(1 day, 14 hours ago)
Lords ChamberMy Lords, I have just a few brief points to add to what the noble Earl, Lord Russell, stated. For me, this goes back to the governance system. Of course we have made progress in recent years; we have the strategic spatial energy plan, which is being managed by NESO, but we are hearing some feedback on that plan. In effect, it tries to map out what energy projects should be located where, in minute detail across the country. The industry has highlighted a number of problems with trying to do this at that scale; we need local knowledge flowing up into these plans. As well as the top down, we need the bottom up. We need to capture all the great knowledge that local areas and local authorities have.
I will just take heat as an example. One area may be better suited to heat pumps and another to heat networks. One area may have relatively well-insulated housing stock; another, poorly insulated housing stock. We need to capture all that and bring it into the energy transition. It is an important piece of the puzzle to making this energy transition work and making it cost effective. A recent study by UKRI highlighted tens of billions of pounds of savings if a place-based approach is taken over a place-agnostic approach, so it is important that the Government make some progress on this. We have not seen the progress needed.
We have had some good pilots using this approach in various areas across the country, but we now need the Government to get behind this approach to feed all the benefits of that local knowledge into the energy transition. I would welcome some reassurance from the Minister at least on timescales, on how they see this programme developing and on it reaching a decision on the role that local area energy plans will play in the energy transition.
My Lords, Amendment 24 in the name of the noble Baroness, Lady Bennett of Manor Castle, seeks to ensure that small-scale renewable energy products are prioritised by the independent system operator and planner. As the noble Baroness knows, we on these Benches are very concerned about energy prices and want to see Ministers taking a pragmatic approach to delivering the energy infrastructure that we need.
I know that there is a particular interest in renewables, but we need to take a whole-system approach, tackling policy costs as well as the marginal costs of electricity. I would be interested to hear from the Minister what assessment the Government have made of the current support for renewables at a smaller scale, and it would be helpful for the House to know what plans the Government have on smaller renewables.
Although we feel that Amendment 46 in the name of the noble Earl, Lord Russell, is too prescriptive, it raises an important question about planning our energy supply for the future. Clearly, local needs should be taken into account. I look forward to the Minister’s response.
Amendment 24 tabled by the noble Baroness, Lady Bennett, though well intentioned, is not necessary to achieve the desired outcome of greater support with the grid connection process for smaller renewable energy projects. The amendment seeks to require the independent system operator and planner to prioritise support for smaller renewable energy projects when they apply for a grid connection. I recognise the noble Baroness’s helpful attempt to support smaller renewable energy projects. The Government appreciate the important role that smaller renewable energy projects, such as rooftop solar and community energy, can play in meeting our clean power mission, reducing energy costs and engaging communities in renewable energy.
Along with the independent energy regulator, Ofgem, the Government also recognise that more needs to be done to support smaller electricity network connection customers, including renewable energy projects, but this is achievable within the regulatory framework without the need for primary legislation. Indeed, Ofgem has already proposed stronger incentives and obligations on network companies to provide better connection customer service. Following a consultation earlier this year, it expects to publish further details and next steps in the coming weeks.
The amendment’s wording would also not meet the desired outcome. Section 16 of the Electricity Act 1989 requires electricity distribution network operators to connect customers. The amendment would place an obligation on the independent system operator and planner only in terms of the way in which the duties under Section 16 are complied with. However, the independent system operator and planner has no duties under Section 16. Given the legislative unworkability of the amendment, and given work already under way to support smaller renewable energy connection customers, I ask the noble Baroness, Lady Bennett, to withdraw it.
Amendment 46 in the names of the noble Earl, Lord Russell, and the noble Lord, Lord Ravensdale, seeks to require the Government to commence a programme of research and analysis on the imposition of a statutory duty on local authorities to produce local area energy plans, and publish a report on their findings; and to require the Secretary of State for Energy Security and Net Zero to make a formal policy decision on a statutory duty within two years. We recognise that the amendment moves the debate on from Committee so that an immediate burden is not placed on local authorities to produce a local area energy plan, and nor are the Government required to immediately produce national guidance for local authorities on local area energy plans. The amendment places this work in the context of planning for electricity infrastructure, but the approach set out in the amendment risks constraining and duplicating work already under way, and it may constrain the way the Government continue to work in partnership with local government.
The overall approach to this work is being undertaken jointly with local government through the ministerial Local Net Zero Delivery Group, which meets quarterly. This is co-chaired with the Local Government Association. The group has discussed the development of a framework for local government to provide more clarity on the roles and responsibilities for net zero and energy. This group will need to reflect on the role of local government on energy planning and net zero in the context of the warm homes plan and Great British Energy’s local power plan, both due shortly.
The kind of research envisaged by the amendment is already under way. This has been commissioned by DESNZ from local government officials working in local net zero hubs. This includes preparing guidance for local authorities on what they need to do on energy planning to prepare for the regional energy strategic plans that Ofgem and the National Energy System Operator—NESO—are producing. Ofgem and NESO are looking to consult on the approach and methodology later this year. They are also developing guidance and tools for local government to help it specify and procure high-quality data to support energy planning, with outputs due by January 2026.
In conclusion, we do not believe that primary legislation is the right place to set out in such detail a programme of work to review local energy planning. We are sympathetic to the points raised and agree with the point made in Committee about the importance of including local understanding in delivering the bigger picture on energy planning. I hope I have been able to give some assurances that the Government agree that local involvement in energy planning is important and that the kind of work the amendment envisages is already under way.
I must stress the need to review local area energy planning in the context of ongoing work and other policies and strategies as and when they are published, rather than to the timetable and in the way set out in the amendment. Preferably, this should be in partnership with local government, reflecting needs and approaches. I hope that the noble Baroness, Lady Bennett, is satisfied with our response and will consider withdrawing her amendment.
My Lords, I thank my noble friend Lord Fuller for his amendment, which raises the important question of fire safety and long-duration energy storage. It is right that there should be a role for local fire authorities in looking at planning applications involving potentially highly combustible materials. It is clear that energy storage based on lithium batteries or other highly reactive materials, if not suitably engineered, could pose a fire risk.
This is still a relatively new large-storage technology, where councils and fire authorities are building their levels of expertise. In this context, having clear national guidance on safe installation and construction akin to building control, taking account of HSE, fire, industry and other experts would facilitate the assessment of these schemes. Do the Government plan to provide such clear guidance that councils, industry and others can rely on in assessing applications for LDES that would also streamline consultation and hence facilitate local engagement with fire authorities?
My Lords, I thank the noble Lord, Lord Fuller, for his amendment. I start by apologising to him for the meeting date, which I understand is 30 October. He will know from comments made earlier that I have had a great number of meetings before Report, so I can only assume that it was a misunderstanding and apologise to him that it was not held before we got to Report.
The noble Lord said that over on this side we would not be shedding any tears about the price of Lamborghinis going up, but he obviously does not understand my guilty pleasure of fast cars—but then I come from the same town as Lewis Hamilton, so I have an excuse.
The noble Lord’s amendment seeks to require long-duration electricity storage—LDES—operators to consult the local fire authorities to assess the project’s fire risk before installation. In Committee, the noble Lord commented on the frequency and danger of lithium battery fires. I thank the noble Earl, Lord Russell, for the distinction that he made between individual battery fires and these large-scale ones. I reassure the noble Lord that the Government take issues relating to fire safety extremely seriously—I know that my noble friend Lord Khan gave the same reassurance—but we still do not feel that this amendment is proportionate or necessary, and indeed it could create unintended risks for fire services.
I understand that these concerns are largely in relation to lithium-ion batteries. Analysis from DESNZ suggests that fires at battery energy storage sites are rare. The latest available five-year annual average fire incidence rate for GB batteries is 0.7%, which is lower than that for wider non-domestic building fires in England, which is around 0.8%. We expect all LDES developers to ensure that their sites are safe, regardless of the technology employed. It is still, of course, vital that any risks are appropriately and proportionately managed to ensure that we maintain public safety and trust. We have spoken previously of the role that the Health and Safety Executive plays in regulating storage assets. Developers and operators of these sites have a legal duty to manage risks, and government expects them to engage with local fire services when drawing up emergency response plans.
Defra will conclude its industry consultation shortly on the modernisation of environmental permitting for industry, which includes proposals to bring BESS within scope of the 2016 permitting regulations. If introduced, EPR would require developers and operators to demonstrate to the Environment Agency how specific risks are being managed, while providing for the ongoing regulation of battery storage sites. While it is already the Government’s expectation that developers engage with fire services during the planning process, this amendment risks imposing additional administrative burdens on fire services which are not proportionate to the risks associated with this technology.
DESNZ is actively engaging fire authorities and the battery storage industry on the whole issue of battery fire safety. In fact, Minister Shanks hosted a round table today on battery safety, which included representatives from the National Fire Chiefs Council and battery developers, so I can reassure the House that Minister Shanks is taking this issue extremely seriously. I hope that that provides some reassurance to the noble Lord, Lord Fuller, and the noble Earl, Lord Russell.
I hope that the noble Lord, Lord Fuller, is satisfied with the reassurances and will agree to withdraw the amendment.
My Lords, I came to this debate keen to divide the House on this important matter. However, during the debate a number of issues have come to light, not least the meeting held today by Minister Shanks and the acceptance that we are still owed a meeting where we can discuss this. Rather than detain the House at this point with a Division, I wonder whether the Minister and I might have an understanding that we will keep the date in the diary and, if I am not satisfied, then the opportunity will come to bring this back at Third Reading.
My Lords, the amendments in my name seek to ensure that all regulations relating to the bill discount scheme set out in Clause 26 are subject to the affirmative parliamentary procedure.
The Government welcome the recommendation of the Delegated Powers and Regulatory Reform Committee and, through these amendments, we accept its suggestion. We understand and recognise the importance of parliamentary scrutiny and agree that the regulations discussed in Clause 26 are matters of substance. These amendments will help ensure that the regulations implementing the bill discount scheme are appropriately reviewed by Parliament, aiding their workability and ensuring a smooth implementation of the scheme. I cannot guarantee to the noble Baroness, Lady Pinnock, that there will be a Halifax clause, but I hope that the House will support the amendment. I beg to move.
I cannot react to the Halifax clause, since I do not live in Halifax.
I welcome the move to the affirmative procedure but remind the Minister that there are already 22,000 high-voltage carrying pylons in this country, over 250 of which are in Doncaster and over 700 of which are in North Yorkshire, including in the Yorkshire Dales National Park.
That leads me to the argument I made in Committee: if the Government are minded to provide compensation for those residents and customers who live adjacent to new plants, either transmitting or creating electrical energy, then, as the Minister confirmed in Committee and in a conversation we had during recess, that payment—that compensation—will be a burden added to every electricity customer. That does not seem right to me. If those folk who are going to have a new imposition of electrical infrastructure are to have compensation, surely it should be funded by that electricity region and not by those that have, for instance, had pylons for many decades because regions knew it was in the national interest to do so.
I am pleased that we are going to the affirmative measure in consideration of compensation, because it will enable me to make arguments in favour of not the Halifax amendment but the Huddersfield amendment—let us call it that, as it is a bit nearer home. It is important, because to me this is about fairness. Those of us in the north—the very far north—and the Midlands should have fair treatment compared to those who have the infrastructure now. I am sure that the Minister will enjoy having that debate with me when we get around to doing the SIs.
My Lords, group 14 concerns a matter of principle that cuts across the Bill: the appropriate level of parliamentary oversight for far-reaching executive powers. New Section 38A introduces a consumer benefit scheme to provide financial compensation to those living near new or upgraded electricity transmission infrastructure. The principle behind this is entirely sound. It is right that communities that host nationally significant infrastructure should share in its benefits.
We support Amendments 26 and 27 in the name of the Minister. Amendment 26 would ensure that all regulations made under this section are subject to the affirmative procedure, not just those relating to offences or enforcement. These regulations will define who qualifies for support, how benefits are delivered and the responsibilities of electricity suppliers. These are substantive decisions that should not be made without oversight of Parliament.
Amendment 27 is a necessary consequential amendment to reflect this change. Given the wide scope of delegated powers in the new section inserted by the clause, it is entirely appropriate that Parliament has a say in how much a significant scheme is developed and applied. The affirmative procedure does not prevent progress. It simply ensures that when Ministers exercise broad powers, they do so transparently and with accountability.
We believe these amendments strike the right balance between enabling the Government to deliver the scheme and ensuring that Parliament plays its proper role. We are pleased to support them.
I thank the noble Baronesses for speaking, and I apologise to the noble Baroness, Lady Pinnock, for getting Halifax and Huddersfield mixed up. But neither Halifax nor Huddersfield will be getting their own clause in the Bill. I commend the amendments to the House.
My Lords, the amendment standing in my name seeks to create powers to ensure that seismic array systems are protected in areas where windfarms are proposed to be built. Sorry, I am on the wrong group. I have got ahead of myself—who thought I would do that at 9.30 pm? My apologies; I turned over too many pages.
I am in fact speaking to an amendment to Clause 28, which amends the Forestry Act 1967 to enable the development of renewable electricity projects in the public forest estate. The clause as currently drafted applies to both England and Wales. The Government have tabled these amendments to remove references to the
“Natural Resources Body for Wales”
and “Welsh Ministers” from the clause. At the start of today’s proceedings, I referred to some amendments which are there to respond to the devolved Administrations. Although Clause 28 represents an important and shared objective, the Welsh Government have indicated that they wish to pursue existing, non-legislative processes to develop renewable energy on the Welsh Government Woodland Estate. Following extensive negotiation, this amendment alters the provisions in Clause 28 so that they apply only to the Forestry Commission.
I turn to government Amendments 36, 37 and 40. The provisions restrict the exercise of the powers of the Forestry Commission by giving the Defra Secretary of State the power to make regulations requiring the commission first to obtain her consent. The purpose of the Secretary of State’s power is to ensure that Ministers are sighted on projects above a certain size and can assess the use of the land appropriately. In its report on the Bill, the Delegated Powers and Regulatory Reform Committee raised concerns that the regulation-making power was broader than the stated policy intent. The Government therefore propose Amendments 36, 37 and 40, which will amend the clause to clarify that consent may be required only for projects exceeding specific capacity thresholds.
The thresholds are set at 5 megawatts for wind and 50 megawatts for other sources and are now laid out explicitly in new Section 3B. New Section 3B also includes a power for the Secretary of State to make regulations to change the relevant wattage of the capacity thresholds, allowing flexibility to reflect future advancements in renewable energy technology. This change provides greater legal certainty while maintaining the original policy intent, and I therefore commend these amendments to the House.
Finally, I turn to Amendment 44, tabled by the noble Earl, Lord Russell, and signed by the noble Lord, Lord Krebs, and the noble Baroness, Lady Young of Old Scone. It would place statutory duties on the Forestry Commission, in the context of any planning, development or infrastructure function it might have, to take all reasonable steps to contribute to biodiversity targets set under the Environment Act 2021 and targets set under the Climate Change Act 2008 and to contribute to the programme for adaptation to climate change under the Climate Change Act. It would also add a requirement for the Forestry Commission to balance the development of energy infrastructure with the maintenance of ecosystem services, alongside a requirement to avoid any direct or indirect adverse effects on designated sites and irreplaceable habitats.
The driving force behind Clause 28 is the need to increase the amount of renewable electricity that can be generated in the UK. This will enable the Forestry Commission to increase its contributions to government targets set under the Climate Change Act. The Forestry Commission already has legal duties on afforestation and conservation, and by its very nature is already providing significant benefits to help tackle biodiversity loss and climate change. It is therefore my view that the amendment is unnecessary.
Of course, the Forestry Commission will have regard to the Government’s biodiversity targets while exercising these new powers. It has clear responsibilities to consider and act to improve the environment via its biodiversity duty under the Natural Environment and Rural Communities Act 2006, as strengthened by the Environment Act. This legislation requires public authorities, including the Forestry Commission, to consider and take action to further the conservation and enhancement of biodiversity. In doing so, it must have regard to any relevant local nature recovery strategy as well as any relevant species conservation strategy or protected site strategy prepared by Natural England.
Furthermore, I can assure the House that the Forestry Commission will consider the importance of the climate in its use of these new powers. It has existing ambitious net-zero targets which it is working to meet via several significant projects for woodland creation and peatland restoration currently under way across the public forest estate. In the context of climate adaptation planning under the Climate Change Act, the Forestry Commission already provides reports on how it is adapting to or proposes to adapt to climate change, and it will continue to do so.
However, in recognition of the Forestry Commission’s importance to the achievement of our statutory targets concerning climate and nature, the Government may consider changes to the Forestry Act 1967 should a suitable legislative vehicle become available. It is my belief that these wider considerations of the Forestry Commission’s duties would be best considered in the round rather than in relation to this specific measure, which limits the application of the duties to the development context. Given these commitments, alongside existing provisions, I hope the noble Earl is reassured and will not press his amendment.
My Lords, I will briefly respond to questions I have been asked during the debate. I agree with what has been said about the Forestry Act 1967. It was a long time ago now, but I firmly believe that the Act needs reviewing in the round, not in bits and pieces; otherwise, we will just exacerbate the current problem.
On the thresholds, the thresholds of five megawatts for wind and 50 megawatts for other sources were based on current data to illustrate the typical scale, visual footprint and land use of renewable energy projects at those capacities. If the amendment is accepted, the Secretary of State for Defra will be able to amend the capacity thresholds in future through secondary legislation. All renewable electricity projects that export electricity to the grid on the public forest estate will be reported to Defra each quarter.
The Secretary of State, as the landowner, and other Defra Ministers have decided that they would like early visibility of proposed developments above the relevant thresholds. The Forestry Commission will be required to submit an application for ministerial consent before entering into any significant legal or commercial agreements. This early-stage safeguard ensures appropriate oversight of land use decisions. Ministers decided that they want to assess at the pre-planning stage all projects above an agreed size on the public forest estate; that means all significant projects. As previously stated, the thresholds have been set at five megawatts for wind and 50 megawatts for all other technology types.
I hope that has helped to clarify the role of the Secretary of State and of the Forestry Act 1967. With that, I beg to move the government amendments.
My Lords, this amendment standing in my name seeks to create powers to ensure that seismic array systems are protected in areas where wind farms are proposed to be built, thus enabling the development of onshore wind where it will not have an adverse effect on seismic array systems. I thank the noble Earl, Lord Russell, who has a very deep knowledge of this subject and who kindly agreed to have a meeting with me even this morning on the topic, so I am grateful to him.
This amendment will enable regulations to be brought forward for the safeguarding of current Comprehensive Nuclear Test-Ban Treaty essential seismic arrays, notably the Eskdalemuir seismic array in southern Scotland. As a component of the international monitoring system for the Comprehensive Nuclear Test-Ban Treaty, signed by the United Kingdom in 1996, the array is critical for maintaining effective defence monitoring capabilities.
The amendment allows for regulations, subject to forthcoming consultation, to underpin more accurate measuring of the seismic impact of wind turbines, create clear zones within which seismic impacts must be taken into account, and set out how the Ministry of Defence would make these assessments. This would create certainty for planning authorities, the Ministry of Defence and developers, enabling appropriate proposals for wind farm development to be brought forward.
Enabling the development of onshore wind in the Eskdalemuir area will be a positive step towards the Clean Power 2030 mission and net-zero targets, with up to 3 gigawatts of onshore wind that could deliver by 2030. This 3 gigawatts could bring with it up to £2 billion of investment into UK-based onshore wind services. It could deliver up to £15 million per year to communities in the Eskdalemuir area through community benefit funds.
The amendment has been introduced at a late stage to allow for ongoing development of technical and policy work to identify a solution that effectively safeguards the array and enables onshore wind within the Eskdalemuir Working Group, a collaborative forum that has historically been led by the Scottish Government, to whom we are indebted, and has input from the UK Government, including the MoD.
The Bill represents the last available opportunity to secure the 3 gigawatt onshore wind capacity in time for 2030, and the economic benefits that it would bring. Not proceeding at this time and delaying further would impact deployment, reduce critical investor/developer confidence, and halt the momentum to resolve this issue. That being the case, I hope that the House will support this amendment.
Amendment 42, tabled by the noble Earl, Lord Russell, seeks to specify the maximum extent of zones within which onshore wind development may be totally restricted, and within which relevant regulations will apply. Such specificity at this stage risks pre-empting the government decision-making prior to the launch of a public consultation, which the Government committed to in the onshore wind taskforce strategy in July 2025. To do so could result in the most appropriate options for safeguarding seismic arrays and enabling onshore wind being discarded without proper consideration, as they would not be possible under the primary powers as amended. Safeguarding zones around MoD assets are constructed from specific criteria appropriate to individual assets.
The Government are seeking legislation to enable regulations that both protect seismic arrays and create certainty for onshore wind developers and planning authorities. If these zones are created through regulations, it will not be with the aim of blocking all onshore wind development, as is the case currently, but with the intention to safeguard seismic arrays and allow appropriate onshore wind development.
I hope that clarifies the approach we have taken, and that the noble Earl will withdraw his amendment. I beg to move the government amendment.
Amendment 42 (to Amendment 41)
I speak slightly in awe. I am not the world expert on seismic arrays, so I will keep my comments brief. This is the practical bit. We recognise that the Government are trying to create a balancing act between the safe and critical operation of seismic arrays and the opportunity of wind farms. From this side of the House, without the technical knowledge of the noble Earl, Lord Russell, can we receive an assurance from the Government that they have that balance right and that we will not compromise those seismic arrays and the potential national security and treaty obligations?
I hope that I can reassure the noble Lord that we are working very closely with our colleagues in the MoD on this issue and will endeavour to make sure that the balance is right in both cases.
My Lords, I will speak briefly. I cannot match the eloquence of other speakers, or the length of their speeches for that matter, but I want to support my noble friend Lady Hodgson’s Amendment 45. The reason I want to support it is that I want, as has just been said, some clarification about the Government’s position regarding the use of agricultural land for solar panels—and, I suppose, for battery storage plants, which are equally a concern to an awful lot of the public at present.
In Yorkshire, at the moment, we have a plethora of applications, all speculative, without apparently much resource behind them, and all hoping to get permission from local planning authorities, being just below the 50-megawatt limit that would require them to have more strategic consideration. There are so many of them at present that the planning officers are quite undermined in their work and unable to deal with them—but they will do. The problem we have is that, unless the Government are a little clearer on their view about the use or misuse of very good agricultural land, lots of these matters will proceed much against the wish of agricultural experts, farmers and local rural communities in particular.
I therefore urge the Minister to make it quite clear not just that the Government prefer that we do not utilise grades 1, 2, 3 and 3A agricultural land for solar panels, and that it should be used for agricultural purposes—preferably the production of food—but that this will not be allowed. They should tell planning officials that that is the view of the Government, because otherwise, simply preferring something is absolutely pointless.
The only other point I wish to add is that every single one of these speculative operators that seem to have come on the scene, certainly in Yorkshire and I believe elsewhere, try to placate local communities by saying that this will be only for 40 years—that in 40 years everything will be put back to its present state, or improved for that matter. I do not think I shall be here in 40 years, and I do not think most of the speculative companies will be. Without a proper bond in place, showing that they are worth the resources that they claim they are, this is a totally useless and pointless statement. The Government should point that out at all opportunities.
My Lords, I support my noble friend Lady Hodgson of Abinger and her Amendment 45, to which I tried to add my name but was too late. It was persuasively introduced by the noble Lord, Lord Hodgson of Astley Abbots, and I will try to be brief.
The essence of responsible political choice is to look to the long term. Good agricultural land is one resource that should be with us for ever. Development should not be allowed to prejudice the long-term interests of our nation. While I support Amendment 43, in the name of my noble friend Lord Fuller, which was well supported by his local knowledge, I prefer Amendment 45 because it would guarantee the protection of grade 1, grade 2 and grade 3A land against the substantial commercial pull of solar at prevailing returns in the energy and agriculture sectors.
Such protection would help to reverse the short-sighted change to planning guidance based on short-sighted thinking, to my view, by the Blair Government. Labour has never been a real friend of the farming community, despite its national importance, articulated so well by the noble Lord, Lord Cameron of Dillington, and the need to grow our own food. It would be wonderful to see a change of heart in the changed circumstances we see today, where food security is so important.
My view is that we should concentrate solar investment in urban areas and on urban rooftops—for example, on businesses and on supermarkets, which I promoted in my years at Tesco—especially in countries such as Hungary and Thailand, where the sun is hot and shines more brightly. I should perhaps end by saying that I have an interest as a part owner of two small fields, the remnants of a family farm long since sold.
My Lords, there are 3.3 billion barrels of oil easily available in the North Sea. An independent study by Westwood Global Energy Group for Offshore Energies UK suggests that up to 7.5 billion barrels could still be produced, while the Government’s own figures suggest about 3.2 billion barrels. The North Sea Transition Authority estimates that there are 6.1 billion barrels of oil of contingent resources and 4 billion barrels of oil in mapped leads and prospects—whatever those are—plus an additional 11.2 billion barrels in plays outside these mapped areas. There are billions and billions of gallons of oil that we could use, and we need. But we have a fanatical Secretary of State for Energy who is obsessed with the last bit of his title: the Minister for Net Zero. He is destroying the UK’s energy needs on our doorstep—or under our seabed, to be more precise. Energy should be our priority.
Without substantial new investment in domestic production, the UK is projected to import about 70% of its oil and gas needs by 2030, rising to over 80% by 2035. Even with a goal of net zero by 2050, the UK will still need between 13 billion and 15 billion barrels of oil and gas equivalent to meet its energy needs. Although demand for oil and gas will fall significantly, they are expected to meet a quarter of energy needs by 2050 to provide long-term power and support the energy transition, especially when paired with carbon capture technology. So a quarter of our energy needs will still come from oil and gas. We are sitting on billions of gallons of oil that we will not extract from our own country, and we will then import billions from abroad. How barking mad is that?
This fanatical energy department is not only destroying our oil and gas production systems but putting whole swathes of British industry out of action, making it uncompetitive by removing a cheap commodity that all our competitors use. There will never be Labour’s dream of growth while the Secretary of State is still in post—no wonder most of the Cabinet want him sacked. His obsession with net zero is also leading to the destruction of some of our finest countryside and the imposition of massive—
My Lords, I am grateful to my noble friend Lord Fuller for Amendment 43 and to my noble friend Lord Hodgson of Astley Abbotts for his loyal and able introduction of Amendment 45 in the name of my noble friend Lady Hodgson of Abinger. I declare my interest as a farmer, although not of as much best and most versatile land as I would like. To illustrate the point made by my noble friend Lord Fuller, I point out that solar currently offers risk-free returns roughly five times as great as farming land. From a farmer’s point of view, the incentives for doing this are very strong and it is up to the Government to regulate and protect the best and most versatile land.
I will not repeat the arguments that we have heard. They have been very well made and were made at earlier stages of this Bill, as well as on previous Bills, debates and Questions. I will briefly outline our position on these amendments.
We on these Benches are steadfast: food security is national security. Protecting our best and most versatile agricultural land is essential, and we will not apologise for standing up for our farmers and consumers. When the most productive agricultural land is lost to solar developments, our food supply is less secure when it need not be. Where solar developments are pursued, they should be developed on weaker land, not on our most productive farmland. My noble friend Lord Fuller indicated that 42% of UK agricultural land is best and most versatile, but there is also a great deal of unclassified land. So if it is far less than 42% of our landmass, why are we building these large-scale solar farms on it?
The noble Earl, Lord Russell, suggested that there was not a problem here, but since the last election we have seen a number of NSIPs brought forward that include a significant amount of best and most versatile land. It is not necessary to use this best and most versatile land; plenty of land is available that is weaker and could support the incomes of the farming community while providing the energy that we are looking for. Should my noble friend Lord Fuller wish to test the opinion of the House, we will support him. I look to noble Lords on the Benches to my left to join us in standing up for farmers and underpinning our commitment to food security. It will be very disappointing if they are unwilling to support this important amendment.
My Lords, I thank all noble Lords who have taken part in this debate. Before I respond, I send our best wishes to the noble Lord, Lord Alton, for a very speedy recovery. As the noble Lord, Lord Blencathra, said, his amazing contributions to our debates, particularly on human rights issues, are greatly missed and I hope he will be back with us as soon as possible.
The noble Lord, Lord Fuller, and the noble Baroness, Lady Hodgson—whom the noble Lord, Lord Hodgson, ably stood in for—have tabled amendments relating to solar generation on agricultural land. This was debated at great length in Committee. While I appreciate the very strong feelings on this issue, the Government’s approach to these propositions has not changed.
On the amendment from the noble Lord, Lord Fuller, it is important that every project is submitted to the planning process which befits its impact, scale and complexity. The Government believe that large solar farms, even when they propose to use higher-quality agricultural land, are best dealt with under the NSIP regime. The NSIP regime is rigorous. Local engagement remains at the heart of the process. Developers taking projects through the NSIP regime must undertake meaningful community engagement before any decision is taken. The level and quality of community engagement, among other factors, will be taken into account by decision-makers.
In Committee, the noble Lord appeared to suggest that the involvement of Ministers in the NSIP regime undermines public confidence in its ability to assess the costs and benefits of solar projects. I reassure him and your Lordships’ House that all ministerial planning decisions must be taken in strict accordance with planning policy and the Ministerial Code. This is in line with the policy governing decision-making by local planning authorities. As a result, as I explained on the last occasion when we debated this, we would not expect the planning outcomes to change.
As I argued previously, the Government are fully aware of the benefits of returning control, where suitable, to local authorities. At the end of the year, we shall double the NSIP threshold for solar, enabling projects of up to 100 megawatts to be decided locally. There is only one solar farm above 100 megawatts at the moment, and that was decided through an NSIP process.
Yes. Any marginal gain in public confidence from returning control to local authorities must be weighed against the likely costs of this proposal. First, giving responsibility for the complex and lengthy examination of NSIP-scale projects to local planning departments will increase the burden on resources that are already under pressure. Secondly, for proposals that are of strategic importance to the country, central government is the most appropriate decision-maker. Changing policy to give these decisions to local authorities may increase investor uncertainty at a pivotal moment. Lastly, accepting this amendment would imply that the NSIP regime is either not competent or not qualified to adjudicate on some issues. It may reduce confidence in NSIP decisions that have already been taken and in those that will be taken in the future.
On the amendment tabled by the noble Baroness, Lady Hodgson, introduced by the noble Lord, Lord Hodgson, the Government sympathise with her objective to protect fertile farmland from overdevelopment. In Committee, she mentioned how the war in Ukraine has brought into sharp relief the need to protect food security. This gets to the heart of the matter, for another lesson of the war in Ukraine is the strategic vulnerability of relying on volatile imported fossil fuels for our energy supply. We must find the right balance between food security and energy security. That is why food security and energy security are currently balanced in the planning system, which considers both these factors.
This amendment tilts the balance too far in one direction, so we must oppose it. It would prevent a significant portion of the solar development required to deliver energy security. Many fields contain land that varies in quality. It would not be proportionate to reject an otherwise beneficial project because a small portion of its total area was classified as “best and most versatile land”. This blunt instrument would jeopardise the Government’s plan to achieve clean power by 2030 and, in turn, our work to deliver lower bills in the long term, high-skilled jobs, and, yes, energy security.
The noble Lord, Lord Hodgson, mentioned the monitoring of solar farms. The Renewable Energy Planning Database lists all projects larger than 150 kilowatts, such as solar farms, including their precise locations. It covers projects at all stages of the planning process, from application to operation.
The noble Lord, Lord Cameron, referred to the land use framework and whether it is a material consideration in terms of the planning process. By law, planning applications are determined in accordance with the development plan for the area unless material considerations indicate otherwise; what constitutes a material consideration is for the local planning authority to determine, based on the circumstances of a particular case. The evidence base that underpinned the land use consultation and feedback on it will inform the Government’s wider strategic planning agenda.
I would like to make a few brief comments on what the noble Lord, Lord Blencathra, said about China—
The Minister talked about the monitoring procedures. Her remarks indicated they were going to be only when the projects were in their early stages. The worry is what happens maybe three, four or five years later, when the people who start owning it pass it on to someone who may be less attractive to the future of this country. Will the monitoring be a continuous process throughout the life of each project?
I believe I said—I hope I did—that all stages would be monitored, from application to operation. I hope that is reassuring to the noble Lord.
In relation to the comments made by the noble Lord, Lord Blencathra, on China—it is important to pick them up—the Government are committed to tackling the issue of Uyghur forced labour in supply chains, including the mining of polysilicon used in the manufacture of solar panels. We expect UK businesses and solar developers to do everything in their power to remove any instances of forced labour from their supply chains. The Procurement Act 2023, which came into force on 24 February, enables public sector contracting authorities to reject bids from and terminate contracts with suppliers that are known to use forced labour themselves or anywhere in their supply chain.
The Government are considering how to strengthen Section 54 of the Modern Slavery Act 2015, which places a requirement on businesses with a turnover of £36 million or more to publish an annual modern slavery statement, including possible penalties for non-compliance, as well as working with a wide range of stakeholders to update the Section 54 statutory guidance. I hope that gives the noble Lord some reassurance that we are taking this very seriously indeed.
From my time as the Minister in MHCLG with responsibility for net zero, I know that we have looked extensively at the UK supply chains and what might be done to further promote and help them to grow their businesses. All this being said, I agree with the sentiments of the noble Baroness that more should be done to install solar on rooftops. We are pursuing various measures in connection to this, as mentioned by the noble Earl, Lord Russell, from solar on schools and hospitals and our new building standards to tax breaks and our new £13.2 billion warm homes plan. We have recently conducted a call for evidence about solar car parks, which the noble Baroness praised in Committee.
It is important that we do not overstate the amount of agricultural land that might be occupied by solar infrastructure. I know the noble Lord, Lord Fuller, questioned the Government’s figures on land use. Without being drawn into that discussion, it is clear that a relatively small amount of land, 0.4% in the most ambitious scenarios, is due to have solar installed by 2030. This does not constitute a threat to food security or to British farming, which the Government will always champion. Rather, the primary threat to British agriculture comes from the damaging effects of climate change, and the noble Lord, Lord Fuller, already mentioned the impact on harvests this year. We have to take that into account as well. I, for one, think that Britain should do its part in the global effort to reduce greenhouse gas emissions. Building low-carbon power plants is an essential aspect of this.
I hope that the noble Lord and the noble Baroness will note the steps the Government have taken to return the decision-making of more solar projects to local authorities and the existing robust provisions for planning authorities to consider impacts on food production, and that the noble Lord might consider withdrawing his amendment.
My Lords, I thank the Minister for her winding. I do not intend to relitigate the debate we have just had; it is very late. It is almost as if the Government timetabled this debate after hours so the viewers at home could not see it. That is a shame, because the viewers would have seen for the first time the Lib Dems’ touching concern for the chilling effect on the investment prospects of the international investors for whom they wear their hearts on their sleeves.
We have reached a turning point in our nation’s story. We have a choice: will we stand up for those who put food in our bellies or is the Minister stuck in the middle of a fight between the Prime Minister on one hand, who says he believes in food security being national security, and an Energy Minister on the other who is impoverishing our nation, sacrificing thousands of British jobs on the altar of net zero while importing the jobs we used to make, but this time for more polluting factories overseas, which achieves nothing but to make us poorer?
We have a choice before us. It is not a binary choice of one or the other, as suggested by the noble Earl, Lord Russell. In our proposal, 58% of the national land would continue to be available. That is not binary; that is proportionate. Here is an opportunity for us all to get the balance right between energy security and food security by agreeing to my amendment. The counterfactual is that we condemn our countryside to an uncontrolled future, where our landscapes are impoverished and collateralised, passed around the global financial system like chips on a poker table.
To govern is to choose. Will this Government continue their war on the countryside or will they, even at this late hour, support our landscapes, the food producers and the rural economy? We should know. I would like to test the opinion of the House.