The likes of Ospreys flier Tom Prydie and Toby Faletau have used Under-20s rugby as a step up to the senior set-up and Lydon - Wales' Head of Rugby, Performance and Development - wants more talent to progress.
And the former England backs coach believes there's no better surroundings than Parc y Scarlets for Welsh young guns to get used to life on the big stage.
"It's vital that our Wales Under 20 players receive not only superb coaching and support systems in their rugby development, but their training and playing environment must also be of high standard.
"We now have world class training facilities at the National Centre of Excellence and we know that in Parc y Scarlets our elite, young players will have the best possible playing arena, as they progress further on the international player pathway."
Meanwhile Wales women's matches against England and Ireland will be played at Pandy Park.