THE UK GOVERNMENT has announced the results of the Contract for Difference (CfD) Allocation Round 7 (AR7), a government mechanism to support clean energy projects.
Bute Energy’s first project, Twyn Hywel Energy Park, was successful in the auction, a milestone in the history of the business to date. Bute Energy has said the project puts Caerphilly and south Wales at the heart of the energy transition.
Onshore wind is much more cost-effective for billpayers than new generation from gas at £147/MWh and new nuclear power at £124/MWh. Generating energy at a predictable cost, they offer best value for money for UK billpayers.
The 14-wind turbine project in Caerphilly will start construction in spring this year, and will power more than 81,000 homes – offsetting the carbon emissions of every car in Caerphilly for 40 years. Since the project’s launch in 2021, Bute Energy has committed more than 150 hours to engagement with local people, organisations, and businesses.
According to Bute Energy, the project will unlock millions in local economic investment, jobs, and community investment for Caerphilly and the south Wales region.
Once the project is completed, communities will be able to bid for a local community investment fund of £703,500 every year, helping to support local organisations and charities, and to tackle local priorities, including supporting community-owned energy projects. The fund has been shaped in partnership with local communities, with a local grants panel to be established in the coming year.
An independent report carried out by BiGGAR Economics for the project found that Twyn Hywel will:
- Support more than 300 jobs across the region during construction, with support from Big Issue Recruit to maximise opportunities for local people. Independent research shows salaries in the industry are 26% above the Welsh average
- Spend more than 80% (£108m in 2023 values) of operation and maintenance costs with Welsh business
- Contribute £1.6 million annually in business rates, totalling £64 million over the 40-year lifetime of the project
Bute Energy and Big Issue Recruit have also teamed up to help transform employment opportunities in the renewable energy industry in South Wales. The partnership has recruited a dedicated Big Issue Recruit job coach based in the region who will work with candidates from local communities to overcome barriers to work and get to a place where they’re supported into jobs on the Twyn Hywel project.
Commenting, Bute Energy’s Community Investment and Communications Director Catryn Newton said: “Today’s announcement is about more than Wales’ clean energy mission.
“It takes us one step closer to delivering life-changing investment in people, places and businesses in Caerphilly and across south Wales.
“We have spent the last 6 years working with local people, community organisations and businesses. Thanks to their support, we know that our investment will count.
“New jobs and skills, new opportunities for local business, and long-term funding for local communities to achieve their priorities.
“With the right government support, our energy security mission could be a real step change for Wales and our economy, creating real opportunities for people, places and businesses across the country.”
