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A state-owned renewable energy company is being set up in Wales in response to energy insecurities and the cost-of-living crisis, a Welsh Government minister has announced.

It would work by putting surplus funds generated through the new company back into the public purse, to be reinvested in improving energy efficiency in homes, as well as creating clean energy jobs.

Wales’ Climate Change minister, Julie James, made the announcement in the Senedd on October 25.

Ms James said: “We want to harvest our wind and use it to produce power that directly benefits people in Wales.

“We will set up a publicly-owned renewable energy developer. This is a long-term sustainable investment that puts net zero and the communities of Wales at the heart of the transition we need.

“We are in a climate emergency and our approach is in stark contrast to the UK Government that is focusing on fracking and fossil fuels – opposed by most communities and incompatible with our international obligations.”

Onshore wind projects would form part of a ramped-up renewable energy rollout through the new developer, which the creation of has been described by Ms James as a “historic moment for Wales”.

She said: “The cost-of-living crisis is directly related to the major increase in the cost of energy, which strengthens the need for an approach that returns more to the people of Wales.

“If other countries are anything to go by, then we should expect considerable returns from our investment and – as we share the ambitions of these other nations – we have a genuine opportunity to produce an income that will really help us to deliver here.

“We are taking positive action to ensure we deliver on our net zero commitments in ways that benefit our communities.”

However, the Welsh Conservatives were critical of the plans. Shadow minister for Climate Change, Janet Finch-Saunders, called for a “new approach” to renewable energy in Wales but accused the Welsh Government’s plan of lacking clarity.

She said: “There has been no detail as to how much money is going to be invested and no clarity as to how this plan will fit with the existing Energy Service.”