Clean Energy Investment

Debate between Adrian Bailey and Callum McCaig

Wednesday 25th November 2015 Westminster Hall

[Callum McCaig (Aberdeen South) (SNP)]

We have had a very good debate this morning and I thank the right hon. Member for Don Valley (Caroline Flint) for bringing this subject before us. Her speech summed up incredibly well the issues facing the renewable energy industry and the green industry as a whole, and what can be done to make things better. A lot of the discussion this morning has been about the problems that we have had. That is right, but we also need to start looking at the ways in which we can go forward.

The potential of clean energy in terms of jobs and investment has been summed up by colleagues from all parties in this Chamber this morning. We have also heard from hon. Members from all four nations of the United Kingdom, which shows how important the green economy can be to the United Kingdom. It can provide jobs in areas where previously it would have been thought incredibly difficult to provide employment. As for the opportunities in the future, we have heard about how we may have missed the boat in some regards in terms of manufacturing. To some degree, that boat may have sailed, but there is still huge potential for the future. A number of hon. Members have mentioned the potential loss of jobs in the solar industry if the cuts to the feed-in tariff go ahead; I very much hope that that will not be the case. We have also heard about the untapped potential of solar in Scotland.

The right hon. Member for Don Valley outlined her five-point plan for support for industry. My party would back all those five targets. Over and above those targets, however, there are a few things that I wish to see added to the mix. Last week in the debate on climate change, I raised with the Secretary of State the possibility of establishing subsidy-free contracts for difference for onshore wind. As we have heard from a number of Members, it is the cheapest form of renewable energy and compares very well with what we are looking at with nuclear. Albeit that there are different pressures on the system that are addressed by the technologies, I would rather see the investment going into onshore wind. As the industry suggests, it can be done without subsidy and to block that would be unpardonable. To block that in planning terms when the matter is devolved to Scotland would be ridiculous.

Over and above those five points, will the Minister consider whether the future CfDs can be brought forward from the dates announced last week? Having those CfDs at the end of next year could be damaging for certain projects. Is it possible to extend the lifetime of the CfD beyond 15 years to reduce costs further? The hon. Member for Stalybridge and Hyde (Jonathan Reynolds)—my pronunciation of such places is better than it would be for the constituencies of some of my Welsh colleagues—mentioned energy efficiency. That is often the Cinderella, and efforts on energy efficiency are even further behind than those on renewable heat. It is one of the easiest things, and a lot could be learned from the decision by the Scottish Government to put energy efficiency measures as a national infrastructure priority in Scotland. If that could be done on a UK-wide level, it would not only provide additional funding for Scotland, which would be welcome, but it would help the UK as a whole meet its climate change targets, reduce fuel poverty and boost the economy.

My hon. Friend the Member for Linlithgow and East Falkirk (Martyn Day) mentioned the renewable heat incentive, which is the area where we struggle most in getting the step change required in investment. The technology is there, if it has the support. To see that support stopped would be foolish and very much a retrograde step.

One thing that we need to do, over and above all that, is look at energy storage. We have heard talk about some of the technologies that are there, but we need a proper strategy and support mechanism for storage to take off as an industry. There is huge potential in the green economy as a whole. Storage provides the balancing support that is required for the grid in terms of intermittent generation. I do not know whether the right thing is battery technology, pumped-storage hydro, compressed gas or whatever, but developing a strategy, providing a mechanism and, dare I say it, allowing the market to decide which solution is best is a sensible way of dealing with things.

We have heard a lot about the damage that has been done. The debate timeously falls on the day of the comprehensive spending review. A number of us who support the green economy have great fears as to what will be announced in a little over two hours’ time. The damage has been bad, but the situation is not irretrievable as yet. That may not be the case once the Chancellor sits down later this afternoon. We have heard suggestions from the right hon. Member for Don Valley about the potential for the support mechanism for carbon capture and storage being withdrawn as part of the comprehensive spending review. Frankly, that would not only be a betrayal of the industry, which has invested hugely, but a betrayal of our requirement to take the challenge of climate change seriously. If we are to do what we are required to do, carbon capture and storage provides perhaps the most straightforward solution in adapting to a new way of life. To pull the rug out from under it yet again would be completely and utterly unforgivable.

I will not use my full time to allow more time for others. That time will ideally go to the Minister, although my colleague on the Labour Front Bench may choose to use it himself. So many points have been raised by Members that it would be fitting to hear less from me and more from the Minister.

[Mr Adrian Bailey (in the Chair)]

I am sure your brevity is much appreciated.