Oil and Gas Overlaps: Offshore Wind Projects

Claire Coutinho Excerpts

Friday 24th May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

The North Sea Transition Authority has announced three tranches of licences from the 33rd oil and gas licensing round. Production from these licences will support our world-class oil and gas industry and help maintain the UK’s energy security. Data published by the Climate Change Committee shows that the UK will continue to need oil and gas, alongside abatement technologies, even when we reach net zero in 2050.

A number of licences from the third tranche of the 33rd oil and gas licensing round have direct overlaps with, or come within 500 metres of, areas which are already under agreement for offshore wind development. It is important to note that the oil and gas licences grant exclusivity to explore the licence area, but they do not confer consent for any operational activity. This would require separate consents from the North Sea Transition Authority.

Oil and gas developments and offshore wind developments already co-exist and my expectation is that they will continue to do so. Oil and gas developers and offshore wind developers are already expected, through their respective consenting and stewardship processes, to take account of other projects when planning their developments.

To give greater reassurance to affected offshore wind developers that oil and gas licensees will take account of their developments, and to promote co-existence, the North Sea Transition Authority has introduced a new clause in relevant licences following discussions with the Crown Estate and Crown Estate Scotland. The new clause will require the oil or gas licensee to have a co-location agreement with the affected offshore wind developer in place before any operational activity can take place in that licence area, which includes seismic surveying, drilling exploratory wells or installing subsea or surface infrastructure.

Co-location agreements will be the way forward for resolving any issues arising from overlaps and I expect all parties to engage constructively, to act in good faith and to behave reasonably when approaching discussions on co-location. Where there are difficulties in reaching a suitable co-location agreement, the parties should first seek independent mediation or discuss a way forward with the North Sea Transition Authority and the Crown Estate or Crown Estate Scotland.

Some stakeholders have asked about the role of the oil and gas clause in Crown Estate leases in the event an oil or gas developer asks for it to be used. This clause allows the Crown Estates to determine an agreement for lease or lease, in whole or in part, at my request where this is necessary to enable an oil or gas project to proceed. This clause has never been used and no oil or gas developer has ever asked, a Secretary of State to determine an offshore wind lease.

I would like to clarify that there should be no assumption that oil and gas has primacy over offshore wind, or vice versa. In the highly unlikely event that I receive a request from an oil or gas developer to ask the Crown Estates to determine an offshore wind lease, there should also be no assumption that I would agree to do so. In line with previous Government guidance, it would only be used in very exceptional circumstances, only after all avenues for co-existence had been explored and only after appropriate compensation for the offshore wind developer had been assured. For the sake of clarity, I would like to emphasise that co-location agreements will be the primary mechanism for resolving any issues arising from overlaps.

The previous guidance on the oil and gas clause in Crown Estate leases was published in 2014 and I recognise that the oil and gas industry, the offshore wind industry and UK energy policy have all changed significantly since then. My officials will consult with the North Sea Transition Authority, the Crown Estate, Crown Estate Scotland, Scottish Government, the offshore wind industry and the oil and gas industry on appropriate changes to the 2014 guidance in order to incorporate the new requirements on co-location agreements and to reflect wider updates since the guidance was published.

[HCWS504]

Carbon Budgets

Claire Coutinho Excerpts

Friday 24th May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Earlier this week we were proud to be able to announce that we had decided to forgo the option to carry forward any over-performance from the third carbon budget to the fourth carbon budget. Following that, I want to give an update on our progress on delivering against the UK’s world-leading system of carbon budgets.

We are extremely proud to have met, and indeed exceeded all three of the carbon budgets to date. In 2013, the Climate Change Committee said the Government were “not currently on track” to meet the third carbon budget. But our continued delivery of emissions-reducing policies meant that we were in fact able to exceed the target.

When the fourth carbon budget was set in 2011 it was considered by some, including in Government, to be so stretching, that a review point would be needed to see if it was actually achievable. As late as 2019, the Climate Change Committee said that “Government continues to be offtrack for the fourth” carbon budget. But again, with continued policy delivery, the UK is now on track to more than exceed the fourth carbon budget. And a future Minister will have to make a decision, like the one we announced earlier this week, as to whether to carry forward that over-delivery.

The fifth carbon budget goes further still in reducing emissions. But since that was set, we took the decision to move to net zero by 2050 target. That means we will have to significantly overdeliver on the fifth carbon budget. And our own plans show that we are indeed on track to overdeliver yet again.

Ministers took decisions on the level of the sixth carbon budget (CB6) in March 2021. This was the first net zero-aligned carbon budget and so requires an even more challenging level of emissions reduction. We are still more than eight years away from the start of the sixth carbon budget period and more than 13 years away from the end of it—despite which, we have around 300 policies in place to deliver emissions reductions required over the sixth carbon budget period, with around 200 of these having quantified savings associated with them. The most recent assessment showed that 90% of the savings required to meet the CB6 target are covered by quantified policies.

The UK has reduced emissions further and faster than any major economy, becoming the first to halve its emissions against the 1990 baseline, and we remain steadfastly committed to net zero. This is a record of which we are immensely proud, and indeed a record in which everyone in this country should feel pride.

[HCWS505]

Large-scale Nuclear Power Station: Wylfa

Claire Coutinho Excerpts

Wednesday 22nd May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

In January this Government published the civil nuclear road map, which represented the biggest expansion of nuclear power for 70 years. It set out our ambition for 25% of our power to come from nuclear by 2050.

Since then, the Government have been powering on to deliver the road map commitments. We have launched the next phase of the small modular reactor (SMR) technology selection process, with bidders having until June to submit tenders; announced support to a multi-year programme of work to boost nuclear skills in the UK; and announced £196 million of support for a high-tech nuclear fuel facility in the north-west. We intend to take a final investment decision on Sizewell C before the end of this Parliament.

I am proud that this Government are delivering on their commitments and this statement outlines progress on another of our key commitments: to explore a further large-scale nuclear project.



At the spring Budget, my right hon. Friend the Chancellor also announced that Great British Nuclear had reached agreement with Hitachi to acquire the Wylfa (Anglesey/Ynys Môn) and Oldbury-on-Severn (Gloucestershire) nuclear sites.

Today my Department has published a prior information notice (PIN), exploring building a further large-scale nuclear power station, similar in scale to Hinkley in Somerset and Sizewell in Suffolk. As part of the PIN the Government have indicated that their initial preference is that any such nuclear project should be located at Wylfa. Sitting on the north Wales coast, Wylfa is ideally suited to host a large-scale nuclear project given its proximity to water and nuclear heritage. This announcement has the potential to bring thousands of jobs and investment to the area, boosting the local economy.

This PIN invites interest from all potential large-scale vendors to engage with the Department as it carries out market engagement and builds an understanding of the capacity of the sector to support large-scale project ambitions. The Department will use the information gathered to inform future policy on large-scale nuclear development in the UK. This is an important step in signalling the Government’s intent, and while it is not compulsory for potential vendors to express an interest at this stage, we would encourage all with an interest to do so.

Importantly, I am clear that this announcement does not in any way seek to predetermine outcomes of the ongoing SMR technology selection process, and that indicating the initial preferred use of Wylfa should not preclude access to sufficient site capacity for future SMR requirements.

I am depositing a copy of the PIN in the Libraries of both Houses.

[HCWS494]

Oral Answers to Questions

Claire Coutinho Excerpts

Tuesday 21st May 2024 Commons Chamber

[Kenny MacAskill (East Lothian) (Alba)]

1. What recent discussions she has had with trade unions on the future of Grangemouth oil refinery beyond 2025.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

My Department attended the Grangemouth industrial just transition leadership forum alongside Scotland Office Ministers and representatives of Unite the union on 28 March. We remain in close contact with the Scottish Government and the owner Petroineos. My hon. Friend the Minister for Energy Security and Net Zero met Scottish Government counterparts and Petroineos management on 15 May and raised the importance of working with the unions.

[Kenny MacAskill]

Warm words are one thing; tangible support is quite another. If Grangemouth closes, Scotland faces the possibility—indeed, the probability—of being the only major oil producing nation without refinery capacity, yet €700 million has been found by the UK Government to support an Ineos plant in Antwerp while not a penny is available for Grangemouth. Is it to be a Brexit bonus for Belgian workers and a P45 for those Scots at the refinery?

[Claire Coutinho]

We are working with the Scottish Government and Petroineos to understand all possible options for the future of the refinery. I remind the hon. Gentleman that the Conservatives are the only major party who are backing the North sea, the biddings it brings in each year and the hundreds of thousands of jobs that it supports, while a new report last week showed that Labour’s plan could lose as many as 100,000 jobs in the next five years.

[Henry Smith (Crawley) (Con)]

2. What progress she has made on reaching the Government’s 2050 net zero target.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

We are on track to reach net zero by 2050, and we will do so in a way that brings the public with us. We overachieved on our third carbon budget by 15%, and we announce today that we will not be rolling that over as we think that we will be able to overperform on carbon budget 4 as well.

[Henry Smith]

I congratulate the Government on us being one of the first major economies in the world to set out the ambition for net zero carbon emissions by 2050. What discussions has the Secretary of State had with the Chancellor and the Secretary of State for Transport with regard to a revenue support mechanism for sustainable aviation, as well as ensuring that feedstock for sustainable aviation fuels takes priority?

[Claire Coutinho]

I know from experience that my hon. Friend is a doughty champion for his local area and for the aviation sector. My Department is in regular contact with the Department for Transport and the Treasury on aviation decarbonisation and the important role for sustainable aviation fuel in that transition. On 25 April, DFT published a consultation on options for a revenue certainty mechanism alongside details of the SAF mandate, which together will support both decarbonation and the growth of the sector.

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)]

Tapadh, Mr Speaker.

There are many criticisms of the Government—I am sure they are aware of them—that they are too slow and indecisive about giving signals to the market for particular technologies, which means that, when they need to commission new energy, they are stuck with only one option: gas, which, as we know, is not exactly the way to net zero. What will the Secretary of State be doing to move things a bit quicker and give the market signals as to which energy path the UK will be taking?

[Claire Coutinho]

I remind the hon. Gentleman that we have one of the most remarkable records when it comes to renewable energies. The only country that has built more offshore wind than us is China, we have set out the largest expansion for nuclear, and we are at the forefront of cutting-edge technologies such as fusion, hydrogen and carbon capture.

[Dame Andrea Jenkyns (Morley and Outwood) (Con)]

Meeting our net zero targets, which will be extremely difficult and eye-wateringly expensive, has been enforced on my constituents. Does the Secretary of State agree that we must be more honest and open about the enormous costs of net zero on the British taxpayer? Will the Government commit to publishing a detailed analysis of those costs in advance of my Westminster Hall debate?

[Claire Coutinho]

There is a balance to be struck, which I believe we are striking, in ensuring that we can make the most of the jobs and opportunities of the energy transition, which will support up to 480,000 green jobs in 2030. But, yes, when it comes to additional costs, we are taking a measured approach because we want to protect households.

[Caroline Lucas (Brighton, Pavilion) (Green)]

In the Climate Change Committee’s latest progress report, it was made clear:

“There continues to be an overly narrow approach to solutions, which crucially does not embrace the need to reduce demand for high-carbon activities.”

So when the Secretary of State goes back to the drawing board to revise the Government’s carbon budget delivery plan, as she now must, will she finally reduce the reliance on unproven technofixes and look instead at demand reduction measures—or, following the recent embarrassing judgment from the High Court, is she aiming for a hat-trick, with her Department’s climate plan declared unlawful for a third time?

[Claire Coutinho]

I would find the hon. Lady’s questions more credible if she would at least once welcome the fact that we are the first country in the G20 to have halved emissions. On our progress, I am proud that one of the reasons that we have come so far is technological fixes, because of the remarkable progress that this country has made in renewable energy. That is why we overshot on our first, second and third carbon budgets, and we are on track to overshoot on our fourth.

[Mr Speaker]

I call the shadow Secretary of State.

[Edward Miliband (Doncaster North) (Lab)]

Two weeks ago the Government were found, for a second time, to be in breach of the law over their climate targets. That failure will mean that families across the country will pay higher energy bills. The Court found:

“The Secretary of State’s conclusion that the proposals and policies will enable the carbon budgets to be met was irrational”.

Last time, the Government claimed that their breach of the law was just on a technicality. What is the right hon. Lady’s “dog ate my homework” excuse this time?

[Claire Coutinho]

Let us be clear: the Court did not question the policies that we have set out, which we have done in more detail than any of our peers. It did not question the progress that we have already made, as the first G20 country in the world to halve emissions, and it did not question the ambition of our future targets, which are among the most ambitious of our peers. If the right hon. Gentleman wants to look at what would smother the transition and private investment in this country, he need only look at his own mad, unachievable 2030 target.

[Edward Miliband]

With a defence like that, I can see why the Government lost in court not just once but twice. Buried in the court documents is the confidential memo that reveals the real reason they lost the case—officials were telling Ministers that they had low or very low confidence that half their carbon reductions would be achieved. That is why they were found unlawful. The right hon. Lady comes to the House each month with her complacent nonsense, but the court judgment exposes the truth: the Government are way off track, abysmally failing to meet the climate emergency and pushing up bills for families as a result.

[Claire Coutinho]

I have learned in this role that the right hon. Gentleman likes to call people who disagree with him names. Last week, representatives from the Tony Blair Institute said that his plans would raise bills and harm our energy security. Are they flat earthers? An industry report said last week said that his plans would see up to 100,000 people lose their jobs. Are those people who are worried climate deniers? When will the right hon. Gentleman admit that his plans are based on fantasy and ideology and are the last thing that this country needs?

[Liz Twist (Blaydon) (Lab)]

3. Whether she has made an assessment of the potential merits of public ownership of the energy system.

--- Later in debate ---

[Liz Twist (Blaydon) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Since I was last at the Dispatch Box, we have been building up Britain’s energy security. We have taken the next step in the biggest expansion of nuclear in 70 years, making Britain a producer of advanced nuclear fuel and pushing Putin out of the global energy market. Just today, Rolls-Royce announced that it will invest millions of pounds in bringing new jobs to Sheffield to manufacture small modular reactors. We have overachieved in our third carbon budget, which is keeping us on track to reach net zero, and we are building on our proud record of being the first major economy to halve emissions. We have invested over half a billion pounds to help cut energy costs and bills for schools and hospitals, and we are taking our next steps on PumpWatch to protect motorists from unfair prices.

[Liz Twist]

Latest figures by National Energy Action show that there are still 1,875 homes in my constituency with legacy prepayment meters. What action are the Government taking to remove this costly burden on families?

[Claire Coutinho]

I thank the hon. Lady for her question. During my career, I have looked at the issue of prepayment meters for a long time, and one of the things that I am proudest of is our taking out the premium that people on prepayment meters were paying.

[Dr James Davies (Vale of Clwyd) (Con)]

T3. I welcome Ofgem’s ongoing review of standing charges in electricity bills. In the North Wales and Merseyside region, the standing charge is 67.04p per day, compared to an average of 60.10p across the UK. Will the Minister commit to coming back to the House to provide further comment on this geographical variation once Ofgem has published the findings of its review?

Energy Infrastructure Planning Projects

Claire Coutinho Excerpts

Thursday 16th May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

This statement concerns an application for development consent made under the Planning Act 2008 by Mallard Pass Solar Farm Ltd for the construction and operation of a solar farm energy generating development on land in Lincolnshire, South Kesteven and Rutland.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Mallard Pass Solar Farm application is 16 May 2024.

I have decided to set a new deadline of no later than 13 June 2024 for deciding this application. This is to ensure there is sufficient time for the Department to consider the application.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS469]

Solar Energy and Food Security: Land Use

Claire Coutinho Excerpts

Wednesday 15th May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Food security is an essential part of national security. This Government are fully committed to delivering robust UK food security and recognise its paramount importance to our national security. This is reflected in our commitment to maintain the current level of food we produce domestically. Heightened geopolitical risk has brought this into sharper focus and we think it is more important than ever that our best agricultural land is protected and our food production prioritised.

Similarly, we have seen our energy security threatened following Putin’s illegal invasion of Ukraine, with the Government spending over £40 billion to pay up to a half of people’s energy bills. We are combating this by racing ahead with deployment of renewable energy; nearly half of our electricity today is produced from renewables, which is up from only 7% in 2010. Solar power is a key part of the Government’s strategy for energy security, net zero and clean growth. This position was reinforced in the new national policy statement (EN-3), published in January this year, which stated:

“Solar also has an important role in delivering the government’s goals for greater energy independence and the British Energy Security Strategy states that government expects a five-fold increase in combined ground and rooftop solar deployment by 2035 (up to 70GW)”.

The Government recognise that, in some instances, solar projects can affect local environments which may lead to unacceptable impacts for some local communities. The planning system is designed to balance these considerations against the need to deliver a secure, clean, green energy system for the future.

Protecting the best agricultural land

The new national policy statement that we published in January makes clear:

“applicants 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”.

The Government in “Powering Up Britain: Energy Security Plan” clarified that while

“solar and farming can be complementary”

developers must also have

“consideration for ongoing food production”.

Nevertheless, in balancing both the need for energy security and food production, we are concerned that as large solar developments proceed at pace, more of our “best and most versatile” land could be used for solar PV instead of food production. I am therefore setting out further detail about how our policy on balancing these competing priorities is intended to be applied.

As is outlined in the national policy statement, the starting position for solar PV developers in taking forward nationally significant infrastructure projects is that applicants should seek to minimise impacts on the best and most versatile agricultural land (defined as land in grades 1, 2 and 3a of the agricultural land classification) and preferably use land in areas of poorer quality.

The national policy statement can also be a material consideration in determining applications under the Town and Country Planning Act 1990 and is broadly consistent with the approach to agricultural land in the national planning policy framework which states that:

“Where significant development of agricultural land is demonstrated to be necessary, areas of poorer quality land should be preferred to those of a higher quality. The availability of agricultural land used for food production should be considered, alongside the other policies in this Framework, when deciding what sites are most appropriate for development”.

This means that due weight needs to be given to the proposed use of best and most versatile land when considering whether planning consent should be granted for solar developments. For all applicants the highest quality agricultural land is least appropriate for solar development and as the land grade increases, there is a greater onus on developers to show that the use of higher quality land is necessary. Applicants for nationally significant infrastructure projects should avoid the use of best and most versatile agricultural land where possible.

For nationally significant infrastructure projects, including those already in the system, the national policy statement and from today this WMS are likely to be important and relevant considerations in the decision-making process. The Government will keep under review the evidence base underpinning the national policy statement published in January.

Addressing cumulative impacts

While the total area of agricultural land used for solar is very small, and even in the most ambitious scenarios would still occupy less than 1% of the UK’s agricultural land, we are increasingly seeing geographical clustering of proposed solar developments in some rural areas, such as in Lincolnshire. When considering whether planning consent should be granted for solar development it is important to consider not just the impacts of individual proposals, but whether there are cumulative impacts where several proposals come forward in the same locality.

In parallel, my Department will be expanding the renewable energy planning database to include additional information on the types of agricultural land used by existing solar projects and those in the planning pipeline. This will enable us to carefully monitor the use of land by renewable projects in all regions of the UK.

Improving soil surveys

The Government have heard concerns about the perceived inaccuracy and unfairness of soil surveys undertaken as part of the planning process for solar development. The Government will address this by supporting independent certification by an appropriate certifying body, subject to relevant business case approval, to ensure agricultural land classification soil surveys are of a high standard, requiring surveyors to demonstrate meeting an agreed minimum requirement of training/experience. We will also seek to ensure consistency in how data is recorded and presented, so that reports on agricultural land classification are consistent, authoritative and objective.

Supporting solar on rooftops and brownfield sites

Finally, I want to highlight that increasing the deployment of rooftop solar remains a priority for Government. The installation of qualifying energy-saving materials, including solar panels, in residential accommodation and buildings used solely for a relevant charitable purpose currently benefits from a zero rate of VAT until March 2027, at which point they will qualify for the reduced rate of VAT at 5%. At the autumn statement 2023, the 100% first year allowance for main rate plant and machinery assets, and the 50% first year allowance for special rate plant and machinery assets, including solar panels, were made permanent. These measures complement the business rates exemption for eligible plant and machinery used in renewable energy generation and storage introduced in 2022.

This year, UK Government launched a new package of measures to support British farming. Under the second round of the improving farm productivity grant, between £15 million and £25 million was made available for the installation of rooftop solar and other equipment to help farms reduce fossil fuel use, improve their energy resilience, and accelerate progress towards net zero.

We also unlocked a key barrier for large-scale commercial rooftop solar, including on farm buildings, through changes to permitted development rights under the Town and Country Planning Act 1990. Concurrently, we introduced a new PDR allowing for the installation of solar canopies in non-domestic car parks.

We will shortly be delivering the future homes standard which will set the energy performance of new homes and is due to come into force in 2025. Our consultation proposals setting out the proposed technical detail of the standard demonstrated the effectiveness of rooftop solar in reducing energy bills for consumers with solar panels. For non-domestic buildings, the future buildings standard consultation proposed significant amounts of rooftop solar which is also expected to drive the use of solar power on warehouses and commercial buildings.

Additionally, social housing and the public sector both offer excellent opportunities to fit solar on homes and reduce bills. As such, we plan to explore further how to ensure that social landlords can provide solar to their tenants, and work across government to help schools, colleges, hospitals, and other buildings to supply themselves with solar power.

Further information on these initiatives will be set out in the upcoming joint Government-industry solar road map.

I am making this statement with support from my right hon. Friends the Secretaries of State for Levelling Up, Housing and Communities and Environment, Food and Rural Affairs.

[HCWS466]

Energy Infrastructure Planning Projects

Claire Coutinho Excerpts

Thursday 9th May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

This statement concerns an application for development consent made under the Planning Act 2008 by North Lincolnshire Green Energy Park Ltd for development consent for the construction and operation of a combined heat and power enabled energy generating development, with an electrical output of up to 95 megawatts, incorporating carbon capture, associated district heat and private wire networks, hydrogen production, ash treatment, and other associated developments on land at Flixborough industrial estate, Scunthorpe.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on North Lincolnshire Green Energy Park application is 10 May 2024.

I have decided to set a new deadline of no later than 18 July 2024 for deciding this application. This is to ensure there is sufficient time for the Department to consider the outcome of the piece of work being carried out by officials from the Department for Environment, Food and Rural Affairs to consider the role of waste incineration capacity in the management of residual wastes in England. This follows the direction issued by the Minister for Food, Farming and Fisheries to the Environment Agency on 4 April to temporarily pause the determination of environmental permits for new waste incineration facilities up until 24 May 2024.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS453]

Scope of Fusion Energy National Policy Statements: Consultation

Claire Coutinho Excerpts

Wednesday 8th May 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

I am tabling this statement for the benefit of hon. and right hon. Members to bring to their attention the launch of the consultation on the scope of the fusion energy national policy statement on 8 May 2024.

Fusion energy has the potential to deliver low-carbon, safe, secure energy, and developers, investors, and the wider industry need to be able to plan with confidence to commercialise fusion technology. The UK’s STEP (Spherical tokamak for energy production) programme seeks to develop and build in the UK by 2040 a prototype fusion power plant. Private fusion companies in the UK and overseas are also quickly developing demonstrator fusion facilities. To deliver these facilities, sites for fusion energy facilities will need to be identified and construction started this decade.

If the UK is to maintain its global leadership in fusion and capture the environmental, economic and social benefits of fusion, the Government need to create a stable regulatory and planning environment that supports and encourages its development.

In 2022, the Government published a response to the fusion regulation Green Paper confirming that fusion will be regulated under a different framework than nuclear fission due to its lower hazard. With this different policy approach, the Government also identified a fusion-specific national policy statement as essential to providing clarity to developers and streamlining the planning process for fusion, aligning fusion with other energy-generating technologies. This is necessary not only to provide certainty for developers but also to align fusion with other complex energy-generating technologies which local authorities will lack the expertise to assess in the near future.

The consultation we have published begins the process taking us towards designating an NPS for fusion energy (EN-8). It will include our seeking views on the broad policy proposals for this NPS, and high-level planning criteria.

These broad policy proposals are:

Open-sited—a developer-led approach underpinned by site criteria rather than identifying sites. This approach would allow siting in more communities across the UK, subject to local support.

Technology inclusive—the UK’s fusion strategy committed to supporting all fusion technologies, so the NPS will cover all fusion technologies.

Output agnostic—amend the Planning Act 2008, so that all fusion energy facilities in England will be nationally significant infrastructure projects, independent of capacity of thermal or electrical output. This approach was proposed in the new nuclear NPS consultation, so any amendments to legislation will be co-ordinated.

This consultation relates to the exercise of powers in England and Wales. The Planning Act 2008 and the system of nationally significant infrastructure consenting do not apply to Scotland or Northern Ireland. The Wales Act 2017 gives Welsh Ministers responsibility for consenting to the construction of power stations of a capacity up to and including 350 MW.

Alongside the publication of this consultation, we will publish a consultation on the scope of an appraisal of sustainability and a habitats regulation assessment. These will inform consideration of the sustainability impacts of fusion development.

I am depositing a copy of the consultation in the Libraries of both Houses.

[HCWS445]

Energy Prices Act 2022: Energy Scheme Expenditure

Claire Coutinho Excerpts

Monday 22nd April 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

I am tabling this statement to update hon. Members under the Energy Prices Act 2022, in line with the requirement under that Act for quarterly reporting to Parliament on expenditure incurred under it.

This is the third report on energy scheme expenditure under section 14 of the Act and covers the quarters from 1 April to 30 June 2023, and from 1 July to 30 September 2023.

Energy prices are volatile and changes will affect the outturn cost of the schemes. The Government have prioritised support for those most in need, while ensuring that we act in a fiscally responsible way.

Since Putin’s illegal invasion of Ukraine caused energy bills to rise, the Government have stepped in with more than £40 billion of financial support. Over £43 billion was spent between October 2022 and September 2023, the most ever provided to subsidise household bills in UK history. This was in part funded through taxing energy producers’ excess profits, with the Government’s windfall tax on producers expected to raise over £26 billion by March 2029.¹

Government support schemes covered nearly half of household energy bills between October 2022 and June 2023, saving households £1,500 on average.²

Oral Answers to Questions

Claire Coutinho Excerpts

Tuesday 16th April 2024 Commons Chamber

[Sir Desmond Swayne (New Forest West) (Con)]

14. What plans she has to support floating offshore wind farms.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Britain is a pioneer of floating offshore wind. We are working with the Crown Estate to lease 4.5 GW of seabed capacity for floating offshore wind in the Celtic sea, and we are supporting emerging technologies with a separate funding pot in allocation round 6.

[Selaine Saxby]

The White Cross project in the Celtic sea has a cable due to come ashore in my constituency, and it advises me that it is unable to agree compensation to businesses disrupted by these works due to a lack of Government guidance. Will my right hon. Friend meet me—and, ideally, come to see where the project is due to make landfall—to find an alternative cable route, and if not, will she ensure that White Cross is in a position to fully compensate the businesses that will be hugely impacted if the planned cable route proceeds?

[Claire Coutinho]

I thank my hon. Friend, who is a doughty campaigner for floating offshore wind. I am unable to comment on any specific concerns about a particular planning decision, but I am sure the relevant Minister will be happy to meet her to discuss how the Government can provide better guidance on compensation. People whose land is acquired compulsorily should not be left worse off financially, and compensation should be offered in line with the statutory compensation code.

[Sir Desmond Swayne]

What assistance can be had for those fast-growing enterprises principally reliant on equity?

[Claire Coutinho]

I thank my right hon. Friend for a typically pithy question. We are doing an enormous amount to support the landscape for investments in this country that rely on equity, whether that is through full capital expensing, or, in my area of responsibility, the green industries growth accelerator.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I am sure the Secretary of State will agree that much of Britain’s energy needs could be met, and generated, offshore. Alongside floating wind power, we also have the opportunity to take advantage of tidal and marine power. Does she recognise that Britain has the second largest tidal range in the world after Canada, yet we use so little of it? To put that right, will she agree to meet me, other colleagues in this House and the northern tidal power gateway to look at how we can gain green, renewable, secure British energy from Morecambe bay?

[Claire Coutinho]

I thank the hon. Gentleman. I have been following tidal power for many years, and he is right to point out that the UK has both a strong record in renewables and an interesting geological landscape for new renewable technologies. We have dedicated £105 million—our biggest ever budget—to the flow of emerging technologies through AR6, but I would be delighted to meet him to discuss his work further.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her response. There is always a competition. As I represent Strangford, the fishing sector is very important to me. It is important that we have floating offshore wind projects, but also to ensure that fishing can be sustainable. In these discussions, can she confirm that the interests of the fishing industry and representation from the fishing industry are given appropriate weight, taking into consideration the need for sustainable fishing to continue? Without fishing my people will lose jobs.

[Claire Coutinho]

I thank the hon. Gentleman. We are passionate supporters of the fishing industry. We continue to have conversations with the Department for Environment, Food and Rural Affairs to ensure that we share our marine bed in an equitable way, not only getting the most out of it for our clean energy needs but protecting the fishing industry.

[Mr Speaker]

I call the shadow Minister.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I am sure the Secretary of State does not want a repeat on her watch of the failure of allocation round 5, when her Department managed to crash the offshore wind market. However, the industry is already warning that the parameters set for floating wind in the next round, AR6, could mean that only one sub-gigawatt project succeeds in getting contract for difference support: way off the Government’s recently trumpeted target of 5 GW of floating offshore by 2030. What steps is she taking to ensure that we do not see another failure and lose the global race for this emerging technology?

[Claire Coutinho]

If people want to ensure that we win the global race for renewable technology, they should, frankly, vote Conservative. Under the Conservatives, world-leading mechanisms have been introduced. The only country that has built more offshore wind capacity than the UK is China. We have an enormous and very successful track record, and continue to work with industry to ensure that AR6 will be a success.

[Dr Whitehead]

I am not sure that answer gives much reassurance to industry or this House. The truth is that uprating our port infrastructure is critical for deploying floating offshore wind and for reaching a zero carbon power system, but Government support is so inadequate that they are funding only two ports, dropping viable projects on the way, when, according to the floating offshore wind taskforce, to reach floating offshore wind ambitions we need infrastructure upgraded in at least 11 ports. Is this not another example of the Government failing to invest for the future and failing to back British industry?

[Claire Coutinho]

The only failure on renewable energy is the record Labour left when they were in power, when 7% of our electricity was generated from renewables whereas now that figure is 50%. On ports, not only have we got our world-leading freeport agenda but we have put forward projects such as FLOWMIS—the floating offshore wind manufacturing investment scheme—which is also helping to build our port infrastructure.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Dave Doogan (Angus) (SNP)]

With 17 GW of floating offshore wind planned to be anchored within 100 nautical miles of Aberdeen, what steps will the Secretary of State take to ensure that technological and engineering knowledge and wherewithal and supply chain investment are also anchored within 100 miles of the north-east of Scotland?

[Claire Coutinho]

We are doing an enormous amount of work on supply chains. We have put forward our £1 billion green industries growth accelerator fund to support British supply chains, and we are also taking steps to attract investment into this country to build British business. All of that will be positive for the Scottish offshore wind sector.

[Mary Glindon (North Tyneside) (Lab)]

2. What estimate she has made of the number of households that were in fuel poverty in winter 2023-24.

--- Later in debate ---

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Our plans to decarbonise the grid by 2035 are ambitious but achievable, and have been assessed as realistic by the Climate Change Committee. They will build on the UK’s achievement in becoming the first major economy to have halved emissions. According to independent analysis, securing a net zero grid by 2030 would cost taxpayers £116 billion, and it would mean a “made in China” transition.

[Mr French]

The Conservatives have a strong track record of promoting renewables, and this Government are supporting British companies and supply chains through programmes such as Giga with funding which now stands at more than £1 billion. Does my right hon. Friend agree that Labour’s unaffordable and unrealistic plans to achieve a net zero grid by 2030 will not give British supply chains time to grow, as well as meaning the “made in China” transition to which she has referred?

[Claire Coutinho]

I completely agree with my hon. Friend. Only recently, we have seen European countries having to wean themselves off Russian oil and gas. We cannot do that, only to become dependent on other parts of the world for our energy needs. Our plan will give British supply chains time to develop, ensuring that British workers can reap the benefits of the energy transition. According to expert analysis, the Labour plans will cost taxpayers £100 billion—all to undermine British manufacturing and risk blackouts.

[Philip Dunne]

As the Secretary of State is aware, the Environmental Audit Committee inquiry into decarbonising the economy has heard evidence that no newly commissioned nuclear capacity—even from small modular reactors—is able to come on stream until 2035. New energy projects given planning consent today are unlikely to connect to the grid before 2030, and the scale of the necessary grid network roll-out to reach our 2035 target is already huge. What does my right hon. Friend make of the feasibility, let alone the cost that she has highlighted today, of the fantasy pipe dream of official Labour party policy to decarbonise by 2030?

[Claire Coutinho]

I thank my right hon. Friend for his question. The plans that we have set out represent the largest expansion of nuclear in 70 years, with radical reforms to the grid. However, it does take time to build things. Labour’s 2030 policy is mad, bad and downright dangerous. I have yet to meet a serious expert or a single person in the industry who believes it is possible. We have a record to be proud of, becoming the first major economy to halve our emissions, but Labour’s plans would heap costs on to taxpayers, in stark contrast to our pragmatic and proportionate approach.

[Barry Gardiner (Brent North) (Lab)]

If grid decarbon-isation by 2030 really did cost the billions of pounds that the Secretary of State claims, she might care to explain why her own policy is to achieve 95% of full decarbonisation by the very same date. She knows that independent analysis actually says that Labour’s plan would reduce families’ energy bills by £300 a year, so will she ’fess up? Will she admit that the true price of her failure will be paid for by hard-pressed families in their energy bills?

[Claire Coutinho]

I would completely reject that, based on the many conversations that I have had with industry and experts. The plans that we have set out have been assessed by the Climate Change Committee as being realistic. The plans that the Labour party has set out have been criticised by pretty much every single part of the energy system. Rather than playing politics with this issue, the hon. Gentleman should consider the reality of the taxes, the raised bills and the problems with the economy that Labour’s plans would force on Britain.

[Olivia Blake (Sheffield, Hallam) (Lab)]

Last year, the Government promised that they would publish their decarbonisation plan by the end of 2023, but they have failed to do so. Is that because the Secretary of State is too embarrassed to admit the truth? She is way off track, even for delivering clean power by 2035, because she has bungled the offshore wind auction, is failing on energy efficiency and refuses to end the onshore wind ban. Is it not the case that she wants to attack Labour’s plan because she cannot defend her own?

[Claire Coutinho]

I thank the hon. Lady, but that is an extraordinary question. There would be much more credibility from the Labour party if it would recognise that the UK is the first country in the G20—the 20 largest economies—to halve emissions. While Labour Members might play politics with this issue, I am absolutely happy to defend our position on dealing with our climate change obligations in a pragmatic way that protects household finances.

[Nadia Whittome (Nottingham East) (Lab)]

13. Whether she has made an assessment of the potential merits of public ownership of the energy system.

--- Later in debate ---

[Greg Smith (Buckingham) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

I would first like to pay tribute to my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), who served this Government for eight years, including as Minister for Energy Security and Net Zero since 2022. He will be missed in the role for his expertise. He attended his first COP in 2005 and was instrumental in our achievements at COP28 last year. He helped the UK to halve its emissions, which is an extraordinary achievement. We are the first major economy to do so. He also worked with the Net Zero Council, protecting families through the global energy crisis and backing 200,000 British oil and gas workers. He leaves a legacy of which he can be very proud. I would also like to welcome the Minister for Energy Security and Net Zero, my hon. Friend the Member for North Swindon (Justin Tomlinson), a tireless campaigner who I know will continue this Government’s world-leading work.

Since I last updated the House, families are benefiting from a drop in the energy price cap worth almost £250 a year to the average household. I have set out plans to reform tariffs, saving bill payers up to £900 a year, and invested £750 million in nuclear skills as part of my plans for the largest expansion of nuclear in 70 years.

[Greg Smith]

The consultation on renewable liquid fuels from September is welcome, but the recent survey by the Future Ready Fuel campaign showed that 88% of respondents from off-grid households actively want the option of switching to a renewable liquid fuel. Will my right hon. Friend work with me to ensure that we can get consumers the choices that they actually want, and not the heat pumps that many do not?

[Claire Coutinho]

I thank my hon. Friend. I know that he is a fantastic champion for people living off the gas grid. We are supporting off-grid homes to transition to heat pumps or biomass boilers through the boiler upgrade scheme, with grants of up to £7,500. Renewable fuels such as hydrotreated vegetable oil have the potential to play an important role in heating off-grid buildings, and we will be issuing a consultation on that role by September, in line with commitments made by Ministers during the passage of the Energy Act 2023.

[Mr Speaker]

We now come to the shadow Secretary of State.

[Edward Miliband (Doncaster North) (Lab)]

Mr Speaker, can I start by paying tribute to your father, Doug? He was a remarkable fighter for social justice, and we share your sense of loss.

A year ago, after presiding over the absolute scandal of the forced installation of prepayment meters, the right hon. Lady’s predecessor promised full compensation for anyone affected. Unbelievably, she has left it to the energy companies to decide who gets compensation and how much. They have assessed 150,000 people and just 1,500 got anything—99% got nothing. Why has she so catastrophically failed to deliver justice for those affected by the PPM scandal?

[Claire Coutinho]

The right hon. Gentleman does actually raise an important issue. We have gripped the question of prepayment meters since the scandal first emerged. Not only have we made it clear that the horrors that we saw last winter, of people forcing prepayment meters on vulnerable households, should not take place, but I have been in contact with Ofgem in recent days about making sure that people can get the compensation they deserve at the speed with which they need it.

[Edward Miliband]

That is simply not good enough. It is a year on. The right hon. Lady is the Energy Secretary; she should be delivering that compensation to people, and she is failing across the board. The onshore wind ban remains; the offshore wind market crashes; the insulation schemes are a disaster, while she spends her time appeasing the flat-earth, anti-net zero brigade in her own party. No wonder the former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart) resigned. Is it not the truth that the Secretary of State is failing in her job and the British people are paying the price?

[Claire Coutinho]

The right hon. Gentleman did not listen to my previous answer. It was this Government who worked with Ofgem to make sure that forced prepayment meter installation stopped taking place for vulnerable households. We have said very clearly that it is abhorrent, and we do not want to see it again. On compensation, we are working with Ofgem.

However, if the right hon. Gentleman talks about the wider energy plans—and we should do that—I think that he should consider the recent comments from industry that Labour’s plans would leave the country uninvestable, that they would hike the bills that people would pay, and that they would cost so much in needed taxes—over £100 billion of costs for Labour’s mad plans to decarbonise the grid by 2030, which, let me be clear, are not backed by industry, the unions or consumers.

[Dr Luke Evans (Bosworth) (Con)]

T4. We have seen the price of fuel go up at the pumps because of what has happened in Ukraine, but, in this country, we have also seen that there is great variety at different petrol stations. I am really pleased that the Competition and Markets Authority has looked into it and that the Government are coming forward with Pumpwatch. We have seen something similar in Australia that saves up to £50 for the individual. Can we make sure that, when this comes into play, the Government have an advertising campaign so that the public know that they will be able to see local prices, up to date every 30 minutes, for the best place to get their fuel?

--- Later in debate ---

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

T2.   Does the Minister acknowledge that the alarming delays in track 1 carbon capture and storage expansion and track 2 timelines endanger the Humber’s status as a global leader in hydrogen and CCS, endanger £15 billion of private investment and jeopardise industrial decarbonisation and economic growth?

[Claire Coutinho]

We recognise the role that CCS can play for the economy not just in the Humber but across the wider British economy, which is why we have set out £20 billion of investment committed to this sector. We set out an ambitious road map just before Christmas, and we continue to meet investors to see how we can speed up the process.

[Andrew Rosindell (Romford) (Con)]

I have been speaking to my constituents about the whole net zero agenda. Although the people of Romford are very determined to see cleaner and greener energy sources, I have to say that their priority is energy security, energy self-sufficiency and energy sovereignty. I am worried that we are not taking the people with us on net zero, because many people simply cannot afford this extreme agenda that could end up giving China a competitive advantage and bankrupting our own country.

--- Later in debate ---

[Mike Amesbury (Weaver Vale) (Lab)]

T3. Did the former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart), leave because he is worried about losing his seat to Labour at the next election, or because he could no longer bear to support the woeful energy policy of this Government? Which one was it?

[Claire Coutinho]

I direct the hon. Gentleman to the letter of my right hon. Friend the Member for Beverley and Holderness (Graham Stuart). I reiterate our pride in his work and the amazing contribution he has made to this Government and this country.

[Sara Britcliffe (Hyndburn) (Con)]

Clayton-le-Moors in my constituency is home to the Lancashire centre for alternative technologies, initiated by the Government’s getting building fund. Will the Minister agree to visit to see how the centre is providing financial and research and development support to accelerate the commercialisation of low-carbon technologies?