UK energy policy is a strategic issue set at the national level and therefore is predominantly a non-devolved matter. The UK Government set out its thinking on the future of the UK's energy policy in its White Paper (Our Energy Future: Creating a Low Carbon Economy, Cm 5761, ISBN 0101576129) published in 2003. Given its position as a net exporter of energy, with an abundance of natural resources, Wales faces a unique opportunity to continue to play a vital role in the UK's energy supply. The Committee's report examines the current energy sector situation in Wales, focusing on energy supply issues, and makes a number of recommendations on matters that need to be addressed in order to maximise its development of energy sources and renewable energy. Topics covered include: UK Government and Welsh Assembly Government policies, including the carbon trading scheme and renewable obligation certificates; the coal industry in Wales and clean coal technology; nuclear power, including the decommissioning of Wylfa power station and options for extending its life; liquefied natural gas; wind energy, the environmental impact and planning issues, including the case of the proposed Gwynt y Mãr wind farm; wave and tidal power, and the future development of marine technologies; biomass; solar energy and photovoltaics; geothermal energy; and hydro-electric power.

The Committee's major inquiry into Energy in Wales was published on 20 July 2006 (HC 867-I 2005-06) did not cover open cast mining. However there was a proviso that "should open cast mining in Wales be extended further, an in-depth assessment of the environmental impact of that process would be worthwhile". Following representations by the Opnecast Coal Committee of Wales and groups opposed to such developments the Committee decided to undertake this follow-up inquiry. It also took evidence on the development of sustainable technologies and measures to encourage microgeneration.