MPs have voted to reject a ten minute rule motion calling for all energy matters to be devolved to Wales.
Plaid Cymru MP Jonathan Edwards introduced his bill on 31 January 2012, which proposed to devolve the power to decide policy on energy generation from Westminster to the Welsh Assembly.
Currently the Welsh Assembly is able to rule on power generating plants up to the size of 50 megawatts.
Mr Edwards said that unless politicians in Cardiff had the ability to direct where power stations can and can not be built Wales would not reach its potential.
But Labour's Albert Owen spoke against the plans, and called for full co-operation between all governments on each energy project.
MPs went on to reject Mr Edwards' proposals by a majority of 195.