Energy Bill

Debate between Ed Davey and Brian H. Donohoe

Wednesday 19th December 2012 Commons Chamber

[Huw Irranca-Davies]

rose—

[Mr Brian H. Donohoe (Central Ayrshire) (Lab)]

rose—

[Mr Davey]

I want to make a little more progress, but before I do so I will give way to the hon. Member for Ogmore (Huw Irranca-Davies), because he tried to intervene earlier.

--- Later in debate ---

[Mr Davey]

My hon. Friend has great expertise in this area, and I entirely agree with what he says. Revenue certainty will reduce investment risk, and it should therefore also reduce the cost of financing—the cost of capital. That is far more important for low-carbon technologies than for fossil fuels, because so much of the cost of renewables and nuclear is the set-up capital cost. Our electricity market reform is, essentially, shaping a new low-carbon market, in order to stimulate the energy investment Britain needs.

[Mr Donohoe]

Does the Secretary of State agree that one way to overcome the problem of the deficit in energy generation would be if the nationalists were to allow new nuclear stations to be built north of the border? Does he agree with that as a way forward?

[Mr Davey]

The hon. Gentleman notes that the energy debate is an important part of the debate on independence for Scotland, but I would not want to cloud that debate by suggesting that there should be new nuclear power plants there. He will know that our new nuclear build proposals include three consortiums, none of which is proposing new nuclear build in Scotland. We have a long way to go before that question arises.