The Challenge

Gwynedd Council was keen to investigate the market for electricity provision to the Snowdonia Enterprise Zone (SEZ) to potentially reduce electricity tariffs for the SEZ’s two locations in the region. This could incentivise large energy consumers across the electricity, environment, digital, and advanced manufacturing sectors to relocate within the SEZ region which would offer further economic benefits. IPA was commissioned to provide an independent market report to inform these considerations.

Our Solution

IPA undertook a number of activities to inform consideration of the electricity market in the SEZ:

  • Provided a summary of potential site developments for the SEZ to determine their likely electricity loads. This was followed by an overview of the existing electricity infrastructure in North Wales, forecast development over the next two decades, and a review of the impact of Electricity Market Reform on the North Wales region to identify regional opportunities;
  • Identified approaches to reduce electricity tariffs for the SEZ through a detailed breakdown and analysis of the cost components of electricity tariffs for different consumers. This was followed by consultations with other enterprise zones and electricity suppliers in the UK to identify and confirm business strategies to provide electricity costs reductions for potential developers; and
  • Assessed electricity infrastructure improvements required for each of the SEZ locations and associated costs, and provided an overview of the wider economic benefits to the North Wales region from potential developments in the electricity sector.

IPA presented its key findings and recommendations to the SEZ Board to inform the Board’s consideration of development options for the SEZ’s two locations.