THE Scottish Government is under fire after claiming it would need the full powers of independence to set up a publicly owned energy company – despite Wales already having done so.
The Labour-run administration in Cardiff set up Trydan Gwyrdd Cymru (which translates to Green Electricity Wales) in 2024, and in July announced plans for three wind farms on publicly owned Welsh woodlands – as well as more renewable energy projects yet to be finalised.
Trydan said the initial three wind farms would be able to generate up to 400 MW of clean electricity – enough to power around one in four Welsh homes – with “all profits generated reinvested in Welsh communities and public services”.
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.
Robin McAlpine, from the Common Weal think tank, said that they had partnered with Plaid Cymru during their time in the Welsh government to lay the groundwork for Trydan Gwyrdd Cymru.
“The whole point of that conversation was to explain how to create a public energy company under a devolved settlement – and the fact that this is happening in Wales shows that it certainly could have happened in Scotland too,” he said.
“Common Weal has made this point over and over again – the letter of the devolution settlement says the Scottish Government can’t own a wind farm, but we’ve set out about six different workarounds.
“The fastest is to create an energy company which is co-ordinated and funded by the Scottish Government, but in which the actual wind farms are owned by local authorities.
“We have told the Scottish Government this again and again. It is a very active choice to maintain an almost wholly privatised energy system in Scotland.”
Scottish Greens co-leader Patrick Harvie MSP also called for more to be done to ensure communities in Scotland see the benefits of energy generation projects.
“We have an abundance of natural resources at our disposal that can generate clean, green, renewable energy, and we also have highly skilled people with years of experience working in the energy sector. The Greens want these resources to benefit everyone, not just giant private investors.
“It is great to see Wales taking steps in this direction. As Greens, we’ve long made the case for every local community to have its own energy company, as well as a role for the national level.
“The Scottish Government can do far more to ensure that the ownership models for renewable energy put money back into communities across Scotland, at the same time as cutting emissions. Local ownership, community ownership and public ownership should all be playing a much bigger role.”
However, a Scottish Government spokesperson insisted that they did not have the powers required.
“A national public energy company that is involved in large-scale energy generation would only be possible in an independent Scotland where we had full powers over the energy market and full access to borrowing,” they said.
“We are committed to maximising the public benefits of our renewables revolution, and while many powers remain reserved, we will use the powers we do have and continue to grow community investment in energy-related projects and technology.”
In January, Scottish Energy Secretary Gillian Martin 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".
“By developing these projects on the Welsh Government Woodland Estate, we're making best use of our public land to tackle the climate emergency and create sustainable economic opportunities."
A press release said that the developments will “create hundreds of jobs during construction and operation, with Trydan committed to involving Welsh companies throughout the process”.
