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Minutes of the Joint National Grid Meeting

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Minutes of the Joint National Grid Meeting SWYDDOGOL / OFFICIAL MINUTES OF THE ENERGY ISLAND PROGRAMME STRATEGIC FORUM 9:00 A.M. 17th NOVEMBER 2015 ENERGY CENTRE, COLEG MENAI, LLANGEFNI – LL77 7LP PRESENT Matthew Clarke – DECC (Chair) Shunsuke Utena – Hitachi-GE Wyn Roberts – Interim Head of Nuclear Supply Chains, Welsh Government Dr. John Idris Jones – Energy Island Programme Director (EIP) Charlie Takser – Horizon Malcolm Twist – Hitachi-GE Andrew Beirne – DECC Glyn Jones – Grwp Llandrillo Menai Craig Ab Iago – Rhun Ap Iorwerth AC Lowri Joyce – Hitachi-GE Simon Roscoe – North Wales Police Sioned Williams – Gwynedd Council Dennis Evans – Anglesey Economic Regeneration Partnership Philip Care – SHARP Stuart Law – Magnox (Wylfa) Martin Moore – Magnox (Trawsfynydd) David Sprake – Glyndwr University Liam O’Sullivan – SP Energy Networks Geraint Strello – BT Group Matt Durham – National Grid (NG) Aled Roberts – National Grid (NG) Ieuan Wyn Jones – Menai Science Park Richard Sidi – Land & Lakes Brian Scowcroft – Land & Lakes Professor Siân Hope – Bangor University Dylan Williams – Head of Economic & Community Regeneration (IACC) Arthur Wyn Owen – Corporate Director Sustainable Developments (Major Energy Consents Programme Sponsor), IACC Cllr Ieuan Williams – Leader & Portfolio Holder for Economic Regeneration, IACC Dr Gwynne Jones - Chief Executive (Programme Sponsor), IACC Alli Hunt – NSAN Dr Ian Rees – Coleg Menai, Grwp Llandrillo Menai Liz Davies – EIP Delivery Manager, IACC Manon Francis – EIP Development Officer, IACC APOLOGIES Councillor Dilwyn Owen Williams – Gwynedd Council Alan Raymant – Horizon Nuclear Power Lia Murphy - OFGEM Jean Llewelyn – NSAN Cllr Dilwyn Roberts – Chair of Economic Ambition Board Jon Phillips – NDA Gill Ronayne – Ronayne Consulting Ltd Rory Trappe – Magnox (Trawsfynydd) Richard Foxhall – Horizon Nuclear Power (HNP) Leon Flexman – Horizon Jonathan Jenkin – Nuclear Decommissioning Authority (NDA) (SF Minutes 17-11-2015) Page 1 of 9 SWYDDOGOL / OFFICIAL Cllr Aled Morris Jones – Chair of the Wylfa Site Stakeholder Group Rhun ap Iorwerth – A.C Ynys Môn Gill Wood - Prospect Greg Evans – Horizon Nuclear Power (HNP) Professor John Hughes – Bangor University Mohammed Mehmet – Denbighshire Council Paddy McNaught – Unite the Union Mark Jones – GMB Gwenllian Roberts – Deputy Director – Head Energy Wales Unit, Welsh Government Philip Behan – Cavendish Fluor Partnership Andrew Jones – Public Health Wales Iwan Trefor Jones – Gwynedd Council Tristram Denton – Hitachi-GE Nuclear Energy ITEM 1 – Welcome & Housekeeping Cllr Ieuan Williams welcomed all to the meeting and undertook the safety briefing. Forums’ membership reviewed – consisting of key stakeholder organisations, with one nominated representative (maximum 2) to ensure the relevant key stakeholder organisations are represented and maintain focus. Significant progress since last meeting; Horizon: IACC are currently commenting on the Horizon Health Impact Assessment and Welsh Language Impact Assessment – both circulated to key partners to shape PAC2 documentation Horizon/ Hitachi GE announcement of Joint Venture partner is imminent PAC2 will be released early in the new year Land and Lakes: Land and Lakes planning application consented Purchase of land from AAM on-going and expected to be complete early in the new year Orthios: £1bn investment secured by Chinese Firm SinoFortone Group – with an additional £1bn secured for their site in Port Talbot Purchase of land from AAM on-going and expected to be completed by the end of the year National Grid: Public consultation on the preferred orange route commenced IACC currently pulling together a detailed response Morlais: Consultation underway with respect to the proposed variation to the boundary of the Demo Zone In process of defining management process for the first round of sub-zone leasing. Aim to allocate areas within the Morlais zone by May 2016, but subject to change ITEM 2 – Agree Minutes from the previous meeting. The minutes from the previous meeting (28th July 2015) were agreed. Actions from previous meeting were reviewed. One action outstanding which can be provided in next meeting. First stage worker profile data – update to be presented at the next meeting (Magnox). ITEM 3 – UK Government (DECC), Wales (WG) & IACC update UK Government (DECC) – Matthew Clarke Hinkley Point C (SF Minutes 17-11-2015) Page 2 of 9 SWYDDOGOL / OFFICIAL Announcement last month – EDF and its Chinese partner China General Nuclear Corporation (CGN) committed to take forward Hinkley Point C. Companies signed a Strategic Investment Agreement – EDF confirmed it will take a 66.5% stake in Hinkley with CGN taking 33.5%. Contract for Difference: The Government and EDF have finalised Contract for Difference and ancillary documentation – offers increased price certainty for the electricity produced from Hinkley Point C. Funded Decommissioning Programme approved – ensures the tax payer doesn’t pick up the cost of decommissioning the plant in future. Secretary of State (Amber Rudd) will take her final decision on the Contract for Difference when EDF and CGN have signed full investment documentation. Hinkley Point C expected to have major economic benefits – creating 25,000 jobs, with at least 5,000 people from Somerset expected to work directly on the project, providing a £40M boost to the local economy every year. Hope that Hinkley Point C will have direct supply chain opportunities for businesses in Wales but also note concerns expressed that it could make the shortage of skilled workers for construction projects worse (as reported by the Royal Institution of Chartered Surveyors). Hinkley Point C is the first project to get to this stage in the new nuclear programme, positive sign to progress with other projects in the UK. UK Wide Continue to work on other issues and lessons learned from the Hinkley Point C process. Focused on structured engagement around the next two projects. Commitment to work with other developers in particular Japanese partners remain. Continually looking to maximise UK content in supply chain, particularly local companies. Number of initiatives put in place (working with industry) to help prepare and develop UK suppliers to bid for nuclear new build opportunities and develop capacity among suppliers e.g. the Manufacturing Advisory Service and the Fit for Nuclear programme (run by the Nuclear Advanced Manufacturing Research Centre). Skills – key area. DECC in collaboration with other Whitehall departments working closely with industry and skills: o Identify skills shortage in specific professions through Labour Market Intelligence. o Training and entry schemes (Degree Apprenticeships, Trailblazers) o Recognising/ benchmarking transferrable skills o Nuclear Industry Council (NIC) – has a specific workstream devoted to skills. Currently considering consultation responses about its direction going forward. o Nuclear Skills Strategic Group (NSSG) – acts as the lead strategic skills forum representing the nuclear industry’s skills demands in the UK. Provides strategic direction on skills infrastructure, processes and training provision. Reports to the NIC. Small Modular Reactors (SMR) – no Government Policy on SMR at present. Techno-Economic Assessment ongoing – complete Spring 2016. Spending Review announcement due 25th November 2015. Update to be provided at the next meeting. Await outcome of that to see what it means for DECC – Government is committed to new Nuclear and clear that it wants to see a significant expansion in new nuclear. (SF Minutes 17-11-2015) Page 3 of 9 SWYDDOGOL / OFFICIAL Wales (WG) Overview – Wyn Roberts Wyn Roberts explained that responsibility of his work is mainly around Nuclear Supply Chain. POLICY & CONSENTS Wales Bill – draft bill published in October setting out how it will deliver the St David’s Day commitments. Clauses 8 and 17 of most interest to the Energy agenda. o Clause 8: Onshore petroleum licensing 76 Clause 8 transfers to Welsh Ministers certain executive functions exercised currently by the Secretary of State relating to onshore petroleum licensing in the Welsh onshore area. o Clause 17: Gives effect to the policy intention to devolve to Wales the responsibility for energy planning development consents for projects up to an including 350MW onshore and in Welsh territorial waters. Energy Bill – announced in the Queen’s Speech in May. Will deliver on two of the Government’s key energy commitments – 1. North Sea Oil and Gas and oversee transition of the OGA from an Executive Agency of DECC to a Government-owned company; 2. Allow local people to have a greater say on new onshore windfarm applications by removing the need for the Secretary of State’s consent for large onshore wind projects. Proposed legislative changes mean that final decisions on planning applications for onshore windfarms (with generating capacity over 50MW) in England and Wales will be taken by local authorities. UK Secretary of State announced in June that the Renewables Obligation scheme to new onshore wind would close early from April 2016 next year. Continue to engage with DECC, particularly over the transitional arrangements for on-shore wind, which have had the effect of stopping a number of projects in Wales with immediate effect. DELIVERY Wales Nuclear Programme: Cross sector/ cross department Programme Board established in late 2014. Outline business case endorsed in June 2015 - subject of ministerial discussion early July. Currently developing detailed business case – to be considered early in the New
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