consultation suggests could be consolidated into a single company. Robin McAlpine, from the Common Weal think tank, partnered with Plaid Cymru during their time in the Welsh government to lay the groundwork for Trydan Gwyrdd Cymru. The consultation opens on Monday 7 September 2026 and closes on 30 November 2026, with responses accepted via an online form, email to YmatebionYnni-EnergyResponses@gov.wales, or post to the Welsh Government in Cardiff.

Prediction: How could this development affect households, communities and businesses in Wales?

If the consultation leads to a consolidated publicly owned energy company, households in Wales could see slower bill growth over time as more renewable capacity is owned locally and revenues are reinvested rather than extracted by external shareholders. Communities and local authorities could gain greater influence over project siting and benefit-sharing, particularly if a Welsh Energy Wealth Fund is created to support vulnerable populations and host areas. Businesses and public services may access more locally generated power and potentially more stable long-term supply arrangements, though the company will not set retail prices and will operate alongside existing suppliers. The pace and scale of any bill impacts will depend on how much capital the company can deploy, which projects it prioritises, and how value-return mechanisms are designed following the consultation.