Wales has moved a long way from the coal-based energy system that once powered its mines, ports and heavy industries. Today, the Welsh energy system combines large gas-fired power stations, oil refining, liquefied natural gas terminals, onshore and offshore wind, hydropower, solar energy and some of Britain’s most important electricity storage assets. Wales also exports more electricity than it uses, although much of its total generation still comes from natural gas.
The next stage will be harder. Electricity demand is expected to rise as transport, heating and industry become more electrified. Wales must therefore build renewable generation, modernise its grid and decide how nuclear power, gas infrastructure and local energy ownership will fit into its future.
A Net Electricity Exporter Still Tied to Fossil Fuels
Wales is a net exporter of electricity. The latest available figures show that Welsh installations generated about 22 terawatt-hours of electricity in 2024, while Wales consumed about 13 terawatt-hours in 2023. The years differ because generation and consumption statistics are released on separate schedules, but the wider position is clear: Wales produces considerably more electricity than it uses. [1]
That does not mean Welsh electricity is already fully renewable. Renewable sources generated 7.9 terawatt-hours in 2024, equal to 36% of all electricity generated in Wales. Fossil fuels produced 13.8 terawatt-hours, or about 64%. Around 90% of this fossil fuel electricity came from gas, mainly through the large Pembroke and Connah’s Quay power stations. [1]
Renewable electricity generation was equal to 54% of Welsh electricity consumption in 2024. This figure is higher than the renewable share of total generation because Wales produces surplus electricity for export. Power generated in Wales enters a wider network serving England, Ireland and the rest of the British electricity market.
The wider energy picture is more dependent on fossil fuels than the electricity statistics suggest. Petroleum represented about 42% of total Welsh energy use in 2023, followed by gas at 25% and electricity at 16%. Heating was responsible for 41% of energy consumption, while transport accounted for roughly 29%. Renewable electricity is therefore only one part of the Wales energy transition. Heating, road transport and industrial energy use remain major challenges. [1]
Coal No Longer Powers the Welsh Grid, but It Still Shapes the Land
Coal is no longer a major source of electricity generation in Wales. No coal-fired electricity has been generated in the country since 2019, and coal represented only about 1% of total Welsh energy consumption in 2023. Welsh Government policy is to bring coal extraction and use to a managed end, with a strong presumption against approving new mining licences or expanding existing operations. [1][2]
However, coal cannot be treated as a minor footnote in a Wales energy profile. The South Wales coalfield helped create industrial communities across the valleys and supported the growth of Cardiff, Newport, Swansea and other port towns. Welsh steam coal was once exported around the world, while domestic coal supplied railways, ironworks, steel plants and power stations.
The industry’s physical legacy remains visible. Wales has more than 2,500 recorded disused coal tips, many of them close to communities in the South Wales valleys. Managing these sites has become an infrastructure and climate-resilience issue, especially as heavy rainfall can increase the risk of ground movement. The Disused Mine and Quarry Tips (Wales) Act 2025 created a new framework for assessing, registering, monitoring and managing disused tips. [2]
Coal also remains connected to the future of Welsh industry. Traditional blast-furnace steelmaking at Port Talbot depended on coal and coke, but the site is moving toward electric-arc-furnace production. This transition means that coal’s direct industrial role is falling while demand for reliable electricity becomes more important.
The Welsh coal story is therefore changing from extraction and combustion to land restoration, public safety, industrial transition and regional identity.
Natural Gas and the Strategic Importance of Milford Haven
Natural gas is the largest source of electricity generation in Wales. Pembroke Power Station, located near Milford Haven, has a generating capacity of approximately 2,180 megawatts. It is one of the largest combined-cycle gas turbine plants in Britain and can produce electricity when demand is high or renewable generation is low. Connah’s Quay in northeast Wales provides another major centre of gas-fired generation. [1][3]
Gas is also widely used for heating. Wales consumed about 21.4 terawatt-hours of gas in 2023. Domestic users accounted for 12.5 terawatt-hours, mainly for space heating, hot water and cooking, while non-domestic users consumed about 8.8 terawatt-hours. Gas use is highest in urban and industrial areas with strong network connections. Rural areas are less likely to be connected to the gas grid and often depend on oil, electricity or solid fuels for heating. [1]
Milford Haven gives Wales a much wider role in UK gas security. The deep-water harbour hosts the South Hook and Dragon LNG terminals, which receive liquefied natural gas by ship, store it and convert it back into gas for the national pipeline network.
South Hook is one of Europe’s largest LNG terminals and can provide around one quarter of the United Kingdom’s daily gas needs under high-output conditions. Dragon LNG can send out up to approximately nine billion cubic metres of gas each year, equal to around 10% of annual UK demand. These facilities connect Wales to international LNG markets and make Pembrokeshire strategically important far beyond its local population. [3]
The region is also being considered for lower-carbon industrial projects. Plans around Pembroke and Milford Haven include green hydrogen production, carbon transport, port refuelling and possible carbon dioxide handling. These proposals aim to reuse existing energy skills, pipelines, industrial land and port infrastructure rather than allowing the region’s fossil fuel economy to disappear without replacement.
Oil in Wales Is a Refining, Port and Transport Story
Wales is not a major crude-oil-producing region, but oil remains its most heavily consumed energy source. Most petroleum demand comes from cars, vans, lorries, buses, aviation, agricultural machinery and other forms of transport. Petroleum products provided about 93% of transport energy used in Wales in 2023. [1]
Oil also matters because of the Valero Pembroke refinery. The refinery can process around 270,000 barrels per day and produces gasoline, diesel, jet fuel, heating oil and low-sulphur fuel oil. Together with storage facilities, marine terminals and fuel distribution networks around Milford Haven, it forms one of the most important parts of the downstream oil industry in Britain. [3]
Pembrokeshire’s oil and gas facilities show why the Welsh energy transition is not simply a matter of replacing coal plants with wind farms. Thousands of jobs, contractors and local businesses are connected to refining, shipping, engineering, maintenance and fuel logistics. These sites also supply fuels that remain essential to the wider economy.
Oil demand should decline as electric vehicles become more common, public transport improves and industrial processes change. The speed of that decline will depend on charging infrastructure, vehicle costs and the ability of rural communities to use alternatives to private cars.
Rural heating presents another problem. Parts of mid and west Wales have limited access to the gas network, leaving many properties dependent on heating oil. Replacing this demand will require suitable heat pumps, better-insulated buildings and stronger local electricity networks.
The Electricity Grid Is the Real Test of the Welsh Energy Transition
Wales has strong renewable resources, but those resources are not always close to the largest centres of demand. Much of the best onshore wind potential lies in rural mid Wales, while offshore resources are concentrated in the Irish Sea and Celtic Sea. Major industrial and urban electricity users are mainly found along the north and south coasts.
The Welsh transmission system has historically developed as two broad areas, one in north Wales and another in south Wales, with limited direct connection between them. Electricity often moves through the wider English transmission network rather than travelling directly from one part of Wales to another. National Grid plans therefore include upgrading existing lines, extending substations and building new infrastructure to connect additional renewable generation and industrial demand. [4]
New transmission projects can create difficult local debates. Overhead lines, pylons and substations may affect farmland, landscapes and tourism areas. Underground cables are less visible but generally cost more and can still disturb land during construction. Wales must balance national energy targets with community concerns about where infrastructure is placed.
International connection is also becoming more important. The 500-megawatt Greenlink interconnector became operational in 2025, linking the Pembroke substation in Wales with County Wexford in Ireland. It allows electricity to move in either direction, supporting renewable trading and providing additional security when one market has lower generation or higher demand. [4]
Grid access is already a major factor in renewable project development. A wind or solar project may receive planning permission but still face a long wait for an affordable connection. Faster network development, clearer connection rules and better coordination between national and local planning will determine how much Welsh renewable potential is actually used.
Nuclear Power Returns to the Wylfa Energy Debate
Wales has not generated nuclear electricity since the final reactor at Wylfa stopped operating in 2015. The former Trawsfynydd station in Gwynedd ended generation in 1991. Both sites remain part of Wales’s nuclear landscape through decommissioning work, specialist employment, radioactive-waste management and local engineering knowledge. [1][5]
Wylfa has now returned to the centre of UK nuclear policy. In November 2025, the UK Government selected the Anglesey site for Britain’s first small modular reactor power station. Great British Energy–Nuclear signed a contract with Rolls-Royce SMR in April 2026, beginning site-specific design, regulatory engagement and planning work. A final investment decision will still be required before full construction can proceed. [5]
The proposed project has been described as having potential capacity of up to 1.5 gigawatts. It could restore large-scale electricity generation to Wylfa and provide long-term employment in north Wales. The site already has a nuclear history, access to cooling water and links to the transmission system, although major new infrastructure and regulatory approval would still be needed.
Nuclear power in Wales is therefore no longer only a historical subject. It is part of a wider debate about electricity security, industrial policy and the balance between renewable generation and power that can operate regardless of weather.
Trawsfynydd also remains of interest because of its skilled workforce and existing energy infrastructure. However, Wylfa is currently the more advanced location in the UK Government’s nuclear programme.
Wind Leads Renewable Energy in Wales
Wind power is the main source of renewable electricity in Wales. Onshore and offshore wind together produced nearly 70% of Welsh renewable electricity in 2024. Wales had around 4.3 gigawatts of total renewable capacity, with onshore wind and solar making up close to 60% of installed capacity. [1]
Large onshore wind farms are concentrated in upland areas of mid and south Wales, where exposed terrain provides stronger and more consistent wind. Pen y Cymoedd, located between Neath Port Talbot and Rhondda Cynon Taf, is among the country’s best-known wind projects. Smaller wind farms and individual turbines are spread through rural regions.
The onshore wind debate is closely connected to land use. Projects can provide business rates, community funds and lease income, but they can also create disagreements over landscape change, road construction, noise and local ownership. The Welsh Government wants more renewable capacity to be locally owned, with a target of at least 1.5 gigawatts by 2035. Locally owned renewable capacity reached approximately 0.99 gigawatts in 2024. [1]
Offshore wind is already established off the north Wales coast. Wales had 726 megawatts of operational offshore wind capacity in 2024, including projects such as Gwynt y Môr, Rhyl Flats and North Hoyle. No major new offshore capacity had entered service since 2015, but extensions and new developments are intended to restart growth. [1]
The larger future opportunity lies in the Celtic Sea. The Crown Estate’s Round 5 programme covers three floating offshore wind development areas with combined potential capacity of up to 4.5 gigawatts. Floating foundations can operate in deeper water than traditional fixed-bottom turbines, opening areas farther from shore with strong wind conditions. [6]
Port Talbot is expected to play an important role in assembling and supporting these projects. In March 2026, the UK Government announced up to £64 million to help develop the port as a Celtic Sea floating-wind hub. The opportunity is not only to generate electricity, but also to create Welsh activity in steel, fabrication, maintenance, marine services and port logistics. [6]
Mountains, Reservoirs and Tides Give Wales More Than Wind
Wales’s mountains and rainfall have supported hydropower for generations. Conventional hydroelectric stations remain important in north and mid Wales, but the country’s strongest advantage may be pumped storage.
Dinorwig and Ffestiniog use electricity to pump water into higher reservoirs when power is plentiful. The water can then be released through turbines when demand rises. Together, Wales’s two operating pumped-hydropower sites provide about 2.1 gigawatts of export capacity and approximately 11 gigawatt-hours of storage. This represents around three quarters of total UK pumped-storage capacity. [4]
Dinorwig can deliver about 1,728 megawatts within seconds, making it valuable for responding to sudden changes in electricity supply or demand. As wind and solar become more important, this fast flexibility becomes more useful. Pumped storage cannot create energy, but it can move electricity from periods of surplus generation to periods when the system needs it.
Battery storage is also expanding. Wales had about 120 megawatts of operational commercial and smaller battery capacity in the latest national review, while more than 2.3 gigawatts of additional projects had received planning permission. Many proposed batteries are located near former power or industrial sites where grid connections already exist. [4]
Marine energy offers a smaller but distinctive opportunity. The Morlais tidal-stream demonstration zone off Anglesey had secured 38 megawatts of price-supported capacity and was moving toward initial offshore deployment. Pembrokeshire also hosts marine-energy testing activity, while Welsh research institutions continue to examine tidal turbines and lagoon technology. [1]
Tidal energy has the advantage of being highly predictable. Its challenge is cost: equipment must survive strong currents, salt water and difficult maintenance conditions. Wales could benefit from developing the engineering and testing supply chain even before tidal energy reaches the scale of wind or solar.
Industrial Change Will Reshape Energy Demand in South Wales
South Wales contains some of the country’s largest energy users, including steel, chemicals, refining, ports and manufacturing. Decarbonising this industrial base will affect both the amount of electricity Wales needs and the infrastructure required to deliver it.
The most visible change is taking place at Port Talbot. Traditional blast-furnace ironmaking ended in 2024, and construction is under way on a new electric arc furnace with planned annual capacity of 3.2 million tonnes. Commissioning is expected around late 2027 or early 2028. [7]
Electric arc furnaces melt scrap steel using electricity rather than producing iron through coal-intensive blast furnaces. This should greatly reduce direct emissions at the site, but it also creates a stronger connection between steel production, electricity prices and grid capacity. Reliable low-carbon power will become part of Port Talbot’s industrial competitiveness.
The same issue applies to hydrogen and carbon-management proposals around Milford Haven. Producing green hydrogen by electrolysis requires large amounts of electricity. Carbon capture projects need pipelines, compression equipment, port facilities and long-term storage arrangements. These technologies may support industrial decarbonisation, but they will also increase pressure for coordinated energy infrastructure.
The main economic question is whether Wales will only host generating assets or also capture manufacturing, construction and service work. Offshore wind foundations, electrical equipment, cables, steel components, port operations and maintenance could create a broader industrial benefit if Welsh businesses enter the supply chain.
Heating and Transport Remain the Harder Energy Problems
Electricity receives much of the public attention, but heating remains the largest use of energy in Wales. Older homes, stone buildings, rural properties and areas with high levels of fuel poverty can be difficult or expensive to improve.
An estimated 31,000 heat pumps had been installed across Wales by the end of 2024, including about 8,700 during that year. The Welsh target is 580,000 heat pumps by 2035, meaning deployment will need to accelerate considerably. [1]
Heat pumps can reduce total energy use because they transfer heat rather than creating all of it through combustion. However, successful installation often depends on insulation, suitable radiators, building design and a strong local electricity connection. A poorly insulated rural home may need a different solution from a modern urban apartment.
Transport has a similar infrastructure problem. Electric vehicles reduce petroleum demand, but drivers need reliable charging at homes, workplaces, town centres and major roads. Rural drivers often travel longer distances and may have fewer public transport options. Freight, shipping and aviation will also remain difficult to electrify fully.
These pressures explain why Welsh electricity demand is expected to grow even as total energy use falls. The official pathway projects electricity consumption rising from about 14.5 terawatt-hours in 2024 to 23.8 terawatt-hours in 2035. Meeting the Welsh Government’s renewable target would require renewable generation to roughly triple. [1]
The Future of Energy in Wales
Wales aims to generate renewable electricity equal to 70% of annual consumption by 2030 and 100% by 2035. The target is measured across the year, not hour by hour, so Wales will continue to import and export electricity through the wider British and Irish system. [1]
Reaching that goal will require more than building turbines and solar farms. Wales needs transmission lines, distribution upgrades, storage, faster grid connections and enough skilled workers to deliver major projects. It must also manage the continued role of gas while renewable capacity and flexibility increase.
The likely Welsh energy system of the 2030s will be more varied than the one it replaces. Floating wind in the Celtic Sea could operate beside established wind farms in north Wales. Wylfa may return as a nuclear generation site. Pumped storage and batteries will help balance the grid, while Greenlink will support electricity trade with Ireland. Pembrokeshire may remain a major gas and refining centre while also developing hydrogen and carbon-management infrastructure.
The central issue is who benefits from this transformation. Wales has exported coal, oil products, gas and electricity for generations. Its next energy programme will be judged not only by how much low-carbon power it produces, but also by whether Welsh communities gain secure employment, infrastructure investment, local ownership and lasting industrial value.