Monday 16th May 2022

(1 year, 11 months ago)

Lords Chamber
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Baroness Whitaker Portrait Baroness Whitaker (Lab)
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My Lords, it is an honour to follow the noble Lord, Lord Howell of Guildford. As a member of Peers for the Planet, I will speak on a less-discussed aspect of renewable energy. Perhaps I should also declare that one of my sons writes on energy matters.

I would first, however, like to endorse greater use of onshore wind turbines, as promulgated in the Bill proposed by the noble Baroness, Lady Hayman, sadly not appreciated by the Government, for reasons which appear to further narrow interests rather than the imperative of a carbon-neutral economy. But I am encouraged by the promise of a Bill to deliver the transition to cheaper, cleaner and more secure energy, as also commented on by the right reverend Prelate the Bishop of St Edmundsbury in his perceptive and lively maiden speech.

Our great asset in the field of renewable energy is the sea. We have sea all round our island, and its power is more predictable and constant than wind or solar outputs. We have available two dynamic forces: the tides and the waves. Tidal energy has often been discussed in your Lordships’ House, but why, since government policy to dispense with fossil fuel was established in the Climate Change Act 2008, have Her Majesty’s Government been so slow in furthering tidal power? Can the Minister account for that? Has pressure by the fossil fuel companies played a part?

Wave energy—my main theme—risks the same dilatory attitude from the Government. The northern coast of the UK is one of the best sites for development, because the westerlies blow in temperate zones so strongly in winter and make the waves more turbulent where the North Sea meets the Atlantic Ocean. The potential of waves was being discussed when I had responsibility for gas safety in the Health and Safety Executive as long ago as the 1980s. Then, technical problems deterred pursuit, but that was before the climate emergency was generally understood, with enough traction to influence policy.

Although the first patent for extracting energy from waves was taken out in France in 1799, and experiments in the use of wave power have been in play since 1890, the first commercial wave power device in the UK was not installed until 2000, on the coast of Islay in Scotland, and connected to the national grid. A marine energy test facility was established in 2003 in Orkney, on the edge of the Atlantic Ocean, to kickstart development of wave and tide energy technology. I understand three developers are using it. Research and development is being carried out in the universities of Edinburgh, Bristol and Lancaster, in the Norwegian University of Science and Technology, in the United States Naval Academy and in MIT.

It has been established that, while solar panels with efficiencies above 10% are considered viable, wave energy converters can have efficiencies of over 50%. The power density of waves is very large indeed. Wave energy can be taken directly into electricity-producing machinery and used to power adjacent generators and power plants. Ministers have repeatedly said that we need baseload power for when the wind does not blow and the sun does not shine. This is where waves come in. I ask the Minister: what progress have the Government made?

Of course, there are technical and environmental issues to deal with—infrastructure and offshore grid connections. Attention needs to be paid to the possible effects on marine ecology as well as on fishing and navigation. However, huge strides have been made and much has already been learned from projects over the years. In the USA, Australia, Italy, China, Denmark, Portugal, Sweden and Gibraltar, development work is going on, but here in the UK there seems to be only some research and a small amount of installation. Our research funding is comparatively low.

The energy security strategy outlined in the other place on 19 April and later here made no mention whatever of tidal or wave energy. Surely wave energy must be a greater part of the mix of sources for us. What investment have her Majesty’s Government made so far in developing market-ready wave energy devices, and how will they encourage this most promising avenue of renewable energy? Can the Minister assure us that a boost for wave power could form part of the energy security Bill promised in the Queen’s Speech?

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Lord Callanan Portrait Lord Callanan (Con)
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We hope that it will do. Of course the market is in turmoil at the moment, but the noble Lord rightly pointed out that we have some very advanced LNG offloading facilities in the UK. We can play our part in helping parts of the EU that do not have LNG terminals, through the interconnection pipeline. But it is an international market; there is reduced supply and, of course, we all know that the price is at sky-high levels at the moment.

However, the current volatility in global energy prices and security concerns only underscores the importance of building strong home-grown renewable sectors and reducing our reliance on all fossil fuels. The ultimate way to deal with the high gas price is of course to use less of it. That is why this Government are so excited about hydrogen, which the noble Lord, Lord Bilimoria, and others asked about. My noble friend Lord Liverpool and the noble Lord, Lord Grantchester, asked specifically about our plans for so-called green hydrogen. I am pleased to tell the House that we are introducing a comprehensive package of measures to get these projects off the ground and help this outstanding new technology to thrive in the British marketplace. The global market for these technologies is for the taking, and we have the innovation and engineering expertise to be world leaders, just as we are becoming world leaders in EV battery technology.

I reassure my noble friend Lord Young that we have provided £30 million-worth of funding to support vehicle-to-everything projects, and we will provide a further £11.4 million of innovation funding. The noble Lord, Lord Birt, and my noble friend Lord Leicester raised an important point about electric vehicles—EVs. We recently announced our electric vehicle strategy, which sets out our vision and action plan for the rollout of effective vehicle charging infrastructure in the UK; I actually agree that there is much that we can do to improve that. Of course, electric vehicles will not take off unless the appropriate charging infrastructure is in place.

The noble Baronesses, Lady Whitaker and Lady Hayman, and my noble friend Lord Liverpool all spoke about the important subject of tidal power, and they are right in some respects. Along with copious wind, the UK is also blessed with strong tides. The Government’s position is that tidal power could well contribute to our energy mix, as we transition towards a carbon-neutral power sector. Indeed, the energy security strategy commits to aggressively exploring the potential of tidal power to contribute to our net-zero ambitions.

Of course, building these projects requires finance, which is why the Government are introducing the UK Infrastructure Bank. This also answers the question of the noble Baroness, Lady Kramer—

Baroness Whitaker Portrait Baroness Whitaker (Lab)
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I apologise, but my questions were about wave power as well as tide power. It would be very helpful if the noble Lord could tell us what the Government are doing to further wave power.

Lord Callanan Portrait Lord Callanan (Con)
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We are funding a number of innovative projects—from memory, I think that there was one in the Scottish islands—helping to explore the potential for wave as well as tidal power. I would be happy to write to the noble Baroness with more details on that.

I turn to the question of the noble Baroness, Lady Kramer, on the financial capacity of the infrastructure bank compared to the European Investment Bank, which used to invest around £5 billion a year in the UK. However, the EIB has a broader focus than the UK Infrastructure Bank, which is not a direct replacement for it.

The noble Viscount, Lord Chandos, asked why the Government chose to privatise the green finance bank. The bank had a targeted mandate to mobilise private finance, and, when it did so, it was sold. However, as I said, the UK Infrastructure Bank has a broader mandate, spanning both investment in green technologies and infrastructure projects needed to tackle climate change and support economic growth across the UK.

The noble Lord, Lord Redesdale—I do not see him in his place—asked me about carbon reporting. The UK’s economy-wide sustainability disclosure requirements regime will require businesses and investment products to report on their impact on the climate and the environment. Legislation introducing these changes will be brought forward when parliamentary time allows. I apologise; I can see the noble Lord now.

Moving on to the environment, we know that we live on one interconnected planet and that it is our duty to guard it for the next generation. I welcome my noble friend Lord Harlech’s contribution to the debate on rural issues. His father was a champion of the countryside, and I am glad that he continues to speak passionately about rural issues. I am sure that he, my noble friend Lord Smith and the noble Baroness, Lady Donaghy, have already acquainted themselves with the Levelling-up and Regeneration Bill introduced to the other place last week, and I encourage their contributions when that Bill makes its way to this House.

We also want to ensure that there is enough food for everyone, even as the climate changes. That is why we are positioning the country to become a world leader in precision breeding technologies such as genetic editing. I welcome the recognition from the noble Baroness, Lady Hayman, that this can be of huge benefit to the country.

Alongside this, leaving the EU has enabled us to improve our animal welfare standards. The Animal Welfare (Kept Animals) Bill delivers on three government manifesto commitments on animal welfare and is a high priority for the Government.

I reassure my noble friend Lady McIntosh that the Government are committed to securing free trade agreements that are tailored to British firms and the economy, and, of course, are not compromising our environmental, food and animal welfare standards. We are also working hand-in-hand with farmers on our plans for a renewed agricultural sector, which will transform the way we support farmers in the UK.

In conclusion, I thank all noble Lords for some excellent contributions. I apologise that, with almost 60 speakers, I was not able to address all the points made in the time I have available; in fact, I am already over my allotted time. However, we covered from financial services to farming, economic crime and energy security. The Queen’s Speech we have debated this evening will help to strengthen our country after a turbulent few years.