EU: Energy Infrastructure (EUC Report)

Baroness Howarth of Breckland Excerpts

Monday 29th July 2013 Grand Committee

[Baroness Howarth of Breckland]

My Lords, as the system that takes names for debates failed to capture my name, it can be no surprise that I have some scepticism about carbon capture, which seems to be rather more complex. I apologise for speaking in the gap but thought that I would be speaking on the list. By this point, of course, many of the points that I would have made have been made.

I am not a technician in this area but wanted to say a bit about the behavioural issues that, with all the complications that we have and the formidably intricate interrelationships between the hard sciences of energy, profoundly difficult economics and the uncertainties of Europe, may well be seriously compounded just by simple, human behaviour. The straightforward need for consumers to heat their homes and for energy to be available for all the other activities that make for civilised living, including employment, recreation and, as the noble Lord, Lord Whitty, was pointing out, producing more food, will become more politicised as prices increase, particularly if supplies become uncertain. During our considerations I heard more than one sceptic express the view that the lights might go out by 2017 and I have heard it said again in this debate.

The Government acknowledged in their response to our report that the EU must urgently implement its third internal market package in order to reduce prices to consumers, promote cross-border trade and provide incentives for efficient investment. However, the language—I come back to this as a social scientist—is that of uncertainty, “may” and “believe”. For example, they say:

“The Government believes that the 2030 framework—properly designed and implemented—can”,

drive choices in EU economies. The Government may well engage with others to ensure that the 2030 framework provides the right environment to secure investment, but what happens if that investment is not forthcoming? Is there another plan to secure supply?

Faced with consequential climate change, it has become necessary to engage the public in a debate about changing their lifestyles. Changing human behaviour is not easy, especially when understanding is limited. In our report we acknowledge that public concerns can be a significant obstacle to development. We heard on a number of occasions about Germany, where the issue was that there was a need to put a grid from north Germany to south Germany. It is public opposition that has delayed that, and that is the key point about that example.

A similar reaction is building up to the possible development in the north of England and some EU countries of the extraction of gas from shale, even before plans have been considered. There is a real need for urgent communications to show the benefits of some of these developments if they are not to be frustrated before they are even formulated.

There is a similar reaction in renewable energy, where significant growth rates are bringing down costs. We understood from witnesses that a number of onshore renewable resources, including wind, could be close to competitive but public opposition and strategic uncertainties impeded this. I am having to truncate my speech because of the time constraint.

It is not only attitudes among the general public that impede innovation. We were concerned that the SET plan is at risk of failing due to inadequate funding and a lack of clear strategy. It is understood that the Commission intended to progress this through an integrated road map and action plan. The committee was pleased to hear that DECC was already working closely with other member states to inform the development of these and seeking to align member states’ programmes more closely to delivering the SET plan objectives.

The fact, however, is that real progress has “remained elusive”. We note that the Government were hopeful—another “hope” word—that a new EU-level research programme and development funding would provide momentum in the SET plan implementation. Is there a clear timetable for this? Again, what will happen if significant private sector investment does not materialise?

My own learning has increased substantially due to my involvement in this work, including the complexities of the science of fuels. Throughout, it has been clear to me that the social science, the public acceptance of change, the way in which the media handle these issues, the communication of complex concepts in a comprehensible form and overall transparency are what will make plans succeed or fail in the long run. Does the Minister agree that without public acceptance we will simply not keep the lights on, and that that would lead to public disturbance?