Oral Answers to Questions
Lindsay Hoyle Excerpts(1 year, 9 months ago)
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Mr Barros-Curtis
I thank the Secretary of State for that answer. Cantonian high school in my constituency of Cardiff West will be the first Cardiff school to be operationally net zero in line with Welsh Government standards, while the building work itself will feature a significant reduction in embodied carbon. Fairwater community campus will be a collection of highly energy-efficient buildings that are powered from renewable energy sources, helping Cardiff to deliver on its One Planet strategy, which outlines the city’s ambition to mitigate climate change. Will the Secretary of State join me in celebrating the development, and agree with me that this sort of collaborative vision is required to deliver on our net zero commitments both here and in Wales?
Mr Speaker
Order. Just to help everybody, the hon. Gentleman is meant to go through the Chair, but he was looking at the Secretary of State. As good looking as the Secretary of State is, it is easier if the hon. Gentleman speaks to me, and then I can pick up what he says.
Ed Miliband
Thank you very much, Mr Speaker—and you, too, if I may say so. [Laughter.]
I congratulate my hon. Friend, but particularly the Fairwater community campus on the work it is doing. I think he highlights a very important issue. By helping to decarbonise public buildings, including schools, we help not only to cut our carbon emissions, but, crucially, to save money for those schools that they can then use for frontline services.
Ed Miliband
The hon. Gentleman—and he knows this—will obviously want to stand up for what he sees as the best benefits for his constituency. I will be cautious about what I say, because there are proper procedures for planning decisions, including my quasi-judicial role. I will make this general point to the House, because I think this may well be a recurring theme during questions, but if we want to get off the dangerous exposure to international fossil fuel markets, which we were left with by the last Government, we need to build the grid. Every solar panel we put up, every wind turbine we put up and every piece of grid we build will help to deliver energy security for the British people.
Mark Garnier (Wyre Forest) (Con)
Not only is the Secretary of State a very good looking fellow, but we in this House all know that he is an incredibly hard-working and very open Minister, as indeed are his whole team. So I know that the reason he has not replied to my letter of 11 September is that he and his team will be working their socks off to get a full and open answer to all my questions. He has already made reference to one of my colleagues and said that he will produce “in due course” a full systems cost analysis. May I stress that it is incredibly important that we in this House have that systems cost analysis as soon as possible, so that not only can we analyse his ambitious plans for carbon-neutral targets, but we can also explain to our constituents exactly how much it will cost them in their bills to deliver his target?
Ed Miliband
It sounds like my hon. Friend’s constituents are doing important work. She is absolutely right. The last Government used to say that we have only 1% of global emissions, as if that was a sort of excuse for inaction on the world stage. We see it differently. We see that only by leading at home can we provide the platform to lead internationally. This Government have in a few short months put Britian back on the world stage on climate, and we will be working with our best endeavours to ensure that we tackle the situation we have inherited—I am afraid the world is miles off track for keeping global warming to 1.5°.
Chris Vince
Thank you Mr Speaker—I’ve done the training. I welcome the Secretary of State’s warm words about our leadership on international climate issues, which is in stark contrast to the previous Government’s failings. I also publicly welcome his recent visit to Harlow college—less said about the racing game, which he won, the better. Does he agree that it is only thanks to the commitment shown by the new Government to drastically deliver on climate change issues that we can lead on a world stage?
Ed Miliband
My hon. Friend did very well, and I agree with him. Part of the problem with the last Government—I do not doubt that there were people making good endeavours—is that when we do something different at home to what we preach internationally, such as say we are going to power past coal by opening a new coalmine, people say, “Well, you are saying one thing and doing another.” Consistency is the absolute foundation for global leadership.
Ed Miliband
Yes, and that is something I am already discussing with my right hon. Friend the Business Secretary.
Joy Morrissey (Beaconsfield) (Con)
May I congratulate the Secretary of State on his appointment of Rachel Kyte as his climate envoy to support his work with international partners? Before her appointment, did the Secretary of State declare to officials her links with Quadrature Capital, which donated £4 million to the Labour party? Also, did he declare her links to the Green Initiative Foundation, which gave him £99,000? A yes or no answer will suffice.
Miatta Fahnbulleh
We see local and regional government playing an absolutely fundamental role to reach homes that we need to upgrade, but also to help us deliver the scale of ambition we want. Local and regional government will be a key part of our warm homes plan.
Pippa Heylings (South Cambridgeshire) (LD)
Keeping vulnerable people warm and lowering their energy bills is, I am sure, something we can all agree on across the House. Insulating homes is a key part of that puzzle. We welcome the news that we will see the warm homes plan in spring. However, does the Minister agree that ahead of this winter we need an emergency home insulation plan, particularly for the vulnerable, along with allocated funding? Does she have any idea of the amount and allocation of funding in this Parliament that there will be for insulating homes?
Michael Shanks
The hon. Lady is right to draw attention to the importance of community energy projects throughout the country. We want to see many more of them, but we have inherited a grid that needs significant upgrading, and we are now working apace to ensure that that happens. Part of the work that I have been doing with National Grid and others involves trying to identify the next steps that are needed to shorten the connections queue, and also to make it more affordable for smaller community projects to connect. There is an important role for partnership as well, with some of the bigger renewables projects giving part of their connections queues to smaller ones, and that is already happening in some parts of the country. There is no doubt that there is much more to do, but we are, as I have said, working apace to try to move this forward after 14 years of inaction.
Pippa Heylings (South Cambridgeshire) (LD)
As we have heard from my hon. Friend the Member for Wells and Mendip Hills (Tessa Munt), the lack of national grid capacity is holding back the UK’s push towards renewable energy. There are numerous examples of projects that have been delayed because they are waiting to be connected to the national grid, or because connection is too expensive. In my constituency, we cannot even connect the solar panels and batteries for the ambitious plan to decarbonise and electrify the refuse fleet for South Cambridgeshire district council. The projects that have been delayed include the building of new homes, which is crucial at present. Can the Minister explain to us how we are to reach this stage on the scale and at the pace that is needed?
Michael Shanks
I could be wrong, but I think the right hon. Gentleman previously said that his own Government’s plans on onshore wind in England were not the right approach to take. I agree with him, which is why we lifted the onshore wind ban. The reality is that whereas the previous Government used to talk the talk on climate action, we are the ones now delivering—and delivering an energy system fit for the future.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
One way to increase clean electricity generation in the United Kingdom would be to invest at pace in new nuclear. We left government with a clear plan to get to 24 GW of nuclear power by 2050. Does that target remain?
Ed Miliband
My hon. Friend is absolutely right to draw attention to our announcement on Aberdeen as the headquarters of Great British Energy and the important role that it will play, and also to the importance of the satellite offices. I know from my visit to her constituency of the huge potential of her area on these issues, and we want to drive jobs throughout the supply chain through Great British Energy.
Claire Coutinho (East Surrey) (Con)
The Secretary of State promised in the general election to cut everyone’s bills by £300 by 2030—a pledge he will not repeat now that he is in office. In fact, one of his first acts has been to snatch the same amount away from millions of pensioners in poverty. The right hon. Gentleman likes to preach, to politicise and, dare I say it, to patronise, but I have one simple question for him. To the millions of pensioners who are worried about their heating bills this Christmas, will he apologise?
Clean Energy Superpower Mission
Lindsay Hoyle Excerpts(2 years ago)
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Mr Speaker
Before I call the Secretary of State, I note that there is disappointment from the Opposition that the statement was not provided in time. The statement was not provided to my office in time either. I know we want to set off in the right way. I am sure that the officials will make note when they arrive that we need to make sure that statements are provided on time. That was meant to be four minutes past the hour. I am sure that the Secretary of State will want to ensure that it never happens again.
The Secretary of State for Energy Security and Net Zero (Edward Miliband)
With permission, I would like to make a statement about the Government’s mission to make Britain a clean energy superpower. This Government were elected two weeks ago. Since then, we have lifted the onshore wind ban in England, which had been in place since 2015; consented more than 1.3 GW of solar projects, powering the equivalent of almost 400,000 homes; established the 2030 mission control centre in my Department under Chris Stark to plan and deliver our mission; and established under the Chancellor a national wealth fund to create good clean energy jobs across our country. We are just getting started.
We are moving at this pace for one overriding reason: the urgency of the challenges we face. We have the challenge of our energy insecurity, laid bare by Putin’s invasion of Ukraine and paid for by the British people in the worst cost of living crisis in generations. We have the challenge of an economy that does not work for working people, with too few good jobs at decent wages. We have the challenge of the climate crisis—not a future threat, but a present reality. This Government have a driving philosophy: homegrown clean energy can help us tackle all those challenges, including crucially energy security. Today the Climate Change Committee publishes its progress report to Parliament. I thank the interim chair Piers Forster and the interim chief executive James Richardson for their excellent work.
The Committee says in its report:
“British-based renewable energy is the cheapest and fastest way to reduce vulnerability to volatile global fossil fuel markets. The faster we get off fossil fuels, the more secure we become.”
It is right. That is why making Britain a clean energy superpower is one of the five missions of this Government, delivering clean power by 2030 and accelerating to net zero across the economy.
Today, the committee’s report also lays bare the truth about the last Government. Despite achievements, which I am happy to acknowledge, the report is coruscating about the lurch of recent years. It says that
“last year…the previous Government signalled a slowing of pace and reversed or delayed key policies.”
It goes on:
“the…announcements were given with the justification that they will make the transition more affordable for people, but with no evidence backing this claim.”
It concludes that
“the country is not on track”
to hit our 2030 international target of 68% emissions reductions. Indeed, it says:
“Our assessment is that only a third of the emissions reductions required...are currently covered by credible plans.”
That is our inheritance for a target to be achieved in just five years.
I will respond formally to the committee in the autumn and, as part of that, I have asked my Department to provide me with a thorough analysis of its findings, but I can tell the House today that we will hold fast to our 2030 clean power mission and our nationally determined contribution, because it is the right thing to do for our country.
Today, I set out our next steps. First, onshore wind is one of the cheapest sources of power that we have. To those in the House who claimed they were protecting communities with the onshore wind ban, let us be clear: they have undermined our energy security and set back the fight against the climate crisis. That is why in the first 72 hours of this Government we lifted the ban, which today I confirm formally to the House. Under the onshore wind ban, the pipeline of projects in England shrank by 90%.
Over a year ago, the last Government’s net zero tsar Chris Skidmore, whom I pay tribute to, made a recommendation of an onshore wind taskforce to drive forward projects. The last Government ignored it; we will implement it. The taskforce will work with developers to rebuild the pipeline of projects.
Secondly, solar power is among the cheapest forms of power that we have. My right hon. Friend the Deputy Prime Minister and I are determined that we have a rooftop revolution. We must use the rooftops of our country for solar far better than we do at the moment. That is why the Deputy Prime Minister and I are clear that rooftop solar should play an important role, where appropriate, as part of the future standards for homes and buildings. The solar road map—we have been waiting for it for 18 months—will be published soon, with greater ambition. I have reconvened the solar taskforce to deliver that objective.
As we face up to the challenge of the energy transition, we must also plan for how we use land in this country to ensure a proper balance between food security, nature preservation and clean energy. After dither and delay under the previous Government, the Environment, Food and Rural Affairs Secretary will publish a land use framework working in tandem with our spatial energy plan.
I also assure the House that communities will continue to have a say on any proposals in their area. It is important for this Government that where communities host clean energy infrastructure, they should directly benefit from it. But we will not carry on with a position where the clean energy we need does not get built and the British people pay the price.
Credible external estimates suggest that ground-mounted solar used just 0.1% of our land in 2022. The biggest threat to nature and food security and to our rural communities is not solar panels or onshore wind; it is the climate crisis, which threatens our best farmland, food production and the livelihoods of farmers. The Government will proceed not on the basis of myth and false information, but on evidence. Every time, the previous Government ducked, delayed and denied the difficult decisions needed for clean energy, that made us less secure, raised bills and undermined climate action. No more.
Thirdly, offshore wind will be the backbone of our clean energy mission. Allocation round 5, overseen by the last Government, was a catastrophe for the industry, with no offshore wind contracts awarded. The upcoming round is a critical test. We will get this crucial industry back on its feet. By the beginning of August, I will report back on the budget for AR6 to ensure that as much clean, home-grown energy as possible gets built while ensuring value for money.
Our fourth step is the Great British Energy Bill announced in the Gracious Speech. I am extremely proud that this is the first Bill for decades that will enable us to establish a UK-wide publicly owned energy generation company. The truth is that there is already widespread public ownership of energy in Britain, but by foreign Governments. We have offshore wind farms in the UK owned by the Governments of Denmark, France, Norway and Sweden through state-owned companies. Those Governments know that a publicly owned national champion is part of a modern industrial strategy and generates a return for taxpayers, crowding in, not crowding out, private investment. For too long, Britain has opted out and lost out. Today, we say: no more.
Great British Energy, headquartered in Scotland, will invest in home-grown clean energy to increase our energy independence, create good jobs with strong trade unions and tackle the climate crisis. It will invest in technologies such as nuclear, offshore wind, tidal, hydrogen and carbon capture, and ensure a just transition for our oil and gas communities. GB Energy will also oversee the biggest expansion of community energy in British history through our local power plan. The Government believe in the ownership of British assets by the British people, for the benefit of the British people. Following the people’s verdict at the general election, I hope that this is a patriotic mission that the whole House can get behind.
I have seen 19 years of debates on climate and energy in this House. The clean energy transition represents the biggest transformation of our economy for 200 years, and it is massively challenging. We have been at our best as a country, and as a House, when we have worked together for the sake of the national interest. I pay tribute to people of all parties who have been champions of this agenda over the past 14 years: Baroness May, who legislated for net zero; the right hon. Member for Kingston and Surbiton (Ed Davey), who oversaw the growth of offshore wind; Caroline Lucas; and on the Labour Benches, my friend Alan Whitehead.
One of my early decisions was to re-establish the role of the Secretary of State as the lead climate negotiator in my Department, because we can only protect future generations with strong action at home and leadership abroad. Next week in London I will host the President of this year’s COP29 in Azerbaijan. He will be joined by the Presidents of COP28 and COP30. I have invited the President of COP 26, Lord Sharma, who presided with such distinction, to join our discussions. This is a sign of how I intend to go on—working with people of all parties and none in this national endeavour. That is what the British people have a right to expect of us. As the Prime Minister rightly says, “Country first, party second.” That is more true on this issue than any other. This Government will act at pace and work with anyone who shares our mission. I commend this statement to the House.
Mr Speaker
Order. Can I just say that I do not need any advice? I will decide whether it is a question. It is an answer, actually.
Edward Miliband
On the points the right hon. Lady made, there is a fundamental issue, which is that unless we drive for clean energy—this is what the Climate Change Committee said; I strongly recommend that right hon. and hon. Members read it—we will end up energy insecure. We had the worst cost of living crisis in generations because of our exposure to fossil fuels, both domestically and internationally, set and sold on the world market. Unless we drive for clean energy, we will end up paying more for energy. The House would not know that from what she said about our 2030 target. She had a target when she was in government of 95% clean power by 2030. Of course, targets did not matter for the previous Government, because they were always miles away from reaching them.
As for the North sea, we set out our manifesto position, which is not to issue licences to explore new fields but to keep existing fields for their lifetime. Here is the truth of the conversation that we must have. The fate of North sea oil and gas communities is defined by these questions. Do we drive forward the clean energy of the future? Have we a plan for carbon capture and storage? Have we a plan for hydrogen? Have we a plan for offshore wind? The Conservatives had no such plans, so we will take no lectures on just transitions from them.
The right hon. Lady had other lines that were a rehearsal of the election. Let me say this to her, on the solar question. She referred to one particular planning decision, and I do think she has a degree of brass neck. She criticised me for overturning the planning authority. I am in a quasi-judicial role, so I will be careful about what I say, but she had this in her Department for a year. She could have agreed with the planning authority and rejected the application, but she chose not to do so. That is the reality.
In my experience, when you lose a general election a period of reflection is in order, and I say to Conservative Members that they need to reflect long and hard on the signals that they sent in this election. Their climate lurch was a disaster—a disaster for them electorally, but, much more important to me, a disaster for the country. Under this Government, Britain is back, open for business and climate leadership.
Several hon. Members rose—
Mr Speaker
Order. May I just gently say that these exchanges must finish at 1 pm? I hope we can help each other along the way, but first I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
I welcome the new Secretary of State to his place. I share his passion for climate action. Let me add, however, that next time he makes a statement we will need our copies in better time than was the case today.
There is no doubt that the best route to affordable energy is renewables, but under the former Government renewable projects faced long delays and costs have skyrocketed. Indeed, that Government’s record on renewables was absolutely miserable. Our electricity demand is expected to double by 2050, and we must make upgrading our grid infrastructure a major priority. The Government will know that one of the biggest challenges will be to bring communities behind hosting the big infrastructure changes needed for the grid expansion, and to cope with the huge landscape transformation. How will they secure public consent?
As the Secretary of State said, to achieve our legally binding targets we also need a “rooftop solar revolution”, which will include introducing stronger incentives for households to install solar panels and ensuring a fair price for energy that they sell back to the grid. Will the Government work on those incentives with the Liberal Democrats?
We Liberal Democrats acknowledge the new approach taken by this new Government, and I look forward to working constructively with the Secretary of State to achieve our very ambitious targets.
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 years, 2 months ago)
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Claire Coutinho
I know from experience that my hon. Friend is a doughty champion for his local area and for the aviation sector. My Department is in regular contact with the Department for Transport and the Treasury on aviation decarbonisation and the important role for sustainable aviation fuel in that transition. On 25 April, DFT published a consultation on options for a revenue certainty mechanism alongside details of the SAF mandate, which together will support both decarbonation and the growth of the sector.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Tapadh, Mr Speaker.
There are many criticisms of the Government—I am sure they are aware of them—that they are too slow and indecisive about giving signals to the market for particular technologies, which means that, when they need to commission new energy, they are stuck with only one option: gas, which, as we know, is not exactly the way to net zero. What will the Secretary of State be doing to move things a bit quicker and give the market signals as to which energy path the UK will be taking?
Claire Coutinho
I would find the hon. Lady’s questions more credible if she would at least once welcome the fact that we are the first country in the G20 to have halved emissions. On our progress, I am proud that one of the reasons that we have come so far is technological fixes, because of the remarkable progress that this country has made in renewable energy. That is why we overshot on our first, second and third carbon budgets, and we are on track to overshoot on our fourth.
Edward Miliband (Doncaster North) (Lab)
Two weeks ago the Government were found, for a second time, to be in breach of the law over their climate targets. That failure will mean that families across the country will pay higher energy bills. The Court found:
“The Secretary of State’s conclusion that the proposals and policies will enable the carbon budgets to be met was irrational”.
Last time, the Government claimed that their breach of the law was just on a technicality. What is the right hon. Lady’s “dog ate my homework” excuse this time?
Justin Tomlinson
We have to work with businesses to secure investment. We have secured £300 billion for low-carbon technologies since 2010, as we boost UK energy production, our energy security and, ultimately, deliver cheaper bills for consumers.
Kerry McCarthy (Bristol East) (Lab)
When it comes to who controls and benefits from our energy system, why does the Government refuse to put the British people first? As we have heard, foreign-owned firms, whether France’s EDF or Denmark’s Ørsted, reap the rewards of energy produced in Britain. As they benefit British people pay the price, exposed to sky-high energy bills and beholden to volatile international prices. Why is the Minister so opposed to putting power back into the hands of the British people?
Amanda Solloway
The hon. Lady and I have had many conversations about this issue. One of the things that we have done is make sure that people who are on pre-payment meters are not unfairly penalised.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister and her colleagues have repeatedly said today that they care about cutting bills for families, but a recent report by the Resolution Foundation found that the onshore wind ban has hit the poorest households’ income six times harder than that of the richest. Such households have been forced to pay additional electricity bills as a result of the total failure to build onshore wind in England. How on earth can Ministers continue to sit there and claim that they stand up for working families when they continue to block the cheapest form of clean energy there is, which could cut bills for families who desperately need help? Before she leaves office, will the Secretary of State pledge to put this right so that onshore wind can be built again and customers can save money on their future bills?
Amanda Solloway
I respectfully say to the right hon. Gentleman that we do have schemes that are working. I remind him that the Department for Energy Security and Net Zero has launched a £1 billion Great British installation scheme, which aims to upgrade around 300,000 of the country’s least energy-efficient homes.
Dave Doogan (Angus) (SNP)
The Scottish Government are working at pace to replace polluting heating systems and improve energy efficiency in Scotland’s building stock, with £1.8 billion being invested in this parliamentary Session towards heat and energy efficiency measures and £600 million towards new affordable housing. With the Climate Change Committee stating that the Scottish Government’s heat in buildings Bill could become the template for the UK, helping Scotland to decarbonise faster than anywhere else in the UK, would the Minister like to visit the Scottish Government in Edinburgh? I can arrange that for her, so that she can see climate leadership in action.
Sarah Jones (Croydon Central) (Lab)
The National Infrastructure Commission said that the Government have reversed some progress on net zero. The right hon. Member for Maidenhead (Mrs May) said that the Government’s roll-back on net zero has put off investors. A member of the Climate Change Committee has said that we are “not ready at all” for the impact of extreme weather on our national security. Mad, bad and dangerous. Will the Secretary of State finally back Great British Energy and the national wealth fund instead of lurching from crisis to crisis, not having a plan and selling out Britain?
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Tapadh leat, Mr Speaker. Zonal pricing has the potential to lower bills for households from Sussex to Shetland, from Stonehaven to the great town of Stornoway. Of course some vested interests will be concerned, such as energy generating companies that are benefiting from the constraint payments raised from customer bills. What are the Government doing to stimulate debate and knowledge about zonal pricing?
Andrew Bowie
I would be delighted to meet my hon. Friend at any time, and I am happy to discuss this and any other matter relating to the subject.
Sir John Hayes (South Holland and The Deepings) (Con)
Thank you, Mr Speaker. Now that the Government have recognised the importance of versatile and productive agricultural land in respect of solar, will they recognise too the threat of a monstrous string of pylons stretching right down the east coast of England? We either care about our green and pleasant land or we do not—for, as Keats understood, truth is beauty and beauty, truth.
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 years, 3 months ago)
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Claire Coutinho
I thank the hon. Gentleman. We are passionate supporters of the fishing industry. We continue to have conversations with the Department for Environment, Food and Rural Affairs to ensure that we share our marine bed in an equitable way, not only getting the most out of it for our clean energy needs but protecting the fishing industry.
Dr Alan Whitehead (Southampton, Test) (Lab)
I am sure the Secretary of State does not want a repeat on her watch of the failure of allocation round 5, when her Department managed to crash the offshore wind market. However, the industry is already warning that the parameters set for floating wind in the next round, AR6, could mean that only one sub-gigawatt project succeeds in getting contract for difference support: way off the Government’s recently trumpeted target of 5 GW of floating offshore by 2030. What steps is she taking to ensure that we do not see another failure and lose the global race for this emerging technology?
Claire Coutinho
The only failure on renewable energy is the record Labour left when they were in power, when 7% of our electricity was generated from renewables whereas now that figure is 50%. On ports, not only have we got our world-leading freeport agenda but we have put forward projects such as FLOWMIS—the floating offshore wind manufacturing investment scheme—which is also helping to build our port infrastructure.
Dave Doogan (Angus) (SNP)
With 17 GW of floating offshore wind planned to be anchored within 100 nautical miles of Aberdeen, what steps will the Secretary of State take to ensure that technological and engineering knowledge and wherewithal and supply chain investment are also anchored within 100 miles of the north-east of Scotland?
Justin Tomlinson
My hon. Friend regularly champions investment in his constituency, working closely alongside the businesses he supports. We understand the importance of that. Just before Christmas, we set out a road map to speed up the process, which we very much hope will unlock that vital investment for his community.
Kerry McCarthy (Bristol East) (Lab)
I welcome the Minister to his post. I think he is struggling a little bit to get with the programme, but hopefully he will soon be on message. [Hon. Members: “Oh!”] That was in terms of his answer to the question about being anti-net zero.
The Department confirmed last month that curtailment payments cost a whopping £1.4 billion last year. That is bill payers’ money being used to pay providers to switch off wind power and switch on gas. Why should people be paying even more on their energy bills to switch off cleaner and cheaper energy because the Government have failed to deliver the net zero capacity that we need?
Claire Coutinho
I thank my hon. Friend. I know that he is a fantastic champion for people living off the gas grid. We are supporting off-grid homes to transition to heat pumps or biomass boilers through the boiler upgrade scheme, with grants of up to £7,500. Renewable fuels such as hydrotreated vegetable oil have the potential to play an important role in heating off-grid buildings, and we will be issuing a consultation on that role by September, in line with commitments made by Ministers during the passage of the Energy Act 2023.
Edward Miliband (Doncaster North) (Lab)
Mr Speaker, can I start by paying tribute to your father, Doug? He was a remarkable fighter for social justice, and we share your sense of loss.
A year ago, after presiding over the absolute scandal of the forced installation of prepayment meters, the right hon. Lady’s predecessor promised full compensation for anyone affected. Unbelievably, she has left it to the energy companies to decide who gets compensation and how much. They have assessed 150,000 people and just 1,500 got anything—99% got nothing. Why has she so catastrophically failed to deliver justice for those affected by the PPM scandal?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
We will publish the Government’s response to the recent Pumpwatch consultation as soon as possible, and we continue to work closely with the Competition and Markets Authority, and the sector technology companies, to launch Pumpwatch this year. Of course, my hon. Friend makes an incredibly important point that, when we launch this, we will of course make sure that everybody knows about this valuable resource.
Dave Doogan (Angus) (SNP)
We learned last year that no fewer than 200 Department for Energy Security and Net Zero jobs were going to transfer from London to Aberdeen. That was championed by no less than the Secretary of State for Scotland, the right hon. Member for Dumfries and Galloway (Mr Jack) and the Minister responsible for nuclear and renewables, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). It now transpires that only 35 jobs will transfer to Aberdeen. For context, that is 0.37% of the DESNZ workforce. Is the Secretary of State content for that derisory transfer of jobs from her Department to Aberdeen? Presumably she will not be, so what is she going to do about it to give the north-east of Scotland a better deal?
Andrew Rosindell (Romford) (Con)
I have been speaking to my constituents about the whole net zero agenda. Although the people of Romford are very determined to see cleaner and greener energy sources, I have to say that their priority is energy security, energy self-sufficiency and energy sovereignty. I am worried that we are not taking the people with us on net zero, because many people simply cannot afford this extreme agenda that could end up giving China a competitive advantage and bankrupting our own country.
Mr Speaker
Order. I remind Members that these are topical questions. I have to get through them. Just because the hon. Gentleman missed out on Question 18, it does not mean that he can have an extended topical question. Let us help each other.
Justin Tomlinson
Thank you, Mr Speaker.
My hon. Friend the Member for Romford (Andrew Rosindell) highlights the importance of working with the public and business. Whereas the shadow Secretary of State sneers at those who are sceptical, we have to win hearts and minds. That is why my hon. Friend will welcome our “Powering Up Britain” plan to secure our energy system by ensuring a resilient and reliable supply, increasing our energy efficiency and, crucially, bringing down bills.
Justin Tomlinson
My hon. Friend once again champions her constituency, working with businesses so that in conjunction we can drive up our use of renewables. It is thanks to this Government that we changed the planning rules to make it easier to set up large-scale solar installations. I also welcome households playing their part, with 17,000 solar-panel installations a month last year.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Gas-fired Power Stations
Lindsay Hoyle Excerpts(2 years, 4 months ago)
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Graham Stuart
I would chide my right hon. Friend with the science and evidence that are emerging all the time. There is a climate challenge and emergency, which is why we are looking to reduce our emissions. He is quite right to challenge that by saying, “We are less than 1% of global emissions, so how does this make sense?” That is why we hosted COP26 and got the rest of the world to commit to following us. We are bringing in the carbon border adjustment mechanism from 2027 precisely to ensure that we create an economically rational system that supports jobs in this country, while meeting the climate challenge that needs to be met.
Dr Alan Whitehead (Southampton, Test) (Lab)
I am little puzzled about what all this is about. The Committee on Climate Change and all credible energy experts have said that we will need a small residual of unabated gas in the system for the medium term, and that is consistent with a fully decarbonised power system. No one disputes that, and it is barely worth an announcement. We should extend the lives of existing plants to meet that need. If new-build plants are needed in the short term to replace some of those retiring gas-fired power stations, there is no disagreement, provided they are capable of converting to hydrogen or carbon capture, as the Government say they must be.
However, that is not what the Secretary of State said yesterday at the Chatham House meeting. The Government’s own analysis published yesterday shows that 24 GW of existing gas capacity could be maintained via life extension and refurbishment, and 9 GW of new capacity is already in the baseline under existing capacity market arrangements. That is an uncontroversial position and analysis, and hardly something worth making a huge fuss about. But again, that was not what the Secretary of State talked about at yesterday’s Chatham House conference.
Given that analysis, could the Minister enlighten us with the number of new gas plants that the Government are hoping to build, given there is no mention of that in the 1,500 pages of documents that were published yesterday? That is an important point, because it appears to show the Government’s intention to go beyond what is already in the analysis and build a large number of new gas-fired power stations for the future.
There is a great deal in the review of electricity market arrangements published yesterday that is worth discussing, not least the Government’s glaring failure to bring forward low-carbon flexible technologies such as long-duration storage, which everyone knows we will need. It is a shame that the Minister has not properly addressed that. Will he give us clarity on whether this is a meaningless announcement within existing policy arrangements? Or, as has been said, is it an attempt to conjure a culture war out of climate and energy policy, with announcements with no substance or value that show that the Government have no serious plan for energy in our country?
Graham Stuart
I do agree with my hon. Friend. The point is to have a wide range of back-up capacity, but not to use it very much with fossil fuels, and, as I think has long been the case, to ensure that any new gas generation should be carbon capture-ready. We look forward to it being hydrogen-ready, too. We are in a very similar position to Germany and other countries that are looking at exactly that. For instance, I think both Germany and Ireland, as part of their growth in renewables, recognise the need for gas, albeit used less and less, to ensure that the lights stay on and there is appropriate insurance in place.
Dave Doogan (Angus) (SNP)
What a cluster—it is unbelievable that we are in this situation. In the Secretary of State’s letter to Members today, she said that the Government are taking steps to make sure the lights stay on. That is the legacy of 14 years of the Conservatives in charge of energy. Uncomfortably, I find myself in agreement with the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg). This is a significant departure, and one we should be alarmed about. Where is the Government’s precious nuclear baseload now? Where is the exemplar of CCUS working at the necessary scale, from which the Government are taking inspiration? Would it not have been an elegant solution to have unabated gas winding down at the same time as battery storage and long-duration pump storage was winding up? We cannot have that, because the Government have dragged their feet on both things. What does the Minister say to people who are having infrastructure for transmission put throughout their communities and are being told to suck it up because that is what we need to get gas out the system, when the same Government are now building gas-fired power stations?
Graham Stuart
I thank my hon. Friend. He and my right hon. Friend the Member for North East Somerset (Sir Jacob Rees-Mogg) are absolutely right to focus on the economics. We have to get the economics right. We have used an auction-type mechanism in the capacity market to ensure flexible capacity. We are incentivising more and more of that to be low carbon, with batteries coming in at scale, as well as pumps and potentially hydrostorage. We also need hydrogen and carbon capture. We are ensuring a balanced system with discipline built into it to drive costs down. When CBAMs and so on come on stream, I firmly expect that in the 2030s we will have lower-cost energy than our neighbours and we will, as my right hon. Friend the Member for North East Somerset referred to, be more economically competitive.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Thank you, Mr Speaker—tapadh leibh.
It is concerning that this was announced in Chatham House and not here in the House, and that the Secretary of State is not here today. Off-piste speeches have cost in the past. My Committee heard this morning that an Energy Minister made a speech a decade ago that, with the effect it had on investment, cost 1,000 jobs. The Minister says that this is a consultation, but have the Government picked a winner? What room have they given for storage to be in the mix? Are they confusing energy security—we have learned from the Ukraine war important how that is—with continual electricity supply? Given what the Minister says about the percentage of gas used by 2030 and after, what percentage of capacity will this provide, and what percentage does he envisage will be used day to day? What thought has been given to consideration of other technologies in his gigawatt demand?
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 years, 5 months ago)
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Claire Coutinho
A social tariff means lots of things to different people, but we are supporting vulnerable people with the cost of their energy bills. We supported them last winter, paying on average a half of everybody’s energy bills, and we have made additional payments of £900 to support people. Since 2010, we have increased the proportion of homes that are energy-efficient and insulated to 50%, up from 14%.
Virginia Crosbie (Ynys Môn) (Con)
On energy tariffs, what assessment has the Secretary of State made of the merits of providing residents who are local to energy and nuclear plants with discounts on their energy bills?
Amanda Solloway
No decision has yet been taken on that, but we have a commitment to ensure that we get the very best deal for all our constituents.
Kerry McCarthy (Bristol East) (Lab)
A year ago, the then Energy Secretary said that if suppliers had wrongly installed prepayment meters in any home, they would have to recompense their customers for the way they had behaved. One year later, can the Minister tell the House how many individuals who had a prepayment meter wrongly installed have had compensation, how many are yet to receive it and, of those still waiting, when they will get the compensation?
Dr Alan Whitehead (Southampton, Test) (Lab)
Contrary to propaganda from the Conservative side, the last Labour Government handed over a detailed nuclear development plan that ran up to 2025, with 10 sites identified for nuclear development, early discussions with nuclear developers, and a plan for a deep and secure nuclear repository. Since then, over 14 years, not one electron of new nuclear power has been produced, Hinkley C is now at risk of further delays and no progress at all has been made on the establishment of a secure storage site for nuclear waste. What assurances can the Minister give that lessons have been learned from that frankly fairly lamentable stewardship of the previous plan, and that the latest plan is set up to deliver?
Amanda Solloway
I am pleased to hear from the hon. Gentleman that the situation has been resolved, and I suggest that exactly the right recourse is to contact the relevant parties. We are now launching the ability of the ombudsman to help small businesses as well, which reassures me that such cases will be seen to more quickly and resolved sooner.
Dave Doogan (Angus) (SNP)
In the UK, electricity standing charges will balloon by 12%, meaning that people in Scotland who were paying £90 a year in 2021-22 will soon need to find £216 a year—a 138% increase under this Tory Government. That removes the incentive to curb excessive use, and presents a disincentive to economise on energy usage. If costs and charges were redistributed to the unit price, consumers would be empowered to pursue reduced usage, knowing that that would translate into lower bills. What assessment has the Minister made of the savings that would be made, in terms of both carbon emissions and the need for vast pieces of new energy infrastructure, if the standing charges were rolled into unit prices?
Claire Coutinho
As I said, our record on net zero investment is incredibly strong. In fact, I believe the CBI had a report out this morning showing that our net zero sectors have been growing by 9% in the last year. We have set out plans for further investment, whether that is in grid connections, supply chain investment through our Gigafund, or reforming capital allowance. All those things, and not public sector investment alone, attract private investment to this country.
Sarah Jones (Croydon Central) (Lab)
This Government are locked in a doom loop of inertia, and everyone is talking about it. Just this week, the National Infrastructure Commission said that the Government are taking too long, need to move faster, and that greater urgency is required. The CBI report that the Secretary of State mentioned says that
“strong future growth from green businesses is being put at risk”.
Labour’s national wealth fund will crowd in private investment and create thousands of good jobs for plumbers, engineers, electricians and welders. Is blowing our advantage and losing the race for the industries of the future part of the Government’s plan, or do they just not have one?
Mr Sheerman
Thank you for waking me up, Mr Speaker. The Adfree Cities campaign is very significant. Most of us have seen flashing coloured screens proliferate in our towns and cities, and much more densely in other countries, such as France and Germany. Not only do these screens use a lot of energy and electricity, but they are very invasive of people’s dwellings. Can we be very careful about the proliferation of those screens?
Graham Stuart
The Government are moving on from our appalling inheritance in 2010 of less than 7% of our electricity coming from renewables, with that figure today up to well over 40%. Every day we add to that, we displace gas and other fossil fuels and lower bills for people, and we plan to keep that going. We already have solar, onshore wind and other developers providing benefits to consumers, and we will come forward with plans for those hosting—
Sir George Howarth (Knowsley) (Lab)
People who are considering changing their boiler struggle to find accurate information about the benefits and the costs. Will the Minister consider issuing new guidance that makes clear both the costs and the benefits of switching to a heat pump?
Dave Doogan (Angus) (SNP)
Some 23% of households in Scotland are living in extreme fuel poverty. Energy debt across the United Kingdom has reached £3.1 billion. Age UK estimates that, had the UK Government implemented a social tariff this winter, 2.2 million households would have been lifted out of poverty. The latest costs of unpayable energy debt have once again been heaped on to ordinary taxpayers by Ofgem through the unit rate. What assessment has the Secretary of State made of how much energy debt could be reduced by through the introduction of a social tariff to mitigate totally unaffordable energy bills?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
I thank my hon. Friend for that important question. Wholesale energy prices have fallen compared with last year. The Government have been supporting eligible businesses locked into high contracts through the energy bills discount scheme, until they can take advantage of lower fixed-price rates. My hon. Friend will be interested to hear that the Government delivered more than £7.4 billion to non-domestic energy users last winter, covering around half of many businesses’ energy bills.
Edward Miliband (Doncaster North) (Lab)
Last September, the Energy Secretary claimed she was lifting the onshore wind ban, but in the whole of 2023 and so far in 2024 there have been zero applications for new onshore wind farms designed for domestic electricity supply in England. She said that her decision would speed up the delivery of projects. Why does she think it has not worked?
COP28
Lindsay Hoyle Excerpts(2 years, 7 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Amanda Solloway
I reiterate that the Government take this issue incredibly seriously, and there are two ways of demonstrating that: the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), who usually deals with such issues, is at COP28 and ready for the conference; and we now have a distinct Department for this issue, the Department for Energy Security and Net Zero. We know that we are leaders in the field. I take this issue seriously, not just for the people of the United Kingdom, but for the planet as a whole. Thinking about my granddaughter, we really do have a commitment to ensuring that we are doing everything that we can.
Mr Speaker
I call Dr Thérèse Coffey. [Interruption.] Order. Ms Lucas, I have given you an urgent question. If you have a problem—
Mr Speaker
Please. The Minister will answer as she sees fit. I am sure that at the end you will want to raise a point of order. That is the time—you cannot have a second bite of the cherry. I went out of my way to ensure that this issue was covered, so please—I am sure other Members will ask questions, and it is up to the Minister how she answers them. I am not responsible for that.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
Thank you, Mr Speaker, for granting this second opportunity for the House to discuss COP28. At the debate on 16 November, when the Government granted a full day’s debate, only three Back Benchers spoke—me, and the hon. Members for Putney (Fleur Anderson) and for Strangford (Jim Shannon). There was not a sign of the hon. Member for Brighton, Pavilion (Caroline Lucas), who is now complaining about the responses to her questions. By the way, the debate on 16 November finished early because of how few people spoke.
Does my hon. Friend agree that “vote blue, go green” is the best way to deliver net zero? Does she recognise that nature-based solutions are vital to achieve net zero? Does this not just show again that the Green party is all talk and absolutely no action?
Amanda Solloway
As I have said, it is incredibly important that we head towards our commitments. Between 1990 and 2021, we cut UK emissions by 48% while growing the economy. I agree with my right hon. Friend that if we trust this Government to deliver, we will ensure we are heading on the right path. The other thing to mention is that net zero is an engine for growth and the revitalisation of formerly industrialised areas of the UK. Cutting emissions is important not just for the climate, but for our economy.
Kerry McCarthy (Bristol East) (Lab)
The UN has warned that the world is on course for a catastrophic 2.8°C of warming, in part because promises made at COP26 and COP27 have not been fulfilled. We are running out of last chances. We know what we need to do and we know how to do it, but where is the sense of urgency? The Prime Minister was shamed into attending COP last year. I would have thought he would be ashamed to be there this year, after his climate climbdown last month derailed momentum at exactly the wrong time. The world needs climate leadership.
Does the Minister think it is acceptable for the Prime Minister to sabotage the UK’s history of climate leadership with his cynical backtracking on net zero? Labour will be going to COP with a message that the UK can be a climate leader again and that, in doing so, we will cut energy bills and boost energy independence at home, which this Government have conspicuously failed to do. Labour will put the UK back in a position of leadership and establish a clean power alliance. We will pledge to issue no new oil, gas or coal licences and set an example with our mission for clean power by 2030. What example does it set if the current UK Government ignore the science and global consensus on fossil fuels, especially when the Energy Secretary admits that her policy will not even cut bills?
Labour will also be working for multilateral development bank reform to help developing countries access capital, as well as championing the UK as the future green finance capital of the world, with mandatory 1.5°C-aligned transition plans for FTSE 100 companies and financial institutions. Can the Minister tell me what the Government will be doing to advance that agenda?
There is so much more that the UK can and must do to reduce emissions and deliver energy security, to cut energy bills and to back British industry. With Labour, Britain would lead the world at COP. Labour is ready to lead; is the Minister?
Amanda Solloway
I pay tribute to the work that my right hon. Friend has done on this subject. I will need to get back to her with the exact figures on deforestation, if I may. One of the things that the UK Government are doing at COP28 is making sure that we hit the five key areas of progress: finance, global stocktake, mitigation, adaptation, and loss and damage—and, within that, nature.
Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)
The UK Government’s series of U-turns on net zero targets has put our ability to meet them at risk. The Scottish Government are committed to meeting our more ambitious targets, but Europe and the United States are leading the way as this place lags behind, in turn holding Scotland back. Can the Minister confirm whether the new Foreign Secretary, who famously decided to “cut the green crap”, will be attending COP26? That move cost UK households £2.5 billion in extra energy costs.
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 years, 7 months ago)
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Claire Coutinho
We are spending £20 billion on energy efficiency over this Parliament and the next. We can be proud of the steps we have taken so far. When we took over in 2010, just 14% of homes were energy-efficient. Now the number is 50%, and we have plans to go further.
Jeff Smith (Manchester, Withington) (Lab)
An estimated 6.3 million households are in fuel poverty across the UK. Ofgem has announced that energy debt has reached £2.6 billion. With millions of people facing another difficult winter, the Government promised to consult on a social tariff to help the most vulnerable. Can the Secretary of State provide an update on that consultation?
Claire Coutinho
People mean many different things by a social tariff, but fundamentally it is about providing people with support to help with their bills. Just in the autumn statement, we have increased the national living wage, which is worth £1,800 to people; increased benefits by 6.7%, which is worth £470; and cut national insurance contributions, which is worth £450. Those are all on top of the £900 cost of living support we already have in place.
Dave Doogan (Angus) (SNP)
Thursday is Fuel Poverty Awareness Day, and recently the Scottish Fuel Poverty Advisory Panel estimated that nearly 30% of households in Scotland are facing extreme fuel poverty, up from 12% in 2019. Does the Secretary of State agree that at the very least that is concerning? Somehow a third of my constituents in the north-east of Scotland—home to a 50-year bonanza for His Majesty’s Treasury—live in energy-rich Scotland but find themselves in fuel poverty. Is that what Unionists mean by pooling and sharing resources?
Claire Coutinho
My right hon. Friend has been a doughty champion for the Celtic sea. He knows that we have a commitment to unlock an additional 12 GW of wind power in the Celtic sea. That is important to us, and we will bring forward the legislation in due course.
Sarah Jones (Croydon Central) (Lab)
Instead of properly responding to America’s Inflation Reduction Act, the Government held a meeting with businesses yesterday—you might not have seen it, Mr Speaker, as it did not make any of the front pages. Was the global investment summit not just a distraction from the same old fundamentals—business confidence is down, exports are down, and growth forecasts are down after 13 years of instability and uncertainty? Does the Secretary of State think that lack of business confidence is because her Government trashed the economy last year, because her Government told business to eff off, or because, as Mark Carney said, the Government have “juvenilised” the climate debate instead of using it as a driver of good jobs? Does she not agree with those from a global pension fund I spoke to this morning who said it is time we got some adults in the room?
Graham Stuart
I thank the hon. Lady for her question and for championing vital research, not least in Scotland. I am looking forward to meeting scientists when I am in Scotland over the next couple of days. We have all heard her request, and it will be noted.
Philip Dunne (Ludlow) (Con)
My right hon. Friend mentioned that he will go to COP28 next week. Could he remind Members of the House, particularly those on the Opposition Benches, of the measures taken in last week’s autumn statement to help to promote the green energy agenda in this country?
Graham Stuart
My hon. Friend is quite right. We must never forget the parlous state of this country in 2010. Less than 7% of our electricity came from renewables—that was the legacy of the right hon. Member for Doncaster North (Edward Miliband). In the first quarter of this year, that was nearly 48%. Opposition Members raised the issue of people being cold and unable to pay their bills, but just 14% of homes were insulated properly; now, it is 50%. In last week’s autumn statement we heard announcements about the grid and—
Mr Speaker
Order. The Minister talks about emissions, and we are getting a lot of them from him today.
David Morris (Morecambe and Lunesdale) (Con)
My constituents put in 10% of the energy into the national grid from two nuclear power stations. We are No. 7 on the template for new builds, so I would like to invite the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) to come to Heysham to see for himself the good work of EDF and the new nuclear power programme that is coming to my constituency.
Graham Stuart
My hon. Friend has championed, does champion and, I am sure, will continue for many years to champion the good people of Kettering, and the fact that they are providing such leadership on net zero and the delivery of renewables after our parlous inheritance from the Labour party. Let us make sure that we never go back to a system in which renewables are not brought on to our grid in the way they are today.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister is being a little shameless with his figures. We really ought to look at what is continuing to happen in England. In England, industry and other bodies warned that the supposed changes to onshore planning restrictions that were announced in September were far too timid to make any real difference to the dearth of new onshore wind.
I recently visited the site in Leighton Buzzard of the only turbine that has been put in place onshore in England since those supposed restrictions were lifted. It turns out that it has been in the planning process since 2014, and is not on a new site anyway. The Department’s renewable energy planning database shows that there are precisely zero new schemes in the pipeline in England. Should the Minister not go away and reconsider the remaining planning and funding restrictions on onshore wind so that it really can get going again?
Claire Coutinho
My hon. Friend makes an excellent point. It is really important that we are honest with the British public. We are pursuing the most ambitious climate targets, but we will do so in a sensible way that protects the economy, grows jobs and investment, and ensures that we can deliver for the country not only on energy security but on our climate change ambitions.
Kerry McCarthy (Bristol East) (Lab)
I have to say that I spent the first 40 years of my life in Bedfordshire and I had no idea that Bedfordshire Day was a thing, but happy Bedfordshire Day anyway.
Fifteen years ago, the Labour Government introduced the Climate Change Act 2008, a landmark piece of legislation that has guided climate policy and progress in this country and inspired similar action around the world—admirably led, it has to be said, by my right hon. Friend the Member for Doncaster North (Edward Miliband). But where is that leadership now? How can the Prime Minister show his face at COP when, in the words of the Climate Change Committee, his entirely cynical backtracking has created
“widespread uncertainty for consumers and the supply chain”,
has increased
“both energy bills and motoring costs”
and made
“Net Zero considerably harder to achieve”?
Amanda Solloway
My hon. Friend is a champion for Shropshire and for the farming industry. Farmers in Shropshire constituencies and across the UK have already benefited from the energy bill relief scheme, which ended on 31 March and provided more than £7.4 billion of support.
Andrew Bowie
As my right hon. Friend knows, I visited East Anglia a few months ago and I plan to visit again. I hear the frustration and the concerns of her constituents, which she has brought to the House today. As she knows, the ESO remains responsible for electricity network design. Offshore routing is more expensive and the costs would be borne by consumers across the country. However, we will continue to engage with the ESO as it develops proposals that strike the balance of offshore and onshore infrastructure.
Mr Speaker
I call the spokesperson for the Scottish National party, who must have a great connection with the east of England.
Dave Doogan (Angus) (SNP)
It comes as a great relief that the Minister is listening, certainly to my constituents and his own. There are extraordinary levels of cheap green Scottish renewable energy transmitted to large consumers in industrial bases in the south by the network. This north-south transaction should rightly be done by subsea transmission cables, negating the need for onshore pylons and their attendant visual blight, environmental degradation, loss of productive farmland, costly compulsory purchase and wayleave charges. Why are Angus and other Scottish communities now threatened with a new 400 kV pylon line, instead of transmitting that energy south using subsea methods?
Mr Speaker
I think there would have been better questions. Time is a bit tight, but please answer the question, Minister.
Andrew Bowie
The hon. Gentleman should probably direct that question to my Scottish Government counterparts, who are in the same party as him. He wants to ride roughshod over the Scottish planning system to allow for a faster deployment of this new energy infrastructure across Scotland, including in his and my own constituencies. The Scottish Government have control over planning, the ESO have control over developing those plans and—
Jack Brereton (Stoke-on-Trent South) (Con)
Claire Coutinho
I know that my hon. Friend is a long-standing champion of the ceramics sector. The sector receives free allocations under the ETS, reducing carbon price exposure and mitigating its risk of carbon leakage. The Government are reviewing the free allocations policy and will consult this year to ensure that we effectively support at-risk industries.
Edward Miliband (Doncaster North) (Lab)
The world sorely needs leadership at COP28, but the verdict of our most globally respected climate expert, Lord Stern, earlier this month was damning. He said that the Government’s backsliding on climate action is a “deeply damaging mistake”—damaging for the UK, the world and the future of us all. Will the Secretary of State take this opportunity to place on record her response to Lord Stern?
Graham Stuart
The hypocrisy and the ignorance coming from the Labour party is extraordinary. We have decarbonised more than any major economy on this earth and we will decarbonise more to 2030, and we are doing it by unlocking a level of investment into renewable energy double that we have seen in the United States. So, Labour can take its selective facts and put them where the sun don’t shine.
Mr Speaker
I think that we have had a few problems with language already. I am sure the Minister will think carefully before he answers again.
Virginia Crosbie (Ynys Môn) (Con)
Andrew Bowie
My hon. Friend is another great champion for nuclear. It gave me great pleasure to visit her constituency just a few weeks ago to see the great work being done at Sellafield. As we have set out, we aim to deploy up to 24 GW of nuclear energy by 2050, and we remain open to all available technologies that will deliver it. We are developing a new national policy statement that will provide the planning framework for new nuclear power beyond 2025. We are consulting on a proposed way forward for determining how new nuclear developments might be located.
Sammy Wilson (East Antrim) (DUP)
This year, receipts from the emissions trading scheme will reach a new peak of £6.2 billion. The effects of attacks on energy-intensive industries are felt by workers in the aluminium and steel industries, and this week by workers at Grangemouth, where one of our few remaining oil refineries is going to close. Despite what the Minister said earlier, is it not a fact that, rather than helping energy-intensive industries, net zero policies are destroying them and sending them overseas?
Oral Answers to Questions
Lindsay Hoyle Excerpts(2 years, 10 months ago)
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Selaine Saxby (North Devon) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Our contracts for difference scheme is a UK success story, having contracted more than 30 GW of capacity, including 20 GW of offshore wind, since 2014. AR5 delivered a record number of clean energy projects, enough to power the equivalent of 2 million homes, and the Government’s commitment to offshore wind remains unchanged, which is 50 GW by 2030.
Claire Coutinho
I know that as chair of the all-party group on the Celtic sea my hon. Friend is a long-standing supporter of offshore wind. We have announced that AR6 will open in March 2024 and we have published an indicative timetable. We are supporting research and development in floating wind technology via the floating offshore wind demonstration programme, announcing up to £160 million in capital grant funding.
Mr Speaker
Can we work to the order, as it is a grouped question? The question should not be answered in that way. Selaine Saxby should be asking a direct question.
Selaine Saxby
Thank you, Mr Speaker. I am keen to understand better what more can be done to assist floating offshore wind in AR6 following what happened in AR5.
Claire Coutinho
I know my hon. Friend is a long-standing supporter of offshore wind. We have announced that AR6 will open in March 2024 and we have published that timetable. We are supporting floating wind technology through different programmes and manufacturing investment schemes too.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
We also welcome the Secretary of State to the Dispatch Box. With many renewable projects built on the strength of contracts for difference, but with reports of many not invoking these contracts and instead benefiting from the higher energy prices, can the contracts in principle be invoked later, when prices fall, or could the Government enforce the invoking of the CfD contracts now, at the start of the generation of these projects, rather than their taking the high prices while they can?
Edward Miliband (Doncaster North) (Lab)
I wish the Clerk of the House well in the future, and I warmly welcome the Secretary of State to her new role and congratulate her on her appointment to the Cabinet. I look forward to working together. Let us start with the truth. The offshore wind auction that she inherited was a totally avoidable disaster. It means another lost year for our country and another year of higher bills, and it is because Ministers obstinately refused to listen to warning after warning from industry. RenewableUK estimates that the auction failure will add £2 billion to bills. What is the Secretary of State’s estimate of the cost to families of this fiasco?
Edward Miliband
I am afraid the Secretary of State is quite wrong about that, because Ireland adjusted the price and had 3 GW of offshore wind. Let us talk about the way that this Government are jeopardising our energy security. They have delivered—[Interruption.]
Mr Speaker
Order. Mr Stuart, I know this is the last day before the recess and you are excited to get some freedom, but let’s save it.
Edward Miliband
This Government have delivered the worst cost of living crisis in a generation. There is a pattern here: they banned onshore wind and raised bills, they slashed energy efficiency and raised bills, and now they have trashed offshore wind, raising bills. That is why we are so exposed. I know that the right hon. Lady did not make those decisions, but now that she is the Secretary of State, she needs to tell us, after 13 years of failure, what is she going to do differently?
Claire Coutinho
Let me tell the right hon. Gentleman about the last 13 years. We have decarbonised faster than any G7 country, while also growing the economy. We have grown renewable energy from 7% of our electricity when Labour left power to 50% now. I am proud of what we have achieved over the last 13 years. We have a proud record when it comes to climate change and a proud record when it comes to renewable energy, and I am proud to defend it.
Dave Doogan (Angus) (SNP)
I welcome the Secretary of State to her new role. I wish I could have welcomed her to her new role on 5 September, when we had the remaining stages of the Energy Bill, but she was not here. I wish I could have welcomed her on 7 September for the urgent question on the auction round 5 strike price, but she was not here for that either, so what has the new Secretary of State been doing in the midst of the chronic energy crisis facing our constituents and allowing her Department to see shovel-ready offshore wind go into abeyance? What has she been doing?
Graham Stuart
China has even greater offshore wind capacity than ourselves—it has the largest wind and largest solar capacity in the world—and it has a significant level of production. We recognise that we will need technology from all over the world, including China, if we are to meet our net zero aspirations.
Graham Stuart
On 5 September, the Government announced changes to national planning policy for onshore wind in England, giving greater flexibility to allocate suitable areas and to address the planning impact of onshore wind. I agree with the hon. Lady; I am an enthusiast for more onshore wind where it goes with the grain of communities, and we will continue to pursue that to make sure that we can realise the benefits that come from it.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister will know, although he unaccountably did not tell us, that there was precisely no new onshore wind in England in the recent AR5. The Minister claims that the latest compromised wording, which he alluded to, will lift the ban on onshore wind, but he knows really that that is not so and he knows what the industry has been saying about it and why it will not invest for the future. The result is no new onshore wind getting built in the medium-term, higher bills for families and less energy security for the country. Why will his Department not just face down his luddite Back Benchers, introduce fair planning regulations for onshore wind and get the industry restarted across England?
Andrew Bowie
As the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) suggests from a sedentary position, we are doing lots and lots. Specifically, the Government are using strategic planning to support investment ahead of the need in the networks, including the south-west. The first example of that was last year’s holistic network design, which set out a blueprint for connecting new offshore wind projects to the grid by 2030. An update to the holistic network design follow-up exercise, HND 2, will be published early next year and provide recommendations for the connection of floating offshore wind specifically in the Celtic sea. For the first time, offshore wind developers participating in the Crown Estate’s leasing round 5 will receive clarity over their grid connection from the electricity system operator at the same time as a secure seabed lease.
Clive Lewis (Norwich South) (Lab)
The Minister may be surprised—[Interruption.] Indeed, Question 9, Mr Speaker.
The Minister for Energy Security and Net Zero (Graham Stuart)
The Government have created an online advice service to help consumers in replacing fossil fuel heating systems, including oil boilers, with a heat pump. We are also providing funding through the boiler upgrade scheme.
Sir Desmond Swayne
Absolutely, Mr Speaker. There is a panic now in Germany as its premature ban on gas-fired boilers approaches. The Minister will want to avoid a similar panic as we approach our own premature ban on oil-fired boilers, won’t he?
Claire Coutinho
I would be delighted to meet my right hon. Friend and discuss that particular case. We keep looking at everything we can do to support business, as we have done this entire time.
Sarah Jones (Croydon Central) (Lab)
For years people have been calling on the Government to have a proper plan to help our steel industry decarbonise. Instead, the industry has lurched from crisis to crisis, and now the Government are spending £500 million in a deal that will make thousands of Port Talbot steelworkers redundant. Is it not the simple truth that jobs and wealth will be lost because there is no comprehensive plan for steel, automotive or any industry that needs to decarbonise?
Claire Coutinho
I thank my right hon. Friend for raising this issue today. I understand that concerns have been raised by local communities about the National Grid electricity transmission plans for network reinforcement between Norwich and Tilbury. The Minister for Nuclear and Networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), has visited the area and will continue to engage with colleagues, but I am also happy to meet local MPs to discuss the matter further.
Graham Stuart
Further to that point of order, Mr Speaker. The hon. Lady is quite right to raise this in that way, and I am happy both to withdraw that and to apologise to her for getting my facts wrong on that occasion.
Offshore Wind Contracts
Lindsay Hoyle Excerpts(2 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Graham Stuart
I thank my hon. Friend, who is an absolute champion of floating wind and the economic opportunities it offers for her area and the rest of the UK. I was delighted to speak to her last week and meet her yesterday, and I pay tribute to her efforts. We have the largest floating wind pipeline in the world, based on confirmed seabed exclusivity arrangements. We have around 25 GW already identified, including through the ScotWind leasing round and innovation and targeted oil and gas—INTOG—processes. As she, as a great champion, knows, the Crown Estate is moving forward with its leasing round 5 for up to 4 GW of capacity in the Celtic sea this year. We have been the world leader on floating energy and we are going to stay the world leader. Thanks to the efforts of my hon. Friend, I know that we will have support across the House.
Dave Doogan (Angus) (SNP)
The Minister failed to point out that 3.7 GW is scarcely half of what was achieved in auction round 5. He also failed to mention, when he was heralding onshore wind, that 90% of that will be found in Scotland. Since 2014, the four auction rounds have yielded 1 GW, 2.5 GW, 5 GW and 7 GW, so a nil return is an utter catastrophe.
The critical need for massive investment in offshore is patently obvious for bills and for the climate, yet this ambition has been thwarted by an incompetent previous Secretary of State and by the Treasury, which knows the price of everything and the value of nothing. Can the Minister assure us that the Department will get round the table with industry as a matter of urgency to try to repair this damage? Industry needs a strike price that reflects the not-mutually-exclusive goals of lower bills, net zero, and jobs and investment in Scotland and elsewhere. Can he confirm whether a recovery group for auction round 5 will be convened by him or the Secretary of State to try to get this catastrophe resolved? And where is she?
Graham Stuart
Until wind capacity is constructed, it is not normally connected to the grid. That which has not been connected to the grid will need to be connected to the grid.
Graham Stuart
We typically set out the key auction parameters in November, and those include the ceiling of what we will pay for particular technologies. We do that based on our analysis of supply chain costs, and we also commission external analysis. The most important data of all comes from individual auction rounds, and it is on that basis that we set the price parameters. The industry warned us, as it does every year, that it wants us to pay more. We always have to make a judgment call between making sure that we minimise—[Interruption.] It would be so much easier to give my answer, Mr Speaker, if the right hon. Member for Doncaster North (Edward Miliband) would stop—
Mr Speaker
Order. I think that, as a man who was always happy to heckle from the Back Benches, the Minister deserves a little bit himself.
Graham Stuart
We set the prices, and we immediately learn from each auction. One of the reasons for having an annual auction is that we can quickly adjust and, as I said, projects can then come into the next round with minimal delay.
Graham Stuart
I suggest that it is the hon. Gentleman and his colleagues who need to commit to facilitating that in Northern Ireland. Energy is devolved and it is up to them to get the devolved Assembly up and running. If they get devolved government going in Northern Ireland, they will unleash these opportunities. It is not for this Department, which is not responsible for energy in Northern Ireland.