Heat Pumps

Debate between Lord Callanan and Baroness Whitaker

Wednesday 6th March 2024 Lords Chamber

[Lord Callanan (Con)]

Of course there is no such things as a boiler tax and therefore it is impossible to scrap it; but if the noble Earl is asking about the clean heat market mechanism—which is not a boiler tax—we will be implementing it because it is an essential part of meeting that 600,000 target and, of course, our carbon budgets.

[Baroness Whitaker (Lab)]

My Lords, installers say that heat pumps can be installed in flats—not all of them, but quite a lot of them—and a lot of people live in flats. The problem seems to be with the manufacturers, who are reluctant. What will the Government do to enable heat pumps to be installed in flats where there is space?

[Lord Callanan (Con)]

Of course the grants are also available to anybody living in a flat. Sometimes there are space constraints, because you need an outside condenser unit and, potentially, a new hot water cylinder. The primary means of decarbonising flats will almost certainly be heat networks, which could of course be powered by heat pumps.

Electricity Network Connection Action Plan

Debate between Lord Callanan and Baroness Whitaker

Wednesday 22nd November 2023 Lords Chamber

[Baroness Whitaker]

To ask His Majesty’s Government when they intend to publish the electricity network connection action plan promised for the summer in Powering Up Britain: Energy Security Plan.

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, the Connections Action Plan is published today. The plan will significantly reduce connection delays from the current average of five years to no more than six months beyond the date requested by the customer. It will release 100 gigawatts of spare capacity, equivalent to around a quarter of electricity needs in 2050. The plan also establishes an Ofgem-chaired monthly connections delivery board to ensure timely and effective implementation; that board will first meet on 6 December.

[Baroness Whitaker (Lab)]

My Lords, in declaring that I am in receipt of an IPT fellowship in wave energy, I thank the Minister very much for that reassuring news, but one consequence of the essential greater grid capacity could be many more unpopular and unsightly pylons. What thought have the Government given to supporting burying them, or to Andrea Leadsom MP’s proposed amendment to the then Energy Bill in the other place? The amendment said:

“Within six months of the passage of this Act, the Secretary of State must by regulations provide for a fast-track planning process for electricity pylons along motorways and rail lines”,


which would considerably lessen the visual impact.

[Lord Callanan (Con)]

I congratulate the noble Baroness on tabling her Question for today, which is a fantastic coincidence and shows her great foresight on this. She is right that the construction of new electricity infra- structure, particularly pylons, is a controversial matter, particularly in the communities that are affected. She will know that the Winser review made a number of recommendations as to how we can involve communities further and take them with us on these plans. We are taking forward all those recommendations.

2030 Emissions Reduction Target: Heating

Debate between Lord Callanan and Baroness Whitaker

Tuesday 5th September 2023 Lords Chamber

[Lord Callanan (Con)]

The noble Lord is right about the efficiency of heat pumps and about the cost of electricity. Later this year we will issue a consultation on so-called price rebalancing, which will attempt to bring the electricity price down relative to gas.

[Baroness Whitaker (Lab)]

My Lords, will the Government turn their mind to trying to encourage heat pump installers to install them in flats, where a large proportion of UK residents live? In other countries, they can do this; obviously, it is not feasible in all cases, but in many cases it is.

[Lord Callanan (Con)]

The noble Baroness makes a valid point. Heat networks are probably more appropriate for most flats—for instance, you could have one heat pump in the basement that would heat all the flats—but for some cases she is right.

Green Investment

Debate between Lord Callanan and Baroness Whitaker

Tuesday 7th March 2023 Lords Chamber

[Lord Callanan (Con)]

I assure my noble friend that we are talking to the US about the provisions, but the legislation is the legislation. We all know the history of why it ended up as it did in the US Congress. Nevertheless, we will continue to engage the US, make our points and argue for open, free and fair competition.

[Baroness Whitaker (Lab)]

My Lords, yesterday, Platform and Friends of the Earth Scotland published a report which showed how oil and gas workers could lead a just energy transition, with a training scheme that was standardised between offshore oil and gas and the new offshore industries, including wind, tidal and wave, to allow workers to take their skills to the new sectors. Will the Government act on those recommendations?

[Lord Callanan (Con)]

The noble Baroness has an advantage on me as I have not seen that report, but we have the North Sea transition plan, which does many of the same things that she talked about. As I have said before, we still have a need for oil and gas in the medium term during the transition, but the essential skills that many of those workers bring will be very useful in the new economy.

Electricity: Decarbonisation

Debate between Lord Callanan and Baroness Whitaker

Wednesday 21st December 2022 Lords Chamber

[Lord Callanan (Con)]

We have a number of energy strategies, including the energy security strategy and the net zero strategy. As I said, we will set out further plans in this area. My noble friend is right that intermittency is a problem, but I remind him that we have just invested more than £600 million in a new nuclear power station at Sizewell, and abated gas power will also be available.

[Baroness Whitaker (Lab)]

My Lords, before asking my question, I first congratulate the Minister on the Government’s recent announcement earlier this month that the Government are proposing to offer guaranteed prices via contracts for difference for wave power, to enable this important technology to get off the ground. Perhaps that is a small answer to the question from by the noble Lord, Lord Moylan. Can the Minister say more about government support for energy generated by community enterprises, including via the Procurement Bill?

[Lord Callanan (Con)]

I thank the noble Baroness for her support. She is right in that we allocated CfD support of 40 megawatts of wave and tidal stream power in the last CfD round. We want to encourage community energy and we will do all that we can, working with Ofgem, to make sure that it is supported, because it is an important form of generation that we want to secure.

Queen’s Speech

Debate between Lord Callanan and Baroness Whitaker

Monday 16th May 2022 Lords Chamber

[Lord Callanan (Con)]

We hope that it will do. Of course the market is in turmoil at the moment, but the noble Lord rightly pointed out that we have some very advanced LNG offloading facilities in the UK. We can play our part in helping parts of the EU that do not have LNG terminals, through the interconnection pipeline. But it is an international market; there is reduced supply and, of course, we all know that the price is at sky-high levels at the moment.

However, the current volatility in global energy prices and security concerns only underscores the importance of building strong home-grown renewable sectors and reducing our reliance on all fossil fuels. The ultimate way to deal with the high gas price is of course to use less of it. That is why this Government are so excited about hydrogen, which the noble Lord, Lord Bilimoria, and others asked about. My noble friend Lord Liverpool and the noble Lord, Lord Grantchester, asked specifically about our plans for so-called green hydrogen. I am pleased to tell the House that we are introducing a comprehensive package of measures to get these projects off the ground and help this outstanding new technology to thrive in the British marketplace. The global market for these technologies is for the taking, and we have the innovation and engineering expertise to be world leaders, just as we are becoming world leaders in EV battery technology.

I reassure my noble friend Lord Young that we have provided £30 million-worth of funding to support vehicle-to-everything projects, and we will provide a further £11.4 million of innovation funding. The noble Lord, Lord Birt, and my noble friend Lord Leicester raised an important point about electric vehicles—EVs. We recently announced our electric vehicle strategy, which sets out our vision and action plan for the rollout of effective vehicle charging infrastructure in the UK; I actually agree that there is much that we can do to improve that. Of course, electric vehicles will not take off unless the appropriate charging infrastructure is in place.

The noble Baronesses, Lady Whitaker and Lady Hayman, and my noble friend Lord Liverpool all spoke about the important subject of tidal power, and they are right in some respects. Along with copious wind, the UK is also blessed with strong tides. The Government’s position is that tidal power could well contribute to our energy mix, as we transition towards a carbon-neutral power sector. Indeed, the energy security strategy commits to aggressively exploring the potential of tidal power to contribute to our net-zero ambitions.

Of course, building these projects requires finance, which is why the Government are introducing the UK Infrastructure Bank. This also answers the question of the noble Baroness, Lady Kramer—

[Baroness Whitaker (Lab)]

I apologise, but my questions were about wave power as well as tide power. It would be very helpful if the noble Lord could tell us what the Government are doing to further wave power.

[Lord Callanan (Con)]

We are funding a number of innovative projects—from memory, I think that there was one in the Scottish islands—helping to explore the potential for wave as well as tidal power. I would be happy to write to the noble Baroness with more details on that.

I turn to the question of the noble Baroness, Lady Kramer, on the financial capacity of the infrastructure bank compared to the European Investment Bank, which used to invest around £5 billion a year in the UK. However, the EIB has a broader focus than the UK Infrastructure Bank, which is not a direct replacement for it.

The noble Viscount, Lord Chandos, asked why the Government chose to privatise the green finance bank. The bank had a targeted mandate to mobilise private finance, and, when it did so, it was sold. However, as I said, the UK Infrastructure Bank has a broader mandate, spanning both investment in green technologies and infrastructure projects needed to tackle climate change and support economic growth across the UK.

The noble Lord, Lord Redesdale—I do not see him in his place—asked me about carbon reporting. The UK’s economy-wide sustainability disclosure requirements regime will require businesses and investment products to report on their impact on the climate and the environment. Legislation introducing these changes will be brought forward when parliamentary time allows. I apologise; I can see the noble Lord now.

Moving on to the environment, we know that we live on one interconnected planet and that it is our duty to guard it for the next generation. I welcome my noble friend Lord Harlech’s contribution to the debate on rural issues. His father was a champion of the countryside, and I am glad that he continues to speak passionately about rural issues. I am sure that he, my noble friend Lord Smith and the noble Baroness, Lady Donaghy, have already acquainted themselves with the Levelling-up and Regeneration Bill introduced to the other place last week, and I encourage their contributions when that Bill makes its way to this House.

We also want to ensure that there is enough food for everyone, even as the climate changes. That is why we are positioning the country to become a world leader in precision breeding technologies such as genetic editing. I welcome the recognition from the noble Baroness, Lady Hayman, that this can be of huge benefit to the country.

Alongside this, leaving the EU has enabled us to improve our animal welfare standards. The Animal Welfare (Kept Animals) Bill delivers on three government manifesto commitments on animal welfare and is a high priority for the Government.

I reassure my noble friend Lady McIntosh that the Government are committed to securing free trade agreements that are tailored to British firms and the economy, and, of course, are not compromising our environmental, food and animal welfare standards. We are also working hand-in-hand with farmers on our plans for a renewed agricultural sector, which will transform the way we support farmers in the UK.

In conclusion, I thank all noble Lords for some excellent contributions. I apologise that, with almost 60 speakers, I was not able to address all the points made in the time I have available; in fact, I am already over my allotted time. However, we covered from financial services to farming, economic crime and energy security. The Queen’s Speech we have debated this evening will help to strengthen our country after a turbulent few years.

Climate Change

Debate between Lord Callanan and Baroness Whitaker

Tuesday 29th June 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord is of course quite right, and we do have a route to get there. We will be publishing a number of sector strategies, as I mentioned in my opening Answer, including the transport decarbonisation plan and the heat and buildings strategy, which will illustrate to the noble Lord exactly how we will get to the destination that he refers to.

[Baroness Whitaker (Lab)]

My Lords, it has been reported that over £400,000 was donated to the Conservative Party by firms that subsequently obtained licences to explore North Sea oil and gas. How does the continued extraction of fossil fuel square with the Government’s policy of carbon-neutral energy when hydrogen gas and biogas are capable of coming onstream?

[Lord Callanan (Con)]

The noble Baroness should read the Climate Change Committee report, which itself recognises the ongoing demand for oil and natural gas, including in all scenarios for how the UK will meet its target for achieving net-zero emissions by 2050.

Net-Zero Carbon Emissions

Debate between Lord Callanan and Baroness Whitaker

Monday 7th June 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Baroness is right that we need to involve all members of society in this. We have done a lot in this space. Since 2019, we are funding or running 13 deliberative dialogues on a range of net-zero issues such as net-zero homes, heating and transport, decarbonisation, and so on. A lot is going on in this space.

[Baroness Whitaker (Lab)]

My Lords, will the Government let us know how they propose to get many more members of the public to commit to or be remitted the considerable expense of exchanging their gas boilers for ones with zero carbon emissions? What will be the carrot and what will be the stick?

[Lord Callanan (Con)]

The noble Baroness is right that this will indeed be a challenge. If she will be patient, we are planning to publish our heat and buildings strategy in due course. That will set out how our industry and consumers can take the immediate actions they need to take in order to reduce emissions from all buildings, both industrial and commercial.

Heat Pumps

Debate between Lord Callanan and Baroness Whitaker

Monday 22nd March 2021 Lords Chamber

[Lord Callanan (Con)]

The noble Lord makes a very good point. I have worked closely with local authorities on many of these schemes. The heat and buildings strategy is a priority, and we are aiming to publish shortly after the conclusion of the local elections in England and, of course, the elections in Scotland and Wales. The strategy will set out the important role of local authorities in supporting heat decarbonisation, including raising awareness of the support available to increase voluntary uptake of low-carbon heating systems.

[Baroness Whitaker (Lab) [V]]

My Lords, one of the biggest problems in reducing carbon emissions is domestic gas heaters. What are the Government doing about finding a way to enable residents of blocks of flats to exchange their gas heaters for electric ones?

[Lord Callanan (Con)]

The noble Baroness draws attention to an important problem. Of course, given the diversity of heat demand, no one solution can provide the best option for everyone; we suspect that a mix of technologies and customer options will need to be available if we are to be able to decarbonise heat at scale, particularly in blocks of flats.