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MINUTES OF THE ENERGY ISLAND PROGRAMME STRATEGIC FORUM 9:00 A.M. 9th MARCH 2016 ENERGY CENTRE, COLEG MENAI, LLANGEFNI – LL77 7LP

PRESENT Matthew Clarke – DECC (Chair) Cllr Ieuan Williams – Leader & Portfolio Holder for Economic Regeneration, IACC Dr Gwynne Jones - Chief Executive (Programme Sponsor), IACC Wyn Roberts – Interim Head of Nuclear Supply Chains, Glyn Jones – Grwp Llandrillo Menai Lowri Joyce – Hitachi-GE Harriet Reece – DECC Non Ap Gwyn – Rhun Ap Iorwerth A.C Iwan Williams – NRW Judith Thomas-Jones – Minesto Heije Westberg – Minesto Cllr Dilwyn Roberts – Chair of Economic Ambition Board Nia Swann Bowden - Council Rory Trappe – Magnox () Matt Durham – National Grid (NG) Annwen Morgan – Assistant Chief Executive, IACC Dylan Williams – Head of Economic & Community Regeneration (IACC) Jean Llewelyn – NSAN Richard Foxhall – Horizon Nuclear Power (HNP) Kieran Somers – Horizon Dr. John Idris Jones – Chair of Enterprise Zone Jonathan Jenkin – Nuclear Decommissioning Authority (NDA) Dennis Evans – Anglesey Economic Regeneration Partnership Philip Care – SHARP Stuart Law – Magnox (Wylfa) Richard Sidi – Land & Lakes Brian Scowcroft – Land & Lakes Professor Siân Hope – Liz Davies – EIP Delivery Manager, IACC Manon Francis – EIP Development Officer, IACC APOLOGIES Councillor Dilwyn Owen Williams – Gwynedd Council Simon Roscoe – North Police Shunsuke Utena – Hitachi-GE Martin Moore – Magnox (Trawsfynydd) Dr Ian Rees – Coleg Menai, Grwp Llandrillo Menai Andrew Beirne – DECC Alan Raymant – Horizon Nuclear Power Lia Murphy - OFGEM Jon Phillips – NDA Leon Flexman – Horizon Cllr Aled Morris Jones – Chair of the Wylfa Site Stakeholder Group Gill Wood - Prospect Greg Evans – Horizon Nuclear Power (HNP) Professor John Hughes – Bangor University Mohammed Mehmet – Denbighshire Council

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Mark Jones – GMB Gwenllian Roberts – Deputy Director – Head Energy Wales Unit, Welsh Government Philip Behan – Cavendish Fluor Partnership Andrew Jones – Public Health Wales Tristram Denton – Hitachi-GE Nuclear Energy ITEM 1 – Welcome & Housekeeping Cllr Ieuan Williams welcomed all to the meeting and undertook the safety briefing.  Significant progress since last meeting; Horizon:  Welcome new appointments – Duncan Hawthorne (CEO), Carl Devlin (Programme Director) and Sasha Davies (Head of Strategic Development)  Informal consultation on Project Update commenced and will conclude on 24th March  Hitachi confirmed incorporation of a new UK company – Hitachi Nuclear Energy Europe, Ltd. – which will lead its work in a proposed Tier-1 joint venture, as well as significant further progress with potential joint venture partners Bechtel Management Company Ltd. And JGC Corporation  Understand that there is an aspiration to announce construction Tier-2 suppliers swiftly Land and Lakes:  S106 being finalised  Completion of land purchase from AAM mid 2016  Following Orthios Eco Parks announcement of £1bn of Chinese investment in the adjoining Anglesey Aluminium biomass energy plants, Land and Lakes are progressing discussions regarding mutually beneficial use of waste residual heat Orthios:  Officially launched in January National Grid:  IACC submitted detailed response to public consultation on the preferred orange route  Planning for statutory consultation in Autumn 2016 beginning with preparation of the Statement of Community Consultation, as required by the Planning Act Morlais:  EOI for 8 sub zones  1st phase commenced 1st December – 29th January  Following review of their suitability if successful will be invited to tender  Zones will be awarded May 2016 MINESTO  Welcome appointment of new CEO Martin Edlund ITEM 2 – Agree Minutes from the previous meeting. Matthew Clarke made some initial comments:  Last meeting focussed on the recent grid consultation; first half of this meeting will focus on the current informal consultation on the Horizon Project update, with the second half focussing on marine energy developments. Both Morlais and MINESTO will update us on their projects. Unfortunately Atlantis unable to attend but have provided a written update which was circulated with meeting papers.  Minutes of previous meeting (17th November 2015) were agreed. Actions from previous meeting were reviewed: First stage worker profile data – update to be presented at the next meeting Philip Behan provided an update on this action previous to meeting – Data has been

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provided to Magnox Task Force (with WG, Gwynedd Council, IACC and Coleg Menai all represented). Will be made public in time, but at the moment, the Task Force, set up by the Minister, should be allowed to get on with its work without compromise or distraction. Action closed.

ITEM 3 – UK Government (DECC), Wales (WG) & IACC update

UK Government (DECC) – Matthew Clarke Hinkley Point C  Hinkley Point C has not yet reached Final Investment Decision (FID).  Resignation of EDF’s Chief Finance Officer this week has not altered the Government’s position.  The Government remain fully committed and confident that Hinkley Point C will go ahead.  Hope that by the next meeting, FID will have been reached. Reset Speech  Secretary of State’s Reset Speech in November 2015 set out the new direction for UK policy.  She set out her priorities for 3 energy types: Nuclear, Offshore Wind and Gas. Welsh Affairs Select Committee  UK Government submitted their submission.  As you would expect, it was very supportive of Nuclear in Wales.  Minister Andrea Leadsom, who leads on Nuclear portfolio, will appear before the Committee – date to be confirmed. Small Modular Reactors (SMRs)  Exciting area of work and much progress being made in developing policy advice.  The Techno-Economic Study is still on track to deliver its final conclusions at the end of March.  An announcement around next steps is expected in due course. National Infrastructure Commission (NIC)  NIC currently carrying out a consultation (until 17th March) – https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/ 489952/National_infrastructure_commission_jan_16_web_final.pdf  Document makes reference to the NIC working with lead government departments to prevent delays to long lead time projects (such as nuclear) which demonstrates that the NIC understands the special nature of these projects and the need for market and investor confidence many years in advance.  The extent to which the commission considers area of infrastructure in Scotland, Wales and Northern Ireland, where responsibility is devolved, will be a decision for the devolved administrations to make.  From the document, understand the commission proposes to work closely and collaboratively with the devolved administrations in a spirit of openness and transparency, and will need to consider cross-border issues where these affect infrastructure decisions over which the UK government has authority.  Also from the document, understand the proposal is that it should therefore be part of the commission’s duties to consider all areas of infrastructure that involve input from the UK Government, even where these cross borders. Supply Chain  Good work in progress around developing good UK supply chain capability.  Continuing to look at how DECC can maximise UK content in supply chain ensuring opportunities opened for UK, particularly local companies.

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 Number of different ways DECC are taking this forward:  Regeneration of UK nuclear manufacturing capability through the Nuclear Advance Research Manufacturing Centre, or NAMRC, located in Sheffield;  Work with the Nuclear Industry Council on a coordinated strategy; and  UKTI’s support for businesses to grow their export capability.  Working with industry in particular to develop a ‘Demand Model’ that aims to match opportunities in nuclear with UK capability.  Government funding for many existing initiatives, such as Fit 4 Nuclear and Civil Nuclear Sharing in Growth have been cut. Working closely with NAMRC to find sustainable commercial funding models for initiatives.  WG funding 20 companies under the initiatives until March 2017. Skills  Continue to focus on building skills.  Keen for nuclear to seek to fill the skills gas predicted over next 5 years by looking to declining sectors such as oil and gas, and steel. There are a number of generic Tier-1 skills that can be adopted by the nuclear sector. Looking to ‘nuclearise’ these skills thus allowing them to develop to Tier-2, nuclear specific construction and engineering skills.  Based on consultation responses from, DECC and the Nuclear Industry Association have agreed reforms to the Nuclear Industry Council, the coordinating body for the work of industry and Government across the sector.  The new council will be streamlined and as a result, more capable of taking the strategic decisions to drive forward work in these areas.  The Nuclear Skills Strategic Group has been formed and will sit under the reformed Nuclear Industry Council.  Intention that it will become the strategic skills forum for the sector, and that it will allow industry to take ownership of the UK skills challenge. It is still developing its work programme; however, we expect it to build on past work in this area – including the detailed forecasts of future skills demands across the sector.  National College for Nuclear (NCfN) – BIS have concluded their Due Dilligence process with the college partners and assistance from DECC. BIS are currently working on their final grant offer and will communicate this in due course.

Questions and Comments JLl (CEO, NSAN) noted that around 3500 people have been through the Fit 4 Nuclear Programme – indicates enthusiasm to get ready for Nuclear in the Supply Chain.

JIJ (Snowdonia Enterprise Zone) – In terms of skills, how is the Welsh side being dealt with. Note that things are being said in Whitehall that aren’t relevant to Wales. WR (WG) noted that WG want full position at the table.

GJ (GLlM) asked how the agenda of the NCfN would feed through to benefit Wylfa Newydd; should avoid duplication of initiatives and exploit synergies where possible. WR, WG noted that he doesn’t have any detail on that yet. MC (DECC): Agreed to follow up with BIS and potentially EDF/Sellafield and update you ACTION

JLl (NSAN) in response, noted NSAN have been in conversations with EDF, such as the– curriculum development steering group which Horizon took part in. NSAN cover England, Wales & Scotland and noted there is no Welsh observer/ advisor on the NSAN board and JLI therefore invited a relevant volunteer to sit on the board.

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SH (Bangor University) raised the fact that student matters are devolved in Wales, but research is not. If any bodies are looking into research in future, Bangor University would welcome to be a part of the discussions. Noted that there is a group called Nuclear University UK Group, however only English Universities on this group at the moment.

RF asked whether MC has any comments on NuGen and the multi proposals at Bradwell. MC answered that there is a structured dialogue between DECC and NuGen and making good progress. DECC meet with NuGen as often as they do with Horizon.

DW stated that the delay in Hinkley creates uncertainty in , and in career/ supply chain decisions. UK Government should be aware of the impact this has on confidence in Wylfa Newydd in North Wales. Will there be a tipping point, where some sites will over-take Hinkley? MC answered that from his position, no there will not as Hinkley is significantly ahead of the other projects in terms of having completed GDA and having achieved Development Consent. Confident there will be an announcement soon. The UK Government remains committed to nuclear; we need new nuclear generation in the 2020’s as set out in the Nuclear National Policy Statement. Fully takes DW’s point and does appreciate the uncertainty this can cause locally.

IW (NRW) – 8 designated sites looked at, will there be a review in future? MC stated that DECC constantly assessed the need for any review and would advise Ministers accordingly With regards to SMRs, it is likely there would need to be a process to identify sites, should the UK Government make a positive policy decision to proceed.

Wales (WG) Overview – Wyn Roberts

POLICY & CONSENTS Planning (Wales) Act – Development of National Significance:  Came into force 1st of March 2016.  Ensures that infrastructure projects which are of most significance to Wales are determined at the national level and are made directly to the Welsh Minister.  Act introduces new process for the consenting of Developments of National Significance (DNS).  Process marks flagship reform to planning system – will ensure timely decision making, particularly on renewable energy projects as well as other DNS in Wales.  DNS projects include energy projects with a generating capacity of between 10MW and 50MW, airports, railway infrastructure, dams and reservoirs, and other types of development requiring planning permission which are considered to be of national significance.  Onshore wind – as a result of planning changes in England (removing on-shore wind from the NSIP process), all on-shore wind projects will be decided in Wales (from 2nd March). Below 10MW decided under TCP; 10MW and above will fall into DNS with no upper limit unlike other energy projects which are capped at 50MW. Energy projects 50MW an above (except on-shore wind) will continue to be decided under the NSIP process at UK level.  Wales Bill – Continue to engage with UK government on the draft Wales Bill in line with the recommendations outlined in Silk.  Energy matters include the proposal to devolve energy consenting up to 350MW to Wales, plus the proposal to devolve on-shore oil & gas licensing to Wales. Energy consents will exclude nuclear.

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 1st of March, the Secretary of State for Wales announced a pause in light of feedback following publication of the draft bill last year. 7th March, the First Minister published an alternative to the Secretary of State’s draft Wales Bill – “Government and Laws in Wales Draft Bill”  WG’s Bill includes a reduced number of ‘reserved’ matters. Also introduced a future-proofing element as envisaged by Silk and provided for a distinct legal jurisdiction for Wales, along the lines which the National Assembly for Wales has already supported unanimously. DELIVERY Wales Nuclear Programme:  MEST agreed to the establishment of a cross sector/ cross department Programme Board in late 2014 with agreed aims of:  Delivering WG’s commitments outlined in ‘Energy Wales’ by securing transformational nuclear sector investment over the next 30 years; and  To maximise the benefits of nuclear sector investment by securing supply chain opportunities for Welsh business and by attracting inward investment by persuading companies to invest in Wales.  To date, the board has concentrated on the economic benefits of the proposed nuclear investment. Workstreams are structured to optimise the outputs from this aapproach from a variety of Nuclear projects (i.e. Wylfa Newydd, Hinkley point C, decommissioning and potentially SMRs in the future).  Now looking to extend the scope of the programme to address and co-ordinate other aspects of the investments at Wylfa Newydd given presence on welsh soil.  AECOM have been re-appointed to work with the Wales Nuclear Programme workstream leads to develop the business cases to support the intervention rationale for each workstream programme.  Hope that the following business cases completed by June 2016: Skills, Supply Chain, Sites and Premises, Housing and two infrastructure. Further business cases to be progressed in 2016/17. Supply Chain Development:  Fit 4 Nuclear Programme – Letters inviting EOIs to participate in 2016/17 sent out this week; aim to support 20 companies through the programme which benchmark’s a company’s current performance against industry standards.  Business Readiness Programme – Collaborating with Horizon and NWEAB on a supply chain engagement (advance manufacturing) programme of nuclear development training. Aim to launch in July.  Mantra Bus – AMRC’s customised 14m HGV trailer and an unique travelling showcase for advanced engineering an working with the Innovation colleagues. In the process of arranging its visit to Swansea (23rd March) and Anglesey (June 1st or 2nd – possibly at RAF, tbc) to present their manufacturing R&D capabilities for nuclear and other innovative energy industries.  Local Supply Chain Development (Wylfa Newydd) – More structured engagement with Horizon and Hitachi-GE with formal Engagement Frameworks.  Working to agree a programme of support for the NWEAB – should help provide resource to work with WG to engage on local supply chain opportunities across North Wales. WG currently assessing NWEAB’s revised business plan. Magnox Task Force:  Established to provide advice to the Minister on how best to manage the imminent decline in the Magnox workforce and the associated supply chain. It ensures:  Ongoing employment opportunities for those wishing to remain in the nuclear sector;  Ongoing employment/ retraining opportunities for those wishing to remain gainfully

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employed in the local area but outside the nuclear industry;  The facilitation of long term sustainability of the North West Wales economy through infrastructure enhancements and supply chain development associated with the transition to nuclear new build and other potential developments.  Task Force now met twice, working towards developing a series of recommendations by the summer. Marine Sector:  Morlais - Difficult funding environment but significant progress made by Menter Môn on progressing the Morlais Demonstration Zone. Menter Môn started submitting their plans to WEFO to apply for funding to support zone preparation and grid infrastructure.  Atlantis Resource Limited – Aquired Marine Current Turbines Limited (MCT) from Siemens AG. WG engaging with with ARL and hope to hear of the company’s plans for the Skerries marine site soon.  Tidal Energy Ltd. – Have been testing their DeltaStream device in Ramsey Sound since its deployment in December 2015. Device will be removed in April to commence design modifications.  Minesto – WEFO awarded over €13m for the commissioning of the first full-scale 500kW Deep Green power plant in Holyhead Deep. Company in start up phase.  Marine Energy Task and Finish Group (Chair – Andy Billcliff) – Met regularly since its first meeting in September 2015. Their report to the Minister and the EW Strategic Delivery Group will be published shortly.  SEACAMS – continued engagement with WG and WEFO regarding their SEACAMS2 application.  International Conference on Ocean Energy 23-25 February 2016, Edinburgh, Scotland – Was held in the UK for the first time ever. Organised and hosted by RenewableUK in partnership with Scottish Renewables. Welsh stand ‘partners’ at the event include: Marine Energy Pembrokeshire, Marine Power Systems, Menter Môn, Marine Space Ltd., Tidal Lagoon Power, SEACAMS, Tidal Energy Ltd.

Questions and Comments Glyn Jones (GLlM) asked for more information on the Fit 4 Nuclear Programme. It is a programme derived from industry. Run by the University of Shefield. 400 companies have gone through/ completed the programme in 5-6 years. It enables companies to go through a system of self-examination and reach a certain benchmark to show you are “Fit 4 Nuclear” and moving in the right direction. It is a starting point to engaging on a mature level, but clearly need to know more of the Supply Chain opportunities in the area.

Isle of Anglesey County Council Update – Dr Gwynne Jones  Detailed at last meeting that the EIP resource is scheduled to come to an end on 31st March 2016. Confirm that (subject to formal approval), a Business Case has been agreed to progress the Programme beyond March. The IACC have also submitted a 3 year business plan to extend the Planning Performance Agreement with Horizon.  Critical year for IACC (deliver consenting responsibilities) – 12 TACP’s from Horizon anticipated in 2016/17 – initial application for Site Preparation and Clearance and Highway Improvements imminent, Orthios development progressing etc.  Introduced Annwen Morgan, Deputy Chief Executive. Annwen will be leading on Partnerships, Community and Services Improvement, whilst Caroline Turner (Deputy Chief Executive) will lead on Governance & Business Process Transformation.  Focus since last meeting has been on:  Developing a detailed response to the Horizon Project Update – building upon the detailed response to PAC1  Statement of Community Consultation – reviewed prior to the current consultation

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 Welsh Affairs Select Committee The Future of Nuclear Power in Wales Inquiry – detailed written submission presented by IACC  Community Engagement – on-going discussion with Horizon. Agreement to fund engagement and training of 2 community engagement officers  WLIA – collaborated with Horizon to review prior to informal consultation  Workers Accommodation: Progressed Section 106 agreement with Land and Lakes; considering content of Project Update document.

ITEM 4 – Wylfa Newydd Project Update Informal Consultation Kieran Somers provided a presentation updating us on Horizon’s informal consultation on the Project Update document.

Copy attached – no questions/ comments

ITEM 5 – Marine Update Morlais Gerallt Jones gave a presentation on the Morlais project, providing a brief background to the project and update on its progress.

Minesto Judith Thomas (Business Accountant) along with Heije Westberg (Chief Technical Officer) gave an introduction to the Minesto project and progress to date along with plans for the future.

Questions and Comments GJ (GLlM) noted that it seems the common barrier between both projects is grid link. What is both projects’ view about risk? Heije Westberg noted that grid is a key issue, and they are working together with Gerallt Jones (Morlais) and other developers. Gerallt Jones noted the demand for grid means the need to identify ways of sharing between Morlais, Minesto and Orthios. Gerallt noted that were it not for funding from NDA, WG and the IACC, Morlais would not have happened.

ITEM 6 – Developer Project Updates There was nothing to add to the updates that had already been circulated.

DE asked National Grid more about the undergrounding issue at from Wylfa to Pentir. In Lincoln, 35 miles of cables is being undergrounded and the Government can pay this – why not in Anglesey? MD explained that there will be 2.8GW potentially coming in to Wylfa – at the moment 1.8GW is maximum. Undergrounding would mean around 12 cables being laid side by side. Costs £10-24M in addition to going overground. Strike price – would need to negotiate.

Item 7 – Chair Sum Up & Close MC thanked all for attending what he thought was a very interesting meeting and thanked Kieran Somers, Gerallt Jones and Judith Thomas for their presentations.

Date of next meeting: June 2016

Action Summary Owner GJ (GLlM) asked how the agenda of the NCfN would feed MC through to benefit Wylfa Newydd; should avoid

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duplication of initiatives and exploit synergies where possible. MC (DECC): Agreed to follow up with BIS and potentially EDF/Sellafield and update GJ and the next ForumACTION

NSAN cover England, Wales & Scotland and noted there Programme Office is no Welsh observer/ advisor on the NSAN board and JLI therefore invited a relevant volunteer to sit on the board

Approval Final Note Approved Date Matthew Clarke – Department for Energy and Climate 30/03/2016 Change

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