Regional Energy

Overview

The South West Wales Regional Energy Strategy sets out a long-term plan to transform how energy is produced, used and managed across the region. The strategy has been developed with support from Welsh Government and regional partners and provides a pathway to achieving a net zero energy system by 2050. It focuses on electricity, heat and transport, taking a whole-system approach that reflects the specific characteristics of South West Wales, including its industrial base, rural geography and renewable energy potential.

Why the strategy matters

South West Wales accounts for around 36% of all energy consumed in Wales, despite having around 22% of the population. This is mainly due to the concentration of large industrial sites. While energy consumption and emissions have fallen since 2005, the pace of change is not fast enough to meet net zero targets. Transport emissions remain high, renewable heat uptake is low, and many homes still rely on fossil fuels for heating. At the same time, the region has major opportunities in renewable electricity, marine energy, hydrogen and energy efficiency.

Targets for 2035

To be on track for net zero by 2050, South West Wales needs to reduce energy-related emissions by 55% by 2035. This includes:

• A 58% reduction in domestic heat and power emissions
• A 56% reduction in commercial and industrial emissions (excluding very large industry)
• A 51% reduction in transport emissions

By 2035, the strategy assumes large-scale action including tens of thousands of home energy upgrades, over 78,000 heat pumps installed, around 320,000 electric vehicles on the road, and around 9,500 public and on-street EV chargers.

Renewable energy opportunity

The region already hosts a significant share of Wales’ renewable capacity, particularly onshore wind and solar. The strategy identifies major growth potential in offshore and floating wind in the Celtic Sea, large-scale solar deployment, tidal lagoon and marine technologies, and energy storage. By 2035, South West Wales could generate the equivalent of around 147% of its total electricity demand from regional renewable sources.

Economic benefits

Delivering the Energy Strategy could unlock substantial economic benefits for South West Wales. Between now and 2035, achieving the energy vision could require almost £4 billion of additional investment. This investment could support over 16,000 additional jobs across renewable energy, energy efficiency and low-carbon heating, and generate around £1.6 billion in additional gross value added. Many of these jobs have the potential to support local skills, supply chains and long-term employment if delivery is well coordinated.

Next steps

Achieving a net zero energy system in South West Wales will require urgent and sustained action. Key next steps include establishing clear regional governance, raising awareness of the strategy across the region, and developing a detailed delivery plan. The transition also presents a major opportunity to improve energy affordability, reduce fuel poverty, strengthen local economies and support a fair and inclusive green recovery.