It’s time for a renewable energy revolution - that was the key message from Farmers’ Union of Wales officials when they met with Brecon and Radnor MP Fay Jones at the Winter Fair.
The MP heard that reliance on and exposure to global fossil fuel markets has been exposed by the impacts of the pandemic and Russia’s war on Ukraine.
Energy production using fossil fuels is second only to business in terms of contributions to Wales’ greenhouse gas emissions, and is the second highest contributor in the UK after transport.
The MP further heard that in 2018 50% percent of the electricity consumed in Wales was generated from renewable energy sources, up from 19% in 2014 and 48% in 2017. A vast proportion of that energy, Union officials highlighted, was produced on Welsh farmland but growth in recent years has slowed significantly as Government incentives for farmers have been removed.
Both the UK and Welsh Governments must step up efforts that restore growth in the industry by incentivising on-farm production of renewable energy without compromising food production and agricultural land. The removal of business rate relief for privately-owned hydropower projects has served as a significant barrier to investment, while obstacles including landscape designations - such as the petition to designate the Cambrian Mountains as an Area of Outstanding Natural Beauty - and disproportionate regulations continue to block developments.
Additionally, the FUW used the opportunity to highlight that countries across the EU have announced support packages worth hundreds of billions in order to support businesses suffering as a result of massive price rises and to bolster and boost food production.
The support provided in the UK compared to that by other EU countries, has been negligible, risking a reduction in capacity to produce key commodities such as food and increasing exposure to current global shortages.
The MP further heard that while Inflation in the UK stands at around eleven percent, the rate of inflation in terms of the cost for farmers of producing food is almost three times this level, threatening the viability of such businesses.
UK Governments must act now to place UK farmers on an equal footing with farmers in the EU who are receiving funding to make up for such escalations in food production costs. Inflation in the costs of energy and other key inputs throughout UK food supply chains is adding additional pressures for businesses that are critical in terms of food production, leading countries across the EU to provide financial assistance and incentives for businesses such as food processors and fertiliser manufacturers.
Whilst the FUW welcomed the UK Government's announcement in September which outlined plans to help cut energy bills for businesses until March next year, it will take years for businesses to fully recover from the ongoing energy crisis and current inflation rates.