(9 months, 4 weeks ago)
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Ian Blackford (Ross, Skye and Lochaber) (SNP)
Dr Philippa Whitford (Central Ayrshire) (SNP)
The Secretary of State for Energy Security and Net Zero (Grant Shapps)
We are supporting Scotland through the North sea transition deal, contracts for difference for renewable energy, and more than £80 million of net zero innovation portfolio funding.
Ian Blackford
I thank the Secretary of State for that response, particularly in relation to CfDs. Will he commit today to a clear pathway for the true commercial-scale development of tidal stream energy? A ringfence in the CfD auction is welcome, but it is only scratching the surface of what the industry can deliver. Investors in projects are stalling, as they need long-term visibility. The industry—and, indeed, all of us—needs this technology to succeed. Let us unlock this predictable, renewable power and create an industry and sector that we can be proud of and that can be made on these islands. We need a commitment today that the ringfenced budget will increase, to allow costs to fall and true-scale projects to be delivered. If we want energy security, here is the pathway.
Grant Shapps
Fortunately, the answer is pretty straightforward. As the right hon. Gentleman mentioned, we are doing tidal power in this CfD round. That is to be welcomed and we look forward to this industry expanding in the future, as some of the technicalities and technical difficulties are resolved. I know that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) has visited recently to see this in action.
Dr Whitford
Energy storage is vital to managing demand as we switch to renewable electricity. Pumped storage hydro is the most efficient large-scale storage method. UK capacity could be more than doubled by six projects across Scotland that have been shovel ready for more than five years. They take a long time to build, so why are the UK Government not supporting investment in infrastructure that is critical for our future energy security?
Grant Shapps
I have discussed this matter with SSE in relation to that particular hydro storage project, and my hon. Friend the Under-Secretary of State met MSPs yesterday to discuss the subject as well. We are keen to have this kind of hydro storage, which is why our plans allow for it to be taken forward. However, I have to say to Opposition Members—all of them—that it is no good just having one kind of storage or one kind of tidal power; we also need to protect the Scottish economy with oil and gas to make sure we are not subjected to Putin or any other dictator holding us to ransom over our energy security.
Virginia Crosbie (Ynys Môn) (Con)
It is good to hear that the Secretary of State is supporting the economy in Scotland, but my question is: how are the UK Government investing in grid capacity in Wales? In Wales, such investment is crucial if we are to support energy transition projects such as the Holyhead hydrogen hub, Minesto, Morlais, BP Mona, Lightsource BP and, of course, new nuclear at Wylfa.
Grant Shapps
Grid capacity in Scotland, Wales, England and Northern Ireland is at the top of our list. The Winser review has done a lot of work to look at how we can speed up the delivery of that capacity, given the big transition that is going on and this country’s big lead in renewables, which makes that necessary.
Alan Brown (Kilmarnock and Loudoun) (SNP)
On pumped storage hydro, it is as though the Secretary of State just does not get it. It increases energy resilience and would reduce the £4.2 billion balancing costs that are getting paid out at the moment. The 1.5 GW Coire Glas scheme can be delivered in seven years, and it would power 3 million homes for a 24-hour period. The Government have found £700 million for Sizewell C and they have implemented cap and floor mechanisms for interconnectors, so why is he not having proper discussions with SSE about a cap and floor mechanism?
Grant Shapps
The Secretary of State does in fact get it, because we support the idea of having things such as hydro power. Again, I have to say that there is a choice where taxpayers’ money is spent. It has to be done competitively in the round. To be talking merely about storage and not the generation, including nuclear power, which is a key part of this country’s energy security future, simply means that the overall view that the SNP has is unbalanced when it comes to how we power our nations.
Alan Brown
The Secretary of State has proved he still does not get it—he is not having proper discussions with SSE. If we move to carbon capture and storage, the Climate Change Committee’s progress report identified “risks” and “significant risks” associated with industrial clusters and carbon dioxide storage, which proves it is nonsensical to have Acorn as a reserve. When will the Government announce the track 2 clusters and provide parity for Acorn? When does he envisage Acorn starting construction? That is vital to meet the 2030 targets.
Grant Shapps
As the hon. Gentleman knows, we have already pumped £40 million into Acorn. It is on the reserve list. He asks when; the answer is this year for track 2 and track 1 expansion. So I say it again: the Secretary of State does get it.
Bill Esterson (Sefton Central) (Lab)
The Minister for Energy Security and Net Zero (Graham Stuart)
The Government are investing billions to support the development and deployment of carbon capture, utilisation and storage, hydrogen and other decarbonisation technologies, and have a range of policies supporting industrial decarbonisation, such as the industrial energy transformation fund and local industrial decarbonisation plans.
Bill Esterson
There are 23 clean steel projects across Europe, but none in the UK. Meanwhile, the UK is the only country in the G20 where steel production is falling. Other countries recognise the importance of their domestic steel industries, and they recognise the importance of investing in low-carbon steel. Why do this Government not support our steel?
Graham Stuart
As the hon. Gentleman knows well, this Government do support the UK steel industry. On his broader point, which he mentioned in his original question, UK industrial emissions have fallen 65% since 1990, and we are making significant investments in industrial decarbonisation, not least the £20 billion announced at the end of March, which will contribute to decarbonisation through CCUS and help the steel industry.
Dominic Raab (Esher and Walton) (Con)
Do Ministers agree that the Government’s competition for small modular nuclear reactors will help provide the volume of energy we need for energy-intensive domestic industries and, over the long term, at a lower cost than previous nuclear power stations?
Graham Stuart
I thank my right hon. Friend for his question. There is enormous enthusiasm on the Government side of the House for the potential of nuclear, including small modular reactors. We are determined to see that go forward as quickly as possible, which is why the new organisation, Great British Nuclear, is doing a rapid down selection of technologies this year, precisely in order to unlock the benefits that my right hon. Friend so correctly highlights.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
On decarbonisation, many organisations, such as the Institution of Civil Engineers, are asking about the Government’s net zero growth plan, which said:
“The public will play a key role in the transition and therefore we will set out further detail on how Government will increase public engagement on net zero.”
Can the Minister clarify when that detail will be published?
Graham Stuart
I thank the Chair of the Energy Security and Net Zero Committee. He is right that as well as top-down Government policy, we must unlock the huge public desire of people to play their part and make sure we have the right information in place. That will be provided and produced as soon as possible.
Mark Pawsey (Rugby) (Con)
The Minister will welcome measures that many businesses are already undertaking simply because they are the right thing to do, including traditionally carbon-intensive industries, such as cement manufacturing. Cemex in my constituency is investing to use decarbonised raw material and trialling the use of hydrogen in the combustion process, which will significantly reduce the amount of CO2 generated by every tonne of cement manufactured in Rugby?
Graham Stuart
My hon. Friend is right, and he is right to champion those industries that are working so hard to decarbonise already. As my hon. Friend says, we have the net zero hydrogen fund, which will provide up to £240 million by 2025 to support the development and construction of new low-carbon hydrogen production plants, which will be able to assist in cement as well as other industries.
Dame Maria Miller (Basingstoke) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a priority for this Government that all net zero energy infrastructure is built, operated and maintained in an appropriate and safe way. My officials work closely with the industry-led electricity storage health and safety governance group to ensure an appropriate, robust and future-proofed health and safety framework is sustained as storage deployment increases.
Dame Maria Miller
We need to increase power storage, but the potential fire risks associated with lithium-ion battery storage facilities are now becoming widely acknowledged. What is my hon. Friend doing to ensure those facilities are not built in inappropriate locations, such as Basing Fenn in my constituency, which is a site sandwiched between a rare north-flowing, salmonid chalk stream and a hospital?
Andrew Bowie
I thank my right hon. Friend for her question and her tireless campaigning on this important issue. As I discussed in that very positive meeting that I had with her yesterday, I have been working with colleagues across Government to establish the appropriate treatment of these facilities in planning and environmental regulation. Every site should be considered on its own merits and is a decision for our local authorities.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will this Government stop chuntering on about batteries and battery storage all the time? Will they get down to JCB and see its innovative new hydrogen fuel car and heavy goods vehicle? Is it not about time that we realised that hydrogen is the future and that this Government should be building a pipeline of hydrogen throughout the country?
Andrew Bowie
I will not be drawn on chuntering on by the hon. Gentleman, but let me just say that it was this Government who allowed JCB to proceed with that technology and to develop it at commercial scale. I am pleased to tell him that the Secretary of State will be visiting imminently.
Stephen Kinnock (Aberavon) (Lab)
The Minister for Energy Security and Net Zero (Graham Stuart)
The Government are committed to placing the UK at the forefront of the floating wind sector. I am delighted to announce that the Crown estate will be providing an update to industry this morning on a 4 GW leasing round in the Celtic sea and has already commissioned the survey work required to support it.
Stephen Kinnock
The development of floating offshore wind in the Celtic sea is a once-in-a-generation opportunity for my Aberavon constituency, for Wales and for the entire United Kingdom. Last week, the Climate Change Committee rightly blasted the Government for failing to deliver on their net zero commitment. I am profoundly concerned that floating offshore wind will be squandered due to the lack of grip and direction that the committee described. When will the Minister be bringing forward an industrial strategy for floating offshore wind, which will ensure that Welsh manufacturing and Welsh jobs are placed at the heart of turbine and substructure fabrication, starting with the vital seabed licensing process.
Graham Stuart
I thank the hon. Gentleman for his question. We are the world leader in floating offshore wind and we are determined to stay there in order to realise the industrial benefits, which he rightly champions, and the opportunities in Wales. The floating wind demonstration programme—[Interruption.] The Labour Front-Bench team really do not like to hear this, do they? The fact that we have cut our emissions more than any other major economy on earth under this Government is what leads those on the Labour Front Bench to sense their own inadequacy, because they know what they left behind. That floating wind demonstration programme is supporting innovation with £31 million of Government funding matched by £30 million from industry.
Mr Philip Hollobone (Kettering) (Con)
Floating offshore wind and all these exciting generation technologies are wonderful, but all of them will come to nought unless we can increase the speed and capacity of the grid connections to get the electricity onshore and to the users who need it. What is the Minister doing to sort out the national grid and to speed up the way in which grid connections are made, because, without this, we will go nowhere?
Graham Stuart
My hon. Friend puts it so well. It is so true: whatever the generation, if we cannot get the electrons where they need to go, we are frustrated. That is why we are determined to speed up the connections. That is why, from the Pick report on offshore wind to the Nick Winser review, this Government, led by the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie)—this is the first time that this country has had a networks Minister—are absolutely focused, in a laser-like way, on making sure that we speed up and get the delivery of the infrastructure that we need to deliver the green transition.
Alexander Stafford (Rother Valley) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government want communities to participate in and benefit from onshore wind proposed in their local area. On 11 May, the Government issued a consultation for onshore wind partnerships in England, proposing improvements to the current system of community engagement and benefits.
Alexander Stafford
Some energy firms give discounts to those who live near onshore wind farms when the wind blows. Unfortunately, though, that is not the case everywhere. Will the Minister look again at this policy nationally so that my constituents, such as those who live in Ulley near Penny Hill wind farm, and even myself—I live in Harthill near Loscar wind farm—will see the benefits of clean, green wind power reflected in their energy bills?
Andrew Bowie
The consultation on onshore wind partnerships proposed that the Government work with RenewableUK to update the industry-wide community benefits protocol for onshore wind in England. An updated protocol would seek to encourage more innovative approaches, for example through developers supporting local energy bill discounts. The consultation closes on 7 July.
Anna McMorrin (Cardiff North) (Lab)
I am not sure there is much point in community engagement when there is no onshore wind. We do not have any onshore wind. Last week, we heard the Climate Change Committee’s devastating report on this country’s commitment to net zero. When will this Government unlock the barriers to onshore wind?
Andrew Bowie
I completely refute the suggestion that we have no onshore wind. Onshore wind contributes 14 GW of power to the UK’s national grid as we speak, and of course we support the deployment of onshore wind with communities.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Minister is sort of right that there have been some onshore wind turbines built just recently—two since February 2022, so there is not much chance of community engagement there, to be honest. In December, the Secretary of State for Levelling Up, Housing and Communities promised that the onshore wind ban would be completely lifted by the end of April this year. Why have the Government broken that promise?
Andrew Bowie
I will take no lectures from the Labour party on developing renewable electricity. When Labour left office in 2010—[Interruption.] They do not like to hear this, but when Labour left office in 2010, less than 7% of the grid was accounted for by renewables. Now it is 43%.
Dr Whitehead
I think maybe the Government should take lessons from Labour. It is now generally understood that the Government consultation is likely to lead to only minimal relaxation of planning rules and that onshore wind will effectively remain banned. Tory peer Lord Deben, chairman of the Climate Change Committee, said of the consultation on Saturday that it is simply unacceptable that the Government are still discussing whether they are in favour of onshore wind or not when it is widely recognised as one of the cheapest forms of energy generation. He is right, is he not?
Andrew Bowie
I really wish the Labour party would stop talking down what we are doing on renewable electricity. I remind the House that the consultation on onshore wind finishes on 7 July.
Mrs Heather Wheeler (South Derbyshire) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
Wholesale energy prices have fallen significantly since the peak of the energy crisis, so the energy bill discount scheme strikes a balance between providing support and certainty to business and limiting the impact on public finances.
Mrs Wheeler
I thank my hon. Friend for a proper Derbyshire answer. Can she give more information on how the Government are working to help wedding venues and hospitality in general with extreme costs for electricity and gas, particularly where businesses have signed long-term contracts in the face of falling world prices?
Amanda Solloway
I thank my hon. Friend from South Derbyshire—it is a great county to live in, with great hospitality—for her question. Businesses, including the hospitality sector, have already benefited from the energy bill relief scheme, which ended on 31 March and provided £7.4 billion of support. We are mindful of the fixed-term contracts, which are a supplier issue, and we are constantly engaging with stakeholders and suppliers on that.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
Last week I attended the opening of the first phase of a new solar farm at Newcastle airport. It was 50% funded by the regional development fund, which post Brexit we no longer have access to. The further three phases are vital to ensure that the airport meets its net zero target and the Government meet their solar target, so what are the Government doing to ensure that those further three phases will be supported in some way by the Government?
Amanda Solloway
I thank the hon. Lady for that information. With your permission, Mr Speaker, I will take that question away and find out more details.
Kerry McCarthy (Bristol East) (Lab)
The director general of UK Steel said this week:
“There are huge question marks over if government really wants to sustain steel, the backbone of British manufacturing, or just leave it to shrink and rely on other nations’ supply.”
He is right to say that. It is four years since the Government promised the green steel fund, but not a penny has been paid. Why are the Government failing our steel communities so comprehensively?
Amanda Solloway
That is absolutely not true; we are legislating for that at the moment. It is incredibly important to the Government that we combat that and support the energy and trade-intensive industries.
Kerry McCarthy
The Committee on Climate Change said last week that
“the Government has high ambitions for decarbonisation but no policy to deliver it”.
We have been slow to react to the US Inflation Reduction Act and to the EU’s proposed green deal industrial plan. The right hon. Member for Maidenhead (Mrs May), who, for the benefit of the Minister, is not from the Labour Benches, said:
“Where the UK once led, we are now falling behind.”
When will Ministers snap out of their appalling complacency and come up with the strategy and timeline that we need to support the UK in the global race for green jobs and investment?
Amanda Solloway
We have met all our carbon targets and will continue to do so. The Government have made the commitment to continue hitting and progressing on those targets.
Clive Efford (Eltham) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
My Department has been working closely with the Department for Levelling Up, Housing and Communities on delivering the proposals in the published action plan for reforming and speeding up the nationally significant infrastructure project planning process. An important part of those reforms involves updating and strengthening the national policy statements for energy.
Clive Efford
Last weekend, James Robottom, the head of onshore wind at RenewableUK, said that he does not expect much from the Government’s consultation on planning. He said that obstacles to new onshore wind development would
“severely hinder investment in the onshore wind industry and its supply chain due to the high level of risk and uncertainty they create. We are being denied the opportunity for thousands of new jobs and billions in private investment”.
In the meantime, that is costing English families £180 per year. It means damage to the economy, damage to the environment, and higher bills for families. Is it not time that we got this useless Government out of the way so that we can sort it out?
Andrew Bowie
This useless Government who have delivered 43% renewables on to the grid! I would much rather take our record on renewables than the Labour party’s any day of the week. The consultation on national policy statements closed, as the hon. Gentleman knows, on 23 June, and the Government remain on track to present them to Parliament and bring them into effect by the end of 2023.
James Gray (North Wiltshire) (Con)
Local authorities have a presumption in favour of solar, and quite right, too, but should they not also consider the cumulative effect of solar farms? Wiltshire is the second largest county in England for solar farms. If the new Red Barn project at Kington St Michael is added, it will be one of the largest solar farms in Britain. We are covering our good agricultural land with solar farms in counties such as Wiltshire. When the forthcoming planning policy guidance is reconsidered, will the Minister undertake to include a presumption against solar farms on grade 3a and 3b agricultural land?
Andrew Bowie
Food security is incredibly important, and we will, of course, prioritise less productive land for the deployment of solar farms. Our reforms aim to ensure that infrastructure developers consider, at the outset of their programmes, how projects can address the legitimate concerns of affected communities, engaging regularly with them throughout the pre-application phase and beyond. Engaging with statutory consultees early during the pre-application stage will also benefit local communities and farmers through high-quality applications.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
The Secretary of State for Energy Security and Net Zero (Grant Shapps)
Ending Russian imports in April 2022 has shown that Russian gas belongs in the past. Our system was well supplied last winter by North sea gas and reliable imports—a far cry from Labour’s energy surrender plan, sponsored by Just Stop Oil, which would put us back at square one and in the hands of despots such as Putin and his tyrannical regime.
Mr Mohindra
I welcome the Secretary of State’s answer. Could he explain what steps his Department is taking to ensure that no country will ever be able to hold the UK to ransom through our energy supply?
Grant Shapps
It is about having a balanced energy supply, which means renewables, nuclear power, and yes, where necessary, oil and gas licences—to do without them puts the security of every single person in this country at risk and means that household bills will go up. Sadly, that is exactly the policy of His Majesty’s official Opposition.
Caroline Lucas (Brighton, Pavilion) (Green)
A recent report by the Energy and Climate Intelligence Unit shows that, regardless of Ministers’ plans to expand domestic oil and gas production, imports of gas will continue to rise significantly unless we tackle demand. New oil and gas licences simply will not deliver energy security as the oil and gas is sold at global prices on international markets. They will cost the taxpayer dearly while being a disaster for the climate. Will the Government finally do what is needed by ruling out new licences and committing instead to measures that will genuinely make the UK energy secure, including a nationwide street-by-street home insulation programme, unblocking onshore wind, and installing new solar on every roof?
Grant Shapps
We have gone from 14% of our homes being insulated under the previous Government to nearly 50%—it will be 50% this year—and we have set up an energy taskforce to reduce the usage of energy and make it more efficient. However, the policy of the hon. Lady’s party, and that of the official Opposition, of importing all the oil and gas that we require and not providing new licences is simply insane. It means that every single family in Britain will be subject to the next tyrant like Putin, and that the carbon used will be double what is taken from the North sea. It is bonkers policy.
Sir Christopher Chope (Christchurch) (Con)
The Minister for Energy Security and Net Zero (Graham Stuart)
Population growth is taken into account when setting our decarbonisation goals. Specifically, it is accounted for in our baseline emissions projections, which help determine the effort required to meet our carbon targets.
Sir Christopher Chope
Does my right hon. Friend accept that in 2050, on present Government policies, we will have 25 million more people in this country than there were in 1990, the base date for carbon dioxide emissions? He obviously accepts that a higher population leads to higher global emissions, but can he also say that when it comes to climate change, it would be a good idea for this Government to concentrate on a net migration policy, rather than net zero?
Graham Stuart
As my hon. Friend knows, the Prime Minister is absolutely determined to bring net migration down to sustainable levels. I would also point out to him that the UK does not set decarbonisation targets per capita, because all countries need to reduce emissions in absolute terms. We are determined to play our part in doing that—to move to net zero, but in a pro-growth, pro-business manner.
Kenny MacAskill (East Lothian) (Alba)
It is not simply about empowering future generations, but those that exist. That is why the roll-out of smart metering is important. The latest quarterly statistics claim that 57% of UK households have smart meters, but that masks the fact that only four out of 32 Scottish local authorities are above 50% in the roll-out of smart metering, five are below 30%, and three island councils are below 10%. All those are also the areas with the highest fuel poverty. As we approach March 2024, when radio teleswitching will go off, how will we ensure that people have access to smart metering, enabling them to get off-peak tariffs?
Graham Stuart
The hon. Gentleman is right, both to enthuse about the importance of smart metering and the benefits it can bring—even more so as we move forward in the coming years—and to highlight the importance of ensuring, as ever, that something so important is equitably distributed. I, or colleagues, would be happy to meet him to discuss how we make sure that the issues he has rightly raised are addressed.
Mr Laurence Robertson (Tewkesbury) (Con)
The Secretary of State for Energy Security and Net Zero (Grant Shapps)
The Government are supporting the installation of rooftop solar in numerous different ways: financial incentives, performance standards and the solar taskforce.
Mr Robertson
For years now, I have been trying to persuade Governments of all colours to change building regulations to require all new buildings to be fitted with solar panels. That would have the benefit of securing supply, reducing household bills considerably and helping us towards net zero, so why do we not do it?
Grant Shapps
I assure my hon. Friend that I am a great enthusiast for solar panels—I have had them on my home for the past 12 years, and they perform very well. I want to see more people do that. In fact, over that period, we have gone from virtually no renewables in our system—6.9%—to 43% in the last quarter. I am very keen for that expansion to go further and faster. We need to ensure that it is part of the building code, but we also want to make sure that other forms of renewables can be installed, so it is a balance between not being too prescriptive and making sure that we make speedy progress, particularly on all the commercial rooftops in this country.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
A few weeks ago, I had the pleasure of visiting an innovative housing project in Rumney in my constituency, which had solar panels in nearly all the new buildings but also ground source heat pumps, electric vehicle charging points and battery technology in the houses, bringing down bills for the residents while contributing to net zero. Will the Secretary of State join me in praising Cardiff’s Labour council and the Welsh Labour Government for the work they have done on this issue, and will he explain what we are doing to ensure greater manufacture of those technologies in this country?
Grant Shapps
Of course, I am delighted that the Barnett formula stretches so far in providing some of the excellent additions to those buildings. I just want to repeat that no Government have gone further and faster in the G7 than this one in introducing renewables and ensuring that they now power a very significant part of our grid. We want to go further and faster still, and we will make sure that things such as building codes help with that plan.
Stephen Farry (North Down) (Alliance)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
We recognise that having the right skills within the workforce is critical, which is why we established the green jobs delivery group.
Stephen Farry
The Climate Change Committee has expressed concern that the UK is falling behind on a range of net zero commitments, including on skills. A skilled workforce, alongside new green jobs, is a key component of the green new deal, but the workforce plan is not due until 2024. In the light of the urgency of addressing climate change, will the Government commit to bring that forward to some time later this year?
Amanda Solloway
We are working as quickly as we can on ensuring this. The new skills that will be required are really beneficial for the UK economy, so we are keen to work with the green jobs delivery group and the Department for Education in looking at apprenticeships and how we can push this forward as quickly as possible.
Nicola Richards (West Bromwich East) (Con)
Dr Kieran Mullan (Crewe and Nantwich) (Con)
The Minister for Energy Security and Net Zero (Graham Stuart)
Our “Powering up Britain” plan seizes opportunities from the transition to a decarbonised energy system. Our policies, backed by billions of pounds of Government funding—but more importantly, leveraging in about £100 billion of private investment—will support up to 480,000 jobs in 2030.
Nicola Richards
Enfinium is building a new energy-from-waste facility in my constituency, which will process nearly 400,000 tonnes of waste to generate electricity for more than 95,000 homes and businesses each year. Will the Minister join me in welcoming this investment in renewable energy, and outline how the Government are supporting energy-from-waste facilities across the country?
Graham Stuart
I thank my hon. Friend, and I am delighted to join her in welcoming this new investment, which will be a huge asset to her community as well as having positive national implications. Energy from waste with combined heat and power is supported through pot 1 of the contracts for difference scheme—our auction system. We expect to announce the results of the latest round in early September, and I hope the House will watch that announcement with great interest.
Dr Mullan
What assessment has the Minister made of the role of a tariff support mechanism to encourage short-term private sector investment in deep geothermal to support levelling up?
Graham Stuart
There is no greater champion than—or anyone in this House with half the knowledge of this, as far as I can tell—my hon. Friend in supporting the potential of deep geothermal. When the Prime Minister responded to his report, I know he thanked my hon. Friend for all the work that went into it. I can confirm that geothermal technologies that generate electricity are eligible for the contracts for difference scheme. We are also supporting and encouraging the development of geothermal heating projects through the green heat network fund, which supports the development of low-carbon heat networks. Under the leadership of my hon. Friend, I am confident that geothermal has a positive future.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Private sector businesses in the Humber are ready and willing to invest £15 billion in carbon capture, storage and decarbonisation projects. However, this is being put at risk because, of the eight track 1 carbon capture and storage projects selected, not a single project was approved for the Humber, despite the Humber being the largest carbon emitter in the country and the fact that 80% of the UK’s licensed CO2 storage capacity is accessible from the Humber. When will these businesses get the clarity they need? When the track 1 expansion process is launched, will both Humber pipelines be approved?
Graham Stuart
I thank the hon. Lady for her question, and she is right to be frustrated because of the enormous potential both to decarbonise and to unlock industrial benefits for the area. We are moving as quickly as possible. I have already said that the Viking project and the Scottish cluster are in the favoured position, and the team is moving as quickly as possible this year to provide more certainty and unlock further investment.
Tim Farron (Westmorland and Lonsdale) (LD)
Private sector investment in clean energy is vital, but does the Minister agree that one reason that the United Kingdom, despite having the highest tidal range on planet Earth after Canada, still uses so little of it, is a lack of public sector leadership? Areas such as Morecambe Bay, which could contribute to tidal energy, bringing down people’s bills and protecting us against Putin, are something that we could move forward. Will the Minister agree to meet me and other MPs around the bay, so that we can bring forward plans to get the most out of our tidal energy?
Graham Stuart
I am not an expert in the hon. Gentleman’s history on this topic, but I hope it has been consistently in favour of tidal energy, and therefore different from so many other areas of policy. I share his enthusiasm for the potential of tidal energy. That is why we are the world’s leading nation in the deployment of tidal range, and why tidal power is eligible for the contracts for difference scheme. Notwithstanding so many issues, I would be happy to meet the hon. Gentleman.
Mr Ben Bradshaw (Exeter) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government are supporting local authorities and community energy groups to work together to develop projects within UK growth funding schemes, such as the UK shared prosperity fund. Ofgem also welcomes funding applications from the sector to the industry voluntary redress scheme.
Mr Bradshaw
Why did the Government remove amendments from the Energy Bill last week that would have supported community energy and local energy trading?
Andrew Bowie
As we have outlined previously, the Government do not support the amendments that were tabled in the Lords, and believe that the issues raised should be considered as part of wider market reform. However, we are proactively working with parliamentarians and the community energy sector to discuss whether further support from the Government for the sector is needed, and if so, what might be feasible.
Anna Firth (Southend West) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The Government have provided support to customers on traditional prepayment meters through the energy bills support scheme and energy price guarantee.
Anna Firth
I very much welcome the measures that the Government have announced to support those on traditional prepayment meters, but many residents in Southend West, such as those living in Trafford House in Leigh-on-Sea, are on communal heat networks. They are still facing higher prices and have no control whatsoever over their heating. What are the Government doing to encourage heat suppliers to apply for the energy bill discount scheme ahead of the deadline at the end of this month, which will benefit my constituents who have no control over their energy bills?
Amanda Solloway
My hon. Friend is a great advocate for all her constituents, and she will be interested to hear that the Government are committed to supporting domestic heat network customers with their bills. That is why we introduced the energy bills discount scheme heat network support, which aims to ensure that heat network customers do not face disappointingly higher bills compared with customers in equivalent households.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Can the Minister tell us the value of prepayment meter vouchers not cashed by the 30 June deadline? What can the Government do to ensure that support reaches those people who are eligible to get it?
Amanda Solloway
All hon. Members will know how abhorrent we found the use of forced entry to people’s houses over prepayment meters. However, we have worked hard and consistently to ensure that all those on prepayment meters are treated fairly and given support.
Mr Rob Roberts (Delyn) (Ind)
John Spellar (Warley) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I am pleased, and indeed proud, to say that Great British Nuclear will be holding a competition for small modular reactors, because we want to attract the best designs from both domestic and international vendors. The Government’s ambition is to select the leading technologies by autumn, providing co-funding to any viable new technology. Our commitment to a nuclear programme and to Great British Nuclear will enable the UK to be on a path to achieve its ambition to become a global leader in nuclear energy and small modular reactors.
Mr Roberts
As members of the Welsh Affairs Committee heard during a visit to the United States in January, small modular reactors should play a significant role in transition, alongside large-scale nuclear projects. Does the Minister agree that while north-west Wales has excellent scope for large-scale projects, parts of north-east Wales would be outstanding prospects for an SMR site, as well as capitalising on the region’s amazing manufacturing and engineering capabilities to drive that part of the energy mix forward?
Andrew Bowie
The Government recognise the support for nuclear power across north Wales. Great British Nuclear will work with the Government on access to potential sites for new nuclear projects to achieve our long-term ambition. As a first step towards the development of the new national policy statement for nuclear, we will consult later this year on a proposed way forward for determining how new nuclear developments, including SMRs, might be located.
John Spellar
The Minister will know that this country has been producing small nuclear reactors for our submarines for more than 50 years. Does the Minister understand that while he is dithering around with his time-wasting international competition, those international competitors are out there in the market getting the orders and selling, backed to the hilt by their own Governments? Is this going to be yet another great British development created by our scientists, engineers and skilled trades, but allowed to slip away by blinkered civil servants and weak Ministers who cannot make a decision?
Andrew Bowie
Rolls-Royce is a great British company, which is why we previously made up to £210 million available from the advanced nuclear fund to Rolls-Royce SMR Ltd to support the development of its small modular reactor design. Great British Nuclear will launch the first-stage selection process for small modular reactors, which is expected to attract the best designs from domestic and international vendors, which will be great for this country. By the way, we are going three times faster than any comparable country on this project.
Hannah Bardell (Livingston) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
The Government are committed to cheap energy for all. Last winter, we covered half a typical energy bill through the combined support of the energy price guarantee and the energy bill support scheme since October, with a typical household saving around £1,500 by the end of June.
Hannah Bardell
There is a huge gulf between the reality and the practice of the Government. The Public Accounts Committee has warned this Tory Government about their lack of planning on support for consumers with the cost of energy this winter. Lack of preparedness seems a serious ailment within this Government. Given that Sense research has found that more than 30% of disabled people are cutting back on their use of medical equipment, when will we get a proper plan from this Government, instead of the profiteering off the backs of the most vulnerable, as we see from so many energy companies?
Amanda Solloway
We are of course making plans, and I do not accept that we are not planning. We are also talking to stakeholders and ensuring that we are giving the best support we can to all those who will be vulnerable in winter 2023-24.
Ruth Cadbury (Brentford and Isleworth) (Lab)
The Secretary of State for Energy Security and Net Zero (Grant Shapps)
Next week will mark the 500-day anniversary since Putin launched his invasion of Ukraine and began trying to blackmail the world on energy. As ever, Britain stood strong in the face of tyranny, and I am pleased to report that from Saturday just past, energy bills are falling by an average of 17% for households. We are committed to powering Britain from Britain, despite some alarming energy surrender plans coming from the Opposition.
Ruth Cadbury
The Climate Change Committee’s report published last week found that of the policies and consultations that are the responsibility of the Secretary of State’s Department, no less than 33 are overdue. He cannot blame anyone else. Will he now own up to the Government’s appalling failure?
Grant Shapps
The actual data argues the opposite way. We have met all our carbon budgets to date. The Climate Change Committee last week said that the chances of reaching carbon budget 4 are “slightly increased”. We are confident of meeting it, and we have set out our plans for carbon budgets 5 and 6. I have to say that given that this country has the best record in the world among developed nations for getting carbon under control, it is surprising to hear the Opposition’s view.
Mark Fletcher (Bolsover) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Since day one, the skills challenges that we face have been a top priority for me, which is why my Department is working closely with the Ministry of Defence, the DFE and the sector to tackle them. With the employer-led Nuclear Skills Strategy Group, we have deployed a joint plan of skills actions to support the civil and defence programmes, but I would be happy to meet my hon. Friend to discuss that further.
Edward Miliband (Doncaster North) (Lab)
Six days ago, the Climate Change Committee delivered its most scathing assessment in its history on the Government’s record, saying that they were off track on 41 out of 50 key targets. It said that we have gone “markedly” backwards in the past year, on the Secretary of State’s watch. Who does he blame for this failure?
Grant Shapps
As has been discussed more than once in these questions and answers, we have taken this country from having only 7% renewable energy to over 40%. We have decarbonised faster than any other G7 nation and we are on track for carbon budget 4, having already overdelivered on carbon budgets 1, 2 and 3. Based on our record to date, we are doing a pretty good job.
Edward Miliband
That answer is total complacency from a Secretary of State who has just been proven to be failing on every major aspect of his agenda. That is why Lord Goldsmith resigned. Lord Deben has said he is failing, and the right hon. Member for Maidenhead (Mrs May) has said that we are losing the global race. Is not the truth now that even the Tories do not trust the Tories on the climate crisis?
Grant Shapps
This is one of the problems with not being prepared to follow the data, which shows us overdelivering on the commitments of carbon budgets 1, 2 and 3, and that we are more likely to meet carbon budget 4 than we were a year ago. If the right hon. Gentleman wants to ignore all that and still roll out his pre-written question, that is how we get to his conclusions. The truth is that the Government are delivering on the issues of climate change while protecting every single household in the country from Putin’s tyranny. I am afraid that has already been surrendered by the right hon. Gentleman, who subscribes to the Just Stop Oil approach.
Mr Speaker
Order. Can I just ask the Secretary of State to please not take advantage? This is topicals. Please tell me if you want to pick a Member who you do not want to be able to ask their question.
Philip Davies (Shipley) (Con)
The Minister for Energy Security and Net Zero (Graham Stuart)
We estimate that the net cost excluding air quality and emissions-saving benefits will be equivalent to about 1% to 2% of GDP in 2050. As my hon. Friend knows, emissions are global, and we all need to play our part. The UK has a part to play in tandem with others, and that is why I will be working with other Ministers at the conference of the parties in Dubai.
Mick Whitley (Birkenhead) (Lab)
Graham Stuart
The hon. Gentleman is right to be frustrated about progress. But as the Secretary of State said, when the right hon. Member for Doncaster North (Edward Miliband), who is chuntering on the Front Bench, was in power, just 14% of homes were decently insulated; by the end of the year, it will be more than 50%. We have set up the energy efficiency taskforce because we want to go further and faster. We are determined to do more. We are spending £12.6 billion over this Parliament and the next, and—
Robbie Moore (Keighley) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Amanda Solloway)
My hon. Friend will be interested to hear that the Government provided more than £7.4 billion of support to businesses—more than £35 million a day—through the energy bill relief scheme last winter.
Mary Kelly Foy (City of Durham) (Lab)
Graham Stuart
I share the hon. Lady’s enthusiasm. We are taking steps to support this technology, and I would be delighted to meet her to discuss it further.
Mr Philip Hollobone (Kettering) (Con)
Graham Stuart
Unfortunately, we do not have public data by constituency and do not yet have the full data for 2022. However, I can tell my hon. Friend that in 2021, north Northamptonshire generated a total of 362 GWh of renewable electricity. The people of Kettering, like their representative, want Kettering to be one of the greenest constituencies in the country.
Olivia Blake (Sheffield, Hallam) (Lab)
Grant Shapps
The whole House will welcome the hydrogen economy as an important way to store power. It is becoming increasingly apparent that that power is most likely to be used in heavy industry as well as heavy transport. This Government are committed to hydrogen power, but we are also keen to ensure that it does not impact on people’s energy bills, just as those bills are starting to fall thanks to the support that we provided families with this past winter.
Peter Aldous (Waveney) (Con)
Graham Stuart
I could only just hear my hon. Friend’s question, as the shadow Secretary of State made it quite hard to hear. The Government recently completed a call for evidence on this very subject, looking at the introduction of non-price factors in the contracts for difference scheme so that it values things other than just cost deployment. My hon. Friend, like all Members on the Government Front Bench, wants the maximum number of jobs created and retained in this country.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
Andrew Bowie
It was this Prime Minister who created the Department for Energy Security and Net Zero, and it is this Government who have delivered more than 43% renewable electricity on to the grid. We will take no lectures from the Labour party on combating climate change.
Lia Nici (Great Grimsby) (Con)
Will my hon. Friend please outline what his Department is doing to look at the import of green hydrogen feedstock into the UK, to increase the scale and speed of the UK industry and help us achieve our 10 GW capacity by 2020?
Graham Stuart
I am aware of proposals on the shipping and possible piping of hydrogen and the important part that must play. If we are to decarbonise all of British industry, we will need shipping as well as piping. I will be happy to meet my hon. Friend to discuss what further we can do.
Alex Cunningham (Stockton North) (Lab)
I very much welcome the recent progress on developing carbon capture, usage and storage on Teesside. I hope we will see the final confirmation that it will happen and the work will start. That said, local industrialists and investors are concerned that the Department is not now asking BP to build the CO2 collection pipework as originally planned, meaning that it will not go to CF Fertilisers or Kellas or pass by the Alfanar site. Could the Minister provide an update, please?
Graham Stuart
We are moving at top speed to drive forward CCUS. We are in a world-leading position. The opportunity is enormous in the Tees, the Humber and areas in the north-west as we seek to get that right and embed those industries in this country.
George Eustice (Camborne and Redruth) (Con)
The unique geology of Cornwall means that there is huge potential for geothermal energy. There are a number of projects bidding for the current allocation round. Geothermal energy has a competitive strike price, has lithium as a by-product and makes use of mature technology. Will the Secretary of State ensure that those benefits are properly factored into any assessments?
Grant Shapps
My right hon. Friend is absolutely right about the opportunities of geothermal. He will be pleased to know that it just received a potential allocation through the contracts for difference round. As he and other hon. Friends have pointed out, geothermal has great potential in this country, and we look forward to supporting it.
Dave Doogan (Angus) (SNP)
Communities in Padanaram, Forfar, Aberlemno and Stracathro in my constituency have been on the receiving end of an extraordinarily flawed consultation by SSEN—Scottish and Southern Electricity Networks—on taking a 400 kV line from Tealing to Kintore. I welcome the investment, but can the Minister advise on the minimum standards for consultations on capital infrastructure of this nature, and why will Ofgem not mandate that there is a community benefit?
Grant Shapps
I will, with the hon. Gentleman’s permission, arrange to write back to him in a more detailed structure, given that the development is actually in the constituency of my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie).
Andrew Jones (Harrogate and Knaresborough) (Con)
Unlocking access to the grid will unlock significant private sector capital ready to come in for microgeneration of battery storage projects. Can my hon. Friend give me an update on the timing for the Winser review and the Government’s response to it?
Andrew Bowie
The Government have received Nick Winser’s review and it will be published imminently.
Dame Nia Griffith (Llanelli) (Lab)
Following a debate in Westminster Hall on making heritage buildings more sustainable, will the Secretary of State undertake to meet his colleague the Minister with responsibility for culture to push for the urgent revision of guidelines to allow greater flexibility in the siting of solar panels and other renewable installations on heritage buildings, in order to make them more environmentally sustainable and economically viable?
Amanda Solloway
Speaking for myself, I would be delighted to have a meeting on that subject.
Mark Pawsey (Rugby) (Con)
At a time when the cost of generating electricity is falling thanks to the increasing use of renewables, my constituents do not understand why the price of electricity remains linked to the price of gas. I know that the Government are undertaking a review of electricity market arrangements. When might they expect to see a change?
Graham Stuart
My hon. Friend is quite right to ask that question. We would all like to see gas setting the price of electricity more frequently. That is why we are accelerating the take-up of renewables, which were so pitifully low in quantity when Labour was in power. We need a Conservative Government to keep up progress and lower bills right across the country.
Mr Gregory Campbell (East Londonderry) (DUP)
The Secretary of State outlined the progress being made on small modular nuclear reactors. Can he provide an estimate of how many there might be within 10 years?
Andrew Bowie
Great British Nuclear will be launched later in July. We will also be launching the draw-down selection process for which technologies we will invest in and support. I would be delighted to speak to the hon. Gentleman in more detail about that progress moving forward.
Patrick Grady (Glasgow North) (SNP)
I think my constituents, not least those who are part of the Glasgow Community Energy co-operative, will be disappointed with the Minister’s answer to the right hon. Member for Exeter (Mr Bradshaw). The Minister is extremely familiar with the clauses that form part of the proposed community energy Bill. They are not acceptable as amendments to the Energy Bill before this House. Will the Government bring forward their own amendments, so that community energy groups can have the confidence they need to take forward their projects?
Andrew Bowie
As I said, we are working with the sector and parliamentarians to find a way forward to further support community energy projects. As part of that, I would be delighted to meet the hon. Gentleman to discuss it further.