Wood burning power stations proposed in Swansea and Kidwelly have been rejected following planning meetings.
Campaigners raised concerns that the plants could have a detrimental effect on air quality in the towns.
The plants were expected to create 200 permanent jobs but both have been rejected by the respective local authorities.
More than 80 people wrote letters of objection for the Swansea plant and five petitions with more than 800 signatures were received on the matter.
The plant, which would have burnt wood chips and pellets brought in by sea, would have generated enough electricity for around 80,000 homes, while excess heat could have been used for heating local buildings.
Meanwhile, the European Investment Bank is boosting lending to companies working on renewable energy projects to ensure they are not abandoned during the global economic downturn.
The EIB will boost lending from 45 billion (£42 billion) last year to 65 billion in 2009.
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