(1 week ago)
Commons ChamberWe are genuinely excited about any new technologies that come forward, so we are very interested in innovation like that. We need a real mix of technologies to achieve our target, so I am very happy to find out more about that. I am just trying to work out whether I can somehow get a visit to space to see these projects.
We are really excited about the University of York’s work to develop deep geothermal heat, and we believe that greater cost efficiencies can be achieved by sequencing projects, especially when it comes to hiring the drilling rig and equipment. How are the Government driving efficiencies in deep geothermal heat, so that future developments, such as that in York Central, are more viable?
I was delighted to meet my hon. Friend recently to talk about this exciting project in York and the wider developments that go alongside it. We see huge potential from geothermal. As she rightly says, how we structure these projects is important if we are to take them forward as quickly as possible. My noble Friend Lord Whitehead has a particular focus on geothermal, and I am sure that he will be very happy to meet my hon. Friend.
(1 month, 2 weeks ago)
Commons ChamberI just do not agree with the right hon. Gentleman—he and I have been having this disagreement for 20 years. I will concentrate on his first question. The truth is—I say this to him in all honesty—if we disengage from the world, it will not serve Britain’s interests; it will harm our interests. When we think about all the problems that the world faces, including but not limited to the climate crisis, multilateralism and working with others is the only solution. The idea that we should not engage in COP because it involves travel seems very mistaken.
Leadership at home, leadership globally, and now we need leadership on the fossil fuels road map. I am sure that my right hon. Friend will play a pivotal role in setting the terms of reference, the scope and the ambition of that. It is also important to build the industrial strategy to ensure that we can see a just transition for so many countries. How will he lead that opportunity for our country and others to ensure that fossil fuels are the focus leading into COP31?
My hon. Friend makes a really important point, and I will concentrate on the first bit of her question. This is very much about the just transition. Seventy thousand jobs were lost in the North sea under the last Government and they did not put in place the alternatives. That is why our investments in carbon capture and storage, offshore wind, electricity networks and all those things are crucial to provide the jobs of the future, as well as having North sea oil and gas fields open for their lifetime. We need to do both those things, and that is what the Government are determined to do.
(1 month, 3 weeks ago)
Commons Chamber
Dr Chowns
I am not an engineer, and I must confess to having some doubts, certainly about HVO, so I would need to engage in a bit more conversation on that subject. As for ground source heat pumps—yes, absolutely, although I understand that air source is normally more efficient. In my constituency we have some water source heat pumps as well, so all sorts of wonderful technologies are possible.
My hon. Friend the Member for Stratford-on-Avon (Manuela Perteghella) drew attention to the excellent work done by charitable organisations in this sector, but fundamentally none of it is a substitute for a decent, proper, national, strategic, well-funded and long-term programme of home insulation to tackle the problem at its root. If we have delivery routes based only on profitability for private contractors, whole swathes of the country will be left behind. We have had problems, such as those highlighted by the National Audit Office recently, that are related to short-termism and profiteering by some rogue contractors.
Retrofitting homes is central to solving fuel poverty. Insulation and proper energy efficiency measures reduce bills and cut emissions. Upgrading a typical home from an energy performance certificate rating of D to EPC C— I recognise that EPCs are not perfect, but I will leave that aside for the moment—would save households around £210 a year. That is a significant amount of real money for families who need it, and it is also good economics for the country. Investments in innovation and home energy efficiency pay back in lower bills, reduced pressure on the NHS, health savings, which are related to better health outcomes, and, of course, jobs created up and down the supply chain. We want to be investing in these new green industries.
It is important to acknowledge that there is a history in this sector; we have been here before. Past retrofit schemes have been structured in ways that prioritised speed and profit over quality and need, allowing cowboy contractors to exploit the system. That was in significant part due to the short-termism of those programmes, which limped from year to year with single-year funding allocations. It was utterly counterproductive, and I saw that myself as I wrestled with such programmes when I was working as a councillor and as a cabinet member with responsibility for energy and environment. We need long-term policy certainty. The colleges providing the skills training, the businesses wanting to support apprentices and take them on, and the companies wanting to join the supply chain need that long-term policy certainty, which is in the gift of the Government.
The National Audit Office recently reported very serious quality failures in recent ECO4 retrofit installations, leading to significant health risks for thousands of households. The Government absolutely must not allow the same mistakes to be repeated in the warm homes plan. The plan must commit not only to making homes warmer and bringing down bills for the millions struggling across the country, but to ensuring that no one ends up in a worse financial situation through having used a Government retrofit scheme. That is why the warm homes plan must promise homes that are not only warmer, but retrofitted properly by those with appropriate certification, and must be subject to independent checks.
The Treasury is tempted by immediate headline reductions in bills, but if the Government reduce or eliminate the ECO scheme and use the warm homes plan money to backfill those losses, the result will be fewer homes upgraded, fewer people protected from fuel poverty, and a greater long-term cost to the public purse and to our national health.
I am really grateful to the hon. Lady for raising this issue, because the two things are intrinsically linked. It is absolutely vital that we have a strategic plan that brings together the issues that cause fuel poverty, including poorly insulated homes. Does she agree that the Government need to have a strategic plan that looks at geography as well as degree of poverty, in order to ensure that people’s homes and their finances are insulated?
Dr Chowns
I absolutely agree with the hon. Member, who is a fantastic champion for health. She pays attention to the needs of the most vulnerable in our society, and ensures that policy really addresses the root issues that people face. I agree, and that is why I am so deeply concerned that the Government are flying this kite, and suggesting that they will start plugging gaps in the cost of their energy bills policy by using the warm homes plan money. Instead, they should introduce a wealth tax; that could be another source of funding for this endeavour.
In plain language, taking money out of the warm homes plan to fill a gap that would be created by abolishing ECO is robbing Peter to pay Paul. It is completely short-sighted. We absolutely need to cut energy bills, and we need as much investment as possible—as much as is needed—in the home insulation programmes that will provide the long-term solution to the problem of fuel poverty. This is not an either/or choice. We can and must make bills more affordable, and must at the same time invest in home upgrades to create future savings. We do not need to choose between warmth today and efficiency tomorrow. I mentioned a wealth tax; a 1% tax on wealth above £10 million, and a 2% tax on wealth above £1 billion, would raise at least £14.8 billion. That is way more than enough to pay for the cost of electricity bills policy, and to scale up, not down, the warm homes plan.
I want to set out briefly what a responsible warm homes plan must contain. First, it must treat the worst affected first, as hon. Members from across the House have said. It must prioritise low-income and vulnerable households and the coldest and least energy efficient homes, and treat warmth as a basic human right.
(5 months, 4 weeks ago)
Commons ChamberI congratulate the hon. Lady’s constituents on what they are doing to find regenerative ways of farming. My right hon. Friend the Environment Secretary takes the matter incredibly seriously, and we have structures in place that can help to incentivise that, but I think he would say that of course we need to do more on these issues. The hon. Lady has put it very eloquently.
I thank my right hon. Friend for making such a pertinent statement when the planet is in such a critical condition. I also thank him for his domestic and global leadership. The BioYorkshire project will create 4,000 jobs, helping us to see a green transition but also ensuring that we have future agriculture at the highest level of science. Will my right hon. Friend ensure that this Government, unlike the last, fund that sufficiently so that we can see a real transition in farming and in other areas of climate-mitigating science?
I congratulate my hon. Friend on raising what sounds like an incredibly exciting project. On all sides of the House—well, on a number of sides of the House—we can hear fantastic examples of what local people are doing. In a sense, that should be our inspiration. Government is trying to do its bit, but local people in communities across Britain are doing theirs as well.
(7 months ago)
Commons ChamberHappy birthday, Mr Speaker.
The York Central development site at the heart of my constituency has been found to be a rich source of deep geothermal energy. Will the Minister meet me to look at how we can bring this on stream to heat the 2,500 homes and support the 12,500 jobs there will be on that site?
I am very happy to meet my hon. Friend. There are a number of schemes like this already. The Mining Remediation Authority has a number of projects under way. There is huge potential, and I am happy to meet her to discuss it.
(9 months, 2 weeks ago)
Commons ChamberI do not disagree with that at all, and that is possible. Nothing forces Great British Energy, or any other company, to take investment from any individual or company. They can choose not to do so for a whole variety of reasons, and if one of those reasons is credible evidence of modern slavery in the supply chain, I would fully expect them not to invest in those companies. That is exactly what we are talking about today. The point is that that conversation must be broader than one just about Great British Energy. It is about wider supply chains and companies right across the economy, and that is what we are hoping to tackle.
In parallel, although the energy sector is particularly important to me, I want to work across Government to outline a comprehensive plan to tackle modern slavery, which is a question right across the economy. Rather than dealing with the problem on a company-by-company basis, we must look to do so more broadly. To drive forward that work, I confirm that in the coming weeks I will convene cross-departmental ministerial meetings involving the Department for Business and Trade, the Home Office, the Foreign, Commonwealth and Development Office and my Department to discuss how we can accelerate work across Government on this really important issue.
I am grateful to the Minister for his speech and the consideration that he is giving to this issue. Will he look at a reverse burden of proof so that, instead of proving an exclusion, it is switched to show no association with modern slavery?
My hon. Friend makes a good point. I will come to that briefly in a moment.
All of this work builds on the implementation of the new procurement regime, which focuses on ensuring fair and open competition and treating suppliers equally, as well as the work that we are doing on the relaunched solar taskforce—it started under the previous Government and has continued under this Government—to develop resilient, sustainable and innovative solar supply chains that are free from forced labour.
We recognise that the landscape has shifted since the Modern Slavery Act came into effect, which is why yesterday the Home Office published updated statutory guidance on transparency in supply chains that provides comprehensive and practical advice for businesses on how to tackle forced labour in their supply chains. Great British Energy will, of course, follow any new measures on modern slavery to which it is subjected, just as any responsible public or private body should. I hope that the new steps I have outlined will reassure the House that Departments across Government will continue to work intensively on this issue.
Before I move on, I will reflect briefly on amendment (b) to Lords amendment 2, tabled by my hon. Friend the Member for Leeds Central and Headingley (Alex Sobel), which would require the Independent Anti-Slavery Commissioner to define “credible evidence” in Lords amendment 2. While I thank him for the amendment, we have to resist it as the Independent Anti-Slavery Commissioner’s role was established to encourage good practice rather than to look specifically into supply chains of individual companies. The amendment would place a significant lawmaking function on the commissioner, which the role was not designed for, and is currently not within the commissioner’s powers. The amendment would also have wider implications for how evidence of modern slavery is assessed and could create unnecessary legal uncertainty and precedent.
I turn to the remaining amendments. The Government were pleased to table Lords amendment 1 and Lords amendments 3 to 12 following positive discussions with peers in the other place. Lords amendment 1 puts community energy on the face of the Bill. The Government had a manifesto commitment to deliver a step change in community energy across the UK. We set up GBE to deliver our local power plan: it is at the heart of our plans for GBE. However, we recognise that during the Bill’s passage, it was highlighted that the role of community energy should be made explicit in the Bill. As my colleagues in the other place said, the Government have accepted that, and it is right that that is now in the Bill.
(10 months, 1 week ago)
Commons ChamberThe hon. Member is right, and I join him in paying tribute to the BGS, an organisation I have had the pleasure of working with over recent years. It has done fantastic work in mapping and identifying the potential, and with funding it will have the appetite to go even further, reducing uncertainty by helping developers and investors to understand the resources underneath our feet.
The UK is already a world leader in tackling climate change and clean energy, having been the first major economy to halve our emissions, and renewables now account for more than 50% of our electricity, up from just 7% in 2010. With deep sedimentary basins in east Yorkshire and Cheshire, granites in Cornwall and Scotland, hot sedimentary aquifers in Surrey, Dorset, and Sussex�in my constituency�the UK�s unique geography puts us in an ideal position to exploit the benefits of geothermal energy.
I am grateful for the work that the hon. Member has done in this area. York has rich sources of deep geothermal. The York Central site could heat 30,000 homes in my constituency, yet the local authority and other bodies do not have the confidence to bring those projects on board. Does he agree that the Government could provide tools and support to enable such projects to come to fruition, as well as just improve basic understanding?
The hon. Member is completely right�forgive me, she is also a member of the APPG although I did not recognise that at the start of my remarks. One thing we can do through the APPG�we started to do this in the last Parliament, and I am trying to reconstitute it�is to help interested local authorities form a group and support them. This technology is new to them, and they do not necessarily have the expertise and understanding. Again, the hon. Member is right: these are the sorts of things that a comprehensive Government-led strategy could help to address close the gaps.
As I said, the resource in Europe, and the rocks that are being exploited, are essentially exactly the same veins of rock that cross the channel. There is no geological difference and no less potential than with the rocks that are being exploited in Europe.
It is true that the heat and rocks necessary for deep geothermal electricity are rarer here in the UK, with Cornwall leading the field, which is where the projects I mentioned are getting off the ground, but historically the focus on electricity has caused us to overlook the potential for heat.
The Association for Renewable Energy and Clean Technology�REA�worked with Arup to assess the UK�s potential. They estimated that the UK could support 360 geothermal plants, producing 15,000 GW of heat each year, which could supply heating to over 2 million homes through heat networks. Additionally, some of those plants could generate around 400 GW of electricity annually, enough to power a further 150,000 homes.
The Minister will be looking closely at securing the best possible value for money from every penny invested in renewable technologies, but I want to make four points about the way in which this exercise should be undertaken, because too narrow a framework would underestimate the benefits of deep geothermal to our economy overall.
First, as I alluded to earlier, solar and wind are cheaper now, but they did not used to be and we need to think about the potential trend costs. Secondly, as mentioned, deep geothermal is baseload, unlike solar and wind, and that has to be given due consideration. Thirdly, there is the question of where the investment will end up. I had the opportunity to work with the Durham Energy Institute as part of a national review into deep geothermal for the previous Government. We identified that deep geothermal can play a key role in levelling up, with six of the 10 least economically resilient local authorities also having the highest geothermal potential. Some 44% of the list of high potential locations for deep geothermal fall within the top 100 UK local authorities in need of levelling up, three times the amount that we would expect as a result of chance. Investing in the sector would create thousands of well-paid jobs and drive green growth in areas that need it most. Fourthly, deep geothermal provides a natural transition for oil and gas workers, as many skills, such as drilling, are directly transferable. Oil and gas companies�sometimes UK companies�are delivering these projects across Europe. Surely this is the obvious industry to invest in to protect those jobs and businesses as we transition.
How might we go further in the short term? I have worked with the industry to develop a ready-made plan. I ask the Minister to look closely at the proposals that the APPG have produced to create a carve-out in the public sector decarbonisation scheme to unlock this opportunity. The PSD scheme has already played a crucial role in helping public sector buildings transition to low carbon heating solutions. However, a specific programme could be carved out to support an initial cohort of deep geothermal projects, ensuring that schools, hospitals and other public buildings can benefit from this reliable, renewable heat source. By doing so, the Government would not only accelerate the decarbonisation of public infrastructure, but provide a strong foundation for the wider geothermal industry to scale up and attract investment.
I have spoken in the Chamber before about how hospitals are fantastic anchor candidates for deep geothermal plants. Industry leaders have identified that, of the 210 NHS hospitals in England and Wales that have been prioritised for decarbonisation due to their high heat demand, 109 overlie potential geothermal aquifers. The advantage of working across the NHS is that we can bundle up opportunities to create a bigger investment opportunity. I know that hospitals across the country are already exploring this, including Eastbourne district general hospital, which services my constituents in Bexhill and Battle.
One of the challenges for deep geothermal is scale of cost and uncertainty. Solar and wind are cheaper and more certain investments. A single geothermal plant is expensive and cannot be guaranteed to tap into the reserves the analysis suggests will be found. By pooling together the investment opportunity of a number of sites, economies of scale are created, the risks of not all the sites delivering can be factored in and the numbers can still be made to add up.
The private sector is willing and able to invest in such an opportunity. I have personally met representatives from a number of capital funds and deep geothermal developers and they would leap at such a project. We estimate that a dedicated fund of just �15 million for 10 plants at 10 public sector sites could unlock �250 million of private sector investment and kick-start a wider industry in the UK. Will the Minister meet me and other members of the APPG to discuss that in the near future?
Alongside that, there is a powerful argument for a broader geothermal development incentive, modelled on the heat incentive, which will provide businesses with confidence that geothermal is part of the UK�s energy future. It could be modelled on contracts for difference, ensuring a competitive process, but by offering scale we would again be reducing risk for developments.
I know there are concerns about open-ended support for any industry, but the aforementioned REA-Arup report modelled support for only an initial wave of 30 projects that would help establish a scaled industry in the UK, which could then stand on its own two feet.
Establishing a deep geothermal strategy is crucial to setting clear targets and providing a long-term road map for the sector. Will the Minister advise whether the Government will produce such a strategy? Government support is key to enabling a route to market for the sector. I know the Government are shortly due to publish a review of the comparative costs of deep geothermal. When does the Minister expect the review to be published? That would provide a welcome update. I know that industry stakeholders that work with the APPG and others would be happy to act as critical friends of that review ahead of publication. Would the Minister be happy to facilitate that? It is so important to ensure that this review has looked at all the evidence and can make full use of the experience of industry.
The APPG also considers and is trying to raise awareness of the benefits of shallow geothermal, as the hon. Member for Camborne and Redruth (Perran Moon) mentioned. While it is very closely related to deep geothermal, as we might expect, that industry faces different challenges, but it could offer solutions even more widely. I know that significant private sector investment is available. Again, we are talking about a technology that could reduce the strain on electricity-driven grid connections. For both sectors, GB Energy might well be expected to play a vital role. Can the Minister confirm my expectation that its remit will extend to heat as much as to electricity, and can she confirm whether the mandate from Government will ask it to consider deep geothermal specifically?
Miatta Fahnbulleh
We know that there is a big opportunity for district heating, particularly in some of our urban centres. In the work that we are trying to do through the warm homes plan, we are thinking about where those opportunities are and making sure that we work with regional and local government to do some of the planning and the identification of those opportunities. That means that we can take a strategic approach, area by area and place by place.
I am really grateful for all that the Minister is doing in this area. However, some of this work is quite time-sensitive; for instance, we have a major development in York, the first phase of which goes into planning in September. We very much want to work with Government to see what we can deliver in York Central. Would the Minister be prepared to work with us to see whether we can get this model working on some of those micro sites?
(1 year, 3 months ago)
Commons Chamber
Miatta Fahnbulleh
We are having to clean up the mess that the Opposition left us. Yes, we have means-tested the winter fuel payment, but we have also been clear that we will do everything we can do to support vulnerable households. That is why we have extended the take-up of pension credit and the household support fund, and we are working flat out with energy suppliers to provide additional support to all vulnerable households this winter.
I thank the Minister for her work. Warm home prescriptions can target that support towards elderly people and those with underlying health conditions, saving our NHS as well as keeping people warm over the winter. The pilot has shown real benefit. Will she meet me to discuss that and other options to keep old people warm this winter?
Miatta Fahnbulleh
We want to work with anyone who will help us reach vulnerable households. I am very happy to meet my hon. Friend to look at the full range of options available.
(1 year, 5 months ago)
Commons ChamberI welcome the hon. Lady to her place. Great British Energy will of course have a strong interest in nuclear power, working with Great British Nuclear. It is very important for the future. This Government were very clear in our manifesto about the role that nuclear power—both large-scale nuclear and SMRs—can play. I know that the last Government purchased the site for Wylfa, and it is something that we will certainly be looking at.
I welcome my right hon. Friend to his place and congratulate him on his ambition. BioYorkshire is a project—a green new deal—to create 4,000 green-collar jobs and upskill 25,000 workers. It will also create hundreds of spin-offs and new start-up companies focused on chemicals, agriculture and a new generation of fuels. Will he ensure that his Department has early engagement with this green new deal for York and North Yorkshire? Will he ensure that that is part of his energy superpower for the future?
I am grateful to my hon. Friend for drawing this project to my attention. In a way, the questions from both sides of the House demonstrate the huge potential we have in this area, not just to tackle the climate crisis and energy insecurity but to create the good jobs of the future. I undertake that the Department will want to look closely at her project.
(2 years, 3 months ago)
Commons ChamberThe Government set the aspiration in the clean growth strategy of upgrading as many homes as possible to energy performance certificate band C by 2035, where practical, cost-effective and affordable. We remain committed to that aspiration. Although tax policy sits with the Treasury, we are considering how to improve energy efficiency for owner-occupied homes and plan to consult by the end of 2023.
I can assure the hon. Lady that we are in constant conversations with Ofgem on such matters. Although this is a matter for Ofgem, I have a regular meeting to make sure that we are on top of this.