Andrea Leadsom
Main Page: Andrea Leadsom (Conservative - South Northamptonshire)
Tom Pursglove (Corby) (Con)
2. What estimate she has made of the number of onshore wind applications made since June 2015.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
My hon. Friend will be delighted to know that we are delivering on our manifesto commitment to end new subsidies for onshore wind and to change the law so that local people have the final say on onshore wind farm applications. As of 14 March, 64 onshore wind farm applications above 1 MW had been submitted across the UK since 18 June 2015, only five of which were in England.
Tom Pursglove
As the director of the national anti-wind farm campaign, I obviously declare an interest. What impact is this change to the subsidy regime having on ensuring that emerging generation technologies can come forward, which ultimately is what the subsidies are intended to encourage?
Andrea Leadsom
My hon. Friend is exactly right. The Government want to promote a wide range of energy sources, including renewables, to help us to meet our de-carbonisation targets, while keeping the lights on and bills down. For example, the Chancellor announced in the Budget our intention to hold three contracts for difference allocation rounds over this Parliament, allocating £730 million of annual support over the three auctions for new and emerging technologies such as, very importantly, offshore wind. As he rightly points out, however, as the cost of technologies comes down, we will make sure that subsidies do so as well.
Cat Smith (Lancaster and Fleetwood) (Lab)
Does the hon. Lady agree with me and many of my constituents that it flies in the face of Ministers’ claims to be the greenest Government ever when local people have a veto on onshore wind, but that when it comes to fracking, particularly for my constituents in Lancashire, local views are not heard or represented?
Andrea Leadsom
The hon. Lady is of course completely wrong, because all shale applications are subject to the local planning system, so communities absolutely do have a say on every planning application for hydraulic fracturing.
Jim Shannon (Strangford) (DUP)
In my constituency, we have had many applications for wind turbines, both on land and in the sea. As an alternative, SeaGen has a marine project harnessing tidal wave power. When it comes to alternatives that protect the environment, does the Minister agree that such projects should be given prominence?
Andrea Leadsom
The hon. Gentleman is exactly right that there are huge prospects for marine and tidal technologies, but they remain very expensive. The Government have supported some demonstration projects and are looking closely at all the possibilities. As they become good value for bill payers, we will bring forward proposals for how we can support them further.
Ms Margaret Ritchie (South Down) (SDLP)
Does the Minister expect the number of onshore wind applications to fall in the coming year, and what impact will that have on renewable wind’s proportion of the electricity mix?
Andrea Leadsom
I can tell the hon. Lady that a lot of onshore and offshore wind projects are in the pipeline, so we expect renewables’ share to increase in the coming years. She will be aware that we have announced further CfD auctions specifically to support offshore wind, so we expect further increases in the deployment of offshore wind as the costs come down. That is an absolutely key requirement. As the costs have come down significantly, I certainly expect that it will be possible to deploy onshore wind farms, if communities want them, and without bill payer subsidy.
Mr Speaker
We need to speed up a tad, and I am sure that we can be led in our mission by the hon. Member for East Worthing and Shoreham (Tim Loughton).
Jeremy Lefroy (Stafford) (Con)
5. What steps she is taking to ensure the effectiveness of the capacity mechanism for new gas-fired power stations.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
New gas is already coming forward. Since 2010, six new combined cycle gas turbines have been commissioned, representing over 8 GW of capacity, but we will need more new gas as we close our coal-fired power stations as part of our decarbonisation objective. We have announced changes to the capacity market to buy more capacity, and to buy it earlier, thereby ensuring security of supply during the transition, as well as promoting investment in new plant such as gas.
Jeremy Lefroy
Given that Rugeley power station, which is coal fired and based in the constituency of my hon. Friend the Member for Cannock Chase (Amanda Milling), is scheduled to close, may I suggest that Rugeley would be an ideal site for a new gas power station?
Andrea Leadsom
I pay tribute to my hon. Friend the Member for Cannock Chase (Amanda Milling) for her excellent work in representing those affected by the closure of Rugeley. The decision on how to use the site is obviously a commercial issue for ENGIE, but I encourage the company to discuss its plans with the Planning Inspectorate, which can clarify the process for building a new gas plant, and particularly how long it might take to do so.
Callum McCaig (Aberdeen South) (SNP)
Yesterday marked the end of an era with the sad closure of Longannet power station. I put on record our thanks to the countless folks who worked there and kept the lights on in Scotland for over 40 years. When does the Minister expect new CCGT gas in Scotland to replace Longannet?
Andrea Leadsom
I, too, wish to express enormous gratitude, on behalf of Conservative Members, for all the work that has been done at Longannet over the past 47 years. It certainly is the end of an era. It is astonishing that the plant was expected to last for only about 25 years, and the extension of that to 47 is pretty impressive.
As I have said, the capacity market needs to buy earlier and buy more capacity at a time when wholesale prices are so low and various plants are struggling, partly to ensure that new gas is available. The location of the combined cycle gas turbines will, of course, be a matter for individual developers.
Callum McCaig
It will be a matter for developers, but one of the biggest hurdles to new CCGT in Scotland, and one of the reasons for the early closure of Longannet, has been the imposition of transmission charges, along with the additional costs that are levied on generators in Scotland, primarily owing to their location. Margins are tight, and they are getting tighter. Can we remove this barrier to new gas generation?
Andrea Leadsom
It is extraordinary that the hon. Gentleman should say that, because Scottish consumers are huge beneficiaries of locational charging. He needs to look at the situation in the round. Scottish consumers benefit from being part of a Great Britain-wide energy market. Had the Scots voted for independence, today would have been the day when they were on their own. Issues such as the price of energy and the locational pricing would have worked very much to their detriment without that GB-wide market.
Amanda Milling (Cannock Chase) (Con)
I thank my hon. Friend the Member for Stafford (Jeremy Lefroy) for raising the possibility of a gas-fired power station at Rugeley B if the existing power station is closed. Existing infrastructure with national grid connectivity and a highly skilled work force could be used in that event. What measures are being taken to encourage the development of gas-fired power stations on sites such as Rugeley B, where energy generation has been taking place for decades?
Andrea Leadsom
My hon. Friend has done a great job in promoting that idea, and, while I do not want to stray into the realms of telling a private company what to do, we would be very pleased if this company looked into the opportunities for establishing a new gas plant. The capacity market auction will give certainty to potential providers of new gas plants, and should lead the company to consider those opportunities very seriously.
Mr Dennis Skinner (Bolsover) (Lab)
Is it not very odd that the Tory Government never seem to talk about the 40 million tonnes they are importing from countries abroad that they cannot even trust? Rather than keeping the British pits open, this Tory Government have presided over even more coal imports. Which of the power stations will use that coal? They will not be using gas. There will have to be power stations to use that coal. Where are they going to be?
Andrea Leadsom
I am sure the hon. Gentleman will be pleased to know that a new opencast coal mine has recently started producing—
Andrea Leadsom
The hon. Gentleman must surely acknowledge that the time for deep coal mines is over, because of the health implications and the carbon implications.
Andrea Leadsom
The hon. Gentleman must be aware that my Department is committed to moving away from coal, through gas, to a clean energy future.
Dr Alan Whitehead (Southampton, Test) (Lab)
The Secretary of State has produced no impact assessment to accompany her proposals to bring forward the first year of the application of auctions to the capacity market, but all estimates confirm that the auction will have to clear at a far higher price than has hitherto been the case if any new capacity is to be produced by means of this device, with a consequent huge cost to bill payers—an extra £20, according to some estimates. What does the Minister think the additional cost to customers will be, and can she look me in the eye and tell me with reasonable conviction that she is sufficiently certain that the auction will lead to substantial long-term capacity agreements for new plant to make that huge cost anywhere near justifiable?
Andrea Leadsom
I can absolutely look the hon. Gentleman in the eye and tell him that bringing forward the capacity market a year early—I am trying to make serious eye contact with him; I am not looking away for a moment—is absolutely in the interests of consumers. He will know that, with wholesale prices where they are at present, old plants are struggling to continue. By bringing forward the capacity market, we are giving them the certainty they need to ensure security of supply. If you like, this is an insurance policy on security of supply, and it is absolutely in the interests of consumers.
Jeff Smith (Manchester, Withington) (Lab)
6. What steps her Department is taking to increase investor confidence in the low-carbon economy.
Nigel Adams (Selby and Ainsty) (Con)
11. What assessment she has made of the effect on the feedstock supply chain of her Department’s proposals to improve the sustainability of the use of biomass in the heat and electricity sectors.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
May I gently point out, Mr Speaker, that as my right hon. Friend the Secretary of State and I are mothers, we have eyes in the back of our heads and are able to make eye contact right around the Chamber?
As my hon. Friend the Member for Selby and Ainsty (Nigel Adams) knows, mandatory biomass feedstock sustainability criteria came into force under the renewables obligation from 1 April 2015 and under the renewable heat incentive from 5 October 2015. The criteria will ensure that biomass is sourced from sustainably managed forests and provides a minimum 60% life-cycle greenhouse gas saving over our average fossil fuel mix.
Nigel Adams
I am grateful for that reply and congratulate the Minister and her Department on the UK’s sustainability criteria for solid biomass being among the most robust in the world, but why is the Department holding back from further deployment of this affordable, reliable source of low-carbon power?
Andrea Leadsom
On 17 March, the Chancellor announced that the overall budget for three CfD auctions in this Parliament will total £730 million of annual support. That is for pot 2, which includes biomass, combined heat and power, advanced conversion technologies, and anaerobic digestion. We see the use of biomass in coal conversions as a transitional technology, helping us on our path to a low-carbon economy. We have already made significant commitments to the sector, supporting 1.6 GW of biomass conversions.
Rebecca Pow (Taunton Deane) (Con)
I recently met a group of EU foresters—it was a very unusual meeting—at a symposium in Milverton in my constituency to discuss sustainable forestry. They expressed concerns that our growing biomass industry is putting pressure on many countries further afield to supply wood, possibly causing deforestation. Will the Minister assure us that sustainability is a key part of encouraging this exciting new biomass industry?
Andrea Leadsom
My hon. Friend enjoys that kind of meeting very much. I can absolutely assure her that we keep the whole question of sustainability under review. She will be interested to know that analysis of the 2013-14 sustainability data that companies report to Ofgem under the renewables obligation shows that all the reported biomass achieved the greenhouse gas saving target and met the land criteria, two years before they are mandatory. But we do keep this under review.
Mr David Nuttall (Bury North) (Con)
12. What steps she is taking to prevent protected areas from being adversely affected by the development of shale gas.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
Shale gas could become a valuable new industry and it is in the strong interests of the UK to explore its potential. However, we are determined to protect our most valuable spaces, and therefore it is our intention to ban surface-level drilling in the most precious areas, including national parks and sites of special scientific interest. We have also regulated to make sure hydraulic fracturing cannot take place at less than 1,200 metres under protected areas.
Mr Nuttall
I thank the Minister for that reply. Although I am sure it will allay the concerns of some, does she believe that more can be done to extol the positive virtues of shale gas, including, for example, the new jobs and security of energy supply it will bring?
Andrea Leadsom
My hon. Friend is right to point out that there are lots of benefits of shale gas. The first is energy security, as we could be importing about 75% of our gas by 2030. The second is jobs, as the industry could mean jobs and opportunities for the UK, with a report by Ernst & Young estimating that a thriving shale industry would create up to 64,000 jobs. The third is benefits to communities, as those hosting shale developments will see a direct share of the benefits through an industry-funded package, and the shale wealth fund will mean that up to 10% of the tax revenues from shale gas deliver investment directly to local communities.
Jason McCartney (Colne Valley) (Con)
13. What assessment her Department has made of the potential effect of changes to subsidies on the predicted deployment rates of renewable energy by 2020.
Kirsty Blackman (Aberdeen North) (SNP)
15. What steps she is taking to support oil and gas exploration and development.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
Last week, the Chancellor announced a £1 billion fiscal package to reduce the additional taxes historically imposed on the North sea as well as to introduce targeted measures to encourage investment in exploration, infrastructure and late-life assets. That builds on the Prime Minister’s January announcement of a £20 million package of new investment in exploration, innovation and skills; a new interministerial group; and funding for the £250 million Aberdeen city region deal.
Kirsty Blackman
I appreciate the Minister’s answer. Oil & Gas UK, the industry body, has said that we need a fourfold increase in exploration to ensure that the 20 billion barrels that are still there are recoverable. The extra funding for the seismic surveys has been most welcome and we appreciate it. Will the Minister expand a little on what other action the UK Government will take to increase the confidence in the industry and to encourage further exploration?
Andrea Leadsom
The industry is vital for the UK, and we will continue to support it in every way we can. I have already mentioned some of the measures. Perhaps I will just reiterate that, in setting up the Oil and Gas Authority on Sir Ian Wood’s recommendations, we are establishing an authority that is welcome by the industry, that will improve the economic recovery of the sector, and that will ensure that we do not move to early decommissioning, which is all very good news for the North sea sector.
Carolyn Harris (Swansea East) (Lab)
16. What progress has been made on the independent review on tidal lagoon energy announced in February 2016.
Matthew Pennycook (Greenwich and Woolwich) (Lab)
17. What progress she has made on developing a legislative and regulatory framework for energy storage devices in the UK energy market.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
Energy storage has been identified as one of the eight great technologies in which the UK can genuinely lead the world. More than £80 million of public sector support has been committed to UK energy storage research and development since 2012. Last December, my Department published the document, “Towards a smart energy system”, and we are urgently investigating the potential barriers to deployment of energy storage. We will be issuing a call for evidence in the very near future.
Matthew Pennycook
I welcome that statement from the Minister. However, regulatory barriers, some minor, are having a chilling effect on the roll-out of innovative energy storage technologies. Can the Minister give the House an assurance that the Government are approaching the removal of these barriers with the degree of urgency that is required if we are to remain a world leader in this field?
Andrea Leadsom
Yes, I can absolutely give the hon. Gentleman that assurance. Very recently, I held a roundtable meeting with players in the storage sector and heard at first hand exactly where they think the challenges lie. I can absolutely assure the hon. Gentleman that my Department is working very hard to try to ensure that we remove barriers in the easiest and quickest way possible.
Jeff Smith (Manchester, Withington) (Lab)
T1. If she will make a statement on her departmental responsibilities.
Jake Berry (Rossendale and Darwen) (Con)
T7. I know the Secretary of State is aware of the horrendous flooding in Irwell Vale in my constituency on Boxing day. With that in mind, will she say what steps her Department is taking to ensure security of the supply of energy to flood-hit areas in Lancashire?
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
I took part in the Cobra meetings over Christmas, and it was devastating to see the distress and the awful problems that that flooding caused. As part of the national flood resilience review, we are working with industry to assess flood risk for energy infrastructure, and will be looking at options to improve resilience wherever we can. In addition, the Environment Agency is reviewing its advice on flood risk, and we are working with energy companies to ensure there is an appropriate response to any revised advice.
Mr David Anderson (Blaydon) (Lab)
Last Christmas saw the end of deep-mined coal in this country, and during the past year 32% of the coal imported came from Colombia. Is the Secretary of State happy that, when coalfield communities are still struggling, her Government’s long-term economic plan is being fuelled on the back of child and slave labour?
Andrea Leadsom
I am sorry that the hon. Gentleman takes that approach. He will be aware that domestic coalmining has been in decline for the past 60 years, that imports are a great deal cheaper, and that it is for private companies to decide to choose the cheapest options. The Government have done all we can to reduce the impacts of the most recent closures, by injecting up to £20 million to help the directors of Hatfield to manage the closure of the business and £17 million to help UK Coal deliver its two-year closure plan for Kellingley and Thoresby, and by agreeing to meet UK Coal’s concessionary fuel allowances.
Martin Vickers (Cleethorpes) (Con)
I thank the Minister of State for the recent meeting she held with me in connection with the Able development in my constituency, which has the potential for 4,000 new jobs. Is there any news of the implementation of the memorandum of understanding with DONG Energy?
Andrea Leadsom
I am grateful to my hon. Friend for continually holding my feet to the fire on this matter. I have had a number of individual meetings with developers to press for UK content as far as possible in the offshore wind sector, and I am getting some very good responses. In particular, he will be aware that there is to be a strategy review of the east of England, which will include the potential for the development at Able. I am very positive about the prospects.
Mr Dennis Skinner (Bolsover) (Lab)
Is the Minister admitting, as she seems to be doing, that this Government are more concerned about bringing in coal from Colombia because it is cheap, even though it is produced by child slave labour? She has a chance to amend that.
Andrea Leadsom
Private companies in the UK choose their suppliers. It is not Government bringing in coal. The hon. Gentleman must understand that. This Government urge all private companies to look very carefully at their supply chain. They will choose cheaper imports, but equally, they have to stand up and be counted for their own policies on the conditions at suppliers. The Government do not purchase coal. The hon. Gentleman realises that.
Alex Chalk (Cheltenham) (Con)
Many people in Cheltenham share my wish to see a strong and vibrant solar sector. Reducing the solar feed-in tariff is no doubt necessary and appropriate, given the plummeting cost of solar, but what reassurance can the Minister provide that the new price will continue to sustain jobs in this important industry?