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Sion Barry

Cardiff region finalises £8m deal to buy Aberthaw Power Station

The Cardiff Capital Region (CCR) has finalised the acquisition of the former Aberthaw Power Station in the Vale of Glamorgan with long-term plans to transform it into a new renewable energy hub with the potential to create thousands of new jobs.

The city region, made up of the 10 local authorities of South East Wales, has bought the decommissioned former coal powered station and nearly 500 acres of land, from energy giant RWE in a £8m deal (plus VAT). Funded by the CCR’s £1.2bn City Deal, it has committed a further £30.4m to demolish the power plant and fund remediation and redevelopment work.

The coal powered 1,560 megawatt plant, which began energy generation back in 1970, ceased producing electricity for the National Grid in 2019. It was RWE’s last coal-fired station in the UK.

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While dependent on investor appetite from the private sector the site could been developed to include:

  • Renewable and green energy projects.
  • A battery storage facility to support energy projects.
  • A zero-carbon manufacturing cluster with green hydrogen production facilities.
  • A green energy innovation centre.
  • An ecology park.

It could also be positioned to become an investment zone. The UK and Welsh governments are in discussions around creating one in Wales. UK-wide the Westminster Government is planning to back 12 low-tax investment zones, with eight locations in England already identified.

Subject to agreement between the two governments a Welsh investment zone would receive £80m from the UK Government to fund incentives such as tax breaks, skills support and infrastructure improvements .

Any bids in Wales for enterprise zone status would need a tie up with academia and the potential for leveraging significant private sector investment in areas such as technology, creative industries, life sciences, advanced manufacturing and the green sector.

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Anthony Hunt, chair of the regional cabinet and leader of Torfaen County Borough Council said: “It’s highly encouraging to see such an important step being taken in our Aberthaw journey. The CCR team has worked expertly with RWE since the initial exchange of contracts to make sure that all permits are in place so that, post-purchase completion, we can progress to the demolition and remediation stage of a site that is home to so many opportunities.

“Following a week that saw the Welsh Government publish its new innovation strategy for a stronger, fairer, greener Wales, adopting a mission-based collaborative approach, it’s good to view our investment as a driver of a new Wales, capable of powering our future, sustainably.”

Tom Glover, UK country chair, RWE, said: “We are incredibly pleased to have concluded the sale with Cardiff Capital Region (CCR) - the teams have worked hard to get to this stage. CCR has a future vision of a green industrial transformation of the site, which very much mirrors RWE’s transformation into Wales’ largest renewable generator and our ambition for a net zero generation fleet. We want to wish Cardiff Capital Region every success in this innovative project.”

Rhys Thomas, chief operating officer, CCR City Deal, said: “This significant milestone brings a new level of activity to an Aberthaw development that will change the face of South East Wales, taking us another step towards the connected, competitive and resilient region being championed by CCR.

“Our investment is ultimately about people as well as the economy - with the development becoming a focal point for green energy innovation, growth, knowledge share and community interaction, including a base for a biodiverse ecology reserve, open to people from across our region and beyond. With the purchase now complete, we are looking forward to turning these possibilities into a reality that everyone can benefit from.”

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