What is the Welsh Government doing to support hydropower schemes like watermills across Wales?
In 2018, in response to a revaluation of non-domestic rates, we introduced a short term, annually reviewed, hydropower grant scheme. The scheme provides eligible hydro projects with a rateable value of up to £50,000 a 100% rates relief and has so far provided more that £1m to the sector. The grant is supporting community owned projects in 2021-22.
The greatest barrier to new hydropower schemes across Wales is the UK Government’s decision to close the Feed in Tariff in 2019, which made many projects commercially unviable. Since this decision we have seen very few new hydropower schemes.
I met with the British Hydropower Association (BHA) on 14 October and invited them to participate in our deep dive into renewables, working with a range of stakeholders to scrutinise and challenge our renewables policy.