Planning and Infrastructure Bill Debate
Full Debate: Read Full DebateEarl Russell
Main Page: Earl Russell (Liberal Democrat - Excepted Hereditary)Department Debates - View all Earl Russell's debates with the Ministry of Housing, Communities and Local Government
(1 day, 22 hours ago)
Lords ChamberMy Lords, I remind the Committee of my recorded register of interests: I am a non-executive director and a board member of the Water Retail Company. I will speak to my Amendment 79 and respond to the amendments on connections reform.
Amendment 79 calls on the Government to insert a new clause into the Planning and Infrastructure Bill under the heading of “increasing grid capacity” and proposes that, within three months of the Bill becoming law, the Secretary of State should publish a plan to achieve two simple yet crucial objectives: to reduce the cost and the time taken for new connections to the electrical transmission or distribution system; and to permit the development of local energy grids. The need for this amendment should be beyond reasonable doubt. I am concerned that, if these reforms are not made, we will not be capable of meeting the Government’s stated objective, which we share, to achieve clean power by 2030—a key step on our overall climate change and energy targets.
To decarbonise, we must electrify. Electricity demand is set to rise by at least 11% before 2030 and at least double by 2050. How we heat our homes, how we travel and how we power our industry must all be by electricity, which demands wiring everything up and ensuring that both low-voltage and high-voltage networks are fit for purpose. I would argue that this is one of the biggest societal energy changes since the Industrial Revolution and is only some five years away, which is merely the blink of an eye in planning terms. At present, the delay in getting grid connections is one of the greatest obstacles to decarbonisation, to developing new housing and industry, and to increasing our economic output as a country. Our businesses and communities are waiting seven to 10 years—even longer in some cases—before they can secure the right to feed clean energy into the system or to make power connections. Developers in grid hotspots—or “not spots”, potentially—are reporting connection waits of several years as being typical.
We need to be prepared and to get this stuff done. My amendment is designed to help do that. If we are going to be a leader in renewable energy and to get all the renewable energy in place, the grid connection system needs to be reformed. I very much recognise the Government’s recent reforms to try to update the grid connection system. In April 2025, working alongside Ofgem and the National Energy System Operator—NESO—the Government announced reforms to prioritise clean energy and infrastructure for grid access, aiming to eliminate so-called zombie or speculative projects and to fast-track the shovel-ready schemes that are set to go. The new target model option, TMO4+, introduces stricter queue management, milestone targets and progressive penalties for lagging projects, as well as prioritising the projects that are crucial for clean power and our overall economic growth.
These reforms are intended to help deliver that 2030 clean power plan, unlocking up to £15 billion in investment and supporting a more responsive and modern grid system. These are all steps in the right direction, and we definitely welcome how the Government have made progress since they came to power, but I feel that more needs to be done, hence the amendment that I put forward here. I worry that, if we do not do more, we will simply not be ready and will not hit these targets.
The second element of my amendment touches on local energy grids. Local energy grids are still in their infancy, but my party very much supports them. They empower our local communities and help them to benefit from the clean power revolution that is coming. Their efforts are quiet, modest and determined, and I want this Government to do more to support them. I believe they are essential in galvanising public support and helping the Government to take communities with them on this journey. Alongside many others across both Houses of Parliament, I fought to get community energy into the Great British Energy Act and I am delighted to have done that.
However, more help is needed to get this stuff over the line. Local energy grids are important and will benefit the country. They help to make the grid more secure and resilient. They reduce the need for transmission and the loss of transmission time, and they reduce the need to invest in the high-voltage grid overall. They take our communities with us and bring support. We all need that: this Government need that and we need that. Our communities should benefit from the revolution that is taking place. My amendment is designed to help and to support the Government. My hope is that the Government can support this amendment, or it would be appreciated if they brought forward an amendment on Report.
I turn briefly to the other amendments in this group. I recognise that the Minister has put forward a drafting amendment and we are fine with that. On Amendments 73 to 76 in the name of the noble Lord, Lord Lansley, we recognise what they are about and welcome the questions that the noble Lord raises. These are important issues, which we should discuss in Committee, about the replication of policy and policy statements, and how those systems are set up and will work in practice.
However, as we go into this rapid period of change, my worry is that, if his amendments are passed, we could end up with a system that is centralised more in Westminster, is less responsive to the changes that need to happen at pace and at scale and is not as well connected to the communities and those on the ground facing change. Those would be my general concerns with those amendments, if agreed, but I look forward to the Minister’s response and I think it is important that those amendments were raised. I look forward to further debate on this group.
My Lords, connections reform is very important if we are to give the grid capacity. The noble Earl, Lord Russell, is right in wanting to speed things up and to ensure that these connections are not too costly. That matters whether you want more renewable energy in the mix or would prefer—as I would—to continue with a mixed supply, including better and continued use of North Sea oil and gas.
However, the fact is that the grid is not resilient and everything is too slow. We have too many layers of decision-making, too much strategising, too many bureaucratic rules and, therefore, not enough speed and determination. I know that that is behind the Government’s planning reforms. I fear that my noble friend Lord Lansley’s amendments could also slow things down, but he may be able to reassure me on that. I look forward to the Minister’s response on how we can ensure that these changes will speed things up and get us the reforms that we need, if the economy and the energy economy are to work well in the months and years ahead.
My Lords, the amendments in this group are all on the extension of permitted development. My Amendment 77 concerns the extension of permitted development rights for low-voltage electricity networks. It intends to help this Government achieve their ambition of a clean, affordable and secure energy system by 2030.
The amendment would enable clearly defined and modest upgrades to be treated as permitted development. That includes the upgrading of electricity lines from single to three-phase, the alteration of conduct type, modest increases in pole height where required by regulation, the temporary placement of lines to facilitate works and the reinforcement of existing apparatus such as pole-mounted transformers.
This is not a revolution; it is about pragmatism. These are modest technical improvements that would make our national grid fit for the 21st century. This is not about new infrastructure on green fields. This is needed simply because our electricity network, built decades ago, is fundamentally ill-equipped for the task required of it. I am increasingly worried about the capacity of the low-voltage grid and the investment in it. This is needed to bring electricity to our homes and to ensure that we can make the transitions we need to make—having electric vehicles and installing heat pumps to help us hit our clean-power targets.
At present, these modest network upgrades face planning processes that can take months and sometimes even years, often longer than building the relevant generation plant itself. That results in higher costs and, in some cases, stranded investment. Companies across the energy sector report the same difficulties: planning bottlenecks, slow permissions and land-acquisition rules that lag behind those of gas, water and telecoms. That is not right; there should be a level playing field for these things.
Without reform, costs for paying for clean generators to turn down because the grid cannot handle their power could soar from £2 billion a year today to £8 billion by the end of the decade. These costs are absorbed by companies and passed on to bill payers, who face higher bills. We need to get this stuff done and it needs to work. It takes a series of minor but essential upgrades and technical adjustments to equipment, not new developments, and relieves them of lengthy planning processes. Nothing in this amendment would reduce safety. Electricity safety, quality and continuity regulations remain firmly in place under Section 37 of the Electricity Act 1989, which still governs overhead powerline consents. The safeguards endure. What would change is that we would no longer require the full machinery of a planning inquiry simply to raise a pole by a few feet or to replace a conductor with a modern equivalent.
The benefits are clear. First, it would speed up bureaucracy and get things moving. Secondly, it would lower costs and avoid delays. Thirdly, it would help us achieve our climate and renewable targets. Fourthly, it would provide us with security and resilience in the system and help get electricity to our front doorsteps, where we need it. This amendment would also require consultation on further measures, ensuring that where wider reforms are proposed, the public and stakeholders are fully engaged. I am not asking for a blank cheque here; this is a carefully drafted step forward. The Government have said that this Bill is central to their plan for clean power by 2030, and we agree. This amendment is modest and seeks to help unlock the arteries to make sure that electricity can be delivered.
As I have said, this is slightly complicated because it is a shopping list of very minor improvements. But it reminds me of the approach of British Cycling, which found that a number of very small incremental differences, if implemented as a philosophy, made huge fundamental strides and gains in its ability to win and achieve its goals. The same is true with these amendments. More importantly, these are reforms and changes that DNOs and wider industry bodies are calling for, and that they say they need to achieve clean power. This is about making sure that they can do what they signed up to do to help secure more investment and get things moving.
As I am opening this group, I will circle back to the other amendments at the end. I do not want to speak to other people’s amendments before they have introduced them.
My Lords, I have tabled Amendment 185B, and I completely agree with the noble Earl on his amendment. I have tabled amendments on permitted development elsewhere in this Bill. It is a hugely important part of getting planning right. The Government should take some courageous decisions on what delays we do not need. What do we recognise that we have to do and how do we allow people to get on with it? Getting an efficient transmission network is something we absolutely need to do.
Moving a transmission pole may upset someone locally, but it is part of a national need. That it should be delayed, that people should take huge amounts of time on whether it should be here or there or whether an extra prop to a pole should be allowed, is just ridiculous. I am very sorry that we have allowed this to accumulate over the years. I am delighted to find the Liberal Democrats in support of reducing regulation; long may this continue. This is a really constructive way forward.
I have added the idea that we ought to allow a bit more freedom for wind generation. When I grew up, it was common to see agricultural windmills—those galvanised towers with clanking blades—all over the rural landscape. They provided power of a kind, type and price which suited the local conditions.
I remember when land wind turbines were introduced, and we all thought that they would be horrid, would desecrate the landscape and that it would be miserable, but we are used to them now—they are part of everybody’s landscape, just about. If we do not overdo it, I think that we have a reasonable basis for saying that we should experiment on allowing people to put these down for local need to generate electricity where it is needed and in a way that it is needed. It will not get done unless there is a commercial requirement for it, but we should look at freeing up the restrictions that we have placed on people putting up wind turbines and ask what is really needed here. Have we not learned enough to allow us to free this up a bit?
We all share the opinion that we need to get this Bill on to the statute book speedily and to ensure that we have the growth to which the noble Baroness alludes. However, we need to do this by reflecting on and responding to the consultation, and for that to happen, we have to wait for it to finish—which is tomorrow, by the way. We will look diligently and carefully at the responses and ensure that we have a system that is fit for purpose, growth and development, so that this country grows. This Bill will play its part, but there will be secondary legislation following consultation. We hear noble Lords’ desire, which is also the Government’s; we are all on the same page, and we want to move robustly and diligently in considering the consultation that we launched.
My Lords, I thank noble Lords who have taken part in the debate on this group of amendments. It has been a very useful group, and I note the unanimity around the House on these issues.
I thank the Minister for his response. I note that there is a consultation, which is closing tomorrow, on some of these matters. I would be interested to know which bits of my amendment are not in the consultation and how the Government plan to take those forward. I also press the Minister to take them forward as quickly as possible. If there is any scope for having conversations between now and Report, I would welcome that. If we can collectively take action on these matters where we agree, and make progress, that would be welcomed across the House. A government amendment on Report would also be greatly appreciated.
I thank the noble Baroness, Lady Coffey, for her important amendment. It is important that floating solar is not excluded. As she said, it is a nascent technology, subject only to the issues of not taking up water and leisure space, and perhaps that of drought. I absolutely welcome her amendment and hope that it can progress as well.
I also thank the noble Lord, Lord Lucas, for his amendment. I am not certain I can promise him a bonfire of regulations from my party hierarchy, but I support the amendment he has put forward, subject only to that one drafting issue. It is in exactly the same spirit as my amendment but comes from a different place, looking at what we can do to provide permitted development for such things.
Across these amendments, there is some interesting uniformity and common purpose on getting these things done, and I thank the Minister for his response. I beg leave to withdraw Amendment 77.
My Lords, the amendments in group three are all on electricity distribution and cabling. I apologise that there is quite a lot of crossover between my amendment in this group and those in the other group; in retrospect, it might have been better to have kept them together. A lot of the overarching general points that I made in the last group apply to this group. I am introducing a series of practical measures that I would like the Government to take forward to help them achieve their stated aim, which I share, of getting to clean power.
My Amendment 78 is about land access rights. It would require the Secretary of State to consult on giving electricity distribution network operators powers in relation to the acquisition of and access to land. Land access rights need to extend to renewable energy operators as well, and that is my mistake; the drafting of my amendment was not as clear as it should have been. If the Minister, in responding to my speech, could also include the issue of renewable energy operators’ ability to access land in building renewable energy facilities, that would be greatly appreciated.
This is about using the opportunities the Bill provides. This measure, which the district network operators and industry bodies are calling for, is not in the Bill, which is why I have brought it forward. These are small, practical steps—like the British Cycling example I gave earlier—which, if implemented, would help to get done the things we all agree on.
If we do not address these issues, we will have delays, increased costs and issues in getting towards clean power. At present, electricity licence holders have fewer statutory rights when it comes to acquiring and accessing land compared with other utilities such as gas, water and telecommunications. I am not aware that the Government have done any consultation on this, but if the Minister could let me know when he responds whether consultations are ongoing, that would be greatly appreciated. We are looking to resolve the lack of parity, remove the unnecessary bureaucracy and make sure that we can get this stuff done.
The amendment would ensure that electricity distribution network operators are given carefully defined powers to acquire rights over land for overhead lines and cables, to purchase land for new substations, to enter land for the maintenance of existing equipment and to carry out vegetation management critical to the safety and reliability of the system. These powers will not be unlimited; they will be subject to both proper consultation and fair compensation for the landowners concerned, but they will mean that we can proceed with essential infrastructure works in a timely, straightforward and cost-effective way, in line with other utilities.
I welcome the fact that the Department for Energy Security and Net Zero has launched a consultation on land rights, published last month. However, it falls short of what is required to make clean power 2030 a reality. It does not extend to renewable electricity generators themselves, despite their central role in the energy transition. Without legislative reform in this Bill, we risk kicking the issue down the road.
As I said, the amendment enjoys the backing of the sector, which has been lobbying Members of this House—and, no doubt, the Government, including the Minister—on it. It has long been called for by the Energy Networks Association. These are the people operating on the front line, investing in green power and taking the risks. They are the people with the contracts to deliver this stuff for the Government, so it is important that the Government do what they reasonably can to help these companies succeed, so that we can share that joint ambition and achieve things together.
To conclude, my intention is to help the Government; I share their intention to hit our clean power targets. I want to work with the Minister; I am happy to look at amending my amendment and to speak to him between now and Report. The intention is for further consultation with the industry to look at these things and try to find some practical solutions to these relatively easily surmountable issues. I hope that is possible. I will circle back to the other amendments in this group after they have been introduced. I beg to move.
My Lords, I would like to ask for a point of clarity from the noble Earl, of which I gave him due warning earlier today. As neither he nor the Minister picked up my question in the debate on Amendment 77, I hope that I will be luckier in this debate on Amendment 78.
Subsection (1)(a) of the proposed new clause in Amendment 78 refers to
“the acquisition of rights over land”
by network operators. Will the noble Earl confirm that he does not have in mind compulsory purchase powers? We will hear a lot about them later in the Bill—in fact, they probably should have had a Bill on their own, but we are where we are. Will he just confirm that? Giving operators compulsory purchase powers, in effect, has been a disaster in the radio mast arena. I would not want to see it happen again here.
That is not my intention. I apologise for not being able to respond to the noble Lord’s email this morning. It is not my intention to give compulsory purchase powers. This is wayleaves, not compulsory purchase.
My Lords, I will speak to my probing Amendment 79A. They say that the definition of insanity is to keep doing the same thing again and again and expecting a different result. That could be extended to making the same point again and again and getting the same answer, which I have been doing over the past few months about burial and the different options for dealing with the great explosion we are going to witness of overhead power lines.
I am slightly nervous about the seeming consensus across the Committee this afternoon that nothing must stand in the way of the Government’s own date of 2030 for clean power, nothing must stop growth, and nothing must stand in the way of progress.
I fully concede that the Government have inherited a grid of which all Governments of every persuasion, over the last 20 or 30 years, have been neglectful. We have power being distributed in wrong parts of the country and shortages in other parts of the country, and the bearing loads of some of the grid are simply not up to the capacity that it is now required to meet. Additionally, we have an explosion in offshore wind, which has to be brought onshore, and that necessitates a great increase in the number of substations and, in turn, linkages to the grid.
My Lords, let me take this opportunity to welcome the noble Baroness, Lady Bloomfield, to her place on the Front Bench. I look forward to the exchanges ahead.
I turn to Amendments 78 and 79A, tabled by the noble Earl, Lord Russell, the noble Lord, Lord Swire, and the noble Baroness, Lady Coffey. I thank them both for tabling these amendments and for their interest in and commitment to improving grid capacity and electricity distribution infrastructure.
Amendment 78 seeks to require the Secretary of State to consult on and implement measures to grant distribution network operator powers in relation to the acquisition of and access to land, with the aim of accelerating electricity distribution network infrastructure build and maintenance. The Government are fully committed to achieving clean power by 2030. It is clear that a rapid expansion of the electricity network is essential to delivering that mission. Although we agree with the intent behind this amendment, we do not believe that it is appropriate to legislate on these matters through this Bill.
As previously outlined, the Government launched a public consultation on 8 July; it closes tomorrow, on 2 September. That consultation includes proposals on land access and rights and seeks views from a wide range of stakeholders, including network operators, landowners and local authorities. Once the consultation closes, the Government will undertake a thorough evaluation of the responses to understand stakeholder concerns and to assess any potential unintended impacts ahead of implementation. Introducing changes now, before that work has been done, would pre-empt that process and risk undermining the careful balance that we are trying to strike between speeding up delivery and protecting landowner rights.
We are committed to acting quickly once the consultation process is complete but we must do so in a way that is informed, proportionate and legally sound. I hope that the noble Earl, Lord Russell, is reassured by this response; I kindly ask him to withdraw his amendment. I will take his offer forward with my officials and look forward to meeting the noble Earl, alongside my noble friend Lady Taylor, on the issues raised in this area.
I move on to Amendment 79A in the name of the noble Lord, Lord Swire. This amendment would introduce a statutory presumption in favour of undergrounding power lines. It would require developers to demonstrate that undergrounding was their preferred and initial option, and that it was infeasible on cost or engineering grounds, before overhead lines could be approved. We understand that some communities hold strong views in favour of undergrounding, particularly due to concerns about the visual impact of overhead lines. We are aware that the support is partly driven by examples seen internationally, where undergrounding is used in certain contexts.
The Government’s position is that overhead transmission lines should be the starting presumption for electricity network developments except in nationally designated landscapes, where undergrounding is the starting presumption. That is because overhead lines are significantly cheaper, as undergrounding can cost up to four and a half times more, with costs ultimately passed on to bill payers. Overhead lines are also quicker to build, cause less environmental disruption and are easier to maintain and connect to existing networks.
That said, we totally understand the point made by the noble Lord, Lord Cromwell. I reassure him that neither I nor my noble friend Lady Taylor answered the Question that he asked in relation to pylons, but we look forward to speaking to and working with officials to get more detailed examples of costs and how they work in different ways in different combinations. The noble Lord asked a question that I did not previously answer on whether the network permitted development rights proposals in the current consultation cover compulsory purchase. I can confirm they do not, but there will be a huge debate—well, hopefully not a debate, but a huge discussion—on compulsory purchases in due course.
Strategic network planning is critical to ensuring that transmission infrastructure is designed and delivered in a way that meets system-wide needs. The National Energy System Operator, NESO, through the forthcoming centralised strategic network plan, will assess technology options against key criteria—including cost, deliverability, operability and community and environmental impact—and recommend optimal solutions. Developers will then apply those recommendations at a project level, refining routes and designs within existing planning and regulatory frameworks.
Accepting the amendment would move us away from a strategic, co-ordinated, system-wide approach to grid development and towards a more fragmented process. While undergrounding is already used on a case-by-case basis where justified, the amendment could lead to more frequent project-level decisions, undermining strategic system-wide planning. That risks creating inconsistency, reducing efficiency and ultimately slowing down the delivery of the infrastructure. We need to meet our clean power 2030 and net-zero targets. Further, the amendment would shift the burden of proof onto the developer, which would add complexity, legal risk and delay to an already lengthy consenting process. Given the significantly higher costs and technical complexity of underground lines compared with overhead, the amendment is unlikely to increase the use of undergrounding but would add additional time to the planning and delivery process.
Amendment 94, tabled by the noble Baroness, Lady Coffey, would require that electrical or communications cables under land in active agricultural use must be buried to a minimum depth of two metres from the surface level, and deeper if required. Existing legislation for electrical cabling is contained in the Electricity Safety, Quality and Continuity Regulations 2022. They require that:
“Every underground cable shall be kept at such depth or be otherwise protected so as to avoid, so far as is reasonably practicable, any damage or danger by reason of such uses of the land which can be reasonably expected”.
This legislation is supported by industry codes that provide the specific standards for the relevant minimum burial depth, considering different factors and use cases. These industry codes must comply with the legislation that forms the quality standards that network operators must legally operate within.
For agricultural land, the minimum recommended depth for electricity cables, set out in the Energy Networks Association’s engineering recommendation G57 for cable laying on agricultural land, is 910 millimetres. This is intended
“to provide sufficient depth to safeguard against damage from deep ploughing and cultivation, and from the mechanical installation of drainage systems”.
Recommendation G57 says:
“This depth requirement takes account of the wishes of the National Farmers’ Union”.
Agricultural activities including deep cultivations, subsoiling and mole draining rarely extend deeper than 700 millimetres below the soil surface. Installing cables at depths greater than 910 millimetres can introduce engineering and environmental constraints, such as increased heat generation from the cables, which may require additional mitigation measures such as increased pole spacing. Deeper installation would necessitate a wider and deeper trench, raising the risk of potential detrimental impacts on the soil resource due to soil handling and storage. The existing legislation is supported by detailed industry standards, ensuring an agile framework whereby the relevant standards can be flexibly updated and refined in line with evolving circumstances such as innovation while minimising potential impacts on agricultural land.
To conclude, similarly for communication cables, the Electronic Communications Code (Conditions and Restrictions) Regulations 2003 include a requirement that code operators must install apparatus such as cabling at a depth that does not interfere with the use of the land. This ensures that the land can continue to be used for the purpose that the landowner wishes, even where there is electronic equipment buried in the ground. Introducing a new requirement for the depth of communications cables could increase digital infrastructure deployment costs substantially, slowing network build and potentially preventing the Government’s ambition of a nationwide coverage of stand-alone 5G and gigabit-capable broadband.
For the reasons outlined, I do not think that these amendments are necessary and I therefore kindly ask the noble Earl to withdraw his amendment.
My Lords, this has been an interesting group of amendments, and I thank everyone who has tabled an amendment or taken part in the debate. I thank the Minister for responding so thoroughly and welcome his commitment to work with me between now and Report in relation to Amendment 78.
My only real concern is that I am aware that renewable energy operators are not included in the Government’s consultation. Equally, they were not included in my amendment, but they are an important part of the picture. If we could work together to try to find a solution so that they could be included in the process, preferably prior to Report, it would be appreciated.
I welcome the noble Baroness, Lady Bloomfield, to her place and recognise the point that she made on parliamentary scrutiny in relation to my amendment. I will take that on board. It was not my intention to exclude it.
On the amendment in the name of the noble Lord, Lord Swire, it is important that these issues are raised. I welcome the fact that this was put forward as a probing amendment. These are difficult issues that need to be balanced. I do not think that anybody knows the true cost of burying cables, because it depends on what you are burying them in, so I do not think there is an absolute answer. It seems clear that some of these costs are coming down. That may be something that the Government want to look at again.
There is an important need in this debate to balance the cost, which ultimately goes to consumers, with the need for the Government to be open, able to listen, to vary plans in response to communities’ concerns and to be able to persuade and hold the energy companies to account to take more expensive options where there are particular impacts. To that end, I also welcome that the amendment from the noble Lord, Lord Swire, would be against the EN-1, the overriding energy policy statement. I ask the Government to be open to the idea. I know that there are legislative conditions around areas of outstanding natural beauty, but the Government should be open and mindful of community concerns and make sure that budgets are available for burying cables where communities raise particular concerns or there are particular types of landscapes. I welcome the news that we had yesterday of the cable from Norfolk going south. In response to the consultation that took place with communities, bits of that have been buried. I think that is the right approach. With that, I beg leave to withdraw my amendment.
My Lords, Amendment 82B in my name would require the Government to evaluate and report on how this legislation affects the UK’s capacity for long-duration electricity storage. Clause 25 outlines the introduction of a scheme intended to stimulate investment in long-duration electricity storage. Yet, as with any initiative of this scale, we must pair aspiration with scrutiny. It is one thing to launch a scheme, but quite another to ensure that it is fit for purpose.
We hear regularly that storage will solve the challenge of intermittent renewables. It is a reassuring narrative that excess wind and solar can simply be stored away, ready for when needed, but that message risks masking the scale of the task ahead. To get the facts straight, the UK’s average electricity consumption is around 780 gigawatt hours per day. Current grid-scale battery storage stands at roughly 12 gigawatt hours, enough to meet national demand for just 30 minutes. On a global scale, the picture is not much better. All the batteries in the world combined could keep the UK powered for less than a day.
Storage is not futile. However, we must acknowledge that we are starting from a very low base. We must also ensure that any storage added to our energy infrastructure does not undermine grid stability and that it is available to release power in the timeframe needed. This could be seconds for battery through to hours for pump storage. My amendment seeks to ensure transparency. We need regular reporting to Parliament on whether the measures we are introducing are expanding our storage capacity at the pace required.
Moreover, as we look to scale up these technologies, safety must be a central concern. My noble friend Lord Fuller rightly highlights the risks associated with high-capacity storage, particularly lithium-based battery systems. These systems often contain highly flammable materials and, when they fail, the consequences can be catastrophic. Fires involving lithium-ion batteries are notoriously difficult to control and demand vast quantities of water to extinguish. In rural areas, where many of these installations are proposed, access to that water is limited. Climate change and restrictions on the preventive burning of fuel load in wild environments are leading to greater wildfire incidence and severity. In urban settings, proximity to homes, schools and critical infrastructure raises additional risks. We must ensure that local fire services are not only consulted but properly resourced to assess and manage these risks. Any developer seeking to install large-scale storage must be required to engage with emergency services and contribute fairly to risk assessments and preparedness.
We must also consider the environmental impacts. In the event of a fire, runoff containing hazardous materials could seep into groundwater or flow into rivers. This is not just a fire safety issue; it is a matter of public health and environmental protection. We cannot afford to be complacent. As our electricity system becomes more complex and decentralised, so too do the risks. It is the responsibility of this House to ensure that those risks are identified, assessed and addressed. Long-duration energy storage may be a useful addition to our energy mix. However, we cannot rely on this technology alone to support our renewable future.
My Lords, I will respond briefly to this group of amendments on long-duration energy storage. We thank the noble Lord, Lord Fuller, for bringing forward Amendment 82A. These are important topics. While long-duration energy storage facilities are essential to the energy transition and have a very high safety record, they are still an emerging technology and it is right that we seek to balance planning and safety regulations with the need to build these facilities. To be clear, a number of the fires that he referred to were from individual batteries and not big long-duration energy storage facilities. As far as I am aware, there have been only two such fires in the UK. These big long-duration energy storage facilities have a very strong safety record.
However, it is true that UK fire and rescue services have described BESS and long-duration energy storage facilities as an emerging risk, noting that when these fires occur, they can last for hours or days and produce toxic emissions. I am grateful to the noble Lord for bringing forward this amendment, as it rightly highlights the critical importance of the safety of long-duration energy storage as we accelerate towards our energy transition.
The amendment would establish a specific statutory duty requiring operators of long-duration energy storage systems to consult local fire authorities prior to installation, with the authority empowered to assess fire risks and levy a reasonable fee for doing so. On the face of it, I recognise the merits of such an approach. These can pose material risks and it is important that the fire brigade is involved and included in some of these planning decisions. It is also important that our fire services are aware of and prepared for particular hazards and have clear plans to deal with them should anything untoward happen. That being said, there are questions as to whether a statutory provision of this kind is the right or appropriate mechanism at this stage. A number of regulatory avenues already apply, including planning law, the Health and Safety at Work etc Act, and general fire safety legislation. The Government have also indicated their intention to update planning and permitting frameworks, considering the rapid growth of battery storage technologies. It is absolutely right that they do so.
My Lords, I will speak to my Amendment 86 in this group on bill discount schemes and community benefits. It sets out a scheme for providing financial benefits to communities in areas connected with major infrastructure schemes. The amendment proposes a new clause that would establish a statutory scheme to provide community benefit from major energy infrastructure projects, ensuring that those who host the infrastructure necessary for our clean energy transition are directly recognised and rewarded.
Let me begin by acknowledging and welcoming what the Government have already done in this space. The provisions now in the Bill for compensation for households living near transmission lines represent, without question, an important step forward. Households living day in, day out under new pylons or beside substations reasonably expect that there should be some benefit for them and their local communities. I welcome the fact that the Government have done that. I also take on board my noble friend’s point that this stuff is also good for all in our communities and our future.
I welcome the position that the Government have taken in the Bill but, as part of this broader group, it is important that we discuss some areas of how the Government have designed their own compensation; for example, as the noble Baroness, Lady Coffey, clearly mentioned, there is the point about generation not being included, as well as the fact that a fixed 500-metre distance was used in the DESNZ consultation. There are strange situations in which you could get compensation and not have visible sight of pylons, and there are other situations where you could have visible sight of pylons and not receive compensation. All of that needs a bit of working through; I welcome the other amendments in this group that are trying to do that. We should circle back to this on Report, but the important thing is that there is a compensation scheme. We on these Benches welcome that.
My amendment wants to go a bit further; it is additional to what the Government are doing. Although individual compensation is welcome, it has more limited scope and is of more limited benefit than pooling money together and using it to provide community benefits. I fundamentally believe that that is a better way of bringing real transition and change to the lives of the people who are impacted by this stuff.
Crucially, my amendment seeks to tie the benefit directly to the scale of the project, amounting to 5% of annual revenue. This is important because it requires not one or two pieces of infrastructure but lots of the stuff that we will have. As I said at the beginning, in energy terms, this is as big as the Industrial Revolution. Our communities will carry this weight; they should be able to be transformed by, and to get benefits from, it. I believe that pooling those benefits is a better way of helping our communities.
For example, I know that, over the summer, the Labour Party had a real concern about what happens to our coastal communities, which are some of our country’s poorest and most deprived communities. In the GB energy Act, we have community energy. It struck me that we could be doing a lot more if we used this type of money to help build local windmills and provide energy to these people living in poverty; that could be a really good scheme. It is important that this is about not the Government doing things to people but them doing things with people—that is, taking people with them on this journey and allowing them to be included in it, to benefit directly from it and to see it. I want people to go down the pub and say not, “Green energy is going to make my bill more expensive”, but, “We’ve got a local windmill or solar farm and we’re benefiting from it. We’re included in it. We participate and we get something back from it”. That is a very different conversation from the conversations that are happening now.
I recognise that my amendment is not fully workable; there are areas that obviously need reform and change. What I am trying to do is make a point. I am asking the Government to go further and go beyond what they have done already. In this country, there is a lot of conversation about and resentment of the Norwegian sovereign fund. When Norway started developing its oil and gas wells, it had the foresight to create that sovereign wealth fund; it has benefited from it. We did not do that in this country, and we have blown through most of the North Sea oil and gas. We do not have those long-term benefits.
As we start this new energy revolution, there is an opportunity here to make a system that compensates our communities and gets benefits flowing to our communities—indeed, to our whole society—from this new form of energy and transition. We can use that to bring people in and take them with us on this journey in order to make sure that this is about not one Government or one party but all of us working together for our communities, our future and the future of our children. I accept that there is a lot more to do but lots of other countries are doing this stuff, including Denmark, Germany and France, which has been mentioned. I encourage the Government to look at some of the schemes that other countries have, to look at what works and what does not, and to look at this again.
Turning briefly to the other amendments, I fully recognise the purpose of the amendment of my noble friend Lady Pinnock. She said that this is time limited, and I also note that there are over 20,000 pylons. I am interested to know whether the Government could do an assessment on what the cost of that would be; I suspect that it would be quite big and could well be prohibitive. I do not know the answer to that, but it is a question that needs asking and it is good that it is being asked.
I am not certain whether the noble Lord, Lord Lilley, is in his place, but we do not support fracking. It is not appropriate and will not solve our energy problems; it will cause pollution to our groundwater systems as well as earthquakes. It was his own party that decided that fracking was not the answer and, as far as I am aware, the Conservatives have not changed their policy on that part of the energy transition. That is certainly one amendment—unless he is working for Reform, which I doubt—that I cannot see the point in adding to the Bill.
My Lords, I will speak to my Amendment 83, which seeks to introduce a bill discount scheme for eligible households living near major energy infrastructure. This amendment seeks to ensure that those most directly impacted by the presence of new energy developments, especially large-scale infrastructure, receive a tangible, meaningful benefit—namely, a £1,000 annual discount on their electricity bill for 10 years. In contrast to Amendment 86, in the name of the noble Earl, Lord Russell, which appears to direct funding to local authorities rather than local consumers, we want to see individuals benefiting directly, not local government.
This proposal stems from a clear and pragmatic principle: if the Government are to meet their national energy and net-zero targets through new infrastructure, they must take the public with them. That includes recognising that hosting such infrastructure in their area has consequences for local communities, whether because of the visual impact or disruption from construction. It is disappointing that the current Government have chosen to step back from the community benefit scheme proposed by our previous Conservative Government. In doing so, they have shown not only a lack of ambition but a fundamental misunderstanding of the impact that these developments can have on communities.
Indeed, in a 2023 paper published by the Department for Energy Security and Net Zero, it was recommended that
“an electricity bill discount for properties located closest to transmission network infrastructure … could offer up to £10,000 per property (£1,000 per year, ~£80 per month, over 10 years)”.
The rationale was simple: communities should be compensated for their proximity to infrastructure that serves the national interest. In achieving this compensation, there is likely to be greater community consent, limiting the length of time for the planning decision to be taken and the cost associated with it. Yet despite this recommendation, the Government have failed to follow through with a credible or generous offer. Amendment 83 seeks to correct that failure.
Amendment 84, in the name of my noble friend Lord Lilley, would provide for the creation of community benefit schemes linked to onshore wind turbines. The amendment again recognises that, while additional energy infrastructure is essential, it is not always welcome, and that community consent is far more likely to be secured when there is tangible benefit for those living nearby. My noble friend’s amendment acknowledges that local communities must be partners in our energy transition, not passive recipients of top-down decisions. It would be helpful to understand the Government’s position on why onshore wind projects—and other energy infrastructure projects, for that matter—are not currently in scope of formalised benefit schemes and whether that could or should be changed.
Similarly, Amendment 94, also from my noble friend Lord Lilley, proposes that individuals should be entitled to financial benefits from shale gas companies. While shale gas remains a contentious issue, as the noble Earl, Lord Russell, mentioned, the underlying concern remains valid: communities affected by energy extraction and production should not be left behind. I also point out that fracking was pretty much invented in, and is commonly used throughout, the North Sea; it is simply the shale gas issue that we are addressing here.
I also support the sentiment of the amendments in this group in the name of my noble friend Lady Coffey. These important amendments seek to extend benefit schemes to energy generation infrastructure and network transmission infrastructure and ensure that such schemes are not merely optional but required. They mirror the spirit of the amendment in my name by embedding fairness into our energy transition and making community benefit a standard, not an exception.
What links all speakers and amendments in this group is a shared concern for the people and places that bear the burden of our national energy ambitions. From onshore wind to transmission lines, from shale gas to solar farms, these projects do not exist in a vacuum; they are local and in real communities. These amendments attempt, in different ways, to ensure that the impact is matched by investment and that no community feels exploited in the name of national progress.
Finally, I turn to Amendment 85, tabled by the noble Baroness, Lady Pinnock. It is uncosted, as the noble Earl, Lord Russell, mentioned, and concerns a retrospective scheme. The noble Baroness used the word “fairness”, and I ask: fair to whom? This provision, if implemented, would fall on bill payers and the infrastructure providers that had not anticipated these costs when they developed the infrastructure. I very much remain to be persuaded on the necessity for this amendment.
I look forward to the Minister’s response and urge her to provide clarity and assurance on the Government’s approach to community benefits. The concerns raised by this group of amendments go to the heart of fairness, consent and the long-term credibility of our energy strategy.
My Lords, I thank the Minister for her response. She has mentioned the working paper in relation to several amendments, including mine. I welcome the words that she has given and the direction of travel. However, we have the usual phrase, that “in due course” something will come forward. The Minister may not have the answer to hand, but if there is a possibility of bringing forward those proposals in time for Report in relation to this group of amendments, it would be welcomed across the House.
I accept the noble Earl’s point. I am not fond of “in due course”, as he well knows—he has heard me say that many times. I will endeavour to find out what the timescales are likely to be. It usually depends on the level of responses that have been received and the complexity of dealing with them, but I will respond in due course.
In this group on the Forestry Commission’s actions and duties, I will speak briefly to my Amendment 88 and in support of Amendment 93, which was tabled by the noble Lord, Lord Krebs, and spoken to by the noble Baroness, Lady Young. I support pretty much all of the amendments in this group. This has been an interesting conversation on not only the role and development of the Forestry Commission but its relationship with hosting energy, including what safeguards and protections need to happen as we go down that road and what our forests will look like in the future under climate change.
My amendment is designed to put in place some safeguards on the new powers granted to the appropriate forestry authorities for energy generation, transmission and storage on public forestry land. At the heart of all this is a balance between what we do to hit our climate and nature change duties and what we must do not to further damage our ecology and biodiversity. It is fine to make use of our forests for these things, but it must not have detrimental impacts. That is what I have tried to balance in my amendment.
The commission gains unprecedented powers to host and sell energy from renewable installations on land under its management. Yet, when I looked at Clause 28, there were no clear legal protections for most precious habitats. My worry is that, without such safeguards, we will see renewable energy infrastructure sited in ways that harm our ancient woodlands, our carbon rich peatlands and other priority habitats that the Government have a duty to protect, particularly under our 30 by 30 biodiversity targets.
I am looking for a reasonable balance between timber production and nature conservation. That reasonable balance is in the Bill, but what does it mean? It is not purely defined in the Bill, which was also a worry for me. In response to that, my amendment tries to take a pragmatic way forward. I note the issue raised by the noble Baronesses, Lady Young and Lady Bennett, about the percentages. My amendment says that no more than 2% of all Forestry Commission land and no more than 5% of any individual site could be given to energy storage and development. I will go away and look at that. At the moment, there is no cap on that at all. Noble Lords may not agree with my percentages but putting a percentage in the amendment is a whole lot better than having no percentages in there at all; however, I will go away and look at whether there is another way in which that might be done.
This issue is particularly acute in our national parks and where our national parks and Forestry Commission land co-exist; in the New Forest, that is 47%, while, in Northumberland, it is 15%. These are treasured landscapes. Energy development must be proportionate, consistent with statutory park purposes, subject to democratic oversight, not impacting on leisure facilities and making sure that our national parks authorities have some say in and control over these things. These are important matters.
My amendment does not seek to reject the role of using Forestry Commission land to help with our energy; it just seeks to put some safeguards on that. I will go away and consider my amendment. This debate has been useful for me, and I will reflect on this, but there need to be more safeguards in the Bill—of that I am still certain. I would be very happy to work with the Minister between now and Report to see whether there are ways in which we could do that together; that would be welcome.
This has already been discussed in detail but, turning briefly to Amendment 93, I have supported the Private Member’s Bill brought forward by the noble Lord, Lord Krebs, at every stage of its passage through the House. It is absolutely essential that we update our climate change legislation. In the last debate on his Bill, I said that it was the equivalent to the Government being the general and knowing what the military strategy was but failing to tell any of their own troops. The Government need to work with all these public bodies. These things are so pressing and so complicated. The Government are holding on to all this stuff and not passing the orders down and empowering others, including the public bodies. The Forestry Commission owns 5% of all public land. It needs a duty to enhance and meet our climate change and biodiversity targets; it is silly that it does not have that.
I am sorry. I am a little buoyed up having come through the Crown Estate Bill and the Great British Energy Bill, where we managed to work with Ministers and get such provisions added to the Bills. It is on my agenda to do that in this Bill; that makes sense. I would like to work with the Minister, but it is a minimum for me that a similar amendment to the ones in those Bills is added to this Bill. If the Government want to make use of forestry land for energy generation, that is fine, but with that comes some responsibilities; those responsibilities include that this duty should added.
My Lords, I very much approve of what the Government are doing in this clause. I think they should go a bit further. I want to illustrate this in the context of the challenges faced by southern broadleaved woodlands, which existed for many centuries as places of industry. People made things there; a lot of products came out of it. The whole biodiversity of that ecosystem comes out of a continuous pattern of use. It is interesting to see, for instance with NEP, how little biodiversity is left in the woodland when the woodland ceases to be of value. All the biodiversity there, which is considerable, has moved outside. Our woodland biodiversity is important.
The Government should be organising themselves, and the Forestry Commission, so that we can see a restoration of a commercial purpose to the southern broadleaved woodlands, particularly in England. We cannot at the moment rely on forestry. All the species that we used to grow in profusion have no big current use. Our neighbouring forest in Eastbourne was planted to beech 100 years ago. When they are felling it now, 100 year-old trees are going to firewood. There is no market now for really high-quality beech.
In the small wood that I own, oak is the main crop. We have acute oak decline coming in now. You are asked to wait 100 years for oak. If it is all going to rot away before then, there is no outlet. We really need a system that can take general wood output—branches, brash, thinnings, uneconomic trees—and turn it into something useful. The outlet available at the moment is energy.
The Forestry Commission is hugely important in this as it has a breadth of organisation and understanding, whereas the ownership of woodland tends to be extremely fragmented in the south. It can bring a lot in motivating, organising, inspiring and controlling when it comes to looking after biodiversity principles.
I am very pleased to see the direction in which the Government are moving here. My understanding is that this clause is written in a way that allows the Forestry Commission to work with partners in achieving its objectives; it does not have to do everything itself. However, I urge the Government to make one change to this: not just to look at renewable power but to look at renewable feedstocks for industry.
If we are to replace oil as the feedstock for our chemical industry, we need to go after every available source of concentrated carbon, and woods produce quite a lot of that. In looking at the powers that Forestry Commission has under the Bill—there are already young British companies using wood products to produce jet fuel and similar things—we need to add that extra aspect: not just renewable energy, but renewable feedstocks for industry.