Low-carbon Hydrogen Standard: Regulations
Andrew Bowie Excerpts(9 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Under-Secretary of State for Energy Security and Net Zero, my noble Friend Lord Callanan, has today made the following statement:
I am making this statement to fulfil the commitment to inform Parliament via a written ministerial statement whenever the ambulatory reference to the UK Low Carbon Hydrogen Standard—the Standard—in the Hydrogen Production Revenue Support—Directions, Eligibility and Counterparty—Regulations 2023—“the Regulations”—is updated. A new version of the standard—version 3—has now been published.
The Energy Act 2023 (“the Act”) makes provision for the implementation of the Hydrogen Production Business Model (HPBM), which is intended to provide revenue support to overcome the cost gap between low-carbon hydrogen and higher carbon counterfactual fuels. The HPBM is designed to incentivise the production and use of low-carbon hydrogen, supporting the UK’s net zero and energy security ambitions.
Section 57(1) sets out the overarching power for the Secretary of State to make regulations in relation to revenue support contracts. There are a number of provisions in chapter 1, part 2 of the Act that set out the matters that regulations made under section 57(1) may cover. The provision in section 66(5) of the Act enables revenue support regulations determining the meaning of “eligible” in relation to a low-carbon hydrogen producer to make ambulatory reference to published documents, including standards, external to the regulations—i.e. as the documents have effect from time to time. Given the nascency of the hydrogen industry and the need for regulations underpinning the hydrogen production revenue support contracts to provide sufficient certainty to investors, the ability to make ambulatory reference in regulations provides flexibility to help ensure the scheme is in line with the latest technological developments to encourage ongoing innovation and investment. This approach also aligns with consultation feedback to ensure alignment with the UK Government’s definition of low-carbon hydrogen when allocating support to projects under the Hydrogen Production Business Model.
The regulations were laid in draft in Parliament on 8 November 2023 and came into force on 20 December 2023. Bar certain exceptions for low-carbon hydrogen producers who applied for financial support before the commencement date of the regulations, the regulations determine whether a low-carbon hydrogen producer is “eligible” in relation to proposals it makes for the production of hydrogen produced in accordance with the low-carbon hydrogen standard. The regulations define “the low carbon hydrogen standard” as the document published by the Secretary of State in April 2023 entitled “UK Low Carbon Hydrogen Standard – Version 2” or such standard as may be from time to time published for the purposes of these regulations by the Secretary of State. The regulations provide that where the Secretary of State publishes a new or revised low-carbon hydrogen standard for the purposes of the regulations, the publication of the new or revised standard must include, or be accompanied by, a statement in writing that it is published to replace the previous version of the standard.
The standard sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen to be considered “low-carbon hydrogen”. It sets out the methodology for calculating the emissions associated with hydrogen production using production pathways in scope of the standard, and the steps that producers should take to prove that the hydrogen they produce is compliant with the standard.
On 13 December 2023, in the period between the regulations being laid in draft and coming into force, version 3 of the standard was published and focuses on ensuring that the requirements set out in the standard are clear and can be effectively applied under hydrogen production revenue support contracts and other future schemes. More consistent language is used in version 3 for indicating requirements of the standard, recommendations and permissible actions, and there has been restructuring and rationalisation of text for accuracy and conciseness. A key change to version 3 of the standard is to include “Gas Splitting Producing Solid Carbon” on the list of hydrogen production pathways that are within scope of the standard. At the time of publication, it was made clear that it was intended that version 3 of the standard would be the version for the purposes of the regulations when the regulations come into force.
The standard was republished on the 21 December 2023 to confirm that version 3 replaces any previous versions of the standard for the purposes of the regulations. This means that currently version 3 of the standard is the one that is to be used for assessing eligibility under the regulations, bar certain exceptions as mentioned above.
Further details on the standard and the changes made can be found at: https://www.gov.uk/government/publications/uk-low-carbon-hydrogen-standard-emissions-reporting-and-sustainability-criteria.
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Civil Nuclear Road Map and Wylfa
Andrew Bowie Excerpts(10 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a pleasure to serve under your chairmanship, Mr Twigg. I congratulate my hon. Friend the Member for Ynys Môn (Virginia Crosbie)—she is, indeed, a friend—on securing this incredibly important debate. It is important not just for her constituency, which she champions unrelentingly on every possible occasion, as indeed she does the nuclear industry, but for the future direction of travel for the nuclear industry and civil nuclear in this country.
My hon. Friend has a formidable track record of championing the case for a future nuclear project at Wylfa, both as chair of the nuclear delivery group and through her membership of the Nuclear Energy (Financing) Bill Committee. She has hosted numerous visits to the site for industry and Government representatives, including Katy Huff, whom I met in Dubai at COP28. She is the assistant secretary for the US Office of Nuclear Energy, and she was waxing lyrical about her visit to the site. She described her site tour with my hon. Friend as a must for anyone visiting Wales.
I welcome the opportunity to discuss our nuclear plans and Wylfa in more detail today. I reiterate the Government’s determination to ensure that nuclear plays a central role in our future energy mix. As part of a massive investment in home-produced clean energy, nuclear will offer the reliable and resilient power we need to reach net zero by 2050 and strengthen our energy security so that we are never again dependent on the likes of Vladimir Putin for our energy. That is why, just last week, we announced the biggest expansion of UK nuclear power for 70 years—I confirm to my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) that we are indeed getting on with it. I thank my hon. Friend the Member for Ynys Môn and other Members for the support they have offered to that programme. We will build up to 24 GW of nuclear power by 2050, which will quadruple our current capacity and allow us to meet up to a quarter of projected electricity demand.
The civil nuclear road map sets out how we will get there, including our intention to explore a further gigawatt-scale project after Sizewell C and plans to roll out advanced and small modular reactors, which are part of our commitment to making investment decisions on 3 to 7 GW every five years between 2030 and 2044. The road map also sets out the comprehensive policies for growth across the nuclear lifecycle, including a geological disposal facility, for which work is already underway to find a suitable location.
Alongside the road map, we have launched two consultations: one on a new approach to siting new nuclear power generation and another on alternative routes to market for new nuclear projects that do not need Government support. Together, those areas of work will give the industry and investors the confidence they need to deliver at speed the projects we need. That is crucial, because this Government is committed to ensuring that the UK is one of the best places in the world to invest in civil nuclear. I am sorry that the hon. Member for Strangford (Jim Shannon) is not in his place any more, but he pointed out that the work and the jobs that can be created in the supply chain across the entirety of the United Kingdom will mean that the benefits of new nuclear can be delivered even in places where new nuclear projects will not be built, including Northern Ireland.
Sir Geoffrey Clifton-Brown
My hon. Friend is making a fantastic speech in support of nuclear but, as he knows, the Public Accounts Committee visited Sellafield the other day. Sellafield’s whole operation is predicated on the eventual building of this geological disposal site, but the consultation has been very slow. Can my hon. Friend do anything to speed up that consultation?
Andrew Bowie
I thank my hon. Friend for that contribution. I am convinced that our approach to selecting sites for a geological disposal facility is right for the country. I hear my hon. Friend’s views and share his frustration with the speed of consultations when the Government are running them. However, we need to ensure that we select the best site and that that site will be sustainable, have public support and be suitable for delivering this second-in-the-world geological disposal facility, which is what it will be once it is delivered.
I put on record my support to the officials who are running the consultation. It is not an easy consultation, and what they are embarking on is the first of its kind in this country. We are learning a lot from the Finnish example. They have just received the first payload to put into what they have described as their “hole in the ground”—their geological disposal facility. Nevertheless, I hear my hon. Friend and will take his views back to the Department to see what might be done to speed up the process and ensure that we can get this facility built in the United Kingdom as quickly and as safely as possible, which will be to the benefit of us all.
We first developed commercial nuclear power in this country 70 years ago. Since then, our decades of nuclear experience have provided a legacy of skilled workers and world-leading academic institutions as well as expertise in the whole nuclear lifecycle, from fuel production to decommissioning and radioactive waste management.
We are already speeding up our nuclear expansion. Hinkley Point C, Britain’s first nuclear reactor in a generation is being built, and we are also making rapid progress on Sizewell C. Just last week, I was happy to move the development consent order and hold the spade that will cut the first turf on the Sizewell C site in the next few weeks. Together, those two plants will generate enough zero-carbon power for 12 million homes, reducing our reliance on imported energy and supporting the shift to net zero. At the same time, our aim to announce the outcome of Great British Nuclear’s SMR technology selection competition this year will make it the fastest competition of its kind in the world. And so I reiterate: we are getting on with it.
With regards to the point that my hon. Friend the Member for Ynys Môn made about engaging with our international partners, I got off a call with my counterpart in the Government of the Czech Republic just a few hours ago, and I am engaging with counterparts across the world who are looking at what we are doing on our SMR down selection and our wider nuclear road map with envy. They are looking to copy, to the extent they can, the processes that we are undertaking in this country, so that they too can build their civil nuclear capacity, generate enough nuclear power to be energy-independent and reach their net zero objectives, which, of course, is good for the entire world.
As my hon. Friend the Member for Ynys Môn set out, Wales has a crucial and pivotal role to play in our future nuclear programme. That is not only because of its long and proud history of nuclear skills and expertise, but its growing interest in building on that rich history and its recognition that nuclear development could have a major economic impact across north Wales in particular.
We know that nuclear developments can have a profound impact on a region’s economic prospects, ensuring that communities directly benefit from investment by delivering high-paid and secure jobs in many places where they are in desperately short supply. As such, we have a strong relationship with the Welsh Government and local communities. For example, the Anglesey energy island forum, co-chaired by the Department for Energy Security and Net Zero, has supported a positive and constructive dialogue that brings the different levels of government together. There is particularly strong interest in and support for nuclear power at the Wylfa site in north Wales. The Prime Minister himself has said that Wylfa is a strong site for new nuclear. Although he stressed that no decisions have been made on individual sites, he said that it remains a strong and good candidate—one of several sites that could host nuclear projects in the future.
I will finish by focusing on the crucial point: after several decades of decline, the UK’s nuclear industry is reawakening, and we are determined to harness our unique strengths and become a leading nuclear energy nation once again. The roadmap that we published just two weeks ago will help us get there by providing direction for future decisions and strengthening ties with those who know the industry best—our nuclear workers and industry leaders across the UK, including in Wales and at Wylfa. Crucially, it will allow us to explore all the options and make sure that we spark a nuclear revival that benefits the entirety of the UK, including Wales. I look forward to continuing to work with my hon. Friend the Member for Ynys Môn as our plans progress in the coming months.
Question put and agreed to.
Oral Answers to Questions
Andrew Bowie Excerpts(10 months, 1 week ago)
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Giles Watling (Clacton) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Last week, I announced the biggest expansion of nuclear power for 70 years. We will deploy a fleet of small modular reactors and build up to 24 GW of nuclear by 2050. This will ensure we have reliable, cheap and low-carbon power to protect consumers from price volatility and hostile foreign regimes, bolstering our energy security.
Kevin Foster
A new civil nuclear road map is a welcome step in growing our nuclear sector, potentially creating jobs across the United Kingdom, from the north of Scotland to the south-west peninsula, and including sites like Wylfa. What assessment has he made of the economic impact of the potential growth of the nuclear sector for the south-west region, particularly given the nuclear expertise at sites such as Devonport and Hinkley Point?
Andrew Bowie
My hon. Friend is absolutely right that the nuclear sector supports jobs across the United Kingdom, and it would be very welcome if Governments across this United Kingdom were to come together and champion that industry as it grows over the next few decades. The nuclear sector is vital to the economy of south-west England, as my hon. Friend knows, providing up to 11,000 jobs in construction alone at Hinkley Point C, and will go on generating highly skilled jobs for generations as we continue to build up this important part of our energy security.
Bob Blackman
I thank my hon. Friend for his answer and the announcement of the nuclear road map. Small modular nuclear reactors can bring energy to our towns and cities across the country very quickly. They are under development right now, so when can we see the first one installed and providing power to the grid?
Andrew Bowie
My hon. Friend will be pleased to know we are bringing forward small modular reactors and that the next phase of the live SMR competition will launch within weeks. Our aim is for the competition to be the fastest of its kind in the world, to help facilitate final investment decisions for the project being taken in the next Parliament and operational projects being here in the UK by the 2030s. The launch will mark a significant step forward for eligible companies and for the UK’s broader nuclear ambitions.
Giles Watling
We have given away over the decades the massive advantage this country had with the Calder Hall development in 1956, so will my hon. Friend reassure me that we will regain that ground by pushing for more rapid development of a sensible nature, as the Finns have with their hole in the ground for storing nuclear waste? Will he inform the House with which nuclear vendors the Department is engaging?
Andrew Bowie
My hon. Friend is right to refer to the proud history we have in this country when it comes to civil nuclear—the developments at Calder Hall led the world—and the deep geological disposal that is happening in Finland right now. The plans in our nuclear road map will quadruple nuclear capacity by 2050. We are making rapid progress on Sizewell C and the SMR competition. We continue to work closely with countries such as Finland, with which I engage with regularly. It has built and operates large-scale geological disposal facilities, and signed up to the COP pledge to triple nuclear capacity.
Mr Clive Betts (Sheffield South East) (Lab)
I welcome the Government’s commitment to SMRs, which are the way forward for the future of nuclear. Sheffield Forgemasters is ideally placed to produce the essential parts for those reactors and has a memorandum of understanding with both Rolls-Royce and Hitachi. Will the Minister meet the Mayor of South Yorkshire, Sheffield Forgemasters and others in the consortium? The consortium now has access to significant development capital, so we can build the SMRs in South Yorkshire and create the thousands of well-paid jobs we want, as well as green energy.
Andrew Bowie
I would be delighted to meet the Mayor of South Yorkshire. Through the nuclear road map, we are committed not only to ensuring our energy security and achieving a further drive towards our net zero objectives, but to building up the supply chain and creating those high-wage, high-skilled jobs at all levels across the United Kingdom. Of course I would be delighted to meet the Mayor of South Yorkshire and, indeed, anybody else who represents an area that wants to invest in this future and this great exciting moment for nuclear capacity.
Tim Farron (Westmorland and Lonsdale) (LD)
I, too, am in favour of new nuclear; it is an important part of a balanced green energy mix. Does the Minister share my concern that much of the investment in new nuclear in the UK is coming from overseas companies, and even the Governments of overseas countries, especially given that the emphasis is not just on reducing carbon emissions, but on energy security? Would he perhaps consider other forms of renewable energy, such as tidal power, for which the entire supply chain is British and which would be great for our economy as well as for tackling climate change?
Andrew Bowie
I thank the hon. Gentleman for his question. I hold a contrary position. I am proud of the fact that this country is open to inward investment and, indeed, attracts attention from some of the biggest companies in the world to invest in our future energy security and net zero objectives. Of course, in unveiling all these exciting announcements, as we did last week, at the heart of what we are seeking to achieve is to create those high-wage, high-skill jobs as we move forward across the United Kingdom, building up that supply chain, and tidal will be an important part of the mix as well.
Jim Shannon (Strangford) (DUP)
I thank the Minister for that most progressive answer. The progress made in nuclear safety and the need for clean energy clearly indicate that the Government must invest in the security of this sector. That would lower energy costs and help us to meet our green targets, which we all want to meet and should meet. Will the Minister outline what progress has been made to secure this investment?
Andrew Bowie
As the hon. Gentleman knows, just last week we unveiled our civil nuclear road map. I committed to meet him and, indeed, anybody else from Northern Ireland to seek to build up the manufacturing and supply chain workforce in Northern Ireland, so that all parts of our United Kingdom can benefit from the once-in-a-generation investment that we are making right now.
Duncan Baker (North Norfolk) (Con)
Daniel Zeichner (Cambridge) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Because of our plan, half of homes now meet the Government’s 2035 energy performance certificate band C goal, a significant jump from 14% in 2010. In 2010, low-cost measures were targeted, with 960,000 installations. In 2022, funding shifted to high-cost measures to benefit low-income households and less-efficient homes, resulting in approximately 200,000 installations last year.
Matt Rodda
I fear that the Minister may be referring rather too much to new build homes. The reality is that in 2010 there were 1.8 million insulation measures introduced into cavity walls and lofts, yet in 2022, in comparison, there were only 80,000. That has left my constituents in Reading and Woodley, who mainly live in Victorian and 20th-century homes, struggling with very high bills, so what is the Minister going to do about that?
Andrew Bowie
The hon. Gentleman did not acknowledge that we have moved from 14% to 50% because of the actions of a Conservative Government. To answer his question directly, we are allocating around £20 billion to clean heat and energy efficiency over this Parliament and the next, which will benefit his constituents. That includes our Great British insulation scheme, worth £1 billion, which will deliver insulation measures to around 300,000 of the country’s least energy-efficient homes, saving them £300 to £400 each year by March 2026.
Daniel Zeichner
I echo the observations of my hon. Friend the Member for Reading East (Matt Rodda). I remember in 2008-09, long before I came into this place, working endlessly with Cambridge City Council and energy providers on encouraging people in the city to take up home insulation schemes. Since then, we have seen precisely nothing—nothing has been going on. Labour has a huge ambition for the future; what is the Government’s ambition?
Andrew Bowie
I know mathematics is not a strong point for the Labour party, but I will go over the figures again: 14% to 50% over the course of the last three Parliaments, delivered by the actions of this Conservative Government. We have a plan to continue to deliver for the least well-off in those homes that need more energy efficiency measures. As I just said to the hon. Member’s colleague, we are allocating £20 billion to clean heat mechanisms over this and the next Parliament, and we are going to continue to deliver for the British people.
Mr Philip Hollobone (Kettering) (Con)
Thousands of new homes are being built across the Kettering constituency. What is my hon. Friend doing, together with the Department for Levelling Up, Housing and Communities, to decarbonise the future housing stock and improve energy efficiency in new build housing?
Andrew Bowie
We recently announced further details of the £6 billion extension that will be allocated from 2025 to 2028. This will support an extra 500,000 homes—prioritising those who need it most, but including new build—and is on top of support for 700,000 families to install improvements through the Great British insulation scheme and the energy company obligation by March 2026.
Imran Hussain (Bradford East) (Lab)
Mr Philip Hollobone (Kettering) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I thank my hon. Friend for that question. He will be delighted to learn that renewable generation has increased fivefold from 2010 to 2022. It has gone from a risible 26 TWh to 135 TWh. Some 40 GW of renewable energy has connected to Great Britain’s electricity networks since 2010. Since 2010, the UK has seen a more than 500% increase in the amount of renewable electricity capacity in the grid thanks to this Conservative Government.
Madam Deputy Speaker (Dame Eleanor Laing)
I call the shadow Secretary of State.
Cherilyn Mackrory (Truro and Falmouth) (Con)
Andrew Bowie
It is incredibly encouraging to hear about what is happening at A&P Falmouth. As my hon. Friend knows, the floating offshore wind manufacturing investment scheme is providing up to £160 million to support investment in UK ports. However, while FLOWMIS is still live, I am afraid I cannot comment on individual applications.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Charlotte Nichols (Warrington North) (Lab)
Following the recent state visit from the Korean President, when he identified nuclear as one of the key sectors for future collaboration in the UK-Korea trade deal, and the publication—albeit two years later than promised—of the civil nuclear road map last week, could the Minister please detail what conversations are taking place with the Department for Business and Trade to maximise inward investment opportunities for the nuclear supply chain in Warrington North and across the UK?
Andrew Bowie
I thank the hon. Lady for her question and for her support for our nuclear road map published last week. As she knows, we look forward to increasing the opportunities to co-operate with South Korea on civil nuclear, including on fuel supply chain safety, security, non-proliferation, decommissioning and the development of new reactors in both countries. That will benefit jobs and the supply chain around the UK, specifically where there is a strong history of a nuclear industry, such as in her constituency, which she champions.
Nick Fletcher (Don Valley) (Con)
The additional power supplies from offshore wind farms are creating the need for further pylons, yet if we doubled the voltage of power lines from 400 kV to 800 kV, we might not need them. That is used in China and America, and would stop the need for all the additional power lines running up and down the country. Will the Department look into that?
Selaine Saxby (North Devon) (Con)
Can my hon. Friend confirm that, given all the questions about carbon accounting, sustainability and value for taxpayers’ money, the Government will not be guaranteeing Drax billions more in subsidies?
Andrew Bowie
As my hon. Friend knows, we will shortly be consulting on potential support arrangements to help facilitate the transition of large-scale biomass generation to power bioenergy with carbon capture and storage. Power bioenergy with carbon capture and storage could deliver negative emissions to support our climate change targets and the UK’s energy security.
Civil Nuclear Road Map
Andrew Bowie Excerpts(10 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Today, we are publishing three key documents which signal the biggest expansion of nuclear power for 70 years and reinforce the UK’s position as a leader in the civil nuclear renaissance: a civil nuclear road map, a consultation on alternative routes to market, and a consultation on a proposed policy for siting new nuclear power stations.
The measures we announce today will help to reduce electricity bills, support thousands of jobs and improve UK energy security. This includes exploring building a major new power station and investing in advanced nuclear fuel production. This sets us on a path towards deploying our huge ambition of up to 24 GW of nuclear power in Britain by 2050 as part of a cleaner, cheaper, more secure energy system for the future.
The civil nuclear road map is an unprecedented, world-leading initiative that sends out an electrifying signal to the industry. It sets out our strategy for the deployment of the best new nuclear reactors in the UK, and how His Majesty’s Government intend to work with the nuclear sector to deliver this ambition.
The road map establishes our vision for a vibrant nuclear sector, providing detail on the policies we are pursuing to enable delivery, covering areas such as siting, regulation, financing, the joint work we are undertaking with defence nuclear colleagues to develop the required nuclear skills and supply chain in the UK, and how we are taking care of our nuclear legacy through policies on decommissioning and waste management.
We envision a vibrant, world-leading nuclear sector, setting the gold standard for other countries. Announcements we are making in the road map include a commitment to reform the regulations, financing and decommissioning of civil nuclear to make it more streamlined and agile, removing red tape while retaining the UK’s world-class standards of safety. For example, these measures could cut the approval times for reactors that are already approved by overseas regulators by up to 50%.
We are also announcing our commitment to reduce global dependence on Russian fuel and grow the UK supply chain by investing £300 million, alongside industry, in British production of clean, green high assay low enriched uranium fuel for innovative new reactors, offering a commercial alternative to Russia for ourselves, and our allies and partners.
This is just the beginning of the UK standing at the forefront of nuclear innovation and excellence. The road map also sets out our long-term ambition for nuclear, providing high-level timelines and key decision points for a wide range of nuclear technologies over the next decades, including small modular reactors (SMRs), advanced modular reactors (AMRs), and gigawatt-scale projects. In particular, it sets out our intention to explore a further GW-scale project after Sizewell C and our plans to make investment decisions concerning 3-7GW every five years between 2030 and 2044.
Advanced nuclear technologies, such as SMRs and AMRs, present the opportunity to decarbonise across the energy sector, from grid electricity through industrial heat to entirely new industries such as the production of hydrogen and synthetic fuel.
Last year, we set up Great British Nuclear (GBN) as an arm’s length body responsible for helping deliver new nuclear projects and help lead our energy revolution. But we are also keen to harness innovation in the private sector and help developers bring forward new nuclear projects outside of GBN’s ongoing SMR selection process.
We are therefore today also launching our alternative routes to market consultation with the aim to understand how Government could support the private sector to bring forward advanced nuclear projects as well as explore the uses and services they could provide the economy.
Finally, in recognition of our enhanced nuclear ambitions and the exciting potential offered by advanced nuclear technologies, we are launching a public consultation on a proposed new policy for siting new nuclear power stations.
This consultation marks an important first step in the process for developing a new nuclear national policy statement for England and Wales. The results of this consultation will be used to inform the drafting of the nuclear national policy statement document, which we intend to publish for further consultation. This will be part of the suite of energy national policy statements, and linked to the overarching energy national policy statement, which has recently been revised. Our intention is to designate the new nuclear NPS in 2025, subject to parliamentary processes. For the first time, we intend for the NPS to provide a planning policy framework for SMRs and AMRs as well as traditional gigawatt-scale power stations.
To achieve the UK’s nuclear ambitions, the Government believe that additional sites will be required for new nuclear projects, along with greater ongoing flexibility in the site selection process to enable new technologies.
In the siting consultation, we are excited to introduce a positive shift in approach. The new NPS will empower nuclear developers to identify potential sites for development, fostering developers’ innovation and flexibility. While the existing designated nuclear sites may possess many inherent positive attributes, potentially making them a consideration for future development, this change allows for exploration of diverse locations. By entrusting developers with this responsibility, we aim to streamline the process, encourage creative solutions, and enhance the overall efficiency of nuclear development, ultimately contributing to the growth and sustainability of the industry.
We propose that siting of new nuclear would continue to be constrained by robust criteria that determine where development can occur and developers would be empowered to undertake initial screening of sites based on the criteria, with advice from the regulators and statutory agencies.
It is our intention that safety will remain paramount, with the highest safety, security and environmental standards overseen by the independent nuclear regulator and environment protection agencies. Public consultation and community engagement would also remain an essential part of the process.
Copies of these three documents consultation will be published on gov.uk. A copy of the civil nuclear road map will be laid in the House. Copies of the consultations on alternative routes to market and proposed policy for siting new nuclear power stations will be placed in the Libraries of the House.
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Civil Nuclear Road Map
Andrew Bowie Excerpts(10 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
With permission, Madam Deputy Speaker, I wish to make a statement on civil nuclear power in the UK. Today, we have published three key documents that reinforce the UK’s position as a leader in the civil nuclear renaissance: a civil nuclear road map, a consultation on alternative routes to market, and a consultation on a proposed policy for siting new nuclear power stations. That sets us on a path towards deploying up to 24 GW of nuclear power in Britain by 2050 as part of a cleaner, cheaper and more secure energy system for the future. It is the biggest investment in more than 70 years.
In the civil nuclear road map we are setting out our overarching strategy for the deployment of new nuclear reactors in the UK, and how His Majesty’s Government intend to work with the nuclear sector to deliver that ambition. The road map establishes our vision for a vibrant British nuclear sector, providing detail on the policies that we are pursuing to enable delivery, covering areas such as siting, regulation, financing, the joint work that we are undertaking with Defence nuclear colleagues to develop the required nuclear skills and supply chain in the UK, and how we are taking care of our nuclear legacy through policies on decommissioning and waste management.
Announcements in the road map include a commitment to reform the regulations, financing and decommissioning of civil nuclear to make it more agile, thereby streamlining regulation while retaining the UK’s world-class standards of safety. For example, the measures that we are announcing today could cut by up to 50% the approval times for reactors that are already approved by overseas regulators.
We are also announcing our commitment to reduce global dependence on Russian fuel and to grow the UK supply chain by investing £300 million, alongside industry, in the British production of clean, green high-assay low-enriched uranium fuel for innovative new reactors, thereby offering a commercial alternative to Russia for ourselves and our allies and partners.
The road map also sets out our long-term ambition for nuclear, providing high-level timelines and key decision points for a wide range of nuclear technologies over the next decades. Those technologies include small modular reactors, advanced modular reactors and gigawatt-scale projects, including a new commitment to explore a further gigawatt-scale nuclear project after Sizewell C. Advanced nuclear technologies, such as SMRs and AMRs, present the opportunity to decarbonise across the energy sector, from grid electricity through industrial heat to entirely new industries such as the production of hydrogen and synthetic fuel.
Last year, we set up Great British Nuclear as an arm’s length body responsible for helping to deliver new nuclear projects and lead our energy revolution, but we are also keen to harness innovation in the private sector and help developers to bring forward new nuclear projects outside of GBN’s ongoing SMR selection process. We are therefore today also launching our alternative routes to market consultation. That consultation, which will run for 12 weeks, aims to understand where the Government could support the private sector to bring forward advanced nuclear projects.
Finally, in recognition of our enhanced nuclear ambitions and the exciting potential offered by advanced nuclear technologies, we are launching a public consultation on a proposed new policy for the siting of new nuclear power stations. That consultation marks an important first step in the process for developing a new nuclear national policy statement for England and Wales, and will run for eight weeks. The results of the consultation will be used to inform the drafting of the national policy statement document, which we intend to publish for further consultation.
The proposed siting processes announced today would, of course, apply only to England and Wales. Although our ambition is for a whole British nuclear revolution, the current Scottish Government sadly remain committed to blocking any planning application for new nuclear in Scotland under their devolved consenting regime. However, we continue to invite the Scottish Government to join us and more than 30 other countries around the world to allow for reinvestment in, and the renewal of, our nuclear capacity across the whole UK in order to meet our net zero and energy security objectives. Our intention is to designate the NPS in 2025—subject, of course, to parliamentary processes. For the first time, we intend for the NPS to provide a planning policy framework for SMRs and AMRs, as well as the traditional gigawatt-scale power stations.
To achieve the UK’s nuclear ambitions, the Government believe that additional sites will be required for new nuclear projects, along with greater ongoing flexibility in the site selection process to enable new technologies. We are excited to introduce a positive shift in approach in the siting consultation: the new NPS will empower nuclear developers to identify potential sites for development, fostering developers’ innovation and, indeed, flexibility. Although the existing designated nuclear sites may possess many inherent positive attributes that potentially make them a consideration for future development, the change allows for the exploration of diverse new locations. By entrusting developers with that responsibility, we aim to streamline the process, encourage creative solutions and enhance the overall efficiency of nuclear development, ultimately contributing to the growth and sustainability of the industry.
We propose that the siting of new nuclear would continue to be constrained by robust criteria that determine where development can occur. Developers would be empowered to undertake the initial screening of sites based on those criteria, with advice from regulators and statutory agencies. Of course, it is our intention that safety will remain paramount, with the highest safety, security and environmental standards overseen by the independent nuclear regulator and environment protection agencies. Public consultation and community engagement will also remain essential parts of the process. This package —this vision, this announcement—represents the biggest investment in nuclear in the UK for over 70 years, ensuring our energy security, keeping us on the path to net zero and delivering the jobs of the future: our nuclear future.
I commend this statement to the House.
Andrew Bowie
I am so pleased to hear the hon. Lady’s support for the Conservative party’s policies regarding nuclear, given that we are investing in all of the above and more. I do welcome the support of the official Opposition and their recent damascene conversion to the benefits of nuclear power, but we should never forget, in this place and beyond, that any nuclear projects in this country and any nuclear power stations have been delivered only by a Conservative Government. It is a record of which were very proud. Labour was in power for 13 years and delivered nothing.
We are very proud today to be publishing our civil nuclear road map. As I say, it is important for the industry that there is cross-party consensus and agreement that investment in nuclear is to the benefit of this country, the economy and the environment and, indeed, will provide energy security and wean ourselves and our allies off our reliance on Vladimir Putin for our energy needs.
The hon. Lady is absolutely right that delivering new nuclear power stations will yield results for the British people and deliver cleaner bills. In Finland, where nuclear power stations are now delivering more than 40% of energy on to the grid, bills have dropped by an incredible 70%. She asked about the final investment decision on Sizewell C; we remain committed to making that decision by the end of this Parliament. On Hinkley Point C, we are in fact very proud of the progress that is being made. Just last month we saw the dome being lifted on to the top of reactor 1. I have nothing but admiration for the workforce and everybody involved in delivering that first-of-a-kind project at Hinkley, and we continue to support it.
The hon. Lady asked about the next phase of the small modular reactor competition. It will be launched within weeks, so I ask her to bide her time and keep her patience. We are very excited to have six fantastic technology companies bidding to deploy in the United Kingdom, and we are moving faster than any comparable programme around the world, to ensure that Britain and the British people benefit from investment in small modular reactors and the benefits they can bring to the energy mix and to local economies.
The hon. Lady asked about skills. One of the things that the nuclear industry can bring, and indeed delivers at this point, is high-skilled, high-wage jobs throughout the country, and indeed in many places where those jobs are at a premium. It is absolutely right that we look at how we can encourage more people, and make the spaces available within industry and in our educational institutions to get more people into the jobs of the future in the nuclear industry. That is why I, along with my hon. Friend the Minister for Defence Procurement, have launched the nuclear skills task force, chaired by Sir Simon Bollom. It will publish its initial findings and recommendations in the very near future.
As I said, I welcome the new-found support, optimism and positivity for nuclear demonstrated by the Labour party, and when we as the Conservative party go on to win at the next election, I am sure that the hon. Lady will continue to offer that support from the Opposition Benches.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Chair of the Science, Innovation and Technology Committee.
Greg Clark (Tunbridge Wells) (Con)
The Committee that I have the privilege of chairing published a big report on the future of nuclear power last year, calling for a comprehensive strategy for new nuclear, so I warmly welcome the Minister’s statement and the publication today, which responds very comprehensively and substantially to many of the recommendations we made. In particular, I welcome the commitments to new gigawatt-scale nuclear as part of the 24 GW target; to streamline the regulation, which is extremely important; to small modular reactors; and to the security that comes from investing in our own domestic source of nuclear fuel. Those are very big steps forward. May I ask the Minister specifically to say whether the new site approval mechanism will allow these sites to be used for SMRs by the 2050 deadline or target?
Andrew Bowie
I thank my right hon. Friend for his question and for all the work he has done to champion nuclear, not only in his capacity as Chair of the Select Committee but in his time as Secretary of State for Business, Energy and Industrial Strategy, when he was in charge of getting this ship moving. To answer his question directly, yes it will. The new siting strategy will cover the possibility of the deployment of all technologies —SMR, AMR and gigawatt-scale reactors. I welcome my right hon. Friend’s support.
Richard Thomson (Gordon) (SNP)
I thank the Minister for advance sight of his statement. He is absolutely right in one respect: the Scottish Government do not support the development of new nuclear power in Scotland. The reasons for that are simple: beside the environmental concerns, the economics do not lie. Nuclear power is slow to deliver and horrendously expensive, and the policy of recent years under Labour and Conservative Governments has been simply to allow private companies to privatise the profits while the risks are socialised for taxpayers. We on this side of the House—at least, on the SNP Benches—all know that Scotland’s comparative advantages lie in hydrogen and renewables, both areas in which the Scottish Government’s ambitions appear to considerably outstrip those of the current UK Government.
May I ask the Minister two simple questions? First, despite his disagreement with the Scottish Government’s stance on planning and nuclear, will he and his Government respect the devolution settlement as it stands? Secondly, will he give an undertaking, as none of his predecessors over the last half century or more have been able to do, that when the multibillion-pound decommissioning liabilities become live for any new generation of nuclear power stations, they will lie squarely on the private companies that have benefited in the preceding decades and will not fall on the taxpayer?
Andrew Bowie
The Scottish National party, like almost every nationalist party in the world, has a misplaced belief in its own exceptionalism, and nowhere is that more true than on nuclear. At COP28, we saw over 30 countries come together to pledge to increase civil nuclear capacity around the world by a third, so clear and obvious is it that nuclear is essential not just in ensuring our energy security, benefiting local communities and driving forward our economy, but in reaching our net zero goals and ensuring that we have a cleaner energy baseload in the future. Indeed, there is no net zero without nuclear.
It pains me, especially as a Scottish Member of Parliament, that the Scottish Government’s wrong-headed position on this remains extant. I would very much welcome a change of direction within the Scottish Government. I urge the Scottish National party to look around the world at the countries joining with us in this nuclear renaissance and revival, and to think of the huge benefits that could be brought to Scotland, with its proud history in nuclear going back many decades, if it were to join us on this journey.
Of course we respect the devolution settlement. We are absolutely committed to maintaining it. What I urge, though, is a change of direction, a change of approach and a change of position by the Scottish Government, so that the Scottish people, the Scottish economy and the Scottish environment can benefit from future investment in nuclear that will be felt in England and Wales, and indeed in so many other countries around the world.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Chair of the Environmental Audit Committee.
Philip Dunne (Ludlow) (Con)
Today’s statement provides welcome clarity about the Government’s road map for the delivery and revival of new nuclear energy capacity, and I will be writing on behalf of my Committee to the Minister shortly to raise some points about the SMR competition that he has touched on today. Notwithstanding the grudging support from those on the Opposition Front Bench, what steps is my hon. Friend taking to build the broad consensus behind this essential component of the delivery of net zero, so that the road map does not fall victim to the short-term thinking that bedevilled the delivery of a safe and effective renewal of nuclear capacity in the past, notably under the previous Labour Government?
Andrew Bowie
I thank my right hon. Friend for his support of this document and for the work that he has done in chairing the Committee to drive forward the arguments for further investment in nuclear. I know he shares my belief that if we are to reach net zero, nuclear will play a large part in the mix of energy solutions that we invest in.
My right hon. Friend is absolutely right that we need to build a broad consensus. I genuinely welcome the support of the official Opposition for new investment in nuclear. As I said, when we look around the world, the pace at which the mood is changing and the broad acceptance of nuclear as a key benefit in reaching our net zero goals is incredible. It will take a lot of hard work on the part of all of us who believe in the benefits that nuclear can bring economically, to our energy security and, ultimately and most importantly, to the environment, to keep the pressure up. I look forward to his writing to me, and to discussing the issues that he has raised further, and I thank him once again for his broad support for what we are trying to deliver.
John Spellar (Warley) (Lab)
May I welcome the statement? I was going to commend the Minister on the work that I know he has done, until he unfortunately became petty political—I think he spent a bit too much time in Scottish politics. He will be aware that the small modular reactor assessment is already behind the Government’s own timetable. That is undermining Rolls-Royce, which builds small reactors for the Royal Navy and has done for many decades. Meanwhile, the formidable American political industrial machine is hoovering up customers around the world. Can we not learn from the vaccine taskforce how to accelerate process while maintaining safety? Will he now get a move on so that we can build British modular nuclear reactors using British workers?
Andrew Bowie
I know the right hon. Gentleman would never stoop to petty politics in this Chamber or anywhere else, but I have to disagree with him. I share his passion for small modular reactors, and I share his belief that Rolls-Royce is a world-leading company that is delivering for this country right now and will continue to do so in future.
We are proud of the small modular reactor competition, which we launched in July. We have already completed the first process. We have six world-leading technologies competing to get investment from the UK Government for deployment here domestically, of which Rolls-Royce is of course a part. We will be launching the next phase in a matter of weeks. It is world-leading, and faster than any comparable programme in the world. The right hon. Gentleman says to get a move on, but we have not stopped to draw breath since we first launched GBN and the small modular reactor drawdown competition in the summer. However, I welcome his support for what we are doing, and I hope that he can encourage more of his colleagues to support it.
Trudy Harrison (Copeland) (Con)
Today I am fighting back tears of joy and jubilation for this road map, because it is absolutely clear that we have a Minister and a Government who are utterly committed to nuclear—whether that is civil, defence, safe storage, medical isotopes or the entire supply chain. May I remind my hon. Friend the Minister that the road map clearly refers to the A595, the road between Barrow and Workington, where the journey began? Will he give his absolute assurance that he will remember where the journey began —with the commitment from my community and the community across Furness and west Cumbria—and ensure that that is at the forefront of his decision making on future missions?
Andrew Bowie
My hon. Friend—she is a friend—is rightly proud of the contribution that Cumbria has made to our nuclear journey over the last century. The journey began at Calder Hall and has continued. She is right, and at the forefront of our decision making will be the experience, expertise and learning that has developed in and around her constituency, which will of course be at the forefront of our nuclear renaissance.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
I congratulate my hon. Friend on his statement, which is probably the most significant statement on energy policy for at least a decade. I welcome in particular the intention to streamline planning processes and regulation to reduce unnecessary costs and delays. May I ask for an assurance that if there is to be new nuclear development at Bradwell in Essex, it will be of a type that does not affect the marine protected area of the Blackwater estuary, a historic oyster fishery on which many of my constituents depend?
Andrew Bowie
I thank my hon. Friend for his question and for his support at this exciting moment. Of course, many sites will be looked at for future nuclear development, and in every case they will have to adhere to the stringent, strong and gold-plated environmental standards that we expect of nuclear licensed sites across the United Kingdom.
Madam Deputy Speaker (Dame Rosie Winterton)
I do apologise for having called two Members in a row from the same side. I shall immediately correct myself by calling two from the Opposition side.
Wera Hobhouse (Bath) (LD)
Thank you, Madam Deputy Speaker—I took no offence at all; it is fully understood.
The best route to affordable energy security is renewables. Nuclear power is blighted by delays and rocketing costs, and the Government are never honest about its much higher costs compared with renewables. On the Government’s watch, renewables have faced long delays and the costs for offshore wind development have increased by 40%. Will a renewables road map soon follow the statement to address those challenges and ensure that the Government do not lose their competitive advantage in offshore wind development?
Andrew Bowie
I lose track of where the Liberal Democrats sit on nuclear. I know that their current leader was against it, then he was for it, and then against it again. Right now, I am not quite sure.
I do take issue with the hon. Lady’s insinuation that we are not leading the world in renewables. We have the first, second, third, fourth and fifth—and, soon, the sixth—largest offshore wind farms in the world generating power right now for Great Britain. We are investing at pace in solar and in a host of new and emerging technologies because, unlike some parties, we believe that we should not invest all our time and money in one technology. We need a broad range of technologies if we are ever to meet our legally binding net zero commitment. I look forward to the day when the Liberal Democrats can hold a policy for more than five minutes and come to the House and actually support us on the journey to our net zero future.
Olivia Blake (Sheffield, Hallam) (Lab)
I welcome the Minister’s statement. However, what lessons will be learned from previous and current projects on value for money? The National Audit Office was scathing about some of the decisions that had been taken on those projects. What more can be done to support manufacturing in this area right across the UK?
Andrew Bowie
Building up the UK’s supply chain is essential. One of the huge benefits that will be accrued through this biggest-in-70-years investment in new nuclear is the ability to build up our manufacturing base in the United Kingdom, creating those high-wage, high-skilled jobs that we want to see in more communities around the entire country. Of course, lessons will be learned from previous projects. We are always looking at value for money for the British taxpayer, which is why, for example, we are using the regulated asset base model for funding Sizewell C.
Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
I warmly welcome my hon. Friend’s announcement today, because when the advanced gas-cooled reactors are decommissioned by 2030, we will have a dip in nuclear production. The Public Accounts Committee, of which I have the honour to be deputy chair, has done a lot of work on this. We recently had a follow-up visit to Sellafield. I agree with my hon. Friend that they do fantastic work there, but it is our largest single project, with a minimum cost of £200 billion over the next 100 years. Will he undertake to renew our efforts to get a better handle on the decommissioning costs, so that they can be properly allocated and we can have a true estimate of what nuclear generation costs?
Andrew Bowie
I agree with my hon. Friend on the amazing work being conducted at Sellafield in the constituency of my hon. Friend the Member for Copeland (Trudy Harrison). The lessons being learned through the decommissioning process at Sellafield will yield benefits. We are leading the way across the world on the decommissioning of sites and are very happy to be advising other countries on their decommissioning efforts. We need to ensure that any projects run by the Nuclear Decommissioning Authority are proved to be value for money, and that we learn from the lessons of the past.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
My party’s policy is to support the development of the present nuclear sites in Wales, one of which is Trawsfynydd in my constituency. The Welsh Government have funded Cwmni Egino to develop Trawsfynydd, and £20 million was allocated only last autumn for that purpose by the north Wales growth deal to enable critical development and planning, prior to the final investment decision to be made anon. Given the strategic developments and investments in Wales, can the Minister confirm that the entirely publicly owned Trawsfynydd, with its potential 550 jobs, remains a possible location for an SMR in the near future? Will he please visit Trawsfynydd?
Andrew Bowie
I would be delighted to visit the right hon. Lady’s constituency. Trawsfynydd has exciting potential as a site for an SMR, and for other nuclear licensed activities. It and many others are potential sites for the deployment of these new technologies in the years ahead.
Charlotte Nichols (Warrington North) (Lab)
As co-chair of the all-party parliamentary group on nuclear energy, I warmly welcome today’s publication of the long-awaited civil nuclear road map, in particular the exploration of alternative routes to market for SMRs and AMRs outside the Great British Nuclear scheme. On the delivery of large-scale projects, I am curious to know why the road map states on page 20 that the Government will need to wait for the Sizewell C final investment decision before they can set out timelines and processes for a new large-scale project in the UK. That formal work and engagement in the Minister’s team need not wait on the work of another team over which he does not have control or oversight. In the spirit of speeding up delivery, might he begin this work now in readiness for maximising the time we have left before 2050 to get this done?
Andrew Bowie
The hon. Lady can be assured that work is already beginning on identifying future sites for large-scale gigawatt power stations. We are committed to announcing more in due course.
Jill Mortimer (Hartlepool) (Con)
May I add my intense excitement for this announcement and, in particular, for the inclusion of advanced modular reactors in the road map? Finally we have a way forward for them. My hon. Friend knows how important it is to me to get an AMR in Hartlepool. He was with me on his first ever visit to Hartlepool on the day that we announced a two-year extension for our reactor, which takes us to 2026. Does this announcement mean what I think it does—the guarantee of a future for nuclear at Hartlepool? Is it only a matter of time before he comes back to announce not only what we will build there, but who will build it and when?
Andrew Bowie
I remember that visit distinctly—my first as the nuclear Minister. I thank the hon. Lady and everyone who hosts nuclear power stations in their constituencies for championing that industry, the sector and the workforce. The workforce and the sector have been widely castigated in the popular mindset over many years, but now are reaping the rewards of continued support from people such as my hon. Friend and others in this House. I am delighted that Hartlepool got the extension. The road map that we set out today will deliver a clear identification of what can be delivered, where and how. That means a bright future for nuclear in Hartlepool.
Deidre Brock (Edinburgh North and Leith) (SNP)
Nova Innovation in my constituency recently announced the wonderful news that it had won €20 million of investment from the EU to lead a pan-European consortium to create the Seastar tidal energy farm in Orkney, the largest tidal energy site in the world. Why does the UK Government continue to largely ignore this safe, lower cost, reliable form of energy? As Greenpeace points out, the energy industry itself knows that the economic case for slow, expensive nuclear just does not add up.
Andrew Bowie
Tidal received money for the very first time through the last auction round in the contracts for difference process. This Government are investing in tidal technologies, wind, solar, hydrogen, carbon capture and storage, continued exploration for oil and gas—which the hon. Lady’s party opposes—and nuclear. Of course, it is fantastic news for her constituents and the businesses around Scotland that are winning contracts to invest in renewables. What, to their shame, Scottish National party representatives in this place never mention is the hundreds of thousands of jobs in Scotland that depend on the nuclear industry—manufacturing, construction, education and the fantastic work going on right now in Torness, the only generating power station in Scotland currently delivering power to 1 million homes. Perhaps the Scottish National party will come to the Chamber and explain how, when that power station closes down—as sadly and inevitably one day it will—they will replace the power generated for Scottish homes under their plans to completely ignore this safe, secure and clean option for secure future energy.
Damian Collins (Folkestone and Hythe) (Con)
I welcome the civil nuclear road map, in particular the recognition that we will need additional nuclear sites to those in the existing policy framework. Does the Minister agree that there is one big difference between a gigawatt reactor and an SMR—gigawatt reactors are very big, and SMRs are comparatively quite small? Therefore, does he believe that we need to consider smaller sites such as Dungeness in my constituency, which could be very suitable for such technologies as SMRs?
Andrew Bowie
Again, I welcome my hon. Friend’s support and I thank him for hosting me on a visit to Dungeness—the fish and chips were exquisite. I agree that we will look at every site and possible site and judge them on the basis of what type of technology could be built there. That will benefit his community, communities around the country and the United Kingdom more widely.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his statement. It is great that the Government have outlined plans for the biggest expansion of nuclear power in 70 years to reduce energy bills, which so many of our constituents struggle with on a daily basis. Minister, I ask you this question because you admitted that Northern Ireland—
Jim Shannon
Apologies, Madam Deputy Speaker. What provisions does the UK civil nuclear plan include to involve Northern Ireland? How will it ensure that the region’s perspectives and concerns are adequately taken into account in the development and implementation of nuclear politics and policies, so that we can create jobs and strengthen our economy at the same time as other areas in the United Kingdom?
Andrew Bowie
As ever, the hon. Gentleman champions his constituents and the people and economy of Northern Ireland. It is essential to me that every part of our United Kingdom benefits from this once-in-a-generation investment into new nuclear. I would be delighted to meet him to discuss how Northern Ireland and his constituents in Strangford could benefit from investment in skills and the supply chain. Deployment of nuclear capabilities is a devolved competency, but I would be happy to meet him to see what his constituents can get from this historic announcement.
Katherine Fletcher (South Ribble) (Con)
From Anglesey, all the way up the coast to the tip of Cumbria, the north-west nuclear arc will be, as some Members have already suggested, dancing a little jig today. Springfields in Lancashire is the geographic and, I would argue, fuel production heart of that north-west nuclear arc. I welcome this announcement to secure the future £300 million investment to ensure that Vladimir Putin does not have his hands on the taps of advanced nuclear fuels. That is so important for the hundreds, if not thousands of people who live in South Ribble and work in the adjacent Springfields. This investment helps Lancashire support the UK domestic nuclear industry, but can the Minister tell me if there are opportunities for exporting Lancashire nous, skills, capability and fuel to the world?
Andrew Bowie
Absolutely. Lancashire, like Cumbria, is at the heart of the vision we are announcing today. The £300 million investment in new nuclear fuels means that the United Kingdom will remain among a handful of nations committed and able to work across the entire fuel supply chain. The Secretary of State for Energy Security and Net Zero is visiting Springfields as I speak, demonstrating our commitment to that plant and its people. Moving forward, we will be central to our allies and partners around the world being able to move away from and wean themselves off relying on hostile foreign actors like Vladimir Putin for their energy baseload. Lancashire will be key to doing that.
Greg Smith (Buckingham) (Con)
Nuclear is hugely important for our energy security, so I welcome today’s statement. Missing from my atomic Friend’s extensive list of the benefits of nuclear is how much kinder nuclear is on land use, with a small modular reactor needing just two football pitches to produce enough power for around 1 million homes, compared to 2,000 acres of solar that will power only 50,000 homes. Does the Minister agree that nuclear is so much kinder and does not involve destroying vast swathes of the British countryside and impacting our food security?
Andrew Bowie
My hon. Friend is absolutely right about the footprint and the comparable impact on land of nuclear compared to other technologies, but it is very important that we have a wide range of energy technologies moving forward. We will benefit from investment in wind, solar, hydrogen, CCUS and the nuclear we are announcing today, but I welcome his support for what we are announcing.
Peter Aldous (Waveney) (Con)
I welcome the statement and the publication of the three documents. With Sizewell C, as well as offshore wind and hydrogen, East Anglia, Suffolk and Lowestoft will play a vital strategic role in enhancing our energy security, keeping bills low and driving forward the transition to net zero. To enable the local area to play this lead role to the maximum advantage of local people and local businesses, does my hon. Friend recognise the vital importance of investment in skills at East Coast College and investment in infrastructure, such as in the port of Lowestoft?
Andrew Bowie
Absolutely. My hon. Friend is spot on. I was very happy to visit East Anglia last year and see for myself the investment Sizewell C is making in the local community and in local colleges, supporting young people who want to get into the new high-skilled jobs that will be produced through the development of projects such as Sizewell C. I am very happy to announce that I will be visiting East Anglia again on Monday to see the progress that has been made at Sizewell C. He is absolutely right that the benefits that accrue locally through investment in nuclear, at large scale and at small modular scale, are unprecedented. That is one of the things that I hope comes out of today: yes we are talking about our energy security and yes we are talking about reaching net zero, but the impact locally to communities through investment in new nuclear is unprecedented. I am very excited to see what it brings in the years ahead.
Martin Vickers (Cleethorpes) (Con)
I welcome the Minister’s statement. Clearly, nuclear will have a major part to play in energy generation in coming years. A number of companies have already looked at sites in my northern Lincolnshire constituency, which he will know is a major centre for the renewable energy sector. He spoke of encouraging developers to identify potential sites. Does he agree with me that it is also important that local authorities play a part in encouraging this type of development? I can assure him that North Lincolnshire Council and North East Lincolnshire Council will welcome such developments.
Andrew Bowie
I completely agree. Local authorities have a key role in driving forward interest and investment in small modular reactors and advanced modular reactors, and indeed in any new technologies that come through as the result of today’s announcement and the investment we are making in nuclear. I would be delighted to visit his constituency and see the potential of possible sites for small modular reactor deployment in the area he represents, because he is absolutely right. The potential for these technologies is huge not just, as I have said, for our energy security moving forward, but for the benefits they bring to communities up and down the length and breadth of the United Kingdom.
Tidal Range Energy Generation
Andrew Bowie Excerpts(10 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is an absolute pleasure to serve under your chairmanship this morning, Dame Caroline. It is also a pleasure to be here to discuss such an important topic, so I congratulate the hon. Member for Birkenhead (Mick Whitley) on securing today’s important debate. He has a considerable track record of championing this particular sector—and indeed his constituency, of course—so I welcome his calling this debate.
As was mentioned, the invasion of Ukraine and the subsequent rise in global energy prices demonstrated the importance of securing domestic home-grown energy sources. As we saw at COP28 in the UAE, for the first time, there is a global consensus on the need to move away from fossil fuels. Therefore, I, and indeed the Government, share with the right hon. Member for Hayes and Harlington (John McDonnell) and the hon. Member for Wirral West (Margaret Greenwood) the sense of the urgency that is required here and of the necessity to move quickly.
We are very proud that the UK is already a global leader in the field of climate change, and we must continue to find and develop more ways to extract naturally occurring energy through renewables. We have already cut emissions further and faster than any other major economy since 1990, we were the first country in the G7 to halve our emissions, and we have boosted our share of renewables from just 7% in 2010 to almost 50% today. That keeps us on track for our legally binding net zero 2050 target and for a fully decarbonised power sector by 2035.
To deliver these targets and provide long-term energy security, we must consider all of the tools available to us, and tidal range—the reason we are here today—provides yet another domestic energy source to our growing list of renewables. It also shows promise as a large-scale, fully predictable and non-weather-dependent source of power. Tidal range, as everybody in this room knows, could yield energy-system benefits by balancing the grid against variable renewable sources such as wind and solar. Additionally, with sites of suitability being close to centres of high demand, such as Liverpool, tidal range could circumvent the need for extensive grid connections.
The UK has the second-highest tidal range in the entire world, and that is why, in the British energy security strategy, we committed to aggressively explore its potential, building on the research already conducted, such as in the place referred to by the hon. Member for Strangford (Jim Shannon) earlier. Therefore, officials in the Department are doing just that—aggressively exploring the options for tidal range in the future—by working with the sector to model the potential energy-system benefits of tidal range and establish an evidence base to build upon.
Officials in the Department for Energy Security and Net Zero will continue to engage closely with the sector throughout this process and will communicate their findings, when appropriate, to the sector and indeed to Members of this House. We have already consulted with the sector and published a dedicated page for tidal range on gov.uk, and, just yesterday, I had a meeting on how we might improve even that offer through the Government portal. As a nation surrounded by water, we will continue to work with the sector, and with Members interested, to explore and take advantage of the opportunities presented by tidal range to provide clean and secure renewable energy.
I thank the hon. Member for Birkenhead for bringing this important, pertinent and timely debate to this Chamber today, and I look forward to working with him and others, and the sector, as we seek to improve and build upon the success of tidal range moving forward.
Question put and agreed to.
Oral Answers to Questions
Andrew Bowie Excerpts(11 months, 4 weeks ago)
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Patrick Grady (Glasgow North) (SNP)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government have created a new £10 million community energy fund to support community energy projects in England. We are working with the sector on content and a timetable for a consultation on barriers for community energy projects.
Patrick Grady
Does the Minister recognise the frustration and disappointment at the length of time and legislative barriers that remain for campaigning community groups who want community energy schemes to move forward? It is the most secure way of generating electricity. The Conservatives are supposed to be the party of free markets and competition, so why are they denying consumers the choice that would come with an exciting community energy scheme?
Andrew Bowie
Far from denying consumers opportunity, we are already beginning to work with organisations, such as the Community Energy Contact Group. On the content of the consultation we launched and whether it should include solutions to barriers, I will need to take a view when it responds.
Mark Pritchard (The Wrekin) (Con)
My right hon. Friend the Minister for Energy Security and Net Zero earlier mentioned the solar taskforce. Will my hon. Friend the Under-Secretary liaise with his colleagues and the National Farmers Union on combining community energy schemes with farmers and the rural sector? The solar taskforce mentions acres of supermarket rooftops being available for solar, but makes no reference to farm buildings. It makes sense that community schemes, working with local farmers in rural areas, can deliver community energy and allow farmers to diversify.
Andrew Bowie
I hear very much what my right hon. Friend says and understand his concerns. It is therefore with equal alacrity that I accept a meeting on my right hon. Friend the Minister’s behalf to discuss those issues moving forward.
Stephen Morgan (Portsmouth South) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The proposed AQUIND interconnector project is a live planning application currently being redetermined by my right hon. Friend the Secretary of State, who is progressing the work in the normal course of business. That means that, as set out in the planning propriety guidance, I am unable to give any further information on the progress of this live case.
Stephen Morgan
Portsmouth people have waited far too long for the Government to decide against AQUIND. Will the co-owner’s donation of more than £1 million to the Tories—including £6,000 to the Prime Minister’s constituency party and over £70,000 to the Chancellor—be a factor in the Minister’s decision on what is a disastrous project for Portsmouth?
Andrew Bowie
The Secretary of State is following a well-established planning process. I am sorry that I cannot say any more about this live case beyond what I have said already; it is with the Department and the Secretary of State for a decision.
Afzal Khan (Manchester, Gorton) (Lab)
Giles Watling (Clacton) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I frequently meet the network companies to discuss their important work developing our electricity transmission network. I have also been pleased to meet communities and MPs from East Anglia to discuss concerns about network infrastructure. However, as the decision maker for planning consents, the Department does not get involved in individual projects.
Giles Watling
I feel moved to found a Clacton Day. Why not?
I have called for the old Bradwell site on the Dengie peninsula to be used for the arrival of undersea cables, as opposed to wrecking the environment of Essex and other areas with substations, pylons and so on. With the scrapping of High Speed 2 as an example, does my hon. Friend agree that public bodies now need to do a better job of assessing possible alternatives, instead of just barrelling forward with boatloads of taxpayers’ cash and destroying our beautiful countryside?
Andrew Bowie
I thank my hon. Friend for that question. As he knows from when we met to discuss this in June, the Electricity System Operator is responsible for planning the design and location of grid reinforcement, while transmission owners develop individual projects. I understand that Bradwell had been assessed but was not deemed appropriate for this project. However, I cannot comment on specific projects, in order to avoid prejudicing planning decisions. I would be very happy to meet my hon. Friend again to discuss this in further detail.
Kenny MacAskill (East Lothian) (Alba)
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government have committed £20 billion to support early development of CCUS—carbon capture, usage and storage—and £500 million to the industrial energy transformation fund to help industry to decarbonise, with phase 3 expected to open for applications in early 2024.
Alex Cunningham
We are still waiting for a lot of that to happen. The Tees Valley hosts a huge number of energy-intensive industries, but we have lost many of them over the years—a few years ago it was steelmaking, but more recently we saw the demise of the Cleveland Bridge & Engineering Company at Darlington, which built the Sydney harbour bridge. The last ammonia manufacturing plant in the country, that of CF Fertilisers, closed its doors this year, as did Mitsubishi’s Cassel works, with both citing that their energy costs were way higher than those of their European and American competitors. What are Ministers going to do to ensure that we do not have any more closures as a result of their policy failures?
Andrew Bowie
It is a shame that the hon. Gentleman could not find it within himself to congratulate Mayor Ben Houchen on all the work he is doing to bring steelmaking back to the Tees Valley for the first time in a generation. The Government are engaging with the steel industry on a sustainable future, as announced on 15 September. Tata Steel expects to invest £1.25 billion, including a UK Government grant worth up to £500 million, in a new electric arc furnace. Frankly, the hon. Gentleman should start talking up the Tees Valley.
Gill Furniss
Sheffield has a proud history of steelmaking, so much so that we are known globally as the “steel city.” To this day, steel supports thousands of jobs in Sheffield, but repeated failures by this Government mean that more and more families are worried about the future of this key industry and the livelihoods that depend on it. Will the Minister commit to giving this vital sector the support it needs to decarbonise in a fair way, while ensuring that the industry has a green, sustainable and prosperous future?
Andrew Bowie
I thank the hon. Lady for that question and, yes, I can give that commitment, because we are already engaging in that work. We are working with companies up and down the UK to ensure that they are able to decarbonise and deliver secure, high-wage, high-skilled jobs into the future, which will be the backbone of this economy as we move forward.
David Duguid (Banff and Buchan) (Con)
First, let me thank the Government for the support they give for CCUS, and not least the Acorn project in my constituency. Does my hon. Friend agree that CCUS needs to be developed across the UK at pace? Does he recognise the particular value of new CCUS power stations, such as the planned project in Peterhead in my constituency, which will generate more than 900 MW and, in conjunction with the Acorn project, will do so 95% emission-free?
Andrew Bowie
Yes, I thank my hon. Friend and congratulate him on his relentless efforts to decarbonise the North sea and the north-east of Scotland, and his support for the Acorn project. I was pleased to join him and the Prime Minister at the announcement on that in the summer. As my hon. Friend knows, CCUS is a priority for this Government, and we are progressing at pace. Power CCUS will be a vital component of our route to net zero, which is why we are committed to supporting at least one power CCUS plant by the mid-2020s.
Alun Cairns (Vale of Glamorgan) (Con)
The Government are taking significant steps to support industrial clusters around the UK. They are each at a different stage of development and much of the technology is emerging as we speak, but the 2030 target is quite close and the scale of investment runs into billions of pounds. What engagement is my hon. Friend undertaking to discuss investment plans with individual businesses, to ensure that they meet the target and use the latest available technologies?
Andrew Bowie
My right hon. Friend is absolutely right that investment is key to delivering our ambitious plans, which is why the Secretary of State was at the global investment summit yesterday. Working with the Department for Business and Trade and the Minister for Investment, we are engaging with companies on a daily basis, inspecting their investment plans to ensure they are fit for this country and the future, and will deliver the ambitious, world-leading targets we have set ourselves to decarbonise and provide the jobs of the future for this country.
Samantha Dixon (City of Chester) (Lab)
Priti Patel (Witham) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Grid reinforcement is critical to delivering our world leading offshore wind targets. The electricity system operator is responsible for designing a modern grid that uses a mix of upgraded existing lines, offshore transmission networks and new underground and overhead lines to bring this low-cost, homegrown generation to consumers.
Priti Patel
My constituents are angry about the ill-thought-out proposal by National Grid to impose 100 miles of pylons and overhead powerlines between Norwich and Tilbury. Will the Minister share with me, the House and my constituents what work he is doing to ensure that the Government do all they can to encourage National Grid and developers to build an offshore grid that will provide more investment and growth in renewables, and pull the plug on these awful pylons?
Andrew Bowie
As my right hon. Friend knows, I visited East Anglia a few months ago and I plan to visit again. I hear the frustration and the concerns of her constituents, which she has brought to the House today. As she knows, the ESO remains responsible for electricity network design. Offshore routing is more expensive and the costs would be borne by consumers across the country. However, we will continue to engage with the ESO as it develops proposals that strike the balance of offshore and onshore infrastructure.
Mr Speaker
I call the spokesperson for the Scottish National party, who must have a great connection with the east of England.
Mr Speaker
I think there would have been better questions. Time is a bit tight, but please answer the question, Minister.
Andrew Bowie
The hon. Gentleman should probably direct that question to my Scottish Government counterparts, who are in the same party as him. He wants to ride roughshod over the Scottish planning system to allow for a faster deployment of this new energy infrastructure across Scotland, including in his and my own constituencies. The Scottish Government have control over planning, the ESO have control over developing those plans and—
Virginia Crosbie (Ynys Môn) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It would not be Energy questions without a question on Wylfa from my hon. Friend, who is such a champion for that technology and for her constituency. We all agree that Wylfa is a great candidate for new nuclear and one of several potential sites that could host new projects—[Interruption.] Ignore the luddites on the SNP Benches. As a first step towards a new national policy statement, the Government will consult later this year on a way forward to determine how new nuclear developments might be located.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Alexander Stafford (Rother Valley) (Con)
Andrew Bowie
The Government aim to reach a strategic policy decision before the end of the year on whether to support blending of up to 20% hydrogen by volume into the GB gas distribution networks. We are building the evidence to determine whether blending offers strategic and economic value and meets the required safety standards.
Chris Green (Bolton West) (Con)
With organisations such as the Dalton Nuclear Institute and the University of Bolton Institute for Materials Research and Innovation, combined with the Greater Manchester vision for “Atom Valley”, will my hon. Friend update the House on the part that it will play in Britain’s nuclear future?
Andrew Bowie
I thank my hon. Friend for his continued support for this growing and important sector. Alongside the work of the nuclear skills taskforce, we are currently in phase B of our advanced modular reactor research, development and demonstration programme. We aim to demonstrate that technology by the 2030s to decarbonise industry and we welcome his support in that work.
Mary Glindon (North Tyneside) (Lab)
As part of the recent floating offshore wind manufacturing investment scheme, ambitious and comprehensive bids for funding to support developments by three major industry players on the Tyne were unsuccessful. Will the Minister meet me and those key Tyne businesses to discuss what further opportunities the Department can bring to mobilise the high-quality assets of our great river?
Dr Thérèse Coffey (Suffolk Coastal) (Con)
My right hon. Friend the Secretary of State has made a lot of progress in trying to bring together a holistic network, but it is too late for communities in Suffolk, Norfolk and Essex. In that regard, will she request that the electricity system operator publishes its survey of the Bradwell site, and that it undertakes a fresh one, with a full cost-benefit analysis, as a pilot for future connections?
Andrew Bowie
As my right hon. Friend knows, the ESO has conducted an investigation into Bradwell and its suitability, but I am happy to meet her again to discuss Bradwell, the location of future projects, and how we might work together to ensure that her constituents see the benefits of any future energy infrastructure built in that part of the country.
Caroline Lucas (Brighton, Pavilion) (Green)
It now seems clear that the funds that the Government plan to commit to loss and damage at COP28 will come from the UK’s existing climate finance commitments. We cannot tackle the climate crisis by robbing Peter to pay Paul. Given that a properly resourced and operational loss and damage finance fund has to be a litmus test of success, will the Minister commit to looking at new and additional forms of funding, including a permanent windfall tax on fossil fuel companies and a tax on high-emission travel, to deliver new finance and make polluters pay?
Trudy Harrison (Copeland) (Con)
Do my right hon. Friend the Secretary of State and the Minister for Nuclear and Networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), agree that the very best location for two 470 MW Rolls-Royce small modular reactors is next to Sellafield, which will use some of the power and is a centre of nuclear excellence?
Andrew Bowie
My hon. Friend is another great champion for nuclear. It gave me great pleasure to visit her constituency just a few weeks ago to see the great work being done at Sellafield. As we have set out, we aim to deploy up to 24 GW of nuclear energy by 2050, and we remain open to all available technologies that will deliver it. We are developing a new national policy statement that will provide the planning framework for new nuclear power beyond 2025. We are consulting on a proposed way forward for determining how new nuclear developments might be located.
Floating Offshore Wind
Andrew Bowie Excerpts(1 year ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a pleasure to serve under you in the Chair this afternoon, Dame Angela. After quite an exciting political week, it is a pleasure to end with such an—on the whole—agreeable and positive debate in Westminster Hall. I think we all agree on the potential of floating offshore wind and the huge contribution it makes to the United Kingdom, our economy and our drive towards net zero, energy security and independence.
I congratulate my hon. Friend the Member for North Devon (Selaine Saxby)—she is a friend—on securing this important debate. She has been a vocal champion of floating offshore wind at all levels—from her constituency through to the wider Celtic sea region—in her role as chair of the all-party parliamentary group for the Celtic sea. She rightly highlighted the benefits that this new technology could bring to the United Kingdom as a whole.
Far be it from me to disagree with the shadow Minister, the hon. Member for Croydon Central (Sarah Jones), but the United Kingdom is actually one of the world leaders in floating offshore wind. The world’s first floating offshore wind farm was built in UK waters. Since then, we have built a strong base of new projects and development to grow our industry still further. Indeed, in the oil and gas industry, which has already been referenced by the hon. Member for Aberdeen North (Kirsty Blackman)— my constituency neighbour—and which surrounds our constituencies, there are opportunities for floating wind to play a crucial role in decarbonising North sea production, by accessing deeper waters and providing electricity to those platforms.
Our 80 MW of currently installed floating wind capacity builds on our world-leading status in fixed-bottom offshore wind deployment—not that anyone would know it, listening to the Labour party. We have over 14 GW of installed capacity—the most in Europe—with the first, second, third, fourth and fifth largest offshore wind farms in the world generating power right now. Contrary to the Labour party’s castigation of this Government’s record, we have gone from only 7% of renewable electricity on the grid in 2010—when Labour left office—to 48% in quarter 1 of last year. We have decarbonised faster than any other G7 nation, at the same time as growing the economy.
The opportunity for floating offshore wind is significant. The Global Wind Energy Council has said:
“The market is nascent, but could be huge: 80% of the world’s offshore wind resource potential lies in waters deeper than 60m.”
That is too deep for fixed-bottom wind. The UK’s Offshore Renewable Energy Catapult’s Floating Offshore Wind Centre of Excellence has estimated that floating offshore wind has
“the potential to deliver £43.6bn in UK gross value add…by 2050, creating more than 29,000 jobs in the process.”
Our 5 GW ambition recognises that and the potential for floating wind to play a key role in our energy mix as we move steadily towards net zero. We are committed to building on the UK’s position and to placing the UK at the forefront of the development of this exciting new sector. However, we know that 5 GW is a stretching ambition, and we are working hard to create the right environment for investment and to address barriers to deployment.
First, we recognise the crucial importance—raised today by every Member who contributed—of port infra- structure to floating offshore wind. That is why we launched the £160 million floating offshore wind manufacturing investment scheme—or FLOWMIS for short. That funding will help leverage the vital investment needed in port infrastructure to deploy floating offshore wind at large scale. FLOWMIS closed for applications on 27 August, and I can reassure Members that we are assessing all the bids we received.
Secondly, we recognise the importance of the right support mechanisms through the world-leading and envied contracts for difference scheme. The scheme is looked to worldwide as the model for how to support the deployment of renewables, and CfD auctions have so far awarded contracts totalling over 30 GW of new renewable capacity across all technologies, including around 20 GW of offshore wind. Last year’s allocation round, AR5, was a success story for many technologies, including marine energy and the first three geothermal projects.
However, we recognise the shortfall in fixed-bottom and floating offshore wind, and I acknowledge the concerns that my hon. Friend the Member for North Devon and others raised at the time and this afternoon. We reflected carefully on the results of AR5, and I trust that today’s announcement detailing the parameters for next year’s allocation round, AR6, demonstrates that we have listened and responded to concerns. The administrative strike price for floating offshore wind has increased from £116 to £176 per MWh—an increase of 52% in real terms from AR5—recognising the unprecedented upward pressure on project costs, which, as we have seen, have affected the industry worldwide. We hope today’s announcement will bring forward viable floating wind projects as we look to boost investment in the industry.
Thirdly, we recognise the importance of a long-term pipeline of projects to give investors the confidence that they need to take long-term decisions. The UK has the largest floating wind pipeline in the world, based on confirmed seabed exclusivity, with around 25 GW already agreed, including through the ScotWind leasing round referenced today and the INTOG process.
Selaine Saxby
Could my hon. Friend clarify something in today’s AR6 announcement? We all know that there were two projects ready to bid in AR5, and at this point there are two projects ready to bid. Now that the strike price seems to be acceptable to all concerned, is there any opportunity for us to accelerate the decision for these two projects and then effectively to have an AR7 for all the projects in the next pipeline, so that we can get these ones afloat?
Andrew Bowie
I understand very much why my hon. Friend wants that to be the case, but we must recognise that one reason for the success of renewables, including in this country, has been the predictable options we have had. Developers are already planning for AR6 in March next year, and bringing the round forward any further could jeopardise it, not amplify it, so we are reluctant to do that. However, I hope the confidence the industry will receive from today’s announcement means that AR6 will be a huge success. We all need it to be, and that is why we took that decision.
As my hon. Friend will know, the Crown Estate is also moving forward with its plans to launch leasing round 5, making available areas of seabed capable of supporting up to 4.5 GW of capacity in the Celtic sea. The Government fully support those plans, which represent the first opportunity for commercial-scale floating offshore wind projects in the region. We also recognise the importance of a long-term pipeline in the Celtic sea beyond leasing round 5. We will continue to work closely with the Crown Estate on that as we seek to realise the full potential and opportunities represented by floating offshore wind in the Celtic sea. The Crown Estate is due to make further announcements on its plans before the end of the year.
We recognise the importance of dialogue between industry and Government in driving progress. The floating offshore wind taskforce is co-chaired by industry and Government. Its first report, in March this year—“Industry Roadmap 2040”—has been highly informative in shaping our understanding of the specific demands on port infrastructure needed to support floating wind at scale. The taskforce is currently working on a vision to 2050, due for publication in quarter 2 next year, which will set out the potential prize that floating offshore wind could offer the UK.
We will continue to work closely with industry, through RenewableUK and the Offshore Wind Industry Council, to assess supply chain needs and opportunities for the UK and to develop an industrial growth plan—an IGP—to support the growth of sustainable supply chains.
Kirsty Blackman
On that issue, as I said, Scotland encouraged the conversation between developers and the supply chain. Are the Minister’s Government doing everything they can to ensure that those who are bidding, and winning the bids, are working with the supply chains to get them upskilled as quickly as possible, and to ensure that they can make investments in the confidence that they will be able to create widgets for offshore wind farms?
Andrew Bowie
Widgets being one of the specialties of our region. There is always more we could do, and we should absolutely seek to push the boundaries and work as closely as possible with the industry—in lockstep with it—to ensure that the supply chain in the UK grows, creating the jobs of the future and ensuring that the pieces, the widgets and everything else that is required to develop a successful floating offshore wind industry is created here in the UK, bringing benefit to communities up and down this country.
The floating offshore wind taskforce is an important part of that process, and we now have our industry road map as well. We are working closely with industry to deliver that, but of course there is more that we can, and will, do. The Government are open to any suggestions as to how we improve that relationship more to ensure that we get to the place we need to go.
I was about to address the comments the hon. Member for Aberdeen North made regarding skills. I agreed with every single thing she said, which is not very rare, but it is quite rare. Creating a workforce for the future, for all the energy projects we are embarking on right now, is a personal passion of mine. We need to get young people engaging in science, technology, engineering and mathematics subjects at school. We need to grow the capacity of our further and higher education institutions to deliver the courses and create the apprenticeships with industry that we will need if we are to get people into the growing energy industry in this country. We need to ensure that the right processes are in place, so that those people who want to transfer, upskill and reskill from existing technologies and industries into new and emerging technologies and industries can do so.
The passporting issue the hon. Lady raised is incredibly important to that journey. As the Nuclear Minister, I am delighted to have set up the nuclear skills taskforce between my Department and the Ministry of Defence, to see what we can do to grow that workforce. Similar work is going on in the renewables sphere, and I am keen to see what we can do to work with the existing oil and gas industry, for example, to transfer skills and make that transfer much easier.
We understand that cost is a challenge for nascent sectors such as floating wind. We are supporting the sector with £31 million of funding, matched by £30 million from industry, through the floating offshore wind demonstration programme to explore innovations to help reduce the cost of deploying floating offshore wind technology. As part of its 2050 vision, the floating offshore wind taskforce is also looking to identify the key enablers of cost reduction and recommend specific actions to address them.
Finally, given my role as the Networks Minister, it would be remiss of me not to mention the grid, networks and connections, which have rightly been raised by all Members present—not a day goes past when another connection issue is not brought to my desk in the Department. We know that these issues are a significant barrier to the deployment of many renewables projects, and a challenge for our energy infrastructure more widely. In July 2022, the Government appointed Nick Winser to the role of electricity networks commissioner, to advise the Government on how to reduce the timeline for transmission network delivery by half. The commissioner’s final recommendations were submitted to the Government and published on 4 August. We welcome his report and are committed to the direction of its recommendations. We have committed to publishing our response to those recommendations and an action plan imminently.
As my hon. Friend the Member for North Devon knows, community engagement, respect and thought-through, sympathetic planning of onshore infrastructure is something I take a keen interest in. For all the reasons I have suggested, decarbonising the grid and increasing capacity are important—in fact, they are vital—but they must be done with respect, sympathy and understanding of local communities and businesses. We must be willing to change, adapt and be flexible in those plans. My hon. Friend knows that, given the role of Ministers in the planning system in England and Wales, I cannot comment on specific projects, including the White Cross farm project that she referenced. However, the developers will have heard her loud and clear today and at other times. A response on community benefits, which she asked for, will also be published imminently.
I congratulate my hon. Friend on securing this timely and important debate.
Kirsty Blackman
I mentioned the fact that communication from the grid is not always up to scratch. Will the Minister ensure that he does what he can to put pressure on? I know he is working on the speed, but we also need to make sure that communication is improved, so that developers know what is happening and when it is happening—even just when they will hear an answer.
Andrew Bowie
Absolutely. I assure the hon. Lady that I am working hard on that.
I hope I have demonstrated that the Government not only understand the challenges faced by this exciting new sector, but that they are taking concrete action to address them. The opportunity is there for the UK to firmly establish itself as a world leader in floating offshore wind, and we are determined to see this vision and opportunity realised.
Energy Bill [Lords]
Andrew Bowie ExcerptsWednesday 18th October 2023
(1 year, 1 month ago)
Commons ChamberRead Full debate Energy Act 2023 View all Energy Act 2023 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Message as at 18 October 2023 - (18 Oct 2023)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I beg to move, That this House disagrees with Lords amendment 274B. Lords amendment 274B was added to the Bill during consideration in the Lords of Commons amendments. As was set out, the Government did not agree with the inclusion of the amendment and, after further careful consideration, we remain of the same view today. The amendment commits the Government to a consultation
“on the barriers preventing the development of community energy schemes”
and sets out whom we would consult. It also commits the Government to bringing forward proposals to remove identified barriers to community energy.
However, as a result of working closely with colleagues who have made representations during the passage of the Bill, on 5 September I set out the Government’s commitment to consult on the barriers that the sector faces when developing projects. As a part of that process, we are involving the community energy sector in designing the consultation, through our community energy contact group. The group has already had constructive discussion on this work at its meeting earlier this month. The Government have already made a clear commitment to the consultation—I announced that commitment at the Dispatch Box in September. We therefore think it is unnecessary, and of no additional value, to put the specifics of it in primary legislation.
Sir Jeremy Wright (Kenilworth and Southam) (Con)
I thank my hon. Friend for all the work he has done to put in place not just this consultation but the fund, which will be tremendously useful for these purposes too. Does he accept that there is a sense of urgency here; that there is a need to get on with removing these barriers? If he is not content with the timetable set out in this amendment, will he give the House an indication of what he thinks the right timetable is, so that community energy companies and others can know where they stand and get on with the good work that he and I are both in favour of?
Andrew Bowie
I thank my right hon. and learned Friend for his intervention. Of course, I agree with him that pace is of the utmost importance in supporting community energy groups around the country, which is why the contact group has already met earlier this month and is engaging already on identifying the barriers that the consultation will seek to address and, thus, informing the Government as to what we need to do. That work is ongoing, which is why we do not feel that this amendment is required; we have begun that process already.
There are other issues with the amendment that mean we cannot support its inclusion in the Bill. The amendment would place an additional obligation on the Government to bring forward proposals to remove these barriers within a specific timeframe. As I just said, we cannot be sure what barriers will be raised in the consultation, or what the proper response to those barriers should be, until we have carried it out. We therefore cannot create a legislative obligation to remove barriers within a six-month timeframe when we are not aware of the nature of the barriers and have not yet properly analysed them.
Chris Skidmore (Kingswood) (Con)
I appreciate the Minister’s argument, but that is technically not what the amendment says; there is no requirement for legislative reform, only one to bring forward proposals. It is unfair to mislead the House—
Chris Skidmore
My apologies to the Minister. I did not mean to make accusations so strongly. The challenge here is that subsection (4) of the new clause set out in the amendment contains no reference to legislation such as the Minister suggested. That is my point.
Andrew Bowie
I thank my right hon. Friend for his intervention. It is the Department’s view and mine that the amendment would result in legislation being required. As I said, we absolutely understand the importance of this, which is why I launched the consultation process as I did. It is why we are engaging so closely with the sector and all interested parties so that we can get this consultation up and running and out as soon as possible, and identify those barriers preventing community energy groups from accessing the market. I know that he has a passion in this area and holds strong convictions on it. I would be happy to continue to work with him, alongside the community energy contact group, as we develop our proposals for the consultation.
I also wish to reassure the House that we will continue to work closely with the sector to support its important work, both through our existing support, including, for example, the £10 million community energy fund, and in carrying out the consultation, to which we have already committed.
Wera Hobhouse
Unfortunately, the Government are unwilling to see the potential of community energy. Community energy schemes currently generate just 0.5% of the UK’s electricity. That is because—we know all this; we have said it many times—the financial, technical and operational requirements involved in becoming a licensed supplier put initial costs at more than £1 million. That is a massive risk for any new start-up or small scheme. Any community energy projects such as the one in Bath can exist only because it has reached a certain size. That is one of the problems.
The Government are aware of that fact, but voted to remove Lords amendments to rectify it. The Government need to start matching their supportive words about community energy with action. The most effective step that they could take would be to enable local supply and remove the regulatory barriers that prevent community energy schemes from selling their power to local customers. That could include a community right to connect to the grid ahead of commercial projects that deliver little or no social and community benefit. I am sure that I have answered the question that the right hon. Member for Wokingham (John Redwood) was about to ask.
Community energy schemes are ready to provide clean, green energy that helps local communities. They are not asking for a huge amount of public money, just for the Government to stop blocking the system. In this time of energy uncertainty, having a reliable local supplier can only be positive. I fully support Lords amendment 274B to hold the Government’s feet to the fire on community energy. I urge everyone in this House to do the same.
Andrew Bowie
I thank all right hon. and hon. Members for contributing to this afternoon’s debate. I will first respond to some of the comments made by my constituency neighbour, the hon. Member for Angus (Dave Doogan). I know that he does not like it very much, and would like it if it were not the case, but he is absolutely wrong and I have to correct him: this is not the English Government; this is the British Government. We are the Government of the entire United Kingdom—a United Kingdom of which Scotland remains a part and, if the opinion polls are anything to go by, will continue to remain a part of for quite some time.
The hon. Member has an obsession with decrying the nuclear industry as something that the Tories alone are obsessed with. Tell that to the Governments of France, Sweden, Finland, Italy, Poland, the Czech Republic, Slovakia, Canada, the United States of America and more, who are reinvesting and restarting their own civil nuclear industry, as is the Labour Welsh Government, who are very much in favour of further investment in, and development of, nuclear. He raised the lack of funding for community energy projects; £10 million over two years is an incredibly generous offer. That is alongside other UK growth funding such as the UK shared prosperity fund, which community energy groups can access by working in partnership with their local authorities.
The hon. Member for Bath (Wera Hobhouse) asked when the community energy fund will be launched. It will be launched as soon as possible. We are aiming to launch applications to the fund as soon as we physically can.
My opposite number, the hon. Member for Southampton, Test (Dr Whitehead), is right that we have had a productive and constructive relationship when it comes to discussion of the Bill. The 72 hours that we spent together in Committee were beneficial to everybody’s health, I am sure, and to the development of Government policy on this matter. We have come some way from where we were when we started discussing how we would support community energy. He rightly praised the role that the sector has played during the passage of the Bill. The community energy sector has been incredibly receptive to our commitment to a consultation and to the £10 million fund.
John Redwood
I am grateful to the Minister for giving way. Did he notice that the hon. Member for Bath (Wera Hobhouse) would not give way? She was arguing—the typical position of her party—that it knew all the answers before the consultation, yet it still wanted a very long, drawn-out consultation to avoid doing the answers.
Andrew Bowie
Two seconds. I will respond to the first intervention before I give way to the hon. Lady. I also noticed that she managed to answer a question that had not even been asked by my right hon. Friend.
Wera Hobhouse
The amendment also says that the Government should respond to the barriers and put forward proposals. That is really what we want to know: what is the response to any consultation? The Government have failed to give any response to that.
Andrew Bowie
We cannot respond to a consultation that has not been launched yet. We are in the process right now of working with the community energy contact group. In fact, it has already met. Work is under way right now to develop the consultation, identify what the barriers to market are, and get out there and support the community energy sector, as the Government are determined to do.
Dave Doogan
The Minister is very kind. He was re-emphasising the importance of the £10 million community energy investment that he is making in England over two years. The Scottish Government have been investing £5.5 million every year for the last 13 years. If he thinks that his investment is outstanding, how would he characterise the Scottish Government’s investment?
Andrew Bowie
I welcome all Governments’ investment in support of community energy projects across the United Kingdom, but this is a sharp change from the last time the hon. Member came to this place, when he was decrying the fact that we were not extending community energy packages across the United Kingdom. I think I had to inform and educate him that there was already a community benefits package in Scotland, operated by the Scottish Government. Yes, there are problems with that scheme, and we will learn from the difficulties that it has faced. That is why I am so sure that the scheme that we are launching—the £10 million to support community energy projects the length and breadth of the country—is the right one, working in tandem with the funds that are already available north of the border for community energy projects in my constituency and, indeed, in his.
The hon. Member for Southampton, Test spoke about previous amendments on community energy. We have been clear that they would not provide the best outcomes for consumers. A right to local supply already exists, and Ofgem has existing flexibility to award supply licences that are restricted to certain geographies. We continue to believe that it is a commercial matter left to suppliers.
Lastly, I turn to my right hon. Friend the Member for Kingswood (Chris Skidmore). Six months may be too soon, frankly, to adequately analyse the outcomes of the consultation. It must fully take into consideration wider interdependencies in the energy system. We will always aim to respond in a timely manner, but I would not want to put a strict timeframe in legislation.
The Government support our route to net zero. The Government are taking action to ensure that we are more energy secure and energy independent, and the Government are supporting community energy projects the length and breadth of the country. For that reason, we should disagree to the Lords amendment before us.
Question put, That this House disagrees with Lords amendment 274B.
Oral Answers to Questions
Andrew Bowie Excerpts(1 year, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alicia Kearns (Rutland and Melton) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government are determined to ensure that our energy system is not dependent on forced labour at home or abroad. The supply chain and innovation sub-group of the solar taskforce is therefore considering this issue as a top priority.
Alicia Kearns
I start by welcoming my right hon. Friend the Secretary of State to her place.
What conversations has my hon. Friend the Minister had with the Foreign, Commonwealth and Development Office and the Department for Business and Trade on eradicating forced labour from our supply chains? Does he agree that we must ban the worst offending companies from our shores? Will he therefore lead a cross-Government effort to take action on tackling slave labour in our supply chains, just as Germany, America and the EU already have done?
Andrew Bowie
My hon. Friend knows that this issue is a top priority for the Government and for me. A range of tools can be used to tackle forced labour in global supply chains. The Government continue to keep our policy responses under close review, and we are working closely with our partners, including at the United Nations, to hold China to account for its egregious human rights violations in Xinjiang. We have already taken robust action, introduced new guidance on the risks of doing business in Xinjiang, enhanced export controls and introduced financial penalties under the Modern Slavery Act 2015.
Jim Shannon (Strangford) (DUP)
I thank the Minister for that answer. As chair of the all-party parliamentary group for international freedom of religion or belief, I commend the hon. Member for Rutland and Melton (Alicia Kearns) on raising this matter. For me, freedom of religious belief in China is paramount and should be a priority for the Government—I think it is. To make it happen, we need clear legislation in this place and real power from this Government, and we need to be assured that no company that uses forced labour in China can have its products sold in this country. Again, I seek confirmation from the Minister that that serious strong will is there.
Andrew Bowie
I concur very much with the hon. Gentleman’s view on this matter. The Government are determined to ensure that our energy system is not dependent on forced labour. As I said, we are continuing to work with international partners to do what we can to hold China to account for its egregious human rights violations, and to work with the solar industry to see what we can do to weed out forced labour and ensure that it is not part of that supply chain moving forward.
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Electricity networks’ funding is regulated by Ofgem through the network price control. In the current price control, National Grid Electricity Transmission will be investing approximately £700 million in the south-west. Ofgem has allowed £5.7 billion for the distribution network company covering the south-west, £1.2 billion of which is for the south-west region specifically.
Luke Pollard
May I declare an interest, as one of my brilliant little sisters works in the renewable energy sector? I want to see more renewable energy schemes get off the ground in the far south-west, but I am being told that schemes greater than 1 MW have to wait until 2027 at the earliest for a grid connection. This means that dozens of renewable energy schemes are gathering dust on paper, when they should be generating clean power. It is wrong and is setting back our net zero ambitions. What are Ministers doing to speed up grid connections for renewable energy schemes, allowing us to build the already approved clean energy schemes that we need, which will create green jobs, cut carbon and reduce soaring energy bills?
Andrew Bowie
As the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) suggests from a sedentary position, we are doing lots and lots. Specifically, the Government are using strategic planning to support investment ahead of the need in the networks, including the south-west. The first example of that was last year’s holistic network design, which set out a blueprint for connecting new offshore wind projects to the grid by 2030. An update to the holistic network design follow-up exercise, HND 2, will be published early next year and provide recommendations for the connection of floating offshore wind specifically in the Celtic sea. For the first time, offshore wind developers participating in the Crown Estate’s leasing round 5 will receive clarity over their grid connection from the electricity system operator at the same time as a secure seabed lease.
Virginia Crosbie (Ynys Môn) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The British energy security strategy sets out our ambition for deploying up to 24 GW of civil nuclear by 2050. We launched Great British Nuclear to help deliver new nuclear projects, starting with a small modular reactor competition. The GBN offer to successful vendors will include funding to support technology development and support with accessing sites.
Virginia Crosbie
May I say “Croeso” and welcome my right hon. Friend the Secretary of State to her place?
Wylfa is recognised as the best site for new nuclear in the UK—if not in Europe—but a Welsh Affairs Committee report stated recently that ownership of the site is holding back progress. What are the Minister and Great British Nuclear doing to transfer its ownership from Hitachi to an active nuclear developer?
Andrew Bowie
The terms “doughty champion” and “passionate” are regularly thrown about in this place, but when it is a case of championing Wylfa new nuclear, no one comes close to my hon. Friend. When launching the small modular reactor competition in July, the Secretary of State indicated that, as part of a comprehensive offer to industry, GBN would support access to sites for successful vendors, and Wylfa is one of a number of sites that could host civil nuclear projects. However, no siting decisions have been made so far.
Priti Patel (Witham) (Con)