(4 days, 2 hours ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
With permission, I will make a statement about the local power plan and allocation round 7 solar and onshore wind auction results, both of which have been published today.
Britain’s drive for clean energy is about helping to answer the call for a different kind of economy that works for the many, not just the wealthy and powerful in our society. In the last few weeks, our warm homes plan has delivered the biggest public investment in upgrading homes in British history to cut bills for millions of people and to tackle fuel poverty. We have secured the largest offshore wind auction in European history, with a clean industry bonus to drive investment into our industrial communities, and we have agreed a fair work charter with business and trade unions as a first step to improving workers’ rights in renewables.
Today, I can report to the House the results of the AR7 auction for onshore wind and solar. In onshore wind, we secured 1.3 GW of power at a price of £72 per megawatt-hour. In solar, we secured nearly 5 GW at a price of £65 per megawatt-hour. I can inform the House that, together, this onshore wind and solar will provide enough power for the equivalent of more than 3 million homes, further reducing our dependence on international fossil fuel markets. It represents the largest solar and onshore wind auction in UK history.
I have had representations that we should have cancelled the auction and built new gas instead. I can tell the House that the price of this onshore wind and solar is less than half the price of building and operating new gas stations. Indeed, onshore wind and solar are by far the cheapest power sources available to build and operate, so I have rejected those representations. Instead, we have record-breaking results that will cut bills for families across Britain.
As we get off the rollercoaster of fossil fuel markets controlled by petrostates and dictators, we do not want this clean energy simply to be owned by big companies and multinationals. We want every community in this country to have the chance to own our energy future. We know that community ownership is a transformative tool to build the wealth and pride of local areas and give people a stake in the places in which they live. We already see this in pioneering community energy projects across Britain, and I pay tribute to them, including Lawrence Weston in Bristol, where England’s tallest onshore wind turbine, which I have visited, is 100% community-owned and generates tens of thousands of pounds a year to reinvest in the local community; the Geraint Thomas velodrome in Newport, which hosts nearly 2,000 solar panels and is one of the largest rooftop solar projects in Wales, cutting bills in Wales dramatically; and the Huntly Development Trust in Aberdeenshire, where community wind projects generate income that helps fund local charities.
We know that community energy not only spreads wealth and power, but contributes to the resilience of our energy system by generating and storing power closer to where people live, yet despite the individual success stories, Britain has never decisively seized the opportunities of community energy. Around half of wind capacity in Denmark is owned by its citizens, as is almost half of solar in Germany, yet in Britain currently less than 1% of our renewables are community owned. With our local power plan, we will change that.
Today, we announce the biggest public investment in community-owned energy in British history. During the previous Parliament, less than £60 million was spent on Government community energy schemes. Today, we set aside up to £1 billion of funding from Great British Energy to invest. This will offer grants to local authorities and community groups to support projects in their early stages, loans and project finance to support construction and operation, and funding to help communities buy a stake in larger renewable projects in their areas.
This funding will also be targeted at underserved areas of the country where it can make the biggest difference. Great British Energy estimates that this funding will support an initial 1,000 community and local energy projects, but this is just the start. Today, we send out the message to community groups, sports clubs, miners’ welfare institutes and village halls across the country that, in every community of Britain, we want to give people the chance to own their own energy, to transfer money from the pockets of energy companies to their community, and to generate income for the benefit of local people for decades to come. This is a Labour Government enabling every community of our country to own and build wealth for local people.
However, we know that making that happen is not just about providing capital funding, because communities need help to plan and develop their projects. So alongside this funding, Great British Energy will establish a one-stop shop to provide support and advice about local and community energy, with a team of expert advisers to help communities get their projects off the ground. This is Britain’s publicly owned energy company working hand in hand with our brilliant mayors, local authorities and community groups to turn the ambitions of local communities into reality.
Alongside the funding and support, we also know we must confront the reality that for years the rules of our energy system have held back the growth of community energy. Local and community schemes face hurdles that may be straightforward for large developers to overcome, but are too high for voluntary groups with limited time and resources. We are determined to break down these barriers, so we will also work with Ofgem to reform market codes and supply licences to help communities sell the power they generate, and we will ensure community energy projects benefit from our reforms to planning and the grid.
We also want to make it much easier for communities to take a stake in larger projects through shared ownership, building on examples such as the Isle of Skye co-operative in the Hebrides, which owns a share of a local onshore wind farm and has generated over £1.5 million for the local community. We think there is huge potential for many more projects like that, so we will consult on how we could use existing powers in the Infrastructure Act 2015 to mandate an offer of shared ownership. Those powers were passed more than a decade ago, but were never implemented. It would mean that, when companies built big projects, local people and communities would be offered a stake in them. As my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) has said, we need to move from a situation where communities can only aspire to be passive beneficiaries of projects owned by large companies to their being owners themselves with benefits in perpetuity. We are moving from community benefit to community share and community stake.
Taken together, this is the most comprehensive package of support to grow local and community energy that our country has ever seen. It builds on the Pride in Place programme, the community right to buy and our world-leading commitment to double the size of the co-operative sector. We know that the local power plan will be delivered not from Whitehall, but place by place and community by community. Today, I issue an invitation to local and community groups: if they come forward with proposals, we will support those groups to help make them happen. This statement is about a stake for the British people in our energy system, generating returns for local communities and local people, with power, wealth and opportunity in the hands of the many not the few, and I commend it to the House.
Greg Smith (Mid Buckinghamshire) (Con)
I thank the Secretary of State for prior sight of his statement.
It is becoming increasingly difficult to tell whether the Secretary of State is at the Dispatch Box as the Energy Secretary or rehearsing for a future move to perhaps No. 11. Once again, he is more distracted by personal ambition than concerned about the bleak reality families are facing across the country with crippling energy bills. Today’s announcement is being sold as a bold shift of power to local communities, but cutting through the fluff, this plan does not make electricity cheaper and it does not offer value for the taxpayer.
This plan does nothing to reduce wholesale prices, nothing to fix the grid connection backlog and nothing to tackle the structural costs. Instead, the Government are asking taxpayers to fund small-scale projects which, optimistically, will provide minor reductions in costs for a few local buildings while leaving families and businesses across this country still paying higher prices. There are no guarantees that the £1 billion committed through the Great British Energy scheme will deliver lower bills, no clear test of value for money and no convincing explanation of why subsidising small, piecemeal projects offers a better return for taxpayers than backing affordable, large-scale nuclear generation that would genuinely move the dial. Spread thinly across the country over several years and funnelled through yet another Whitehall-controlled body, this is not a serious intervention, but a press release masquerading as an energy strategy.
Alongside the local power plan, the results of allocation round 7 this morning raise serious questions that the Secretary of State has yet to answer. In the Government’s own press release, they rely on “internal analysis” to claim that additional solar and onshore wind procured through AR7 could lower bills in the early 2030s, but that analysis has not been published. It looks only at a narrow scenario, excludes wider system costs and does not give a full picture of future bill levels. If Ministers are so confident of their figures, why will they not release the full impact assessment? What exactly is the Secretary of State hiding?
AR7 also underlines the direction of travel under this Government: longer contracts, higher strike prices and greater risk locked in for bill payers. The extension of contracts for difference from 15 years to 20 years means that households will be tied into paying these costs for even longer, regardless of whether circumstances change. At the same time, the Government have relaxed planning requirements so some offshore wind projects can bid before planning consent has even been secured.
All of this points to the root problem, which is that electricity prices are already too high, and the policies pursued by this Government are only pushing them higher. Doubling down on carbon taxes and loading more expensive wind and solar on to a system that is not ready risks driving up costs for both households and industry, making British business less competitive and leaving families to pick up the bill. Families are being asked to pay more, not less. Labour promised to cut energy bills by £300; instead, bills have risen by £190 since Labour came to power. That is the reality behind its rhetoric, and that is the reality every family up and down the land understands as they open their energy bills.
At the centre of all this sits Great British Energy, an £8 billion taxpayer-funded quango that was meant to lower bills for everyone. So far, all we have is the promise of a highly paid chief executive, a new board and more bureaucracy. Why do we need another expensive state body to do what the market and existing institutions should already be delivering? That is the fundamental difference in approach. Our cheap power plan focuses on bringing down the underlying cost of electricity, saving the public sector and everyone else vastly more in the process, and doing so without costing taxpayers a penny. This Government are more focused on their own internal politics than on delivering the one thing people need: energy that is reliable, abundant and, above all, affordable for all our constituents.
Ed Miliband
Well, there were no questions, but I will reply none the less. Let me start with the AR7 auction, because this is very interesting and it will give the House a picture of what has actually changed. What has changed is the Conservative party, not the reality. We had the AR5 auction a couple of years ago, when the Conservatives were in power. In that auction, the price of solar was higher than it was in this auction. The then Secretary of State, the right hon. Member for East Surrey (Claire Coutinho) stated:
“our reliance on gas for electricity production today risks making power prices higher than they would be in a system with a greater share of generation from wind and solar…Moving to home-based, clean power mitigates risks to billpayers—now and in the future.”
What has changed? What has changed is that the Conservative party has gone full MAGA. Let us just be honest about this. It has decided to chase Reform into a ludicrous position, doubling down on fossil fuels and rejecting even solar and onshore wind, the cheapest, cleanest form of power you can possibly have. I guess the hon. Member for Mid Buckinghamshire (Greg Smith) was just reading out the script.
On community energy, I have to congratulate the hon. Gentleman, because he has given a brilliant example of why the previous Government were so hopeless on community energy. He obviously thinks it is a terrible idea. He is very welcome to do so, but he is sending a message to every Member of Parliament and all their constituents that the Conservative party is against community energy projects and against the things that will cut bills for local community groups. To every sports club, community centre and library that will benefit from this funding, there is a very clear answer: the Conservative party says, “No, you don’t deserve it. We don’t want you to have those lower bills. We don’t want you to have that cheap clean power. We don’t want you to have the income and resources to reinvest in our local community.” If the Conservatives want that as a dividing line, bring it on, I say. This Government are on the side of local communities, on the side of cutting bills and on the side of reinvesting money into communities. The Conservative party, in its new incarnation, is against it.
Madam Deputy Speaker (Caroline Nokes)
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
Select Committees look at the evidence. The evidence we have heard is that community energy is a great way of bringing down bills and giving people the confidence to take part in the energy transition. The Secretary of State talked about solar in his statement. We heard that golf courses use 10 times as much land as solar farms. Even if the Committee on Climate Change recommendations are adopted, twice as much land will still be used for golf courses. The Country Land and Business Association told us that concerns about land use are a myth: that the planning system protects the best and most versatile land for crop production, and that the roll-out of solar should be encouraged as a way of diversifying for farmers, delivering cheap electricity for both neighbouring businesses and domestic use. Will the Secretary of State say how he intends to ensure as many people as possible in rural areas understand the benefits of community energy and solar more widely? Will he ensure that those myths are finally busted?
Ed Miliband
My hon. Friend did a very good job of busting those myths in his question and he is absolutely right. The truth is that you cannot, at one and the same time, complain about bills being too high and then reject the cheapest cleanest form of power, but I am afraid that that is the position of the Conservative party. There is no hiding the fact. Nobody can disagree—you can disagree about other things—that solar is the cheapest form of power, but the Conservatives are against it.
My hon. Friend makes a really important point about community energy. Let us be honest, we are in the foothills of what we need to achieve as a country. Germany and Denmark are miles ahead of us. This is about a different conception of energy and who owns it: not just big multinational companies, not just the big companies that the Conservatives seem to want to just leave it all to. We want local people to be able to have a stake in the system. That is what this plan is about.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
The Liberal Democrats welcome the Government recognising what communities across the country have been saying for years: community energy is one of the most powerful ways to cut bills, rebuild trust in the energy system, rebuild local resilience and take people with us on the journey to net zero. We campaigned hard to see community energy written into the Great British Energy Act 2025, alongside many people—although not everybody here today it seems—in this House and the other place, and alongside community groups such as the South Cambridgeshire Climate and Nature Group and other community organisations across the country.
We believe in localism, empowerment and giving communities a real stake and ownership in our clean energy future. I thank the Minister for working with us to make sure that we did get that into the 2025 Act. As we rightly move away from volatile fossil fuel costs controlled by foreign powers, we must ensure that our new clean energy system puts communities first. It must mean giving people the power to generate, own, and, crucially, sell their own clean energy locally, with profits reinvested in the places where the energy is produced.
We welcome the local power plan in principle, but the devil is in the detail. First, what happened to the Government’s pledge of £3.3 billion for community-owned energy, when today we are hearing about £1 billion of investment? We do not want to follow the Conservative Government’s retreat from ambition on local clean power. It is not the time to scale back ambition.
Secondly, on the crucial issue of local empowerment, regulation is needed. Organisations such as Power for People constantly told us that there are, as the Secretary of State said, barriers to access fair local markets. They welcome this plan, too, echoing the Minister’s promise that the Government will establish local energy supply models. The local power plan—I have looked through it very quickly—talks about the regulatory changes necessary, but when will they come through? The energy transition has to happen not to communities, but with them—
Ed Miliband
I thank the hon. Lady—I say this genuinely—for her advocacy on this issue ever since we came into government and before. She is a powerful advocate for community energy. I congratulate the group in South Cambridgeshire, too. Let me deal with the points she raised.
On investment, I think that in anyone’s view the scale of the investment we are making is very significant. As I said, it is £1 billion, compared with £60 million in the previous Parliament under the previous Government. This is a massive scaling up and a realist assessment of what can be spent over this Parliament, but obviously this is just the start of our ambitions.
The hon. Lady made a point, I think, on working with local community groups, which is very important. She will know that one of the challenges local groups face is in getting to the stage of having a project that is ready to go. Part of this issue is about working with those groups to make sure that can happen.
On Ofgem and some of the regulatory changes, absolutely we are going to work as quickly as we can to unblock some of the barriers and ensure that can happen as swiftly as possible.
Mike Reader (Northampton South) (Lab)
Northampton is one of the towns across the UK that will benefit from the local power plan. Does the Secretary of State agree that my schools, colleges and universities, the four hospitals in my constituency, and my sports clubs, including the Cobblers—one of the greenest football clubs in the country—will benefit from the plan, and that the wealth generated by local power will be kept in our community?
Ed Miliband
I congratulate the Cobblers and all the organisations in my hon. Friend’s constituency. He is absolutely right. We think there are huge benefits across the country. GB Energy is, I think, now opening its website so that different groups can register an interest and work with it.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
National Grid is one of the large, national, private companies run by the wealthy and powerful in society that the Secretary of State derided in his statement. It is seeking to build, on the edge of an area of scientific interest and a nature reserve, a 90-foot high converter station covering the size of five football pitches. Local people, whom the Secretary of State claims to champion, do not want this. Will the Secretary of State champion the local people and consign this project to the dustbin of history where it belongs?
Ed Miliband
The right hon. Gentleman will know that there is a planning process for all projects. I would gently point out to him—not specifically on his project, because I want to make a more general point—that if we are going to get the benefits of cheap, clean power, we need to build the transmission infrastructure. The biggest threat to the countryside is the climate crisis; it is the single biggest threat to biodiversity and nature. I am sure the right hon. Gentleman feels strongly about the specific issue he talked about, as do his constituents, but I do believe it is right to build the transmission infrastructure we need in order to lower bills for people and tackle the climate crisis.
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
I thank the Secretary of State for his announcement of the £1 billion in funding for community energy projects under Labour’s local power plan. Will he outline the benefits of community energy for constituencies like mine and set out how local communities can get involved and ensure that any profits are reinvested locally?
Ed Miliband
I thank my hon. Friend for that question. Briefly, there are three important aspects to this: first, communities can have lower bills for their community centres and local institutions; secondly, they can generate a stream of income by selling power back to the grid; thirdly, there is something wider, and perhaps more intangible, which is the matter of giving local communities a sense of stake in the system. I think this is really important, because one of the ways that we gain consent from people is through the sense that it is not simply the big multinationals that will own our energy system, but local people themselves.
Wera Hobhouse (Bath) (LD)
I welcome the publication of the local power plan and I honestly recognise the Government’s commitment to community energy. However, I think there is still a piece missing—namely that properties in the vicinity of a community energy generator can ultimately benefit by being directly supplied, rather than being supplied through a third party. Will the Secretary of State look again at how community energy is defined and include households benefiting from the energy generated within that community? We have been struggling with the definition of community energy on the Select Committee. I think it is important that households can benefit from the energy generated within the community.
Ed Miliband
I thank the hon. Lady for her advocacy on this issue. My hon. Friend the Minister for Energy, who is the world expert on these questions—or at least the UK expert; I will not push it too far—assures me that her important question about the statutory definition, which is, I think, on code P441, is being answered in the plan.
Joe Morris (Hexham) (Lab)
I thank the Secretary of State for his announcement. Community energy is incredibly powerful in rural Britain, particularly in the village of Humshaugh, where Humshaugh Net Zero set up the community-owned solar farm. I restate my invitation to the Secretary of State to join me on a visit to Humshaugh community solar farm, and thank him once again for the statement.
Ed Miliband
I will take up my hon. Friend on his kind offer. I think we will see a powerful example there of community energy in practice, and what is so exciting about today’s announcement is that we can now reproduce that right across the country.
Sir Julian Lewis (New Forest East) (Con)
Does the Secretary of State agree that the Mandelson scandal illustrates the reputational risk and damage that can be done by ignoring aspects of criminal exploitation? Does he know whether there is a difference in the cost of solar panels that are imported from China compared with other possible sources? What sort of safeguards do the Government have to ensure that we are not encouraging people to put on their roofs the products of criminal activity and forced labour exploitation?
Ed Miliband
The right hon. Gentleman and I have had exchanges on this matter before. It is a serious issue, and he is absolutely within his rights to raise it. I would just say two things to him: first, following the Great British Energy Act 2025, GB Energy has pledged to be a leader in this area and has appointed an adviser to work on these issues; secondly, he will know that the industry committed to the solar stewardship initiative as part of the solar road map, which is precisely about having independent monitoring of where solar panels come from. I take this issue seriously and I take his advocacy on it seriously, too. It is a work in progress, but it is really important that we get it right.
Olivia Blake (Sheffield Hallam) (Lab)
The shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), would do well to remember the measly £60 million that the previous Government spent on community projects, and the fact that they were opposed to GB Energy, whereas today’s plan clearly sets out the £1 billion for community projects coming through GB Energy. Community energy can deliver cheaper power, local jobs and, importantly, public support for clean energy and net zero. Will the Secretary of State set out how Great British Energy will remove barriers to community ownership, so that communities can directly share in the benefits of net zero?
Ed Miliband
My hon. Friend speaks with great eloquence on these issues. I am very interested in the power, introduced under the Infrastructure Act 2015, to give local community groups the right to buy a share of large-scale projects. That power has never been triggered—I think it may have been the fruit of the coalition negotiations—but we are very interested in making that power a reality. That is just one of the ways that we can break down the barriers that my hon. Friend talks about.
Sir Julian Smith (Skipton and Ripon) (Con)
The Secretary of State will be aware that small businesses across the UK are really struggling with energy costs, particularly in communities in rural areas like North Yorkshire. What can small businesses get from this plan to lower their costs as quickly as possible? What role will the plan play in that?
Ed Miliband
This plan is mainly about community groups and non-profit organisations, but the right hon. Gentleman raises a serious issue. It is something that we are talking to the National Wealth Fund and others about, because it emphasises the fact that there is low-hanging fruit here. If we can make it possible for small businesses and others to make these investments, there are ways that they can lower their bills. We might as well use the free resources that are available, such as the free resource of the sun. Obviously, the cost of solar panels has come down a long way. That is something for me to take away and work on.
Clive Efford (Eltham and Chislehurst) (Lab)
I am really excited by this announcement, because I am the chair of trustees of the Samuel Montagu youth club in my constituency, which has a roof that would benefit enormously from solar panels, which could generate income and make us more sustainable at a time when local government funding is drying up. We also have 13 acres of land, and I have always thought that we had the potential for ground source heating; if we could get some money to invest in that, we could provide energy to buildings around us as well. Does my right hon. Friend agree that when we delve into this issue, the scope is boundless? There are many projects that we could look into.
Ed Miliband
The two ideas that my hon. Friend puts forward sound absolutely ideal for this fund to me, but as for the eventual outcome, I must not put my thumb on the scale too much. He is right about this. We are starting something that will grow bigger and bigger over time. This is partly about raising our eyes and thinking, “Well, if it works in Germany and Denmark, why shouldn’t it work here? Why shouldn’t local people get the benefits of this?”. It represents a big, transformative shift in our thinking about what is possible.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
The SNP has been very committed to community energy projects for a long time; indeed, we have invested more than the previous Government in community energy projects—over £67 million in nearly 1,000 projects. This announcement on community and renewable energy, while belated, is welcome. When the Secretary of State talks about community energy, does he include in that community heat projects that can be combined with community energy projects? A turbine with a community heat network, for example, can drive a huge amount of benefit to the local community.
Ed Miliband
Yes is the answer to that question. Community energy includes all kinds of innovative projects. As we open these funds for bidding—both from local authorities and community groups—we will find local people coming forward with innovative, imaginative ideas for how to drive this scheme forward. I suspect that we will be overwhelmed with the imaginative innovation that we see, and that is what is so exciting about this.
Terry Jermy (South West Norfolk) (Lab)
It is quite clear that communities that host energy projects should in some way benefit from them. I welcome that principle being incorporated into this plan. I particularly welcome the Government’s support for rooftop solar for Swaffham community hospital in South West Norfolk, not just from an environmental point of view, but as a way of reducing the energy cost of public services; that saving can be reinvested in the frontline. Will my right hon. Friend commit to tracking the financial benefit of these proposals, so that we know the true benefit for communities up and down the country?
Ed Miliband
My hon. Friend makes an important point. As a super nerd, I am very interested in that kind of impact analysis. Sometimes Governments do things but do not track their impact, so they cannot prove the difference that a scheme has made. His point is very important, as is the one about Swaffham hospital. The work that GB Energy is already doing on schools and hospitals is making a difference to public services up and down the country.
Ben Obese-Jecty (Huntingdon) (Con)
The Secretary of State talked about British people having a stake in our energy system, and generating returns for local communities and people. He then went on to say that he was on the side of local communities. I appreciate that he was talking about auction round 7, not nationally significant infrastructure projects, but in my constituency, we have the East Park Energy solar farm proposal. At 1,900 acres, it would have a huge impact on local communities. Residents of Great Staughton and Hail Weston in my constituency are massively opposed to the development. What would he say to my constituents, who feel that he is not on the side of local communities, given that the decision on this project falls squarely to the Secretary of State?
Ed Miliband
I will not go into the details of a planning decision, but areas that host energy infrastructure should see community benefits. What I say to his constituents and others is that there should always be community benefits, but if we want to bring down bills, and if we want energy security, we must build the energy infrastructure that we need. Solar is a really important part of that, because it is the cheapest, cleanest form of power. I am sure that some of his constituents will not like the proposal, but sometimes we have to stand up and say, “We think this is the right thing to do for cheap, clean power.”
Catherine Fookes (Monmouthshire) (Lab)
I thank the Secretary of State for announcing a big investment in local energy. He mentioned the fantastic example of the Geraint Thomas national velodrome in Newport, in my neighbouring constituency, with its 2,000 solar panels. This shows the value of community energy projects, which will cut bills, tackle climate change and literally give power to those local people on bikes going around the velodrome. I am delighted that the Welsh and UK Governments have an exciting vision for community energy, and that the Welsh Government created Ynni Cymru in 2023. What can the Secretary of State tell me about the investment in further local energy plans in Wales, and in my constituency of Monmouthshire?
Ed Miliband
I congratulate the Welsh Government on their important initiatives in this area; they are great leaders in it. I was whispering to the Minister for Energy about whether he and I should be cycling in the Geraint Thomas national velodrome, but he thought that was probably a bad idea. From the look on her face, I see that Madam Deputy Speaker seems to agree. I really hope that the constituents of my hon. Friend the Member for Monmouthshire (Catherine Fookes) benefit from this initiative. They will be able to see, from the velodrome, the benefit that there could be for them. We look forward to working with the Welsh Government on super-charging the benefits of this plan.
Mr Tom Morrison (Cheadle) (LD)
Too often, my constituents, like many in the north of England, have seen such Government schemes ploughing money disproportionately into the south of England. In fact, Government figures show that total investment per job is about £13,000 in London, compared with £9,000 in the north-west. How will the Secretary of State ensure that such regional inequalities are not reinforced by decisions on where projects are funded?
Ed Miliband
As a South Yorkshire MP, I completely agree with the hon. Member on these matters. He makes a really important point, and he has put it on the record. I am sure that GB Energy will be very conscious of the need to ensure a fair balance across the country, when it comes to the allocation of these resources.
Adam Thompson (Erewash) (Lab)
I thank the Secretary of State for explaining very clearly why the local power plan represents the biggest investment in community energy ever. It will help create jobs, develop skills and generate growth. Those are clearly the ambitions behind the redevelopment of New Stanton Park in my constituency. It is creating thousands of jobs and apprenticeships, and is returning industry to Ilkeston. Will the Secretary of State outline how the local power plan, alongside Mayor Claire Ward’s mayoral renewables fund, will support developments such as the New Stanton Park by lowering energy costs, attracting investment and expanding gold-standard apprenticeships?
Ed Miliband
Another really exciting part of this plan is working with local mayors, such as the excellent Claire Ward. There is a real chance here for mayoral vision to combine with the national Government’s vision, and local people’s vision of how they can transform communities and generate resources. I am very happy to endorse the sentiments of my hon. Friend, and I really look forward to working with him and Claire on this plan.
Ann Davies (Caerfyrddin) (PC)
Community energy has an important role to play in Wales. It powers around 17,500 homes, many of which are in my constituency of Caerfyrddin, with Ynni Sir Gâr leading the way. I welcome the local power plan and its funding envelope of £1 billion, and hope that we can rapidly expand on that number. Will the Secretary of State tell me more about how this funding will be fairly distributed across the UK? Will he introduce a ringfence to ensure that Wales and the other devolved nations, Scotland and Northern Ireland, receive, at minimum, their population share?
Ed Miliband
The hon. Lady asks an important question. We will work with the Welsh publicly owned energy company to make sure that Wales benefits from this plan. I made that point about a fair balance of funding across the country to the hon. Member for Cheadle (Mr Morrison), and I think it is very important. I think we will find that this programme will be highly oversubscribed—that is my prediction—because there is such an appetite for this plan and its potential. I hear that in the House. One thing that we will definitely be doing is working with the Welsh Government.
Alice Macdonald (Norwich North) (Lab/Co-op)
I welcome the local power plan, which builds on much clean energy investment in Norfolk, including backing for the Vanguard wind project and £17 million for warm homes in Norwich. I urge the Government to keep backing the east of England as a hub for clean energy. Will the Secretary of State outline in a bit more detail how constituents will be made aware of this project, particularly those who will not hear this statement, or hear about it on the radio, so that the communities that would benefit the most are able to maximise the benefits of this funding?
Ed Miliband
My hon. Friend makes a really important point. Local Members of Parliament have a massive role to play in, for example, approaching their local community groups and others who have the potential to benefit from the plan. I encourage all Members to do that. One of the most important things about Members of Parliament from all parts of the House is that so many of them have a sense of the groups and areas in their constituency that can benefit from the plan. My hon. Friend the Minister for Energy and I will provide resources for MPs across the House, so that they not only know about the plan, but can draw it to the attention of people and community groups in their constituency, so that they can benefit from it.
Clive Jones (Wokingham) (LD)
I thank the Secretary of State for his statement. My Liberal Democrat colleagues and I have long campaigned for community energy, but it is not enough to have a plan to deliver local power projects in the future, when there are projects around the country ready to go now, but sadly not supported by the national grid. In Wokingham, the Barkham solar farm is ready to go, but the National Grid is not yet ready to hook it up to the grid. It has delayed doing that for far too long, and it recently came up with a reason for another long delay. What is the Minister doing to fix this failure and get the Barkham solar farm hooked up to the grid for the benefit of our local community?
Ed Miliband
The hon. Gentleman makes an important point. We have carried out a big overhaul of the grid connections queue, which, as he knows, was sort of like the wild west. There was a chaotic “first come, first served” queuing system. The National Energy System Operator has done a big reordering of the queue, but we still have to put pressure on the transmission operators, to make sure that they deliver. I encourage him to write to my hon. Friend the Minister for Energy about the project, and we will take that up with the National Grid.
John Whitby (Derbyshire Dales) (Lab)
I have spoken to groups across my constituency such as Transition Crich and Derbyshire Dales Community Energy, which are working to create new community-owned energy projects in order to cut bills and drive down emissions. The £1 billion announced today will significantly help with their aims. However, these groups will grow faster if they are able to sell their energy directly to households in their communities. Could the Secretary of State therefore update us on what plans he has to implement local supply rights for community energy schemes?
Ed Miliband
We are right into the nerdery here—and it is really important nerdery. My hon. Friend makes an essential point about the ability to sell this power back into the grid. I assure him that we are working on this with Ofgem to improve the offer to local community groups, because it is an essential part of ensuring that economic value goes to groups, including those in his constituency.
Paul Waugh (Rochdale) (Lab/Co-op)
Rochdale is the birthplace of the co-operative movement, so we know what happens when local people come together to take back control when there has been a clear market failure. That is one of the many reasons I am proud to be the Labour and Co-operative party MP for Rochdale.
The Secretary of State rightly talked about the shift from community benefit, which is crumbs from the table for the big energy companies, to community ownership, and how this shift can sustainably lower bills for community groups and community buildings. Does he agree that the local power plan is all about power to the people—not just in the sense of clean energy, but communities having the power to determine their own bills and future?
Ed Miliband
Power to the people, indeed—it is a great slogan. I really do share my hon. Friend’s sentiments, both about the co-operative movement and Rochdale’s pioneering place in the movement, which is so important in our country, and about the shift in thinking about ownership that this plan represents. We want to move from the idea that this always has to be done by the big multinational companies, which are privately owned, to a different way of thinking. Yes, those bigger companies will continue to play a role, but why shouldn’t local people be able to come together and own their own energy? That whole principle was founded in Rochdale, and this plan will help the doubling of the co-operative movement that this Government are committed to.
Jonathan Davies (Mid Derbyshire) (Lab)
I thank the Secretary of State for his statement, the publication of the local power plan and the £1 billion investment that will support community groups to provide green, sustainable energy and help their financial sustainability. We have considerable expertise in Derbyshire when it comes to using water to create power. In fact, the mills that were built on the Derwent valley over 200 years ago were among the first to harness that opportunity, and now we have a number of hydro projects on that stretch of water. Can I encourage the Secretary of State to come to Derbyshire to see some of those projects and look at where we could add more? If he wants help from local people who have expertise in this space, I am more than happy to put him in touch with them.
Ed Miliband
I thank my hon. Friend for his invitation, and I look forward to doing that. He makes the important point that we can look back at our history, as my hon. Friend the Member for Rochdale (Paul Waugh) also pointed out, and draw inspiration from some of the pioneers who had a vision that is not the same as today’s but that has similar principles. I congratulate his constituents who are working on these issues and look forward to meeting them.
Madam Deputy Speaker (Caroline Nokes)
I thank the Secretary of State for making his statement—and for not doing so in Lycra.