Energy Infrastructure
Debate between Andrew Bridgen and Stephen Crabb(1 year, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Stephen Crabb
The evidence we considered took in the entire life cycle of a nuclear power station. Looking at the energy produced over 30, 40, 50 or more years shows that they give us a secure, reliable base load of affordable energy production. People who oppose nuclear per se will not be persuaded on cost or on the efficiency of the technology; they will not be persuaded at all.
However, the bulk of the evidence that the Committee received supported the analysis made not only by the UK Government, but by the Welsh Labour Government in Cardiff, which shared the view that nuclear power will be an important part of the mix. In debates about energy, people sometimes sound like football supporters, cheering for just one team. In truth, we need a blended basket of different energy sources to help provide energy security through a systematic approach. I believe nuclear has a significant role to play in future energy production.
Andrew Bridgen (North West Leicestershire) (Reclaim)
The right hon. Gentleman talks about the long-term future for nuclear, and I agree, but surely the small modular reactors that we are currently looking at are not revolutionary technology; they are submarine engines. Rolls-Royce at Derby assured us that, with an order, it could have one up and running in five years.
Stephen Crabb
We took evidence from Rolls-Royce, and we heard about the £200 million it has already received from the UK Government to help with development and that there is still work to be done. I know Ministers will be acutely aware of the cost and that there are other potential British providers of SMR technology. I confess that I am not expert enough on the precise details of SMRs to debate them this afternoon, but our report, alongside work undertaken by other parliamentary Committees, supports a potential role for SMRs in the future.
Having said that we should not sound like football supporters, just chanting for one energy source, let me come to the third report we produced, about floating offshore wind. I feel passionate about this subject as it represents an exciting opportunity for the United Kingdom, particularly for those of us on the western side of the British Isles. Floating offshore wind technology enables the deeper waters of the Celtic sea to be opened up for the first time. When turbines are further offshore, they can be larger and can harness greater wind power loads, representing an exciting clean energy opportunity, and not just for Wales but for south-west England and other parts of the UK.
I am pleased that the UK Government have an ambitious target to deliver up to 5 GW of floating offshore wind by 2030, with an acceleration anticipated thereafter. The Crown Estate, which owns the seabed, has a separate target for deploying floating offshore wind in the Celtic sea, which we welcome. However, we need stronger, more ambitious and longer-range targets, in order to send a strong and confident signal to developers and investors that we are in this for the long term; that there is a long-term plan to open up those waters to what will be a large-scale industrial opportunity.
One reason I am passionate about the new energy technology of floating offshore wind is because it has particular importance to my constituency in west Wales. The port of Milford Haven, in the heart of my constituency, has a rich energy heritage. It was built initially on whale oil, which was imported to power new street lamps in the urbanisation of London and Birmingham in the 19th century. In the mid and late 20th century, we had oil refining and imports of crude oil and petroleum products. Twenty years ago, we had the investment in imported liquefied natural gas, which has proved to be incredibly important in keeping the lights on in recent years.
The next wave of energy investment that we can see will be in floating offshore wind. That does not mean that we say goodbye to the many hydrocarbon companies based in Milford Haven; they are making great strides to decarbonise and change the way that they operate. It just means that an additional wave of investment is coming, which is very exciting.
There is a rare opportunity, not just for west Wales but across the whole south Wales industrial corridor, based around floating offshore wind and, potentially, hydrogen, for creating many new jobs and for renewing port communities and other areas of deprivation. That is why I was so pleased to work closely with the hon. Member for Aberavon (Stephen Kinnock)—he is not in his place today—on the bid for the Celtic freeport, which we saw as an important first step in unlocking investment into these clean energies.
The next step on which we are hoping for a positive Government reply is the floating offshore wind manufacturing investment scheme. Bids have already come in from south Wales. We need that additional bit of Government funding, again, to strengthen the signal to developers and port owners that they can start spending the money to get us ready for this new, exciting industry of floating offshore wind.
Before I close, let me flag up a few concerns that I have over the potential risks for this new industry, which I would like the Government to hear. First, there is a concern about the leasing process. The Crown Estate provided an important market update to the industry yesterday. I am pleased that it recognised that, if we are to create a genuine new home-grown industry with floating offshore wind here in the UK, with that local content and the local jobs, and not do what happened with fixed-bottom offshore wind, where so much technology was imported from overseas, then at the leasing round the Crown Estate needs to build in some strong commitments on the part of the developers for investing in local communities and local supply chains. I hope that the Government will be committed to ensuring that the Crown Estate is given all powers possible to hold the developers’ feet to the fire to make sure that, when they do bid for these leases, they follow through on those investment commitments to the local communities.
My second concern relates to contracts for difference, which have been incredibly important in stimulating investment in renewables. We have had four rounds of CfDs already. It was very disappointing for me that, as far as I am aware, there was no floating offshore wind technology bid in the fifth round. There was a general consensus that the strike price and those CfDs were not enough to stimulate the investment, with the enormous increase in cost that developers have faced in the past 12 months. I hope that the Minister will take that point away and discuss it with colleagues in his Department and in the Treasury.
Oral Answers to Questions
Debate between Andrew Bridgen and Stephen Crabb(9 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Wales (Stephen Crabb)
Our long-term plan is turning around the Welsh economy: since 2010, unemployment has fallen, manufacturing industry has created 12,000 jobs and the Welsh economy has grown faster than any other part of the United Kingdom.
Andrew Bridgen
Does the Secretary of State agree that key to rebalancing the economy is getting a proper grip of the public finances? Does he share my shock and horror at the recent TaxPayers Alliance report that exposes the enormous amount of waste in the public sector in Wales?
Stephen Crabb
With his eagle and sharp eye on the care of the public finances, my hon. Friend makes a really important point. I was actually shocked by some of the examples from the TaxPayers Alliance that we have read. Clearly, the Welsh Government and the entire public sector in Wales need to get a much stronger grip on the disciplines of cost control and to get on top of managing the national finances.