The company is part of the Labour government's co-operation agreement with Plaid Cymru.

Ynni Cymru will be based at the M-Sparc site on Anglesey and aims to expand community-owned renewable energy initiatives.

Sir Keir Starmer announced in June that Great British Energy - a clean energy company - would be established in the first year of a Labour government in Westminster, with its base in Scotland.

The Welsh government has announced £750,000 has been allocated for a total of 11 projects.

The payments will be made in the form of grants over the next three years.

The Welsh Conservatives have said more should be done to remove barriers to privately owned schemes.

Climate change minister, Julie James, and Plaid Cymru's designated member, Siân Gwenllian, visited the Anafon Hydro project in Abergwyngregyn, Gwynedd.

Almost one GWh of electricity is generated each year from its base in Eryri National Park.

The projects which are set to receive funding over the next three years include Cwm Arian for the "heart of Dyfed power unlocker" project on the border between Carmarthenshire, Ceredigion and Pembrokeshire, and the Dyffryn Ogwen Gynaladwy project in Bethesda, Gwynedd.

Julie James said the "market-based approach to the energy system is not delivering decarbonisation at the scale or pace necessary for the climate emergency".

"Local use of locally generated energy is an effective way to support net zero and keep the benefit in our communities," she added.

Siân Gwenllian added: "As we face multiple challenges of a climate crisis and high energy bills, it is more important than ever that we develop renewable energy projects that have local benefit and ownership as a core aim."

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The Welsh Conservatives' shadow climate minister, Janet Finch-Saunders, said she welcomed the investment but accused Labour and Plaid Cymru of "ignoring the elephant in the room".

"There are hundreds of watercourses running through privately owned land in Wales," she said.

"Alongside support for community-owned schemes, the Welsh Government should be removing barriers to privately owned schemes."