Lord Hylton
To ask Her Majesty’s Government when they expect to announce a decision on the latest plan for a major Severn barrage.
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma)
My Lords, we recognise the potential benefits of the barrage after looking at this carefully in a two-year cross-government feasibility study that was completed in October 2010. Before the current proposal can be subject to further consideration, it will need to be developed in considerably more detail to demonstrate, in particular, robust environmental mitigation plans, evidence of the low-head turbine impact, evidence of net regional and national job benefits and affordability for consumers. The Government remain open to hearing about well developed proposals for harnessing energy from the Severn and elsewhere.
Lord Hylton
My Lords, I thank the noble Baroness for her reply. Does she agree that uncertainty is bad for everyone? If it went ahead, would a big scheme not replace several new nuclear power stations? However, if there is no big scheme it would give us the opportunity to design smaller schemes—for example, at the English Stones or by means of tidal canals. Will the Government at least update and amplify their earlier study so that the earliest possible decision can be reached?
Baroness Verma
My Lords, I understand the noble Lord’s concerns. The consortium to which he refers submitted a business case to DECC in November 2011. In 2012 we asked for some supplementary information and we have had a series of meetings with the consortium at ministerial and official level, but none of these satisfies having enough of the detailed evidence on the economic and environmental impacts of the scheme that we require. The noble Lord will understand that until we get more detail about the plans it will be difficult to make a decision.
Lord Anderson of Swansea
My Lords, would the noble Baroness put the Hafren Power proposal within her category of well developed proposals? From the viewpoint of south Wales, it would be a tragedy if we did not look seriously at this—the biggest renewable energy project in Europe, which would harvest the natural powers of the Severn—and missed the opportunity. It would generate 50,000 jobs and improve flood protection. Most importantly, it could be developed without any contribution from public funds. Is the noble Baroness aware that there is considerable support in Wales for this project, and are the Government giving it a fair wind? What is the Government’s preliminary response to the Hafren Power proposal?
Baroness Verma
My Lords, in my Answer to the noble Lord, Lord Hylton, I laid out that we are taking all proposals very seriously. However, as the noble Lord will be aware, it would not be right for the Government to take a decision until they are completely satisfied that the mitigation plans against environmental impacts that need to be in place are in place. We have made it clear to all consortia that we are interested in looking at how we can harness energy. We need a good mixture of energy but we also need to ensure that it is viable economically and environmentally.
Lord Crickhowell
My Lords, is my noble friend aware that I have studied the latest proposals for the scheme extremely carefully? I agree that they are at the most rudimentary stage. The only positive feature that I could find in them is that the noble Lord, Lord Rowe-Beddoe, is a non-executive director.
Baroness Verma
I am extremely grateful for my noble friend’s support for my Answer. I reiterate that it is incumbent on all Governments to make sure that whatever projects they agree to have looked at all the detail. Thus far, we are not satisfied that we have had enough detail from the consortium on this.
Lord Wigley
My Lords, subject to the environmental conditions that the Minister mentioned being met, given that the project could generate 5% of the UK’s energy needs, and in view of the Welsh economy’s need for a kick-start of this sort, will she give an assurance that the Government will support this project?
Baroness Verma
I cannot say that the Government will support this project until we are satisfied that all the details that are needed to ensure that it is environmentally and economically viable are met. Those conditions have not yet been met.
Lord German
My Lords, the proposal currently before the Government is not for a Severn barrage, it is for a Bristol Channel barrage. As such, it is a very large scheme indeed and has enormous environmental, physical and economic costs. Have the Government made an assessment of the costs to energy consumers—in household energy bills—of this proposal compared to other forms of low-carbon energy, such as offshore wind?
Baroness Verma
My noble friend raises an important point. Until we have a more detailed plan, we are unable, on the information we have at the moment, to make a complete assessment of the impact on consumers. We do know that alternative energy is providing us with good value at the moment, and offshore wind is one of those energies.
Lord Howarth of Newport
Developing the important questions just asked by my noble friend Lord Anderson and the noble Lord, Lord Wigley, and accepting the importance of the environmental considerations that the Minister has rightly mentioned, will she bear in mind that this project is convincingly financeable at present and prospective rates of interest? That is an important reason for a quick decision. Effectively, it would be a free gift of an enormous increase in renewable energy in Britain. It would also be of great benefit to reviving the economy and employment in south-east Wales.
Baroness Verma
I come back to my original point, which I have stated a number of times. I understand where the noble Lord is coming from in his commentary. However, given that the consortium will no doubt look for subsidies for the contract from energy bills for this particular energy as well, it is incumbent on the Government to make sure that they deliver best value to the British public. At this time, we are working with the consortium on a much more detailed plan. We have not ruled it out, but we want more detail about what it proposes to do. At the moment we are not satisfied on that.