Gas-fired Power Stations

Debate between Lord Callanan and Lord Redesdale

Thursday 14th March 2024 Lords Chamber

[Lord Callanan (Con)]

My Lords, the essential misunderstanding of the energy system from the noble Baroness continues apace. The answer to the noble Baroness’s question is that we need both. We need long-duration energy storage, long-term battery storage, pumped storage and long-term hydrogen energy storage—all of which we are progressing. We have the most ambitious plans in Europe in all those areas. However, all independent forecasters who have looked at this, including the Climate Change Committee, agree that, in addition to that, we may need gas-fired generation, of relatively short duration and maybe only 1% or 2%—obviously, the Greens would prefer the lights to go out in their yurts before the rest of us progress in an advanced industrial society. This is essential contingency planning, and we make no excuses whatever for saying that the energy security of the UK is our priority. We can do that in a net-zero scenario, and we will progress that.

[Lord Redesdale (LD)]

My Lords, I have a question about baseload capacity. Under the present Government, the number of larger generators on the grid has fallen quite considerably. Due to that, we will obviously need gas-fired power stations in the short term. However, there is a problem there, because the Minister is talking about short-term capacity. Can he say whether those investing in gas power stations would see a return on investment? The reason why gas-fired power stations have failed to be built over the last 10 years is that, because of the CfD, it has been almost impossible to make the financial case for building those power stations.

[Lord Callanan (Con)]

The noble Lord is right in that the number of larger generators on the system is falling, with the elimination later this year of coal generation —we will have phased it out completely. He is right, again, that the gas generators that we are talking about—which will be some refurbished existing plants, but also a few new ones—will be able to take part in the capacity market auctions. These are essentially auctions for back-up capacity that may be required in certain scenarios.

Winter Heating Initiatives

Debate between Lord Callanan and Lord Redesdale

Thursday 7th July 2022 Lords Chamber

[Lord Callanan (Con)]

Well, we could spend the whole of this Question Time debating those issues. The noble Baroness makes some good points. I am sure that we will have some extensive discussions on those issues during the passage of the Energy Bill. On energy efficiency, I agree with her, of course. It is no secret that I have been working with energy suppliers to try to put in place additional energy-efficiency measures. We will continue to take those forward.

[Lord Redesdale (LD)]

The simplest way of saving money on household bills is through insulation. Will the Government say whether they will redirect their successful efforts in insulating people’s roofs into draught-proofing people’s houses? Some 15% of the energy in a house is wasted through draughts, and a cost-effective method of dealing with that would be a national campaign to deal with draughts in people’s homes.

[Lord Callanan (Con)]

The House and I need no convincing of the value of energy efficiency. As I constantly remind the House, we are already spending considerable sums on energy-efficiency schemes, but I am sure that there is always more that can be done.

Carbon-neutral Homes

Debate between Lord Callanan and Lord Redesdale

Thursday 10th December 2020 Lords Chamber

[Lord Callanan (Con)]

I understand my noble friend’s scepticism on this, but I point him to offshore wind, the cost of which has plummeted over recent years. It is possible that we can meet the standards, but of course we have to be fully aware of the potential for cost overruns in the future.

[Lord Redesdale (LD)]

My Lords, I draw attention to my interest in the register as the CEO of the Energy Managers Association. Covid has led to millions of employees working from home, and while this would not have had a major effect during the first lockdown, due to the lack of heating, the second lockdown is of course during the winter and there has been a marked increase in the amount of gas used by people working from home and putting their heating on at times when they would not have in the past. Have the Minister and BEIS looked into the amount of carbon emissions that this has led to in the UK? Are plans afoot to allow companies to install energy efficiency measures if they are contributing to the fuel cost—as they can under the Treasury rules—so that the home becomes a place of work?

[Lord Callanan (Con)]

The noble Lord makes some interesting points. I think we are all aware of the limitations of working from home, but companies should be as open and transparent as possible in their reports about the energy and emissions that they are responsible for. This includes employees who work from home.