Gas-fired Power Stations

Baroness Bennett of Manor Castle Excerpts

Thursday 14th March 2024 Lords Chamber

[Lord Callanan (Con)]

I thank my noble friend for his question. He is, of course, absolutely right, and his extensive knowledge of the power and energy system, based on his previous career, is well respected in this House. I can tell him that we are rolling out CCUS at pace. We have allocated £20 billion for support for CCUS clusters. We are progressing our two initial track 1 clusters: HyNet and the East Coast Cluster. We are in final negotiations with the transport storage systems and the emitter projects, some of which are gas power stations, within those cluster projects.

We again intend to be European and world leaders in CCUS. We have massive storage potential in the seas surrounding us; they have powered this country for many years and will help us to store emissions in the future as well. It is something that could even become a net revenue earner for the UK. We are indeed fully committed to that.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the House of Lords Science and Technology Committee yesterday released a timely report, which I am sure the Minister is aware of, on long-duration energy storage. It stresses the importance of that, rather than relying on expensive gas and the deeply uncertain technology of carbon capture and storage. The report points out that the Government have said that they plan to have enough storage to balance the system and that the cap and floor mechanism has worked very well with interconnectors to deliver that. A key point of the report is that the Government have not set a minimum target for long-duration energy storage. Will the Government now set a target for this clearly preferable alternative for long-duration storage?

[Lord Callanan (Con)]

My Lords, the essential misunderstanding of the energy system from the noble Baroness continues apace. The answer to the noble Baroness’s question is that we need both. We need long-duration energy storage, long-term battery storage, pumped storage and long-term hydrogen energy storage—all of which we are progressing. We have the most ambitious plans in Europe in all those areas. However, all independent forecasters who have looked at this, including the Climate Change Committee, agree that, in addition to that, we may need gas-fired generation, of relatively short duration and maybe only 1% or 2%—obviously, the Greens would prefer the lights to go out in their yurts before the rest of us progress in an advanced industrial society. This is essential contingency planning, and we make no excuses whatever for saying that the energy security of the UK is our priority. We can do that in a net-zero scenario, and we will progress that.

Civil Nuclear Road Map

Baroness Bennett of Manor Castle Excerpts

Monday 15th January 2024 Lords Chamber

[Lord Callanan (Con)]

The noble and learned Lord is absolutely right: Scotland has an excellent long tradition of support for nuclear power. Sadly, that is not shared by the existing Scottish Government. We would like to have discussions with them on this, but they seem to have set their face against nuclear power. Of course, some of the planning powers are devolved, so they are entitled to take that decision. However, speaking on behalf of their friends in England and Wales, I am sure we will be very happy to help them out with power in the future, with the many cross-border connections.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I begin by welcoming the Government’s launch of the consultation on amending the contract for difference bidding, which will potentially allow repowering of onshore wind to be included within it. Of course, that could potentially see us finally getting new onshore wind, which we have not seen for so long—the cheap, affordable facilities that can be spread around the country. That can be done very quickly, if the Government sort that process out. But as the noble Lord, Lord Lennie, said, we are talking about the suggestion of small modular reactors and the final investment decision in 2029. The Minister in the other place said that we would not be looking at them until well into the 2030s. Are the Government not simply being distracted from the solution to our energy issues and energy security, which is renewables?

Given that the last estimate I have seen for the nuclear clean-up of our old nuclear is a cost of £260 billion—an estimate made by Professor Stephen Thomas at the University of Greenwich—and that the Nuclear Decommissioning Authority has just been warning that ageing equipment at Sellafield means that there is a serious risk of a fire there, should we not clean up the old mess before we risk creating new ones? Will the Government make sure that there is no public cost in any future clean-up, if indeed we see any new nuclear?

[Lord Callanan (Con)]

Yet again on this subject, the noble Baroness sets up a false choice between either nuclear or renewables. We are in favour of doing both; they both have a contribution to make to our diverse energy system. I bow to no one in my support of renewables. I think that wind and solar are great, and they are relatively cheap compared with fossil fuel sources; they will make a massive contribution to our energy supply in future. But they are intermittent, so it is important to have baseload capacity as well. You cannot run your whole energy system on wind and solar, however much the Greens would like to tell us you can. We need other sources as well—we need diversity, we need storage, and we need nuclear. We can do both.

Climate Change: Aims for COP 28

Baroness Bennett of Manor Castle Excerpts

Tuesday 28th November 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes an important point. We helped to secure an agreement on the Kunming-Montreal global biodiversity framework to halt and reverse biodiversity loss by 2030, and the agreement on marine biodiversity in areas beyond national jurisdiction. We were pleased to support that during our COP presidency and want to continue doing so.

[Baroness Bennett of Manor Castle (GP)]

My Lords, a big part of the UK’s COP 26 presidency during the Glasgow conference was the global methane pledge: the focus on methane and the fact that in the next 10 years, slashing our methane emissions will be crucial if we are to stay below the 1.5 degrees above pre-industrial levels. What progress do the Government expect to see on methane in COP 28? Will the Government be taking further progress in the UK, particularly on methane flaring from oil and gas installations, to the COP discussions?

[Lord Callanan (Con)]

The noble Baroness is right that action on methane is important. It is one of the focuses for discussion that we will take forward. I have answered questions on flaring before in this House. She will remember that we are taking action to eliminate flaring completely by the end of the decade. It has reduced considerably in recent years, but clearly we need to go further.

--- Later in debate ---

[Lord Callanan (Con)]

Flaring and venting is something to be avoided by all member states. The noble Baroness is right that we do import a lot of liquid natural gas. Of course, if she and others were not so keen to halt the UK’s extraction of oil and gas, we would not need to import so much from the UAE. So perhaps she might want to indulge in a little bit of introspection.

[Baroness Bennett of Manor Castle (GP)]

My Lords, since there is space, an issue that is fast rising up the climate agenda is private jet flights, which of course have enormous levels of carbon emissions per passenger. Are the Government looking to examine the impact of those private jet flights, and indeed to take any action about flights into the UK?

[Lord Callanan (Con)]

The noble Baroness asks the question on the day that the first international flight with sustainable aviation fuel was launched by, I think, Virgin Atlantic, across to the US. Obviously, that is only one and there is a lot of progress to be made, but sustainable aviation fuel does offer one of a range of potential solutions. I know that the noble Baroness would just ban everything, but that is not practical in the real world. We want to show people that of course we can make progress on progressing the agenda against climate change, but not necessarily by banning everything they want to do.

Biomass Strategy 2023: Cross Sectoral Sustainability Framework

Baroness Bennett of Manor Castle Excerpts

Wednesday 15th November 2023 Lords Chamber

[Lord Callanan (Con)]

I suppose, if we want to get into a debate about that, they absorb CO₂ when they are growing. If they are felled and just rot on the ground they emit CO₂, but also when they are burned.

[Baroness Bennett of Manor Castle (GP)]

Following on from that, does the Minister agree, particularly thinking about not just the products from Drax but local production, there is an alternative use of biomass, which can be put back into the soil to increase soil carbon and soil health? There is a real benefit there that needs to be considered when thinking about whether it is better to use that carbon or simply burn it.

[Lord Callanan (Con)]

I shall ruin the noble Baroness’s social media portfolio and agree with her this once: of course, we need to look at these things in the round and there are lots of alternative uses. It is the whole basis of the biomass strategy, because there are different uses that we can put it to and we need to look at what is most effective both for the environment and for UK power production.

Energy Bill [HL]

Baroness Bennett of Manor Castle Excerpts

Consideration of Commons amendments
Tuesday 24th October 2023 Lords Chamber

[Baroness Boycott (CB)]

I thank the Minister very much for his sort of co-operation through the passage of the Bill. It is hugely important. It was introduced about 16 months ago, and I do not wish to delay it any further. But I speak with great regret that the Government find themselves unable to agree to my simple and incredibly uncontroversial amendment, which just seeks to clarify the Government’s commitment to consult on the barriers that community energy schemes face. I am very pleased that the Minister went to visit one that was working, but I assure him that a lot are not.

While I welcome the steps the Government have taken to re-establish the community energy fund—for instance, reporting to Parliament and consulting—it is important to put a timescale on these plans; 18 months is fair and reasonable. Without a timescale there is a risk that this will not happen. It has been demonstrated that this issue has widespread support across both Houses. When we have something that we agree on, we ought to just get on with it and do it. I fear that this small but significant issue will get drowned out in next year’s general election. I would appreciate reassurance from the Minister that this is a needless worry and that the Government are committed.

I would just like to get some clarity on a couple of points. What will be the basis of this annual report to Parliament? Is it simply to report on the progress of projects, or will it address the challenges that we face and the best route to sort them out? My amendment also sought to ensure that, should any consultation find that there are barriers—new barriers, for instance—the Government will commit to taking steps to address these. Being candid, we know that there are barriers, and I appreciate the argument that you should not legislate for the unknown, but I am simply trying to get an assurance that they would plan to lift barriers that we know are there—including ones that we do not know.

To return to the issue of the consultation, we have rehearsed what issues need to be resolved; thanks to the Bill committee in the other place, there are many views on record. I do not believe that much is likely to change in the next year. While I agree that we should follow due process here, it must not be used as a reason for delay. I urge the Minister to open this consultation ASAP, so that we can get this ball rolling.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise very briefly and with great pleasure following the noble Baroness, Lady Boycott, who has done such an enormous amount of work on this issue—I pay tribute to that.

I was the person who started these amendments on their way back in December 2022, after we started work on this Bill last July. A consultation is something but what we really need is action, so I have a simple question for the Minister. As he said, this consultation has already started this month; if the Government see or identify through that consultation some simple, easy-to-remove barriers, will they act on them immediately rather than waiting for the end of the formal process? Surely, if action can be taken then projects, such as the one in Kensington to which the Minister referred, can go forward.

[Lord Teverson (LD)]

My Lords, I too congratulate the noble Baroness, Lady Boycott, on her persistence in this area. One of the strong messages that came out between Committee and Report in this House was the slow progress, and lack of progress, on community schemes. I very much hope that this consultation will reverse that trend. It seems slightly ironic, though typical, that the objection from the Commons is on there being a timetable, whereas we all know that for anything to happen, you need a timetable to focus.

On these Benches we are now keen to get this Bill on the statute book and that it becomes an Act. It has been delayed a number of times, mainly from the government side, as it has progressed through both Houses. There are a lot of important parts of this Bill that need to happen. I very much hope that the future systems operator will be quickly nominated and can move into action, so that a number of the strategic bottlenecks that we have in our energy sector can be swept away and solved. Again, I thank the noble Baroness for her persistence in this area, and I hope that consultation will move to action very quickly.

Climate Financing

Baroness Bennett of Manor Castle Excerpts

Tuesday 17th October 2023 Lords Chamber

[Lord Callanan (Con)]

I do not agree with the noble Lord. We have an extremely good record on energy efficiency. To take one of his examples, we have improved the number of properties that are EPC band C or above from 14% when we came into office up to nearly 50% now. Obviously, we need to make a lot more progress. We are spending £6.5 billion in this Parliament on energy efficiency and have already committed another £6 billion from 2025. We are doing extremely well in this area.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Minister may be aware that last week, coinciding with the IMF meeting on reform priorities for tackling debt, groups including Extinction Rebellion, Debt for Climate and Debt Justice were outside the Bank of England highlighting the $7.9 trillion in climate reparations that are due to the global south from the global north. He may also be aware that debt is preventing climate action in the global south: five times the amount of money is going on debt repayments than is going on climate action. Are the Government at the forefront of leading on action to deal with this debt crisis in the global south?

[Lord Callanan (Con)]

We are proud of our record on helping the global south to relieve its debts. We have one of the largest programmes of international aid alongside our programmes on international climate finance. Of course, there is always much to be done, but we can be very proud of the record that this country maintains.

Net Zero (Economic Affairs Committee Report)

Baroness Bennett of Manor Castle Excerpts

Monday 16th October 2023 Lords Chamber

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a pleasure to take part in this debate. I listened particularly carefully to the speech of the noble Lord, Lord Frost, who represents a small but very vocal segment of the debate covered by this report and the broader net-zero issue. I would like to correct one statement the noble Lord made about the Royal Society report. It does not assume a halving of electricity demand. I will quote a paragraph from the report:

“The demand for electricity in Great Britain in 2050 is taken to be 570 TWh/year in this briefing, roughly twice current annual demand”.


I thank the committee for the report and the noble Baroness, Lady Kramer, for her excellent introduction. I will make three points, pairing the 86 pages of the report and the Government’s 28-page official response—I am not counting the letter from the right honourable Mr Rees-Mogg, who was briefly relevant as the Secretary of State—because, despite the change in governing regime, it seems that there has been disturbingly little change in government energy policy.

The noble Baroness, Lady Kramer, focused on paragraph 121 of the Economic Affairs Committee’s report, and I make no apologies for focusing on it as well, because it is absolutely crucial. It quotes Dr Fatih Birol, the executive director of the International Energy Agency:

“Nobody should imagine that Russia’s invasion can justify a wave of new large-scale fossil fuel infrastructure in a world that wants to limit global warming to 1.5°C”.


But in the Government’s written response, as in their subsequent response, there is reference to launching a

“new oil and gas licensing round”,

which is exactly what they have gone ahead and done. You might think that they have not read the report at all. The noble Lord preceding me referred to stranded assets. I point out that the Committee on Climate Change estimates that new oil and gas licences take, on average, 28 years to begin producing. We are talking at a time when we clearly cannot use any significant amounts of oil and gas.

My second point is on the committee’s recommendation that the Government publish an “energy demand reduction strategy”, focusing particularly on home energy efficiency. This is just one of the many disaster areas of energy policy. It is worth noting that insulation rates in homes today are well below where they were when David Cameron, as Prime Minister, decided to “cut the green crap”. Listening to the Prime Minister’s comments at the recent Tory party conference, you might have thought that, given the committee’s report’s focus on the need for green skills—these are often debated in your Lordships’ House—they might have been a focus of Tory education policy. So can the Minister say how the proposed new British baccalaureate, the major education policy announcement, fits with the green skills agenda?

Thirdly, on carbon pricing, the committee calls for the provision of

“clarity to investors and … incentives to fund projects necessary for the transition”.

The official government response here has since been overtaken by events. We have recently seen a sharp decline in the carbon price, attributable to the Government’s decision to release 53.5 million additional allowances from a reserve pot to the market between 2024 and 2027. That means that emissions prices have fallen to less than half of the EU equivalent, when they used to be more or less at parity.

I credit the Financial Times for noting the financial and economic impact of this. It has left British exporters facing hundreds of millions of pounds in EU carbon border taxes within the next decade. That means that money that would have come to the British Treasury will now go to the EU; are the Government happy about that?

Climate Change Policies

Baroness Bennett of Manor Castle Excerpts

Wednesday 20th September 2023 Lords Chamber

[Lord Framlingham (Con)]

My Lords—

[Baroness Bennett of Manor Castle (GP)]

My Lords—

[Baroness Williams of Trafford (Con)]

My Lords, we will hear from the noble Green lady and then from my noble friend.

--- Later in debate ---

[Baroness Bennett of Manor Castle (GP)]

My Lords, in responding to the noble Baroness, Lady Hayman, and a number of others, the Minister has come out with a list of the Government’s claimed achievements. He has not mentioned once the issues of home insulation and energy efficiency, on which the Government’s record is disastrous. As the noble Baroness, Lady Hayman, said, this means that people are in cold, impossible-to-heat and unhealthy homes. Can the Minister reassure me that we are not going to see back-pedalling this afternoon on home insulation and energy efficiency?

[Lord Callanan (Con)]

It is always a pleasure to hear from the “noble Green lady”, even though she sounds increasingly red sometimes. I am very happy to talk about our record on home insulation. In 2010, under Labour, 14% of homes had an EPC rating of C or above. It is now almost 50%. Clearly, we need to go further, which is why we are investing £6.5 billion over this Parliament on home upgrade retrofit measures. The Treasury has already committed £6 billion from 2025 onwards—the noble Baroness shakes her head; she should listen to the facts. Last week, I was pleased to announce the Great British insulation scheme— £1 billion over three years. Even if the noble Baroness wishes to, she can apply for it online as we speak.

Energy Bill [HL]

Baroness Bennett of Manor Castle Excerpts

Consideration of Commons amendments
Tuesday 12th September 2023 Lords Chamber

I turn to the amendments related to devolution. I am pleased to update the House that the Government have reached an agreement with the Scottish Government to amend the Bill to secure their support for a legislative consent Motion in the Scottish Parliament. This comprehensive set of amendments strengthens the Bill’s consultation provisions and requires the Secretary of State to seek the consent of devolved Ministers before exercising certain powers under Clauses 2, 3 and 293. However, the Government are disappointed that the Welsh Government are currently not supporting a legislative consent Motion for the Bill in the Senedd, which is considering the Bill today. The Government have extended the amendments agreed with the Scottish Government to apply in Wales and Northern Ireland, where appropriate and in good faith. This demonstrates our commitment to continue to work closely with all devolved Governments. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I will speak to Amendment 165A in my name and briefly comment on Amendment 272A in the name of the noble Lord, Lord Teverson, and Amendment 274A in the name of the noble Baroness, Lady Boycott, both of which have the strongest possible Green support.

It is 2023 and we are in a climate emergency. We cannot consider new coal. I am afraid the Minister’s brandishing of heritage railways does not hack it; it is a tiny usage, much as I have no objection to heritage railways. For steel and cement, other nations are moving very quickly away from using coal while we are stuck in the starting gate. On the community energy amendment from the noble Baroness, Lady Boycott, I had the great pleasure formally to move it on Report and we saw hugely strong support not just in your Lordships’ House but all around the country. Tomorrow we will debate the Levelling-up and Regeneration Bill. This is a way to allow communities to take control of their energy supplies and provide the framework to set free huge opportunities up and down the land. It is a no-brainer and I urge your Lordships’ House to vote for both amendments.

Moving chiefly to my Amendment 165A, it is worth revisiting the history of the Bill. Those with a very long memory might think back to 19 July 2022, when it had its Second Reading in your Lordships’ House. That was three Prime Ministers back and I really cannot count how many energy policies we have had from the Government since then. We might be in traditional ping-pong now, but the Government’s positions on so many of the issues in the Energy Bill have bounced back and forward so fast within the Government that it is enough to make any observer dizzy.

One of the last-minute additions was this clause on so-called sustainable aviation fuel. If noble Lords look back to the other place, they will see that the level of debate that occurred around this very significant amendment was really very scant. That is why I have tabled this amendment now, to provide a real opportunity for your Lordships’ House to at least explore the issues and bring out some of the Government’s thinking. I hope we will also hear significant explanations from the other Front Benches on what their thinking is on so-called sustainable aviation fuel. It is often linked with and spoken about as though it is in the same stable as renewable energy, but the fact is, of course, that almost no flights now are powered by sustainable fuel because of supply and cost. Sustainable fuel can be three times as expensive and even for United, the largest consumer of sustainable fuels in the US, last year it comprised less than 1% of its total fuel consumption.

The fact is that so-called sustainable aviation fuels are not a “get out of the limits of this finite planet free card” for the aviation sector. The idea that aviation can keep expanding, or that it should—I shall be coming back to this tomorrow in an amendment to the levelling-up Bill—is, I would say, for the birds: although of course the birds cannot afford the inevitable environmental damage that burning stuff, whatever the stuff is, inflicts.

I can go through some statistics on this. Bain & Company in June published a report assessing the most likely pathways to net zero by 2050 for the aviation sector. The headline was that it can eliminate 70% of emissions from aircraft operations without using electric or hydrogen at scale. Just 5% of emissions reductions come from hydrogen and electric planes in the Bain & Company scenario; the rest is engine efficiency, aircraft efficiency, optimising routes and scaling up so-called sustainable aviation fuels. A 70% reduction is significant, but the Science Based Targets initiative net-zero standard requires a 90% reduction in CO₂ across all scopes by 2050 at the very latest. This report suggests that so-called sustainable aviation fuel can meet a maximum of 60% of global jet fuel demand in 2050 in the best-case scenario.

I think it is worth reflecting very briefly, looking to debates in the other place, that we saw both Labour and Tory MPs going further than this amendment does and calling for government subsidies for the sector. We have to set this in the context of the fact that tax exemptions last year saw the Treasury lose £4.7 billion from the aviation sector: that is calculated by Transport & Environment. That could pay for—gosh—more than 40 new hospitals: does that sound familiar? Or it could cover the cost 10 times over of additional medical staff. It is the equivalent of 1% of the income taxes collected by the Government last year. That is the context.

To come to the detail, my amendment simply addresses subsection (6). It seeks to bring in some systems thinking: an approach that does not look simply at the climate emergency because, as huge and pressing as that is, we are actually in a state where we have exceeded so many other planetary boundaries and we face so many other crises and threats that it is absolutely critical that the Government think in a systemic kind of way. If your Lordships want to think about where things went horribly wrong when we did not do that, Dieselgate is the obvious example. That was a case of corruption and fraud, but behind it was the problem of looking simply at the carbon emissions from diesel and not considering all the other environmental effects.

The current government amendment says that the Secretary of State should look at the contribution to the reduction in greenhouse gases. My amendment keeps that but adds the impact on the food system. Your Lordships’ House often debates the fact that food security is a huge and pressing issue of our age, and if we take land out of use for growing food and turn it to growing stock for aviation fuels, we are creating a potentially huge problem for ourselves.

Proposed new subsection (6)(c) says,

“not negatively impact human, animal or plant health”.

That perhaps comes back to the diesel reference, if we think particularly about human health. Burning stuff produces pollutants—that is just practical reality. However, we must also think about plant health. We often talk about using agricultural waste for these sustainable aviation fuels. That agricultural waste could be going back into the soil to contribute to soil and plant health, bringing us to a situation where we are not depleting our soils and then topping them up with artificial fertilisers, particularly nitrogen produced by the incredibly energy-intensive Haber-Bosch process. This is a systems-thinking, joined-up approach.

Finally, my amendment says,

“not negatively impact the availability of feedstocks for other industrial processes”.

The Minister referred to steel and cement, but all kinds of different, innovative steps are being taken to use all kinds of different materials to replace current fossil fuel production. We need to think about where what we call waste could best go.

I am aware of the desire to move this debate on, so I will not speak much longer, but I have just two final reflections. First, we hear a great deal of talk about waste cooking oil in terms of so-called sustainable fuels. Well, I am afraid that your local chippy is not going to take your private jet flight very far at all—let us be realistic about that. Secondly, my mother’s favourite movie was “The Sound of Music”, in which there is a song that goes:

“Nothing comes from nothing,


Nothing ever could”.

All energy use—all fuel—has environmental and social costs associated with its production and use. We have to think in that systemic, holistic way when we think about how we fuel our sustainable future.

[Baroness Blake of Leeds (Lab)]

My Lords, I will speak to Amendment 187A in my name. The purpose of moving this amendment is straightforward: we have an opportunity to put in place an enforceable plan of action that will deliver the often-mentioned aspirations to deliver energy-efficient homes and properties. I was sure that the Minister would repeat the line that this is unnecessary—and so he did. But I am afraid that the facts tell a different story. The new clause would enable a plan to be in place, working to clear targets to reduce gas supply in homes by 25% and a 10-year programme to retrofit 19 million homes, costed at £6 billion, with local authority and a community base to deliver.

The facts are these. Since 2010, progress to reduce emissions has stalled. The UK is still heavily reliant on fossil fuels for home heating and industry, and has the least energy-efficient housing stock in Europe, according to the IMF. Limited progress on energy-efficiency measures has been made worse by poor public information campaigns and the lack of a long-term plan with clear targets, clear technical explanations and little evidence of a financial and structural plan to go alongside. I do not wish to repeat all the comments that have been made throughout the debates on this Bill. However, we have to acknowledge a lack of grip, of urgency, and of serious explanation of the benefits of determined action.

In terms of tackling emissions and meeting legally binding decarbonisation targets, reducing the need for heat must be a top priority. Benefits include: a reduction in the cost of heating homes—therefore, a very positive help to those suffering from the cost of living crisis; a huge benefit to the health of the population by achieving affordable warmth, potentially saving the NHS £500 million a year; and a major contribution to energy security by reducing our dependence on fossil fuels.

These come on top of the potential of delivering economic benefits, providing skilled jobs and high-wage opportunities. Retrofitting poorly performing homes alone could support 190,000 jobs across all regions. Given the strength of opinion on energy efficiency in so many analyses of progress, I am minded to test the opinion of the House.

--- Later in debate ---

[Lord Callanan (Con)]

My Lords, with the leave of the House I will speak also to the other amendments in this group, which concern new policy that was introduced in the other place. I turn first to the amendments on hydrogen transport and storage infrastructure. These amendments will enable business models to be brought forward to provide investors with the long-term revenue certainty that they will need to establish and scale up the deployment of hydrogen transport and storage infrastructure. I am sure this will be of interest to the noble Lord, Lord Whitty, and the noble Baroness, Lady Bennett, who spoke about this earlier in the Bill’s passage.

The development of this infrastructure represents the critical next step in the growth of the hydrogen economy to support the Government’s ambition to have up to 10 gigawatts of low-carbon hydrogen production capacity by 2030. The business models are intended to help overcome the key barriers to investment in this infrastructure, such as high capital costs, lengthy development lead times and uncertain financial investment returns in what is a very nascent market.

Next, on carbon capture storage information and samples, the amendments support the role of the North Sea Transition Authority—NSTA—as the regulator of carbon dioxide storage in the UK continental shelf. They achieve this by ensuring that it has the relevant powers to access and share information and samples collected through relevant carbon-storage activities. This reflects similar powers already held by the NSTA for the petroleum industry and will enhance knowledge sharing across the carbon capture, usage and storage industry. It will support innovation for the effective utilisation of the UK’s geological storage potential and help encourage private investment in the UK’s growing green economy.

The Government have also tabled amendments relating to Great British Nuclear. These amendments will enable GBN to support government in rebuilding our civil nuclear industry and facilitating the delivery of nuclear projects to achieve our net-zero ambitions. GBN will play a critical role in strengthening the UK’s energy security. By legislating for GBN, we are working to undo decades of underinvestment and inspire trust in the UK civil nuclear industry, restoring the global leadership that the UK used to have in civil nuclear power.

I move on to discuss the amendments to provide relief on network charging for energy-intensive industries. High industrial electricity prices are one of the key barriers that inhibit the most carbon-intensive sectors from adopting greener technology. The measures deliver on a fundamental element of the British industry supercharger set out in February. These amendments will give the Government the powers to deliver a scheme that will provide relief on electricity network charges for Britain’s strategic energy-intensive industries. It will bring electricity prices for these UK businesses in line with some of their global competitors, thereby helping to preserve thousands of jobs and investment and enabling greater electrification of industrial processes, removing one of the major barriers to decarbonisation. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise to speak to Amendments 259A to 271A inclusive; your Lordships will be pleased to know that I do not intend to speak to each one individually. For technical reasons these had to be split up but, essentially, this is a chance for your Lordships’ House to reconsider again the whole Great British Nuclear introduction that the Minister just outlined.

This debate follows on in many ways from that secured for last Thursday by the noble Lord, Lord Howell of Guildford, about nuclear power. I will not revisit all the many issues raised there, although I note that the noble Lord, Lord Howell, expressed rightful and strong scepticism about the progress of both Hinkley Point C and Sizewell C, on cost and other factors. There is also the continuing cost of the clean-up of dinosaur technology from the last century of £260 billion, and issues of waste that we have still not tackled.

I said that I will not go through these amendments one by one, but I do want to speak to Amendment 262A, which disagrees with the financial assistance. In our discussion yesterday on the failure of the offshore wind contract for difference bidding process, the Minister said my suggestion that we should look at a higher strike price for offshore wind was not thinking about the bill payer. I do not know how many Members of your Lordships’ House have looked closely at the detail of government Amendment 262, but it is utterly an open slather:

“The Secretary of State may provide financial assistance … to facilitate the design, construction, commissioning and operation of nuclear energy generation”.


Proposed new subsection (2) says that this assistance

“may be provided … by way of grant, loan, guarantee or indemnity … the acquisition of shares … the acquisition of … assets … a contract, or … by incurring expenditure for the benefit of the person assisted”.

Proposed new subsection (3) says that the assistance may be considered “without interest”—it goes on and on. I will not go through the whole lot, but basically this allows the Secretary of State the open slather to do whatever they like to fund nuclear—and one thing we know about nuclear energy generation is that it costs, and the cost just keeps going up.

I am afraid there is currently a great deal of speculation. Many people accept that, essentially, Hinkley Point C and Sizewell C are ongoing disasters. We have this wonderful new idea of small-scale nuclear plants scattered all over the countryside, as a noble Lord suggested in last Thursday’s debate. Really, my Lords, how realistic is this? We are talking about something that simply does not scale down.

I am aware of the desire of your Lordships’ House to move on to votes, but I want to quote one person who perhaps has a different perspective from mine. Markus Krebber, the chief executive of RWE, suggests that investors should not and will not back nuclear plants. This comes back to the issue of finance. If there will not be private money coming in, we are talking about massive sums of government money. He told the Australian Financial Review:

“I would have a big question mark whether building new ones is really a good strategy, because if you look at the cost overruns and the delays, I think purely a renewables-based energy system including the necessary storage is probably in most of the regions already today cheaper than new nuclear”.


I think that is unarguable.

I will briefly address the issue of Sizewell C. We are talking as Japanese fishermen around the Fukushima nuclear plant suffer massive economic loss as a result of the dumping of wastewater into the sea there. In Suffolk we will see the local economy facing massive loss if Sizewell C goes ahead. Studies by the Suffolk Coast destination management organisation show that visitors would stay away, losing the tourism industry up to £40 million a year and an estimated 400 jobs.

If we look at the environmental impacts of the proposed Sizewell C, we can see that it is opposed by both the RSPB and the Suffolk Wildlife Trust. The site is surrounded by protected wildlife habitats. When it comes to water, the Planning Inspectorate was unable to recommend that Sizewell C be granted planning consent due to the lack of an identified long-term supply of potable water. There is a huge problem with access to the site. It will require a 60-metre cut-off wall so that it can be dewatered and existing soil can be swapped out for more suitable material and huge, as yet undesigned, sea defences. Looking at the state of our climate now, we are seeing significant runaway with very serious potential risks in the impact on our sea levels. I note that Cefas said that

“it is generally only possible to predict detailed changes to the coastline over the next 10 years”.

I have focused a little on Sizewell C and the deep uncertainties and concern because of the point about money. Under the government amendment, we are letting a Government go ahead and do whatever they like and spend whatever they like on a project that is so deeply problematic.

Offshore Wind

Baroness Bennett of Manor Castle Excerpts

Monday 11th September 2023 Lords Chamber

Asked by

[Baroness Bennett of Manor Castle]

To ask His Majesty’s Government what steps they plan to take to ensure the continued development of the offshore wind industry following the failure to attract bids in the latest Contracts for Difference round.

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, the Government are disappointed that no offshore or floating offshore wind projects secured contracts for difference in the most recent allocation round. The results provide valuable learning for subsequent auctions. Work has already started on allocation round 6, incorporating the results of the recent round, and we look forward to a strong pipeline of technologies participating. The Government remain fully committed to our target of decarbonising the power system by 2035 and to our ambitions for 50 gigawatts of offshore wind, including up to 5 gigawatts of floating wind.

[Baroness Bennett of Manor Castle (GP)]

I thank the Minister for his Answer, but can we really wait? Look at what has happened in other countries: for example, Germany had a similar experience in December then, in the subsequent two quarters, lifted its price cap and increased its number of bids by several times. In the US, Massachusetts had a failure and New York is now considering petitions to offer a higher price. This is the low-cost, low-carbon alternative: the industry is now suggesting that there is a 24-gigawatt gap for the 2030 target. Surely the Government should be taking immediate action in the shorter term to fix this problem of their own creation, given that this was widely predicted to happen before the contracts closed.

[Lord Callanan (Con)]

I am happy to hear the noble Baroness be so cavalier with bill payers’ funds; she is, in effect, talking about increasing the strike price. It is always difficult for the Government to strike the right balance: we want to get the best value possible for bill payers, as opposed to providing sufficient revenue for the companies to build. I obviously know which side the noble Baroness is on but I want to be on the side of the bill payer. We have already secured the largest offshore wind sector in Europe by far; she quotes the example of Germany, which should be very jealous of the amount of offshore wind capacity that we have. We secured almost 7 gigawatts in the last allocation round and, in this round, secured 91 projects with other technologies. There is a viable long-term pipeline of about 77 gigawatts of wind available to this Government and we will take advantage of it, but we will make sure that we do it at the right price for consumers.