The Scottish Government is facing significant scrutiny over its persistent claim that it lacks the necessary powers to establish a publicly owned energy company, a stance directly contrasted by the recent successful launch of a similar entity in Wales. This development reignites the debate surrounding the extent of devolved authority in energy policy and its implications for renewable project development and community benefit.

In July 2024, the Labour-run Welsh Government announced the formation of Trydan Gwyrdd Cymru (Green Electricity Wales), a state-owned energy firm. This new entity immediately unveiled plans for three wind farms on publicly owned Welsh woodlands, with a projected combined capacity of up to 400 megawatts (MW). This capacity is estimated to power approximately one in four Welsh homes, with a core commitment that all generated profits will be reinvested directly into Welsh communities and public services. Welsh Labour’s Economy Secretary Rebecca Evans emphasized that these proposals demonstrate a commitment to harnessing Wales's natural resources for clean energy while ensuring local benefits, including the creation of hundreds of jobs during construction and operation.

Conversely, Scotland's journey towards a public energy firm has stalled. A 2017 pledge by then-First Minister Nicola Sturgeon to create a “publicly owned, not-for-profit energy company” was abandoned after the 2021 Holyrood elections. Scottish Energy Secretary Gillian Martin reiterated in January that a national public energy company involved in large-scale generation is “not something we are able to do at the moment with the current devolution settlement,” arguing it would require the full powers of independence and access to borrowing over the energy market.

However, critics, including the Common Weal think tank, dispute this assertion. Robin McAlpine of Common Weal stated that his organization collaborated with Plaid Cymru in the Welsh government to lay the groundwork for Trydan Gwyrdd Cymru, specifically demonstrating how such a company could be established under a devolved settlement. McAlpine highlighted several “workarounds,” such as creating a government-coordinated and funded energy company where local authorities own the wind farms, arguing that Scotland's current privatized energy system is a “very active choice.”

Scottish Greens co-leader Patrick Harvie MSP echoed these sentiments, advocating for greater local, community, and public ownership in Scotland’s rapidly growing renewables sector. Harvie emphasized that while Scotland possesses abundant natural resources and skilled personnel, the benefits have disproportionately flowed to large private investors. He called for the Scottish Government to do more to ensure ownership models for renewable energy projects channel funds back into Scottish communities, simultaneously cutting emissions and fostering local economic growth.

Despite these calls, a Scottish Government spokesperson maintained that a national public energy company with large-scale generation capabilities is only feasible in an independent Scotland. They affirmed commitment to maximizing public benefits from the renewables revolution within existing powers, focusing on community investment in energy projects and technology. The contrasting approaches underscore a fundamental disagreement on the interpretation of devolved powers and their application to critical energy infrastructure development.