Oral Answers to Questions
Andrew Bowie Excerpts(2 years, 6 months 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(2 years, 6 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 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
(2 years, 7 months 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(2 years, 8 months ago)
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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)
Nuclear Energy: Sizewell C
Andrew Bowie Excerpts(2 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Britain needs a nuclear renaissance to help deliver a low cost, clean and secure electricity system. New nuclear will result in reliable, abundant energy, while driving down consumers’ bills and boosting economic growth.
Sizewell C is a crucial project for delivering against these objectives. As a near replica of the Hinkley Point C project under construction in Somerset, Sizewell C is our country’s next most mature new nuclear project under development, which can benefit from the design certainty and construction learnings that have been developed at Hinkley Point C.
Sizewell C would generate reliable, low-carbon power for 6 million homes—equivalent to 7% of the UK’s electricity—for six decades or more. Beyond keeping the lights on, in each year of operations it could avoid nine million tonnes of CO2 emissions, moving the UK forward on our path to Net Zero.
It would also act as a vehicle for levelling up nationwide, through the huge opportunities for jobs and skills provided by nuclear projects. Sizewell C Ltd—“the company”—has plans for 70% of the construction value to go to UK businesses, and to bring £4.4 billion of investment to the east of England economy during construction. As well as creating and supporting thousands of jobs in Suffolk and nationwide, the company also plans to create 1,500 apprenticeships, helping to build Britain’s nuclear workforce of the future.
In short, Sizewell C represents the next step in meeting our longer-term ambition to provide up to a quarter of the UK’s electricity from homegrown nuclear energy by 2050.
That is why this Government made a historic investment of c.£700 million in Sizewell C (Holding) Ltd—“SZC HoldCo”—last November, joining EDF—our valued partner as the operator of the UK’s existing nuclear fleet, and the lead developer of Hinkley Point C—as a co-shareholder.
Since then, the Government has worked with EDF and the Company to continue the project’s development, and to establish the best conditions for successful delivery. As a shareholder in SZC HoldCo, this summer we have made available £511m of further funding, supporting site preparation and investing in the local community.
We are now seeking to progress to the next stage.
As highlighted in my predecessor’s written ministerial statement in November 2022, we intend to use the regulated asset base (RAB) model to enable a private equity raise, with the aim of bringing new expertise and experience into the company. In our assessment, this approach has true potential to result in a good value for money outcome for consumers and taxpayers, with the RAB structure incentivising the company and private investors to drive efficient construction on schedule, and, in due course, ensure efficiency in operations.
This summer, the Government and the company undertook a market testing process, with a cross-section of potential investors, in order to understand their views on the project, financing approach and how they could assist in project delivery.
Having received positive feedback from this market testing process, and following agreement with our co-shareholder EDF, the Government and the Company are commencing pre-qualification for potential investors, as the first stage of an equity raise process.
To ensure that investment benefits the company, consumers and taxpayers, the intention is to secure investment from qualified organisations able to take a meaningful ownership stake, such that new investors’ incentives are aligned with other shareholders and, importantly, they are able to substantively and positively influence company governance and delivery over the construction period.
Investment is being sought from those with significant experience in the delivery of major infrastructure projects, especially in large-scale nuclear or other complex energy or infrastructure projects. Drawing from this experience would ensure Sizewell C benefits from expertise in areas such as project risk management, cost control, and instilling projects with a culture of commercial focus.
In taking this stake, at the time of a positive final investment decision, investors would be expected to make a commitment to their share of the Company’s equity requirement. This would provide confidence to the Government, EDF and the company that new investors would fulfil their shareholder obligations as Sizewell C moves into the full construction phase.
Any prospective investor interested in participating in the equity raise process will need to complete a pre-qualification questionnaire. My officials, together with SZC GenCo’s management, will assess investors’ suitability against pre-determined criteria and confirm investors’ eligibility for inclusion in the equity raise process. Details of how to access the questionnaire will be available and signposted on www.gov.uk.
I wish to assure the House that the interests of consumers and taxpayers are central as we progress the project. The Government will only accept private investment if it is likely to result in value for money. We will continue to assess and consider our approach over the coming months and will take the time needed to reach a deal which satisfies this objective. As committed to during the passage of the Nuclear Energy (Financing) Act 2022, the Government will publish a full value for money assessment of the company and the project at the point of any final investment decision.
I also want to be clear that the equity sought at this stage does not represent the limit of potential private investment in the company, and that following the outcome of this process there may be further opportunities for private investment during construction and operations.
Finally, as well as value for money, I want to assure the House—as well as British consumers and taxpayers—that should any investments reach the relevant statutory thresholds, investors will be required to pass through the process set out in the National Security and Investments Act 2021, allowing scrutiny of any risks posed with respect to this legislation. The Government will also hold a special share in the company, enabling us to require investors to take certain actions in respect of their shareholdings should future risks appear, including on national security or public policy grounds.
I will continue to update the House on Sizewell C more broadly over the coming months.
[HCWS1036]
Energy Security and Net Zero
Andrew Bowie Excerpts(2 years, 9 months ago)
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Andrew Bowie
The United Kingdom already has a great story to tell on reducing our carbon emissions. We have reduced our emissions faster than any other G7 nation. We were the first European nation to legislate for net zero. We have the first oil and gas basin dedicated to going net zero and the first, second, third and fourth-largest offshore wind farms in the world operating and generating power off the coast of Great Britain right now. We have eliminated our reliance on coal. We have grown to more than 40% of energy being generated by renewables. We have announced further investment in carbon capture, usage and storage, and we are pressing ahead with Great British Nuclear, which I launched two months ago with an exciting programme for small modular reactors. We are on track to deliver 24 GW of nuclear power on the grid by 2025.
[Official Report, 5 September 2023, Vol. 737, c. 274.]
Letter of correction from the Under-Secretary of State for Energy Security and Net Zero, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie):
An error has been identified in my speech on the Energy Bill. The correct information is as follows:
Andrew Bowie
The United Kingdom already has a great story to tell on reducing our carbon emissions. We have reduced our emissions faster than any other G7 nation. We were the first European nation to legislate for net zero. We have the first oil and gas basin dedicated to going net zero and the first, second, third and fourth-largest offshore wind farms in the world operating and generating power off the coast of Great Britain right now. We have eliminated our reliance on coal. We have grown to more than 40% of energy being generated by renewables. We have announced further investment in carbon capture, usage and storage, and we are pressing ahead with Great British Nuclear, which I launched two months ago with an exciting programme for small modular reactors. We are on track to deliver 24 GW of nuclear power on the grid by 2050.
Energy Bill [Lords]
Andrew Bowie ExcerptsTuesday 5th September 2023
(2 years, 9 months 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: Consideration of Bill Amendments as at 5 September 2023 - (5 Sep 2023)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I beg to move, That the clause be read a Second time.
Mr Speaker
With this it will be convenient to discuss the following:
Government new clause 63—Renewable liquid heating fuel obligations.
Government new clause 64—Regulations under section 92(1): procedure with devolved authorities.
Government new clause 65—Regulations made by Secretary of State: consultation with devolved authorities.
Government new clause 66—Regulations under section 292 and 293: procedure with devolved authorities.
New clause 1—Community benefits relating to onshore wind farms—
“(1) Within six months of the date on which this Act is passed, the Secretary of State must prepare and lay before Parliament a report setting out proposals for ensuring that local communities benefit from onshore wind farms.
(2) The report under subsection (1) must set out, but is not limited to, proposals for—
(a) 5% of the gross revenue of new wind farm, solar, hydro and other renewable developments generating over 1MW to be paid into community benefit funds;
(b) widening the distance of communities around new renewable developments which receive shares of community benefit funds, with the aim of limiting the wealth disparity amongst rural communities; and
(c) ensuring that communities surrounding wind farms have a statutory right to benefit from local renewable energy development.”
New clause 2—Prohibition of new coal mines—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must by regulations prohibit the opening of new coal mines and the licensing of new coal mines by the Coal Authority or its successors.
(2) Regulations under this section are subject to the affirmative procedure.”
New clause 3—Prohibition of energy production from coal—
“(1) The Secretary of State must by regulations provide for the UK to cease energy production from coal from 1 January 2025.
(2) Regulations under this section may amend primary legislation (including this Act).”
New clause 4—Flaring and venting—
“(1) The Energy Act 1976 is amended as follows.
(2) In section 12, after subsection (5), insert—
“(6) The Secretary of State may not grant consent under this section after 1 January 2025; and any consent granted under this section ceases to have effect from 1 January 2025.
(7) Paragraph (3)(a) of this section ceases to have effect from 1 January 2025.”
(3) In section 12A, after subsection (5), insert—
“(6) The OGA may not grant consent under this section after 1 January 2025; and any consent granted under this section ceases to have effect from 1 January 2025.””
This new clause is intended to ban flaring and venting of natural gas after 1 January 2025.
New clause 5—Date of cessation of issuing of oil and gas exploration and production licences—
“(1) Within three months of the day on which this Act is passed, the Secretary of State must establish an independent body to advise on the date after which no new licences for oil and gas exploration and production should be issued.
(2) The body must make its recommendation to the Secretary of State not later than three months after the day on which it is established.
(3) Not less than three months after the date on which the Secretary of State receives the body’s recommendation, the Secretary of State must present to Parliament legislative proposals to give effect to the recommendation.”
New clause 6—Net zero power supply—
“(1) It is the duty of the Secretary of State to ensure that the aggregate amount of net emissions of carbon dioxide and net emissions of each of the other targeted greenhouse gases associated with the supply of power in the UK in 2035 is zero.
(2) The Secretary of State must by regulations provide for the means of calculation of net emissions of carbon dioxide and of each of the other targeted greenhouse gases for the purposes of subsection (1).
(3) The means of calculation provided for in regulations under subsection (2) must be consistent with the means of calculation of the net UK carbon account for the purposes of section 1 of the Climate Change Act 2008.
(4) For the purposes of this section a “targeted greenhouse gas” has the same meaning as given in section 24 of the Climate Change Act 2008.”
This new clause is intended to provide for the UK’s power supply to be net zero by 2035.
New clause 7—Energy Charter Treaty—
“Within six months of the day on which this Act is passed, the Secretary of State must initiate procedures for the United Kingdom to withdraw from the Energy Charter Treaty.”
New clause 8—Community and Smaller-scale Electricity Export Guarantee Scheme—
“(1) Within six months of the passing of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to purchase electricity exports from sites including those operated by community groups, that generate low carbon electricity with a capacity below 5MW.
(2) Fossil fuelled local power plants with a capacity of less than 5MW are not eligible for participation in the Community and Smaller-scale Electricity Export Guarantee Scheme, with the exception of a local combined heat and power plant that generates electricity ancillary to its purpose of providing heat for local heat networks.
(3) “Fossil fuel” has the meaning given in section 104(4).
(4) Licensed energy suppliers with fewer than 150,000 customers may also purchase electricity exports from the sites defined above provided that they do so on the terms set out by the regulations.
(5) The regulations must require that eligible licensed suppliers—
(a) offer to those sites a minimum export price set annually by the Gas and Electricity Markets Authority (“GEMA”),
(b) offer to those sites a minimum contract period of five years, and
(c) allow the exporting site to end the contract after no more than one year.
(6) Within six months of the passing of this Act, GEMA must—
(a) set an annual minimum export price for those sites that has regard to current wholesale energy prices and inflation in energy prices and the wider economy,
(b) introduce a registration system for exporting sites meeting the requirements set out in subsection (1) and wanting to access these export purchases,
(c) define specifications for the smart export meters required by such sites,
(d) define “low carbon electricity” in such a way that it includes renewable generation technology and may include other technology with extremely low carbon dioxide emissions,
(e) define requirements for an exporting site generating low carbon electricity with a capacity of less than 5MW to be registered as a Community or Smaller-scale Energy site, and maintain a register of such sites.
(7) To access the export purchase agreements defined in this section exporters must—
(a) register their site with GEMA,
(b) install a smart export meter that meets specifications defined by GEMA, and
(c) notify GEMA if their ownership structure meets the definition of a Community or Smaller-scale Energy site.
(8) All licensed suppliers providing such purchase agreements must report annually to GEMA—
(a) the number and capacity of Community or Smaller-scale Energy sites that have been offered contracts to purchase electricity and the number of these that agreed those contracts,
(b) the total amount of electricity purchased under these agreements, and
(c) the price paid for that electricity.
(9) OFGEM must make and publish a report annually on the operation of the export purchase agreements, setting out—
(a) the number of Community or Smaller-scale Energy sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,
(b) the licensed suppliers contracting with Community or Smaller-scale Energy sites and the amount of electricity each has purchased,
(c) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and
(d) recommendations on how the mechanism could be improved.
(10) Regulations under this section are subject to the affirmative procedure.”
New clause 9—Community and Smaller-scale Electricity Supplier Services Scheme—
“(1) Within six months of the passing of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to offer a Community and Smaller-scale Electricity Supplier Service agreement to any registered Community or Smaller-scale Energy site under section (Community and Smaller-scale Electricity Export Guarantee Scheme) for the purposes of allowing that site to sell electricity to local consumers.
(2) The Community and Smaller-scale Electricity Supplier Service agreement will require licensed suppliers to make a community or smaller-scale energy tariff available to consumers local to the exporting site that has regard to the export price paid or that would be paid to that site under section (Community and Smaller-scale Electricity Export Guarantee Scheme).
(3) The eligible licensed supplier may limit the total number of consumers the community or smaller-scale energy tariff is available to such that the total annual energy sold under the tariff is broadly equivalent to the total annual energy generated by the site.
(4) The eligible licensed supplier will be the registrant for the meters of any local consumer purchasing energy under the community or smaller-scale energy tariff.
(5) The eligible licensed supplier may charge a reasonable fee for the provision of services under this section provided that it has regard to distribution, licensing and regulatory costs and any guidance provided by GEMA.
(6) The eligible licensed supplier must return any money raised through the sale of energy under a tariff set up under this section to the Community or Smaller-scale Energy site, save for the fee allowed under subsection (5).
(7) Eligible licensed suppliers must report annually to GEMA on—
(a) the number and capacity of community energy groups or smaller-scale sites offered Community and Smaller-scale Electricity Supplier Service agreements and the number who have contracted to use them,
(b) the total amount of electricity purchased under these agreements, and
(c) the tariffs for each agreement.
(8) GEMA must—
(a) produce guidance on the level of community or smaller-scale energy tariffs and on the reasonable charges that eligible suppliers may charge for Community and Smaller-scale Electricity Supplier Service Agreements,
(b) make and publish a report annually on the operation of the export purchase agreements, setting out—
(i) the number of community energy projects or smaller-scale sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,
(ii) the licensed suppliers contracting with community energy groups or smaller-scale sites and the amount of electricity each has purchased,
(iii) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and
(iv) recommendations for how Community and Smaller-scale Electricity Supplier Service agreements could be improved.
(9) Regulations under this section are subject to the affirmative procedure.”
New clause 11—Enhancing rewards for solar panels—
“Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a report on enhancing the reward under the Smart Export Guarantee for customers who install solar panels.”
This new clause seeks to enhance the reward under the Smart Export Guarantee for energy customers who install solar panels.
New clause 12—Prohibition on flaring and venting and enhanced measures to reduce fugitive methane emissions—
“(1) The Secretary of State must by regulations—
(a) prohibit the practice of flaring and venting by oil and gas installations other than in an emergency within the jurisdiction of the United Kingdom,
(b) require monthly leak detection and repair inspections to reduce fugitive methane emissions,
(c) require a measurement, reporting and verification process to quantify methane emissions, and
(d) require the upgrade of all equipment to alternative zero- or low-emission and low-maintenance equipment, such as electric, mechanical, or compressed air equipment.
(2) In this section—
“flaring” means the burning of methane gas and other hydrocarbons produced during oil and gas extraction;
“venting” means the release of methane gas and other hydrocarbons directly into the atmosphere, without combustion.
(3) Regulations under this section must be made so as to come into force by 31 December 2025.”
This new clause would prohibit “flaring” and “venting”.
New clause 13—Introduction of a social tariff for vulnerable energy customers—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to bring forward a social tariff for vulnerable energy customers.
(2) The plan under subsection (1) must set out ways in which the social tariff for energy would satisfy the following conditions—
(a) it is additional to the Warm Home Discount and Default tariff price Cap,
(b) it is mandatory for all licensed electricity and gas suppliers,
(c) it is targeted at households that are in or at risk of fuel poverty,
(d) it is set at a level that is below the market price, and
(e) it automatically enrols eligible households onto the tariff.”
This new clause will require the Secretary of State to bring forward a plan to introduce a social tariff for energy.
New clause 14—Smart meter roll-out for prepayment customers—
“(1) The Secretary of State must ensure that all legacy prepayment meters are replaced with smart meters before the end of 2025.
(2) Within three months of the day on which this Act is passed, the Secretary of State must prepare a plan to end self-disconnections by the end of 2026.
(3) Such a plan may include but is not limited to—
(a) the introduction of a social tariff for prepayment customers,
(b) the introduction of mechanisms to apply credit automatically if a prepayment customer runs out of credit,
(c) the introduction of a mechanism to transfer a prepayment customer to credit mode automatically if they run out of credit.”
This new clause places duties on the Secretary of State to ensure prepayment metered customers are prioritised in the smart meter rollout, and to create a plan to stop self-disconnections before the end of 2026.
New clause 15—Restriction of the use of prepayment meters—
“(1) Within 90 days of the day on which this Act is passed the Secretary of State must make regulations prohibiting energy suppliers from authorising or undertaking the installation of new prepayment meters for domestic energy use unless the condition in subsection (2) is met.
(2) The condition is that the energy supplier has received an explicit request from the consumer for the installation of a prepayment meter.
(3) In this section “installation of new prepayment meters” includes switching existing energy meters to a prepayment mode.
(4) The Secretary of State may make subsequent regulations that amend or repeal regulations made under this section.
(5) Regulations under this section are subject to the affirmative procedure.”
This new clause would require the Secretary of State to prohibit the installation of new prepayment meters unless consumers explicitly request them.
New clause 16—National Warmer Homes and Businesses Action Plan—
“(1) The Secretary of State must, before the end of the period of 6 months beginning with the day on which this Act is passed, publish an action plan entitled the Warmer Homes and Businesses Action Plan, to set out proposals for delivery of—
(a) a low-carbon heat target, of 100% of installations of relevant heating appliances and connections to relevant heat networks by 2035,
(b) an Energy Performance Certificate at band C by 2035 in all UK homes where practical, cost effective and affordable, and
(c) an Energy Performance Certificate at band B by 2028 in all non-domestic properties, and
(d) the Future Homes Standard for all new builds in England by 2025.
(2) The Secretary of State must, in developing the Warmer Homes and Businesses Action Plan, consult the Climate Change Committee and its sub-committee on adaptation.”
This new clause imposes a duty on the Secretary of State to bring forward a plan with time-bound proposals for low carbon heat, energy efficient homes and non-domestic properties and higher standards on new homes.
New clause 17—Plan for vulnerable consumers—
“(1) Within three months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan addressing the needs of vulnerable consumers and consumers from low-income households in relation to the cost of energy.
(2) The plan under subsection (1) may include, but is not limited to—
(a) the extension of the energy price cap on heating oil,
(b) the extension of the warm homes discount,
(c) the increase of winter fuel payments,
(d) preventing electricity suppliers from recovering the costs of paying a revenue collection counterparty under the Nuclear Energy (Financing) Act 2022 from customers claiming Universal Credit or other legacy benefits,
(e) requirements for energy suppliers to offer social energy tariffs to households experiencing fuel poverty, and
(f) any other measures the Secretary of State believes are appropriate.”
This new clause would require the Secretary of State to develop a plan to protect vulnerable customers from the rising cost of energy.
New clause 18—Energy performance regulations relating to existing premises—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations—
(a) to amend the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (S.I. 2015/962) to require that, subject to subsection (2), all tenancies have an Energy Performance Certificate (EPC) of at least Band C by 31 December 2028; and
(b) to amend the Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2019 (S.I. 2019/595) to raise the cost cap to £10,000.
(2) Regulations under subsection (1) must provide for exemptions to apply where—
(a) the occupier of any premises whose permission is needed to carry out works refuses to give such permission;
(b) it is not technically feasible to improve the energy performance of the premises to the level of EPC Band C; or
(c) another exemption specified in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 has been registered in the Private Rented Sector (PRS) Exemptions Register.
(3) Within six months of the passage of this Act the Secretary of State must make regulations—
(a) to amend the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 to enable local authorities to give notice to landlords that they wish to inspect a property in relation to those Regulations, requesting permissions from landlords and any tenants in situ at the time to carry out an inspection at an agreed time;
(b) to expand the scope of the current PRS Exemptions Register and redesign it as a database covering properties’ compliance with or exemptions from EPCs;
(c) to require a post-improvement EPC to be undertaken to demonstrate compliance;
(d) to require a valid EPC be in place at all times while a property is let; and
(e) to raise the maximum total of financial penalties to be imposed by a local authority on a landlord of a domestic private rented sector property in relation to the same breach and for the same property to £30,000 per property and per breach of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
(4) The Secretary of State may make regulations—
(a) to enable tenants in the private rented sector to request that energy performance improvements are carried out where a property is in breach of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015; and
(b) to make provision for a compensation mechanism where a tenant is paying higher energy bills as a result of a property not meeting the required standard.
(5) Regulations under this section are subject to the affirmative procedure.”
This new clause seeks to improve the energy efficiency of private rental properties for tenants and gives powers to local authorities to conduct assessments of the energy efficiency of private rental properties and increase financial penalties for breaches of energy efficiency standards.
New clause 19—Decarbonisation of capacity market—
“Within six months of the day on which this Act is passed the Secretary of State must introduce measures to reduce the carbon intensity of power supplied by the capacity market by prioritising—
(a) demand side management,
(b) the supply of renewable energy, and
(c) electricity storage and other non-carbon-based energy storage systems.”
This new clause is a probing amendment to explore the potential of decarbonising the capacity market.
New clause 20—Onshore wind and solar power—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to significantly increase the proportion of the energy supply generated by onshore wind power in the United Kingdom.
(2) The plan under subsection (1) must set out measures which may include but are not limited to—
(a) revising national planning guidance on onshore wind and solar to increase the number of onshore wind and solar installations,
(b) improving infrastructure to ensure access to grid connections for existing onshore wind and solar installations, and
(c) increasing access to grants or subsidies to encourage new onshore wind and solar installations.
(3) The Secretary of State must report annually to Parliament to provide an update on the progress in increasing onshore wind and solar power.”
This new clause would require the Secretary of State to prepare a plan to significantly increase the proportion of the UK energy supply generated by onshore wind and solar power.
New clause 21—Value added tax on energy-saving materials—
“In Schedule 8, Part II, Group 23, note 1 of the Value Added Tax Act 1994 (meaning of “energy-saving materials”), at the end insert—
“(1) batteries used solely for the purpose of storing electricity generated by solar panels.””
This new clause includes batteries used solely to store energy generated by solar panels in the list of energy saving materials subject to a zero VAT rate.
New clause 22—Increasing grid capacity—
“Within three months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to—
(a) reduce access costs and time frames for grid connections,
(b) reform the energy network to permit local energy grids, and
(c) accelerate the development of an offshore wind energy grid in the North Sea.”
This new clause seeks to require the Secretary of State to produce a plan to increase grid capacity.
New clause 23—Impact of insulation in homes on energy bills—
“The Secretary of State must, within six months of the day on which this Act is passed, prepare and lay before Parliament a report setting out—
(a) an assessment of the average cost of energy bills if homes were properly insulated, and
(b) the impact of improving all homes to the highest possible Energy Performance Contract rating on energy bills and greenhouse gas emissions.”
This new clause requires the Secretary of State to carry out an assessment of the average cost of energy bills if homes were insulated (a) properly and (b) to the highest possible Energy Performance Contract rating.
New clause 24—Government support for community energy—
“(1) Within three months of the passage of this Act, the Secretary of State must publish and lay before Parliament a report setting out the financial, policy and other support that the Secretary of State plans to make available to widen the ownership of low carbon and renewable energy schemes and increase the number of such schemes owned, or part owned, by community organisations.
(2) The report must set out—
(a) all policies, programmes or other initiatives with which the Secretary of State plans to support the development and construction of new low carbon community energy schemes;
(b) the level of financial support which will be made available for—
(i) the Rural Community Energy Fund,
(ii) the Urban Renewable Energy Fund, and
(iii) any other fund or support package designed to support the development of new low carbon community energy schemes;
(c) all policies, programmes or other initiatives the Secretary of State intends will increase community ownership of local low carbon energy schemes through shared ownership schemes;
(d) the steps the Secretary of State is taking to develop new market rules to make it easier for low carbon community energy schemes to sell the energy they generate;
(e) the number and the capacity of the new community energy schemes the Secretary of State expects to be constructed as a result of the measures set out in the report.
(3) Not less than twelve months after the publication of the report, and not later than the end of each subsequent period of twelve months, ending five years after the publication of the report, the Secretary of State must lay before Parliament and publish an assessment of the progress made by the policies, programmes and other initiatives set out in the report.
(4) The assessment must set out—
(a) the total amount of financial support provided by the policies in the report;
(b) the number and capacity of low carbon community energy schemes —
(i) completed, and
(ii) in development;
(c) the number and capacity of new shared ownership schemes;
(d) any changes the Secretary of State proposes to make to the policies, programmes and other initiatives included in the original report.”
This new clause would require the Government to report annually for 5 years on the support it is providing to Community Energy schemes and the number and capacity of such schemes that are delivered.
New clause 25—Investment protection agreements and climate change targets—
“Within six months of the day on which this Act is passed, the Secretary of State must—
(a) initiate procedures for the United Kingdom to withdraw from the Energy Charter Treaty;
(b) lay before Parliament a report setting out—
(i) the list of investment protection agreements to which the UK is a party which offer protections to the energy sector, and
(ii) an assessment of the risks they pose to the Secretary of State fulfilling duties in this Act with regard to the achievement of targets set by the Climate Change Act 2008.”
New clause 26—Prohibition on setting domestic energy prices according to region—
“Within six months of the day on which this Act is passed, the Secretary of State must by regulations prohibit energy companies from setting prices for domestic energy supply according to geographical region.”
This new clause would require the Government to bring forward legislation to end the regional pricing of domestic energy bills.
New clause 27—Report on extending price cap for off grid fuels—
“Within three months of the day on which this Act is passed, the Secretary of State must publish and lay before Parliament a report setting out the consequences of extending the price cap for off grid fuels.”
This new clause would require the Secretary of State to publish a report on extending the price cap for off grid fuels.
New clause 28—Prohibition on hydraulic fracturing—
“(1) Associated hydraulic fracturing is prohibited.
(2) “Associated hydraulic fracturing” has the meaning given by section 4B of the Petroleum Act 1998.
(3) The Secretary of State may by regulations make consequential provision in connection with this section.”
This new clause would introduce a permanent ban on fracking.
New clause 29—Prohibition of new oil and gas field developments and issuing of exploration and production licences—
“Within six months of the day on which this Act is passed, the Secretary of State must by regulations prohibit—
(a) the approval of new oil and gas field developments, and
(b) the release of new oil and gas exploration and production licences.”
This new clause would prohibit the approval of new oil and gas field developments and the issuing of new oil and gas exploration and production licenses.
New clause 30—Duty to phase down UK petroleum—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations to amend section 9A of the Petroleum Act 1998.
(2) Regulations under subsection (1) must—
(a) remove the “principal objective” of maximising the economic recovery of UK petroleum;
(b) define a new “principal objective”.
(3) The new “principal objective” referred to in paragraph (2)(b) must provide for—
(a) delivery of a managed and orderly phase down of UK petroleum;
(b) advancement of the UK’s climate change commitments, including—
(i) the target for 2050 set out in section 1 of the Climate Change Act 2008, and
(ii) the commitment given by the Government of the United Kingdom in the Glasgow Climate Pact to pursue policies to limit global warming to 1.5 degrees Celsius;
(c) facilitation of a just transition for oil and gas workers and communities.
(4) Before making regulations under subsection (1) the Secretary of State must hold a public consultation which must include consultation with—
(a) the devolved administrations,
(b) relevant trade union and worker representatives,
(c) oil and gas workers and communities,
(d) relevant representatives from academia,
(e) relevant climate and environmental organisations and representatives,
(f) relevant industry representatives of petroleum and renewable energy businesses supporting the transition away from fossil fuels, and
(g) offshore energy training bodies.
(5) Relevant climate and environmental organisations and representatives under subsection (4(e)) must include the Climate Change Committee.”
This new clause would amend the Petroleum Act 1998 to remove the principal objective of maximising the economic recovery of UK petroleum and replace it with a new principal objective to deliver a managed and orderly phase down of UK petroleum, advance the UK’s climate targets, and support a just transition for oil and gas workers.
New clause 31—Requiring installation of solar panels on all new homes—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must by regulations require—
(a) the installation of solar panels on the roofs of all new homes; and
(b) that new housing developments are planned in order to maximise solar gain.
(2) Regulations under subsection (1) may provide for exemptions in cases where the installation of solar panels on the roof of a new home is not appropriate.”
This new clause would mandate the installation of solar panels on the roofs of all new homes and require new housing developments to be planned in order to maximise solar gain.
New clause 32—Capacity market—
“(1) The Secretary of State must exercise the power in section 27 of the Energy Act 2013 to ensure that the capacity adequacy procured through the capacity market has a rising share of zero carbon flexible and dispatchable power that is consistent with achieving a zero carbon power system by 2035.
(2) The Secretary of State must ensure that all new multi-year capacity market contracts awarded to unabated fossil fuel capacity market units should have a contract end date no later than 31 December 2034.
(3) In exercising functions under this section, the Secretary of State must have regard to the desirability of maintaining security of supply.
(4) Draft regulations under subsection (1) must be laid before Parliament within six months of the day on which this Act is passed.”
This new clause probes the potential of decarbonising the capacity market.
New clause 33—Energy Demand Reduction Delivery Plan—
“(1) The Secretary of State must, within 12 months of the day on which this Act is passed, prepare and publish an Energy Demand Reduction Delivery Plan.
(2) In preparing the Energy Demand Reduction Delivery Plan under subsection (1), the Secretary of State must consult the Climate Change Committee.
(3) The Energy Demand Reduction Delivery Plan under subsection (1) must include but is not limited to—
(a) a quantitative assessment on the role of energy demand reduction in meeting the United Kingdom's carbon budgets and the 2050 net zero target;
(b) energy demand reduction targets for—
(i) aviation
(ii) surface transport,
(iii) shipping,
(iv) manufacturing and construction,
(v) buildings, and
(vi) agriculture,
in line with the UK’s carbon budgets and the 2050 net zero target; and
(4) an assessment of the role in achieving those targets of—
(a) energy efficiency improvements and technologies, and
(b) avoiding unnecessary energy use through infrastructure and behaviour change
(5) The Climate Change Committee must evaluate, monitor and report annually on the implementation of the Energy Demand Reduction Delivery Plan.”
This new clause would introduce a requirement to produce an Energy Demand Reduction Delivery Plan quantifying sectoral energy demand reduction targets and assessing how these can be achieved, and to review progress towards achieving them.
New clause 34—Production of sustainable aviation fuel—
“(1) The Secretary of State may by regulations introduce a price stability mechanism to incentivise the production of sustainable aviation fuel in the United Kingdom.
(2) A draft of regulations made under subsection (1) must be laid before Parliament within twelve months of the passage of this Act.
(3) A Minister must make a motion in each House of Parliament to approve the regulations laid before Parliament under subsection (2) within fifteen sitting days of the date on which they were laid.
(4) If both Houses of Parliament approve the regulations, they must be made in the form in which they were laid before Parliament.
(5) If either House of Parliament does not approve the regulations, the Secretary of State must lay a revised draft of the regulations before Parliament, and subsections (3) to (5) of this section apply to those regulations as they do to regulations laid under subsection (2).
(6) For the purposes of this section—
“price stability mechanism” is a mechanism under which a producer may enter into a private law contract with a Government-backed counterparty for the purposes of receiving a guaranteed price for a product or service;
“sitting day” is—
(a) in the case of the House of Commons, a day on which the House of Commons sits;
(b) in the case of the House of Lords, a day on which the House of Lords sits.”
New clause 35—Energy decarbonisation for homes: local authority funding—
“(1) The Secretary of State must, within six months of the date on which this Act is passed, carry out and publish an assessment of the benefits of providing long-term predictable funding to local authorities for the purpose of energy decarbonisation for homes in their local authority area.
(2) The assessment under subsection (1) must include an assessment of the likely impact of decarbonisation funding on—
(a) energy demand,
(b) fuel poverty, and
(c) installations of low-carbon heating systems.”
New clause 36—Introduction of a National Energy Guarantee—
“(1) Within six months of the date on which this Act is passed, the Secretary of State must prepare and lay before Parliament a plan to replace the existing energy price guarantee with a National Energy Guarantee in the form of a rising block tariff including a free or low-cost energy allowance to cover essential needs.
(2) When preparing the plan under subsection (1) the Secretary of State must consult independent bodies working on fuel poverty before determining the pricing of the allowance and the threshold above which the higher tariff should apply.
(3) Once the plan under subsection (1) has been laid before Parliament, the Secretary of State may by notice in writing require the regulator to introduce a rising block tariff, provided it satisfies the following conditions—
(a) that an allocation of energy set at no less than 50% of a defined minimum essential level is provided free of charge to all households;
(b) that the tariff incentivises energy-saving measures, particularly among higher income households;
(c) that households not connected to a mains gas supply will be given an increased electricity allowance, such that they are not disadvantaged;
(d) that the tariff is accompanied by additional allowances for disabled people and others who require high levels of energy usage to fulfil their essential needs; and
(e) that the tariff does not undermine the ability of energy suppliers to offer innovative tariffs through higher energy bands.”
This new clause would introduce a National Energy Guarantee in the form of a rising block tariff: an allowance for low-cost energy to cover essential needs, with a premium tariff to incentivise energy saving measures in households with high energy use, and additional allowances for those with unavoidably high energy needs.
New clause 37—Industrial lithium-ion battery storage facilities—
“(1) Within 12 months of the date on which this Act is passed, the Secretary of State must make regulations about the building of industrial lithium-ion battery storage facilities.
(2) Regulations under subsection (1) must include—
(a) a requirement for a relevant environmental permit to be issued by the Environment Agency, and
(b) a requirement for the relevant fire authority to be a statutory consultee in all planning applications for such facilities.”
This new clause would require the Secretary of State to make regulations for the building of industrial lithium-ion storage facilities which must include requiring an Environmental Permit from the Environment Agency and for the Fire Authority to be a statutory consultee in planning applications.
New clause 39—Duties of the Gas and Electricity Markets Authority in respect of off-grid fuels—
“(1) Within three months of the passage of this Act, the Secretary of State must by regulation extend the duties of the Gas and Electricity Markets Authority to the distribution and supply of fuels utilised for off-grid home heating.
(2) Regulations under subsection (1) must provide for GEMA to apply a cap on the price of fuel supplied for off-grid home heating proportionate to the cap applied in respect of on-grid homes.”
This new clause seeks to extend the duty of Ofgem to regulate off-grid fuels utilised for off-grid home heating and to ensure that a cap is applied for off-grid home fuels that is proportionate to the cap applied for on-grid homes.
New clause 40—Renewable liquid fuels for low-carbon heating—
“Within six months of the passage of this Act, the Secretary of State must by regulation introduce a Renewable Liquid Heating Fuel Obligation, setting annual obligations on fuel suppliers to ensure the supply of recognised low-carbon renewable liquid fuels for domestic and commercial heating.”
This new clause would require the Government to introduce a Renewable Liquid Heating Fuel Obligation for home and commercial building heating purposes, which would create a scheme that mirrors the Renewable Transport Fuel Obligations Order 2007. This would offer the option to off-gas-grid properties to switch to renewable liquid fuels.
New clause 41—Duty to ensure the lowest possible cost of energy to businesses and households—
“In exercising any function under or in connection with this Act, it is the duty of the Secretary of State to ensure the lowest possible cost of energy to businesses and households.”
This new clause is designed to be placed as Clause 1 of the Bill and would give the Secretary of State the duty to exercise functions under the Act which will result from the Bill in a way which would ensure the lowest possible costs of energy to businesses and households.
New clause 42—Restriction on energy company obligations—
“(1) In section 33BC of the Gas Act 1986 (promotion of reductions in carbon emissions: gas transporters and gas suppliers), after subsection (1) insert—
“(1ZA)) An order under subsection (1) may not impose an obligation on a gas transporter or gas supplier with fewer than 1,000 employees.”
(2) In section 33BD of the Gas Act 1986 (promotion of reductions in home-heating costs: gas transporters and gas suppliers), after subsection (1) insert—
“(1A)) An order under subsection (1) may not impose an obligation on a gas transporter or gas supplier with fewer than 1,000 employees.”
(3) In section 41A of the Electricity Act 1989 (promotion of reductions in carbon emissions: electricity distributors and electricity suppliers), after subsection (1) insert—
“(1ZA)) An order under subsection (1) may not impose an obligation on an electricity distributor or electricity supplier with fewer than 1,000 employees.”
(4) In section 41B of the Electricity Act 1989 (promotion of reductions in home-heating costs: electricity distributors and electricity suppliers), after subsection (1) insert—
“(1A)) An order under subsection (1) may not impose an obligation on an electricity distributor or electricity supplier with fewer than 1,000 employees.””
This new clause would restrict the Energy Company Obligation, which places an obligation on energy suppliers to install energy efficiency and heating measures, to large companies (those with over 1000 employees).
New clause 43—Planning applications for onshore wind energy developments—
“(1) Within three months of the date on which the Act is passed, the Secretary of State must—
(a) remove from the National Planning Policy Framework the restrictions placed by footnote 54 on the circumstances in which proposed wind energy developments involving one or more turbines should be considered acceptable, and
(b) publish guidance for wind developers on how they can engage communities, demonstrate local consent to local planning authorities, and provide financial benefits to local residents.
(2) Section 78 of the Town and Country Planning Act 1990 is amended by the insertion, after subsection (3), of the following new subsection—
“(3A) An appeal under this section may not be brought or continued against the refusal of an application for planning permission if the development is for the purposes of installing new onshore wind sites not previously used for generating wind energy.””
This new clause aims to remove the current planning restriction that a single objection to an onshore wind development is sufficient to block the development, to ensure that local communities willing to take onshore wind developments will receive some community benefit, and to provide that local decisions made on onshore wind cannot be overturned on appeal.
New clause 44—Independent review of the generation of bioenergy with carbon capture and storage—
“(1) The Secretary of State must commission an independent review of the generation of bioenergy with carbon capture and storage (BECCS).
(2) The review must report on the potential impact of BECCS on—
(a) household energy bills,
(b) lifecycle carbon emissions in the generation of energy,
(c) biodiversity,
(d) land use, and
(e) any other matter the Secretary of State considers appropriate.
(3) The Secretary of State must lay before Parliament—
(a) the report of the review, and
(b) the Government’s response to the review.
(4) No subsidy may be given for BECCS until the report of the review and the Government’s response have been laid before Parliament in accordance with subsection (3).
(5) Subsection (4) does not apply if an agreement for the giving of subsidy was concluded before the passage of this Act.
(6) For the purposes of this section—
“bioenergy” means energy from biomass;
“biomass” has the meaning given by paragraph 3 of the Renewables Obligation Order 2015 (SI 2015/1947);
“subsidy” has the meaning given by section 2 of the Subsidy Control Act 2022.”
This new clause would prohibit new government subsidies for generating bioenergy with carbon capture and storage (BECCS) until the Secretary of State commissions and publishes an independent review of BECCS to establish its impact on household energy bills, lifecycle carbon emissions, biodiversity and land use, and the Government’s response.
New clause 45—Modelling of the UK’s energy needs—
“(1) The Secretary of State must commission—
(a) a report on the most energy efficient, most economic and least carbon-intensive means to fulfil the UK’s current energy needs, and
(b) a report on comprehensive future energy modelling for the UK on the most energy efficient, most economic and least carbon-intensive means to meet the UK’s future energy needs.
(2) The Secretary of State must lay before Parliament the reports required under subsection (1) within six months of the day on which this section comes into force.”
This new clause would require the Secretary of State to commission and publish reports on the most energy efficient, most economic and least carbon-intensive means of satisfying the UK’s energy needs.
New clause 46—Review of Contract for Difference strike prices—
“(1) Within three months of the passage of this Act, the Secretary of State must undertake a review of Contract for Difference strike prices, and make a report to Parliament on the review.
(2) The review must—
(a) include an assessment of the viability of existing projects that have already been allocated,
(b) include an assessment of the UK-based supply chain for each project awarded Contracts for Difference, and
(c) re-evaluate the parameters for—
(i) the allocation for round five of Contracts for Difference funding, and
(ii) future allocation rounds.”
This new clause requires the Secretary of State to assess the viability of projects that have been awarded Contracts for Difference, and to undertake a review of the existing parameters for Contracts for Difference allocation.
New clause 47—Nationally significant infrastructure projects and forced labour—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must by regulations provide that existing and new applicants for nationally significant infrastructure projects (within the meaning given by sections 14 and 15 of the Planning Act 2008) of over 50mw must demonstrate that their goods were not manufactured in, or produced with materials using forced labour.
(2) Regulations under subsection (1) must require all existing and new NSIP energy applicants to submit a report to the Planning Inspectorate to demonstrate clear and convincing evidence that the goods, or materials in the goods, were not mined, produced, or manufactured wholly or in part by forced labour.
(3) Within six months of the day on which this Act is passed the Foreign, Commonwealth and Development Office must create and publish a guide on interpreting reports for the Planning Inspectorate to consult when determining whether goods, or materials in the goods, were mined, produced, or manufactured wholly or in part by forced labour.
(4) Regulations under subsection (1) must provide that any nationally significant infrastructure project of over 50mw unable to demonstrate beyond reasonable doubt that its goods, or materials in the goods, were not mined, produced, or manufactured wholly or in part by forced labour must be recommended for rejection by the Planning Inspectorate upon the submission of the Inspection to the Secretary of State for Energy Security and Net Zero.
(5) Regulations under subsection (1) must provide for any company found to be circumnavigating the requirements of the regulations through third parties, subcontractors or third countries to be permanently barred from operating in the United Kingdom.”
This new clause will require the developers of new NSIP energy projects to demonstrate that their projects do not use, benefit from, or contribute to the forced labour.
New clause 48—Development of solar energy plants on agricultural land—
“(1) The Secretary of State must by regulations prevent the development of solar energy projects on sites of over 500 acres where over 20% of the land is Best and Most Versatile agricultural land.
(2) For the purposes of this section “Best and Most Versatile agricultural land” means land classed as grade 1, grade 2 or subgrade 3a under the agricultural land classification published by Natural England.
(3) Regulations under subsection (1) must—
(a) include provision for the prevention of the development of solar energy projects for which permission has already been sought, but not granted, and
(b) apply both to applications determined by local planning authorities and to those determined by the Planning Inspectorate.
(4) Regulations under subsection (1) may amend primary legislation.
(5) Within six months of the day on which this Act is passed, the Secretary of State must publish plans and incentives for the development of solar energy on rooftops, commercial and residential sites, and brownfield sites composed of ungraded land.”
This new clause would end the development of large-scale solar plants on BMV land and require the Secretary of State to publish plans to incentivise the building of solar on rooftops and brownfield sites.
New clause 49—Electricity Storage Capacity—
“(1) Within six months of the day on which this Act is passed the Secretary of State must lay before Parliament a strategy for an increase in the provision of electricity storage facilities to enhance the resilience and flexibility of electricity supply and ensure fair pricing for electricity users.
(2) The strategy referred to in subsection (1) must cover all forms of electricity storage, including—
(a) battery,
(b) hydrogen,
(c) ammonia,
(d) adiabatic compressed air energy storage systems, and
(e) hydroelectric storage.
(3) The strategy referred to in subsection (1) must address considerations relating to—
(a) licensing,
(b) planning,
(c) regulation,
(d) subsidy, and
(e) taxation.
(4) The strategy referred to in subsection (1) must set out—
(a) proposed pricing mechanisms for stored electricity, and
(b) provisions ensuring consumers pay a fair price for electricity.”
This new clause seeks to ensure the UK Government sets out a report to Parliament that demonstrates how it plans to meet the increased storage capacity that will be required with a future electricity network that is heavily reliant on renewable sources.
New clause 50—Renewable Liquid Heating Fuel Obligation—
“(1) Within twelve months of the date of Royal Assent to this Act, the Secretary of State must carry out a consultation on a renewable liquid heating fuel obligation.
(2) For the purposes of subsection (1) a renewable liquid heating fuel obligation means requiring fuel suppliers to meet annual targets to ensure the supply of recognised low-carbon renewable liquid fuels for domestic and commercial heating.
(3) For the purposes of the consultation under subsection (1) the Secretary of State must consult such persons as the Secretary of State considers appropriate.
(4) Within three months of the conclusion of the consultation under subsection (1) the Secretary of State must lay before Parliament a report of the consultation.
(5) Following publication of the report under subsection (4) the Secretary of State may by regulations set out a scheme requiring fuel suppliers to meet annual targets to ensure the supply of recognised low-carbon renewable liquid fuels for domestic and commercial heating.
(6) Regulations under subsection (5) may provide for—
(a) a scheme for the imposition of low-carbon renewable liquid fuel obligations on fuel suppliers;
(b) the appointment of an Administrator to run the scheme;
(c) matters in relation to the functions of the Administrator;
(d) the method by which amounts of low-carbon renewable liquid fuel are to be counted or determined for the purposes of provision made by or under the regulations;
(e) the Administrator to issue certificates to suppliers setting out the amounts of low-carbon renewable liquid fuel supplied, the time period in which they were supplied and other relevant facts;
(f) a supplier which does not wholly discharge its low-carbon renewable liquid fuel obligation for a given period to pay the Administrator a specified sum within a specified period, and further provision for connected purposes;
(g) the imposition of civil penalties, and objections to and appeals against civil penalties;
(h) the disclosure of relevant information by relevant persons; and
(i) such other provision as the Secretary of State considers appropriate.”
This new clause would require the Secretary of State to consult on a scheme for renewable liquid heating fuel obligations for home and commercial building heating purposes, and to publish a report on the consultation. The new clause would further allow the Secretary of State make regulations to set up a scheme for renewable liquid heating fuel obligations for home and commercial building heating purposes.
New clause 51—Tidal Range power—
(1) Within three months of the day on which this Act is passed, the Secretary of State must establish a Tidal Range Assessment Grant for the purposes of funding an independent evidence-led review of the potential contribution to be made by tidal range energy generation to the future energy generating capacity of the United Kingdom.
(2) The review under subsection (1) must include—
(a) pre-feasibility assessments of proposed tidal range projects and their potential both individually and together to contribute to the future energy generating capacity of the United Kingdom;
(b) whole life-cycle analysis and financial modelling to identify the optimum framework for the financing of tidal range projects as ultra-long lifecycle infrastructure assets, including an assessment of the potential merits of a Regulated Asset Base funding model for tidal range projects;
(c) a whole energy market analysis to establish and quantify the potential contribution of tidal range power to the decarbonisation of the United Kingdom’s energy system with particular reference to the value of predictable, flexible energy generation near centres of increasing demand and the potential of operational tidal range projects to bypass major grid barrier issues and enable a stable, operable, and secure decarbonised energy grid;
(d) an assessment of the current and planned innovations in sectors related to the development of operational tidal range projects, including in the broader supply chain, digital twins, power handling and distribution, and energy storage, and how these can be used to drive a reduction in cost and maximise the contribution of materials and components produced in the United Kingdom to tidal range projects;
(e) environmental baseline research and monitoring programmes of the proposed locations of selected tidal range projects for the purposes of establishing an enhanced understanding of the possible impacts on biodiversity and local ecosystems of operational tidal range projects; and
(f) whole-system analysis to evaluate other potential benefits of operational tidal range projects, such as coastal and flooding protection, the stimulation of related industries, and contributions to local economies.”
New clause 53—Community and Smaller-scale Electricity Supplier Services Scheme—
“(1) Within six months of the passage of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to offer a Community and Smaller-scale Electricity Supplier Service agreement to any Community or Smaller-scale Energy site registered under section [Community and Smaller-scale Electricity Export Guarantee Scheme (No. 2)] for the purposes of allowing that site to sell electricity to local consumers.
(2) A Community and Smaller-scale Electricity Supplier Service agreement is an agreement which requires licensed suppliers to make a community or smaller-scale energy tariff available to consumers local to the exporting site that has regard to the export price paid or that would be paid to that site under section [Community and Smaller-scale Electricity Export Guarantee Scheme (No. 2)].
(3) The eligible licensed supplier may limit the total number of consumers the community or smaller-scale energy tariff is available to such that the total annual energy under the tariff is broadly equivalent to the total annual energy generated by the site.
(4) The eligible licensed supplier is the registrant for the meters of any local consumer purchasing energy under the community or smaller-scale energy tariff.
(5) The eligible licensed supplier may charge a reasonable fee for the provision of services under this section provided that it has regard to distribution, licensing and regulatory costs and any guidance provided by GEMA.
(6) The eligible licensed supplier must return any money raised through the sale of energy under a tariff set up under this section to the Community or Smaller-scale Energy site, save for the fee allowed under subsection (5).
(7) Eligible licensed suppliers must report annually to GEMA on—
(a) the number and capacity of community energy groups or smaller-scale sites offered Community and Smaller-scale Electricity Supplier Service agreements and the number who have contracted to use them,
(b) the total amount of electricity purchased under these agreements, and
(c) the tariffs for each agreement.
(8) GEMA must—
(a) produce guidance on the level of community or smaller-scale energy tariffs and on the reasonable charges that eligible suppliers may charge for Community and Smaller-scale Electricity Supplier Service agreements,
(b) make and publish a report annually on the operation of the export purchase agreements, setting out—
(i) the number of community energy projects or smaller-scale sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,
(ii) the licensed suppliers contracting with community energy groups or smaller-scale sites and the amount of electricity each has purchased,
(iii) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and
(iv) recommendations for how Community and Smaller-scale Electricity Supplier Service agreements could be improved.
(9) Regulations under this section are subject to the affirmative procedure.”
New clause 56—Delinking of renewable and gas prices in the retail market—
“(1) Within six months of the passage of this Act the Secretary of State must publish a plan to ensure the delinking of gas and renewable and low carbon energy prices as they appear in the retail market.
(2) The plan may take into account—
(a) the establishment of a “green pool” for the direct sale of renewable and low carbon power into the retail market;
(b) the incorporation of low carbon and renewable power plants not possessing a Contract for Difference into Contract for Difference arrangements suitable for inclusion in a green power pool after it is established.”
This new clause requires the Secretary of State to produce a plan to end the linkage between renewable and low carbon energy and gas prices at retail level which results in most renewable power being priced in the retail market as if it were gas.
New clause 57—Onshore wind—
“(1) The Secretary of State must by regulations ensure that onshore wind installations are treated for the purpose of planning and development as local infrastructure and will be permitted or otherwise as if they were.
(2) Regulations under subsection (1) may amend any primary legislation passed before the passage of this Act.”
This new clause ensures that onshore wind development proposals in England and Wales are permitted to proceed on the same basis as other local infrastructure projects.
New clause 58—Community and Smaller-scale Electricity Export Guarantee Scheme (No. 2)—
“(1) Within six months of the passage of this Act, the Secretary of State must by regulations require licensed energy suppliers with more than 150,000 customers (“eligible licensed suppliers”) to purchase electricity exports from sites, including those operated by community groups, which generate low carbon electricity with a capacity below 5MW.
(2) The requirement imposed by regulations under subsection (1) is to be known as the Community and Smaller-scale Electricity Export Guarantee Scheme.
(3) Fossil fuelled local power plants with a capacity of less than 5MW are not eligible for participation in the Community and Smaller-scale Electricity Export Guarantee Scheme, with the exception of a local combined heat and power plant that generates electricity ancillary to its purpose of providing heat for local heat networks.
(4) “Fossil fuel” has the meaning given in section 104(4).
(5) Licensed energy suppliers with fewer than 150,000 customers may also purchase electricity exports from the sites specified in subsection (1) provided that they do so on the terms set out by the regulations.
(6) The regulations must require that eligible licensed suppliers—
(a) offer to the sites specified in subsection (1) a minimum export price set annually by the Gas and Electricity Markets Authority (“GEMA”),
(b) offer to those sites a minimum contract period of five years, and
(c) allow the exporting site to end the contract after no more than one year.
(7) Within six months of the passage of this Act, GEMA must—
(a) set an annual minimum export price for those sites that has regard to current wholesale energy prices and inflation in energy prices and the wider economy,
(b) introduce a registration system for exporting sites meeting the requirements set out in subsection (1) and wanting to access these export purchases,
(c) define specifications for the smart export meters required by such sites,
(d) define “low carbon electricity” in such a way that it includes renewable generation technology and may include other technology with extremely low carbon dioxide emissions,
(e) define requirements for an exporting site generating low carbon electricity with a capacity of less than 5MW to be registered as a Community or Smaller-scale Energy site, and maintain a register of such sites.
(8) Regulations under subsection (1) must provide that to access export purchase agreements exporters must—
(a) register their site with GEMA,
(b) install a smart export meter that meets specifications defined by GEMA, and
(c) notify GEMA if they are a community group.
(9) All licensed suppliers providing purchase agreements for sites specified in subsection (1) must report annually to GEMA—
(a) the number and capacity of Community or Smaller-scale Energy sites that have been offered contracts to purchase electricity and the number of such sites which agreed those contracts,
(b) the total amount of electricity purchased under those agreements, and
(c) the price paid for that electricity.
(10) OFGEM must make and publish a report annually on the operation of the export purchase agreements, setting out—
(a) the number of Community or Smaller scale Energy sites contracted with licensed energy suppliers under this section and the total amount of electricity purchased,
(b) the licensed suppliers contracting with Community or Smaller-scale Energy sites and the amount of electricity each has purchased,
(c) an assessment of how the mechanism is performing and the contribution it is making to delivering secure and low carbon electricity supplies, and
(d) recommendations on how the mechanism could be improved.
(11) Regulations under this section are subject to the affirmative procedure.”
New clause 59—Decarbonised electricity supply by 2030—
“(1) It is the duty of the Secretary of State to ensure that the supply of electricity in the UK is decarbonised by 2030.
(2) The Secretary of State must, within six months of the passage of this Act, produce and publish a plan which will set out how the duty in subsection (1) is to be achieved.”
This new clause is intended to provide for the UK’s electricity supply to be decarbonised by 2030.
New clause 60—Planning consent for new electricity pylons—
“(1) Within six months of the passage of this Act, the Secretary of State must by regulations provide for a fast-track planning process for electricity pylons along motorways and rail lines.
(2) Regulations under this section may amend primary legislation.”
New clause 61—National Warmer Homes and Businesses Action Plan (No. 2)—
“(1) The Secretary of State must, before the end of the period of 6 months beginning with the day on which this Act is passed, publish an action plan entitled the Warmer Homes and Businesses Action Plan, to set out proposals for delivery of—
(a) an Energy Performance Certificate at band C by 2035 in all UK homes where practical, cost effective and affordable, and
(b) an Energy Performance Certificate at band B by 2030 in all privately rented non-domestic properties, and
(c) the Future Homes Standard for all new builds in England by 2025.
(2) The Secretary of State must, in developing the Warmer Homes and Businesses Action Plan, consult the Climate Change Committee and its sub-committee on adaptation.”
New clause 62—Energy performance regulations relating to existing premises (No. 2)—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must make regulations—
(a) amending the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 (S.I. 2015/962) to require that, subject to subsection (2), all tenancies have an Energy Performance Certificate (EPC) of at least Band C by 31 December 2028; and
(b) amending the Energy Efficiency (Private Rented Property) (England and Wales) (Amendment) Regulations 2019 (S.I. 2019/595) to raise the cost cap to £10,000.
(2) Regulations under subsection (1) must provide for exemptions to apply where—
(a) the occupier of any premises whose permission is needed to carry out works refuses to give such permission;
(b) it is not technically feasible to improve the energy performance of the premises to the level of EPC Band C; or
(c) another exemption specified in the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 has been registered in the Private Rented Sector (PRS) Exemptions Register.
(3) Within six months of the passage of this Act the Secretary of State must make regulations—
(a) amending the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 to enable local authorities to give notice to landlords that they wish to inspect a property in relation to those Regulations, requesting permissions from landlords and any tenants in situ at the time to carry out an inspection at an agreed time;
(b) expanding the scope of the current PRS Exemptions Register and redesigning it as a database covering properties’ compliance with or exemptions from EPCs;
(c) requiring a post-improvement EPC to be undertaken to demonstrate compliance;
(d) requiring a valid EPC to be in place at all times while a property is let; and
(e) raising the maximum total of financial penalties to be imposed by a local authority on a landlord of a domestic private rented sector property in relation to the same breach and for the same property to £30,000 per property and per breach of the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.
(4) Regulations under this section are subject to the affirmative procedure.”
New clause 67—Local supply rights—
“(1) Within six months of the day on which this Act is passed, the Secretary of State must publish a report on and consult on the introduction of local supply rights for community energy schemes, which would enable these schemes to sell their power to local customers.
(2) The report must set out—
(a) the potential benefits of community energy,
(b) the estimated additional costs to consumer bills that would be incurred in order for community energy schemes to account for 10% of energy generation by 2033, and
(c) an estimate of typical cost/benefit ratios for local communities and consumers.”
This new clause seeks to require the Government to publish a consultation on the introduction of local supply rights for community energy schemes within 6 months of the Act being passed.
New clause 68—Reports on the functioning of the energy price support framework—
“Within six months of the day on which this Act is passed, the Secretary of State must prepare and lay before Parliament reports assessing—
(a) the potential benefits of a social tariff would have on levels of fuel poverty across the UK,
(b) the adequacy of the current system for individuals who have higher energy needs due to a medical condition, and
(c) the potential benefits of a strategy that rewards households who use less energy by guaranteeing them a lower price through a tiered electricity plan.”
This new clause will require the Secretary of State to report on the functioning of the current framework as it relates to certain groups.
Government amendment 180.
Amendment 3, in clause 2, page 3, line 30, at end insert
“issued by the economic regulator or other competent authority”.
This amendment allows persons with a CO2 storage licence from the North Sea Transition Authority to operate a geological storage site for CO2 disposal, as per current legislation in the Energy Act 2010.
Amendment 4, page 3, line 34, leave out “a service” and insert
“a monopoly service to multiple users”.
This amendment would exclude from the requirement to have an economic licence, all forms of transportation where competitive markets are more likely to develop than monopolies e.g. shipping, rail or road. It would also enable investment in private spur connections to the regulated CO2 network.
Government amendments 131, 198, 181, 132, 199 to 209, 144 to 147, 139 and 140.
Amendment 175, in clause 65, page 58, line 13, leave out
“in the opinion of the Secretary of State”.
This amendment would remove the role of the Secretary of State in determining who qualifies as a “low carbon hydrogen producer.”
Government amendments 141 and 142.
Amendment 9, page 60, line 22, leave out clause 69.
This amendment, together with Amendments 10 to 12, would leave out the clauses of the Bill which provide for a hydrogen levy.
Amendment 10, page 61, line 1, leave out clause 70.
See explanatory statement to Amendment 9.
Amendment 170, in clause 70, page 61, line 2, leave out
“relevant market participants (see subsection (8))” and insert “the Secretary of State”.
This amendment, together with Amendments 171 to174, is intended to provide that the Secretary of State, rather than relevant market participants, should fund the hydrogen levy administrator.
Amendment 171, page 61, line 19, leave out “relevant market participants” and insert “the Secretary of State”.
See explanatory statement to Amendment 170.
Amendment 172, page 61, line 34, leave out “relevant market participants” and insert “the Secretary of State”.
See explanatory statement to Amendment 170.
Amendment 173, page 61, line 37, leave out subsection (5).
See explanatory statement to Amendment 170.
Government amendment 148.
Amendment 174, page 62, line 9, leave out subsection (9).
See explanatory statement to Amendment 170.
Amendment 11, page 62, line 12, leave out clause 71.
See explanatory statement to Amendment 9.
Amendment 12, page 63, line 11, leave out clause 72.
See explanatory statement to Amendment 9.
Amendment 13, in clause 73, page 64, line 22, leave out paragraph (a).
This amendment is consequential on Amendments 9 to 12.
Amendment 14, page 64, line 26, leave out “each paragraph of”.
This amendment is consequential on Amendments 9 to 12.
Amendment 15, page 64, line 27, leave out “under that paragraph”.
This amendment is consequential on Amendments 9 to 12.
Government amendment 121.
Amendment 16, page 65, line 6, leave out paragraph (a).
This amendment is consequential on Amendments 9 to 12.
Amendment 17, page 65, line 10, leave out
“a hydrogen production revenue support contract or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 18, page 65, line 15, leave out
“a hydrogen production allocation body or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 19, in clause 74, page 65, line 22, leave out paragraph (a).
This amendment is consequential on Amendments 9 to 12.
Amendment 20, page 65, line 31, leave out
“hydrogen production revenue support contract or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 21, in clause 75, page 65, line 35, leave out subsection (1).
This amendment is consequential on Amendments 9 to 12.
Amendment 6, page 66, line 2, after “that” insert “eligible”.
This amendment clarifies that the low carbon hydrogen producer must be eligible to receive support, which other amendments ensure means that they are compliant with the Low Carbon Hydrogen Standard.
Amendment 22, page 66, line 10, leave out “(1) or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 23, in clause 76, page 66, line 23, leave out paragraph (a).
This amendment is consequential on Amendments 9 to 12.
Amendment 24, page 66, line 30, leave out
“hydrogen production revenue support contracts or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 25, page 66, line 33, leave out
“hydrogen production revenue support contracts or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 26, page 67, line 10, leave out
“hydrogen production revenue support contracts or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 27, page 67, line 15, leave out “for producing hydrogen or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 28, page 67, line 17, leave out
“(whether in respect of hydrogen production or capture of carbon dioxide)”.
This amendment is consequential on Amendments 9 to 12.
Government amendment 143.
Amendment 29, in clause 77, page 67, line 40, leave out subsection (1).
This amendment is consequential on Amendments 9 to 12.
Amendment 30, page 68, line 19, leave out “hydrogen production counterparty or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 31, page 68, line 24, leave out paragraph (c) and insert—
“(c) how the eligible carbon capture entity to whom the offer is made may enter into a carbon capture revenue support contract as a result of the offer;”.
This amendment is consequential on Amendments 9 to 12.
Amendment 32, page 68, line 28, leave out
“eligible low carbon hydrogen producer or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 33, in clause 78, page 68, line 36, leave out
“an eligible low carbon hydrogen producer, or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 34, page 68, line 39, leave out
“hydrogen production counterparty or (as the case requires)”.
This amendment is consequential on Amendments 9 to 12.
Amendment 35, page 69, line 1, leave out “hydrogen production counterparty or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 36, page 69, line 16, leave out “hydrogen production counterparty or”.
This amendment is consequential on Amendments 9 to 12.
Amendment 37, page 69, line 35, leave out clause 80.
This amendment is consequential on Amendments 9 to 12.
Amendment 38, in clause 81, page 70, line 33, leave out
“hydrogen transport counterparty, hydrogen storage counterparty, hydrogen production counterparty”.
This amendment is consequential on Amendments 9 to 12.
Amendment 39, in clause 82, page 71, line 1, leave out paragraph (a).
This amendment is consequential on Amendments 9 to 12.
Amendment 40, in clause 83, page 71, line 32, leave out sub-paragraph (i).
This amendment is consequential on Amendments 9 to 12.
Amendment 41, page 71, line 40, leave out paragraph (e).
This amendment is consequential on Amendments 9 to 12.
Government amendment 149.
Amendment 42, page 72, line 9, leave out
“hydrogen production revenue support contract or”.
This amendment is consequential on Amendments 9 to 12.
Government amendments 150 to 152.
Amendment 43, in clause 84, page 73, line 7, leave out subsections (3) and (4).
This amendment is consequential on Amendments 9 to 12.
Government amendments 210 to 213.
Amendment 44, in clause 86, page 74, line 9, leave out paragraphs (b) and (c).
This amendment is consequential on Amendments 9 to 12.
Amendment 45, page 74, line 22, leave out paragraphs (b) and (c).
This amendment is consequential on Amendments 9 to 12.
Amendment 46, age 74, line 28, leave out “a hydrogen levy administrator”.
This amendment is consequential on Amendments 9 to 12.
Amendment 47, in clause 88, page 77, line 2, leave out paragraph (b).
This amendment is consequential on Amendments 9 to 12.
Government amendments 153 to 162.
Amendment 48, page 78, line 37, leave out clause 90.
This amendment is consequential on Amendments 9 to 12.
Government amendment 163.
Amendment 49, in clause 91, page 79, line 36, leave out paragraph (b).
This amendment is consequential on Amendments 9 to 12.
Government amendments 164, 70, 165, 122 to 124 and 214 to 216.
Amendment 7, in clause 128, page 115, line 6, after “transportation” insert
“by pipeline, ship or other means,”.
Carbon dioxide transport by ship is almost certain to be a part of the Scottish Cluster and subsequent phases of other CCUS clusters and this amendment makes explicit that transportation by ship or other means would be included in the financial assistance available under clause 103.
Government amendments 125 to 129, 71, 72, 133 and 134.
Amendment 8, in clause 142, page 127, line 2, leave out from “heat” to the end of line 18 and insert “from a renewable source.”
This amendment would enable the Secretary of State to make provision for the establishment of a low-carbon heat scheme which encouraged the use of heating appliances that generate heat from a renewable source but which might previously have burnt a fossil fuel.
Government amendments 217 and 218.
Amendment 50, in clause 152, page 133, line 30, at end insert
“, except that that power is not exercisable without a warrant issued by a justice of the peace.”
This amendment would require a warrant for the exercise of the power to enter premises in a hydrogen grid conversion trial.
Amendment 130, page 136, line 3, leave out clause 155.
This amendment would remove clause 155 and therefore ensure that fusion energy facilities are still required to secure a nuclear site licence.
Amendment 1, in clause 159, page 137, line 31, at end insert—
“(1A) The person designated under subsection (1) must be a public body with no other roles or interests in the energy sector.”
This amendment ensures that the ISOP is a public body, not an individual or a private company, and has no conflicting interests.
Amendment 51, in clause 160, page 138, line 9, at beginning insert—
“(A1) The ISOP must carry out its functions in the way that it considers is best calculated to ensure the lowest possible cost of energy to businesses and households.”
This amendment, together with Amendment 52, would introduce a new primary objective for the Independent System Operator and Planner (ISOP), to which the existing objectives for the ISOP in the Bill would become secondary.
Amendment 52, page 138, line 9, at beginning insert “Subject to subsection (A1),”.
See explanatory statement to Amendment 51.
Government amendments 73 to 76.
Amendment 2, in clause 162, page 140, line 5, leave out subsection (1) and insert—
“(1) The ISOP must have regard to the strategic priorities set out in the current strategy and policy statement but will otherwise carry out its functions independently of the Secretary of the State.”
This amendment ensures that the Independent System Operator and Planner (ISOP) is independent.
Government amendments 166 and 77 to 79.
Amendment 53, page 178, line 25, leave out clause 212.
This amendment would remove the clause granting the Secretary of State an extension of time for the extension of powers relating to smart meters.
Government amendments 103 and 219 to 224.
Amendment 54, in clause 227, page 188, line 31, leave out paragraph (c).
This amendment would ensure that it was not possible to impose a penalty on a person for not complying with a request for information relating to a heat network zone.
Amendment 55, in clause 228, page 189, line 9, leave out subsections (2) to (10) and insert—
“(2) Regulations made by virtue of subsection (1) may not impose a requirement on any person.”
This amendment would prevent regulations about heat networks within heat network zones from imposing mandatory requirements.
Amendment 56, page 192, line 30, leave out clause 230.
This amendment would leave out the clause which provides for the enforcement of heat network zone requirements.
Amendment 57, page 193, line 12, leave out clause 231.
This amendment would leave out the clause which provides for penalties to be imposed by regulations about heat network zones.
Amendment 58, page 196, line 3, leave out clause 235.
This amendment, together with Amendments 59 to 63, would remove Chapter 2 of Part 9 of the Bill, on energy smart appliances.
Amendment 59, page 197, line 13, leave out clause 236.
See explanatory statement to Amendment 58.
Amendment 60, page 198, line 4, leave out clause 237.
See explanatory statement to Amendment 58.
Amendment 61, page 199, line 39, leave out clause 238.
See explanatory statement to Amendment 58.
Amendment 62, page 200, line 22, leave out clause 239.
See explanatory statement to Amendment 58.
Amendment 63, page 201, line 14, leave out clause 240.
See explanatory statement to Amendment 58.
Amendment 64, page 205, line 14, leave out clause 246.
This amendment, together with Amendments 65 to 67, would leave out Part 10 of the Bill, on the energy performance of premises.
Government amendments 182 to 184.
Amendment 65, page 206, line 29, leave out clause 247.
See explanatory statement to Amendment 64.
Amendment 66, page 207, line 1, leave out clause 248.
See explanatory statement to Amendment 64. This amendment would remove a clause which would enable the creation of criminal offences by regulations.
Government amendment 185.
Amendment 67, page 208, line 6, leave out clause 249.
See explanatory statement to Amendment 64. This amendment would remove a clause which would enable the amendment, repeal or revocation of primary legislation by regulations.
Government amendments 186 to 193.
Amendment 68, page 214, line 1, leave out clause 255.
This amendment would leave out the clause which provides for requirements to be imposed by energy savings opportunity scheme regulations.
Amendment 69, page 216, line 16, leave out clause 257.
This amendment would leave out the clause which provides for the enforcement of energy savings opportunity scheme regulations and the creation of connected penalties and offences.
Government amendments 225 to 229, 80, 81, 230 to 238, 82, 194, 239, 195, 240, 241, 83, 242, 84 to 94, 243, 176, 177, 196, 178, 244, 104 to 110, 169, 179, 111 to 120, 95 to 100, 197, 101, 135 to 138, 167, 168 and 102.
Andrew Bowie
I am delighted to rise today to bring before the House our landmark Energy Bill for its consideration. This world-leading, historic Bill—a Conservative Bill—will deliver for this country cleaner, cheaper and more secure energy. It will level up this country, while contributing to levelling down bills for the British people. It will unleash new technology, liberate private investment in clean technologies, modernise and future-proof our energy network, and deliver for this country and for future generations.
The United Kingdom already has a great story to tell on reducing our carbon emissions. We have reduced our emissions faster than any other G7 nation. We were the first European nation to legislate for net zero. We have the first oil and gas basin dedicated to going net zero and the first, second, third and fourth-largest offshore wind farms in the world operating and generating power off the coast of Great Britain right now. We have eliminated our reliance on coal. We have grown to more than 40% of energy being generated by renewables. We have announced further investment in carbon capture, usage and storage, and we are pressing ahead with Great British Nuclear, which I launched two months ago with an exciting programme for small modular reactors. We are on track to deliver 24 GW of nuclear power on the grid by 2025.
Ian Paisley (North Antrim) (DUP)
Can the Minister confirm that at the weekend, agreements were made that have removed Northern Ireland from benefiting from the renewable liquid fuel agreements? Is that the case, and if so, why?
Andrew Bowie
If the hon. Gentleman will have patience, I will come to the renewable liquid heating fuel amendments later in my speech, where I am happy to direct any questions to which he is seeking answers.
We have done all the things I have mentioned while growing our economy. We have cut our emissions by 40% while growing our economy by 60%. It is an inherently Conservative value—a value close to the hearts of all on the Government Benches—to pass on what we inherit in a better state to the next generation. That includes the state of our environment and our climate. There is also no more Conservative value than to ensure the security of our nation and its people, and that includes our energy supply.
John Redwood (Wokingham) (Con)
On that very point—security—what provision is being made for days when there is no wind, given that we will see the closure of most of our nuclear power stations this decade and will have little else to rely on, other than fossil fuel? How are we going to get through?
Andrew Bowie
My right hon. Friend knows that I am a great champion of supporting our oil and gas industry, which continues to supply a large amount of our energy baseload and will do for a significant amount of time to come. As he also knows, we are investing a lot of time and money into ensuring that we deliver the next generation of nuclear power plants, including small modular reactors, so that we have the energy baseload that this country needs so that, as he rightly suggests, when the wind does not blow and the sun does not shine, people can still be assured that the lights will come on. The Conservative principles that I have spoken about are at the very heart of the Bill, which I am pleased to bring before the House today.
It is true that some time has passed since the Bill was introduced in July last year. The Opposition spokesperson, the hon. Member for Southampton, Test (Dr Whitehead), was but a boy when this Bill was introduced last year. A huge amount of constructive dialogue and dedicated work has taken place during that time. I thank all the Secretaries of State at the Department for Business, Energy and Industrial Strategy and the Department for Energy Security and Net Zero, the Ministers and the Prime Ministers who have been involved since the Bill was introduced.
Since the Bill came to this House from the other place, I have met and engaged with colleagues from all sides of House. We debated the Bill in a lively Second Reading and spent 72 long hours in Committee, so I start by thanking everyone across the House, especially the shadow ministerial team, the former Scottish National party energy spokesman, the hon. Member for Kilmarnock and Loudoun (Alan Brown), and all on the Government side, for their constructive engagement in ensuring that we got the Bill to these final stages in a state that, I hope, will be broadly welcomed by most, if not all, Members.
Richard Graham
The Minister referred to base energy load, which is crucial in respect of nuclear energy, but is also relevant to marine energy, which, as he knows, we have huge potential for around our coast, particularly in Scotland. Will he confirm that that will play an important part in the next contracts for difference round and in his thinking?
Andrew Bowie
I am delighted to confirm that that will play an important part. Indeed, we have ringfenced £10 million to support marine energy in the country. We believe it has a huge role to play in delivering our energy baseload. Indeed, the innovations being made in that technology are incredibly exciting and will play a huge part in our energy baseload moving forward.
Jamie Stone
The Minister is incredibly well-mannered. The irony is that we generate an enormous amount of power from onshore wind in the highlands, yet we face the highest levels of fuel poverty. New clause 1, tabled in my name, talks about increasing the community benefit in some way and widening the number of communities who could benefit. I am aware that the hon. Member for Rutland and Melton (Alicia Kearns) has tabled a similar amendment, and I would like to voice my support and that of the Liberal Democrats for it.
Andrew Bowie
I thank the hon. Gentleman for his constructive intervention. The Government recently launched a consultation on community benefits, because we do understand that those communities being asked to host pieces of critical national infrastructure should be recompensed for that, and that the community benefits that the individuals, communities and groups in those areas receive should be enough to recompense them for what they are doing in the national interest.
Matt Hancock (West Suffolk) (Ind)
On infrastructure of national scale, in order to keep people on side, is it not also vital that such projects are in the right place—unlike the Sunnica development near my constituency—so that those of us who care about the agenda can support it wholeheartedly and ensure that the Conservative values that the Minister talks about are rightly behind the green energy revolution?
Andrew Bowie
Absolutely. It is incumbent on all involved, from the transmission operators to the developers, National Grid, the electricity system operator and indeed the Department and those across Government, to ensure that where such pieces of critical national infrastructure are being built, developed and planned, plans are proceeded with and laid in a way that is conducive to local sentiment and local support and will provide for that local community for many years to come.
Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)
Will the Minister give way?
Angus Brendan MacNeil
I am grateful to the very polite Minister, as was said by the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone). I am sure the Minister is aware that heat pumps will produce about 2.5 times the energy of the electricity put into them, or four times for ground source heat pumps—they are multipliers of the power put into them. The Government have a plan for 600,000 to be installed by 2028. Will we see those? How many will we see next year? Does he have intervening targets for that? At the moment, they are at only a 10th of where the target would have them.
Secondly, a point asked in my constituency is about the new £10 million community energy fund, which relates only to England, despite energy being reserved. Will he enlighten Euan Scott, my constituent, please?
Madam Deputy Speaker (Dame Rosie Winterton)
Order. There is so much pressure on time, so it is really important that interventions are short.
Andrew Bowie
On the hon. Member’s first point, absolutely, we remain committed to delivering, developing and rolling out heat pumps across the country, and we remain committed to the targets we have set out. On the community energy fund, there is already an equivalent Scottish community energy fund up and running and delivering for communities across Scotland. That is a competency of the Scottish Government at Holyrood. I would be delighted to direct any questions that he or his constituent have on that to the Scottish Government in Edinburgh. [Interruption.] He makes the case from a sedentary position that energy is reserved. Yes, but the Scottish Government have their own community energy fund. We will base a lot of what we are doing on that fund as it is rolled out in Scotland.
With your leave, Madam Deputy Speaker, I will take some time to explain the not insubstantial number of Government amendments to the House. I turn first to Government amendment 148 and the subsequent consequential amendments. I think it is fair to say that considerable concern was raised about the initial proposals for a hydrogen levy. The Government have carefully considered those concerns. I particularly thank my hon. Friend the Member for South Thanet (Craig Mackinlay) for his amendments on the issue, and indeed the right hon. Member for Doncaster North (Edward Miliband) for his amendments relating to those clauses. It is right that we take these considerations seriously and, where appropriate, seek to make changes.
Alec Shelbrooke
May I take the opportunity to thank my hon. Friend for reflecting on what I said in Committee and for the commitments given to me by the Government to bring about an amendment to the Bill? I thank him for listening to Back Benchers’ concerns in Committee.
Andrew Bowie
I was very pleased to take that intervention. I thank my right hon. Friend for it. If he is patient, I will explain to the rest of the House—I think Committee members are aware—what we seek to do with the hydrogen levy as it stands.
The Government’s amendments will remove provisions that enabled the levy to be imposed on energy suppliers in Great Britain, ensuring that within Great Britain the levy can be placed only on gas shippers. In the case of Northern Ireland, the amendments seek to ensure that only gas supply licence holders who engage with gas shipping can be subject to that levy. That reflects the different approach to the licensing of gas shipping across Great Britain and Northern Ireland.
The revised provisions will provide a fairer approach to funding hydrogen, placing the charge higher up the supply chain, with the potential for costs to be spread to the sectors expected to benefit most from early hydrogen development, not the wider British public. I remind the House that the Bill will also enable the option of funding hydrogen through the Exchequer. By providing two robust and reliable options for hydrogen funding, we will help bolster industry confidence in the viability of the UK hydrogen economy and boost private investment, with the potential to unlock significant energy security and economic benefits. The hydrogen sector could support over 12,000 jobs and generate up to £11 billion in private investment by 2030.
I must be clear, and the House should understand, that the Bill will not actually introduce a levy on gas shippers. Instead, it will enable the Government to introduce the levy through secondary legislation.
Craig Mackinlay (South Thanet) (Con)
It is very welcome that the levy will not be applied on households as a direct cost they will see in their bills, but it is something of a sleight of hand just to push it further up the supply chain, because it will be an energy-related cost somewhere in the supply chain that will feed down to every business and household in another way through an additional charge they will face, much like VAT. I welcome it as far as I can, but I would rather see it removed in its entirety.
Andrew Bowie
I thank my hon. Friend for his contribution. As we have spoken about before, I understand his position on the levy. It is our belief that in ensuring that the levy is placed higher up the chain, the sectors that will benefit most from the early development of hydrogen will bear the brunt of the cost, not the wider British public. That is the aim and intention of what we seek to achieve.
As I was saying, the Bill will not introduce the levy on to shippers; instead, it will enable the Government to introduce the levy through secondary legislation. I am sure we will continue to have this debate in the months and years ahead.
I turn to Government new clause 63, amendment 8 and new clauses 40 and 50 on renewable liquid heating fuel. I thank my right hon. Friend the Member for Camborne and Redruth (George Eustice) for his work and amendments relating to renewable liquid fuels for low-carbon heating. His constructive work with the Government has been incredibly helpful and positive. I also pay tribute to my hon. Friend the Member for Bury St Edmunds (Jo Churchill), who has been championing the use of renewable liquid fuels for low-carbon heating for many years.
As the recent biomass strategy made clear, such fuels will have a critical role to play in decarbonising our economy. We recognise that they have the potential to play an important role in decarbonising heat, especially as not all off-grid properties will be suitable for electrification. We will explore the potential of these fuels for heat by issuing a consultation within 12 months. We want to take the powers now to support the use of these fuels in heat in the future, should they be needed. That is why we tabled Government new clause 63, taking powers to impose obligations on heating fuel suppliers to increase the supply of renewable liquid heating fuels.
Nickie Aiken (Cities of London and Westminster) (Con)
In my constituency we have a particular issue with commercial and domestic use, because residents are often in the same building as commercial properties. It would be helpful for the Minister to look at the definition of heat network systems, so that Ofgem can understand what systems qualify as heat networks in domestic properties, which are a real issue in my constituency.
Andrew Bowie
The measures in the Bill will provide the Government with powers to implement heat network zoning in England. Those include powers to develop a nationwide methodology for identifying and designating areas as heat network zones, and to establish a new zoning co-ordinator role—which we generally expect will be filled by local government, though my hon. Friend is free to apply—with responsibility for designating areas as heat network zones and enforcing requirements in them. They also include powers requiring heat networks developed in zones to meet a low-carbon requirement, and to ensure that certain buildings and heat sources connect to a heat network in a zone within a specific timeframe. The relevant Minister in the Department and I will be happy to meet my hon. Friend to discuss how that will be relevant to her urban constituency as we move forward and seek to implement these proposals.
Richard Fuller (North East Bedfordshire) (Con)
I join the Minister in thanking my right hon. Friend the Member for Camborne and Redruth (George Eustice) for leading on the measures included in new clause 63. On the renewable liquid heating fuel obligation, the Minister said that he would do a consultation within the next 12 months. Many of my constituents who are off-grid also want secondary legislation to come through in the next 12 months. Can he assure the House that that is his intention?
Andrew Bowie
I can confirm that we will move to a consultation in the next few months. Indeed, we will use the powers to support the use of those fuels in heat in future, should they be needed. Again, as we move through the consultation period, other Ministers in the Department and I would be delighted to meet my hon. Friend and all Members concerned. I understand that this issue affects many constituencies across the country and, rightly, interests many right hon. and hon. Members. As we move forward with the consultation and towards implementing the powers, we will be delighted to meet Members.
David Duguid (Banff and Buchan) (Con)
I welcome Government new clauses 52 and 63, which are of particular value to those living in certain parts of the country, such as north-east Scotland, as the Minister is very much aware. Will he join me in reinforcing and emphasising the benefit of developments in sustainable aviation fuel and renewable liquid heating fuel respectively, particularly in Aberdeenshire?
Andrew Bowie
Yes, I am very pleased to welcome developments in renewable liquid heating fuel. The consultation, which will be UK-wide, will benefit those living in rural constituencies such as Banff and Buchan, and those across north-east Scotland and rural Britain. I welcome the support for the sustainable aviation fuel amendment, to which I will refer shortly.
Angus Brendan MacNeil
To back up the point made by the hon. Member for Banff and Buchan (David Duguid), standard consultation and the legislation being in place in 12 months do not show the necessary urgency. That is the point that unites many people. The Minister, with his Thompson gun approach to spitting things out, got that one out very quickly, but we need it done an awful lot more quickly than starting within 12 months. This Government will probably be gone in 12 months.
Andrew Bowie
I am determined to work very hard to ensure that this Government will not be gone in 12 months. However, we are taking the powers now to ensure support for the use of these fuels in heat in future, if needed. I should make clear that we are starting the consultation within the next 12 months, not in 12 months. It will be within the next year.
Ian Paisley
There is a vast rural housing network in Northern Ireland of so many households, and there is overreliance on heating oil. What is the arrangement for using renewable liquid fuels in Northern Ireland?
Andrew Bowie
Once again, I thank the hon. Gentleman for his question. I was just about to answer his original question: I can confirm that officials from the Department for Energy Security and Net Zero in London have been in discussion with Northern Ireland officials, who are broadly content with the Government’s approach on this issue. However, conversations will continue with Northern Ireland officials on what we can do to support renewable liquid heating fuels in Northern Ireland. Once again, as on the other issues I have specified, I would be delighted to meet the hon. Gentleman and colleagues from across Northern Ireland to discuss how this Government can ensure that the support delivered in Great Britain can be replicated in Northern Ireland.
I turn back to my comments on renewable liquid heating fuels. With regard to amendment 8, the powers in clause 142 relate only to the planned clean heat market mechanism, for which the Government’s focus is on supporting the development of the market for electric heat pumps. We do not believe that expanding the power set out here is necessary to allow for boilers burning renewable liquid fuels to be installed or used. In the light of those steps, I hope my right hon. Friend the Member for Camborne and Redruth is reassured by the Government’s action and will feel able not to press the amendment.
I turn to Government new clauses 52 and 169 and new clause 35 on sustainable aviation fuel. I thank my right hon. Friend the Member for Epsom and Ewell (Chris Grayling) for his constructive engagement with me and colleagues at the Department for Transport. This Government are committed to ensuring that the UK sustainable aviation fuel programme is one of the most comprehensive in the world. That is why in the Bill we are committing to publish a consultation on the options for designing and implementing a revenue certainty scheme within six months of it being passed.
We will also update Parliament within 18 months on the development of a sustainable aviation fuel revenue certainty scheme. As the Secretary of State for Transport, my right hon. Friend the Member for Forest of Dean (Mr Harper), set out in a written ministerial statement yesterday, that builds on our commitment to deliver a revenue certainty scheme for domestic sustainable aviation fuel production by the end of 2026. The intention is that the scheme will be industry-funded. Alongside that, we have published a plan for delivering the scheme, which contains a timeline of key milestones such as a public consultation on options, an associated Government response, design phases, and delivery and legislative steps.
Chris Grayling (Epsom and Ewell) (Con)
I thank my hon. Friend for his constructive approach on this issue. Could I seek one more assurance? When the consultation is finished, will the Government review the likelihood of securing the investment we want? If there is still doubt, will he ensure that discussion takes place about whether the Government should play a part in that, potentially at a future fiscal event?
Andrew Bowie
I can give my right hon. Friend that assurance and go further. That commitment, alongside our £165 million advanced fuels fund and the world-leading SAF mandate, will help to provide strong market signals and incentives to drive the demand and supply of SAF from sustainable sources. Future funding decisions on SAF will be considered as part of the next spending review.
I would like to turn briefly to community energy. I thank my hon. Friend the Member for Wantage (David Johnston) for his continued engagement on the Bill, particularly his championing of community energy, alongside many others in this House. The Government recognise that community energy projects can have real benefits for the communities in which they are based, and are keen to ensure that they deliver value for money for consumers. That is why we have launched a new £10 million community energy fund, which expands on the success of the previous rural community energy fund, to enable both rural and urban communities across England to access grant funding to develop local renewable energy projects for investment.
Sally-Ann Hart (Hastings and Rye) (Con)
It is fantastic that the Government have announced the new fund to help community energy schemes get off the ground. That is a very welcome step. Could my hon. Friend outline what steps he will take to remove the barriers that prevent community energy schemes from accessing local markets?
Andrew Bowie
I can indeed. I am delighted to tell my hon. Friend that alongside our proposed fund, we are committing to publishing an annual report to Parliament and to consulting on the barriers the sector faces when developing projects.
I am also very pleased to announce that His Majesty’s Government have reached an agreement with the Scottish Government to amend the Bill to secure their support for a legislative consent motion in the Scottish Parliament. The comprehensive set of amendments agreed with the Administration in Edinburgh will strengthen the Bill’s consultation provisions and require the Secretary of State to seek the consent of devolved Ministers before exercising powers under clauses 2, 3 and 293.
I would also like to take this opportunity to confirm to the House and to the Scottish Government that by virtue of clause 218(2)(a)(ii), the regulatory cost the GEMA can recover from gas and electricity licence holders from across Great Britain includes any costs it occurs performing the Scottish licensing function. The Government are disappointed that the Welsh Government have decided not to support the legislative consent motion for the Bill in the Senedd. However, as a sign of good faith the Government will extend the amendments agreed with the Scottish Government to apply in Wales and Northern Ireland where appropriate.
A number of Government amendments for consideration on Report relate to commencement. They ensure that clauses, such as those relating to the smart meter roll-out and low carbon heat schemes, will come into force as soon as the Bill gains Royal Assent. The remaining Government amendments are technical in nature and, as such, I do not propose to discuss any of them in great detail—I am sure Madam Deputy Speaker is delighted.
Christine Jardine (Edinburgh West) (LD)
I thank the Minister for giving way, but I notice that I cannot see any mention in the amendments of standing charges. I know that is a very difficult thing, but in my constituency there is a great deal of concern about the fact that there is no uniformity in the United Kingdom on standing charges. My constituents can pay around £100 a year more than people elsewhere in the country. Do the Government have any intention to address that issue, along with issues such as domestic insulation?
Andrew Bowie
I thank the hon. Lady very much for her intervention and her question. I am engaging with Ofgem on that very issue and am looking to convene a meeting in Edinburgh with all the significant players involved in energy transmission and production in Scotland at the earliest available opportunity, so we can discuss the issues regarding standing charges and other issues that affect Scottish bill payers. I would be very delighted to engage with her as we move towards that meeting taking place.
Angus Brendan MacNeil
The Minister may have heard on “The World at One” on Radio 4 last week the head of OVO Energy talking about the movement for the cost of transmission from the unit price to the standing charge price, which has ramped up standing charges and is very concerning to many people because that disproportionately impacts poorer bill payers. Will he look at that issue and discuss it with Ofgem at his meeting?
Andrew Bowie
Yes, I can confirm that I will raise that issue with Ofgem at my next meeting, and at the next available opportunity I have to meet the Chairman of the Energy Security and Net Zero Committee, I will certainly have an answer for him on that question.
Anna McMorrin (Cardiff North) (Lab)
In 2013, the then coalition Government cut all the energy efficiency programmes, plunging millions of people into debt. What plans does he have to ensure there is an insulation programme to provide desperately needed energy efficiency right across homes and households?
Andrew Bowie
This is the biggest piece of energy legislation ever passed by the British Parliament. We are driving forward with schemes to help insulate houses, drive down bills, and deliver cleaner and more secure energy, and all we can get from the Opposition is criticism. We have ramped up our renewable energy production to over 40%. We have eliminated coal. We are developing new nuclear, which the Opposition failed to do over 13 years in government. Rather than carping from the sidelines, it would be useful if Opposition Back Benchers got on board, supported the Bill and supported our great British companies developing the technology to take this country forward, creating the new jobs, ensuring security of supply and driving towards net zero, which means we will leave this country and the planet in a better place for the next generation, instead of trying to score political points at the expense of this Government who are seeking to deliver for the British people. As such, I am immensely proud of the Bill. It was strong before and it is even stronger now. It is, as I have just said, the single biggest piece of energy legislation ever to be brought before the House.
Andrew Bowie
I am afraid I will not give way.
The Bill is a revolution in community energy: restarting our nuclear sector; regulating for fusion; developing carbon capture, usage and storage; supporting the technology of the future; liberating private finance; developing our own oil and gas reserves; building an energy network of the future to secure our energy supply; securing our energy base so we are powering Britain from Britain; growing our economy; investing to ensure lower bills; and driving towards a cleaner future. That is what the Bill achieves. It was brought here and delivered today by the Conservative Government, moving the country forward into a brighter, more secure and cleaner future. Therefore, Mr Deputy Speaker, with great pleasure, I commend the new clauses and amendments to the House.
Several hon. Members rose—
Mr Deputy Speaker (Sir Roger Gale)
I apologise to those Members who have not been called; a note will be made and a count taken. I call the Minister, Andrew Bowie.
Andrew Bowie
I am delighted to rise. I must apologise in advance of my closing remarks: given the time available, I will not be able to address every single point, question, statement and amendment raised today. [Interruption.] That is the first time I have ever been told to speed up my speaking style. However, I will commit to write to every Member who has raised a question, and certainly questions that are pertinent to how we implement some of the regulations that we are presenting here today and which will be subject to discussion in the Lords next week.
On new clause 47, presented by my hon. Friend the Member for Rutland and Melton (Alicia Kearns), we keep all sanctions under review and she knows that we cannot comment on any potential future designations. We have a global rights sanctions regime, which allows us to take action when the necessary legislative criteria are met and we assess sanctions are appropriate. I can confirm to her that we take an interest in the concerns she set out and will continue to act. We have introduced new guidance on the risks of doing business in Xinjiang, enhanced export controls and announced the introduction of financial penalties under the Modern Slavery Act 2015.
Alicia Kearns
I know the Minister has historically been very strong on this point. I am interested in the fact that the Government have raised that point about sanctions and the possibility of sanctions, because we have not heard that before. Both the US and EU have sanctioned those who use slave labour within their supply chains. If the Government—I hope they are saying this today; I know they cannot comment on sanctions designations—are saying that they will bring forward sanctions against companies that are completely complicit in slave labour—we have the evidence both from the US and our own work—that will be incredibly positive because it would send a strong deterrent message across the industry that we will not accept slave labour in our supply chains.
Andrew Bowie
I thank my hon. Friend for her comments and constructive engagement over the past couple of days and months. As I said, I commit to working with her and other interested parties on this matter as we continue to do what we can to combat the existence of slave labour in that market.
The energy efficiency amendments were raised a number of times. I want to be absolutely clear: we are simply seeking to replace the power to amend the energy performance of premises regime, which was lost as we departed the EU. Brexit gives us the power to do that. I can categorically guarantee before the House that we are not creating new offences. In any case, any new offences on anything—as is always the case—would have to be subject to debate, scrutiny and vote in this place, which Brexit has allowed us to do.
My hon. Friend the Member for South Thanet (Craig Mackinlay) raised the issue of a warrant for exercising power of entry with his amendment 50. I assure him that clause 152 modifies the Gas Act 1986 by building on existing provisions concerning the powers of entry. As such, the existing rules on powers of entry will continue to apply, whereby gas transporters must obtain a warrant from the magistrates court before use. I hope that satisfies my hon. Friend.
I thank my right hon. Friend the Member for South Northamptonshire (Dame Andrea Leadsom) for her amendment today. I pay tribute to her for her outstanding work, her support for this Bill during her time as Secretary of State in the Department for Business, Energy and Industrial Strategy and her continued work when she was chair of the departmental Back-Bench committee. I am delighted to be able to confirm that we will continue to work towards what her amendment seeks to do, and I am happy to continue to work with her in pursuance of that, alongside the industry and the Department.
It would be remiss of me not to mention and thank my right hon. Friends the Members for Reading West (Sir Alok Sharma) and for Middlesbrough South and East Cleveland (Sir Simon Clarke) for their close work with the Government over recent weeks. Onshore wind is an important part of our energy mix, and the Government have always maintained that it should be built where there is local support, ensuring that the voices of local communities are heard. In December last year, the Government consulted on changes to national planning policy for onshore wind in England. Through that consultation, the Government have heard the strength of feeling and the range of views on this topic. We continue to believe that decisions on onshore wind are best made by local representatives who know their areas. Nevertheless, the feedback was clear that we need to strike the right balance, and that is why the Secretary of State for Levelling Up, Housing and Communities published a written ministerial statement, as was described earlier, and we look forward to working with colleagues to implement that as we move forward.
I would also be remiss not to mention my right hon. Friend the Member for Basingstoke (Dame Maria Miller) and her comments today and constructive engagement over the past few months. Lithium-ion battery storage systems are a concern for many in this House. The Government acknowledge the concerns surrounding the potential safety and environmental impact of battery energy storage at grid scale. It is a priority for this Government to ensure the existence of an appropriate, robust and future-proofed regulatory framework that protects people and the environment. That is why I am pleased to confirm today that we have sought to provide further clarity through both the planning system and environmental permitting regulations.
The Government have recently updated planning practice guidance, which encourages battery storage developers to engage with local fire and rescue and local planning authorities to refer to the guidance published by the National Fire Chiefs Council. The Government intend to consult on including battery storage systems in the environmental permitting regulations at the earliest opportunity.
The main mechanisms for controlling emissions to air, land and water from industrial installations is through complying with an industrial installations permit. These permits set out mandatory conditions that operators must comply with to protect the health of local communities and the local environment. Installations are then inspected at a frequency according to their level of risk, and regulators have enforcement powers available to them if operators are not complying with their permit conditions. I hope that my right hon. Friend and other hon. and right hon. Members for whom this is an issue of great concern are reassured by those commitments today.
I thank all hon. and right hon. Members for their engagement in this debate, especially my hon. Friend the Member for Banff and Buchan (David Duguid), who is a real champion of the UK’s thriving CCUS industry. I thank him for his comments today. The licences issued by different authorities are designed to serve different purposes. The new requirement for an economic licence recognises the monopolistic nature of carbon dioxide pipelines and storage and is designed to protect users of the networks from anti-competitive behaviours, including monopolistic pricing. This is complementary, rather than duplicative of the existing carbon storage licensing framework. I can reassure my hon. Friend that the provision in clause 128(1)(a) is sufficiently broad to cover all methods of CO2 transportation.
Finally, my hon. Friend spoke about offshore wind. As part of the development consent process, applicants are required to consult with stakeholders, including devolved Administrations where relevant, and consider the impacts of their development on other sea users. However, I am also happy to confirm that I will meet him at any time, as well as representatives of the fishing industry, for whom this is a big issue.
I thank Members across the House for their considered contributions. For the reasons that I have set out, I respectfully ask them not to press their amendments to any votes.
Question put and agreed to.
New clause 52 accordingly read a Second time, and added to the Bill.
Planning and Solar Farms
Andrew Bowie Excerpts(2 years, 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, Ms Nokes, and to respond to this incredibly important debate. It is incredibly important. I represent a vast 1,900 square-mile rural constituency, so I understand the pressures that are being felt in many of the constituencies represented here today.
I thank my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) for securing this debate. Let me say in advance that if I am unable to answer any of her questions today, I will get back to her at a later stage and will ensure that Ministers in the Department for Levelling Up, Housing and Communities and the Department for Environment, Food and Rural Affairs do so as well. I also thank my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) and my hon. Friends the Members for St Ives (Derek Thomas), for North Wiltshire (James Gray), for Penrith and The Border (Dr Hudson) and for Central Suffolk and North Ipswich (Dr Poulter) for taking part. I also thank the hon. Members for Strangford (Jim Shannon) for Tiverton and Honiton (Richard Foord) for taking part. It is especially good to see one of my predecessors, the right hon. Member for South Holland and The Deepings (Sir John Hayes). It is always nerve-racking when a predecessor comes into the room, but I thank him for his kind words and assure him that he has left some big shoes to fill in the Department.
I assure everybody here that sustainability remains at the heart of the Government’s ambition for development. That includes the protection of the environment and local communities. Energy security, food security and protecting our environment are some of the key challenges we face in the UK. Meeting these goals is urgent and of critical importance to the country. We believe they can be achieved together for the United Kingdom. We believe that solar energy will continue to play a key role in helping to secure greater energy independence while building a more sustainable and greener future for generations to come.
However, the Government recognise that solar farms, as with any new infrastructure, will have local impacts. It is therefore essential that we have a robust planning system that not only helps to deliver energy security but protects the environment and local communities and supports wider Government ambitions, such as food security. As several hon. Members have pointed out, and has been pointed out to me in the past, we are not able to create new prime agricultural land.
The dramatic rise in global energy prices following the covid-19 pandemic and Russia’s invasion of Ukraine has emphasised the urgency of the need to build a strong, home-grown renewable sector. Solar energy is key to achieving this. Solar farms are one of the most established renewable energy technologies in the UK and the cheapest form of electricity generation. We have seen an increase in the number and size of developments coming forward and expect this trend to continue. In the net zero strategy, the Government committed to installing up to 70 GW of solar capacity by 2035. That represents a fivefold increase in our current capacity, and we need to maximise the deployment of all types of solar to achieve this ambitious target.
It is important to stress that this does not mean seizing large swathes of the countryside and turning them into industrial solar farms and storage units. Yes, ground-mounted solar will be needed, but smaller-scale commercial and domestic rooftop projects will be just as essential, if not more so. The Government believe that solar and farming can be complementary, supporting each other financially, environmentally and through shared use of land. Therefore, we seek solar deployment across the UK, looking for development mainly on brownfield, industrial and low and medium-grade agricultural land, and we encourage solar technology that delivers environmental benefits, with consideration for ongoing food production or environmental improvement.
I will come on to planning for solar farm developments, but I listened with interest to the hon. Member for Tiverton and Honiton (Richard Foord). As we could not know from his contribution, I looked up the Liberal Democrat policy on planning for solar farms. Some people listening in Somerton and Frome might be interested to learn that the Liberal Democrats’ plan is to remove restrictions on new solar and wind to accelerate the deployment of renewable power across the country. They want to remove some community input into the planning process for new solar deployment, which is certainly not the position of His Majesty’s Government.
Planning applications for solar developments below 50 MW capacity are determined by local planning authorities—in the case of the hon. Gentleman, it would be the Liberal Democrat-run authority in Devon—through the Town and Country Planning Act 1990, and in accordance with the national planning policy framework and the relevant planning policy guidance.
Dr Poulter
I thank my hon. Friend the Minister for highlighting the role of local authorities in determining some of the lower-output solar farms. East Suffolk Council is run by a Green-Liberal Democrat coalition, which has already given the green light to developers and controversial developments in Framlingham. What reassurance can he give my constituents that the Government will make sure that controversial applications for solar farms are not green-lighted by local authorities?
Andrew Bowie
I will come on to the role that the Government play in the planning process. It is really important that local authorities—be they Liberal Democrat, Green, Conservative or Labour-run—take into consideration and listen to communities when they have expressed deep concerns about the deployment of solar farms or, indeed, other energy infrastructure projects that may be planned for those constituencies. I urge those listening to the debate to hear that message, and I urge Members present to ensure that party colleagues of theirs who run rural local authorities also hear it loud and clear.
Planning applications for solar farms with over 50 MW capacity are decided by the Secretary of State through the nationally significant infrastructure project regime, in accordance with national policy statements on energy. There are currently no operational projects of that size in England. However, there are 23 projects currently in the planning system, with the latest—the Longfield solar farm near Chelmsford—gaining consent from the Secretary of State just last month, ahead of the statutory decision deadline.
Matthew Pennycook
The problem of clustering has been raised several times. The Government recognise that as a problem, and we certainly think it needs to be looked into. Is the Minister able to give us a sense of why the Government did not include in in their NSIP reform action plan, published earlier this year? It was silent on the issue, despite the Government recognising it. Why is that?
Andrew Bowie
I will endeavour to get an answer to the hon. Member’s question from the relevant Government Department, and I will ensure that it gets to him as speedily as possible after the conclusion of the debate.
Alicia Kearns
My hon. Friend the Minister has just made the point that 23 planning applications are currently in the NSIP process. As far as I understand it, not a single proposal has been turned down yet by the Government. Does that mean that, no matter what, NSIP projects will be given the green light to go ahead, even if the Planning Inspectorate blacks out MPs’ responses and all sorts of other things? Are the projects genuinely being looked at on a case-by-case basis, or will we just green-light any NSIP project to get more green energy?
Andrew Bowie
Absolutely not. There is no automatic green-light system, and I am assured that every proposal is looked at on a case-by-case basis and on its merits, taking into account the opinions and concerns of the local communities it will affect.
The NPPF makes it clear that local planning authorities should have a positive strategy for producing energy from renewable and low-carbon sources, such as solar farms. It sets out that where a significant development of agricultural land is shown to be necessary, areas of poorer quality should be used in preference to those of higher quality. If it is proposed to use any land that falls under Natural England’s BMV classification—best and most versatile agricultural land—that needs to be justified during consideration of the planning application. As defined in the NPPF, “best and most versatile agricultural land” constitutes land in grades 1, 2 and 3a of the agricultural land classification planning decisions, and decisions should continue to be made based on that definition. However, I have heard the concerns raised by hon. Members, and I will ensure that DLUHC Ministers are made aware of them.
Sir John Hayes
I know time is brief, but can we take it that there is a presumption against development on prime agricultural land—certainly grades 1, 2 and 3a? I take the point about 3b, but let us just deal with the first three. Is there a presumption against the kind of development that takes valuable land out of food production?
Andrew Bowie
My right hon. Friend will have heard my earlier contributions. We are determined to ensure that land is protected for food security reasons and that this green and pleasant land that we are all so proud to represent continues to be just that. However, I understand the concerns of right hon. and hon. Members, so I will ensure that DLUHC Ministers hear them loud and clear.
Before I conclude, I will briefly turn to the issue of slave labour and China. My hon. Friend the Member for Rutland and Melton knows my personal position on the issue, and the Foreign, Commonwealth and Development Office will have heard loud and clear her representations here today. We are supporting the UK solar industry’s main trade association, Solar Energy UK, in leading the response from business to include securing the solar panel industry’s commitment to a robust supply chain traceability protocol, supporting a global co-ordinated response from the solar industry—the Solar Stewardship Initiative—and communicating relevant UK and international human rights frameworks. I will meet my hon. Friend in due course to discuss her proposed new clause to the Energy Bill.
I am grateful to all right hon. and hon. Members for attending today and to my hon. Friend the Member for Sleaford and North Hykeham for securing this important debate. I will of course ensure that DLUHC and DEFRA Ministers are made aware of the issues and serious matters raised this afternoon. We are committed to reforming policy so that it continues to complement wider Government ambitions: food security and preserving agricultural land, reforming the infrastructure planning system that focuses on improving community engagement, and introducing a new framework of environmental assessment through DLUHC’s Levelling-up and Regeneration Bill. I once more thank everybody for their contributions this afternoon.
Energy Infrastructure
Andrew Bowie Excerpts(2 years, 11 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 close this debate for the Government. I thank my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) for securing it, for his work as Chair of the Welsh Affairs Committee, which has contributed to the debate on energy in the round by producing a comprehensive and thorough report on energy in Wales, and for his description of the issue’s importance at this moment.
This is a very exciting and challenging time for all involved in the energy debate, which is probably why 17 Members, including 13 Back Benchers, have taken part in this debate. They all made insightful and useful contributions, and they are all engaging not only with the Department but with the various industries, companies and sectors that are active in their respective constituencies across the UK. We are undertaking a whole United Kingdom effort right now.
The United Kingdom’s energy infrastructure is at the core of our journey towards achieving net zero by 2050, reducing our reliance on imported fossil fuels and ensuring affordable energy for our citizens. We find ourselves facing the unprecedented task of transforming our infrastructure, including electricity generation, hydrogen production and energy networks among other areas. This transformation is vital not just for a huge range of sectors but for the nation as we improve our energy security following the events of the past 18 months.
Delivering on our commitments on both energy security and net zero necessitates the development of new transmission network infrastructure throughout Great Britain, both onshore and offshore. This grid transformation must, as the hon. Member for Southampton, Test (Dr Whitehead) said, be carried out swiftly, given the projected doubling of overall electricity demand by 2050. Members are acutely aware of the scale and importance of this challenge, as are the British Government. Furthermore, this transition also comes with major economic opportunities for green growth and green jobs, which we are determined to seize. Together with partners in industry, Ofgem and others, we are working to deliver this once-in-a-lifetime transition while ensuring that we all feel its benefits.
I had hoped for a damascene conversion on the Floor of the House by the hon. Member for Kilmarnock and Loudoun (Alan Brown), but he continues to disappoint by refusing to countenance the prospect of new nuclear projects north of the border in Scotland. I am incredibly proud to be this country’s first ever Minister for nuclear. However, it saddens me deeply that we will not see any development of new nuclear projects in the country I come from because of the luddite policy of the SNP and its partner in Government, the Green party.
Nuclear provides clean, affordable and secure energy, and the sector is of paramount importance as it underpins the whole economy. We have a diverse mix of low-carbon generating technologies in the UK and, along with investing in new technologies to lead the global mission to tackle climate change, new nuclear has an important role to play in reducing greenhouse gas emissions by 2050. That is why next Thursday, with great pride, we will be launching Great British Nuclear and beginning the down-selection process to ensure this country invests in the small modular reactor technologies that will help us to deliver our projected target of 24 GW of nuclear power on the grid by 2050.
I now turn to some of the contributions to what has been, overall, a very positive debate. My right hon. Friend the Member for Preseli Pembrokeshire opened the debate by describing the situation we face right now and what we have to do to tackle it. He also spoke about how this moment is both exciting and challenging. I can confirm that I have already met the Crown Estate to discuss how we can work much better together. He also raised the important issue of skills, which are the biggest challenge we face in delivering all the projects we seek to deliver over the next few years. That is why I have already instigated work between my Department, the Department for Education, the Department for Work and Pensions and, crucially, the Ministry of Defence, so that we can all work together to improve the skills base and to ensure that the next generation have the skills they need to contribute to the energy revolution this country is undergoing.
The newly independent hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil) contributed to the debate, as the Chairman of the Select Committee. He made an interesting contribution about hydrogen and, as I often do, I agreed with him, as he yet again hit upon the importance of hydrogen to the wider energy mix in the future.
My hon. Friend the Member for West Bromwich East (Nicola Richards), a great champion of the west midlands in general, was right about Labour’s energy surrender policy. We have an energy security strategy, whereas Labour has an energy surrender policy, presumably written by Just Stop Oil. It has contributed £1.4 million to the Labour party in recent years, which is important to this debate. She was also right to highlight the company in her constituency, Enfinium, and others in the west midlands that are working hard to contribute to the new technologies we are going to have to harness in this revolution.
Let me turn to the comments about carbon capture, usage and storage. It is an important part of the debate and it was discussed by my hon. Friend the Member for Great Grimsby (Lia Nici) and the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy). CCUS technologies have the potential to accelerate our decarbonisation across the UK, but especially in the Humber region, as has been said. We selected the east coast cluster as part of the CCUS programme’s track 1. We will launch a process later this year to enable the expansion of track 1 clusters, including on the Humber. We also set out our view that the Viking transport and storage system, given its maturity, is one of those best placed to deliver Government objectives for track 2. We will provide an update on track 2 in the summer.
Emma Hardy
I thank the Minister for that informative response. Will he emphasise that although the Viking project is crucial, two pipelines are needed in the Humber, one at Easington and one at the south? To meet our net zero target, we would need to deliver both. Will he briefly comment on the other pipeline, as well as the Viking project?
Andrew Bowie
Given the limits on time, I will not. However, I commit to meeting the hon. Lady and other Members from the Humber region—or one of my ministerial colleagues will do so—to discuss how we can move those projects forward at a pace that she would find acceptable and that would be beneficial to the Humber region.
My hon. Friend the Member for Ynys Môn (Virginia Crosbie), who is such a champion not just her constituency but for the nuclear industry in general, raised the prospect of the innovations and investment that we are taking forward and making in nuclear. I look forward to having many more conversations with her in the months and years ahead, as we get Great British Nuclear off the ground, begin our down-selection process and then move forward to further gigawatt projects later on.
The only problem with the comments made by the hon. Member for Bath (Wera Hobhouse), which were well informed, was that they were so negative. As my hon. Friend the Member for Stroud (Siobhan Baillie) pointed out, we cannot meet doom with doom—we have to be positive about the benefits to our economy, this country and the environment that will be brought by this energy revolution. I am very positive, as are this Government. For those who think that this Government are complacent, let me say that this Prime Minister and this Government created the Department for Energy Security and Net Zero, we are leading the G7 on cutting carbon emissions and we are launching new nuclear programmes, as well as investing in new technologies across the piece. This Government are not complacent: we are tackling the challenges head-on and we are growing the economy in the process of doing so.
Andrew Bowie
I will not, sorry.
My hon. Friend the Member for Mole Valley (Sir Paul Beresford) was right to raise the prospect of fusion and the transformative impact it will have. As has been said today, and as everybody says, fusion is always seen as being 20 years away. I can inform the House that we are looking to have the first commercial fusion reactor on the grid in this country by 2040. We are absolutely leading the world in this regard. It is fascinating to go up to the Culham centre to see the developments that are taking place and the science that is happening on that site. I cannot wait to see the developments at the West Burton site in Nottinghamshire as we move towards commercialisation at scale.
We heard contributions from the hon. Member for Stockton North (Alex Cunningham), my hon. Friend the Member for Peterborough (Paul Bristow), the hon. Member for Ceredigion (Ben Lake), my hon. Friend the Member for North Devon (Selaine Saxby), the hon. Member for North West Leicestershire (Andrew Bridgen), my hon. Friends the Members for Stroud and for Great Grimsby, and the hon. Members for Kilmarnock and Loudoun (Alan Brown) and for Southampton, Test (Dr Whitehead). It has been a very positive debate overall. I am pleased to have been able to respond on behalf of the Government. I am very committed to leading the change that is required to our networks, infrastructure and national grid, and in bringing forward the new technologies. We are proud to lead the world in ending contributions to climate change, as is demonstrated through our commitments to building a new energy infrastructure on a scale never seen before in Great Britain. Our strategy supports our ambitions for green growth and jobs, and will ensure that our energy infrastructure is secure and resilient, and delivers value for money to consumers, while delivering on our net zero target.
Mr Deputy Speaker (Mr Nigel Evans)
With the leave of the House, I call Stephen Crabb to wind up briefly.
Oral Answers to Questions
Andrew Bowie Excerpts(2 years, 11 months ago)
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Dame Maria Miller (Basingstoke) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
It is a priority for this Government that all net zero energy infrastructure is built, operated and maintained in an appropriate and safe way. My officials work closely with the industry-led electricity storage health and safety governance group to ensure an appropriate, robust and future-proofed health and safety framework is sustained as storage deployment increases.
Dame Maria Miller
We need to increase power storage, but the potential fire risks associated with lithium-ion battery storage facilities are now becoming widely acknowledged. What is my hon. Friend doing to ensure those facilities are not built in inappropriate locations, such as Basing Fenn in my constituency, which is a site sandwiched between a rare north-flowing, salmonid chalk stream and a hospital?
Andrew Bowie
I thank my right hon. Friend for her question and her tireless campaigning on this important issue. As I discussed in that very positive meeting that I had with her yesterday, I have been working with colleagues across Government to establish the appropriate treatment of these facilities in planning and environmental regulation. Every site should be considered on its own merits and is a decision for our local authorities.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will this Government stop chuntering on about batteries and battery storage all the time? Will they get down to JCB and see its innovative new hydrogen fuel car and heavy goods vehicle? Is it not about time that we realised that hydrogen is the future and that this Government should be building a pipeline of hydrogen throughout the country?
Andrew Bowie
I will not be drawn on chuntering on by the hon. Gentleman, but let me just say that it was this Government who allowed JCB to proceed with that technology and to develop it at commercial scale. I am pleased to tell him that the Secretary of State will be visiting imminently.
Stephen Kinnock (Aberavon) (Lab)
Alexander Stafford (Rother Valley) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government want communities to participate in and benefit from onshore wind proposed in their local area. On 11 May, the Government issued a consultation for onshore wind partnerships in England, proposing improvements to the current system of community engagement and benefits.
Alexander Stafford
Some energy firms give discounts to those who live near onshore wind farms when the wind blows. Unfortunately, though, that is not the case everywhere. Will the Minister look again at this policy nationally so that my constituents, such as those who live in Ulley near Penny Hill wind farm, and even myself—I live in Harthill near Loscar wind farm—will see the benefits of clean, green wind power reflected in their energy bills?
Andrew Bowie
The consultation on onshore wind partnerships proposed that the Government work with RenewableUK to update the industry-wide community benefits protocol for onshore wind in England. An updated protocol would seek to encourage more innovative approaches, for example through developers supporting local energy bill discounts. The consultation closes on 7 July.
Anna McMorrin (Cardiff North) (Lab)
I am not sure there is much point in community engagement when there is no onshore wind. We do not have any onshore wind. Last week, we heard the Climate Change Committee’s devastating report on this country’s commitment to net zero. When will this Government unlock the barriers to onshore wind?
Andrew Bowie
I completely refute the suggestion that we have no onshore wind. Onshore wind contributes 14 GW of power to the UK’s national grid as we speak, and of course we support the deployment of onshore wind with communities.
Andrew Bowie
I will take no lectures from the Labour party on developing renewable electricity. When Labour left office in 2010—[Interruption.] They do not like to hear this, but when Labour left office in 2010, less than 7% of the grid was accounted for by renewables. Now it is 43%.
Dr Whitehead
I think maybe the Government should take lessons from Labour. It is now generally understood that the Government consultation is likely to lead to only minimal relaxation of planning rules and that onshore wind will effectively remain banned. Tory peer Lord Deben, chairman of the Climate Change Committee, said of the consultation on Saturday that it is simply unacceptable that the Government are still discussing whether they are in favour of onshore wind or not when it is widely recognised as one of the cheapest forms of energy generation. He is right, is he not?
Andrew Bowie
I really wish the Labour party would stop talking down what we are doing on renewable electricity. I remind the House that the consultation on onshore wind finishes on 7 July.
Mrs Heather Wheeler (South Derbyshire) (Con)
Clive Efford (Eltham) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
My Department has been working closely with the Department for Levelling Up, Housing and Communities on delivering the proposals in the published action plan for reforming and speeding up the nationally significant infrastructure project planning process. An important part of those reforms involves updating and strengthening the national policy statements for energy.
Clive Efford
Last weekend, James Robottom, the head of onshore wind at RenewableUK, said that he does not expect much from the Government’s consultation on planning. He said that obstacles to new onshore wind development would
“severely hinder investment in the onshore wind industry and its supply chain due to the high level of risk and uncertainty they create. We are being denied the opportunity for thousands of new jobs and billions in private investment”.
In the meantime, that is costing English families £180 per year. It means damage to the economy, damage to the environment, and higher bills for families. Is it not time that we got this useless Government out of the way so that we can sort it out?
Andrew Bowie
This useless Government who have delivered 43% renewables on to the grid! I would much rather take our record on renewables than the Labour party’s any day of the week. The consultation on national policy statements closed, as the hon. Gentleman knows, on 23 June, and the Government remain on track to present them to Parliament and bring them into effect by the end of 2023.
James Gray (North Wiltshire) (Con)
Local authorities have a presumption in favour of solar, and quite right, too, but should they not also consider the cumulative effect of solar farms? Wiltshire is the second largest county in England for solar farms. If the new Red Barn project at Kington St Michael is added, it will be one of the largest solar farms in Britain. We are covering our good agricultural land with solar farms in counties such as Wiltshire. When the forthcoming planning policy guidance is reconsidered, will the Minister undertake to include a presumption against solar farms on grade 3a and 3b agricultural land?
Andrew Bowie
Food security is incredibly important, and we will, of course, prioritise less productive land for the deployment of solar farms. Our reforms aim to ensure that infrastructure developers consider, at the outset of their programmes, how projects can address the legitimate concerns of affected communities, engaging regularly with them throughout the pre-application phase and beyond. Engaging with statutory consultees early during the pre-application stage will also benefit local communities and farmers through high-quality applications.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Mr Ben Bradshaw (Exeter) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
The Government are supporting local authorities and community energy groups to work together to develop projects within UK growth funding schemes, such as the UK shared prosperity fund. Ofgem also welcomes funding applications from the sector to the industry voluntary redress scheme.
Mr Bradshaw
Why did the Government remove amendments from the Energy Bill last week that would have supported community energy and local energy trading?
Andrew Bowie
As we have outlined previously, the Government do not support the amendments that were tabled in the Lords, and believe that the issues raised should be considered as part of wider market reform. However, we are proactively working with parliamentarians and the community energy sector to discuss whether further support from the Government for the sector is needed, and if so, what might be feasible.
Anna Firth (Southend West) (Con)
John Spellar (Warley) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
I am pleased, and indeed proud, to say that Great British Nuclear will be holding a competition for small modular reactors, because we want to attract the best designs from both domestic and international vendors. The Government’s ambition is to select the leading technologies by autumn, providing co-funding to any viable new technology. Our commitment to a nuclear programme and to Great British Nuclear will enable the UK to be on a path to achieve its ambition to become a global leader in nuclear energy and small modular reactors.
Mr Roberts
As members of the Welsh Affairs Committee heard during a visit to the United States in January, small modular reactors should play a significant role in transition, alongside large-scale nuclear projects. Does the Minister agree that while north-west Wales has excellent scope for large-scale projects, parts of north-east Wales would be outstanding prospects for an SMR site, as well as capitalising on the region’s amazing manufacturing and engineering capabilities to drive that part of the energy mix forward?
Andrew Bowie
The Government recognise the support for nuclear power across north Wales. Great British Nuclear will work with the Government on access to potential sites for new nuclear projects to achieve our long-term ambition. As a first step towards the development of the new national policy statement for nuclear, we will consult later this year on a proposed way forward for determining how new nuclear developments, including SMRs, might be located.
John Spellar
The Minister will know that this country has been producing small nuclear reactors for our submarines for more than 50 years. Does the Minister understand that while he is dithering around with his time-wasting international competition, those international competitors are out there in the market getting the orders and selling, backed to the hilt by their own Governments? Is this going to be yet another great British development created by our scientists, engineers and skilled trades, but allowed to slip away by blinkered civil servants and weak Ministers who cannot make a decision?
Andrew Bowie
Rolls-Royce is a great British company, which is why we previously made up to £210 million available from the advanced nuclear fund to Rolls-Royce SMR Ltd to support the development of its small modular reactor design. Great British Nuclear will launch the first-stage selection process for small modular reactors, which is expected to attract the best designs from domestic and international vendors, which will be great for this country. By the way, we are going three times faster than any comparable country on this project.
Hannah Bardell (Livingston) (SNP)
Mark Fletcher (Bolsover) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Andrew Bowie)
Since day one, the skills challenges that we face have been a top priority for me, which is why my Department is working closely with the Ministry of Defence, the DFE and the sector to tackle them. With the employer-led Nuclear Skills Strategy Group, we have deployed a joint plan of skills actions to support the civil and defence programmes, but I would be happy to meet my hon. Friend to discuss that further.
Andrew Bowie
It was this Prime Minister who created the Department for Energy Security and Net Zero, and it is this Government who have delivered more than 43% renewable electricity on to the grid. We will take no lectures from the Labour party on combating climate change.
Lia Nici (Great Grimsby) (Con)
Will my hon. Friend please outline what his Department is doing to look at the import of green hydrogen feedstock into the UK, to increase the scale and speed of the UK industry and help us achieve our 10 GW capacity by 2020?
Andrew Jones (Harrogate and Knaresborough) (Con)
Unlocking access to the grid will unlock significant private sector capital ready to come in for microgeneration of battery storage projects. Can my hon. Friend give me an update on the timing for the Winser review and the Government’s response to it?
Andrew Bowie
The Government have received Nick Winser’s review and it will be published imminently.
Dame Nia Griffith (Llanelli) (Lab)
Following a debate in Westminster Hall on making heritage buildings more sustainable, will the Secretary of State undertake to meet his colleague the Minister with responsibility for culture to push for the urgent revision of guidelines to allow greater flexibility in the siting of solar panels and other renewable installations on heritage buildings, in order to make them more environmentally sustainable and economically viable?
Mr Gregory Campbell (East Londonderry) (DUP)
The Secretary of State outlined the progress being made on small modular nuclear reactors. Can he provide an estimate of how many there might be within 10 years?
Andrew Bowie
Great British Nuclear will be launched later in July. We will also be launching the draw-down selection process for which technologies we will invest in and support. I would be delighted to speak to the hon. Gentleman in more detail about that progress moving forward.
Patrick Grady (Glasgow North) (SNP)
I think my constituents, not least those who are part of the Glasgow Community Energy co-operative, will be disappointed with the Minister’s answer to the right hon. Member for Exeter (Mr Bradshaw). The Minister is extremely familiar with the clauses that form part of the proposed community energy Bill. They are not acceptable as amendments to the Energy Bill before this House. Will the Government bring forward their own amendments, so that community energy groups can have the confidence they need to take forward their projects?
Andrew Bowie
As I said, we are working with the sector and parliamentarians to find a way forward to further support community energy projects. As part of that, I would be delighted to meet the hon. Gentleman to discuss it further.