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21. Welsh Regulatory Derogation with Ofgem


We will call on Ofgem to develop a Welsh regulatory derogation to enable energy business model innovation in support of the wider recommendations of the Renewable Energy Deep Dive. The objectives of the derogation should include:

a.    Accelerate the scale-up of renewable energy in Wales
b.    Enable energy business model innovation
c.    Realise the benefits and wider co-benefits of renewable energy (from a Welsh and energy systems perspective)
d.    Unlock energy system value, such as that from demand flexibility customers and consumers peer to peer trading and local electricity supply
e.    Better engage and protect the interests of Welsh citizens.

Key highlights / milestones    


Next steps towards completion

  • As yet we have not identified any specific projects where a derogation is needed. 
  • We will use local area energy plans to identify the challenges for the regulatory and funding regimes.  Plans are due to be completed by March 2024. We will collate and share key insights with Ofgem and stakeholders.