Understanding investment choices for Smart Local Energy in North Wales

Wavehill and CAG Consultants supported Ambition North Wales in 2021 to develop the Economic Case as part of the business case for the Smart Local Energy project (now operating as the “Clean Energy Fund”) within the North Wales Growth Deal.

The fund supports a range of renewable energy generation and infrastructure, smart energy solutions, energy efficiency, decarbonisation and retrofit interventions.

The work helped define how the project could best support low carbon investment, local ownership and economic outcomes across the region. The commission focused on shaping and testing delivery options before progression to outline business case stage. This included:

developing critical success factors with project stakeholders

identifying and assessing longlist delivery options

reviewing strengths, risks and delivery considerations

narrowing options to a shortlist and preferred way forward

assessing alignment with spending objectives and value considerations

Early scoping activity reviewed the Regional Energy Strategy alongside existing national and local interventions. This identified where additional investment could add value and where activity was already well established.

The assessment considered intervention areas across domestic energy, commercial and industrial energy, transport and renewable generation, which helped to prioritise the areas where additional investment through this fund could add greatest value.

The appraisal process examined options across five areas:

service scope

service solution

delivery arrangements

implementation
funding structure

Outcomes

The work concluded that an open low carbon investment fund represented the preferred way forward, with a model involving a £25m fund, and a focus around creating jobs and economic value in North Wales, reducing carbon emissions and increasing local ownership of local low carbon energy projects. These are all reflected in the scale and focus of the Clean Energy Fund that is now in operation.

The Economic Case provided a clear framework which had been effectively consulted on, supporting progression to later business case stages. It established an evidence-based approach for agreeing investment priorities, delivery mechanisms and funding structures, while creating a shared basis for future decision making around low carbon investment in North Wales.