Oral Answers to Questions
Andrew Bowie Excerpts(7 months ago)
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Tommy Sheppard (Edinburgh East) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The evaluation of our energy support schemes will conclude in summer 2025. To ensure their bills were fair, supported heat network customers received an average of £1,200 via the energy discount scheme, which closed last month.
Tommy Sheppard
That is rather disappointing. I have more than 100 constituents in the Greendykes area of Edinburgh who get their heating and hot water from a communal district heating scheme. The Government have refused to offer them price protection, saying instead that this should be regulated by the business regulation scheme, but that ended on 31 March, leaving those people with no protection at all and facing increases of up to 500% in their energy bills. My constituents want to know: why did the Government wait until the business scheme finished before considering alternative protection for these domestic customers? Why take a year to get them protected and what compensation are the Government going to offer in the meantime?
Andrew Bowie
I hear the passion with which the hon. Gentleman stands up for his constituents, and rightly so, given the circumstances that they find themselves in. We are introducing regulations with Ofgem powers to investigate and intervene where prices for consumers appear to be unfair, and to ensure that all heat network consumers receive a high-quality service from their providers. I am happy to meet him to discuss this in greater detail.
Richard Fuller (North East Bedfordshire) (Con)
District heating networks are a good innovation and the Government have a good record of stimulating these projects around the country, but the hon. Member for Edinburgh East (Tommy Sheppard) is right to say that the regulation in this area needs looking at. Can I reassert what he has just said and ask the Minister to carefully come forward with protections to ensure that consumers on shared heating networks are not at a disadvantage compared with people who pay their bills directly?
Andrew Bowie
I am pleased to give that assurance to my hon. Friend. As I have said, we are talking to Ofgem right now about introducing regulations to make this much fairer and simpler and to ensure that consumers on heat networks get the service that they deserve.
Michael Shanks (Rutherglen and Hamilton West) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The planning decision is devolved to the Scottish Government. Officials will work together to resolve cross-border matters. The UK Government are committed to effective co-operation with the Scottish Government on this and other issues, supporting our shared energy security and net zero objectives.
Michael Shanks
I thank the Minister for his answer and for the promise that officials will work together, but he will be aware that this is a 4.1 GW renewables project that could be the largest offshore wind farm in the world, delivering over £8 billion to the UK economy. The only reason that it is not eligible for this year’s contract for difference auction is the Scottish Government’s failure to make a decision on consent for the project. Has the Minister or anyone in his Department spoken to Scottish Ministers about the impact of this decision on investment in our economy, and to ensure that the consenting for offshore wind process is sped up so that we do not miss out on the tens of billions of investment and the thousands of jobs that a project such as this would deliver?
Andrew Bowie
The UK Government work closely and collaboratively with the Scottish Government on a whole host of areas, especially energy security and net zero. However, this is a live planning issue, and whether it is in the jurisdiction of Westminster or Holyrood, we do not comment on live planning cases given their quasi-judicial status.
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The civil nuclear road map reconfirmed the Government’s ambition to deploy up to 24 GW of nuclear power by 2050. The road map sets out plans to make investment decisions concerning 3 GW to 7 GW every five years between 2030 and 2044.
Bob Blackman
Clearly it is important to have a mixed economy in terms of energy production, and nuclear has to play its part. What action is my hon. Friend taking to ensure that the development of small modular nuclear reactors is enhanced and brought forward, because that is the fastest way to get nuclear energy into our network?
Andrew Bowie
I completely agree with my hon. Friend. The small modular reactor technology selection process—the fastest of its kind in the world, I might add—continues to progress quickly and is currently in the tender phase, allowing vendors to bid for potentially multibillion-pound technology development contracts. Companies will have until June to submit their tender responses, at which point Great British Energy will evaluate bids and negotiate final contracts. The aim is to announce successful bids later this year.
Jim Shannon (Strangford) (DUP)
The Minister is always quick and keen to ensure that all parts of this great United Kingdom of Great Britain and Northern Ireland have advantages. When it comes to the technology to which the question refers, when will Northern Ireland get the same advantage?
Andrew Bowie
As the hon. Gentleman knows, I am keen to ensure that every part of our great United Kingdom of Great Britain and Northern Ireland benefits from the expansion of nuclear power and the benefits that it can bring, not only for meeting our net zero objectives but for the economies in which these small modular reactors will be built. I would be happy to meet him at any time to explore what benefits can be accrued in Northern Ireland from the expansion of our nuclear capacity here in the UK.
Nadia Whittome (Nottingham East) (Lab)
Rachel Maclean (Redditch) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
My hon. Friend is absolutely right that we need to protect the best and most versatile agricultural land in this country. Unlike the Opposition, we respect the views of communities up and down this country, and we will not countenance the industrialisation of our countryside. However, solar power remains very important. We are committed to our 70 GW target. In our forthcoming solar road map, we will set out exactly how we will incentivise the development of rooftop solar, and development on brownfield and other sites.
Tonia Antoniazzi (Gower) (Lab)
Mark Eastwood (Dewsbury) (Con)
Andrew Bowie
As my hon. Friend has heard me say already today, solar power is important, and we remain committed to our 70 GW target. However, food security is as important as energy security when it comes to national security. That is why we are protecting the best and most versatile farmland in the United Kingdom. Unlike the Opposition, we respect the views of communities up and down the country; we will ensure that our countryside is not industrialised, and incentivise companies, individuals and organisations to invest in rooftop solar, and solar on brownfield, not greenfield, sites.
Dan Carden (Liverpool, Walton) (Lab)
Alexander Stafford (Rother Valley) (Con)
Hydrogen is the only viable alternative to natural gas for a balanced, reactive and carbon-zero electricity grid. The UK has 32 gas power plants, all of which could be cheaply and easily retrofitted to burn hydrogen as a natural gas. What is the Department doing to encourage this sort of retrofitting, so that we can allow technologies to decarbonise electricity generation and take advantage of the many benefits of hydrogen?
Andrew Bowie
I thank my hon. Friend for that rather surprising question on hydrogen. The Government recognise the value of hydrogen in supporting a decarbonised and secure power system. We intend to publish soon our response to the December 2023 hydrogen-to-power market intervention consultation, and we will soon legislate for decarbonisation readiness requirements, so that new-build or substantially refurbished combustion power plants are built net zero ready.
Marion Fellows (Motherwell and Wishaw) (SNP)
In the last 12 months, one in five households, or one in four young households, in energy debt have turned to illegal money lenders to help pay for bills and everyday essentials. The End Fuel Poverty Coalition has stated that the crisis could mean that young households spend years at the mercy of these loan sharks. What assessment has the Minister made of the merits of working with Ofgem and energy suppliers in order to introduce support to alleviate this record-high energy debt?
Sir Jeremy Wright (Kenilworth and Southam) (Con)
Like others, I welcome what the Government have already done to extend the permitted development rights for rooftop solar and car park canopies, but may I encourage my hon. Friend to tell others in Government who have responsibility for planning that there are considerable benefits to car park canopies, particularly in hotter summers?
Andrew Bowie
I thank my right hon. and learned Friend for his question. I urge him to bide his time and have patience, because in the next few weeks we will publish our solar road map, which will expand on exactly how we will work with other Government Departments, and indeed industry, to ensure that we benefit from the huge advantages that we have in the number of rooftops available for the deployment of solar capacity across the UK.
Mr Gregory Campbell (East Londonderry) (DUP)
There has indeed been a significant increase in domestic insulation schemes in recent years. However, will the Minister agree to increase the number of conversations with devolved institutions, so that we can see a genuinely nationwide revival of insulation schemes that, individually, can do more to reduce the dependency on high energy costs for those at maximum risk, in social housing and elsewhere?
Cherilyn Mackrory (Truro and Falmouth) (Con)
Given the floating offshore wind manufacturing investment scheme funding recently awarded to Wales, can the Minister please advise me on when A&P Falmouth, which is to be a vital part of the supply chain for the only successful project in allocation round 4, will be put on the reserve list? The Minister has promised to meet me on several occasions. Can I ask that we expedite that much as possible?
Andrew Bowie
I would be delighted to meet my hon. Friend to discuss this matter. Indeed, I am determined to ensure that ports that were not successful in the FLOWMIS process can take advantage of the huge increase that we expect in the deployment of floating offshore wind capacity off the coast of the United Kingdom. I am happy to meet my hon. Friend and, indeed, any other Member of Parliament who represents a port that was not successful through the FLOWMIS procedure to discuss how we can move this forward.
Wera Hobhouse (Bath) (LD)
Community energy can deliver so many renewable energy products and save on energy bills. Last year in Bath, a community energy project putting rooftop solar on schools saved schools £130,000. When will the Government remove the barriers to community energy?
Andrew Bowie
As a result of the Energy Act 2023, we launched a consultation and a multimillion-pound fund to help to support the expansion of community energy across the United Kingdom. It would be great to have the Liberal Democrats’ support in the effort that this party and this Government are making to ensure that the benefits of community energy are felt up and down the length and breadth of the country.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
As we go to net zero, surely we also need to retain our sense of human rights. Polysilicon mostly comes from Xinjiang, where it is mined using slave labour. To what extend are we prepared to say that net zero trumps slave labour, and are we checking on slave labour products in the arrays?
Andrew Bowie
I can assure my right hon. Friend that we are indeed ensuring that the extent to which slave labour is used is kept very much at a minimum, if at all, in the supply chain of any of the components coming to advance us towards net zero. The solar road map, as referred to earlier, will set out in greater detail how the Government will work with industry to ensure that there are no slave labour components to any of the parts we are importing to develop our renewable technology.
Alison Thewliss (Glasgow Central) (SNP)
My constituent from Govanhill is being passed backwards and forwards between Utilita Energy and the Department for Work and Pensions. He receives income-related employment and support allowance and should be entitled to the warm home discount, but neither Utilita nor the DWP is able to give him the money he is entitled to. He applied in September last year. Will the Minister intervene and make sure he gets the money he is due?
Alicia Kearns (Rutland and Melton) (Con)
I put on record my heartfelt thanks to the Secretary of State and the Minister for Nuclear and Renewables for the action they took last week to put food security, alongside renewable energy, at the heart of local planning decisions. What are the Government doing to ensure that all councils immediately enact that policy, because it is both for local councils and for Government? Will existing soil assessments stand for nationally significant infrastructure projects, or will they be redone?
Andrew Bowie
I thank my hon. Friend for her question and her kind words. I am pleased to confirm to the House that my hon. Friend the Minister for Housing, Planning and Building Safety has written to all local authorities to draw their attention to the statement last week, which underlined our robust policy on solar farms on our best and most versatile agricultural land. Local planners should know this Government are serious about solar being put in the right places, and not on the best and most versatile agricultural land.
Simon Fell (Barrow and Furness) (Con)
A key tool in our arsenal against climate change must be sequestering carbon. It was a pleasure last week to see the Morecambe bay net zero peak cluster vision launched, which could decarbonise 40% of our cement and lime industries, securing a gigatonne of carbon under Morecambe bay. Can I encourage my hon. Friend the Minister to meet me to discuss the project further?
Andrew Bowie
I would be delighted to meet my hon. Friend at any time, and I am happy to discuss this and any other matter relating to the subject.
Managing Radioactive Substances and Nuclear Decommissioning
Andrew Bowie Excerpts(7 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Nuclear power, which uses radioactive nuclear fuel, continues to provide low-carbon electricity to homes and businesses in the UK. The UK also uses radioactive substances in many different products and processes—to treat and diagnose serious illnesses, to deliver research and development and in industrial processes. Most uses of radioactive material create radioactive waste, which needs to be managed, and the facilities that use this type of material, including nuclear power stations, will eventually need to be deconstructed safely and efficiently after they stop operating.
The UK Government and devolved Administrations are today publishing an updated policy framework for nuclear decommissioning and managing radioactive substances following a consultation conducted during spring 2023.
The policy document published today replaces, “Review of Radioactive Waste Management Policy: Final Conclusions” (Cm 2919) which was published in 1995. It updates, clarifies and consolidates a number of policies into a UK-wide policy framework. It sets out clearly those policies that are pursued jointly by the UK Government and devolved Administrations and any separate policies that apply in different parts of the United Kingdom.
Nuclear power will continue to be an important source of low-carbon electricity in England and Wales as we work towards reaching net zero carbon emissions by 2050. Although the Scottish Government do not support building new nuclear plants under current technologies, they place great importance on the need to address Scotland’s radioactive waste legacy and are committed to the safe, secure and responsible management of waste with care for people and the environment. The UK Government and devolved Administrations agree that it is vital that we have a policy framework for decommissioning and managing radioactive waste that is fit to deal with our legacy waste and fit for the future.
The waste can occur as gases, liquids or solids. The radioactive substances policy covers the management and use of radioactive materials and how any subsequent wastes are then managed to ensure people and the environment are protected.
Key updates to the UK-wide policy include enabling additional disposal capability in England and Wales to deliver faster, more cost-effective and sustainable decommissioning and placing greater emphasis on including decommissioning by design into nuclear projects.
Overall, the revised policy framework creates clearer and more consistent policy objectives across the UK, which should unlock more innovative and sustainable ways of working, realising significant savings for industry and the taxpayer, while maintaining high standards of safety, security and environmental protection.
The UK Government and devolved Administrations are publishing alongside the final policy framework a summary of the responses to the consultation.
I will deposit a copy of the updated policy framework for nuclear decommissioning and managing radioactive substances in the Libraries of both Houses.
[HCWS475]
Draft Carbon Capture Revenue Support (Directions, Eligibility and Counterparty) Regulations 2024
Draft Carbon Dioxide Transport and Storage Revenue Support (Directions and Counterparty) Regulations 2024
Andrew Bowie Excerpts(7 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I beg to move,
That the Committee has considered the draft Carbon Capture Revenue Support (Directions, Eligibility and Counterparty) Regulations 2024.
The Chair
With this it will be convenient to discuss the draft Carbon Dioxide Transport and Storage Revenue Support (Directions and Counterparty) Regulations 2024.
Andrew Bowie
It is a pleasure to serve under your chairmanship this afternoon, Mr Hollobone. The regulations were laid before the House on 15 April 2024 under the affirmative process. I will refer to the two sets of regulations as the carbon dioxide transport and storage regulations and the carbon capture regulations. They are part of a series of pieces of secondary legislation made under powers in the Energy Act 2023, which is a landmark piece of legislation that I and the Opposition spokesperson, the hon. Member for Southampton, Test, debated at length, and which received Royal Assent on 26 October 2023.
I will first provide some important background on the UK’s carbon capture landscape, before turning to the rationale and detail of the regulations. Carbon capture, usage and storage—CCUS—supports the UK’s legally binding commitment to reduce greenhouse gas emissions to net zero by 2050. In 2021, the HyNet and East Coast clusters were announced as the UK’s first CCUS clusters, where CO2 will be captured from a range of sources to support the low carbon economic transformation of our industrial regions. The CO2 transport and storage—T&S—network is essential for building CCUS capability, and it is the enabling infrastructure for captured CO2 to be transported to permanent offshore storage.
To facilitate the development of the T&S infrastructure, the Energy Act makes provision for revenue support to be available to any transport and storage company. Revenue support is part of the broader T&S regulatory investment model, or TRI model. Under the TRI model, an allowed revenue will be determined for T&S companies, and exposure to revenue gaps—instances in which annual revenue from user charges is less than a T&S company’s allowed revenue—will be mitigated. For example, where a revenue gap arises beyond a T&S company’s control, such as where a network user is late in joining the network, a shortfall in the allowed revenue may arise. In such instances, T&S companies can increase charges across the user base, up to a cap. We propose that, should the increase in charges across the user base up to the cap be insufficient, the T&S companies will be entitled to revenue support as a last resort mechanism, funded by His Majesty’s Government. That will enable T&S companies to recover shortfalls through a revenue support agreement, or RSA. Without that, there would remain a significant barrier to investment in the T&S infrastructure in the early stages of the CCUS sector’s development.
Let me turn to the detail of the transport and storage regulations. RSAs will be offered as a contract between a T&S company and a counterparty, under the direction of the Secretary of State, in accordance with section 60(1) of the Energy Act. To maintain the integrity of RSA allocation, the regulations place requirements on the Secretary of State’s directions, and sets out circumstances in which a direction ceases to have effect, including where the Secretary of State revokes a direction before a T&S company accepts a contract in writing. The counterparty will be responsible for publishing each RSA contract, as well as for establishing and maintaining a public register of key project information. Ensuring the transparency of the contracts is essential for encouraging greater understanding of the level of support for, and confidence in, this critical but nascent sector.
To be clear, the regulations allow the Secretary of State to redact sensitive information, ensuring that sensitive commercial information, information that constitutes trade secrets and personal data are removed before the documents are made public. The regulations also require the counterparty to promptly notify the Secretary of State if it is unable to perform its duties.
Let me turn to the carbon capture regulations, and set out the context of industrial carbon capture. ICC is critical to decarbonising industries with hard-to-abate emissions and to achieving net zero by 2050. The Government’s ambition is to capture and store 6 megatonnes of CO2 from industrial emissions annually by 2030, increasing to 9 megatonnes of CO2 by 2035. The ICC business models are designed to incentivise deployment of carbon capture technology by industrial and waste users, who often have no viable alternative to achieve deep decarbonisation.
Let me turn to the carbon capture regulations and their role in facilitating the business models. These regulations broadly mirror those that I have detailed on transport and storage in respect of the Secretary of State’s directions to a counterparty for offering to contract with an eligible carbon capture entity, including where directions cease to have effect or may be revoked. The reporting requirements for a counterparty also remain. This includes a duty to publish contracts entered into, to establish a public register and to promptly notify the Secretary of State if it is, or considers that it is likely to be, unable to carry out its functions.
However, these regulations also satisfy the duty in section 68(4) of the Energy Act by determining the meaning of “eligible” in relation to a carbon capture entity, specifically one where the CO2 to be captured and stored is produced by commercial or industrial activities, as set out in the Act. In short, the regulations set out who can be eligible for support. The transport and storage regulations do not include a definition of eligibility, as an eligible T&S company is defined under section 60(2) of the Act as a person who holds an economic licence, or has been notified in writing by the appropriate parties that an economic licence is to be granted.
The ICC business models have been developed to support decarbonisation of the industrial sector, including the waste management sector. We do not consider it appropriate for the ICC business models to support carbon capture deployment for certain parts of the power sector. Therefore, the regulations set out that an entity will be ineligible if it is capturing CO2 produced by the generation of electricity and is connected to the transmission and/or distribution system in respect of all the electricity that the generation station produces. However, capture from combined heat and power plants and energy recovery generating stations will be eligible regardless of how or whether they are connected to the transmission and distribution systems. It should be noted that the regulations form only one part of the assessment for whether projects would be awarded an ICC or waste ICC contract. Further eligibility criteria are expected to be set for individual allocation rounds in allocation guidance.
In conclusion, in implementing transport and storage infrastructure and the industrial carbon capture business models, the regulations represent an essential step towards achieving our 2030 deployment ambitions and net zero. I commend the regulations to the Committee.
Andrew Bowie
I thank the hon. Gentleman for his contribution; as ever, it was thoughtful and thought provoking. The two draft instruments we are discussing are broadly administrative in nature, as I am sure everyone will have judged, but they outline the vital operational procedures for enabling Government’s proposed business models for carbon capture, transportation and storage.
To respond to the hon. Gentleman’s first point, I, too, look forward to that episode of “The Reunion” on Radio 4. Indeed, to extend his analogy, if hon. Members were ever on “Desert Island Discs”, I am sure they would find the Hansard of our proceedings and discussions on the Energy Act an essential tool to take with them to the desert island. I would suggest that an audio version might be useful in getting some sleep on said desert island.
On the hon. Gentleman’s questions about a counterparty, as he said, the Low Carbon Contracts Company is expected to be the counterparty to the RSA. On his specific point about whether it has already been appointed, the LCCC is the existing counterparty for the contracts for difference for low-carbon electricity. It is the resource-efficient and cost-effective option to act as the RSA counterparty, and stakeholders can therefore be confident in the LCCC’s ability to carry out the counterparty functions.
Andrew Bowie
As I just said, it has already been designated as the existing counterparty for contracts for difference, and there is an assumption that it will be designated for the transportation and storage moving forward.
Andrew Bowie
As yet, it has not been designated, but the assumption is that it will be; it already is for CfD.
On the territorial application, of course we can only legislate for domestic legislation here in this House. The draft regulations will apply to transportation and storage within the United Kingdom and to any imported carbon that we would be looking to store here in the UK when it reaches our territorial waters or UK land. However, I am in discussions already with partners in Europe and beyond about how we can work together to ensure the safe delivery of carbon capture, utilisation and storage, which will benefit this country, this continent and the entire world moving forward. The discussions are indeed ongoing, he will be pleased to hear. I hope that the Department, the Government and I have provided the necessary assurances to approve the draft statutory instrument before us.
The carbon dioxide transport and storage regulations will enable the effective delivery of the RSA, which is essential to build a functioning T&S network. This is one part of the TRI model that has been designed to overcome barriers to private investment that exist when building first-of-a-kind infrastructure to support the nation’s carbon capture, utilisation and storage sector to thrive. The deployment of transport and storage infrastructure is key to our ambition to capture and store 20 million to 30 million tonnes of carbon dioxide by 2030. We are well placed to lead the world in CCS technology, with an estimated potential 78 gigatonnes of CO2 storage capacity on the UK continental shelf.
We have selected three industrial carbon capture projects and two waste industrial carbon projects to progress to negotiations and to help to form the first two carbon storage clusters, the HyNet and East Coast clusters. We expect to award the first contracts to projects later this year. I therefore commend the regulations to the Committee.
Question put and agreed to.
DRAFT CARBON DIOXIDE TRANSPORT AND STORAGE REVENUE SUPPORT (DIRECTIONS AND COUNTERPARTY) REGULATIONS 2024
Resolved,
That the Committee has considered the draft Carbon Dioxide Transport and Storage Revenue Support (Directions and Counterparty) Regulations 2024.—(Andrew Bowie.)
Large-scale Solar Farms
Andrew Bowie Excerpts(8 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a pleasure to serve under your chairmanship, Mr Henderson. I congratulate my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) on securing this incredibly important and timely debate on large-scale solar and the impact of the plans on rural England.
It has been fantastic to hear the passionate and well-informed speeches of my hon. Friends the Members for Redditch (Rachel Maclean), for Buckingham (Greg Smith)—he talked about the benefits of small modular reactors, which was music to my ears—and for North Wiltshire (James Gray).
My right hon. Friend the Member for Gainsborough (Sir Edward Leigh) talked about the positive benefits of further investment in nuclear power, which is why we unveiled the civil nuclear road map earlier this year—the biggest investment in nuclear in 70 years. He would struggle to find a bigger advocate of the benefits of our domestic oil and gas industry than me. I assure him that, despite my Scottish Presbyterian upbringing, I associate myself much more with the cavaliers than the roundheads. We also heard from my right hon. Friends the Members for Haltemprice and Howden (Sir David Davis) and for Suffolk Coastal (Dr Coffey). I think I have engaged with just about every one of them individually on various energy infrastructure projects, not least recently on solar.
It was also good to hear the concerns of communities raised in the interventions of many other Conservative Members, including my right hon. Friends the Members for Newark (Robert Jenrick), for South Holland and The Deepings (Sir John Hayes), for Ludlow (Philip Dunne) and for Staffordshire Moorlands (Dame Karen Bradley) and my hon. Friends the Members for Devizes (Danny Kruger), for North East Bedfordshire (Richard Fuller), for Sedgefield (Paul Howell) and for Cleethorpes (Martin Vickers).
I represent a vast rural constituency that encompasses some of the best farmland north of the border, which is itself looking at significant energy infrastructure build over the next few years, so I completely understand those concerns and have heard them myself from local communities worried about what that build will mean for the countryside in which they live and of which they are so fond.
Three years ago, the Government adopted our sixth carbon budget with the world’s most ambitious climate change goal—to reduce emissions by 77% by 2035, compared with 1990 levels. We also committed to fully decarbonising the electricity system by 2035, subject to security of supply. Renewables such as solar and wind, alongside other low-carbon technologies such as nuclear, will underpin the UK’s transition from a reliance on fossil fuels to a new, secure, clean energy system. Solar is an important part of the energy mix, and its deployment is a key part of the Government’s strategy for energy independence and clean growth.
As set out in the British energy security strategy and the energy security plan, we are aiming for up to 70 GW of solar capacity by 2035. To achieve that, we need to deploy both rooftop and ground-mounted technology. Ground-mounted technology is one of the cheapest forms of electricity generation and is readily deployable at scale. As such, the Government consider that there is a strong need for increased ground-mounted solar deployment, as reflected in the recently published energy national policy statements.
However, the Department and I recognise that, as with any new development, solar projects may impact on communities and, indeed, the environment. The planning system must allow all views to be taken into account when decision makers balance local impacts with the national need.
Because of the quasi-judicial role of Ministers in determining planning applications, I hope that Members will appreciate that it would not be appropriate for me to comment on any specific matters in relation to specific projects in the planning system. Nor can I comment on the merits or harms of any particular proposals, as that could be perceived as prejudging the subsequent outcome. However, the Government recognise that solar projects can impact on land use, and I can speak to that. It is important that the Government strike the right balance between those considerations and securing a clean energy system for the future. Again, the planning system must take those issues into account.
As the recently published national policy statement for renewable energy infrastructure sets out, solar developers
“should, where possible, utilise suitable previously developed land, brownfield land, contaminated land and industrial land. Where the proposed use of any agricultural land has been shown to be necessary, poorer quality land should be preferred to higher quality land avoiding the use of ‘Best and Most Versatile’ agricultural land where possible.”
If it is proposed to use any land falling under Natural England’s best and most versatile agricultural land classification—grades 1, 2 and 3a—developers are required to justify using such land and to design their projects to avoid, mitigate and where necessary compensate for any impacts.
It is clear to me and to the Government that concerns remain about the scale and volume of projects that are being applied for on BMV land in specific areas of the country, particularly in areas with historic and established grid connections. We have concerns that not all developers are properly considering those requirements. That is something that needs to be rectified. We want to see that, following the new EN-3 publication. Although I can say little of detail in this Chamber, I want to assure hon. Members that we are listening and that work is ongoing to see what can be done to ensure that balance is met.
Reference has been made to the fact that there are no Liberal Democrat Members in the Chamber this afternoon. My hon. Friend the Member for Redditch described their policy as “bananas”, which means, “Build absolutely nothing anywhere ever.”
Andrew Bowie
Near anybody—sorry. However, that is not actually the case. The Lib Dems’ proposal, which was voted on at their conference last year, is to remove restrictions on new solar and wind to accelerate deployment of renewable power. It is quite clear why there are no Liberal Democrats in the Chamber today; they would ride roughshod over the views of rural communities around the country to increase the deployment at pace and scale of solar and other technologies.
The reason why there are not many Labour Members in the Chamber is, as the hon. Member for Southampton, Test (Dr Whitehead) suggested, that not many of them represent rural communities, and they are not seeing the impact of the applications. I am now of the opinion, however, that they are just as confused about the Labour party policy on this issue as we all are, following what was a very interesting speech from the Opposition spokesperson.
Solar and farming can be complementary, supporting each other financially, environmentally and through shared use of land. Analysis shows that even in the unlikely scenario that all additional solar needed to meet the British energy security strategy ambition of 70 GW were to come forward as ground-mounted solar, which is not going to be the case, it would be less than 1% of all types of UK utilised agricultural land that was needed to accommodate it. However, as I have referred to, the concentration of so many of those projects in specific areas is concerning, and UK-wide analysis cannot take that into account. Again, although I am unable to say anything specific at this time, I can assure colleagues that we are listening.
The Government consider that improving our energy security is urgent and of critical importance to the country. I do not think that there is any disagreement on that, but it must be achieved together with maintaining food security for our United Kingdom. Solar projects and agricultural practice can co-exist. For example, the science of agrivoltaics is developing, in which solar is integrated with arable farming in innovative ways. That is coming on in leaps and bounds. Solar energy can also be an important way for farmers to increase their revenue from land less suited to higher-value crop production. Again, on that there is very little disagreement.
What we ultimately want to achieve is protecting our environment, backing British farmers and delivering long-term energy security with more low-carbon energy. I guarantee that this Government and this Department will not countenance the industrialisation of our green and pleasant land. It is possible to maintain and increase our food production in a more sustainable way in some areas and to see land use changes in others.
I turn briefly to the issue of cumulative impacts, which has been brought up multiple times. The planning system sets out how applicants and decision makers should consider cumulative impacts. When preparing an application for a development consent order, applicants for solar deployments and developments under the NSIP regime
“should consider the cumulative impacts of situating a solar farm in proximity to other energy generating stations and infrastructure.”
It is then a matter for the examining authority to consider cumulative in-combination effects with the other solar farm proposals and other developments in a locality when conducting an examination of a particular NSIP solar project. During the examination, the views of interested parties, which will include advisory bodies and local planning authorities, will be taken into account in the examining authority’s recommendations. Again, I assure colleagues that we are looking at that issue.
The Department and I appreciate the concerns raised about the clustering of projects around grid connections in some areas. As we bring more new energy infrastructure online to meet the demand for clean, secure electricity, so too must we increase grid capacity. As set out in the spring Budget, the Government are working with Ofgem and network companies to release more network capacity and prevent speculative projects from obtaining and retaining network capacity. That should result in more capacity across the country and help to reduce the clustering of projects.
Community engagement has also been raised. It is vital—this is where Conservative and Labour party policies differ dramatically—that communities have a voice in decisions about their local areas. There are established routes in the planning system to consider the impact of solar projects and to enable communities to raise concerns about developments. I know that there are concerns about how effective those routes are, but I will set out the policy as it stands.
The national planning policy framework, which underlies the planning system for projects below 50 MW, encourages developers, including those proposing solar projects, to engage with local communities before submitting an application. Local authorities will consider a range of factors when assessing applications, including visual and environmental impacts. Members of the public can submit their views to the planning authorities, and significant concerns will be taken into account as part of the local decision-making process. Developers taking larger projects through the NSIP regime must complete considerable community engagement before any approval is granted, giving communities ample opportunity to feed in their views. The level and quality of community engagement, among other factors, will be taken into account by decision makers.
James Gray
We had an extensive consultation in Wiltshire, and I went along to all the meetings with the PR people who have to do such things. I said to each of them, “Will you take account of the fact that most people here do not want this thing to happen at all? We want to stop it. We want to keep the green fields.” They said, “No, we can’t consider that. All we can consider is the design of the solar farm.” The consultation process is bogus.
Andrew Bowie
My hon. Friend makes a specific point about his constituency, on which I cannot comment, but I am sure that his concerns have been heard. They are certainly not new concerns; they have been raised with me in the past. As I said, we are genuinely and clearly listening to those concerns in the entire process.
Dr Coffey
The Minister is right to talk about how NPS EN-3 refers to the planning application process. One of the points that I made was about the connection process. Connections are being offered left, right and centre. Communities then see that as happening automatically in future, and indeed National Grid is building its infrastructure around the connections it is giving out, regardless of future planning applications. I appreciate that the Minister might not be able to reply today, but he and the Department need to look at the connection process. That is why I called for a moratorium on anything further.
Andrew Bowie
My right hon. Friend knows that I am no longer the Minister responsible for the network or the national grid, but I will ensure that her concerns are passed on to the relevant Minister. Ofgem and the electricity system operator are engaged in a considerable review of how connections are offered across the country, because there is a problem with that system. That is recognised and is being addressed.
Let me briefly touch on community benefits, which have also been raised. It is important that communities can participate in and benefit from the deployment of new low-carbon energy technologies in their local area. However, the Government do not have a formal role with regard to community benefits for solar and other large-scale renewable energy projects. We believe that those are best agreed at a local level, between the renewable operator and the local communities, so that they can be tailored to each community’s individual needs. They cannot be taken into account and, I am afraid, are not relevant to the planning decisions. A number of solar developers already provide community benefits on a voluntary basis. We are working with Solar Energy UK, the industry body, to provide further guidance and advice on community benefits for solar developers and communities and to develop a more consistent approach across the country that is fair to all parties.
Dr Whitehead
Does the Minister accept that under the present trading arrangements for energy, a developer cannot provide a trading benefit for a local area only and has to treat it as though it were a national benefit? Is the Minister interested in changing that so that benefits can come to local areas, rather than simply being spread across the national grid, as hon. Members have said?
Andrew Bowie
As I said, we are working with the solar industry now to develop proposals and give guidance and advice on how best to support local communities and deliver community benefits, so that communities that host these projects on behalf of the wider nation see a benefit. We are not closing our minds to any suggestions that might benefit such communities moving forward. This is a wholesale change in how we deliver energy across the UK, so we should be open to thinking about how we do that in the most appropriate fashion.
I assure right hon. and hon. Members that we are deploying rooftop solar. It remains a key priority for the Government, and continues to be one of the most popular and easily deployed renewable energy sources. We want to see more rooftop solar on industrial and commercial properties, such as warehouses, factories and buildings, to make maximum usage of the available surfaces for business as well as for the environmental and climate benefits. There will be more on that in the solar road map, which will be published in the next few months.
The issue of forced labour was raised. I addressed that in the Chamber just the other evening in response to a debate that was secured by my hon. Friend the Member for Rutland and Melton (Alicia Kearns). However, as it has been brought up again, I reassure Members that the Government are committed to tackling the issue of Uyghur forced labour in supply chains, including in the mining used for the manufacture of solar panels, and are taking robust action. Over the past two years, we have introduced new guidance on the risks of doing business in Xinjiang, introduced enhanced export controls and announced the introduction of financial penalties for those who fail to report as required under the Modern Slavery Act 2015. That followed our announcement in September 2020 of the package of changes to section 54 of the Modern Slavery Act. These changes will require large businesses and public bodies to report on specific areas within their modern slavery statements, including their due diligence processes in relation to modern slavery. There will be yet more on that within the solar road map on what the industry is doing to ensure that it is not reliant on forced labour anywhere in the world, but particularly in China.
We need an increase in ground-mounted solar alongside rooftop solar over the next decade to meet our energy security and net zero goals and to reduce the cost to consumers. But it is clear to me, the Secretary of State for Energy Security and Net Zero and His Majesty’s Government in general that this growth must be sustainable and enabled by a robust planning system that balances the wider benefits with the local impacts, that local communities are listened to and that food security concerns are addressed. That is what we are committing to do. I look forward to the publication of the solar road map, which is the result of the solar taskforce’s work. The document will set out deployment scenarios as well as key actions needed to address challenges in several priority areas, including the grid, rooftop supply chains and skills.
Once again, I thank my hon. Friend the Member for Sleaford and North Hykeham for bringing forward this debate—
Rachel Maclean
Will the Minister enlighten us on when this solar road map will be published?
Andrew Bowie
I assure my hon. Friend that it is imminent. We will see the publication within the next few weeks.
Andrew Bowie
Spring. I close by thanking my hon. Friend the Member for Sleaford and North Hykeham for bringing forward this important debate. The contributions have been enlightening and well informed, and show the passion with which Members, who I am proud to serve with, have for the local communities that they are honoured to represent in this place.
Dr Caroline Johnson
I thank all my right hon. and hon. Friends for coming along to contribute either interventions or magnificent speeches. I started the debate with an agreement and I will finish it with one. We agree on so many things on the Government side of the House. Currently, my constituents feel under siege as they wait for the results of a planning process that could ruin many aspects of their life. Let us imagine: you own a house in a rural village, such as Scopwick, and when you walk your dog in the morning, you enjoy the beautiful countryside and the sunshine. However, under this plan you will be walking through field after field, for miles around, of 4-metre-high solar panels. That will spoil much of your enjoyment of the countryside and your house. We also know that it will have an effect on my constituents’ mental health and wellbeing.
We have heard about how inefficient solar farms and solar panels are as a form of energy compared with other forms of green energy, and how, as the technology becomes better over time, these large solar farms put in in the countryside will become obsolete long before their 40 years are up. We have also heard that they are not as green as they are said to be and they are certainly not as morally clean as we would wish them to be.
We have also heard about the importance of protecting the countryside, particularly productive farmland, and about food security. We have heard that it is important that everybody has the right to defend their area, not because they are a nimby, but because they care about where they live.
We have also heard about farmers. I should mention that my husband is a farmer so I understand, perhaps as well as most, the challenges of farming at the moment and the financial difficulties posed by some of the weather issues that we have had this year. I also heard today that there is no real objection among Conservative Members to small-scale development of solar for farmers, which will help to de-risk some of the farming challenges without having a huge impact on the community. We heard about the particular difficulties for tenant farmers, who may be chucked off land that they have farmed for generations simply so that solar farms can be put on it instead.
We heard about Government measures to incentivise the use of brownfield land and rooftops. I am very pleased that a solar plan is imminent and I am really looking forward to it. One thing the Minister said was that, where possible, we should use brownfield or poor-quality land and that a developer would have to justify themselves if they are not using that. In practice, however, in a county such as Lincolnshire, which has very little such land, developers can therefore claim that there is no rubbish land locally, because it is all good. That is therefore not tight enough for me; that loophole needs closing.
The Minister also talked about the cumulative effect. I want to draw his attention to something that he might not be aware of because it sits outside his brief: the reservoir that developers also propose to build in my constituency. That is yet another NSIP project that will take up many thousands of acres—5 sq km, indeed—of currently productive and in some cases organic farmland. So on the cumulative effect of development, when, as he puts it, we are hosting infrastructure for the whole country, it is important not just to consider the energy infrastructure that an area is being asked to host, but the wider infrastructure that an area or a community is being asked to bear for the greater good.
There have been lots of mentions today of a land use plan. Will the Minister tell me when he expects that to be published, or could he go back to DEFRA to find out when?
Dr Caroline Johnson
I see that the Minister is nodding. I also want to draw his attention to the widespread nature of this debate by listing some of the counties that we have heard from today: Suffolk; Yorkshire; Nottinghamshire; Wiltshire; Bedfordshire; Rutland; Shropshire; Worcestershire; Derbyshire; North Lincolnshire; Oxfordshire; Durham; Staffordshire; and Lincolnshire, which has the greatest concentration of them all. [Interruption.] And Buckinghamshire; I knew that I had missed one out. That should demonstrate to him the scale and the widespread nature of the problems that we face.
I was quite disappointed to hear what the Labour spokesperson, the hon. Member for Southampton, Test (Dr Whitehead), had to say. He talked about solar being an important part of the solution to net zero and said that it is important to consider planning—well, yes, of course. He also talked about supporting onshore wind, which I know my constituents, by and large, do not support—they do not support the idea of covering their beautiful farmland with windmills instead of solar panels. He talked about spreading this out evenly, but what does that mean? Does it mean that every district council must have so many? How would that work in the centre of London? He did not really have a policy, and for a party who think that they might be in Government in less than six months’ time, that is really quite remarkable.
I was also pretty disgusted to see that there were no Back Benchers here from the Opposition at all—nobody from the SNP, the Liberal Democrats or Labour. Do they have no interest in the countryside? I have always thought that to be the case and this shows it to be true.
Finally, I met the Prime Minister just before Easter on a one-to-one basis, and I am certain both of his understanding of the importance of dealing with this issue and of his commitment to doing so. I am also very clear that we have a Minister here who is most capable and committed to achieving what his boss has asked him to do and of delivering for my constituents, but I ask him to do so as quickly as possible.
Question put and agreed to.
Resolved,
That this House has considered large-scale solar farms.
Oral Answers to Questions
Andrew Bowie Excerpts(8 months, 1 week ago)
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Mr Philip Hollobone (Kettering) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government recently consulted on the future homes and buildings standards, which explore how we can drive on-site renewable electricity generation, such as solar panels, in new homes and buildings. In December we simplified planning processes for larger rooftop installations by removing the 1 MW cap for non-domestic arrays in permitted development rights.
Mr Hollobone
The CPRE’s rooftop solar campaign calls for far greater emphasis on the installation of solar panels on our nation’s rooftops, rather than the promotion of ground-mounted solar on greenfield and agricultural land, which harms our natural environment and imperils UK food security. Would the Minister be kind enough to read the CPRE’s “Lighting the way” report, which highlights international best practice on this issue?
Andrew Bowie
I thank my hon. Friend for his question and his recommended reading. I was aware of the CPRE’s rooftop campaign, and I am keen to understand the findings of its latest report. As set out in the British energy security strategy and the energy security plan, we are aiming for 70 GW of solar capacity by 2035. That would be more than quadruple our current installed capacity. We need to maximise the deployment of both types of solar to achieve that ambition.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
This is my first chance to offer my condolences to you, Mr Speaker, on the death of your dad. He was a great man and helped induct me into this place when I first came here in 1979.
If we are to have a proper domestic solar roll-out across, we desperately need more trained people in the green sector. What will the Minister do about that? Is it not about time that every university and further education college offered apprenticeships and ways in to these wonderful jobs? Will he talk to industry leaders, such as Octopus, about their shortage of skilled men and women?
Andrew Bowie
Absolutely. My right hon. Friend the Secretary of State regularly meets companies such as Octopus. Through our green jobs delivery plan we are enticing more people into the jobs of the future, to help deliver our ambitious targets. It is interesting to note that Labour’s plans would halve the number of apprenticeships for those jobs in the UK, should it ever get into power.
Gareth Thomas (Harrow West) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
In 2023, 80 onshore wind planning applications were submitted in Great Britain—a 27% increase from 2022. We have recently changed planning policy in England to pave the way for more onshore wind projects where there is local support.
Gareth Thomas
It is now seven months since the Government claimed to have lifted the onshore wind ban. The Secretary of State at the time claimed that her decision would speed up the delivery of projects. Since then, no new applications for onshore wind farms for domestic use have been submitted. Does the Minister think that that has been a success?
Andrew Bowie
Unlike the Opposition, we like to work with and listen to communities around the country. We believe in local consent for projects. It should be up to local communities to decide whether and how much onshore wind they want in their area. The Opposition do not like to talk about this, but we must remember that in 2010, a pitiful 7% of electricity came from renewables—that is up to 50% under this Government.
James Gray (North Wiltshire) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
As with any new development, solar projects may impact communities. The planning system considers all perspectives when balancing local impacts with national need. It is important that local areas benefit from hosting net zero infrastructure. Many developers already offer community benefit packages.
James Gray (North Wiltshire) (Con)
If the Minister had wanted to see the impact that a massive solar farm, such as the so-called Lime Down carbuncle in my constituency, will have on local people, he should have come to Malmesbury town hall last week, where 750 people were protesting against this appalling plan in North Wiltshire. It is going to be 2,000 acres of panels, 3 million panels, 5,000 acres blighted, and 30 miles to the nearest connection down at Melksham. It is an absolutely disgraceful proposal. It comes at a time when Wiltshire has eight out of 10 of the largest solar farms. We already have enough, vastly exceeding our county target for solar production. Will the Minister consider the cumulative effect of all these solar farms? Will he ask the National Infrastructure Commission to take into account the cumulative effect of solar farms when considering such applications?
Andrew Bowie
I very much thank my hon. Friend for that question. He raises a very interesting topic, and one that we are listening to. The project he speaks to is at the pre-application stage. An application is expected to be submitted to the Planning Inspectorate between January and March 2025. Due to my quasi-judicial role in determining applications for development consent, it is not appropriate to comment on any specific matters. I am aware that some of his constituents are coming to Parliament this Thursday and I will be happy to meet them to discuss their concerns.
Steve Double (St Austell and Newquay) (Con)
Chris Clarkson (Heywood and Middleton) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The historic nuclear road map that I announced in January reconfirmed the Government’s ambition to deploy up to 24 GW of nuclear power by 2050. The road map sets out plans to make investment decisions concerning 3 GW to 7 GW every five years between 2030 and 2040.
Chris Clarkson
Nuclear is essential not just for our economy but for our national security. A truly sovereign supply does not just mean commissioning new reactors but increasing our skills base, so I welcome the £750 million invested in that. What steps is the Department taking to ensure that people in communities such as Heywood and Middleton can access that skills funding, so they can take advantage of high-skilled, well-paid jobs in the sector?
Andrew Bowie
My hon. Friend is absolutely right. He is a doughty champion in this area—indeed, he should be with Atom Valley in his constituency. As he references, last month the Prime Minister announced significant investment in developing the nuclear skills pipeline, helping the sector to fill 40,000 new jobs by the end of the decade, including supporting plans to double the number of nuclear apprentices and quadruple the number of specialist sites and nuclear fission PhDs.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Alexander Stafford (Rother Valley) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The UK has already made tremendous progress in securing investment in green technologies. Recent figures indicate that the UK saw £60 billion of investment in 2023, meaning that since 2010 the UK has seen £300 billion of public and private investment in low-carbon sectors. As a Department, the ministerial team and I meet regularly with investors, such as through our second hydrogen investor forum event and regular roundtables to understand how we can better encourage investment.
Stephen Crabb
It is true that the UK has a remarkable track record of winning investment in green technology, but given that other countries are now proceeding apace with their own green investment plans, does my hon. Friend agree that if we can show that we have effective policies for speeding up planning consents for energy projects and expanding grid capacity at a far faster rate, and if we can fix our contracts for difference regime, we shall be able to demonstrate to investors once again that this is the very best place in which to invest in such technology?
Andrew Bowie
My right hon. Friend is right: we have a proud record of investment in green and clean technologies, and in many respects we are leading the world in that regard. Last year we launched our Giga project and this year we are launching CfD allocation round 6, which is the stand-out leader when it comes to enticing investors—but of course we can go faster and further, and where we can we will. That is why I am so pleased to see the work that is being done within my Department and, indeed, with industry with the aim of doing just that.
Alexander Stafford
Given that there is no more important technology in the UK’s green industries than hydrogen, I was pleased to note that, after much dilly-dallying, the Department had listened to my continued advocacy of hydrogen blending in pipes. I look forward to seeing its plans imminently, but what support is it giving to home appliance providers who want to take advantage of the benefits of hydrogen to create hydrogen-ready technology that can be used for both blended and fully hydrogen-powered appliances?
Andrew Bowie
My hon. Friend is another doughty champion for one of the expanding sectors in which we are investing: his championing of the hydrogen industry in this country is unmatched. I should be happy to meet him to discuss how we can progress further and speed up investment in hydrogen, which will be key to securing the progress of so many of our ambitious projects.
Anne McLaughlin (Glasgow North East) (SNP)
Along with my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands), I co-chaired the all-party parliamentary group on green deal mis-selling. After nearly 10 years, we are still waiting for justice for our constituents who were told to invest in green technologies for their homes. A legal process is under way, but it is very lengthy. Most of our affected constituents were over 70 when all this happened, and some were over 80.
There must be a political solution. Numerous Prime Ministers and Secretaries of State have agreed that what happened to our constituents was dreadful, so why do they not find a solution that will encourage other people to feel confident that they too can invest in green technologies in the knowledge that the Government have their backs should it go wrong?
Andrew Bowie
I agree with the hon. Lady that what happened was dreadful. As she has said, an ongoing legal process is under way so I am restricted in what I can say at the Dispatch Box, but I should be happy to meet her in the coming days to discuss the specifics involving her constituents who were affected.
Sarah Dyke (Somerton and Frome) (LD)
The south-west is proud to be punching above its weight in green technology, and will soon welcome a £4 billion gigafactory at the Gravity site near Bridgwater which will create 4,000 new jobs and boost the green economy. Investment in infrastructure around the country is needed if we are to see more developments of that kind, so what steps is the Department planning to facilitate such ventures?
Andrew Bowie
It is fantastic to hear Liberal Democrats champion Conservative policies that are bringing investment and new jobs into the country—for that is what happens under a Conservative Government—and it is great that a gigafactory is planned for the south-west. As a result of Giga and so many of the other projects and funds launched by the Department, we expect to see many more such developments, but of course there is work to be done: we can go further and faster, and, as I have said, where we can we will. I look forward to working with the hon. Lady in further championing the UK as the destination of choice for all who want to invest in these new technologies.
Mr Louie French (Old Bexley and Sidcup) (Con)
Dave Doogan (Angus) (SNP)
We learned last year that no fewer than 200 Department for Energy Security and Net Zero jobs were going to transfer from London to Aberdeen. That was championed by no less than the Secretary of State for Scotland, the right hon. Member for Dumfries and Galloway (Mr Jack) and the Minister responsible for nuclear and renewables, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). It now transpires that only 35 jobs will transfer to Aberdeen. For context, that is 0.37% of the DESNZ workforce. Is the Secretary of State content for that derisory transfer of jobs from her Department to Aberdeen? Presumably she will not be, so what is she going to do about it to give the north-east of Scotland a better deal?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I thank the hon. Gentleman for raising this issue. We are very proud—I am particularly proud—that we have announced Aberdeen as our second headquarters. Hosting our second headquarters underlines the importance of the north-east of Scotland in our net zero transition. Unlike the Scottish National party, we champion the north-east of Scotland. They are anti-exploration, anti-new licences and anti-oil and gas. The headquarters already has more than 100 staff, and our ambition is for more than 135 by March 2027. I have been doing some research, though: it turns out that the Scottish Government—his party’s Government—have a grand total of zero jobs in his own constituency of Angus.
Simon Jupp (East Devon) (Con)
Andrew Bowie
I agree that it is incredibly encouraging and exciting to see those developments. I would, of course, be delighted to visit my hon. Friend in her constituency at any time.
Lee Anderson (Ashfield) (Reform UK)
Andrew Bowie
I am very proud of what this Government have done to protect the poorest in society from rising bills, which are the result of international factors and a volatile gas market. I make it absolutely clear that the only way that Dale Vince, the climate extremist, and his enablers will come anywhere close to having influence on energy policy is if a Labour Government are elected. Frankly, that is the only thing that voting Reform will achieve.
Simon Fell (Barrow and Furness) (Con)
At my constituency surgery on Friday, I met representatives of the Riddings Lane solar action group who are concerned about the proposals to build a new solar farm covering 145 football fields’ worth of land between the villages of Gleaston, Dendron, Leece and Newbiggin. Does the Minister agree that solar farms are great but should not go on prime agricultural land?
Andrew Bowie
As my hon. Friend is aware, we have a presumption against building on the best and most versatile agricultural land. Due to my quasi-judicial role in planning I cannot speak to the issue directly, but I am very happy to meet him and, indeed, any representatives from his constituency to discuss the project in question.
Helen Morgan (North Shropshire) (LD)
Dr Neil Hudson (Penrith and The Border) (Con)
Energy security is national security, and food security is national security. Up and down the country there are plenty of rooftops, residential, industrial and agricultural, that are suitable for solar panels. Will my hon. Friend the Minister reassure the country that we will prioritise those sites for our solar footprint, rather than jeopardising prime food-producing land or, indeed, our precious greenbelt?
Andrew Bowie
My hon. Friend is absolutely right. Food security and energy security are both vital, which is why the UK solar taskforce identified the need to address barriers relating to rooftop solar deployment, including access to finance as a priority. The rooftop subgroup was established to focus specifically on this area, and we are exploring options to facilitate low-cost finance from retail lenders to help households and businesses with the up-front cost of solar installation on rooftops.
Solar Supply Chains
Andrew Bowie Excerpts(8 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I thank my hon. Friend the Member for Rutland and Melton (Alicia Kearns)—she is a friend—for securing an incredibly important debate. I absolutely recognise her dedication to this serious issue and her eagerness to tackle it, noting her recent joint letter to the Secretary of State for Energy Security and Net Zero, alongside the Foreign Secretary and the Secretary of State for Business and Trade.
Let me be very clear and get right to the issue: UK businesses and solar developers should not countenance receiving solar panels from companies that may be linked to forced labour. This Government have been very clear on our position regarding the abhorrent practice of forced labour, and our expectation that companies will do everything in their power to remove any instances of forced labour from their supply chains.
That is why it was this Conservative Government who introduced new guidance on the risks of doing business in Xinjiang, who enhanced export controls, and who announced the introduction of financial penalties for those who fail to report as required under the Modern Slavery Act 2015. It was this Government who led the charge, announcing in September 2020 a requirement that large businesses and public bodies report on specific areas within their modern slavery statements, including their due diligence processes in relation to modern slavery. Additionally, it was this Government who recently passed the Procurement Act 2023, enabling public sector contracting authorities to reject bids from suppliers that are known to use forced labour themselves, or anywhere in their supply chain, and terminate contracts with such suppliers.
However, this remains a complex issue, and my hon. Friend the Member for Rutland and Melton is absolutely right: we must continue to review how we can best tackle forced labour in supply chains. I can promise her that we have not ruled out taking further and additional measures in the future. Across every part of Government, not just in the Department for Energy Security and Net Zero, we are continuing to engage and work with our international partners to understand the impact of measures to combat forced labour around the world.
The United Kingdom of Great Britain and Northern Ireland has a strong record of holding countries to account for instances of forced labour. The Government have led international efforts to make China accountable for its human rights violations in Xinjiang. We were the first country to lead a joint statement on China’s human rights record in Xinjiang at the UN, and our leadership has sustained pressure on China to change its behaviour. In October 2023, the UK led another joint statement on Xinjiang at the UN, and at China’s universal periodic review in January the UK urged China to cease the persecution of Uyghurs and allow them genuine freedom of religion or belief and cultural expression without fear of surveillance, torture, forced labour or sexual violence. We have also imposed sanctions and consistently raised China’s human rights violations with the Chinese authorities at the highest levels. The Foreign Secretary last did so with China’s Foreign Minister in February.
On the solar sector in general and the presence of forced labour in solar supply chains, I should first set out the importance of solar energy as a key part of the Government’s strategy for net zero, energy independence and growth. As my hon. Friend said, we are aiming for 70 GW of solar capacity by 2035. The UK has huge potential for solar power, which is a cheap, versatile and effective technology that is a key part of the Government’s strategy for net zero, energy independence and clean growth. It is part of our wider energy mix, and she was absolutely right to reference our strong leadership in offshore wind. We have the first to the fifth largest offshore wind farms in the world, and we are investing in new technologies and, indeed, in our new nuclear capacity, so this is part of a wider mix to get to our net zero future.
On solar, I recently co-chaired the final meeting of the solar taskforce, alongside Solar Energy UK, at 10 Downing Street. In fact, in the solar taskforce—and thanks to the pressure from my hon. Friend—we established a specific sub-group to consider the wide-ranging actions needed to develop solar supply chains that are resilient, sustainable, innovative and free from forced labour. This work will inform the Government’s solar road map, due to be published in the next few months, which will set out the trajectory and actions needed to deploy up to 70 GW by 2035.
One of the main topics of discussion at the solar taskforce was the solar stewardship initiative, which my hon. Friend mentioned. It is a solar supply chain assurance scheme developed, piloted, audited and launched by the UK’s main trade association, Solar Energy UK, working alongside its European counterpart, SolarPower Europe. In fact, the UK Government co-sponsored the development and publication of Action Sustainability’s “Addressing Modern Slavery and Labour Exploitation in Solar PV Supply Chains Procurement Guidance”, to provide further tools to industry to ensure the responsible sourcing of solar panels.
I have been largely pleased to see the response from the industry following our work on this issue, and I am delighted to highlight that, on 28 March, 55 companies and organisations across the solar sector signed a supply chain statement highlighting their commitment to ensuring that the solar sector is free from any human rights abuses, including forced labour, anywhere in the global supply chain. Resilient, sustainable and innovative supply chains are essential to support the significant increases in solar deployment needed to deliver the UK’s ambition for 70 GW of solar capacity by 2035.
Alicia Kearns
I met the chief executive of Solar Energy UK and asked him, “What happens if one of the companies that signs up to your solar stewardship scheme isn’t keeping itself free of slave labour? What will you do?” He did not have an answer for me, and I said, “Well, will you kick them out? Will you exclude them?” He said, “We don’t have a mechanism to do that.” So have things changed in that there is now a mechanism to exclude? How are we making sure that it is actually being audited? The chief executive said that Solar Energy UK is taking a company’s word for it, when one signs up, that it is free from slave labour. Companies are not having to provide any evidence that they are free of slave labour when they sign up for the initiative.
Andrew Bowie
On my hon. Friend’s latter point, there will be more detail on exactly how the auditing process will proceed when we publish the solar road map in the next few months. On her former point, I must be absolutely clear from this Dispatch Box that if a company is engaging in buying pieces of equipment that they knowingly know have been developed using slave labour in Xinjiang, or indeed anywhere else in the world, they should be held to account and they absolutely should not be allowed to remain a part of the initiative. That is absolutely the view of the Department, this Government and, indeed, the wider industry.
The Government already encourage developers to grow sustainable supply chains through the supply chain plan process included in the contract for difference scheme for projects over 300 MW.
Jim Shannon
The Minister referred to 55 companies, and I presume they include companies from Northern Ireland. It is important that we have a policy that affects all of the United Kingdom of Great Britain and Northern Ireland so they are all accountable.
Andrew Bowie
I assure the hon. Gentleman that what we are speaking about and the industry initiatives that I am laying out cover every part of our United Kingdom of Great Britain and Northern Ireland, and if any companies are involved in Northern Ireland, they will of course be covered by the schemes and initiatives and, indeed, by the legislation we have passed to ensure that we get to the root cause and remove slave labour from the supply chain.
The UK has the scope to grow industries that produce innovative solar technology while also crystallising our position as world leaders in cutting-edge solar research and development. In doing so we can create new green jobs and provide levelling-up and significant export opportunities while building up UK capability and resilience and increasing energy security by reducing our reliance on imports. Meanwhile, we support our allies’ efforts to increase and accelerate the diversification of solar supply chains by reshoring manufacturing. We continue to work with countries including the US, Canada and Germany to ensure that access to solar supply chains remains resilient.
My hon. Friend the Member for Rutland and Melton referred to the situation of solar on agricultural land. The Government recognise that in some instances solar projects can affect the local environment. It is important that the Government can strike the right balance between such considerations and securing a clean, green energy system for the future. That is why the planning system is designed to take account of such issues. However, I am aware of the number of issues arising from deployments and planned applications, and I am engaging on the issue with many colleagues and their communities, discussing with them what we can do to ensure that community concerns are listened to.
I again thank my hon. Friend for bringing forward this important issue, and look forward to continuing to engage with her on it.
Question put and agreed to.
Oral Answers to Questions
Andrew Bowie Excerpts(9 months, 3 weeks ago)
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Siobhan Baillie (Stroud) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The civil nuclear road map reconfirmed the Government’s ambition to deploy up to 24 GW of nuclear power by 2050. It sets out plans to make investment decisions about 3 GW to 7 GW every five years between 2030 and 2044.
Kevin Foster
I thank the Minister for his answer. New nuclear holds the key not only to ensuring energy security but to creating thousands of high-skilled, well-paid jobs in the areas where it is located, but too often the planning process can take years, even on sites where there is long-established nuclear use. Has he discussed with ministerial colleagues what can be done to shorten that process significantly?
Andrew Bowie
I can confirm that I have had those conversations, and the Government are exploring the potential for reducing regulatory burdens for the consenting and licensing of new nuclear power stations without impacting safety, security or environmental protections. We are also looking to introduce a range of other streamlining measures, including the action plan for reform, which sets out reforms to the nationally significant infrastructure projects regime.
Trudy Harrison
Will the Minister confirm that Nuclear Decommissioning Authority-owned land adjacent to Sellafield will be made available for new nuclear? More specifically, will enough land be made available to accommodate two 470 MW Rolls-Royce power stations and their ancillary buildings and spaces?
Andrew Bowie
I can confirm that Moorside is indeed a candidate for new nuclear, and it is one of a number of potential sites for hosting civil nuclear projects. Great British Nuclear is currently running a competitive process to select those small modular reactor technologies best able to facilitate operational projects in the 2030s. That said, the project needs to run its course, and I know my hon. Friend will understand that no decision on sites has yet been made.
Karl MᶜCartney
The UK’s first nuclear fusion power plant is due to be built a short 45-minute drive from Lincoln. It will increase energy generation and hopefully limit the amount of agricultural land being used to house solar farms. Will my hon. Friend update the House on the role that institutions such as the University of Lincoln will have in providing research and training for these types of power plants and their associated advanced jobs of the future?
Andrew Bowie
It is indeed a very exciting time for fusion in this country. Our Fusion Futures programme will provide up to £55 million over five years to train more than 2,200 people, helping meet the demands of our growing fusion sector. That will expand our existing fusion training programmes through work with universities such as the University of Lincoln, colleges and employers, and provide a pipeline of highly skilled scientists, engineers and technicians at all career levels, from apprentice to post-doctoral fellow.
Siobhan Baillie
Berkeley has secured incredibly exciting investment in nuclear innovation with a consortium involving Rolls-Royce and the University of Bristol. A low-carbon energy park with international status at Berkeley and Oldbury, next door, go hand in hand as the Severn Edge project. The Government have a good opportunity to meet their energy security ambitions and lead the way. Will my hon. Friend provide assurances that he will work with Western Gateway on Severn Edge? I heard him say that the competition has to run its course, but will the course be run ahead of the summer recess?
Andrew Bowie
My hon. Friend is tempting me. Oldbury is a candidate for new nuclear, and one of a number of potential sites that could host civil nuclear projects. It is exciting and encouraging to see the number of sites and projects coming forward for investment. As I said, the competition has to run its course, and no decision on sites has been made, but it is very encouraging to see such interest across the country in our great nuclear future.
Andrew Bridgen (North West Leicestershire) (Ind)
Nuclear power plants come with a huge up-front capital cost. Even small modular reactors have a considerable price tag, so it is important that the Government get their procurement right for once. Does the Minister agree that SMRs offer possibilities for economies of scale? A large number could be commissioned at once, giving potential savings to the taxpayer while delivering reliable baseload supply to the national grid.
Andrew Bowie
Yes, of course I agree. That is one of the huge benefits, along with many others, of small modular reactors, which is why we are running our down selection programme, and supporting exports from this country to across the world so that other countries can join us on our nuclear journey, investing in small modular, advanced modular and gigawatt-scale projects over the next few years.
Jim Shannon (Strangford) (DUP)
The delivery of nuclear power stations for Northern Ireland is something that I would welcome, but other parties in Northern Ireland might have concerns about it. The one thing that we in Northern Ireland can all agree on is that, as part of this great United Kingdom of Great Britain and Northern Ireland, we must be part of the manufacturing base and procurement process. Can the Minister confirm that the people of Northern Ireland will have that opportunity?
Andrew Bowie
Not only can I confirm that, but I put on record my support to all the companies in Northern Ireland that are already integral to the supply chain for our nuclear sector. Our nuclear revival not only will deliver a more secure, robust and clean energy baseload, but has the potential to create thousands of new manufacturing and supply chain jobs across the country, and I want that to impact positively on every corner of our United Kingdom of Great Britain and Northern Ireland.
Dr Alan Whitehead (Southampton, Test) (Lab)
Contrary to propaganda from the Conservative side, the last Labour Government handed over a detailed nuclear development plan that ran up to 2025, with 10 sites identified for nuclear development, early discussions with nuclear developers, and a plan for a deep and secure nuclear repository. Since then, over 14 years, not one electron of new nuclear power has been produced, Hinkley C is now at risk of further delays and no progress at all has been made on the establishment of a secure storage site for nuclear waste. What assurances can the Minister give that lessons have been learned from that frankly fairly lamentable stewardship of the previous plan, and that the latest plan is set up to deliver?
Andrew Bowie
I have never been accused of propagandising before. It is a matter of pride on the Conservative Benches that every single nuclear project that has ever been completed in this country has been completed under a Conservative Government—it does not look as though that is likely to change any time soon, despite the protestations and near-Damascene conversion of Labour Front Benchers on nuclear over the past few years. We are carrying on with our nuclear revival; we have set out our nuclear road map; and we are encouraging, enthusing and investing in our civil nuclear sector. I am very excited about the progress that we have made and what will take place in the sector over the next few years.
Greg Smith (Buckingham) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The planning policy priority is the effective use of land by directing solar projects to locate on previously developed low-grade land, and it is designed to avoid, mitigate and, where necessary, compensate for impacts on the best agricultural land.
Greg Smith
The Prime Minister was very clear that vast swathes of agricultural land would not be lost to solar on his watch, yet I am seeing thousands of acres across my constituency being built out or proposed for solar—from Kimble Wick to Dinton, Ford to Beachampton, and more—including the latest 2,100 acre abomination in the Claydons known as Rosefield. Good agricultural land that regularly produces wheat harvests of 10 tonnes per hectare, for example, is often falsely graded as 3b because the readings are taken from the headland, not the field. When will my hon. Friend ensure that energy policy does not trump food security, and stop the mass proliferation of agricultural land being used for inefficient solar?
Andrew Bowie
I understand the concern and frustration of my hon. Friend and his constituents. That particular project is at the pre-application planning stage. The application is expected to be submitted to the Planning Inspectorate between January and March 2025. However, as I know he understands, owing to the quasi-judicial role of Ministers in determining applications, it would not be appropriate for me to comment on any specific matters in relation to that project, but I can reassure him that all applications are judged on their individual merits, and I encourage him and all his affected constituents to engage with the planning process at every stage as it continues.
Wera Hobhouse (Bath) (LD)
With all due respect to Conservative Members, who always represent the farming industry, as do we in the Liberal Democrats, farmers are not stupid. They will not take high-quality agricultural land out of production, and that is not happening, so I really worry about the argument being made here. We are far behind our renewable targets for solar, so what incentive can the Government provide to get more, not less, UK solar off the ground?
Andrew Bowie
I can reassure the hon. Lady that the solar taskforce will publish its recommendations imminently, and we have an ambitious target of deploying 70 GW of solar across the UK by 2035.
Dame Karen Bradley (Staffordshire Moorlands) (Con)
Residents in Staffordshire Moorlands are very concerned about a number of planning applications for solar farms and battery storage plants on farmland. They have a number of questions, so can my hon. Friend ensure that small district councils have the appropriate expertise to look at those applications? Can he make sure that proximity to the national grid is taken into consideration, and that when there are a number of applications relating to adjoining pieces of land, those applications are considered as a whole, rather than looked at individually?
Andrew Bowie
I thank my right hon. Friend for her question, and reassure her that we take all those concerns incredibly seriously. I am very happy to meet her and any other Member of Parliament who has concerns about the plans being put forward in their constituency. As I have said, it is really important that everybody—from Members of Parliament through to those in the community who are affected by or have concerns about plans—can engage with the planning process at every stage. We will do what we can to address those concerns while meeting our ambitious target of deploying 70 GW of solar by 2035.
Mr Gregory Campbell (East Londonderry) (DUP)
I am delighted to see you in your place, Mr Speaker. Some people have short memories.
Bearing in mind the difficulties that farmers are facing, particularly those with rocky or infertile land, will the Minister have discussions with his colleagues in the Department of Agriculture, Environment and Rural Affairs to ensure that some of that land is used in ways that maximise the benefit to the farming community, as well as contributing to net zero?
Andrew Bowie
I thank the hon. Member for his question. I can assure him that we are already engaging with the National Farmers Union; indeed, it has been working with the solar taskforce to enable us to work with farmers and understand their concerns. I am very happy to meet farming representatives from all parts of the United Kingdom to determine how we can best support them and reach our net zero objectives by the date we have set ourselves.
Richard Fuller (North East Bedfordshire) (Con)
One of the arguments put forward for a large solar farm on agricultural land in my constituency is that there are limited points of interconnection with the national grid for large solar farm developers wishing to contract with it. Could my hon. Friend the Minister advise me on whether that is the case, and if it is, could he follow up on that, and advise all Members of Parliament on where those limitations exist?
Andrew Bowie
I thank my hon. Friend for his question. Obviously, I do not know the detail of the case he raised, but I am very happy to meet him following questions to look at it in more detail. Despite what I said about the quasi-judicial role of Ministers in planning applications, it is really important that all concerns are addressed and looked at, and that the planning application system is thorough, robust and transparent.
Tim Farron (Westmorland and Lonsdale) (LD)
On land use for food production and achieving net zero, has the Minister done an impact assessment of the rising carbon emissions from the UK Government carrying on with their agricultural policy, which is reducing incentives for farmers to produce food? As a consequence, we will import more food. As things stand, we produce only 60% of the food we eat; importing more and more food will surely increase carbon emissions. Has the Minister looked into that, and done an impact assessment of it?
Andrew Bowie
At the National Farmers Union conference just last week, the Prime Minister reiterated this Government’s commitment to supporting British farmers in their primary role of delivering food for the nation. It would be good to see the Liberal Democrats give their support to British farmers in so forceful a manner. We are absolutely determined to do what we can to support British farmers in continuing to deliver that food—and, indeed, to support the technologies that we need to reach our net zero commitments, which I am led to believe the Liberal Democrats still support.
Grahame Morris (Easington) (Lab)
Alan Brown (Kilmarnock and Loudoun) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The SNP, blinded by a misplaced belief in its own exceptionalism, seems almost alone in the world in not recognising the benefits of new nuclear when it comes to meeting our net zero objectives, delivering our energy security and improving our baseload. At last year’s COP, 30 countries around the world came together to commit to increasing nuclear-generated capacity by 30%. It would be brilliant if Scotland could be part of that change, but the SNP and its luddite partners in the Green party are holding Scotland back. We are determined not to do that for the rest of the UK.
James Wild (North West Norfolk) (Con)
Plans for a new incinerator in Wisbech are strongly opposed by my constituents and those of my right hon. Friends the Members for North West Cambridgeshire (Shailesh Vara) and for South West Norfolk (Elizabeth Truss). With 300 lorry trips a day and a structure bigger than Ely cathedral, there would be serious health and environmental concerns for the nearest school. Will my right hon. Friend the Secretary of State visit the site to see for herself why the plans are wholly inappropriate?
Andrew Bowie
The Secretary of State will be happy to engage with my hon. Friend, and I too would be delighted to visit the site to look into the issues that he has raised.
Rachel Hopkins (Luton South) (Lab)
Cherilyn Mackrory (Truro and Falmouth) (Con)
Earlier this month we welcomed the Prime Minister to A&P Falmouth to meet its workforce and talk about its fantastic submission for funding under the floating offshore wind manufacturing investment scheme to enable the port of Falmouth to support the emerging floating offshore wind sector in the Celtic sea. Can the Minister reassure my constituents that the Government are looking at all the applications with a scrutinising eye to ensure that the supply chain can be built up throughout the south-west?
Andrew Bowie
I can indeed confirm that the supply chain and the manufacturing jobs that will be created through our investment in floating offshore wind will benefit every community in the United Kingdom. No decision has yet been made on FLOWMIS, but one will be made imminently.
Sir Mark Hendrick (Preston) (Lab/Co-op)
Trudy Harrison (Copeland) (Con)
We have made huge progress in decarbonising our electricity sector, but decarbonising transport and heat is much more tricky. Will the Minister encourage our plans in Copeland to harness any power that can be obtained from new nuclear for that purpose, and will he meet us so that we can discuss those plans?
Andrew Bowie
I should, as ever, be delighted to meet my hon. Friend, and very happy to discuss the opportunities that are opening up for her community and others throughout the United Kingdom. Indeed, I have visited her constituency and observed for myself the huge enthusiasm for new nuclear, as well as the additional benefits that it can bring to the wider energy sector.
Dame Nia Griffith (Llanelli) (Lab)
The potential loss of 2,800 jobs at Tata Steel in Port Talbot is devastating for workers and their families, with possible knock-on effects for Trostre in Llanelli. As well as investing in the electric arc furnace, will the Government commit themselves to primary green steelmaking in the UK to preserve our security and our jobs?
Civil Nuclear Road Map
Andrew Bowie Excerpts(10 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a pleasure to see you in the Chair this afternoon, Madam Deputy Speaker. I commend my hon. Friend the Member for Folkestone and Hythe (Damian Collins) on securing this important debate, and on the speed at which he was able to secure it, given that it was only a month and a half ago that I was standing at this Dispatch Box and publishing the nuclear road map. He is absolutely right to seize the opportunity presented in the civil nuclear road map, and I commend him for his consistent efforts on this agenda and for championing his constituency. I was grateful to visit Dungeness last year with my hon. Friend. I saw the strong local support for that site as a potential future location for a small modular reactor. I very much enjoyed my trip to the local pub and the fish and chips—should that be fission chips?—that we were served following our visit to the reactor.
The UK already delivers high-quality apprenticeships in the nuclear sector. We recognise the need to increase the number of apprentices to ensure that the nuclear sector can keep up with demand, without compromising the quality of training or career opportunities. The value of energy generation to communities around the country is an essential part of the discussion.
A month on from the publication of the civil nuclear road map, I am pleased to be discussing it here today. The Government are focused on creating a stable, secure and clean energy supply for the country. The publication of the road map sets out plans for the great nuclear revival of this country. As my right hon. Friend the Member for Ludlow (Philip Dunne), who has been a consistent champion of this, pointed out, nuclear plays a key role in our drive towards net zero. That has been recognised not only by this country but at COP by 30 other countries around the world, who came together to pledge to increase their nuclear generating capacity by 30% so that we can take concrete action on the biggest challenge of our time, which we all agree is climate change.
Nuclear power generation is a low-carbon, proven technology that will play an important role in making our energy system more resilient and less polluting. We have set out this expansion with quantifiable aims. We want to achieve up to 24 GW of nuclear power generation by 2050, which is four times what we currently produce. That ambition will require us to deploy a range of technologies from large-scale gigawatt reactors to small modular reactors and, coming down the stream, advanced modular reactors. On the first of those technologies, I am pleased to say that we are making incredibly good progress. Since the subject was last raised in the House on 11 January, the Government have made available a further £1.3 billion for the construction of Sizewell C. That brings the total Government investment available for the project to £2.5 billion.
Beyond Sizewell, we have committed to a pragmatic approach to nuclear deployment. As set out in the road map, that means committing to explore a further large-scale nuclear project beyond Sizewell. [Interruption.] I will not give way. I will address the comments made in the debate further on in my speech. I am conscious that we have another debate to get to, and I do not want to take up any more time for that debate; we are already eating into it.
On SMRs, we have set up Great British Nuclear, an arm’s length body responsible for helping to deliver new nuclear projects. In 2023, GBN launched a technology selection process for SMRs—it has been referenced—with the aim of identifying the technologies best able to reach a project final investment decision in the next Parliament, potentially releasing billions of pounds of private and public investment. In October, Great British Nuclear announced the designs of six technology vendors it had selected to proceed to the next stage of the process. I assure right hon. and hon. Members that the next stage of the competitive selection process will be launched shortly. The ambition is to announce this year which of the six companies the Government will support.
Importantly, whatever the technology, the nuclear programme requires new sites to enable construction within the decade. The Government’s plans, published last January, set out how we will achieve the expansion in the coming years. My hon. Friend the Member for Folkstone and Hythe will know from the road map that, in order to reach our destination of up to 24 GW by 2050, we have proposed a new approach to siting nuclear power stations, which will empower developers to identify sustainable sites.
The current national policy statement for siting nuclear power stations deployable before the end of 2025 lists potential locations for nuclear sites. Our new national policy statement for beyond 2025 aims to enable developers to identify sites that best match their technology. To open up more siting opportunities and facilitate longer-term market development, an updated, robust site assessment criteria will ensure that only those sites that are suitable for a new nuclear programme progress through the planning system.
While I am afraid that we cannot today speculate on the location of these new nuclear sites, we will pave the way for new nuclear sites in the UK to be made possible by this new nuclear siting national policy statement and civil nuclear road map. I suggest to my hon. Friend and any others who are rightly looking to the job creation and economic benefits of new nuclear sites that my Department shares their eagerness to confirm these projects, and we will share news of them as our consultation progresses.
I know that red tape and over-cautious regulation have slowed the progress of many construction projects in this country. However, I urge that cautious planning and adherence to correct procedure are a necessity when, after all, we are here discussing nuclear power. This is a slow process, because it is a diligent one, and it should be a diligent one. I will not make any promises today about the location of new nuclear sites, but my hon. Friend and others can be certain that community engagement will be central to the development of any new sites, and my Department is working to deliver that.
My hon. Friend the Member for Mole Valley (Sir Paul Beresford) talked about new technologies. In January, I launched the alternative routes to market for new nuclear projects consultation, which aims to explore what steps can be taken to enable different routes to market for advanced nuclear technology and the uses and potential benefits they can provide to the UK economy when they do not need the support of the British taxpayer. The consultation will end on 12 April, and we are seeking responses to support the development of policies that will allow the nuclear industry to thrive. Expanding our nuclear power generation will benefit every community in the country with clean, reliable power, but it is the communities that host these new nuclear sites that will see that benefit most directly.
The skilled workforces that exist around our existing nuclear sites will, I expect, be an important consideration for those looking to develop new nuclear reactors. We expect that the nuclear sector workforce in the UK will need to double in the next few decades in response to the challenge. We recognise that we cannot close the skills gap without urgent collaborative action. We have worked with the Ministry of Defence and will soon launch the nuclear skills taskforce, of which I am incredibly proud. It will set out the action needed to ensure that the UK’s nuclear sector will have sufficient and appropriate nuclear skills to deliver our civil and military nuclear ambitions.
Andrew Bowie
I will not, because I do not want to eat into the time for the next debate. The taskforce will set out our aims and ambition, and the work involves close co-ordination with industry, across civil and military, to turbocharge the work already happening to develop the skills we need. We look forward to seeing the taskforce’s final recommendations very soon.
Right hon. and hon. Members raised extensive points about the road map. I have been advised that we want to give time for the next debate, so I will not be able to address them all today. However, I promised the hon. Member for Kilmarnock and Loudoun (Alan Brown) that I would come back to his points on Hinkley Point C and Sizewell. Hinkley Point C is not a Government project. EDF Energy is responsible for its delivery. Additional costs will not fall to the taxpayer, despite what hon. Members might read in the press.
Sizewell C will be a crucial part of the UK’s agenda for new nuclear power. As I said, we have made available a total of £2.5 billion to support the project’s development. Last year, the Government and Sizewell C started the process to bring in private equity, backed by our new regulated asset base model for nuclear, in which we have considerable confidence. The hon. Member claimed that the RAB would not deliver. It was established as an option for funding new projects, following recommendations by the National Audit Office. The most appropriate funding models will be determined by negotiations with project developers on a project-by-project basis. As I said, we have full confidence in that.
I will write to the other Members who took part in this debate to address their points, because important points were raised, but I do not want to eat any more into the time for the next debate. We have published three key documents, which reinforce the UK’s position as a leader in the civil nuclear renaissance: a civil nuclear road map, a consultation on alternative routes to market, and a consultation on proposed policy for siting new nuclear power stations. The UK needs to increase the resilience of its energy supply while reducing its emissions. For that reason, nuclear power is a source of real optimism. The continued work of my Department and Great British Nuclear will ensure that the UK has a world-leading nuclear power industry. I am very glad to work with my hon. Friend the Member for Folkestone and Hythe as we turn this plan into a reality.
Draft Nuclear Decommissioning Authority (Pension Scheme Amendment) Regulations 2024
Andrew Bowie Excerpts(10 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I beg to move,
That the Committee has considered the draft Nuclear Decommissioning Authority (Pension Scheme Amendment) Regulations 2024.
It is a pleasure to serve under your chairship this afternoon, Dame Maria. The regulations were laid before the House on 19 December 2023.
Lord Hutton’s 2011 report into public sector pensions fired the starting gun on a long process of reform. While the Public Service Pensions Act 2013 made wide-ranging and important changes, it did not cover all public sector bodies, including those within the Nuclear Decommissioning Authority group.
The NDA was created in 2005 as the statutory body responsible for the decommissioning and safe handling of the UK’s nuclear legacy. It has 17 sites located across the UK, including Sellafield in Cumbria, the world’s first civil nuclear power station. That means that Sellafield and many parts of the NDA’s other sites pre-date the formation of the NDA by several decades, leading to a complicated set of pension arrangements, including two pension schemes closed to new entrants in 2008 that provide for final salary pensions, which are in scope of the reforms. These are the Combined Nuclear Pension Plan and the Site Licence Company section of the Magnox Electric Group of the Electricity Supply Pension Scheme.
The complexities of the schemes clearly required tailored reforms, which is why in 2017, the Department for Business, Energy and Industrial Strategy and the NDA worked with trade unions to agree a reformed pension scheme that maintained valuable benefits for its members while bringing it into line with the rest of the public sector. The result was the proposal of a bespoke career average revalued earnings, or CARE, scheme.
In terms of timing, before bringing forward the provisions we required primary powers in the Energy Act 2023 before secondary legislation could be brought forward. I appreciate that the process has taken rather longer than hoped, but we are confident that the reform will yield financial savings, bolstering the NDA’s mission of responsibly decommissioning the UK’s nuclear legacy.
Following statutory consultation with NDA employees and a ballot of union members, the CARE scheme was formally accepted by the trade unions. A formal Government consultation was launched in May 2018, with the Government publishing a response to the consultation in December 2018, confirming the proposed changes. Now, thanks to primary powers introduced in the Energy Act 2023, we are able to bring secondary legislation forward.
The reformed scheme offers excellent benefits to its members. Unlike most other reformed schemes, it still includes provision for members to retire at their current retirement age. For nearly all, that will be 60—most other public sector pension schemes only allow a full pension at 67. Once the CARE scheme is introduced, contributions will increase on average by 3.05%, phased in over three years.
A statutory framework that applies pension benefits across the NDA estate meant that specific legislation was needed to implement this reformed scheme. This secondary legislation is being made to require NDA and Magnox Ltd to amend the relevant NDA pension schemes and implement this CARE-based pension reform. It will also modify the statutory pension protections contained in the Energy Act 2023 and the Electricity (Protected Pensions) (England and Wales) Pension Regulations 1990, in support of the reforms.
These measures will make the NDA group’s final salary pensions fairer and more efficient by aligning them with wider public sector pensions. They will also deliver crucial savings to the NDA budget at a time when it is needed, more than ever, to support the decommissioning of this country’s proud nuclear legacy.
Andrew Bowie
I thank the shadow Minister and my hon. Friend the Member for Amber Valley for their questions. The hon. Lady asked about the time it has taken for us to bring the changes forward. She is absolutely right: it is sub-optimal that it has taken this long. Having met the unions in the latter part of last year, I am aware of the concern and the not inconsiderable worry caused by how long it has taken us to bring this forward. However, we did need to wait for parliamentary time and the actions that we brought forward through the Energy Act to allow us to make the changes required to bring the NDA’s pension schemes into a much better place than where they were.
It should be recognised that the pension is very good. Allowing a full pension award at 60 for the majority of members when most public pensions are linked to a state retirement age of 67, as my hon. Friend the Member for Amber Valley mentioned, was a considerable win for workers at the NDA and something we are proud to have achieved. It means that the Nuclear Decommissioning Authority—a vital part of our effort to maintain a safe, sustainable nuclear estate in this country—will continue to be attractive to the best and brightest. We all agree that that should be an ambition.
The NDA will, of course, continue to engage extensively in communicating the reform to employees affected by the changes and the trade unions that provide representations across the NDA group. Of course we are always happy to look at the impact of the changes once they have been implemented. There is the ability after the implementation of this secondary legislation to make changes to how the schemes operate.
Kerry McCarthy
Did the Minister address the point about the £200 million savings or did I miss that?
Andrew Bowie
No, the hon. Lady is absolutely right. Sorry, I had forgotten that she asked. There will be significant savings, of course, for the NDA and that is a good thing. We have reached a good settlement on the new pension scheme. It is a good pension for members. We will continue to attract the brightest and best into the organisation and give people certainty about where they are going to be when they hit retirement age, while providing significant savings for the Nuclear Decommissioning Authority, which will allow it to carry on with its important work for this country, at Sellafield and the other nuclear sites in which it is engaged across the UK. That work is only set to grow, by the way, as more of our civil nuclear fleet reaches the stage of having to consider moving into decommissioning mode. The NDA’s work is about to increase exponentially so the savings made by the changes will be important and allow it to do more and do it effectively.
The Government remain committed to ensuring that pension schemes are fair, efficient and in line with the wider public sector. The regulations are essential to the successful implementation of a CARE-based pension reform of the NDA group. Crucially, they preserve commitments to excellent benefits, including provisions for members to retire at the current retirement age. They also yield financial savings that will be used to bolster the NDA’s mission of responsibly decommissioning the UK’s nuclear legacy. I urge the Committee to support the draft Nuclear Decommissioning Authority (Pension Scheme Amendment) Regulations 2024.
Question put and agreed to.
2.41 pm
Committee rose.
Springfields Nuclear Site
Andrew Bowie Excerpts(10 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I am today laying a new designation direction in respect of the Springfields nuclear site. This amends the existing designation direction. This power has been exercised in accordance with section 5(4) of the Energy Act 2004, with the consent of Springfields Fuels Ltd (SFL).
This amendment enables new uranium conversion capabilities to be developed at Springfields, work on which should be delivered by the end of the decade. This is in line with HMG’s commitment in the nuclear road map and is a key part of reducing international dependence on Russian fuels.
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