Monday 1st September 2025
(1 day, 16 hours ago)
Lords ChamberPlanning and Infrastructure Bill 2024-26 View all Planning and Infrastructure Bill 2024-26 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: HL Bill 110-III(b) Amendments for Committee (Supplementary to the Third Marshalled List) - (1 Sep 2025)
“Prohibition of solar power development on higher-quality agricultural landNo permission may be granted for the building or installation of provision for solar power generation where the development would involve—(a) the building on or development of agricultural land at grade 1, 2, or 3a, and(b) building or installation at ground level.”Member's explanatory statement
This new Clause would prohibit the development of solar power generation on higher-quality agricultural land.
Baroness Hodgson of Abinger (Con)
My Lords, I shall speak to Amendment 89 in my name. This amendment would insert a new clause after Clause 28 which would prohibit the development of solar power generation on high-quality agricultural land, in particular, as set out in paragraph (a),
“agricultural land at grade 1, 2, or 3a”.
As many know, agricultural land is classified into five grades based on various physical and chemical characteristics that affect its long-term agricultural use, grade 1 being the highest and grade 5 the lowest. Grade 3 covers good to moderate-quality land and is divided into two sub-grades, with 3a defined as land capable of consistently producing moderate to high yields of a wide range of crops. I excluded sub-grade 3b, which is more limited in its agricultural use, often suited only to grassland and extensive grazing. Paragraph (b) in Amendment 89 then prevents solar power generation development, which would involve building or installation at ground level.
As I and others argued at Second Reading, the Government need to be joined up when considering infrastructure. Despite the high-level meetings over the summer in Alaska, the current situation in Ukraine remains significantly worrying, and the threat will remain even when the war in Ukraine has been resolved. Our defence policy has pivoted to deterrence against possible war: that we should be war ready. Although defence is the first priority of the Government, surely our second, as an island nation, should be food security.
Solar farms will take up large areas of land that should be used for food production. The Minister has suggested that these concerns are not proportionate, as it is estimated to impact only 1% of agricultural land. According to the Government’s own statistics released in March this year, covering the UK up to 1 June 2024, utilised agricultural land accounts for some 16.8 million hectares in 2024. One per cent of that is the equivalent of 105,000 football pitches, around four-and-a-half times as big as the Isle of Wight. That is not something to be just brushed aside.
We have already had clear examples of impact estimates being widely out, from those leaving the private school sector to the impact of job taxes on enterprise and business. The Government’s own national security strategy tells us that we must actively prepare for war. Currently, we import more than 40% of our food. This Bill would see badly needed productive land lost to solar farms. Our agricultural land is needed for food production. It is vital that we become more self-sufficient and resilient. Producing more food in the UK is an essential part of that. Regarding resilience, solar farms are easily identifiable, hard to guard and therefore could be so easily disabled by drone strikes. This amendment seems fundamental to safeguard future need regarding food production.
Lord Fuller (Con)
My Lords, I speak to Amendment 92 in my name. The amendment is simple and straightforward: it recognises that solar farms have a role to play in our energy security, but that that must be balanced with an effective use of our best farmland for food security. I observe that the lack of Labour Party Back-Benchers here says more than we need to about their views on farm and food security.
This amendment would not prevent or fetter the development of solar farms on the poorest quality land or restrain smaller proposals on the best land which command the support of the local planning authority. However, where large-scale solar proposals come forward that include the best and most versatile land, my amendment would mean that the nationally significant infrastructure project—NSIP—process would not and could be engaged. To be clear, this would not be an absolute ban on large-scale solar farms on the best land; it is just that, if those proposals were to come forward, they would need to be determined locally by the planning authority.
It is said that modern society is no more than three meals away from breakdown. In the hierarchy of needs, food in the belly is the number one priority. When the chips are down, you cannot eat a solar panel. Last year, the national wheat yield was down by 20% on account of wet weather. This year, the yield impairment is similar but because of dry weather. Just as there are no guarantees about the weather, we cannot be careless with our food supply.
I have recently heard encouraging noises from Defra Ministers who belatedly realise that the risks of food security are greater than they have ever been and that the best land should be reserved for food production, where inputs can be used most productively. The poorest and least productive land can be harnessed for other uses—environmental, amenity or economic. I welcome this sinner that hath repenteth and I venture that there is now common ground between people like me, who appreciate and value food security, and the Government. That should make acceptance of my amendment easy to achieve, so that the right balance is struck between heating and eating.
I will not go into quite so much detail as my noble friend, but let us talk about what I mean by the best and most versatile land. The Library tells me that, under the 1966 agricultural land classification process, grade 1, 2 and 3a land comprises 42% of the cultivated area of Great Britain; by difference, therefore, the substantial majority, 58% of the agricultural land, is in the poorer grades 3b, 4 and 5. Now, this would still be available for large-scale solar energy under my amendment, and there are millions of poor hectares to go at. That is land the size of 12 Norfolks or two and half times the size of Wales—noble Lords will note that I do not use the football pitch analogy.
Last year at the Dispatch Box, the noble Baroness, Lady Hayman, explained that, in the case of a recently approved Sunnica proposal in Suffolk, the proposal did not include some of the best and most versatile land. I will not criticise her for an honest mistake, but I regret to tell the Committee that there was plenty of the best land, including grade 2 land, in that proposal—land that is now lost to food production for a generation. On so many levels, the Government’s rhetoric is at odds with the reality. They have lost control of the numbers, and in so doing are imperilling our food security, which is national security.
In Lincolnshire, the county that more than any other puts bread on our tables, already 2% of that county is under threat from solar. Worse, thanks to my noble friend Lord Frost we learn that the majority of the Heckingham proposal is predominantly the best grade 1 land under the 1966 rules.
In an Answer to a Written Question last November, the Government reported that 1,400 hectares of land in Norfolk were currently under NSIP applications. But the reality was that it was 7,500 hectares, and now the number is greater still. We know from Great British Energy—I am pleased to see the noble Lord, Lord Hunt, in his place—that there just is not the grid capacity to accept all the solar that is being promoted.
Lord Hunt of Kings Heath (Lab)
My Lords, surely the point about the Bill is that it is enabling us to put the structures in place to actually get the grid capacity up and running.
Lord Fuller (Con)
True. The noble Lord makes a good point, and so I sense even further a degree of consensus on both sides of the Committee on this matter. If we take the fact that the grid capacity is not there to accept all the solar that has been promoted, because it is diurnal and seasonal and comes in very big flashes which can overwhelm the grid, and that capacity to absorb is limited, only a fool would disagree with limiting the proposals to the poorest land first.
I have heard it said that we need not worry about this and that only the amount of land currently used for golf courses is being used for solar—something like 0.5% of all land—but that is simply not true. It is the 19th hole tale that has grown with the telling. The Government’s land use framework contemplates that 9% of all land will be used for environmental and energy schemes. Let me say straight away that agri-solar is starry-eyed, greenwashed fantasy. The solar panels are taller, so they are even more visually intrusive, with even more chemicals used to bash the weeds so that they do not shade the panels or wrap their tendrils around the steel stanchions.
The principle of controlling solar development aside, this amendment is important because it seeks to remove the loopholes and abuses that we have seen flow from the misuse of the NSIP regime for solar applications, including artificially stringing together many disparate smaller schemes, some miles apart, to get over a hurdle threshold. Where I live, a local proposal comprises a dozen different blocks of land spread out over a canvas more than 15 miles wide and eight miles tall as a device to get over that NSIP threshold. That is an abuse.
I can see that it is in the farmer’s private interests to sign up for solar. On normal arable economics, a farmer would do well to earn £200 an acre from the fruits of his labours, having investing millions in plant and equipment and subjecting himself to the risks of weather and the market. By contrast, solar developers are offering him the chance to sit on the beach with an index-linked £900 or more. Landowners of really quite small holdings which have been aggregated together have given tenant farmers notice to quit so that they can enjoy those inflation-linked payments of over 40 years at many times the rent. But our tenant farmers are among the most entrepreneurial growers, not having had the benefit of inheriting land, and we cannot afford to lose their dynamism.
Baroness Coffey (Con)
My Lords, in speaking to my Amendment 94B regarding permission for energy substations on higher quality agricultural land, I will also speak to Amendment 94A, tabled by my noble friend Lord Forsyth of Drumlean, which according to the Herald is pronounced “drum-lang”. The amendments reflect the concerns that I and my noble friends have about what is happening on higher quality agricultural land, which, as we have heard eloquently described, is critical to food security.
My noble friend’s amendment reflects quite a lot of the concerns expressed in the House of Commons. I am thinking of my right honourable friend Wendy Morton, my honourable friends Sarah Bool and Mike Wood, and a number of other people who have spoken in debates in the House of Commons who are concerned for a couple of reasons about why battery energy storage systems seem to be not exploding —well, some of them are—but certainly expanding.
There is an important point to understand. We have seen, progressively, the previous Administration and this Government trying to get a grip on managing energy production and to get a proper strategy going. Meanwhile, in the Clean Power 2030 Action Plan, the proposal is that we need about 27 gigawatts by 2030, 29 gigawatts by 2035, and a broader estimate—although the Government have not set a formal target—of 50 gigawatts by 2050. But where are we right now?
Figures from a paper from RenewableUK published in December 2024 suggested that there were 5 gigawatts of total operational capacity and 127 gigawatts in the pipeline. You do not need an A-level in maths to add up and find that that comes to 132 gigawatts. Of those, I think it is fair to say that 40 gigawatts have already been consented, 30 gigawatts are in the planning process and a further 48 gigawatts are being developed to go into the planning system.
My concern and that of my honourable friends and right honourable friends in the other place is that, in our process, we have already approved pretty much all that has been wanted by our energy operator. So why is it that, in effect, we seem to be encouraging even more to come through?
I am conscious that not every application will necessarily produce the outcome that is desired—we have seen that with other things—but, frankly, for those who have got the planning consent, we should make sure that they deliver what they say they are going to do. We should do that instead of, yet again, building up, and potentially blocking, land being used for food production to perhaps become an area for battery energy storage in the future, when we will have already achieved our outcome.
We discussed a lot about safety earlier; the noble Lord, Lord Khan of Burnley, spoke to that. He spoke comprehensively, but I point out to him there have been some instances where, for example, chemical interactions meant that hydrofluoric acid was produced. I did my PhD in chemistry a long time ago, but HF is one of the chemicals that I used. I can honestly say that, if you get it on your skin, although you will not realise it for a couple of days, your bones are basically crumbling right inside your skeleton. If you get it in your eyes, it is game over, frankly. On a very serious note, it is fair to say that there are significant risks. While the HSE has been cited as having a framework in place and similar, the noble Lord, Lord Khan of Burnley, referred to the Defra consultation about bringing these regimes into the EPR. It was published only last week. This is no criticism of the Minister, but what is noteworthy is that it said—I am quoting word for word—that
“it is not the role of the planning system to regulate fire risk and there is limited provision through the planning scheme to ensure that measures are maintained”.
I am sorry, but one of the key features of the planning system is to consider fire and fire risk and the like, so it will be worth the Minister looking at that element again; I am sure his officials will be keen to do so as well. We need to make sure that these things are safe. I shall give way.
Lord Fuller (Con)
I am reminded to reprise what the noble Lord, Lord Khan, said earlier about the need to have pre-scrutiny and the fact that a national organisation, the HSE, was the competent body. As my noble friend has been speaking, I have been reminded that it is for local organisations, the local fire authority and the local planning authority to make those determinations. National bodies such as the HSE do not have the capacity or the local knowledge to comment appropriately.
Baroness Coffey (Con)
I think that is right. The HSE, on its own website, refers to the fact that it cannot comment on every application and, in effect, needs to be proactively contacted only if there is considered to be a major risk.
I am also conscious that the River Test is considered by my honourable friend Caroline Nokes to be under threat. For people who are interested in these things, I commend the speech of my right honourable friend Sir Alec Shelbrooke, who talked about dendrites. It was a very knowledgeable, well-researched speech about fire risk, including thermal runaway and the like.
Coming back to the fundamental proposal of my noble friend Lord Forsyth, he specifically asked me to talk about safety. There is a concern about overdevelopment and the loss of food for agricultural production. We will keep coming back to this on this side of the House, recognising the importance of food security alongside the other elements of national security.
On the amendment that I have tabled, perhaps I should declare an interest as this is about a subject that I have referred to a few times before: energy substations. Again, I am worried. There is an element here of thinking about where we do energy generation or other aspects of interconnection. Frankly, if the Government think the only way they can get these things done is by ripping apart environmental protection law and reducing food production land, they should not connect at those areas that already have these environmental designations or are key producers of food in this country.
My amendment refers specifically to 1, 2 or 3. I am conscious that the best and most versatile land is traditionally grades 1, 2 and 3a. However, Defra, through Natural England, does not publish where grades 3a and 3b are, because apparently that is too difficult to do, as it requires individual local site surveys on determining whether a particular field is grade 3a or 3b, so for comprehensiveness I have put in grades 1, 2 and 3.
However, as my noble friend Lord Fuller has pointed out, there is an element here about the fact that, frankly, a lot of this stuff was—in effect, with a light touch—reconsidered only in 2010. Fundamental parts of our land have not been assessed in terms of their contribution towards food production or food security for probably the best part of 40 to 50 years. As a consequence, recognising the targets set by the Government and the challenges that we face, I am conscious of the land use framework. Admittedly, I did a draft of that nearly three years ago, and I am sure everyone is frustrated that we still have not seen it yet. One of the challenges is this competing element of what we do with the land that we have.
Let us be straightforward about this: once agricultural land is gone, it is gone for good. I am not blaming farmers or landowners, who, candidly, the policies of the last 12 months have given even more reason to get a secured income on the basis of the value or use of their land. One of the foibles, in a way, of doing things such as leasing out land for solar is that it does not adjust in terms of the agricultural elements of inheritance tax. However, when farmers can get a guaranteed income for a proportion of their land, while other things are so uncertain, I do not blame them for wanting to make that choice.
My honourable friends—apologies, I am still earning about this place; I should have said my noble friends—have eloquently put some of the issues around solar. There definitely has to be a place for solar across our country, but one final point that I want to make on battery energy systems is that we really need to target where they are going to be. There is no point in having batteries in parts of the country that are nowhere near the grid or near where most of the energy is going to be used. That is why I have proposed the amendments I have today.
Baroness Neville-Rolfe (Con)
My Lords, I simply want to agree with Amendment 89 in the name of my noble friend Lady Hodgson of Abinger. I prefer it to the amendments from my noble friends Lord Fuller, Lord Forsyth and Lady Coffey, although they all have merit. We have heard from my noble friend Lady Coffey that we may already have enough solar farms under consent already, although I am not sure what the Minister thinks of that.
As the House of Lords, we can take a longer-term view and, unfashionable though it may be, I believe we should protect the highest-quality agricultural land for farming and food and prohibit solar farms on that land. It is of course less costly for the developers, who want flat sites, but that is not a good reason to sacrifice the best land needed for food security.
Government is about balance. Our population is growing. We live in a dangerous world that could one day jeopardise imports of food, and the most productive land should be devoted to growing crops.
Lord Roborough (Con)
My Lords, I will speak to Amendment 89 in the name of my noble friend Lady Hodgson of Abinger, Amendment 92 in the name of my noble friend Lord Fuller, Amendment 94A in the name of my noble friend Lord Forsyth of Drumlean and Amendment 94B in the name of my noble friend Lady Coffey. These amendments focus on a matter of strategic and national importance: the protection of prime agricultural land in the face of increasing pressure from non-agricultural development, particularly the expansion of renewable energy infrastructure. The arguments have been well made already in this short debate, so I can be brief.
In bringing these amendments, my noble friends rightly highlight the wider context in which we debate this issue. The agricultural sector has been under immense pressure from market volatility, environmental challenges and, regrettably, punitive tax measures such as the family farms tax raid. Against that backdrop, it is more important than ever that we protect our best and most versatile land, not just for farmers but for the long-term food security of our nation. The Government must support an approach that balances the need to scale up renewable energy with the critical need to maintain our ability to feed ourselves.
These amendments make a strong case for preventing the unnecessary loss of high-quality agricultural land. As I and other noble Lords have previously highlighted Committee, some of the largest solar developments are being approved without proper regard for the grade or quality of the land being sacrificed. Every one of the large-scale solar farms approved under NSIP that I have looked at has been materially located on best and most versatile land. That is not just a matter for the farming community; it is a matter of national food security. We cannot create a future in which we can switch on our lights and heat our homes but are unable to feed ourselves. We must not let the pursuit of energy security come at the expense of food security.
As others have highlighted, a disproportionate percentage of our best and most versatile land is going to solar. This is madness when 58% of our farmed land is not in the BMV category and there is also a significant amount of unclassified and unfarmed land that could be used for renewable development. With the Government’s ambition to triple solar capacity by 2030, the pressure on land is only going to intensify. Unless active steps are taken now to guide that development sensibly and strategically, we will continue to see the erosion of our agricultural capacity and, with it, increased dependence on imported food.
These amendments are both timely and necessary. They would ensure that solar and other non-agricultural developments are directed towards less productive land or even non-productive land, leaving our best farmland for the essential job of feeding our population. I urge the Minister to take these amendments seriously and offer clear assurances that under no circumstances will the Secretary of State approve developments that compromise the UK’s food security.
The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Baroness Taylor of Stevenage) (Lab)
My Lords, Amendments 89, 92, 94A and 94B relate to Clause 28 and the protection of agricultural land. I thank the noble Baronesses, Lady Hodgson and Lady Coffey, and the noble Lords, Lord Fuller and Lord Forsyth of Drumlean, for tabling these amendments. Is that the right pronunciation of Drumlean? I am glad he is not here, because I know he would shout at me if I got it wrong.
Amendment 89, tabled by the noble Baroness, Lady Hodgson, seeks to prohibit the construction of ground-mounted solar farms on land of grades 1, 2 and 3A. The Government view food security as national security and champion British farming and environmental protection. All solar projects undergo a rigorous planning process, considering environmental impacts, local community views and any impact on food production. The Government believe that solar generation does not threaten food security. As of the end of September 2024, ground-mounted solar PV panels covered an estimated 21,200 hectares, which is only around 0.1%—not 1%—of the total land area of the UK. Even in the most ambitious scenarios, only up to 0.4% of UK land will be devoted to solar in 2030.
The Government are in total agreement with the noble Baroness in that we want to get the balance right between protecting fertile agricultural land and facilitating renewable energy. The Government agree that protecting food security should always be a priority. That is why land use and food production are already material considerations in planning. Planning guidance makes it clear that, wherever possible, developers should utilise brownfield, industrial, contaminated or previously developed land. Where the development of agricultural land is shown to be necessary, lower-quality land should be preferred to higher-quality land. However, we do not believe the accelerated rollout of solar power under present planning arrangements poses a threat to food security.
The government consultation on the land use framework sought feedback on what improvements are needed to the agricultural land classification system to support effective land use decisions. The land use framework, to be published later this year, will set out the evidence, data and tools needed to help safeguard our most productive agricultural land. It will also lay out how government intends to align the different incentives on land; ensure that joined-up decisions are made at national and local levels; and make accessible and high-quality data available.
As such, we believe that this amendment is not necessary to protect agricultural land. Moreover, a total ban on the use of higher-quality land may have several deleterious consequences. Quite often, a site suitable for solar development will contain soil of varying quality. At the moment, the amount of high-quality land proposed to be developed is examined by planning officers. This is a consideration in planning decisions. Were this amendment to be incorporated into the Bill, large projects could be rejected for the sake of a small area of higher-quality soil that constitutes a small fraction of the overall site.
This amendment would reduce the number of economically viable sites for solar generation, which would increase costs for developers. They may seek to recoup these by placing higher bids in the contracts for difference scheme. That cost is ultimately borne by bill payers. In short, banning all solar development on higher-quality land may endanger the Government’s mission to achieve clean power by 2030, increasing the exposure of British consumers to volatile imported fossil fuels.
I shall touch on the noble Baroness’s point about solar on domestic and non-domestic buildings. Deploying rooftop solar remains a key priority for the Government and we will publish the future homes standard this autumn. The new standard will ensure that solar panels are installed on the vast majority of new-build homes once it comes into force, saving households hundreds of pounds a year on their energy bills. That will support our ambition that the 1.5 million homes we will build over the course of this Parliament will be high-quality, well designed and sustainable.
Additionally, the recently published Solar Roadmap contained several actions for both government and industry to support the deployment of solar PV in the commercial sector. These included unpicking the complex landlord/tenant considerations in the sector by developing and distributing a toolkit for owners and occupiers. The Government set out that rooftop solar on new non-domestic buildings will, where appropriate, play an important role in the future buildings standard, due to be introduced later this year.
The Government have also announced £180 million of funding for Great British Energy to help around 200 schools and 200 NHS sites to install rooftop solar. We expect the first of these installations to be complete by the end of the summer—summer being a flexible concept, so whenever that comes. The Government are assessing the potential to drive the construction of solar canopies on outdoor car parks over a certain size through a call for evidence, which closed on 18 June. We will publish the government response to that consultation. I trust that the noble Baroness will be satisfied with that response and I kindly ask her not to press her amendment.
Amendment 92, tabled by the noble Lord, Lord Fuller, seeks to remove solar projects on high-quality land from the nationally significant infrastructure project regime. I thank the noble Lord for his engagement on this subject. I know that he has spent many years serving in local government and has considerable expertise. However, I hope that he recognises the contradiction in his argument. At the same time as he argues about the very difficult conditions that farmers face in growing food, these are brought about by climate change, but he is using them as arguments not to tackle it by moving to clean energy—so there is a bit of a contradiction in the argument there.
It is vitally important that every project is submitted to the planning process that best suits its impact, scale, and complexity.
Lord Fuller (Con)
The point is that the difficulty that farmers are under may be aggravated by poor weather, either too wet or too cold, but the real problem is that this Government are engaged in a war on the countryside by undermining the finances of every family farm and damaging food production, even with the stuff on bioethanol, taking 1 million tonnes of wheat out of the market. That is the reason why farms are doing so badly—it is not to do with climate change.
Baroness Taylor of Stevenage (Lab)
The noble Lord was referring specifically to climate impacts on food growing, which I felt was a bit ironic as we are trying to tackle the climate change that is bringing them about with exactly these measures to use clean energy.
The Government recognise the benefit of returning control over decisions to local planning authorities. As of 31 December 2025, we will double the NSIP threshold for solar projects from 50 megawatts to 100 megawatts. However, the Government believe that large solar farms, even when they propose to use higher-quality agricultural land, are best dealt with under the NSIP process.
The NSIP regime is rigorous. Although the decision is not taken locally, local engagement is still at the heart of the process. Under the current legislative framework, developers taking projects through the NSIP regime are required to undertake community consultation as part of the preparation for the application. This gives communities ample opportunity to feed in their views and shape the project. Currently, the level and quality of community consultation, among other factors, is taken into account by decision-makers. I am glad the noble Lord made a protest about the one that he was subject to; I hope communities will do that if they feel that those consultation processes are not being carried out in good faith.
Moreover, considerations under the NSIP regime include any impact on land use and food production. Planning guidance is clear that poorer-quality land should be preferred to higher-quality land, avoiding the use of best and most versatile agricultural land where possible. This is in line with the policy governing decision-making by local planning authorities. Even if there were a marginal gain in public confidence from returning the decision to local authorities, we would not expect the outcomes to change.
This marginal gain must be weighed against the likely costs of this proposal. First, a proper examination of the potential impacts of a large-scale solar farm is a major and lengthy undertaking. Giving this responsibility to local planning departments may place an untenable burden on resources which are already under pressure.
Secondly, it is right that projects of such scale, size or complexity as to be nationally significant should be considered through the NSIP process. These proposals are of strategic importance to the country as a whole, and as such central government is the most appropriate decision-maker. Changing policy to allow decisions about these projects to be taken by local authorities may increase investor uncertainty at a pivotal moment for the Government’s 2030 clean power mission. This may jeopardise our work to reduce reliance on imported fossil fuels, increase energy security and protect consumers from global price shocks, just at the very time when Members have raised the issue of security.
Lord Fuller (Con)
I am prompted to intervene only because the head of the noble Lord, Lord Khan, nearly seems to be falling off with nodding. The point is that the NSIP regime is combining schemes which, frankly, should normally go through the local planning authority. These are disparate, small, stand-alone schemes which fall under NSIP only because the system is being abused to string them all together quite artificially. There are no capacity constraints in local government planning to do with these smaller schemes; we know where they are and we know the issues. To suggest that stringing together a dozen different small schemes is nationally significant demonstrates the falsehood and the paucity behind the argument that NSIP should be engaged in this manner.
Baroness Taylor of Stevenage (Lab)
These are geographical schemes. As I said, we are increasing the size of schemes that will go to NSIP.
Lastly, I am concerned that accepting this amendment would imply that there are some issues on which the NSIP regime is either not competent or not qualified to adjudicate. This is simply not the case. Setting this precedent may reduce public confidence in the NSIP planning system as it applies to other types of infrastructure. It may undermine trust in decisions which have already been taken. For all the reasons I have outlined—although it sounds as though I have not convinced the noble Lord—I hope he will not press his amendment and will continue to work with us on this issue.
Amendment 94A, tabled by the noble Lord, Lord Forsyth, and spoken to by the noble Baroness, Lady Coffey, seeks to prohibit battery developments on best and most versatile agricultural land. The Clean Power 2030 Action Plan set out an expansion of renewable technologies required to achieve the 2030 ambition, including the acceleration of grid-scale battery development from around 5 gigawatts at present to at least 23 to 27 gigawatts by 2030. Grid-scale batteries, which are rapidly falling in cost and increasing in scale, allow the power system to store cheap excess renewable energy and use this, rather than expensive polluting gas, at times of need.
Baroness Neville-Rolfe (Con)
Can the Minister not deal with the problem of patches of best-quality land on a site with a classic de minimis rule of, say, 5%? That would still allow us to protect the best land without needless delay and Defra—or the new framework that the Minister mentioned—could easily provide the data for that purpose.
Baroness Taylor of Stevenage (Lab)
I am sure that if the noble Baroness wished to put that forward in the land use framework it would be considered. I always worry about de minimis rules because there will always be the exception to the rule that goes slightly over it, and then you end up with a big problem sorting that out. However, if she wishes to feed that into Defra’s part of the land use framework consultation, I am sure it will take account of it.
Baroness Hodgson of Abinger (Con)
I thank the Minister for her extensive response and all noble Lords who have contributed to this debate, especially those who have given support. Many interesting points have been raised, and some very worrying statistics. I simply repeat that, especially given the international situation, we really need to think about national food security and resilience. We import 40% of our food and, if we got into a war situation, we would need to grow more than we are at the moment. It seems counterintuitive to be allowing good agricultural land to be used to generate electricity when this can be done elsewhere.
I will not repeat all the points previously made, except to say that we also need the good will of the British people. We need to ensure that local people can have their views heard. I was heartened when the Minister said that there would be community consultation, but too often these consultations are binned and not acted on—people listen and then some other outcome happens. I hope that community consultation in which local people expressed that they really did not want solar farms would be respected and the schemes would be turned down.
I was slightly disappointed that the Minister did not address the points about foreign investors leasing this land long term. I imagine that we do not know who they are and we are not checking on who is buying what. I am very disappointed to hear that the Minister is not prepared to recognise the depth of feeling on this issue. I withdraw the amendment now, but hope that we can have further consultations and some movement can be made to address what all of us have tried to say about making sure that prime agricultural land does not have solar farms on it. I reserve the right to bring this back at the next stage of the Bill.
Earl Russell
“Local Area Energy Plans(1) All local authorities and combined authorities must create a Local Area Energy Plan in order to inform their decisions about local electricity infrastructure requirements.(2) For the purposes of this section, a “Local Area Energy Plan” means an outline of how the relevant authority proposes to transition its area’s energy system to achieve net zero greenhouse gas emissions.”Member’s explanatory statement
This new Clause would require all local and combined authorities to develop Local Area Energy Plans which set out how they will meet their Net Zero goals.
Earl Russell (LD)
My Lords, I open this group of amendments, which are all on local energy plans; my amendment proposes to insert a crucial new clause after Clause 28 of the Bill. It would mandate that all local authorities and combined authorities must create a local area energy plan.
Considering the late hour, I will give a slightly condensed version of my original speech. I also express my strong support for the other amendment in this group, Amendment 177, tabled by the noble Lord, Lord Ravensdale, and supported by the noble Lord, Lord Hunt. This amendment would require the Secretary of State to publish vital guidance for local authorities on local area energy plans within 12 months of the Act being passed. To my mind, that is almost like the flipside of the same coin to what I am asking. The amendment that I have tabled and this amendment would work well together, complement each other and make each stronger than they would be without the other. From my point of view, it would be good if it was possible to progress both of the amendments in this group.
I do not really want to go into too much detail. Everybody knows what local area energy plans are. They are vital to devolving these tasks down to local authorities, including local people. They work really well; they are powerful. It is really good that we speak to and include local people and that they have a say, and it is good that we take account of local peoples’ needs and what is happening in local areas. It is good that we do this level of granular work on the ground and talk to local people. These plans are happening in some places: obviously in Wales, and there are some other places where councils are voluntarily doing these things, whether that is in London or other metropolitan authorities.
What does not exist in legislation is a mandated requirement for these things to be done or a mandated support to help local authorities to do these things. Were that to happen, it would help this Government to meet their environment and climate change targets. Frankly, I do not know how we got to where we are without having it in this Bill. I wonder whether that is purely just an oversight.
From my point of view, I stand ready to work with the Minister alongside the noble Lord, Lord Ravensdale. We would like to include this in the Bill. We feel that this would fit within the Bill, help to deliver targets, help us to get to where we need to be and help to empower our local authorities. I will leave it at that considering the late hour that we are sitting, but I genuinely think that this would help all round. I beg to move.
Lord Ravensdale (CB)
My Lords, I speak to Amendment 177 in my name and declare my interests as a chief engineer working for AtkinsRéalis and as a director of Peers for the Planet. I thank the noble Lord, Lord Hunt, for his support for the amendment.
I start by saying that I completely agree with what the noble Earl, Lord Russell, just said. I view these amendments as very complementary in terms of local area energy planning. This has to be a staged approach. We first need that guidance set out for local authorities, so that we have a consistent approach to planning but, ultimately, we need a funded programme with funding available to local authorities to enable them to undertake these plans and get to the place where we need to be with the noble Earl’s amendment. Therefore, they are very complementary in that sense.
To add to what the noble Earl, Lord Russell, said, I put this amendment forward to the then Energy Bill a couple of years ago. It is worth reflecting on what we have seen so far in terms of the energy transition, which is a very top-down driven approach. However, we have seen some really good progress since the Energy Act. We have had the formation of the National Energy System Operator, the NESO. We have started to see that thinking about flow-down to regions and local areas, with the formation of the regional energy strategic planner role, the RESP.
However, there is a missing piece of the puzzle in terms of the flow-down to local areas: the bottom tier, which is what the local area energy plan fulfils. In terms of spearheading the transition, it is really important that we get this joined-up view of the governance system and that we have some guidance for local area energy plans. As the Minister knows, this is not a conceptual approach—it is a well-tested road. In fact, since the end of last year, these have now been rolled out and completed for all 22 Welsh councils. There is a funded programme, a technical adviser to ensure coherence in the Energy Systems Catapult and there is that guidance to ensure a systems approach. Now that they have that basis, there is then flow-up to their own national plan as well, which offers great benefits.
This amendment would put a duty on the Secretary of State to publish guidance for local authorities on local area energy planning and to clarify some of the criteria that should be included with any guidance. This is based on the Energy Systems Catapult guidance and includes how local area energy plans can contribute to meeting our net-zero environmental and adaptation targets.
I will briefly illustrate one of the reasons we need this. The pilots undertaken in the UK, in Newcastle, Bridgend and Bury in Manchester, divided each area into zones suitable for different types of heating technologies. The balance of technologies across the three areas shows how different areas can be. In Newcastle, the plan found that roughly half the homes could be heated by a heat network, in Bury it was less than 30% and in Bridgend it was 15%. In Bridgend, a far higher proportion of homes would need to be heated with high-temperature heat pumps to save on the extra expense of retrofitting insulation in its poorer-quality housing stock.
Baroness Bennett of Manor Castle (GP)
My Lords, I offer my strongest possible support for Amendment 90 in the name of the noble Earl, Lord Russell, to which I have attached my name, and some slightly qualified support for Amendment 177, which we have just heard about from the noble Lord, Lord Ravensdale.
Coincidentally, and entirely without prompting from me, I started the day—rather a long time ago now—speaking to a senior civil servant. They said to me that they thought the great malaise of the UK was people’s lack of a sense of agency—a lack of ability to step up, take control and change what is around them and the direction of the country. This amendment, starting with the local and saying, “Here in your community you can democratically work through your council, local authority and combined authority to decide how to deliver your energy” is the perfect way to start to address those issues.
We are the most centralised polity in western Europe: power and resources are overwhelmingly concentrated here in Westminster. We have almost universal agreement that we have to have an energy transition. This is a major infrastructure element in all our lives, as we have been discussing this evening. We also must have a just transition, so that no community is left behind. Every community needs the opportunity to make plans for its energy future, and that is exactly what Amendment 90 seeks to achieve.
I note that a great deal of work and resources have been put into this over a long period of time. The Centre for Climate Engagement at the University of Cambridge, funded by Innovate UK under the Net Zero Living programme, is building on the work of the Skidmore review—we are talking about cross-party approaches across all Benches—which emphasised the importance of local government, leadership and place-based actions in dealing with the climate emergency.
This goes back a very long way. Green councillor Andrew Cooper, who was working through the European Committee of the Regions, got the UN COP process to acknowledge locally determined contributions. Everyone has heard of nationally determined contributions, but that was about locally determined contributions. Of course, the energy system is only part of this, but it is a very crucial part that impacts people’s lives and communities and on what they look like.
Your Lordships’ House has, in a very long wrestle with two successive Governments, finally got an acknowledgement of the importance of community energy. What I think we would see going forward is local authorities and combined authorities being very keen to encourage and support community energy. That of course is where we can see public support and financial returns growing. This is not about some giant multinational company coming and landing on your community, but about your community saying, “Right, how do we want to generate our energy?” That has to be the foundation.
I am broadly in favour of Amendment 177, but my question is around the weight and shape of the word “guidance”. We are talking about local energy plans, and anything provided from the centre should be support and not—as we see, for example, in planning and with housing allocations—direction. If it is indeed guidance, Amendment 177 is pointing us in the right direction. Together, these two amendments are crucial and I can see no reason for the Government not to accept them.
Lord Hunt of Kings Heath (Lab)
My Lords, I support the amendment from the noble Lord, Lord Ravensdale, to which I have added my name. I am also very sympathetic to the amendment tabled by the noble Earl, Lord Russell.
The noble Baroness, Lady Bennett, raised a very interesting question about the centralisation of this country. In one sense, this Bill is about further centralisation when it comes to major infrastructure projects, which are so crucial to our growth. In essence, in the housing agenda, as well as with a lot of energy infrastructure projects, local government has not been very helpful and has been obstructive. If we believe that growth is a strategic aim of government, as I believe it to be, stronger central direction is vital. The question, however, is whether it can be complemented by local initiatives, which do indeed give local people ownership. That is where I agree with noble Baroness, Lady Bennett: community energy schemes are a fantastic way to leverage support from local people for the kinds of changes that we want to make to our energy infrastructure.
The noble Lord, Lord Ravensdale, obviously speaks with great authority as an energy expert, but he has also played a hugely important leading role in the Midlands Engine. He chaired the Midlands Energy Security Taskforce, which of course strongly supports local area energy plans.
When I was a Minister at DESNZ, I became very much aware of the potential of local community-based energy projects. I remember one visit to my own city of Birmingham, under the auspices of Footsteps: Faiths for a Low Carbon Future, when I met a number of local groups that were dedicated to community green energy projects but were seeking support from agencies at the centre to deliver something tangible. Interestingly, the MECC Trust, based in Balsall Heath, is hosting the launch by the Lord Mayor of Birmingham, in a couple of weeks’ time, of Birmingham’s first net-zero retrofit demonstrator community hub. The potential of hundreds of projects such as this, up and down the country, is very clear.
The amendment that the Government brought to the then Great British Energy Bill, which added projects involving or benefiting local communities to the crucial objective section, was very important. Great British Energy has made it clear that it will work with local energy groups, councils and mayors to fund and support community-led energy projects.
Noble Lords will be aware of recent decisions by some local authorities to roll back commitments in relation to net zero. Ironically, this is taking place as the scientific evidence of the impact of climate change becomes ever clearer. I do not think we can let this go by default. In essence, the noble Baroness asked: what does guidance mean? I think you really have to put the two together. I take the amendment of the noble Earl, Lord Russell, to be a statutory requirement on local authorities to encourage and develop local energy plans. I think that is really important now, in the light of some decisions being made by local authorities. Then, it seems to me, the guidance that we are suggesting fits into that structure.
I hope that the Government will be sympathetic to the need to make sure that local authorities do not pass up the opportunity to support local community energy groups.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, this group of amendments relates to the development and implementation of local area energy plans. The proposals raise important questions about the role of local authorities in our transition to a decarbonised, secure and efficient energy system. We have heard some thoughtful contributions about the tensions between local and central government, but also of the enormous potential when the right balance can be struck between the two.
Let me begin with Amendment 90, in the name of the noble Earl, Lord Russell, which would require all local authorities to prepare and publish local area energy plans. These plans would outline current and future energy needs and the decarbonisation pathways to meet them. The underlying intent here is one we can all recognise. The energy transition cannot be delivered only centrally; local authorities must have a clear understanding of their energy demands and the means to meet them sustainably. The noble Earl, Lord Russell, made a number of good points, reinforced by the noble Lord, Lord Hunt of Kings Heath, on which we might all agree in principle.
However, while we acknowledge the ambition behind this amendment, we would caution against placing an additional statutory duty on all local authorities, particularly at a time when many face stretched resources and competing priorities. A blanket requirement risks creating a burden of compliance that may prove challenging for councils already struggling with core service delivery. We must ensure that our expectations of local government are realistic, proportionate and backed with adequate support.
Amendment 177, tabled by the noble Lord, Lord Ravensdale, seeks to define the consultation and approval process for local area energy plans and mandates the provision of guidance to assist local authorities in their preparation. We recognise the positive intention here to provide clarity, consistency and technical support to authorities seeking to engage with this important agenda. This amendment also aims to widen the uptake of such planning and to define better the role of local authorities in delivering the future energy system. Those are commendable aims. While we must avoid onerous procedural hurdles or risk diverting local effort away from practical delivery into process-heavy reporting, we hope the Minister will consider this amendment carefully.
In conclusion, these amendments rightly draw attention to the importance of empowering local authorities in the energy transition. I welcome the debate and the ideas put forward, but urge a cautious, pragmatic approach. I look forward to the Minister’s response and any reassurances he can give on the Government’s direction in this space.
The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Lord Khan of Burnley) (Lab)
My Lords, I start with Amendments 90 and 177, which relate to local area energy plans. I thank the noble Earl, Lord Russell, the noble Baroness, Lady Bennett, and the noble Lords, Ravensdale and Lord Hunt of Kings Heath, for tabling these amendments.
Amendment 90, tabled by the noble Earl, Lord Russell, seeks to require all local authorities and combined authorities to produce a local area energy plan. The Government are committed to working in partnership with local government, in recognition of the essential role that local places play in accelerating to net zero and supercharging our mission to deliver clean power by 2030. We recognise that, in support of this role, some local authorities have already produced local area energy plans and have used them to plan for the investment they need to support the energy transition and deliver net zero in their areas. We welcome the work that many local authorities have undertaken to develop and deliver their local energy plans. Local authorities may well be considering how planning their future energy needs may form part of their local growth plans or help contribute to Ofgem and NESO’s work on regional energy strategic plans.
However, this is not the right time to place further burdens on local authorities, while the approach to energy planning is still under development. We are considering how these plans might align with a range of regional and national plans, including the regional energy strategic plans, the warm homes plan, heat network zoning and Great British Energy’s local work. With that in mind, we continue to consider the potential benefit of local net-zero plans, working with partners across central and local government such as the local net-zero hubs, Great British Energy, NESO, Ofgem and Innovate UK.
We are also learning from the work of several local authorities in England which have already undertaken to develop their own plans, in recognition of the important lessons that can be learned from local authorities. In the meantime, local authorities that wish to assess whether energy planning fits with their wider strategic plans can access a range of support to help them develop local plans, including the tools and advice available on the Net Zero Go digital platform, supported by the department and the advice and support available to them from their local net-zero hubs.
Earl Russell (LD)
I welcome the Minister’s response to my amendment and the amendment in the name of the noble Lord, Lord Ravensdale. However, I am hearing from the Minister that this is not the right time to do this stuff. I understand that the Government are actively drawing up different strings and bits of policy and bringing them together. However, if now is not the right time, when might be the right time?
The Minister says that the Government are drawing together policy but also that there are loads of policy guidance available for local authorities that want to do this. The two statements are almost contradictory. Now is not the right time for the Government to give guidance, but guidance is available to any local authorities that want it. My worry is that this leads to guidance that is much more open to interpretation, which the Government do not have proper control of and which could be followed in multiple different ways without the Government having control over it. I strongly ask the Minister to think again on these matters. These are really important issues. I recognise that the Government are forming policy, but forming policy and working with local authorities are not contradictory things. These are everyday matters of government.
I thank the Minister for his response but call on the Government to think again.
Lord Khan of Burnley (Lab)
I appreciate the noble Earl’s contribution, but I politely disagree in that there is a lot of advice and support from local net-zero hubs funded by DESNZ. I understand and sympathise with what he is saying. We have all said today that we want to get moving as fast as we can, in a speedy manner, and to grow. This is all part of the agenda. We want to make sure that we get things right, be concise and have the right level of engagement and consultation, to ensure that when we have the clear plan moving forward it is well understood and implemented and does not have unintended implications or consequences.
Lord Ravensdale (CB)
I want to complement what the noble Earl just said. A couple of years back, when I raised this as part of the Energy Act 2023, I remember being given a similar response: this was still being considered by the Government as part of how it would fit into the bigger picture. But I think the Government need to recognise the real importance of that governance-level flow-down from national to regional to local, the importance of local understanding in this picture and the real priority that needs to be placed on developing this guidance and strategy for local areas to take it forward. I hope the Minister will reflect on that.
Lord Khan of Burnley (Lab)
I take note of the noble Lord, Lord Ravensdale, complementing the noble Earl, Lord Russell, and I recognise that there is a lot of work to do. I appreciate that the noble Lord has raised this before, but now we actually have a Planning and Infrastructure Bill which will very much fix the foundations of the whole growth to net zero and clean energy 2030.
My final and important point on this is that now is not the right time because we do not want to put further burdens on local authorities while we are still developing and finalising our energy planning. That is still under development, but I reassure the noble Lord that we are on it. We want to make sure that this happens as fast as possible, and this Bill will help us to change a lot of the infrastructure, thinking and systems in place in order for our country to grow.
Baroness Coffey
“Electricity infrastructure: consentConsent may only be granted for any electricity infrastructure, including generation, transmission through interconnectors, and any associated infrastructure including substations, within a 50 square mile area where the cumulative capacity is less than 10% of the country’s total electricity capacity.”
Baroness Coffey (Con)
My Lords, we are in the final stretch, and I will not be at all insulted if people choose to vacate at this stage of proceedings, recognising that we are past the usual hour. But the future of energy infrastructure matters. It matters where it is in the country; it matters for national security. That is why I have tabled Amendment 94C.
It is no secret to those people who have been in this Chamber or the Moses Room when I have talked about energy that I have recognised that part of Suffolk has a huge number of NSIPs relating to energy. I will talk about various issues in the three different groups; I have done this somewhat deliberately to try to make sure that Ministers and officials from each of the different departments really consider what they are signing up to and what is happening with the progress of electricity infrastructure across this country.
I am not in any denial that we need to consider carefully the transition to a different sort of grid. This needs to be considered carefully in recognising what is happening on concentration. In about 10 years’ time, it may have gone down a little, but about 30% of the country’s electricity will be generated in quite a small part of the country or it will act as the host point for interconnection from the continent. That will be concentrated in an area not of 50 square miles, as I referred to in my amendment, but considerably smaller. That is happening through the continuing generation of Sizewell B, the future generation of Sizewell C and interconnectors coming in at various points along the Suffolk coast—interconnectors to the continent and to the offshore wind farms that are already operational and currently being expanded.
One of my concerns—I appreciate that this is another issue of which I never managed to persuade my former colleagues, but I am hoping that the Government will listen—is that it is a huge matter of national security that we are concentrating so much of the energy in this country in a very small part geographically. I will not call that overemphasis a sitting duck, because I am very conscious of all the security that goes into nuclear power stations and the like, but it is an overconcentration. We think about the impact that a breakdown of resilience can have, and it could end up depriving the rest of the country of desperately needed energy.
It is for that reason I genuinely believe that, strategically, the Government should be thinking about spreading our principal electricity generation around the country. I will come to other reasons why I think the cumulation does not help, but it is that sort of threat which we should be considering right now. I am aware of the concerns in continental Europe about the deployment of certain grades of weapons by foreign actors. I am aware of the risk that has to be monitored and assessed, and we should be doing that in this country as well. That is why I genuinely believe the Government should reconsider their accumulation of projects and be far more strategic in where all these different energy sources are being placed in the country.
To that end, I believe that we should be looking to reflect the fact that we have opportunities in different parts of the country where, by the way, the Government already have land—they do not need to acquire more land. Too often, it is the Ministry of Defence refusing to take on some of these projects, because it wants to do various practices and different things like that. At the same time, plenty of agriculture is being sacrificed, but I am conscious we have already had that debate, so I do not want to dwell on it.
It is for those reasons I hoped that, by tabling this simple amendment, DESNZ would consider, with other parts of government, whether it is really treading down the right path in concentrating energy production and whether it should be more strategic in its thinking. With that, I beg to move.
Lord Jamieson (Con)
My Lords, I thank my noble friend Lady Coffey for bringing this matter to the attention of the Committee, in particular the issue of concentration of power supply and potential implications. This amendment would limit the consent for electricity infrastructure within a 50-square mile area where the cumulative capacity is more than 10% of the country’s total. This raises several important questions for the Government. What assessment has been made of the cumulative impacts on a local area already hosting significant infrastructure? Additionally, how will fairness between different regions be measured and maintained? What mechanisms are in place to prevent overconcentration in certain areas at the expense of others, given, as my noble friend mentioned, the potential strategic risks to the country? I look forward to the Minister’s reply.
Lord Khan of Burnley (Lab)
My Lords, Amendment 94C, tabled by the noble Baroness, Lady Coffey, would create a new local area test, designed to limit the consenting of electricity infrastructure by reference to a percentage of the national total. In other words, it is addressed at the overconcentration of infrastructure in particular places.
The Government agree with the noble Baroness that the siting of electricity infrastructure should be considered carefully. While the Government are taking a strategic view, they are doing so via the strategic spatial energy plan and the centralised strategic network plan, due for publication by the end of 2026 and 2027 respectively.
It is unclear how exactly the amendment is intended to work in practice, given the complications of concepts such as cumulative capacity. It is not in the national interest for individual applications to be assessed or prevented by reference to a subjective threshold. They must be judged on the need case for the infrastructure weighed against local impacts, and that is precisely what the current system achieves. For projects designated as nationally significant, known as NSIPs, there is already a national policy statement, approved by Parliament, which sets out in detail the need case for this infrastructure and all the considerations that must be applied when consenting it.
This amendment would add further complexity to the consenting system, which could lead to a slowing down of the decision-making process for low-carbon and electricity infrastructure projects, which are crucial for this country—although, in practice, the threshold of 10% of the entire country’s electricity capacity is so high that it is highly unlikely that any project would in fact reach such a threshold.
The Government agree that infrastructure planning should have a special element. The strategic special energy plan will support a more actively planned approach to energy infrastructure across England, Scotland and Wales, land and sea, between 2030 and 2050. It will do this by assessing and identifying the optimal locations, quantities and types of energy infrastructure required for generation and storage to meet our future energy demand with the clean, affordable and secure supply that we need.
Baroness Coffey (Con)
My Lords, with respect to the Minister—I appreciate the answer he has given me— there is one point that perhaps it would be worthwhile DESNZ genuinely looking at. There is no doubt that there is a small part of Suffolk that will be responsible for more than 10% of the capacity in the future. But I appreciate that is not the remit of the Minister speaking tonight.
Of course I am disappointed. I am concerned. But, recognising the late hour, which is why I have truncated my comments, I will withdraw the amendment.
Baroness Coffey
“GEMA: funding constraints based on planning consentIf an electricity project has not received planning consent, the GEMA must not grant or consider any grant—(a) of Early Construction Funding, or(b) relating to Accelerated Strategic Transmission Investment.”
Baroness Coffey (Con)
I specifically wanted to speak to the funding of issues such as energy projects. This issue, probably more than anything else—perhaps the fact that the national grid is part-owned by American private equity owners may wind people up a little bit more—is the one that, fundamentally, makes communities around the country, and I have seen it much more locally, consider the planning system, when it comes to energy projects, a complete and utter joke.
It is already decided, regardless of what happens in the planning system, that these projects will go ahead. It does not matter if they do not quite fit the planning law, because a few tweaks could potentially be made. It does not matter what the community thinks. It does not matter what Parliament thinks, because Ofgem has already made the decisions and determinations that these projects can go ahead and money can start being spent on them before planning has even started.
I give your Lordships the example of Norwich to Tilbury. Ofgem came up with its early construction funding in April 2025. Its planning submission was submitted only on Friday. Sea Link, a project that I will continue to fight for as long as I can, had its ECF announcement made. Normally, Ofgem’s policy is that only 20% of the funding can be granted, in effect, through early construction funding. Ofgem has given 48% to the national grid—NGET—to proceed with Sea Link. Planning had to be delayed because there was an error in the planning process, so that got going only last month as well. This is what the people in communities in various parts of the country see. What is the point?
That is my huge frustration: in effect, there is a predetermination that planning applications are going to be made. I am still slightly surprised that people have not been successful in certain aspects of getting this JR-ed at some point. So here we are. We have projects going when they have barely started, or in some cases have not even started, the planning process.
I have proposed this new clause to restore some credibility to planning, to restore some credibility to the idea that it is not just a commercial deal or a done deal. Ofgem should be restrained from granting this sort of funding process until at least the planning document has been submitted and ideally been given consent. For what it is worth, a lot of this kind of scepticism would go away if there was a genuine belief that the planning system meant anything at all.
I am conscious that, to try to get to 2030 on this accelerated timetable, we need to get on with these projects. I have already referred to previous ones where planning processes are still under way when we have already reached the consented capacity for a series of energy projects, and yet they keep coming.
No wonder people are desperate and tabling JRs, or pre-action protocols and the like. They are so frustrated with a machinery that says, “Yeah, we’ll sort of do the basics, but it is done”. This is the reason that I felt particularly strongly and wanted to table Amendment 94D: just to be a voice for people who want to believe that our country respects law and respects that there is not a predetermination. God alone knows how many consultations I went through as a Secretary of State when I was told, “Be very careful, you can’t come to a predetermination in all of this”. Yet Ofgem, of course, gives the game away.
I will not say any more. To be candid, I do not expect a huge response from the Minister. I am not trying to be rude in advance; perhaps I am predetermining what I am expecting to hear. Nevertheless, I am saying this for people right across the country: let us do the right thing; let us make sure that we are not allowing money to be printed for developers who have not even started the actual planning process. I beg to move.
Lord Jamieson (Con)
My Lords, I rise briefly to talk to Amendment 94D, tabled in the name of my noble friend Lady Coffey. This amendment concerns constraints on grants delivered by the Gas and Electricity Markets Authority. I simply ask the Minister whether he can clarify how the Government intend to ensure that such grants are awarded in a way that is both transparent and consistent across different technologies. I look forward to the Minister’s response.
Lord Khan of Burnley (Lab)
My Lords, Amendment 94D tabled by the noble Baroness, Lady Coffey, seeks to prohibit the Gas and Electricity Markets Authority—GEMA—from granting or considering early construction funding or accelerated strategic transmission investment unless planning consent has already been secured.
While I understand that network companies should not be given excessive funding for projects where procurement or construction costs are not yet incurred, I must urge noble Lords to consider the unintended consequences that this amendment would have for our energy infrastructure and our collective ambition to deliver a net zero-ready grid.
Let us be clear: the mechanisms in question, early construction funding and ASTI, are not blank cheques. They are carefully staged investments, including stages designed precisely to support the preparatory work that enables planning consent to be sought in the first place. This includes environmental assessments, route design, stakeholder engagement and technical feasibility studies. These are not luxuries; they are prerequisites for any responsible and successful planning application.
To deny access to funding before planning consent is granted creates a paradox. Planning consent cannot be obtained without preparatory work, and preparatory work cannot be funded without planning consent. This amendment risks trapping vital transmission projects in a bureaucratic cul-de-sac.
We are not debating theoretical infrastructure; we are talking about the backbone of our future clean energy system—projects that will connect offshore wind, solar and other renewables to homes and businesses across the country. These are the arteries of our economy. Delaying them risks not only our clean energy mission and net-zero commitment but the security and affordability of our energy and wider economic growth as grid capacity is needed to power new investments.
Moreover, GEMA already operates under a rigorous framework of accountability and oversight. Funding decisions are not made lightly; they are subject to scrutiny, cost-benefit analysis and alignment with strategic national priorities. To impose a statutory constraint at this stage would not enhance that process but hinder it. I therefore kindly ask the noble Baroness, Lady Coffey, to withdraw her amendment.
Baroness Coffey
“Energy infrastructure projects: publication of environmental principles duty assessmentWhere an energy infrastructure project requires assessment by either—(a) the Secretary of State, or(b) the Gas and Electricity Markets Authority,the individual or body making that assessment must publish its assessment of the environmental principles duty in full, including advice provided and considered.”
Baroness Coffey (Con)
My Lords, again, I have split this amendment off from the other consideration of energy infrastructure projects. To cut to the chase, we need to make sure, bearing on some of the debate that we have had earlier about how we are going to achieve joint objectives, not only that we have a fit-for-purpose grid but about how we move the transition along. I have consistently tried to make the case that that cannot be done at the expense of the natural environment.
Arising from the Environment Act 2021 is a duty on Ministers specifically to consider policy in terms of environmental principles, but I think I am right in saying there is also a requirement to consider the genuine impact of projects when a Minister is giving consent to them. One element will be thinking about biodiversity as well as considering the natural capital accounts of the country—on which we do annual balance sheets which are put forward by the Treasury—and a key consideration should be what is happening as a consequence of the environment to any particular project. One of the things that I am afraid is somewhat shrouded in mystery here is that normally there is just the response, “Yes, we have considered this”, and nothing is shared with the country. My amendment is intended to ensure transparency.
I am conscious that the sub judice rule might apply, and there is already a legal case against the Deputy Prime Minister over her Section 20 statement regarding the Bill—I am assuming that, by extension, that applies to the Minister as well. However, it is important that not only Ministers but the wider country understand quite what is happening in this balance. The reason I say that is that primary legislation is already in place where the primary indicator is about the recovery of aspects of nature, particularly thinking of species. As a consequence, transparency is vital, and the OEP has been regularly pushing for a lot more transparency on exactly this sort of information so we have a sense of whether we are going to be anywhere close to hitting the targets that this Parliament has already agreed to in both primary and secondary legislation. On that basis, given the time of the evening, I simply beg to move.
Baroness Scott of Bybrook (Con)
My Lords, I thank my noble friend Lady Coffey for bringing Amendment 94F to the attention of your Lordships. It would ensure that the duty relating to environmental principles was published in full. I ask the Minister: how are the Government going to monitor compliance in relation to environmental principles? As importantly, how will Parliament be kept informed of progress in this area? I thank my noble friend Lady Coffey for tabling her amendment and allowing us to ask those questions, and I look forward to the Minister’s response.
Lord Khan of Burnley (Lab)
My Lords, I was beginning to feel a bit of déjà vu before the noble Baroness, Lady Scott, spoke in place of the noble Lord, Lord Jamieson.
Amendment 94F, tabled by the noble Baroness, Lady Coffey, seeks to ensure that where an energy infrastructure project requires an assessment in relation to the environmental principles policy statement by the Secretary of State or the Gas and Electricity Markets Authority, this assessment and any advice provided and considered as part of that assessment is published.
As highlighted throughout today’s debate and in earlier discussions on the Bill, it is essential that we press ahead and deliver the critical infrastructure that we need to cut greenhouse gas emissions to net zero by 2050 and to achieve a clean power system by 2030. I thank the noble Baroness, Lady Coffey, for tabling this amendment and for the opportunity to set out both how the environmental principles policy statement and the environmental principles more broadly are given due regard by this Government.
Baroness Coffey (Con)
My Lords, we will return to a lot of this in Part 3 of the Bill, so I beg leave to withdraw the amendment.