Making Britain a Clean Energy Superpower

Andy McDonald Excerpts

Friday 26th July 2024 Commons Chamber

[Michael Shanks]

I thank the right hon. Gentleman for his question, but it takes a bit of brass neck to come here and talk about bringing down bills when the Government he supported for so long saw those bills skyrocket. We have been very clear that bills will come down. We said it throughout the campaign, we said it yesterday and we stand by it, because bills must come down, but this will not happen overnight. [Hon. Members: “Ah!”] The Opposition Front Bench make noises now, but they have wasted years. We now need to catch up on this mission. We will catch up, and we will bring down bills.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

Will my hon. Friend give way?

[Michael Shanks]

I will make a bit of progress, if that is okay.

We will create thousands of skilled jobs, which, crucially, will also tackle the climate crisis that we have not done enough to tackle in recent years. It is for these reasons that the Prime Minister has made making Britain a clean energy superpower one of his five missions. The Government have a clear long-term plan to deliver that mission by increasing our energy independence, protecting consumers, and delivering good jobs and climate leadership. The outcome of that plan will be the decarbonisation of our power supply by 2030 and an acceleration to net zero across our economy.

To achieve that mission, we need to forge a new path that moves away from these volatile fossil fuel markets. That is why I was so delighted to introduce the Great British Energy Bill to Parliament yesterday. The Bill corrects an anomaly in our energy ownership, in which we have widespread public ownership of energy in this country, just not by us. We have offshore wind farms that are owned by the Governments of Denmark, France, Norway and Sweden, but not our own.

--- Later in debate ---

[Andy McDonald]

Will my hon. Friend give way?

[Michael Shanks]

I will, and I apologise for not doing so earlier.

[Andy McDonald]

I am grateful to my hon. Friend, and I welcome him to his position. I think it is clear to everyone that the early advance of the Great British Energy Bill demonstrates the Government’s priority, their commitment to driving down carbon emissions and the cost of energy, and their recognition that that can happen only through public ownership and private investment. That is something that the last Government failed to understand. I know that we will debate the Bill’s Second Reading after the summer recess, but could my hon. Friend say something about GB Energy having a controlling stake in new energy projects, and support to ensure that the public benefit? Perhaps he might also say something about the vexed issue of energy storage, because that will constitute a huge part of the programme.

[Michael Shanks]

My hon. Friend has raised two important points. To answer the first, GB Energy will invest in a range of projects and will have a key stake in them, delivering a return for the British taxpayer. There will be a range of projects, in some of which we will certainly have the controlling stake, and some of which we might help to get over the line, but in every single project there will be a return for the British taxpayer.

My hon. Friend’s second point is vital. I have been in this role for only a couple of weeks, but every meeting I have comes back to this question of connection, storage, and how we make sure that renewables can be delivered throughout periods in which there is electricity demand. Storage will be important, and GB Energy will have a part to play in that, as well as in answering wider questions about grid and network.

Let me return to the point about ownership by foreign countries. British waters are home to one of the largest offshore floating wind farms in the world, Kincardine, off the coast of Aberdeen. It is a good example of the problem with the current model. The foundations were made in Spain, the turbines were installed in the Netherlands, and only then was it towed into British waters. Our view is that British taxpayers should own some of that infrastructure, which is why yesterday the Prime Minister and the Energy Secretary announced an exciting new partnership between GB Energy and the Crown Estate to unleash billions of pounds of investment in clean power.

This partnership will enable two national institutions to work together for the benefit of the British people. As well as building supply chains, GB Energy will develop and own power projects in every part of the United Kingdom—in England, Wales, Scotland and Northern Ireland. It will be capitalised with £8.3 billion over the lifetime of this Parliament, money that can be invested in wind, solar, nuclear, tidal and other technologies, and it will deliver profits to the British people, playing a vital role in delivering the new jobs that we need.