Marine Renewables Industry

Andrew Bowie Excerpts

Thursday 16th January 2025 Westminster Hall

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It is a genuine pleasure to serve under your chairmanship this afternoon, Ms Jardine. Congratulations on your appointment to the Panel of Chairs, and I am sure that this is the first of many long sessions in the Chair in Westminster Hall.

Today’s debate on marine renewables has been fascinating, and I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing it. Before I go any further, I will echo his comments on EMEC, the incredibly important role it has played and Neil Kermode’s leadership over the past few years. It has delivered a world-leading technology and, indeed, makes for an inspirational visit, if anybody has the time or inclination to go north to the Orkney Islands.

It has, for the most part, been a thoroughly pleasant afternoon listening to an oral tour of some of our great coastal communities—and of Taunton and Melksham and Devizes. I have nothing against Taunton; it is just that it stood out for me. I have personal links with many of those communities, so it was a genuine pleasure to listen to the debate.

As so many people have said, the United Kingdom is uniquely placed in terms of marine energy. We are an island nation, and our history has been written by the seas. Given the potential of marine energy to help drive us towards our clean energy future, our future will be written by them too.

Energy from the sea is not a new concept in the United Kingdom, especially not to somebody who hails from Aberdeen. The UK continental shelf and the Norwegian continental shelf have been the lifeblood of the UK’s energy industry since the 1970s. Aberdeen, in the north-east of Scotland, has been the powerhouse of the European energy sector for decades. My sincere hope is that that remains so in the decades ahead.

[Mr Clive Betts in the Chair]

As the right hon. Member for Orkney and Shetland has shown this afternoon, the east coast of Scotland, and particularly his constituency, is well designed for marine energy technologies, and particularly tidal. Marine energy generation in the UK covers many technologies, some of which—such as tidal and wave generation—are not yet deployed at scale and not quite at a commercial level. That also includes offshore wind, which has successfully scaled up in the United Kingdom over the past few years.

I did not want to get drawn into yet another list—I know how much the Minister enjoys my reeling off the previous Conservative Government’s successes when it comes to investment in renewable technologies—but I was prompted into it by the Liberal Democrat spokesperson, the hon. Member for Thornbury and Yate (Claire Young). I am very proud that we built the first to the fifth largest offshore wind farms in the world, which are delivering power into the United Kingdom right now, that we halved our emissions and that we were the fastest cutter of emissions of any country in the G7. We are very proud of what we did, which is supporting thousands of new jobs across the United Kingdom, particularly in the north-east of England, in communities such as Grimsby and around the Humber.

The UK’s seas are home to the emerging technologies we have heard about this afternoon. Many of the technologies we will employ in the energy transition might not be fully fledged, but the previous Government were proud to announce a record £650 million of investment—for example, into the development of nuclear fusion technology, in which the UK is a world leader. We support the development of fusion and the development of technologies such as tidal, because, moving forward, we need to support all energy solutions.

As I said, the previous Government did a great deal to provide an economic framework for various technologies—especially marine energy projects—and to try to attract private sector investment through the contracts for difference scheme. In 2021, we announced that £30 million per year would be ringfenced for tidal stream projects. Allocation round 4 in 2022 made allocations to four tidal stream projects, which was a first. Allocation round 5 in 2023 is often castigated as a failed round, so obsessed are some people with wind at the expense of everything else, but it made allocations to 11 tidal projects, with capacity totalling over 50 MW. Allocation round 6, which was run under the previous Government and announced by the current Government, made allocations to six tidal stream projects, with a total capacity of 28 MW.

With the CfD mechanism, the previous Government created the conditions for new technologies such as tidal to thrive. As the right hon. Member for Orkney and Shetland set out at the beginning of the debate, the world’s most powerful tidal turbine was launched off the east coast of Scotland by Orbital Marine Power, an Orkney-based company. Constructed in Dundee, the 2 MW turbine capitalises on some of the strongest currents in the world. In 2024, thanks to the dogged and determined campaigning by Neil, the right hon. Gentleman and others, the then Secretary of State for the Department for Levelling Up, Housing and Communities—now the editor of The Spectator—and I secured £3 million of new funding for EMEC, recognising the work that it does. That was in addition to having invested over £7 million between 2016 and 2022.

The question posed by many is, why bother with marine energy when we have so many other technologies we are investing in right now? We have offshore, onshore, nuclear technologies that are coming on stream, solar power and everything else. Well, it is because we must. We need to invest in all the technologies available to us in order to drive us forward into our clean energy future, to make us more energy independent and energy secure.

Sadly, there was no mention of tidal in the “Clean Power 2030” document published by the Government. There is a perception—it might not be the reality—that tidal technology has fallen through the gap. In the rush to decarbonise the energy system, the Secretary of State seems to be putting all the eggs into two baskets. It would be good if the Minister could set out that that was not the case and that the Government were as committed to tidal and wave power as they should be. When the wind does not blow and the sun does not shine, wind and solar will not keep the lights on in the United Kingdom.

[Gideon Amos]

The hon. Gentleman is criticising the lack of action on tidal, so can he explain why his Government cancelled the Swansea tidal lagoon?

[Andrew Bowie]

The previous Government looked at the Swansea tidal lagoon in great detail and depth, but the decision was taken before my time in the Department for Energy Security and Net Zero not to proceed with it. I am informed that it was due to a combination of the cost and the reluctance of those involved to make the case that the technology would be successful. However, if it can be presented as a viable project—if the costs can be brought down and the technology can be proved to work—of course the current Government could look at it again. We should be investing in things that work and that return a benefit to the taxpayer.

Last week, the UK learned the word “Dunkelflaute”—I have probably pronounced it terribly—which expresses what happens when the wind does not blow and the sun does not shine. The recent cold snap illustrated just how insecure a system reliant on intermittent renewables such as solar and wind will be, so we need to invest in new baseload generation, including gas, nuclear and tidal.

Those technologies sadly got little mention in the Secretary of State’s “Clean Power 2030” action plan. There were few words about nuclear and nothing about tidal—seemingly, no plan for future generation. It is clear that a wide mix of energies will be required to ensure our energy independence and security. Offshore wind and solar are obviously essential parts of the mix, but so too will be—or at least should be—oil and gas; nuclear, large and small, with microreactors; and new and emerging technologies such as wave and tidal. The developments happening across all those technologies in this country are great.

We should support Great British and Northern Irish scientists, innovators, engineers and technicians who have the opportunity to build on the successes of the past decade, which saw Great Britain and Northern Ireland lead the world in investing in new energy generation. To echo the sentiment of other right hon. and hon. Members, we need more direction and clarity from the Government about where we are heading on this journey to more tidal and wave investment. We fully support the calls for a road map and a taskforce to drive that forward and support the industry.

I say to the Government: please do not just put all our eggs in two baskets, but invest in and support other technologies. We need all those energy sources in future. Many of the technologies will be developed and deployed around the coast, in some of the more deprived communities in this country, so the jobs and investment that they will contribute will be massively beneficial not just for our energy security but for the wider economy. If we invest now—if we spend the time and money and expend the energy—Great Britain and Northern Ireland can yet again be the beating heart of this new global industrial revolution.

--- Later in debate ---

[Michael Shanks]

The right hon. Gentleman is determined to move me more quickly through my speech; I promise that I will come on to the taskforce. He is right that the more visibility we have of projects that might bid, the more aware we can be of what the sizes of ringfences and budgets for each pot in the CfD might look like. A range of factors makes that complex, such as whether projects are at final investment decision stage, or whether planning and consent are in place to allow them to bid into the auctions. There are many factors, but the visibility point is well made. On ringfencing, I hear what hon. Members have said and what has been passed to our Department over the past few months, but we will seek to balance the needs to deliver deployment and to ensure value for money when making these decisions.

A number of hon. Members raised the issues of licensing and consenting, which are at the heart of our aims for reform of the planning system. We want to continue to have a robust planning system in which communities have a voice, but we also want to move much faster in making decisions, so that projects are not held up for years on end.

[Andrew Bowie]

The Minister is being very generous, and I apologise for taking his time, given that I have just spoken. He talks about reforming the planning system so that projects can be built faster. Obviously, a lot of the projects we are speaking about are in Scotland. Can he update us on discussions with the Scottish Government about reform of the planning and consenting provisions in the Electricity Act 1989, which are seen by some—not by all—as an additional burden for companies seeking to develop such projects north of the border?

[Michael Shanks]

I am grateful for the shadow Minister’s raising that point, because that is an important piece of work that we have been moving forward. With the Scottish Government, we launched a consultation, which ran for four weeks, on how the consenting process could be reformed, so that we can change the 1989 Act in a number of key areas. I think the consultation closed a couple of weeks ago; the responses are now being analysed, and we will bring forward legislation in due course.

That is a good example of partnership working with the Scottish Government on attempts to deal with some long-running issues. Across the UK, the key point is that the aim is not somehow to reduce the burden of planning where there are still opportunities for affected communities to contribute; it is about saying that it does not serve communities, developers or the Government well when decisions are held up for years on end. That is part of how we will speed these things up.

Other hon. Members mentioned the supply chain, which is incredibly important. That is why we as a Government have said that we are not agnostic about industrial policy in this country; we want manufacturing to come to these shores. It is encouraging to see that there is already significantly more UK content in tidal stream projects than in some other technologies that we have in this country. That is a real positive. I hope that we can continue that and learn from it for offshore wind and other technologies that we want to expand.

The right hon. Member for Orkney and Shetland and many others asked about setting up a taskforce. I am very open minded about that, and when I met the Marine Energy Council just before Christmas to discuss this and a number of other matters, I said that. I cannot quite remember how many taskforces I am currently chairing—we do like a taskforce, and they are important —and I am extremely grateful for the expertise of those who give up their time to come into Government, to help us to shape action plans and route maps and to understand what the challenges are. I am open to the suggestion, but if we set up something like that it must have a clear purpose, and at end of it we want a set of actions that Government and others can drive forward. That is what my officials are working on, and I am happy to speak to the right hon. Gentleman more about it.

On the technology point, the Government’s position is that overall the wave energy industry is at research and design phase. That is a key step on the journey to potentially achieving commercial viability, but we do not think it is quite there yet. We are aware that it has huge potential, given the nature of this country, and significant strides are being made to take it forward. My officials are regularly in touch with those in the sector and are being kept up to date on the latest developments. We hope that all these technologies will become extremely successful and the Government are happy to do whatever we can to support that.

The hon. Member for Strangford (Jim Shannon) said that he had not had time to write a speech but then, as always, he made a very eloquent contribution. I think that he and the hon. Member for South Devon made the same point about partnership, which is critical to all of this. The coast around this country offers enormous potential in our energy future, in floating offshore wind, in which we are already a world leader in so many ways—I hope we will continue to be so—and marine renewables, in the economic programme that we have already, and particularly in fishing. The point was strongly made that this is not about competing priorities, although it might seem like that; it is about how we can bring industries together to ensure that they co-exist. We can get real strength from that.