Planning and Infrastructure Bill

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Khan of Burnley
Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, Amendment 82B from my noble friends Lord Offord of Garvel and Lord Roborough would require the Secretary of State to report on the impact of this Bill on the UK’s long-duration electricity storage capacity. It is both reasonable and necessary. The new clause in Clause 25 makes reference to a scheme designed to encourage the development and use of long-duration electricity storage installations, but, as with any major intervention in our energy system, it is essential that we couple ambition with accountability. That is precisely what this amendment seeks to ensure.

The case for energy storage is seemingly clear. All sides of this Committee recognise the need to address the intermittency of renewable sources, particularly wind. Storage is seen as part of that solution, but we must be realistic about the scale of the challenge. We are often told that battery storage will save us; that it will plug the gap when the wind does not blow. But let us look at the numbers. The UK’s average daily electricity demand is 780 gigawatt hours. Our current battery storage capacity is roughly 12 gigawatt hours, which would keep the lights on for approximately 30 minutes. Globally, total battery storage is around 369 gigawatt hours—enough to power the UK for barely a day. This is not to dismiss the importance of innovation nor the promise of new technologies but to say we must deal in facts. We must measure progress and we must understand whether the scheme we are legislating for is delivering results. The requirement to report to Parliament on the impact of this Bill in this crucial area is not bureaucracy; it is oversight and it is responsible governance.

I now turn briefly to Amendment 82A, tabled by my noble friend Lord Fuller, which addresses the important and growing issue of fire safety in relation to long-duration electricity storage systems. However, I should say not all long-duration energy storage systems—and I think I can probably justify squeezing in another Welsh reference here to First Hydro’s schemes at Dinorwig and Ffestiniog power stations and the proposed Dorothea pump storage scheme, none of which will cause safety or fire issues.

As we move towards decarbonising our energy grid and increasing our reliance on renewable sources, long-duration energy storage is set to play an increasingly central role in stabilising supply and ensuring resilience. These technologies, whether battery-based, thermal or otherwise, are argued to be essential to the UK’s clean energy future. But with innovation comes responsibility, and we must be alert to the safety implications that accompany some of these new forms of infrastructure.

Amendment 82A rightly recognises that some forms of long-duration energy storage, particularly those involving large-scale batteries or other flammable components, pose inherent risks, especially in the event of fire. These are not theoretical concerns. We have seen incidents, both here and internationally, where energy-storage sites have suffered fires that require significant emergency service intervention and in some cases posed serious threats to nearby communities. This amendment seeks to introduce a sensible precaution that proposals for such technologies should be developed in consultation with the local fire and rescue authority. This would help ensure that any fire risks are assessed and mitigated early in the planning process and that emergency services are properly informed and prepared should an incident occur. As we roll out more of these systems in urban and rural settings alike, that reassurance will be crucial not just for planning authorities and operators but for the public.

This is a pragmatic and proportionate amendment. It reflects legitimate public concern and supports our wider objectives without compromising safety. I look forward to hearing the Minister’s response and, I hope, his assurance that public safety and fire risk will remain at the forefront of policy and operational planning as we deliver the energy infrastructure of the future.

Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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My Lords, Amendment 82A, tabled by the noble Lord, Lord Fuller, seeks to require long-duration electricity storage—LDES—operators to consult local fire authorities to assess the project’s fire risk before installation. I want to assure the noble Lord that this Government take fire safety extremely seriously, but we do not feel this amendment is necessary or proportionate, and it risks unintended consequences. I personally want to say to the noble Lord that, since fire has come from the Home Office into MHCLG, I have the ministerial responsibility for fire, and the noble Lord is welcome at any time to drop me a line to discuss anything related to this point or any concerns around fire safety.

The Health and Safety Executive regulates battery-energy storage system—BESS—sites within a robust framework that mandates battery designers, installers, and operators to uphold high safety standards. Our planning practice guidance encourages developers of BESS sites to engage with local fire and rescue services prior to the submission of their planning application and to consider the National Fire Chiefs Council’s guidance, so that matters relating to fire safety can be considered at the outset. However, we are going to go further than this. The Government are considering additional measures to enhance the regulation of the environmental and safety risks of BESS. Defra recently published a consultation on proposed reforms to environmental permitting for industry, including the principle of including BESS in scope of the environmental permitting regulations. This would give further safeguards for both people and the environment.

This amendment would add burdens to local fire and rescue services. Further changes to the long-duration electricity storage cap and floor scheme would add complexity to the system, which would lead to increased cost and time for the applicant. I hope that the noble Lord, Lord Fuller, is satisfied with my response, and I kindly request he withdraws his amendment.

Amendment 82B, tabled by the noble Lords, Lord Offord of Garvel and Lord Roborough, requires the Secretary of State to report to Parliament on the impact of the Planning and Infrastructure Act on the UK’s long-duration electricity storage capacity within five years of it being passed. I want to assure the noble Lords that this Government are committed to monitoring the development of the UK’s long-duration electricity storage capacity, as well as our wider clean power 2030 ambitions. Ofgem is proceeding at pace with the delivery of the first window of the cap and floor regime, and expects to announce final decisions on successful projects, in both the 2030 and 2033 delivery tracks, in the second quarter of next year. Ofgem will remain closely involved in monitoring delivery of those projects, and information on their features and progress will of course be made public at the appropriate stage, as they would be for any other major generation projects.

The Government publish statistics on the UK’s electricity storage capacity annually in the Digest of UK Energy Statistics—DUKES. This currently includes pumped storage hydro and grid-scale batteries. Other types of LDES will be added to the publication when they become operational. The Government also have a statutory duty to report on their carbon budget progress under the Climate Change Act 2008. For instance, the Act requires the Climate Change Committee to provide an annual report to Parliament on the UK Government’s progress in reducing greenhouse gas emissions, and we would expect future reports to include all relevant and significant developments in this regard, including those on delivery of the LDES cap and floor. The Government have a statutory duty to lay their response to the Climate Change Committee’s progress report before Parliament.

Given these existing monitoring and reporting commitments, this amendment to create additional reporting requirements is not necessary. I trust that the noble Lords, Lord Offord and Lord Roborough, are satisfied with our responses and I therefore kindly ask them not to press their amendments.

Planning and Infrastructure Bill

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Khan of Burnley
Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, this group of amendments relates to the development and implementation of local area energy plans. The proposals raise important questions about the role of local authorities in our transition to a decarbonised, secure and efficient energy system. We have heard some thoughtful contributions about the tensions between local and central government, but also of the enormous potential when the right balance can be struck between the two.

Let me begin with Amendment 90, in the name of the noble Earl, Lord Russell, which would require all local authorities to prepare and publish local area energy plans. These plans would outline current and future energy needs and the decarbonisation pathways to meet them. The underlying intent here is one we can all recognise. The energy transition cannot be delivered only centrally; local authorities must have a clear understanding of their energy demands and the means to meet them sustainably. The noble Earl, Lord Russell, made a number of good points, reinforced by the noble Lord, Lord Hunt of Kings Heath, on which we might all agree in principle.

However, while we acknowledge the ambition behind this amendment, we would caution against placing an additional statutory duty on all local authorities, particularly at a time when many face stretched resources and competing priorities. A blanket requirement risks creating a burden of compliance that may prove challenging for councils already struggling with core service delivery. We must ensure that our expectations of local government are realistic, proportionate and backed with adequate support.

Amendment 177, tabled by the noble Lord, Lord Ravensdale, seeks to define the consultation and approval process for local area energy plans and mandates the provision of guidance to assist local authorities in their preparation. We recognise the positive intention here to provide clarity, consistency and technical support to authorities seeking to engage with this important agenda. This amendment also aims to widen the uptake of such planning and to define better the role of local authorities in delivering the future energy system. Those are commendable aims. While we must avoid onerous procedural hurdles or risk diverting local effort away from practical delivery into process-heavy reporting, we hope the Minister will consider this amendment carefully.

In conclusion, these amendments rightly draw attention to the importance of empowering local authorities in the energy transition. I welcome the debate and the ideas put forward, but urge a cautious, pragmatic approach. I look forward to the Minister’s response and any reassurances he can give on the Government’s direction in this space.

Lord Khan of Burnley Portrait The Parliamentary Under-Secretary of State, Ministry of Housing Communities and Local Government (Lord Khan of Burnley) (Lab)
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My Lords, I start with Amendments 90 and 177, which relate to local area energy plans. I thank the noble Earl, Lord Russell, the noble Baroness, Lady Bennett, and the noble Lords, Ravensdale and Lord Hunt of Kings Heath, for tabling these amendments.

Amendment 90, tabled by the noble Earl, Lord Russell, seeks to require all local authorities and combined authorities to produce a local area energy plan. The Government are committed to working in partnership with local government, in recognition of the essential role that local places play in accelerating to net zero and supercharging our mission to deliver clean power by 2030. We recognise that, in support of this role, some local authorities have already produced local area energy plans and have used them to plan for the investment they need to support the energy transition and deliver net zero in their areas. We welcome the work that many local authorities have undertaken to develop and deliver their local energy plans. Local authorities may well be considering how planning their future energy needs may form part of their local growth plans or help contribute to Ofgem and NESO’s work on regional energy strategic plans.

However, this is not the right time to place further burdens on local authorities, while the approach to energy planning is still under development. We are considering how these plans might align with a range of regional and national plans, including the regional energy strategic plans, the warm homes plan, heat network zoning and Great British Energy’s local work. With that in mind, we continue to consider the potential benefit of local net-zero plans, working with partners across central and local government such as the local net-zero hubs, Great British Energy, NESO, Ofgem and Innovate UK.

We are also learning from the work of several local authorities in England which have already undertaken to develop their own plans, in recognition of the important lessons that can be learned from local authorities. In the meantime, local authorities that wish to assess whether energy planning fits with their wider strategic plans can access a range of support to help them develop local plans, including the tools and advice available on the Net Zero Go digital platform, supported by the department and the advice and support available to them from their local net-zero hubs.

Shared Prosperity Fund: Wales

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Khan of Burnley
Wednesday 4th December 2024

(9 months ago)

Lords Chamber
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Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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My Lords, I add my congratulations to the Wales women’s football team on reaching the Euro 2025 finals.

My noble friend makes a very important point. Having worked alongside her for many years, I have deep respect for her passion for the prosperity of local government in Wales. This Government know that uncertainty about local allocations is causing concern for our partners in local government. My department is working tirelessly to confirm local allocations and we intend to publish them shortly. I am pleased that we have been able to announce that the fund will continue for a further year. This transitional arrangement will provide a period of stability in advance of wider local growth funding reforms beyond March 2026, when we will work with the Welsh Government to honour our manifesto commitment to return decision-making on these funds to representatives of Wales.

Baroness Bloomfield of Hinton Waldrist Portrait Baroness Bloomfield of Hinton Waldrist (Con)
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My Lords, llongyfarchiadau i chi on bringing football into this Chamber—a rare event these days, of course. The shared prosperity fund was a central part of the Conservatives’ levelling-up agenda, which involved the allocation of funds to elected local authorities, which know their communities best. Given that the shared prosperity fund already works with local authorities throughout Wales, what benefit will be achieved by extending decision- making powers to Senedd Members, who are not always known for their sensible financial decision-making?

Lord Khan of Burnley Portrait Lord Khan of Burnley (Lab)
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My Lords, I politely disagree with the noble Baroness. The previous Government funded many local growth programmes, including the UK shared prosperity fund. However, they did not make adequate provision in the Budget to do so. This Government have been clear that they will take the difficult but responsible decisions to ensure we fix the foundations of our country’s finances and, more importantly, meet the commitment in our manifesto. From March 2026, we will work with our Welsh Government counterparts to ensure that the allocation of that money is decided by people in Wales.