Energy Bill

Debate between Baroness Verma and Baroness Parminter

Monday 28th October 2013 Lords Chamber

[Baroness Verma]

My Lords, I am grateful to my noble friend Lady Parminter for raising the matter of electricity interconnection, which the Government agree is an important area given the range of potential benefits. Through my notes I will also be able to answer my noble friend Lord Caithness’s two questions.

We have previously considered the amendment in Committee. The Government considered the arguments made and, earlier this month, committed to publishing a policy statement on electricity interconnection by the end of 2013, well in advance of the date which my noble friend’s amendment would require. This will set out our support for increased interconnection that is appropriate and economic. My noble friend will be aware that the Government also recently supported a number of interconnection projects to become projects of common interest under the EU regulation on guidelines for trans-European energy infrastructure. The UK Government support that regulation and its intention to accelerate completion of the internal energy market by facilitating cross-border energy infrastructure. Five GB electricity interconnection projects have been selected as projects of common interest under the regulation, including with France, Belgium and Norway. They will enjoy streamlined planning procedures and, where appropriate, a mechanism to agree cross-border cost allocation. They will also be eligible to access financial instruments such as loan finance, grants for feasibility studies and, potentially, grants for work under the Connecting Europe Facility, which has a pot of €5.1 billion over seven years. Four renewable generation projects located in Ireland, with potential to develop into interconnection, were also selected as projects of common interest. This brings the combined capacity of all potential interconnection projects currently in the pipeline to more than 12 gigawatts. My noble friend will also have seen our proposals for how interconnected capacity may be able to participate in the capacity market from 2015. We are currently working proactively on the details of this proposal and we will welcome further engagement with stakeholders to try to make this possible.

I also highlight work being undertaken by Ofgem to develop a supportive approach to interconnection. Ofgem is developing a new cap and floor regulatory approach for interconnection for application to the proposed Project NEMO between GB and Belgium. The Government are confident that this approach, if extended, will promote investment in interconnection. However, as the cap and floor approach looks to consumers potentially to take on some risk, it is important that careful consideration is given to its application. We are working closely with Ofgem as it takes forward its wider Integrated Transmission Planning and Regulation project, considering the need for enhanced planning or strategic evaluation of future interconnection. Ofgem is also working to ensure that GB electricity prices reflect scarcity to a greater extent. As interconnection developers invest on the basis of price differentials on either side of the link, this is likely to make investment more attractive.

I hope noble Lords will appreciate that, following Committee, the Government have made a public commitment that will satisfy the intention behind this amendment, and do so sooner than the amendment itself would require. I therefore hope that my noble friend will be reassured and will feel content to withdraw her amendment.

[Baroness Parminter]

I thank my noble friend the Minister for that very fulsome reply, for the way in which she has outlined the Government’s commitment to interconnection and, in particular, for the policy statement—which is probably civil servant speak for “strategy”—or as near as we are going to get it. I thank all my colleagues around the House for their support. I think they have done a great job in actually persuading the Government to move a bit on an issue in this Bill. I am grateful to the Minister for having an open-door policy and for having listened to us on this important issue, which will make our approach to the Energy Bill and how we secure energy in the future better. On that basis, I beg leave to withdraw the amendment.

Climate Change

Debate between Baroness Verma and Baroness Parminter

Thursday 25th April 2013 Lords Chamber

[Baroness Verma]

My Lords, I could not have put it more eloquently.

[Baroness Parminter]

My Lords—

--- Later in debate ---

[Baroness Verma]

My Lords, we know that there is science out there that tells us climate change is taking place and we really need to take that science very seriously.

[Baroness Parminter]

Given the recent defeat of the backloading of the emissions trading scheme, will the Government now support a renewables target post-2020 as a proven way to secure investment and achieve climate change objectives?

[Baroness Verma]

My Lords, the Government are doing a lot towards ensuring that we achieve our renewables targets. Through the processes that we have engaged in, we are making a lot of progress.

Arctic Report Card

Debate between Baroness Verma and Baroness Parminter

Monday 28th January 2013 Lords Chamber

[Baroness Verma]

The noble Lord is of course right that we need to take action. I am pleased to say that this Government are taking action and working very hard with all partner countries to ensure that this global issue is tackled with a global response.

[Baroness Parminter]

My Lords—

--- Later in debate ---

[Baroness Verma]

My Lords, the fact of the matter is that we will need supplies of oil for the near future. Although we work very hard with our partner countries to ensure that everything is done in an environmentally safe way and with consideration to the environment and locations, we cannot dictate to the Arctic states or to the Arctic Council how they progress with their drilling. However, we know that they take the issue very seriously and are very environmentally effective when it comes to the security and safety of how they drill.

[Baroness Parminter]

What global greenhouse-gas emissions stabilisation levels do the Government believe will be necessary to protect Arctic summer sea ice for the remainder of this century? In asking this question I also congratulate the Government on the launch today of the Green Deal, which will help reduce greenhouse gas emissions from British homes.

[Baroness Verma]

My Lords, I thank my noble friend for mentioning the Green Deal, which will of course help very much in how we respond individually to a very serious issue. Greenhouse gases are the key cause of climate warming. We have invested heavily in research to ensure that, working with Defra, we have many ways of responding to the climate change which is happening around us and to ensure that other countries are working with us in that response.

Energy: Shale Gas

Debate between Baroness Verma and Baroness Parminter

Wednesday 17th October 2012 Lords Chamber

[Baroness Parminter]

My Lords, fracking to extract shale gas uses enormous quantities of water, three-quarters of which remains down the wells. Given that the overabstraction from our rivers is already causing huge problems, what can the Minister tell us about the consideration that is being given to water resources in determining our future energy policy?

[Baroness Verma]

My Lords, my noble friend is right to raise her concern, and I hope that I can reassure her that any abstraction of water for industrial purposes is subject to control by the Environment Agency or by corresponding bodies in Scotland and Northern Ireland. The agencies will not permit additional abstraction in any area if they consider that it is not sustainable.

Energy: Hydropower

Debate between Baroness Verma and Baroness Parminter

Wednesday 10th October 2012 Lords Chamber

[Baroness Verma]

My Lords, I will have to dust down the report because I have not yet sighted it. I reassure the noble Lord that there will be opportunities coming up early in the new year as regards consultation and reviews of what we are carrying out. That would be a most appropriate time to raise concerns or issues.

[Baroness Parminter]

Given that renewable energy delivers green economic growth and energy security, will the Minister outline how important hydropower is in delivering the Government’s renewable energy obligations?

[Baroness Verma]

My Lords, hydropower is an important part of the renewable energy mix and currently contributes around 15% of the renewable generation capacity in the UK. There is further potential for hydro schemes but it is limited by size. However, we still estimate that there is a potential to increase the number of small-scale projects to produce an additional capacity of around 1 gigawatt.