Clean Power 2030 Action Plan: Rural Communities

Lord Moynihan Excerpts

Wednesday 22nd April 2026 Lords Chamber

[Lord Moynihan (Con)]

My Lords, I declare my interests as chairman of Amey, Acteon and Buckthorn Partners, all of which are involved with the energy transition. I also congratulate the noble Lord, Lord Nagaraju, who spoke outstandingly well. We look forward to his contributions in future debates; he will be a very welcome Member of this House. I also echo what was said about my noble friend Lady McIntosh, whom I thank very much on behalf of the House for securing this debate. Many of the comments she made, not least about North Sea gas, are exceptionally important.

From our Benches, there can be no case for not developing our reserves to the full and instead looking to increase imports of LNG from Norway and the US, neither of which reinforces our security of supply. To take the example of Norwegian gas, Norwegian gas supplies will be reduced this summer. This is presented as a planned maintenance issue rather than a political decision, but we should not be deaf to the fact that there was a major political debate in Norway on restricting exports, and that would threaten our supplies from that country. Given the high level of dependence, with Norway providing 70% of UK gas imports in some periods, any reduction—even temporary—raises concerns about UK energy security.

The argument often used about developing the North Sea is the environmental impact. We are told by the Government that to encourage new oil exploration, appraisal and production in the North Sea will be an act of “climate vandalism”. Yet the average carbon intensity in the North Sea is 24 kilograms a barrel of oil equivalent; Victory is predicted to be 12 kilograms a barrel of oil equivalent; and Jackdaw, just eight. Norwegian gas through the pipeline is eight kilograms, but imported LNG from the States is 85 kilograms a barrel of oil equivalent in terms of carbon intensity. Surely, that being a major multiple on delivering our own gas from the North Sea is a strong environmental argument to develop our own reserves.

What the Government are saying, or, to be more accurate, what the Secretary of State at DESNZ is saying, which increasingly does not reflect Treasury good sense, is that because the price is set internationally, there is no benefit in maximising our own gas and oil production. Yet the more we develop our own reserves, the more we control our own prices. We need only to look at Henry Hub prices in North America to prove that point. The issue today is whether we are making the best use of our own gas, and obviously the answer is no, we are intent on not using our own gas.

Our energy policy is sequentially driving us to shut down the reserves in the UKCS, first by stopping new licence rounds while allowing limited tie-backs; secondly, by imposing regulatory and environmental policies which deter investment; to which we add a burdensome windfall tax and create a hostile environment to new investment which seeks projects internationally in a highly competitive global market for every investment dollar. This is intellectual folly and I urge the Government to change course or to provide one well-argued reason why we should shut in future North Sea reserves.

The second point I want to raise as a result of this debate is on dependence on the grid. Delivering the Government’s ambitions for clean power would require

“rapid delivery of 80 network and enabling infrastructure projects”,

according to NESO, cited in the Clean Power 2030 Action Plan. The Government said that, by 2030, around twice as many new electricity transmission networks would be needed compared to the number built in the past decade. Installing more renewables weakens the grid. The growth in intermittent renewable generation disrupts system frequency in two ways. Intermittent renewable generation delivers an output that is highly variable in time. Wind speeds are rarely constant, changing in both intensity and direction by the second, Similarly, cloud patterns can create significant instantaneous variations in solar output. Changes in either generation or demand can lead to changes in grid frequency, so highly variable generation patterns make maintaining a stable grid frequency more difficult.

Intermittent renewable generation is increasingly displacing conventional generation in the generation mix, reducing the amount of heavy rotating turbines on the grid and therefore the amount of inertia they provide. The National Grid said:

“Operating the system with low inertia will continue to represent a key operational challenge into the future and we will need to ensure we improve our understanding of the challenges this will bring”.


Is the Minister confident, therefore, that there will be no blackouts during this period of government? If so, on what technical assumptions does he reach that decision?