A new £24.6m fund aimed at accelerating the transition of the economy of North Wales into a low carbon one, has been launched.
The Clean Energy Fund is from Ambitious North Wales, which operates as the region’s statutory status corporate joint committee and oversees the investment from the £240m North Wales Growth Deal funded by the Ƶ and Welsh governments.
Funded by the Growth Deal, the new fund will provide financial support primarily for businesses and voluntary-sector organisations, wanting to deliver clean energy or decarbonisation projects.
The overall fund, which will run over a five-year period initially, consists of two key sub-funds for organisations based in North Wales. A voluntary sector sub-fund led by WCVA - designed for charities, social enterprises, and community-led projects; with UMi delivering on a private sector sub-fund for businesses. A third reserve fund can consider applications from other organisations and alternative funding models.
Together, the funding streams will support projects delivering smart energy solutions including storage, energy efficiency, decarbonisation and renewable energy generation.
By empowering organisations to create a sustainable future, the fund, through leverage investment, is forecast to deliver a £100m investment in the region, create 150 new jobs, and cut up to 125,000 tonnes of carbon dioxide equivalent.
The voluntary sector sub-fund is worth £5m over five years and is for capital spend. The fund will see 50% distributed as grants of £25k to £500,000 with 25% as interest free loans up to a maximum of £250,000. The remaining 25% will be match funding. Loans will be repayable by the end 2035.
The private sector sub-fund is worth £15m over five years and is for capital spend. Loans can range from £25,000 up to £2m, with interest rates ranging from 5% to 12% based on risk, with a 1% arrangement fee. There is a flexible payment term of up to 60 months. All returns from the investment will be invested back into the fund and allocated for new investment
Details of the fund were unveiled at a launch for partners and stakeholders, which was aptly held at Coleg Llandrillo’s Engineering Centre in Rhyl – a transformative development which features a renewable energy technology training facility.
Gary Pritchard, lead member for the low carbon energy programme, Ambition North Wales and leader of Isle of Anglesey Council, said of the fund's launch: "It will mean that green energy projects based in North Wales can begin and progress more quickly. By supporting innovative businesses and community-driven projects, we are fostering a more sustainable, prosperous future for the region.”
Cabinet Secretary for Economy, Energy and Planning Rebecca Evans, who attended and addressed delegates, said:
“The launch of the Clean Energy Fund is fantastic news for North Wales, opening the door to more opportunities for the region’s thriving clean energy sector.
“With its abundant natural resources, skilled workforce, and commitment to sustainability, North Wales is uniquely positioned to lead the way in harnessing renewable energy.
“I look forward to seeing innovative developments that will drive economic growth while advancing our transition to a greener future.”
Wales Office Minister Nia Griffith, said: "“The Clean Energy Fund helps to cement North Wales’s growing reputation in the clean energy sector. This fund, supported by investment from the Ƶ Government, will ensure the sector continues to flourish and create new well-paid jobs.
“The Ƶ Government has made kickstarting economic growth and making Britain a clean energy superpower the cornerstones of our Plan for Change. North Wales is at the heart of our ambitions to secure our energy supply, respond to climate change, reduce household energy bills as well as grow the economy.”
