Wales generates more electricity from gas than any other UK nation. A new report explains why that’s a problem for north Wales
Wales became a net importer of electricity from England for the first time in 2024, as the country’s dependence on gas generation grew to a higher share than any other UK nation, according to analysis published today by the Energy and Climate Intelligence Unit.
The analysis, which draws on data from the Department for Energy Security and Net Zero, found that Wales generated 58% of its electricity from gas last year, more than England, Scotland, or Northern Ireland.
Net electricity exports from Wales peaked at 21.6 terawatt hours in 2016 and have since collapsed to near zero, with 2024 the first year Wales drew more power from England than it sent across the border.
The North East Wales Industrial Decarbonisation (NEWID) Cluster Plan, funded by the Department for Energy Security and Net Zero and led by Net Zero Industry Wales, covers more than 95% of reported industrial emissions in north Wales.
The cluster employs over 34,000 people across sites in Deeside and Wrexham, and its industries account for 56% of total energy demand in the North East Wales area.
The plan projects that total industrial energy consumption in North East Wales could roughly double from approximately 3,000 gigawatt hours per year in 2024 to approximately 6,000 gigawatt hours per year by 2050, driven by new industrial sites and the decarbonisation of existing operations.
It puts the investment needed to decarbonise the cluster at between £6.2 billion and £9.8 billion, covering carbon capture and storage, hydrogen infrastructure, and electrification.
Without sufficient investment and government support, the plan warns, the cluster faces “site closures and job losses” from deindustrialisation.
Ben Burggraaf, Chief Executive of Net Zero Industry Wales, said: “I really do believe that with the right support, the North East of Wales can become one of the leading clean energy transition hubs of the UK, as well as remain a cornerstone of the UK industrial base.”
Renewable generation in Wales has more or less flatlined since 2019, according to the ECIU analysis.
Renewables covered 31% of Welsh electricity needs in 2024, down from 35% the previous year, according to the analysis.
Wales has set a target of meeting 100% of its electricity demand from renewable sources by 2035.
The ECIU, a pro-renewables think tank, projects that at current rates of renewable build-out, renewables’ share of Welsh generation will fall rather than rise as electricity demand grows.
Laura Dunn, Senior Associate at the ECIU, said: “The cost-of-living is voters’ number one priority heading into the Senedd elections, with growing fears of a repeat of the energy crisis which followed the Russian invasion of Ukraine.”
“In an increasingly uncertain world, the best way to offer Welsh households and industry the long-term certainty they need is by untethering the cost of electricity from unstable international gas markets.”
The ECIU analysis notes that 875 megawatts of offshore wind capacity was approved for Wales in the most recent Contracts for Difference auction, which it says would more than double Wales’s existing offshore wind capacity if delivered.
New nuclear generation is planned for Wylfa on Anglesey, where three small modular reactors with a combined initial capacity of around 1.5 gigawatts have been selected.
They are not expected to connect to the grid until the mid-2030s.
Energy analysts at Cornwall Insight have estimated that the average household energy bill could rise by nearly £300 when the energy price cap is revised in July 2026, partly as a result of rising gas prices following the conflict in Iran.
[Main image: Connah’s Quay gas-fired power station]
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