Oral Answers to Questions

Andrew Bowie Excerpts

Tuesday 23rd May 2023 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

2. What steps he is taking to support energy transition projects in Scotland.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

We are supporting Scotland’s energy transition through the North sea transition deal. Additionally, 52 of the 178 projects awarded contracts for difference for renewable electricity are in Scotland. We are also supporting the clean technologies of the future with over £80 million-worth of funding through our net zero innovation portfolio to 81 locations within Scotland, including offshore wind, carbon capture, usage and storage, and hydrogen.

[Richard Thomson]

The SNP-led Scottish Government have continued to announce more support for energy transition in Scotland, this month pushing on with investment in green hydrogen that will deliver 5 GW of renewable and low-carbon hydrogen production by 2030. The Minister says that the UK Government are supporting that, but they are certainly not putting any money on the table up front as the Scottish Government have through their £500 million energy transition fund for the north-east of Scotland. When will the UK Government finally put their money where their mouth is and support the energy transition that Scotland desperately needs?

[Andrew Bowie]

I thank the hon. Member for his predictable question. He was obviously not listening to the answer I gave to his first question: 52 of the 178 projects awarded contracts for difference are in Scotland, and we are also supporting green technologies to the value of £80 million. The fact is, the SNP cannot be trusted on energy and cannot be trusted to give us the facts. It is playing politics with people’s bills while we are delivering to support households, having paid half of an average household’s energy bills this past winter.

[Priti Patel (Witham) (Con)]

Energy transition projects affect the entire United Kingdom. I thank the Minister for his engagement with MPs across the east of England on the impact of 100 miles of pylons to connect new offshore renewables to the grid. Will he give my constituents an assurance that the Government are doing everything possible to look at an offshore grid for the east of England? Of course, that would also benefit the entire United Kingdom, including parts of Scotland.

[Andrew Bowie]

I thank my right hon. Friend for her question. It was a great pleasure to be in East Anglia last week and to engage with community organisations and MPs from that part of the world. I confirm that all options are on the table as we look at what infrastructure we can and need to build to move us forward into our net zero future.

[Mr Speaker]

I call the SNP spokesperson.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is nearly 10 years since a £1 billion carrot was dangled for Peterhead carbon capture and storage, which was then withdrawn post-referendum. We are now getting told that the UK Government have £20 billion to spend on carbon capture and storage, but the reality is that not one penny of that is ringfenced for Scotland, and indeed there is not even a budget line for that £20 billion. Instead of another jam tomorrow pledge focusing on nuclear, why does the Minister, who comes from the north-east of Scotland, not focus on getting the Scottish cluster track 2 status so that it can get up and moving?

[Andrew Bowie]

I thank the hon. Member for that question, but frankly I am fed up with the SNP talking Scotland down, and indeed talking the Acorn project down. The UK Government have already spent £40 million supporting the Acorn cluster, which is in a very good position as we proceed with track 2. It would be good if, for once, the SNP was to talk that up and work with us, rather than the opposite.

[Alan Brown]

It would be good if the Minister gave us certainty instead of just blustering.

Energy UK has confirmed that the Brexit trading arrangements are adding more than £1 billion a year to our energy bills and, last year, nearly £5 billion was paid in constraint payments. That is all money that could have been used to upgrade the grid. It could have paid for pumped storage hydro that could have procured a greater level of our world-leading tidal stream technology. It could have funded the Acorn CCS or green hydrogen. Instead of adding £6 billion to our bills, will the Minister tell us how many Scottish jobs have been held back by this lack of investment?

[Andrew Bowie]

When it comes to bluster, SNP Members are certainly subject matter experts. On support for Scottish billpayers, as I said, over the past winter this Government were paying half of everybody’s energy bills in this United Kingdom. [Interruption.] The hon. Member says that that is thanks to the North sea, but that is the very North sea industry that he and his partners in the Green party would close down tomorrow. This Government support the oil and gas industry for our whole UK moving forward.

[Dan Jarvis (Barnsley Central) (Lab)]

3. What steps he is taking with Cabinet colleagues to help create jobs in green industries.

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[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Stoke-on-Trent North, Kidsgrove and Talke are proud to be home to one of the largest European deep coalmine sites at Chatterley Whitfield Colliery, which has huge potential in geothermal. That is already being explored at Etruria. Will my hon. Friend meet me, Chatterley Whitfield Colliery Friends, Historic England and Stoke-on-Trent City Council, to see what green jobs can be created at that former colliery site, to bring it back into use with a green future?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

Go on, go on!

[Graham Stuart]

I am being barracked by my Front-Bench colleagues, which is unusual even for me. I would be delighted to accept my hon. Friend’s kind offer.

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[Helen Morgan (North Shropshire) (LD)]

7. Whether he is taking steps to increase grid capacity.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The Government are working with Ofgem, network companies and others to increase network capacity. This includes Ofgem accelerating strategic transmission projects worth £20 billion and allowing £3.1 billion over the next five years for upgrades to the local distribution network.

[Helen Morgan]

I have been contacted by a number of businesses, mostly farms, that want to install renewable energy in the form of a solar array or a wind turbine, but have been advised that they will have to pay thousands of pounds to help to upgrade the grid in their area, making those projects unaffordable. Along with the commitment to phase out oil-fired boilers, that means that there will be huge demand on rural grid capacity. Will the Minister reassure me that he is taking steps to ensure rural networks will be able to cope with that surge in demand?

[Andrew Bowie]

I am very happy to give the hon. Member that assurance. We are doing everything we can, working with Ofgem, companies, providers and other organisations, to ensure that the grid across the United Kingdom, but in particular in rural locations, where there will be a huge surge in demand, is able to cope and that people have fair and equitable access to that.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

A few weeks ago, Knaresborough-based Harmony Energy opened the largest battery farm in Europe. What steps are being taken to allow grid capacity and connections for renewables and storage to be made much more quickly, so that projects such as Harmony’s can come on stream, deliver energy resilience and cut carbon emissions?

[Andrew Bowie]

We will jointly publish a connections action plan with Ofgem in the summer, setting out actions by the Government, Ofgem and industry to accelerate connections and reform queue management systems. Network companies are already taking steps to free up network capacity and bring forward connections via shovel-ready renewable and storage projects, ahead of slower moving ones.

[Mr Speaker]

I call the shadow Minister.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Will the Minister explain how, on his watch, things have got to such a wretched state with grid development? The grid apparently cannot now connect renewable energy plants to the system until after 2035, the date by which the Government say in the energy security strategy

“we will have decarbonised our electricity system”.

Presumably they envisage that system will be connected to the grid by that point. Has he been unaware that there is a serious problem, or was he aware, but did nothing about it?

[Andrew Bowie]

My watch began only in February. However, I believe the United Kingdom is a victim of its own success, as this is what happens when new renewable electricity production is developed at such scale and pace. We understand the challenges facing the country and the grid. That is why we are meeting with Ofgem and have commissioned the Winser review, which we will publish in the summer. We are determined that we will meet that 2035 target.

[Dr Whitehead]

The Minister says that some things are beginning to happen, but does he recognise in this context the figure of £30 billion, which is the investment the energy system operator considers is necessary to make the system fit for offshore wind and other renewables coming on to the system, not by 2035 but by 2030? Is he prepared to commit now to find that amount of investment, one way or another? If he cannot do that, how can we take his assurances on action at all seriously?

[Andrew Bowie]

This Government are determined to face up to the challenges that we have. We have moved forward at such pace, having inherited a disgraceful situation in terms of how much renewable electricity was being produced under the last Labour Government. That is why the grid is facing such challenges today and why we have commissioned Nick Winser to produce a review in the summer to see how we can move much faster to achieve our goals. I would welcome the hon. Gentleman and the Labour party being more supportive, talking up this country and our success in developing renewable electricity, and working with us to tackle the challenges that he so rightly brings to the Floor of the House today.

[Jeff Smith (Manchester, Withington) (Lab)]

8. What his Department’s policy is on subsidies for new oil and gas exploration.

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[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T4. Directors at Ofgem are on the record as saying they are already doing everything that needs to be done to meet the country’s net zero targets. I do not know anyone outside Ofgem who sees that as anything other than dangerously complacent. Is it not now time for the Minister to give a direct mandate to Ofgem to include meeting net zero as part of its remit?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)]

The Government have published a draft strategy and policy statement for energy policy that makes clear Ofgem’s role in promoting the UK’s net zero targets. However, we are considering the effect of an amendment made in the House of Lords to the Energy Bill currently going through this place on Ofgem’s statutory duties in relation to net zero.

[Virginia Crosbie (Ynys Môn) (Con)]

Does the Minister agree that the way to get cheaper nuclear projects and cheaper electricity overall is to build a fleet of new nuclear reactors, starting at Wylfa in my constituency of Ynys Môn?

[Andrew Bowie]

Yes, the Government agree that the way to cheaper energy bills and a more secure network is to build new nuclear projects. That is why we have launched Great British Nuclear, why we are working with communities and industry across the country, and why I would be delighted to visit Wylfa soon with my hon. Friend to see the potential that that site has to add to our energy security.

[Carol Monaghan (Glasgow North West) (SNP)]

T6. Ofgem has stated that prepayment meters should not be fitted for anybody over the age of 85. In Glasgow, life expectancy is 76. Will the Minister look at increasing the range of people who are considered vulnerable under this?

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[Mike Amesbury (Weaver Vale) (Lab)]

T8. The Aston Grange energy project in my constituency, which intends to provide solar, has been told it cannot connect to the grid until 14 years from now, in 2037. What decisive action are the Government taking to intervene and speed things up?

[Andrew Bowie]

I have already set out exactly what the Government are doing. We are working with Ofgem and others. We commissioned Nick Winser to provide a report on how we can speed up connection times and build our network to the position it needs to be in, but I am happy to meet the hon. Gentleman to speak about the specific project he has raised.

[Priti Patel (Witham) (Con)]

The House will be familiar with Wilkin & Sons in my constituency, which makes world-famous jam that I am sure everyone in the House has enjoyed. However, it faces significant increases in its energy costs because it is not eligible for the energy and trade intensive industries scheme, as its industry classification is not within the scope of the scheme. The code is 10.3, and it is for processing and preserving fruit and veg. Will the Minister look into that classification? There is an open invitation to come up to Wilkin & Sons.

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[Daniel Zeichner (Cambridge) (Lab)]

In a few months’ time, there will be extra checks on food coming into the UK from Europe. That will require extra cold store capacity; it is being built, but the Cold Chain Federation tells me that there is a three-year to four-year wait for connection to the grid. What are the Government going to do to make sure those facilities are up and running in time?

[Andrew Bowie]

Years of world-leading green investment has meant we have connected the second highest amount of renewable electricity in Europe since 2010. That has, of course, put pressure on the electricity network, and reducing connection timescales is a high priority for the Government, as I have already set out multiple times this afternoon.

[Mr Gregory Campbell (East Londonderry) (DUP)]

A more rapid escalation towards net zero could be achieved by a significant increase in electric vehicle charging points, particularly in areas where there are very few, such as Portstewart and East Londonderry in my constituency. What meetings will the Minister have, and what pressure will he apply, to try to ensure that there is a significant increase between now and 2030?