Making Britain a Clean Energy Superpower

Debate between Richard Holden and Wera Hobhouse

Friday 26th July 2024 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

It is a genuine pleasure to see you in your new role, Madam Deputy Speaker. I also welcome the new Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), to his place. I look forward to a much more constructive way of working compared with what happened under previous Energy Ministers.

The race to net zero is the major economic opportunity of this century. The green economy must sit at the heart of economic growth, and the Government have work to do to rewrite the damaging narrative of the previous Conservative Government that this is about green versus growth, and to remedy their unforgivable failures that delayed, blocked and even reversed urgent action on climate change. Now is the time to move forward.

The global market for net zero technology is estimated to be $650 billion a year by 2030. We must use Britain’s unique geography and abundant natural resources—wind power and the world’s second largest tides—to consolidate our position as a green economic powerhouse. Community benefits, community buy-in and individual economic incentives are critical to making this a reality.

Bath and West Community Energy in my constituency is putting people at the heart of the energy transition and placing the ownership and control of energy in local hands. It raised £11 million from nearly 1,000 members and bondholders, and it has donated £300,000 back to the community for local food production, recycling projects and fuel poverty programmes, yet community energy was not mentioned in the Labour manifesto.

Imagine a future in which people can purchase clean energy directly from a local supply company or co-operative, and in which every pound spent on powering our homes or cars is recycled back into the local community, supporting jobs, funding new facilities and services and contributing to renewable energy infrastructure. That is what community energy is about: ensuring that people everywhere support and benefit from the clean energy transition.

The biggest barrier, especially for smaller projects, is the cost of access to the grid. There are regulatory challenges too, but surely the creation of Great British Energy should include the opportunity to realise the enormous potential of community energy. It is often local council and grassroots projects that show the greatest ambition to get to net zero. Until now, local authorities have been hampered by a lack of resources and a lack of co-ordination between central and local government. Even within central Government the co-ordination of net zero strategies has often been fragmented. We Liberal Democrats therefore call for a net zero delivery authority, both to devolve decision-making powers and resources to local government, and to co-ordinate all net zero strategies and decision making across central Government Departments.

The last energy crisis, which saw household bills in the UK spiral out of control, was exacerbated by the UK’s reliance on fossil fuels. Ironically, the previous Government did very little to accelerate the deployment of renewables. Onshore wind was de facto banned and the targets for the roll-out of solar were regularly missed. Only by fast expanding renewable energy—not just offshore wind—and prioritising a radical home insulation programme can we ensure that families will never again be severely out of pocket.

To fully realise the potential of renewables, the Government must address our outdated national grid. Nearly 100 GW of electricity from offshore wind projects is currently awaiting grid connections. I hear that that is now to be accelerated. That would have been sufficient to power 150 million homes. Some developers have been waiting for up to 13 years.

There is no shortage of capital or will to invest, but delays and rising costs have deterred investors, who see projects in other markets such as mainland Europe as a safer return on investment—I know that the Government are all over this, but I am setting out what the failures of previous Governments were. Significant new infrastructure is required to connect renewable energy from where it is generated to homes and businesses across the country, but the Government must pay close attention to the communities hosting the required infrastructure. I know that is a challenge, but I support the Government in understanding that significant infrastructure cannot be delayed, because we really need to get to net zero.

[Mr Holden]

I totally agree about the need for new infrastructure. Germany is now pursuing an “underground first” approach to new energy transmission infrastructure, rather than overground pylons. Does the hon. Lady agree with me and other Opposition Members that the UK Government should adopt that approach?

[Wera Hobhouse]

Indeed. We have had a Westminster Hall debate on that very subject, and I absolutely agree. Saving private companies money is no reason not to do something that is better for communities. Half the time it is all about what is affordable, so I agree that there is a very fine balance to be struck, but where other solutions exist than having big pylons that ruin the landscape, National Grid should look at them.