Nuclear site on Anglesey will energise all of Wales
WE live in a rapidly changing world. Innovation and technology are developing faster than ever, with implications for the way we live and work.
The sharing economy, “internet of things” and 3D printing mean that every home can be a business, while the new industrial revolution of data, digitisation and communications means we can engage with the world around us in new ways.
These changes are profound and will reach into every aspect of our lives and communities in the coming years. We are also faced with political and economic change. Brexit means that we must redefine our relationship with Europe and the rest of the world.
Meanwhile, a renewed focus on a modern industrial strategy will set a new economic direction for the whole country, as well as a new partnership between government and business to spread prosperity more evenly and build on the UK’s economic strengths in a competitive global marketplace – and our low-carbon transition, which is already well on its way, must be at the heart of this change.
The UK’s long-term carbon targets, combined with new technological advancement, mean that the road to 2030 offers huge opportunity. Our energy system will become more dynamic, with people and businesses all able to generate, store and share power.
Companies and communities – no longer content to be passive consumers – are taking greater ownership of their energy future, adapting, innovating and thriving. Our homes and businesses should be more efficient and could be heated in new ways. And by 2030 the majority of new cars could be ultra-low emission. And last week’s announcement on Wylfa Newydd must be seen within that context.
The UK Government’s confirmation that it is to enter into negotiations with Hitachi and Horizon Nuclear Power with a view to building a new nuclear power station on Anglesey has monumental implications for Wales.
The size of the project is astonishing. It’s hard to actually comprehended the full economic impact for north Wales. Full-cost estimates place the Wylfa Newydd project between £12bn-£16bn. Last year the total spend for the entire Welsh Government was £15bn. A £16bn project is twice the investment of the 2012 Olympic Games, 10 times the investment of the M4 relief road and considerably more than the construction costs of the Cardiff Bay Barrage, Second Severn Crossing, Wales Millennium Centre, Senedd, Principality Stadium and South Wales Metro – combined.
The biggest infrastructure project in Wales for a generation could bring significant benefits to the economy through high-quality employment and many opportunities within the supply chain. The project will require a construction workforce of around 4,000 for the majority of the time, with up to 9,000 workers required during a peak period at the end of 2023.
Once complete, Wylfa Newydd will create up to 850 permanent jobs and operate for 60 years, offering employment to skilled workers for generations to come.
It is no surprise, therefore, that last year that the energy sector created £24bn in GVA and delivered £88bn in economic activity through its supply chains – purchasing goods such as aluminium for transmission lines and services ranging from construction to costsaving technologies. The value of investments made by the UK energy sector in 2016 was £11.9bn, meaning that almost £1 in every £16 invested in the UK was in the energy sector.
The energy sector has an important presence in all parts of the UK, employing around 148,000 workers, and supports a further 582,000 through supply chain, consulting and other energy-related activities. This means that the sector supports around one in 48 UK jobs.
What was pleasing to see at the time of the announcement was a common consensus that this project was not only for Anglesey but for all of Wales. Most sensible people see an investment of this size in the long-term interests of the whole nation, even though the key beneficiaries are in north Wales.
This is all separate from the £1.3bn North Wales Growth Deal which is currently in the works. At a CBI roundtable last week in Deeside, Welsh Secretary Alun Cairns and Cabinet Secretary for the Economy Ken Skates jointly addressed major private sector employers and made clear the deal could create thousands of jobs and opportunities for people across the whole region and further strengthen the low-carbon cluster on Anglesey if the right partnerships with the private sector are in place. There is no doubt north Wales is set to see a level of investment not seen in many decades.
Putting that aside, nuclear energy is vital as part of the mix for our nation’s energy security.
Reliable and low-carbon, nuclear currently provides around 20% of our electricity needs. Over the coming decades we will need significant new nuclear capacity and Wylfa – and Wales – is set to play a critical part in providing competitively priced energy which can be relied upon 24/7.
■ Ian Price is CBI Wales director.