Energy Security Strategy

Viscount Stansgate Excerpts

Wednesday 27th April 2022 Lords Chamber

[Lord Callanan (Con)]

I thank the right reverend Prelate for saying that the sun shines on all of us—I am delighted to hear that. Community energy is important and we are supporting a number of community projects within Ofgem. I realise that there is a campaign to increase the take-up of community energy and we are in principle supportive of that. However, if those community energy projects also wish to be connected to the national grid and take advantage of other forms of energy and supply, it is right that they pay a proportionate share of costs for that. They are not insulating themselves from the national grid and from other forms of energy production and supply. Nevertheless, we want to see what we can do to support community energy, Ofgem is engaged in it, and we will look at what more we can do to help.

[Viscount Stansgate (Lab)]

My Lords, reference was made in the Statement to low-carbon hydrogen production. Does the Statement mean that the Government have in effect taken a long-term strategic decision—by which I mean well beyond 2030—that the hydrogen they intend this country to produce will be green and not blue?

[Lord Callanan (Con)]

Ultimately, yes, but in the short term we will want to support both forms of hydrogen production to get the market started and we will look towards providing something similar to the contracts for difference scheme for hydrogen production. As the noble Viscount is aware, we announced an expansion of hydrogen production in the strategy.