Oral Answers to Questions
Debate between Charles Hendry and Paul Flynn
Charles Hendry
We are keen to learn to be more like the French and to understand how we can do that more effectively in these matters. We work closely with companies such as Areva and Westinghouse, which have assured us that they have a real commitment to developing supply chains here in the United Kingdom. We are working with local enterprise partnerships to ensure that the skills base is there. The partnership between Areva and Rolls-Royce is a fantastic example of how we can develop that in the United Kingdom and then those skills can be taken to the rest of the world.
Paul Flynn (Newport West) (Lab)
This time last year there were 54 nuclear reactors operating in Japan. Today there are three. Does not the anniversary of the terrible accident there last year convince the Minister that nuclear is the most fragile, unreliable power source?
Charles Hendry
No single source of energy is capable of withstanding the force of a multiple earthquake and tsunami. Those were very exceptional circumstances. We asked our regulator, who is well respected, to look into this and see what lessons we could learn, and we came to a different conclusion. We understand why the Japanese Government came to the conclusion that they did, but we see nuclear as an important part of a low-carbon future. We are therefore keen to take this forward, but we will never compromise on safety standards.
Paul Flynn (Newport West) (Lab)
T2. Will the Minister congratulate the firm of Mabey Bridge in Chepstow, which was started last year? It has just doubled its work force to 200 and has a full order book for 35 wind power towers. Will he take this opportunity to denounce the doubters on his Back Benches and give a clarion call of support for wind as a job-rich form of energy that is British, eternal and clean?
The Minister of State, Department of Energy and Climate Change (Charles Hendry)
The hon. Gentleman gives a perfect answer to the right hon. Member for Don Valley (Caroline Flint). That is an example of a company investing to take advantage of the opportunities that exist. I was delighted to be able to open the factory extension last year and to meet the company again last week. It is doing a tremendous job, and it is a great British success story.
National Policy Statements (Energy)
Debate between Charles Hendry and Paul Flynn
Charles Hendry
This debate is intended to fulfil our commitment to parliamentary approval of the national policy statements. The motion constitutes a further important milestone in the Government’s programme to secure affordable low carbon energy which will make the UK a truly attractive market for investors in energy infrastructure.
Let me briefly explain the background to the national policy statements and the purpose of each one. I shall, of course, be happy to take interventions as I go through them. Members may find it convenient to concentrate on the subjects individually, but I am mindful of the number who wish to speak in the debate.
The national policy statements do not contain new energy policy or change the standard for consenting projects, but they set out clearly and for the first time the national policy that must be considered before the granting of consent to infrastructure projects that are examined by the Infrastructure Planning Commission and, when the Localism Bill has been enacted, by its successor. The policy statements are critical to the new fast-track planning system that will encourage developers to embark on energy projects without facing unnecessary hold-ups. It will also ensure that local people can have their say about how their communities develop, and that decisions are made in an accountable way by elected Ministers.
We urgently need new electricity-generating infrastructure to replace our ageing power stations. If we are to meet our ambitious carbon targets, we must electrify much of our industry, heating and transport sectors. That could mean doubling our electricity generation, with about 60 GW of new capacity coming on line by 2025. Over the next 10 years, a quarter of our generating capacity will close as old or more polluting plants close. As the reserve margin of spare generating capacity falls, the risk of interruptions to our energy supply rises.
More than half the new capacity that we urgently need should be met with renewable energy, and a significant proportion of the remaining capacity should be met with other low-carbon technologies. That is a real challenge. Business and industry tell us that investment in infrastructure will help them to create growth and jobs. By setting out the need for new energy infrastructure, including a mixed portfolio of electricity generation, the national policy statements will unlock that investment and provide market certainty.
As Members will know, having considered the Energy and Climate Change Committee’s report and responses to the first public consultation in 2010, we made changes to the draft national policy statements and accompanying documents. Given the nature of the changes that we made, we decided to consult on the revised draft national policy statements between October 2010 and January 2011. Alongside our public consultation was parliamentary scrutiny of the revised draft statements. That work was undertaken by the Energy and Climate Change Committee, which considered the changes from the drafts that were consulted on by the previous Administration. The Committee then published a report, setting out 18 recommendations on the revised drafts.
We intend the national policy statements to be approved if that is the will of Parliament. My right hon. Friend the Secretary of State will designate them as quickly as is reasonably practicable. It has been suggested that designation should have been delayed until after we had reviewed them in the light of the electricity market reform White Paper which was published last week, but we do not think that delay is either necessary or desirable, as the policies have been developed in parallel to ensure they are consistent.
Paul Flynn (Newport West) (Lab)
Does the Minister consider it wise to omit any reassessment of the costs of nuclear power, given that many countries have abandoned their nuclear power plans in the wake of Fukushima? Has he thought about a possible increase in costs, especially to guard against a natural disaster or a terrorist attack?
Charles Hendry
The hon. Gentleman, who understands these issues, will be well aware that the national policy statements concern not the costs of different technologies, but the planning consents for them. If companies decide that the costs have risen and are not affordable, and that they will not achieve a return, they will not go ahead with the investment, but that is not the subject of this debate. However, we have conducted a thorough assessment of the lessons that need to be learned after Fukushima to determine whether any adaptation is needed in the policy statements. That is why we have reflected further, and have taken more time to consider them.
The overarching national policy statement, EN-1, sets out the need for each of the different energy infrastructure technologies. It makes it clear that we need a diverse mix to provide affordable, clean energy. It explains the Government’s policy on clean coal with carbon capture and storage and the need for gas and biomass electricity generation plants to be “carbon capture ready”, and sets out the part that renewables and new nuclear power stations will play in meeting our emissions reductions targets.