National Policy Statement for Nuclear Energy Generation
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Earl Russell (LD)
My Lords, it is a pleasure to follow the noble Lord, Lord Browne. My university career was spent studying nuclear strategy, so I welcome the work that the Nuclear Threat Initiative has done. It has also been fascinating to learn that the noble Lord, Lord Wigley, studied nuclear engineering. What expertise we have with former Energy Ministers around the Room.
I also very much welcome the noble Baroness, Lady Maclean, to the House of Lords. She talked about pinching herself—I have been here for two years, and I can say that it is worse after you have had a holiday. I congratulate and welcome her, and I know that she will make a valuable contribution to the House, as she did as an MP in fighting for her constituents.
I thank the Minister for bringing forward this debate. I apologise in advance that I will put several general questions to him, but I do not expect answers to everything that I raise today. I welcome this national policy statement on nuclear EN-7. Much of it is about SMRs and AMRs and about the energy we need—predominately for AI and data centres in the future. Indeed, if there is no energy, there is no AI. The alternative to small modular reactors is that they will turn to gas-powered turbines, which would be an absolute disaster for our net-zero ambitions.
This Government are clearly serious about taking this forward, which I welcome. However, as the noble Lord, Lord Browne, remined us, the UK is in a global competition, and, as other Members have said, time is short, even though these things are happening at pace. Personally, I well recognise the need for nuclear energy as part of our energy mix, particularly for baseload power. I also recognise the role that SMRs can play for data centres and the harder-to-abate industries. This is obviously a moving space. If we were making counter arguments, we could say that the cost of renewables continues to go down and, as yet, we do not have a commercially operating SMR—we have many in development but not one in place already. However, I welcome this development, and I welcome nuclear as part of our energy mix to meet our net-zero goals.
EN-7 is about modernising our planning processes to make sure that they work, deploying projects after 2025 and ensuring longer-term planning. Can the Minister explain how EN-7 will be integrated with the energy spatial plans, when they are ready, and how they will fit together? EN-7 is designed to be more flexible and—as many noble Lords have said—it needs to be so in order to incorporate the new technologies. It is broader in scope, and it will enable site selection to be done by the developers themselves, whereas previously it was done by the Government—let us hope that that will speed up things. It will be done on a “first ready, first served” framework, once developers pass through a series of checkpoints.
EN-7 will supersede EN-6, but EN-6 will not be withdrawn and remains a material consideration. The removal of time limits and the focus on criteria-based selection aim to open up more sites. Generally, we welcome this policy, as I said. We welcome that the Government are taking it seriously and bringing forward new policies and plans to implement these new technologies and make this happen. The Government’s policy is better developed on SMRs than it is on AMRs—a point that the noble Lord, Lord Ravensdale, made quite strongly. Picking that up, what further work will the Government do to progress the AMR side of things?
Previously, before this policy, this country had only eight sites licensed for nuclear power. As we move to SMRs, we are moving to a completely different system where any site can potentially have small modular reactors if it meets the appropriate criteria. We need to acknowledge, in this Room and on the record, that this is a huge and fundamental change. I will come on to that later, but these are big and important changes.
The Government’s press release talked about slashing red tape,
“ripping up archaic rules and saying no to the NIMBYs”.
That is a bit unhelpful. We have new technologies and planning processes, and it is important that the Government take the time to explain, consult and provide reassurance. As we have a whole new system, with new nuclear power plants, we need a new way to assess the risks that this changed system brings with it. That is important, too.
My understanding is that SMRs are happening and should be going to tender by next March, which is welcome. Can the Minister confirm that it is still the Government’s plan to tender for two SMRs?
I wish to pick up some of the concerns from the consultation. Waste was one of them: the management of radiological waste and spent nuclear fuel and putting that in the context of the fact that we still lack a geological disposal facility. Depending on what design is chosen, it is possible that we will continue to generate waste from even small modular reactors. How will these challenges be met? How will this fit with the need for the geological disposal sites that are not ready? There will be allowance for interim storage. How will that system work? What do the Government mean by “interim” in that context? What general timeline are the Government working to for the GDF?
Who bears the cost here? Small modular reactors, in particular, could be from one commercial company providing energy. Where does the cost of the processing and long-term storage of waste sit? Does it sit with the state or with the company? These are fundamentally different, in that they are providing power to a company. Will the Government update EN-3 in relation to waste for SMRs and AMRs? Is that planned? I am not certain.
I turn to the site selection criteria. The semi-urban population density criteria remain, which is absolutely right, but is there a conflict between that and powering data centres? I may be wrong, but my understanding is that most data centres are in fairly urban populations. Do the Government know whether that is a tension? I know that they are thinking about reviewing that. If that policy is reviewed, could the Minister give some reassurance about how that might happen, including the processes, and that there will be some scrutiny around that?
On climate change, which is one of the key criteria that need to be looked at, we are in the middle of—until it started raining today—a dry spring. Water usage is one of those primary concerns, particularly the impact of abstraction on water bodies.
There is also the security of these sites. The Office of Nuclear Regulation used to provide security for nuclear sites. I think it is still not certain whether it will take up the role with SMRs. Is that still to be decided? How will that work? If there are more sites, more need to be protected. There will also possibly be more nuclear material moving around the country to fuel these sites. Is there a policy coming on that? Is that still to be determined? The response cryptically said that there was not uniformity of views on everything. Are there issues for the Government that come from the consultation? Were there particular areas where the consultation responses picked up issues? Will that be subject to further review?
The need for a skilled workforce has been mentioned. We have not built new nuclear for a while. We have the nuclear skills task force but the words were “careful future management”. The hope is that we can grow our nuclear industry. We have two nuclear engineers in this Room. This is important much needed jobs and skills and growing our economy.
The communication bit is important for me. This is new stuff and a change of siting policy. I call on the Government to work with communities and to communicate in more open and co-operative language around these matters—this point has already been raised here—and to provide community benefit where that is possible. It may not be possible in all cases, but providing community energy through waste heat might be an option in some dcases.
Does the Minister see a role for SMRs in helping with grid balancing and providing baseload where we are providing these this energy to data centres? Are there options in terms of stabilising the grid?
My final point, noble Lords will be pleased to know, is around AI and energy. As we transition to net zero, we need at least to double the amount of electricity by 2050, and noble Lords have made the point that that need might be much greater. At the moment, data centres consume 2.5% of our electricity, but that is going to rise to 10% by 2050. Against that background, the general demand for electricity is going to double. There is no doubt that nuclear and the need for data centres will rub up against our need for net zero, and there will be competition for resources, workforce, government time, money and so on. That needs to be looked at. We had a Question to the Minister in the House the other day. There are loads of opportunities for us to make better use of AI to become more energy efficient, run our grid better, run our industry better and use less energy across so many sectors of the country from manufacturing to transport and everything else. While I welcome the creation of the AI Energy Council, I call on the Government, if they are embracing AI and providing energy, to put as much energy into trying to make sure that AI is as energy-efficient and energy-saving to the country as it possibly can be.
Nuclear: Small Modular Reactors
Earl Russell Excerpts(5 days, 1 hour ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, I congratulate the noble Lord on living in Suffolk. Only a few weeks ago I had a meeting with Suffolk local authority leaders to discuss these very matters. He is right in the sense that, as I have already said, we are moving rapidly towards final investment decision on Sizewell C. I very much hope we will be able to get that over the line. We have committed £2.7 billion of funding through the Sizewell C devex subsidy scheme to support the project’s development during the current financial year. It consolidates the Government’s position as the majority shareholder in Sizewell C and is laying the foundations for final investment decision and, we very much hope, a 3.2-gigawatt nuclear power station that will power 6 million homes for 60 to 80 years.
Earl Russell (LD)
My Lords, this Government are clearly committed to making progress on SMRs, primarily to help power AI. AI will be a great consumer of power but equally has great opportunities to bring huge energy savings and efficiencies. I welcome the recently launched AI Energy Council, but are the Government doing enough to bring about the required AI energy efficiencies? I ask the Government to publish a full AI energy efficiency strategy for making the best use of AI that sets out clear targets for AI to be better than carbon-neutral before 2030.
Lord Hunt of Kings Heath (Lab)
My Lords, we are well aware that both AI and data centres will lead to a major increase in electricity demand. We are also aware of experience in the US, and interest in this country, in linking these AI data centres to nuclear development. The EN-7, the siting policy for nuclear sites, which we are debating in your Lordships’ House on Wednesday, gives us a more flexible siting policy as a result. We are well aware of the potential. We are working very hard to consider how we can encourage this development with private sector funding. I take the noble Earl’s point about the need for us to be very clear about where we are going in this area; I very much accept that.
Methane (Environment and Climate Change Committee Report)
Earl Russell Excerpts(1 week, 4 days ago)
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Earl Russell (LD)
My Lords, before I start my speech, I will reflect the comments that we have just heard. I did not manage to get into the noble Viscount’s Oral Question today, but I am deeply concerned about what the Americans are doing to the fundamental scientific basis for our understanding of climate, so I echo those comments.
As a member of this Select Committee, I speak in support of the report, and I thank our excellent clerks and researchers and everyone who made it possible, including our witnesses and our chair. If the noble Lord, Lord Jay, is a climate methane learner, at times I felt like a methane mediator. This was a difficult report to get over the line, but I am very pleased that we managed to do so. I also thank the Government and the Minister for their response. I note that we have a shared ambition in this area, if somewhat different approaches.
I will speak on the need for urgency in the global fight against climate change and on the need to buy time in our fight for survival, which can be brought about only by cutting our methane emissions now. I want to see the Government become the global champion that the pledge deserves. The UK has a real opportunity, having joined Brazil in co-chairing the Climate and Clean Air Coalition. The one thing that we do not have is time. As Bill McKibben has said:
“If we don’t win very quickly on climate change, then we will never win … It’s what makes it different from every other problem our political systems have faced”.
As we have heard, methane is the second-most significant greenhouse gas. While it has a short lifespan— I like the analogy between the bully and the teacher—compared to carbon dioxide, its potency as a heat-trapping gas is far greater: it is some 80 times more powerful than CO2 over 20 years. As the noble Baroness, Lady Sheehan, said, in that way, it is a devastating gas. Methane emissions contribute to one-third of global warming. Tackling methane is rightly recognised as one of the fastest and most cost-effective ways to limit the near-term global temperature rises.
Professor Forster, in his evidence to the committee, said that such actions
“could lower the trajectory of global warming from 0.25 degrees celsius per decade to 0.1 degrees celsius”.
Cutting methane emissions rapidly does not just limit future warming; it slows rates of warming over the coming decades to buy time to implement the deeper and far more complex decarbonisation actions that we must take. Methane cuts are essential in reducing the immediate, devastating and costly real-world impacts of extreme weather and crop loss that we face now and will experience much more going into the 2040s. We have no other policy options to buy time—this is the only one.
The noble Earl, Lord Leicester, said that we should rightly be proud of what the UK has achieved to date. We achieved a 62% drop between 1990 and 2020, a larger percentage than any other OECD country. The UK rightly played a pivotal role in the Global Methane Pledge at COP 26, where 150 countries signed up to reduce their methane emissions by 30% by 2030.
I welcome the Government’s engagement with our recommendations—that is beneficial. The Government point to the existing delivery plan for carbon budgets and the framework for tackling methane. They highlight ongoing work across sectors and are leveraging the UK’s expertise internationally. However, our report argues that the Government must go further if the UK is truly to solidify its role as a global leader and champion the methane reductions required. The Select Committee recommends publishing a dedicated UK methane action plan providing clarity and focus for all sectors, including sector-specific targets and plans. As the noble Lord, Lord Grantchester, said, it is disappointing that the Government have disagreed with this recommendation, saying instead that they are covered in existing budgets. While methane is indeed part of the broader net-zero strategy, the unique nature of methane and the opportunities it presents warrant a specific, transparent and dedicated plan outlining priority actions, costs and benefits.
I will just say a quick word specifically about the sector. Farming is now the key sector: it is the largest UK source, contributing half of all our methane, 85% of which comes from cattle. As the noble Lord, Lord Grantchester, said, farming is perhaps more exposed than any other sector in the UK. Indeed, as we move forward, we have very difficult choices ahead. It is important that we have a balance in these things, but there are certain quick wins that we can do. We need slurry management, selective breeding and the farming and food road map. As the noble Lord, Lord Trees, said, farmers have the knowledge but need the power to do something about this.
In our energy sector, we are wasting enough energy from venting and flaring to power 700,000 homes. Venting and flaring need to end. I point out the recommendation for urgent transparency and accountability in these sectors.
Turning to waste, we need to do more and make sure that we have food collection across the country and enough anaerobic digesters to make that target a reality. We need to do more on landfill and about the fact that waste crime is out of control in this country, with 18% of our waste ending up in the hands of criminals.
The Government mention the UK Emissions Trading Scheme Authority and are considering including methane emissions from the upstream oil and gas sector. This is welcome, but it is not the commitment needed to align with our international partners, who are developing robust standards, including for imports. Robust MMRV is critical for both domestic progress and international accountability. I hope that we will see a UK-EU ETS alignment soon and that the UK will meet EU standards in this area.
The report called for the UK to use its expertise to encourage the establishment of an international body to verify the methane pledge participants’ action plans. The Government’s response points to the Climate and Clean Air Coalition as being a well-placed body. We recognise that it is valuable, but we call specifically for a body focused on verification to ensure accountability and the transparency of data. Data from the UN’s alert system, highlighted at COP 29, showed a stark gap: more than 1,200 alerts about large oil and gas plumes were issued, but only 1% of those resulted in mitigation steps. Data is helpful but if nothing is done with it, it is no better than having no data at all.
The UK, having co-launched this, has a real opportunity. We should go beyond domestic action and do more in the international sphere. We should not be content with just keeping our work at home. We now have 25 satellites orbiting the world; super emitters have nowhere to hide. Abating leaks needs to be done on an international scale. As somebody in the UN said:
“It’s plumbing. It’s not rocket science”.
Abandoned fossil fuel infrastructure now emits more methane than Iran and is fourth-largest global source. The International Energy Agency’s Global Methane Tracker 2025 report, just issued, shows that global methane emissions are stubbornly high. There were nearly 120 million tonnes of methane emissions in 2023, and the global energy sector may have emissions that are 70% higher than officially reported.
I call on the Government to do more with our international oil and gas expertise, particularly in leak detection and repair, and to do more to help countries that are struggling to repair their leaks. This is one way in which the UK Government could demonstrate their leadership in this area and provide a very useful source of help to the globe.
To conclude, a dedicated methane action plan is necessary for clarity and focus, particularly for harder to abate areas. I call on the UK to go further and really be the true champion this treaty requires. Deploying our technical expertise to help identify and fix large leaks internationally is a powerful example of how we can drive action, slow the immediate pace of global warming and keep up the vital momentum on this crucial climate issue.
Energy Grid Resilience
Earl Russell Excerpts(2 weeks, 4 days ago)
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Lord Offord of Garvel (Con)
My Lords, I begin by expressing my sympathy for all those impacted by the recent blackouts in Spain, Portugal and beyond. This blackout should serve as a stark reminder of the consequences when the power grid fails. Prolonged blackouts are devastating. The collapse of the grid in Iberia highlights the vulnerability of our complex, interconnected systems that underpin modern life, as well as the profound human impact that such failures can have. We must ensure that this does not happen in Great Britain, as the economic and social consequences would be catastrophic.
The Government’s plan to rapidly build a grid that is dependent on naturally unreliable and intermittent renewables in just five years will severely compromise the reliability of our electricity supply. The stability of a grid depends on what physicians know well as inertia—the ability to resist destabilising fluctuations in frequency. This has been a key factor in the security and resilience of our grid over the years. Inertia is provided by turbines in nuclear, hydro and gas power stations, but it is not provided by solar and wind farms. Without sufficient inertia to buffer against sudden frequency shifts, the grid risks destabilisation, potentially triggering a domino effect of system failures that culminates in widespread blackouts.
The most recent annual report from Spain’s equivalent of NESO highlights the risk of relying too heavily on renewables. It concluded that the closure of conventional power plants such as coal, gas and nuclear has diminished the grid’s balancing abilities and inertia. What is deeply concerning is that the same trend is occurring here in the UK. Data from NESO has shown a steady decrease in grid inertia as gas and coal plants are replaced by wind and solar. The transition carries a significant cost, which exemplifies the flaws in much of this Government’s accelerated energy security strategy.
The imposed targets are burdening the British public with escalating costs as the Government push forward with a power system dependent on weather conditions rather than reliable, consistent baseload energy. Billions of pounds are being spent subsidising wind farms, expanding the grid and providing backup through reliable gas plants, yet the Government remain determined to meet the accelerated 2030 clean energy target without being transparent with the public about how this will be achieved.
The lessons from the Iberian peninsula’s experience are clear. We must maintain inertia in our grid to ensure its stability and resilience. Gas and nuclear power are essential for providing reliable baseload generation and inertia. I look to the Minister to provide clarity and assurance. Can he confirm NESO’s and the national grid’s preparedness for a blackout? Will he recognise the role that inertia plays in our power system and the impacts of declining inertia on grid stability? Finally, will he recognise that it is not a reliance on, to quote him, “international gas markets” that puts the UK at risk of blackouts? That lies squarely at the foot of renewables, which cannot provide reliable baseload electricity.
Earl Russell (LD)
My Lords, I thank the Minister for the Statement on the power outages across the Iberian peninsula. Our thoughts are of course with the 55 million people across Spain, Portugal, Andorra and parts of France who were affected.
The Statement rightly highlights the highly resilient nature of Great Britain’s energy. I welcome that we will continue to improve our resilience and ensure that our energy systems are robust and that we have the proper exercises in place. We note that a similar event in Great Britain—a total loss of power—is listed on the national risk register as high impact but very low likelihood. It is reassuring to hear that the Minister has been in regular contact with the National Energy System Operator and is working closely with industry to maintain the resilience of our energy infrastructure.
I also welcome the Government’s taking forward recommendations from previous exercises such as Mighty Oak. As the Minister has noted, the exact reasons behind the power failure remain uncertain. We note that independent examinations are going on and that the Spanish and Portuguese Governments and the European Commission are all examining the causes.
The truth is that there are probably several interlinked events that caused this power outage. Sadly, despite the fact that the causes are at the moment unknown, a “firestorm of disinformation” has already erupted, with some attempting immediately to blame the use of renewable energy. We echo the Spanish Prime Minister’s call for caution against misinformation and disinformation. Energy experts have been quite quick to dismiss renewables as the primary cause.
On disinformation, Carbon Brief notes that UK newspapers have already launched more incorrect editorials attacking our net-zero policies in the first four months of 2025 than they did during the whole of 2024. So I take this opportunity to ask the Minister, what actions are the Government taking to improve government communications and actively counter disinformation in this area?
What this incident does highlight, however, is the critical importance of investing in and upgrading our national grid. As we transition to clean energy, a closely synchronized dance has to happen between building grid capacity and developing clean power. The grid must be designed and invested in adequately, at the right time and with the right volumes, as renewable energy is added and demand for electricity grows. Significant investments are needed: some £77 billion over the next five years to increase electricity levels.
The UK is lagging behind, with grid infrastructure spending being only 25p for every pound spent on renewables. What measures are the Government taking to make sure that investment in our grid is keeping pace and meeting the investment we require?
I also want to ask the Minister about transformers. Following the fire at Heathrow, it has come to my attention that only one factory in the UK produces these bespoke bits of kit, and there are 12 to 24-month waiting times. These are crucial for upgrading our grid and making sure it continues to work, so can the Minister have a look at the transformer capacity issue?
We must learn any lessons, but a baseless rush to blame renewables as part of a culture war helps no one at all. Enabling the resilience and security of our energy grid is paramount. We must focus on the facts, invest strategically in our infrastructure and counter harmful disinformation to deliver a secure, affordable and clean energy future.
The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)
My Lords, I thank both noble Lords for their comments, and I join them in expressing my sympathies for those affected. I am glad to hear that power has been fully restored across the region.
As noble Lords have suggested, the Spanish Government are undertaking a review. We do not yet know the outcome, and I suggest that it is best to await the review before we can look properly at any potential lesson or impact on our own system. Clearly, it is entirely understandable that noble Lords should raise the question of the resilience of our own grid. The Secretary of State has been in regular contact over the past week with the National Energy System Operator, which has provided reassurance that there is no increase in risk to our energy supplies from that incident.
The intervention of the noble Lord, Lord Offord, did not come as a surprise to me. We still believe that the best way to secure energy independence is through clean power. The Office for Budget Responsibility has assessed that responding to future gas price shocks could be twice as expensive as the direct public investment needed to reach net zero.
I hope I can provide some reassurance on the issue of inertia. NESO continuously monitors the condition of the electricity system to ensure that there are sufficient inertia reserves to manage large losses. System inertia is the kinetic energy stored in the spinning parts of the generator connected to the electricity system. If there is a sudden change in system frequency, these parts will carry on spinning and slow down that change. System inertia behaves a bit like shock absorbers in a car’s suspension, which dampen the effect of a sudden bump in the road and keep the car stable and moving forward.
In the context of renewable energies, NESO has introduced new technologies such as flywheels to increase inertia and establish new commercial mechanisms to procure these on the GP system as more non-synchronous generation is built and makes up a large proportion of the energy mix. It has also introduced innovative new approaches to manage system stability and the system is designed, built and operated in a way that can cope with the loss of key circuits or systems, minimising the risk of significant customer impact.
As the noble Earl, Lord Russell, suggested, a similar event impacting Great Britain would be a national power outage, with a total loss of power across the whole of Great Britain. This is listed on the national risk register as a high-impact but low-likelihood event, as the noble Earl said. The Great British national electricity transmission system has never experienced a complete shutdown, or anything on the scale seen in Spain over the past few days. None the less, I accept that, as a responsible Government, we must prepare for all eventualities.
On the issue of transformers, I take the noble Earl’s point. Clearly, they are an essential part of the supply chain for our energy sector. We are due to receive an interim report from the review by NESO of what happened at Heathrow—indeed, I think it is due today. We will obviously study that carefully and, if it has implications in relation to transformers, we will consider them very carefully.
The noble Earl also mentioned Exercise Mighty Oak. This was clearly a valuable exercise undertaken by the last Government and we are committed to continuing the work to implement the actions that came from it.
As far as the grid is concerned, I very much take the noble Earl’s point. We know that it needs extending. In the first instance, we are reforming the prioritisation of connections to bring forward projects that are absolutely thought to be able to come forward immediately, rather than applications that will not go anywhere. We also recognise that connection reforms are a critical enabler for our clean power 2030 ambition, and we expect that this will bring forward about £200 billion of investment in network and project build by 2030.
Climate Change: Progress
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Lord Hunt of Kings Heath (Lab)
My Lords, I recognise the argument, but if every country that emitted the same emissions as the UK does took action, we would have a critical impact on reducing global greenhouse gas emissions. Obviously, we negotiate within the COP process to encourage multilateral agreement to reduce greenhouse gas emissions, but I think that the real lesson of this report is that it sets out in detail the risk to this country and the world of the climate change that will come unless we act towards achieving net zero and reducing our greenhouse gases. This is a very stark reminder of why we should not detract from our pathway to net zero.
Earl Russell (LD)
My Lords, the hottest day, the second wettest winter and the second worst harvest on record have all been in the last three years. Given that this report did not find evidence for scoring a single outcome as “Good” in terms of adaptation delivery, and little evidence of change, can I seek the Minister’s reassurance that the Government have heard the very urgent calls for action without further delay, and that the Minister accepts that this must serve as a turning point in our approaches to adaptation delivery?
Lord Hunt of Kings Heath (Lab)
My Lords, the noble Earl is absolutely right. The Committee on Climate Change said:
“There is … unequivocal evidence that climate change is making extreme weather in UK, such as heatwaves, heavy rainfall, and wildfire-conducive conditions, more likely and more extreme”,
and the points he raised are absolutely right. We take this report very seriously. We have been in office 10 months, and we are reflecting on the specific points that the committee has made, area by area. By law, we have to respond by October, and I assure the noble Earl we will take this seriously and give a serious response. As I said earlier, this will lead into the work that we need for the NAP4, starting in 2028.
Energy Prices: Energy-intensive Industries
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The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath)
My Lords, I of course recognise the challenge that high energy prices pose for UK businesses. I am very well aware that the Urgent Question in the Commons related to a ceramics company in the potteries, Moorcroft. Let me say at once that my thoughts are with all those workers affected, and I know that Ministers are working very hard with the company and the industry to talk through some of those issues.
I say to the noble Lord that the structure we have in relation to energy prices is the same as the one his Government left when they left office last July. We know that the main reason why we have high energy prices is our reliance on international gas and oil markets, which related back to the shock to the system from Putin’s invasion of Ukraine. We believe as a Government that the faster we move to decarbonise, the more we can provide energy security and cheaper energy, and that this is the best way to go forward. If anything came from the previous Question about the advice of the Climate Change Committee, it is that we cannot afford to let go or slow down in relation to climate change. We do not have that luxury; we need to press on.
Earl Russell (LD)
My Lords, our industrial energy prices are too high and our transition to net zero must not come at the cost of specific industrial sectors. The Minister has noted that the original Question in the Commons was in relation to our pottery industry. It is clear that the energy supercharger is helping, but what more can be done to make sure that it is helping all our industries? It is also no secret that the Government are looking at energy market reform in our domestic sector, so can the Minister say what action is being taken to help with industry’s energy costs? What thoughts have the Government had about setting up a permanent independent body to advise the Government on the complex matters involved in the energy market reform policy?
Lord Hunt of Kings Heath (Lab)
My Lords, the noble Lord is of course right to refer to the energy supercharger: £470 million is being contributed towards helping companies which are major energy users. Obviously, we look at the scheme and at whether any changes should be made, but as regards energy market reforms, we are certainly looking at a number of issues in relation to the electricity market. We are looking at issues to do with zonal pricing and the rebalancing of the cost of electricity and gas. But these decisions are not easy and there will be gainers and losers, so we have to take this very carefully. The ultimate answer to the noble Earl’s question is that we need to decarbonise as quickly as possible. That will give price stability and certainty to industry.
Infrastructure Planning (Onshore Wind and Solar Generation) Order 2025
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Lord Teverson (LD)
My Lords, I pay tribute to the persistence of the noble Baroness, Lady Hayman, on this subject and to how she has carried this end of Parliament on a number of occasions.
I normally agree with the noble Baroness, Lady McIntosh, on an awful lot of things but I do not quite agree with her here. I spent most of my bank holiday break in an EV in Yorkshire, and I was delighted at how easy it was to recharge it. It was the first time for quite a while that my wife and I had been on a long journey in an EV. The difference in the charging network was absolutely amazing. I praise the previous Government’s EV charging policies as much as I praise the present Government for achieving that, but I recognise —from the Cornwall aspect—that there is a challenge here for really rural areas, and certainly when tourists come to our areas.
I wanted to contribute today to say that I very much welcome this SI and the move to go back properly to onshore wind. It is an important way in which our landowning and farming communities can diversify their income.
I turn to the limit on solar. On every solar farm I have visited in the past few years, I would ask the owners, “What is the energy capacity of this?” They would say, “It’s 49.5 megawatts”, because they do not want to trip over that barrier into the national planning scheme. So I welcome the fact that this SI will make that a lot easier.
However, the one question I would like to ask the Minister—this was raised by the Opposition Benches in the earlier debate on energy security—concerns warehouse roofs and commercial roofs. I am a great supporter of solar but, like me, many people ask, “Why are we not managing to have many more solar applications on existing commercial, industrial and car park roofs?” I recognise that there are often different owners—there is the landlord, and then there is the company that occupies under a lease—so the relationship between owners for commercial buildings is never easy. However, I say this to the Minister: it cannot be beyond the ability of the Government to find a mechanism to incentivise that to happen. It would get huge plaudits from all sides of political opinion if we managed to achieve that. It would also help with the understandable reservations that there sometimes are around the agricultural use of solar, by showing that the right things are happening in other areas too.
I would be interested to understand from the Minister when the planning regime—as we know, the Planning and Infrastructure Bill is in the other place at the moment —will become law, as it surely will. It may be amended in various ways as it passes through both Houses, but might it affect this matter in any way?
I very much welcome this SI and hope that we will see a rejuvenation of onshore wind. As I often say, from my own house, I can see—the last time I counted, at least—between 30 and 40 wind turbines. I live on a hill and, to me, they are part of a living countryside. There are right places to put them and there are wrong places to put them; we should leave it to local authorities to decide what those are.
Earl Russell (LD)
My Lords, I will speak in favour of this order. I thank the Minister for outlining its purpose.
The Liberal Democrats have always championed renewable energy. For too long, this country has suffered from the failures of the previous Conservative Government to invest in clean power and to insulate our homes, contributing directly to the energy crisis and leaving householders and businesses facing soaring bills. The vast majority of people in this country want more action on climate change. That is why we welcome this instrument as another important step in supporting the deployment of onshore wind and solar, which are both crucial to achieving the Government’s mission for clean power by 2030.
We are particularly supportive of the lifting of the effective moratorium on onshore wind. This was a deeply short-sighted and irresponsible policy, introduced via the planning changes in 2015 and 2016, which created a de facto ban in England. This ban limited deployment and caused the pipeline of projects to shrink by over 90%, with less than 40 megawatts of onshore wind generated during this decade. The reintroduction of onshore wind projects of over 100 megawatts into the nationally significant infrastructure project regime is crucial. The order reverses those damaging policies and places onshore wind on the same footing as other generation technologies such as solar, offshore wind and nuclear power stations. This provides an appropriate route for large-scale projects and offers greater certainty to industry.
Similarly, we support the decision to raise the NSIP threshold for solar projects from 50 to 100 megawatts. This change is needed in part due to technological advances in solar panels and aims to ensure that applications are processed efficiently through the appropriate planning regime. The previous threshold incentivised developers, as we have heard, to cap their capacity below 50 megawatts to avoid triggering the NSIP process. Raising the threshold should incentivise projects to develop on a more optimal and efficient scale and to ensure that mid-sized projects access a more proportionate planning route via local planning authorities. What assessments have been made of local planning authorities’ capacity and funding requirements to take on this extra work? They must be adequately resourced and supported to handle the influx of potentially larger-scale solar projects.
While we support the ambitions to streamline planning for major projects, concerns remain. The NSIP regime involves decisions made by the Secretary of State, and some respondents to the consultation expressed concern that this process might overly centralise decision-making and bypass local authorities and communities. This is particularly pertinent when considering large projects that can have a significant impact on local landscapes and communities. It is vital that the Government strike an appropriate balance between building nationally important infrastructure, protecting our precious landscapes and ensuring that local communities have a meaningful say. This Government must do more to work in partnership with local communities and ensure that they benefit from the infrastructure that they host—more “working with” and a bit less “doing to”.
How will the Government ensure that local voices are genuinely heard and their concerns addressed in the NSIP examination period, particularly for onshore wind? Can the Minister provide more detail on timelines for these frameworks and assure us that they will ensure that the balance between deploying renewable energy, protecting nature, ensuring food security and considering where best to locate projects is effectively struck?
Finally, the decision to set the solar threshold at 100 megawatts aims to avoid artificial capping and incentivise optimal site sizing. The impact assessment mentions monitoring and evaluation plans, looking at whether projects are clustering below the new thresholds and whether planning timelines for projects have increased. Can the Minister confirm how the planned post-implementation review and ongoing monitoring will assess whether the 100-megawatt thresholds are achieving the desired efficiency and optimal site sizing? All these projects will require timely grid connections, and I encourage the Government to support agrivoltaics.
Other noble Lords spoke about the need for more solar on rooftops and in car parks; for example, France generates 5% of its electricity from car parks alone. The Government may want to look at an amendment to the Planning and Infrastructure Bill on that. I very much welcome signs from them that new homes will have solar panels installed. There are issues around the way that some of the warehouses have been designed; they have not been built to take the weight of solar panels.
These legislative changes are a necessary step, but successful implementation requires careful consideration of local impacts and ensuring that our planning system is robust and balanced and takes communities with it.
Lord Deben (Con)
I apologise to the Minister for missing the first moments of his speech, but as somebody who was taken to a tribunal by those who do not believe in climate change for daring to suggest that we had in effect banned onshore wind, I feel very strongly that this is an ideal moment to say how important onshore wind is.
Near to where I live in Suffolk, in the town of Eye, which I used to represent in the old Eye division, there is some onshore wind. When it started, an awful lot of people opposed it; they thought it was going to be very ugly and did not like it. Now it has become iconic. Recently, I was pleased to see—this Committee’s chair, the noble Baroness, Lady Bull, will be interested in this—that an attractive ballet was put on using it as the background, showing a wholly different way in which people have accepted it.
I get very tired of people who are very much in favour of having electricity themselves but complain about its expense, which is the cost of gas, and then are opposed every time to having any further renewable electricity. We ought to be supporting this and seeking ways to introduce onshore wind, wherever that is suitable. There are places where it is not suitable; that is perfectly true, as the noble Lord, Lord Teverson, rightly said.
Onshore wind and offshore wind need to be linked to the national grid system, but I hope the Government will recognise that the best way to get support for that is always to find the most appropriate way and try to avoid unnecessary pylons—then you can honestly say to a community: “I’m afraid that here there is no alternative”. I hope that people will recognise that, if we spend a great deal more on the distribution of electricity, the only people who will pay for it are the customers. We have to get that balance right. I hope that the Government will look more closely at alternatives and be able to show why they choose pylons.
On what my noble friend Lady McIntosh said, I have to say that it is not acceptable. It is no good; we will have to take electricity from where we make it to where we use it. If people want electricity, that is what we have to do. Frankly, there is no connection whatever between this and what happened in Spain. The constant desire to write down what is so essential to us seems to me very sad.
Great British Energy Bill
Earl Russell ExcerptsWednesday 30th April 2025
(3 weeks, 3 days ago)
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Earl Russell (LD)
My Lords, I support the government amendment that has been negotiated and agreed with the noble Lord, Lord Alton. The Liberal Democrats very much welcome the step by the Government to ban solar panels linked to Chinese slave labour from Great British Energy’s supply chains. It is a decision born of pressure from members of all political parties and the sheer strength of feeling across both Houses. I am thankful to the noble Lord, Lord Alton, for bringing these issues, and to the Minister and his Bill team for taking the time to meet me and others. I am thankful for their careful consideration and determination to find a way forward.
Compromise in politics is not a weakness; it is essential and a strength, and it makes for better legislation. Rightly, this amendment has been widely welcomed in the industry. On these Benches, we are clear that our net-zero ambitions cannot and must not be built on the back of slave labour. We have always argued that GB Energy needs to lead by example, as a state-supported company. Equally, we do not wish to see GB Energy operating at a disadvantage compared with other companies that are also in receipt of government funds in the form of contracts for difference.
Last week, the UK Government hosted the International Energy Agency summit on energy security, in a world that has changed literally since we last met, with tariffs, soaring electrical demand, restrictions on the trade of rare earth minerals, cyberattacks, and physical attacks on energy infrastructure. Our energy security is our national security, and our policies and understanding of what energy security means in practice have not been fully adequate. As the head of the International Energy Agency rightly said last week, green technology
“should really be produced in a socially and environmentally acceptable way”.
It should not be built on the backs of slave labour and exploitation.
For far too long, we have allowed our supply chains to be tainted by credible evidence of modern slavery. Yes, this has radically reduced the prices of solar panels, but at what human cost? This amendment, to my mind, marks a real turning point, and one of significance. It forces a difficult balance between the need to speed towards our net-zero ambitions and the ethical imperative to avoid complicity in human rights abuses. We believe that the ethical choice—the choice to stand against modern slavery—must prevail. We must engage and co-operate where we can with China but, equally, we must start from a position of strength and from clear moral grounds.
Great British Energy will now be a sector leader in developing ethical supply chains, and I welcome its recent appointments in this regard. However, we must ensure that this ban does not unfairly disadvantage GB Energy in comparison with other operators. Can the Government continue to look at this disparity? We must work to ensure this does not damage the rollout of community energy programmes. Critically, the real, long-term solution is not simply in policing imports; it is in developing our own capacity. We need a real, concerted effort to develop and grow our fledgling domestic solar panel manufacturing capacity. How can GB Energy help with that? We must also work with our European allies to build manufacturing capacity and resilient and ethical supply chains. We urge the Government to bring forward a comprehensive plan detailing how they will support domestic manufacturing and foster international collaboration to reduce our reliance on potentially tainted imports.
Could the Minister outline in more detail what the relaunched Solar Taskforce will do to identify and develop these resilient and sustainable supply chains, free from forced labour? Crucially, when can the House expect more detailed plans from the Government on how this diversification and domestic supply development will be achieved? This amendment is a vital step, but it must be the beginning and not the end of our efforts. We must ensure that our clean energy future is built on a foundation of ethical sourcing, strong domestic industry and international co-operation.
Lord Offord of Garvel (Con)
My Lords, we welcome the Government’s decision to listen to the constructive challenge from this House and improve the Bill by ensuring that Great British Energy supply chains are not associated with modern slavery in China. I give my thanks and gratitude to the noble Lord, Lord Alton of Liverpool. Without his careful consideration and persistence in raising this issue, we would not have achieved such a positive change to this legislation.
The amendment to the Bill serves as a simple yet essential safeguard. It ensures that public funds will not support companies tainted by modern slavery in their energy supply chains. The UK has stood against forced labour and exploitation for many years. If this Government are serious about their transition to clean energy, which they refer to as being just, we must ensure that Great British Energy, as a publicly backed entity, operates to the highest moral and legal standards.
There is clear precedent for this approach. The Modern Slavery Act 2015 requires companies to take responsibility for their supply chains. Yet we know that modern slavery remains a serious issue in the global energy sector, particularly in sourcing solar panels, batteries and raw materials such as lithium and cobalt. If there is credible evidence of modern slavery in a supply chain, public funding must not flow to that company. This is a basic ethical standard. It is also a matter of economic resilience, because reliance on unethical supply chains creates risks for businesses, investors and the public. Therefore, this amendment strengthens the integrity of our energy policy. It aligns our economic ambition with our moral obligations, and it sends a clear message that Britain’s clean energy future must be built on ethical foundations.
To conclude, I once again thank the noble Lord, Lord Alton of Liverpool, and the many other noble Lords who supported him in securing this powerful victory. This positive change to the Bill serves as a testament to the integral role of this House in scrutinising and ultimately improving legislation.
Wales: Nuclear Power Generation
Earl Russell Excerpts(3 weeks, 4 days ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, that is a very good point indeed. Of course, one has to face up to the fact that the Scottish Government are not in favour of new nuclear development, despite the rich heritage there, and despite how much of Scotland’s electricity at the moment comes from nuclear development. But certainly, the noble Earl is absolutely right to say that, in these kinds of discussions, the role of nuclear is very important, not just for what it provides but for the growth it can bring to our economy, very highly skilled jobs and a lot of infrastructure investment as well. So the case for nuclear is very strong indeed.
Earl Russell (LD)
My Lords, the Welsh Government are clear that the development of Wylfa has the potential to be the single largest investment project in Wales. I welcome the response the Minister has given, saying that work will be done on this in due course, but could he be clearer on what “in due course” means? Can I push him further? Will serious consideration be given to using these sites for either long-duration energy storage or for data centres if the Government decide that they are not fit for future nuclear?
Lord Hunt of Kings Heath (Lab)
My Lords, I am very wary of getting into detailed speculation about the future of Wylfa. Clearly, it has great potential. I am not prepared to define “in due course”, but I can say to the noble Earl that we recognise the urgency of the situation in giving certainty to the market about our level of nuclear ambition going forward over the next 10, 20 or 30 years. On the issue of AI data centres and the links to AMRs, we very much recognise the potential there; we are discussing that with developers, and we are also looking at our regulatory system to ensure that it is fit for purpose in relation to that kind of development.
Ecodesign for Energy-Related Products and Energy Information (Amendment) (Northern Ireland) Regulations 2025
Earl Russell Excerpts(1 month, 4 weeks ago)
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Earl Russell (LD)
My Lords, I thank the noble Lord, Lord Hunt, for introducing this SI. I will concentrate most of my remarks on the details of the SI before us rather than the amendment in the name of the noble Baroness, Lady Hoey.
Before I do that, I turn to the reasons for the regret amendment. Once again, the strength of feeling on these matters is clear to see, as shown by the speakers on various sides of the House. We on these Benches supported the Windsor Framework as a means of moving on from the stalemate following Brexit, but it is far from perfect and there clearly remain real and legitimate concerns about the lack of parliamentary oversight on these matters and the impact that Brexit itself and the Windsor Framework are having on businesses in Northern Ireland.
It is strange that the Government chose not to consult Northern Ireland on this SI. Given its political sensitivity, it would surely always be better to have consulted. I note that there is no legal duty to hold the consultation as the instrument does not make any substantial changes, but I view consultation with Northern Irish authorities as a different class of consultation and more a matter of common courtesy.
I note that the full impact assessment has not been produced. The Explanatory Memorandum says that the changes brought in
“are expected to have no significant direct or no significant indirect, impact on business, charities or voluntary bodies”.
As part of the reset in our relationship with the EU, I hope the Government will review the oversight mechanisms for how they consult the relevant sectors in Northern Ireland. I would welcome a response from the Minister on this point.
I turn to the tabling of the amendment. I must say, although it is absolutely the noble Baroness’s right to table her amendment, that it is hard to see, in my mind at least, that this SI justifies it. Everything that she may wish to say in the main Chamber could have been spoken just as clearly in the Prince’s Chamber at a more convenient time for everyone involved.
The SI itself will ensure that the latest EU rules on product-specific ecodesign and energy labelling automatically apply to Northern Ireland and can be enforced there, as required by the Windsor Framework. The new rules are updating previous Northern Ireland regulations from 2010 and 2011. The new regulations seek to ensure that household and some office items, such as tumble dryers, have a standby mode, and that for other items, such as mobile phones or tablet computers, consumers can acquire some spare parts.
The Government rightly argue that these regulations will bring benefits to Northern Ireland’s residents as they will save money on reduced electricity usage and be able to repair mobile devices if they break, saving the need to buy again from new. If the Department for Energy and Net Zero thinks that these regulations are good for energy efficiency for the people of Northern Ireland, while I welcome the fact that the Minister wants to bring the regulations to the whole of the UK, why can that not happen until March 2026? Is it possible to bring that forward? Clearly, if we could align these regulations across the whole of the UK and get these benefits for everybody, to my mind at least, that would be a good thing. There are staggered start dates for the regulations coming into force to replicate the staggered nature of the EU regulations themselves. The first will come in on 9 May 2025.
This statutory instrument has not been drawn to the special attention of the Houses by the Joint Committee on Statutory Instruments. However, the SI was noted as an instrument of interest by the Secondary Legislation Scrutiny Committee. It points out that
“while manufacturers from Great Britain (GB) selling into NI or the EU will have to meet the EU’s new product standards, the Department says that “the majority” of the products covered by this instrument will also still be compliant with GB standards”.
The committee also notes that the impact of enacting this SI is that, further forward,
“the legislation always automatically reflects the most up to date EU rules on product-specific ecodesign and energy labelling, removing the need for further secondary legislation to implement updates in UK law when the EU rules are replaced in a way that affects NI”.
The committee recommends that
“it would be helpful to also publicise future changes through a Parliamentary Statement to both Houses”.
Will the Minister respond to this suggestion? In his opening remarks, I think he talked about memorandums of understanding; if could he just clarify that point for me, it would be appreciated.
I note the Minister’s points about being on a journey on these matters. In general, we welcome these measures for ecodesign and would like to see them implemented across the UK.
Baroness Bloomfield of Hinton Waldrist (Con)
My Lords, I too thank the Minister for introducing this SI, which seeks to update the existing ecodesign and energy labelling regulations for Northern Ireland in line with the Windsor Framework. These amendments ensure that Northern Ireland continues to adhere to EU rules on energy-related products, reflecting the requirements of the framework. While the Government’s intention behind this statutory instrument is understood, there are several aspects that warrant closer scrutiny and further clarification. I note the concerns of the noble Baroness, Lady Hoey, about the ramifications of these regulations on small businesses and consumers, as reiterated by other noble Lords in the House.
Before examining the impact and provisions of the current measures, we should consider the history behind them. The previous Conservative Government had a long-standing commitment to improving environmental standards while ensuring that businesses and consumers were given the tools necessary to thrive in an energy-efficient economy. When the ecodesign and energy labelling regulations 2021 were first introduced in this House, they focused on reducing carbon emissions through ensuring that products in the market met higher energy-efficiency standards. These regulations set minimum standards for products that consume energy, helping to lower energy bills for consumers and reduce the environmental impact across the economy.
In practice, products placed on the Northern Ireland market will remain subject to the EU energy-efficiency and labelling standards. These updates are designed to ensure that Northern Ireland’s product offerings continue to meet the high environmental and energy-efficiency standards set by the EU. These amendments to the ecodesign regulations seek to enhance energy efficiency by imposing stricter performance requirements on a wide variety of products, including household appliances, lighting products and electronics. Can the Minister provide further details on the specific impact these regulations will have on businesses, particularly small and medium-sized enterprises in Northern Ireland? How do the Government intend to ensure that businesses are not burdened by excessive compliance costs or administrative hurdles when adapting to these new requirements?