Solar Energy and Food Security: Land Use
Claire Coutinho Excerpts(2 years, 2 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Food security is an essential part of national security. This Government are fully committed to delivering robust UK food security and recognise its paramount importance to our national security. This is reflected in our commitment to maintain the current level of food we produce domestically. Heightened geopolitical risk has brought this into sharper focus and we think it is more important than ever that our best agricultural land is protected and our food production prioritised.
Similarly, we have seen our energy security threatened following Putin’s illegal invasion of Ukraine, with the Government spending over £40 billion to pay up to a half of people’s energy bills. We are combating this by racing ahead with deployment of renewable energy; nearly half of our electricity today is produced from renewables, which is up from only 7% in 2010. Solar power is a key part of the Government’s strategy for energy security, net zero and clean growth. This position was reinforced in the new national policy statement (EN-3), published in January this year, which stated:
“Solar also has an important role in delivering the government’s goals for greater energy independence and the British Energy Security Strategy states that government expects a five-fold increase in combined ground and rooftop solar deployment by 2035 (up to 70GW)”.
The Government recognise that, in some instances, solar projects can affect local environments which may lead to unacceptable impacts for some local communities. The planning system is designed to balance these considerations against the need to deliver a secure, clean, green energy system for the future.
Protecting the best agricultural land
The new national policy statement that we published in January makes clear:
“applicants should, where possible, utilise suitable previously developed land, brownfield land, contaminated land and industrial land. Where the proposed use of any agricultural land has been shown to be necessary, poorer quality land should be preferred to higher quality land avoiding the use of ‘Best and Most Versatile’ agricultural land where possible”.
The Government in “Powering Up Britain: Energy Security Plan” clarified that while
“solar and farming can be complementary”
developers must also have
“consideration for ongoing food production”.
Nevertheless, in balancing both the need for energy security and food production, we are concerned that as large solar developments proceed at pace, more of our “best and most versatile” land could be used for solar PV instead of food production. I am therefore setting out further detail about how our policy on balancing these competing priorities is intended to be applied.
As is outlined in the national policy statement, the starting position for solar PV developers in taking forward nationally significant infrastructure projects is that applicants should seek to minimise impacts on the best and most versatile agricultural land (defined as land in grades 1, 2 and 3a of the agricultural land classification) and preferably use land in areas of poorer quality.
The national policy statement can also be a material consideration in determining applications under the Town and Country Planning Act 1990 and is broadly consistent with the approach to agricultural land in the national planning policy framework which states that:
“Where significant development of agricultural land is demonstrated to be necessary, areas of poorer quality land should be preferred to those of a higher quality. The availability of agricultural land used for food production should be considered, alongside the other policies in this Framework, when deciding what sites are most appropriate for development”.
This means that due weight needs to be given to the proposed use of best and most versatile land when considering whether planning consent should be granted for solar developments. For all applicants the highest quality agricultural land is least appropriate for solar development and as the land grade increases, there is a greater onus on developers to show that the use of higher quality land is necessary. Applicants for nationally significant infrastructure projects should avoid the use of best and most versatile agricultural land where possible.
For nationally significant infrastructure projects, including those already in the system, the national policy statement and from today this WMS are likely to be important and relevant considerations in the decision-making process. The Government will keep under review the evidence base underpinning the national policy statement published in January.
Addressing cumulative impacts
While the total area of agricultural land used for solar is very small, and even in the most ambitious scenarios would still occupy less than 1% of the UK’s agricultural land, we are increasingly seeing geographical clustering of proposed solar developments in some rural areas, such as in Lincolnshire. When considering whether planning consent should be granted for solar development it is important to consider not just the impacts of individual proposals, but whether there are cumulative impacts where several proposals come forward in the same locality.
In parallel, my Department will be expanding the renewable energy planning database to include additional information on the types of agricultural land used by existing solar projects and those in the planning pipeline. This will enable us to carefully monitor the use of land by renewable projects in all regions of the UK.
Improving soil surveys
The Government have heard concerns about the perceived inaccuracy and unfairness of soil surveys undertaken as part of the planning process for solar development. The Government will address this by supporting independent certification by an appropriate certifying body, subject to relevant business case approval, to ensure agricultural land classification soil surveys are of a high standard, requiring surveyors to demonstrate meeting an agreed minimum requirement of training/experience. We will also seek to ensure consistency in how data is recorded and presented, so that reports on agricultural land classification are consistent, authoritative and objective.
Supporting solar on rooftops and brownfield sites
Finally, I want to highlight that increasing the deployment of rooftop solar remains a priority for Government. The installation of qualifying energy-saving materials, including solar panels, in residential accommodation and buildings used solely for a relevant charitable purpose currently benefits from a zero rate of VAT until March 2027, at which point they will qualify for the reduced rate of VAT at 5%. At the autumn statement 2023, the 100% first year allowance for main rate plant and machinery assets, and the 50% first year allowance for special rate plant and machinery assets, including solar panels, were made permanent. These measures complement the business rates exemption for eligible plant and machinery used in renewable energy generation and storage introduced in 2022.
This year, UK Government launched a new package of measures to support British farming. Under the second round of the improving farm productivity grant, between £15 million and £25 million was made available for the installation of rooftop solar and other equipment to help farms reduce fossil fuel use, improve their energy resilience, and accelerate progress towards net zero.
We also unlocked a key barrier for large-scale commercial rooftop solar, including on farm buildings, through changes to permitted development rights under the Town and Country Planning Act 1990. Concurrently, we introduced a new PDR allowing for the installation of solar canopies in non-domestic car parks.
We will shortly be delivering the future homes standard which will set the energy performance of new homes and is due to come into force in 2025. Our consultation proposals setting out the proposed technical detail of the standard demonstrated the effectiveness of rooftop solar in reducing energy bills for consumers with solar panels. For non-domestic buildings, the future buildings standard consultation proposed significant amounts of rooftop solar which is also expected to drive the use of solar power on warehouses and commercial buildings.
Additionally, social housing and the public sector both offer excellent opportunities to fit solar on homes and reduce bills. As such, we plan to explore further how to ensure that social landlords can provide solar to their tenants, and work across government to help schools, colleges, hospitals, and other buildings to supply themselves with solar power.
Further information on these initiatives will be set out in the upcoming joint Government-industry solar road map.
I am making this statement with support from my right hon. Friends the Secretaries of State for Levelling Up, Housing and Communities and Environment, Food and Rural Affairs.
[HCWS466]
Energy Infrastructure Planning Projects
Claire Coutinho Excerpts(2 years, 2 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
This statement concerns an application for development consent made under the Planning Act 2008 by North Lincolnshire Green Energy Park Ltd for development consent for the construction and operation of a combined heat and power enabled energy generating development, with an electrical output of up to 95 megawatts, incorporating carbon capture, associated district heat and private wire networks, hydrogen production, ash treatment, and other associated developments on land at Flixborough industrial estate, Scunthorpe.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on North Lincolnshire Green Energy Park application is 10 May 2024.
I have decided to set a new deadline of no later than 18 July 2024 for deciding this application. This is to ensure there is sufficient time for the Department to consider the outcome of the piece of work being carried out by officials from the Department for Environment, Food and Rural Affairs to consider the role of waste incineration capacity in the management of residual wastes in England. This follows the direction issued by the Minister for Food, Farming and Fisheries to the Environment Agency on 4 April to temporarily pause the determination of environmental permits for new waste incineration facilities up until 24 May 2024.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
[HCWS453]
Scope of Fusion Energy National Policy Statements: Consultation
Claire Coutinho Excerpts(2 years, 2 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
I am tabling this statement for the benefit of hon. and right hon. Members to bring to their attention the launch of the consultation on the scope of the fusion energy national policy statement on 8 May 2024.
Fusion energy has the potential to deliver low-carbon, safe, secure energy, and developers, investors, and the wider industry need to be able to plan with confidence to commercialise fusion technology. The UK’s STEP (Spherical tokamak for energy production) programme seeks to develop and build in the UK by 2040 a prototype fusion power plant. Private fusion companies in the UK and overseas are also quickly developing demonstrator fusion facilities. To deliver these facilities, sites for fusion energy facilities will need to be identified and construction started this decade.
If the UK is to maintain its global leadership in fusion and capture the environmental, economic and social benefits of fusion, the Government need to create a stable regulatory and planning environment that supports and encourages its development.
In 2022, the Government published a response to the fusion regulation Green Paper confirming that fusion will be regulated under a different framework than nuclear fission due to its lower hazard. With this different policy approach, the Government also identified a fusion-specific national policy statement as essential to providing clarity to developers and streamlining the planning process for fusion, aligning fusion with other energy-generating technologies. This is necessary not only to provide certainty for developers but also to align fusion with other complex energy-generating technologies which local authorities will lack the expertise to assess in the near future.
The consultation we have published begins the process taking us towards designating an NPS for fusion energy (EN-8). It will include our seeking views on the broad policy proposals for this NPS, and high-level planning criteria.
These broad policy proposals are:
Open-sited—a developer-led approach underpinned by site criteria rather than identifying sites. This approach would allow siting in more communities across the UK, subject to local support.
Technology inclusive—the UK’s fusion strategy committed to supporting all fusion technologies, so the NPS will cover all fusion technologies.
Output agnostic—amend the Planning Act 2008, so that all fusion energy facilities in England will be nationally significant infrastructure projects, independent of capacity of thermal or electrical output. This approach was proposed in the new nuclear NPS consultation, so any amendments to legislation will be co-ordinated.
This consultation relates to the exercise of powers in England and Wales. The Planning Act 2008 and the system of nationally significant infrastructure consenting do not apply to Scotland or Northern Ireland. The Wales Act 2017 gives Welsh Ministers responsibility for consenting to the construction of power stations of a capacity up to and including 350 MW.
Alongside the publication of this consultation, we will publish a consultation on the scope of an appraisal of sustainability and a habitats regulation assessment. These will inform consideration of the sustainability impacts of fusion development.
I am depositing a copy of the consultation in the Libraries of both Houses.
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Energy Prices Act 2022: Energy Scheme Expenditure
Claire Coutinho Excerpts(2 years, 3 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
I am tabling this statement to update hon. Members under the Energy Prices Act 2022, in line with the requirement under that Act for quarterly reporting to Parliament on expenditure incurred under it. £ million a) Expenditure incurred between 1 April and 30 June 2023 a) Expenditure incurred between 1 July and 30 September 2023 b) Cumulative expenditure incurred to 30 September 2023 Energy Bills Support Scheme GB and NI 3 0 11,873 Energy Bills Support Scheme Alternative Funding 2 3 262 Energy Price Guarantee GB and NI 2,307 58 23,364 Domestic Alternative Fuel Payment (27) (3) 589 Energy Bills Relief Scheme GB and NI 1,856 108 7,522 Energy Bills Discount Scheme GB and NI 25 89 114 Energy Bills Discount Scheme Heat Networks GB and NI 1 15 16 Non-domestic Alternative Fuel Payment 5 (5) 62 Heat Networks Alternative Dispute Resolution Bodies 0.2 0 0.2
This is the third report on energy scheme expenditure under section 14 of the Act and covers the quarters from 1 April to 30 June 2023, and from 1 July to 30 September 2023.
Energy prices are volatile and changes will affect the outturn cost of the schemes. The Government have prioritised support for those most in need, while ensuring that we act in a fiscally responsible way.
Since Putin’s illegal invasion of Ukraine caused energy bills to rise, the Government have stepped in with more than £40 billion of financial support. Over £43 billion was spent between October 2022 and September 2023, the most ever provided to subsidise household bills in UK history. This was in part funded through taxing energy producers’ excess profits, with the Government’s windfall tax on producers expected to raise over £26 billion by March 2029.1
Government support schemes covered nearly half of household energy bills between October 2022 and June 2023, saving households £1,500 on average.2
Future costs
Forecasts of FY23-24 (1 April 2023 to 31 March 2024) expenditure for the energy schemes were published by the Office for Budget Responsibility on 22 November 2023 as part of the autumn statement 2023. The forecasts provided were: £4.3 billion for the energy price guarantee, including prepayment meter levelisation; and £0.6 billion for non-domestic energy support, including energy bills relief scheme, energy bills discount scheme and energy bills discount scheme heat network support.
The costs in FY23-24 for other energy support schemes are expected to be net cash returns from suppliers and local authorities. This includes the energy bills support scheme, energy bills support scheme alternative funding, the domestic alternative fuel payment, and the non-domestic alternative fuel payment.
Separately, the forecast for heat networks alternative dispute resolution bodies funding is £0.2 million.
All forecasts are provided on an accruals basis. Ongoing work on the reconciliation of scheme costs may impact FY23-24 and FY24-25 forecasts.
To note:
Figures for expenditure incurred are on a cash basis. This includes payments made by the Department for Energy Security and Net Zero to energy suppliers, local authorities and other scheme operators.
Where the Department has received net cash back from energy suppliers or local authorities as part of the reconciliation of energy schemes, this is shown by a negative cash figure.
Some expenditure incurred in FY23-24 may relate to FY22-23. Therefore, forecasts for FY23-24 may be lower than expenditure incurred in FY23-24.
The energy bills support scheme in Great Britain was not made under the powers conferred by the Energy Prices Act 2022, but it is included for completeness.
Heat networks alternative dispute resolution bodies funding utilises the power conferred by section 13 of the Energy Prices Act 2022. This funding is separate from the energy bills discount scheme heat network support.
Administrative costs are not included in figures.
1 DESNZ, Press Release, 8 June 2023
2 Hansard, 13 November 2023, https://questions-statements.parliament.uk/written-questions/detail/2023-11-07/284
[HCWS421]
Oral Answers to Questions
Claire Coutinho Excerpts(2 years, 3 months ago)
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Sir Desmond Swayne (New Forest West) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Britain is a pioneer of floating offshore wind. We are working with the Crown Estate to lease 4.5 GW of seabed capacity for floating offshore wind in the Celtic sea, and we are supporting emerging technologies with a separate funding pot in allocation round 6.
Selaine Saxby
The White Cross project in the Celtic sea has a cable due to come ashore in my constituency, and it advises me that it is unable to agree compensation to businesses disrupted by these works due to a lack of Government guidance. Will my right hon. Friend meet me—and, ideally, come to see where the project is due to make landfall—to find an alternative cable route, and if not, will she ensure that White Cross is in a position to fully compensate the businesses that will be hugely impacted if the planned cable route proceeds?
Claire Coutinho
I thank my hon. Friend, who is a doughty campaigner for floating offshore wind. I am unable to comment on any specific concerns about a particular planning decision, but I am sure the relevant Minister will be happy to meet her to discuss how the Government can provide better guidance on compensation. People whose land is acquired compulsorily should not be left worse off financially, and compensation should be offered in line with the statutory compensation code.
Sir Desmond Swayne
What assistance can be had for those fast-growing enterprises principally reliant on equity?
Claire Coutinho
I thank my right hon. Friend for a typically pithy question. We are doing an enormous amount to support the landscape for investments in this country that rely on equity, whether that is through full capital expensing, or, in my area of responsibility, the green industries growth accelerator.
Tim Farron (Westmorland and Lonsdale) (LD)
I am sure the Secretary of State will agree that much of Britain’s energy needs could be met, and generated, offshore. Alongside floating wind power, we also have the opportunity to take advantage of tidal and marine power. Does she recognise that Britain has the second largest tidal range in the world after Canada, yet we use so little of it? To put that right, will she agree to meet me, other colleagues in this House and the northern tidal power gateway to look at how we can gain green, renewable, secure British energy from Morecambe bay?
Claire Coutinho
I thank the hon. Gentleman. I have been following tidal power for many years, and he is right to point out that the UK has both a strong record in renewables and an interesting geological landscape for new renewable technologies. We have dedicated £105 million—our biggest ever budget—to the flow of emerging technologies through AR6, but I would be delighted to meet him to discuss his work further.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for her response. There is always a competition. As I represent Strangford, the fishing sector is very important to me. It is important that we have floating offshore wind projects, but also to ensure that fishing can be sustainable. In these discussions, can she confirm that the interests of the fishing industry and representation from the fishing industry are given appropriate weight, taking into consideration the need for sustainable fishing to continue? Without fishing my people will lose jobs.
Claire Coutinho
I thank the hon. Gentleman. We are passionate supporters of the fishing industry. We continue to have conversations with the Department for Environment, Food and Rural Affairs to ensure that we share our marine bed in an equitable way, not only getting the most out of it for our clean energy needs but protecting the fishing industry.
Dr Alan Whitehead (Southampton, Test) (Lab)
I am sure the Secretary of State does not want a repeat on her watch of the failure of allocation round 5, when her Department managed to crash the offshore wind market. However, the industry is already warning that the parameters set for floating wind in the next round, AR6, could mean that only one sub-gigawatt project succeeds in getting contract for difference support: way off the Government’s recently trumpeted target of 5 GW of floating offshore by 2030. What steps is she taking to ensure that we do not see another failure and lose the global race for this emerging technology?
Claire Coutinho
If people want to ensure that we win the global race for renewable technology, they should, frankly, vote Conservative. Under the Conservatives, world-leading mechanisms have been introduced. The only country that has built more offshore wind capacity than the UK is China. We have an enormous and very successful track record, and continue to work with industry to ensure that AR6 will be a success.
Dr Whitehead
I am not sure that answer gives much reassurance to industry or this House. The truth is that uprating our port infrastructure is critical for deploying floating offshore wind and for reaching a zero carbon power system, but Government support is so inadequate that they are funding only two ports, dropping viable projects on the way, when, according to the floating offshore wind taskforce, to reach floating offshore wind ambitions we need infrastructure upgraded in at least 11 ports. Is this not another example of the Government failing to invest for the future and failing to back British industry?
Claire Coutinho
The only failure on renewable energy is the record Labour left when they were in power, when 7% of our electricity was generated from renewables whereas now that figure is 50%. On ports, not only have we got our world-leading freeport agenda but we have put forward projects such as FLOWMIS—the floating offshore wind manufacturing investment scheme—which is also helping to build our port infrastructure.
Dave Doogan (Angus) (SNP)
With 17 GW of floating offshore wind planned to be anchored within 100 nautical miles of Aberdeen, what steps will the Secretary of State take to ensure that technological and engineering knowledge and wherewithal and supply chain investment are also anchored within 100 miles of the north-east of Scotland?
Claire Coutinho
We are doing an enormous amount of work on supply chains. We have put forward our £1 billion green industries growth accelerator fund to support British supply chains, and we are also taking steps to attract investment into this country to build British business. All of that will be positive for the Scottish offshore wind sector.
Mary Glindon (North Tyneside) (Lab)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Our plans to decarbonise the grid by 2035 are ambitious but achievable, and have been assessed as realistic by the Climate Change Committee. They will build on the UK’s achievement in becoming the first major economy to have halved emissions. According to independent analysis, securing a net zero grid by 2030 would cost taxpayers £116 billion, and it would mean a “made in China” transition.
Mr French
The Conservatives have a strong track record of promoting renewables, and this Government are supporting British companies and supply chains through programmes such as Giga with funding which now stands at more than £1 billion. Does my right hon. Friend agree that Labour’s unaffordable and unrealistic plans to achieve a net zero grid by 2030 will not give British supply chains time to grow, as well as meaning the “made in China” transition to which she has referred?
Claire Coutinho
I completely agree with my hon. Friend. Only recently, we have seen European countries having to wean themselves off Russian oil and gas. We cannot do that, only to become dependent on other parts of the world for our energy needs. Our plan will give British supply chains time to develop, ensuring that British workers can reap the benefits of the energy transition. According to expert analysis, the Labour plans will cost taxpayers £100 billion—all to undermine British manufacturing and risk blackouts.
Philip Dunne
As the Secretary of State is aware, the Environmental Audit Committee inquiry into decarbonising the economy has heard evidence that no newly commissioned nuclear capacity—even from small modular reactors—is able to come on stream until 2035. New energy projects given planning consent today are unlikely to connect to the grid before 2030, and the scale of the necessary grid network roll-out to reach our 2035 target is already huge. What does my right hon. Friend make of the feasibility, let alone the cost that she has highlighted today, of the fantasy pipe dream of official Labour party policy to decarbonise by 2030?
Claire Coutinho
I thank my right hon. Friend for his question. The plans that we have set out represent the largest expansion of nuclear in 70 years, with radical reforms to the grid. However, it does take time to build things. Labour’s 2030 policy is mad, bad and downright dangerous. I have yet to meet a serious expert or a single person in the industry who believes it is possible. We have a record to be proud of, becoming the first major economy to halve our emissions, but Labour’s plans would heap costs on to taxpayers, in stark contrast to our pragmatic and proportionate approach.
Barry Gardiner (Brent North) (Lab)
If grid decarbon-isation by 2030 really did cost the billions of pounds that the Secretary of State claims, she might care to explain why her own policy is to achieve 95% of full decarbonisation by the very same date. She knows that independent analysis actually says that Labour’s plan would reduce families’ energy bills by £300 a year, so will she ’fess up? Will she admit that the true price of her failure will be paid for by hard-pressed families in their energy bills?
Claire Coutinho
I would completely reject that, based on the many conversations that I have had with industry and experts. The plans that we have set out have been assessed by the Climate Change Committee as being realistic. The plans that the Labour party has set out have been criticised by pretty much every single part of the energy system. Rather than playing politics with this issue, the hon. Gentleman should consider the reality of the taxes, the raised bills and the problems with the economy that Labour’s plans would force on Britain.
Olivia Blake (Sheffield, Hallam) (Lab)
Last year, the Government promised that they would publish their decarbonisation plan by the end of 2023, but they have failed to do so. Is that because the Secretary of State is too embarrassed to admit the truth? She is way off track, even for delivering clean power by 2035, because she has bungled the offshore wind auction, is failing on energy efficiency and refuses to end the onshore wind ban. Is it not the case that she wants to attack Labour’s plan because she cannot defend her own?
Claire Coutinho
I thank the hon. Lady, but that is an extraordinary question. There would be much more credibility from the Labour party if it would recognise that the UK is the first country in the G20—the 20 largest economies—to halve emissions. While Labour Members might play politics with this issue, I am absolutely happy to defend our position on dealing with our climate change obligations in a pragmatic way that protects household finances.
Nadia Whittome (Nottingham East) (Lab)
Greg Smith (Buckingham) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
I would first like to pay tribute to my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), who served this Government for eight years, including as Minister for Energy Security and Net Zero since 2022. He will be missed in the role for his expertise. He attended his first COP in 2005 and was instrumental in our achievements at COP28 last year. He helped the UK to halve its emissions, which is an extraordinary achievement. We are the first major economy to do so. He also worked with the Net Zero Council, protecting families through the global energy crisis and backing 200,000 British oil and gas workers. He leaves a legacy of which he can be very proud. I would also like to welcome the Minister for Energy Security and Net Zero, my hon. Friend the Member for North Swindon (Justin Tomlinson), a tireless campaigner who I know will continue this Government’s world-leading work.
Since I last updated the House, families are benefiting from a drop in the energy price cap worth almost £250 a year to the average household. I have set out plans to reform tariffs, saving bill payers up to £900 a year, and invested £750 million in nuclear skills as part of my plans for the largest expansion of nuclear in 70 years.
Greg Smith
The consultation on renewable liquid fuels from September is welcome, but the recent survey by the Future Ready Fuel campaign showed that 88% of respondents from off-grid households actively want the option of switching to a renewable liquid fuel. Will my right hon. Friend work with me to ensure that we can get consumers the choices that they actually want, and not the heat pumps that many do not?
Claire Coutinho
I thank my hon. Friend. I know that he is a fantastic champion for people living off the gas grid. We are supporting off-grid homes to transition to heat pumps or biomass boilers through the boiler upgrade scheme, with grants of up to £7,500. Renewable fuels such as hydrotreated vegetable oil have the potential to play an important role in heating off-grid buildings, and we will be issuing a consultation on that role by September, in line with commitments made by Ministers during the passage of the Energy Act 2023.
Edward Miliband (Doncaster North) (Lab)
Mr Speaker, can I start by paying tribute to your father, Doug? He was a remarkable fighter for social justice, and we share your sense of loss.
A year ago, after presiding over the absolute scandal of the forced installation of prepayment meters, the right hon. Lady’s predecessor promised full compensation for anyone affected. Unbelievably, she has left it to the energy companies to decide who gets compensation and how much. They have assessed 150,000 people and just 1,500 got anything—99% got nothing. Why has she so catastrophically failed to deliver justice for those affected by the PPM scandal?
Claire Coutinho
The right hon. Gentleman does actually raise an important issue. We have gripped the question of prepayment meters since the scandal first emerged. Not only have we made it clear that the horrors that we saw last winter, of people forcing prepayment meters on vulnerable households, should not take place, but I have been in contact with Ofgem in recent days about making sure that people can get the compensation they deserve at the speed with which they need it.
Edward Miliband
That is simply not good enough. It is a year on. The right hon. Lady is the Energy Secretary; she should be delivering that compensation to people, and she is failing across the board. The onshore wind ban remains; the offshore wind market crashes; the insulation schemes are a disaster, while she spends her time appeasing the flat-earth, anti-net zero brigade in her own party. No wonder the former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart) resigned. Is it not the truth that the Secretary of State is failing in her job and the British people are paying the price?
Claire Coutinho
The right hon. Gentleman did not listen to my previous answer. It was this Government who worked with Ofgem to make sure that forced prepayment meter installation stopped taking place for vulnerable households. We have said very clearly that it is abhorrent, and we do not want to see it again. On compensation, we are working with Ofgem.
However, if the right hon. Gentleman talks about the wider energy plans—and we should do that—I think that he should consider the recent comments from industry that Labour’s plans would leave the country uninvestable, that they would hike the bills that people would pay, and that they would cost so much in needed taxes—over £100 billion of costs for Labour’s mad plans to decarbonise the grid by 2030, which, let me be clear, are not backed by industry, the unions or consumers.
Dr Luke Evans (Bosworth) (Con)
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Claire Coutinho
We recognise the role that CCS can play for the economy not just in the Humber but across the wider British economy, which is why we have set out £20 billion of investment committed to this sector. We set out an ambitious road map just before Christmas, and we continue to meet investors to see how we can speed up the process.
Andrew Rosindell (Romford) (Con)
I have been speaking to my constituents about the whole net zero agenda. Although the people of Romford are very determined to see cleaner and greener energy sources, I have to say that their priority is energy security, energy self-sufficiency and energy sovereignty. I am worried that we are not taking the people with us on net zero, because many people simply cannot afford this extreme agenda that could end up giving China a competitive advantage and bankrupting our own country.
Mike Amesbury (Weaver Vale) (Lab)
Claire Coutinho
I direct the hon. Gentleman to the letter of my right hon. Friend the Member for Beverley and Holderness (Graham Stuart). I reiterate our pride in his work and the amazing contribution he has made to this Government and this country.
Sara Britcliffe (Hyndburn) (Con)
Clayton-le-Moors in my constituency is home to the Lancashire centre for alternative technologies, initiated by the Government’s getting building fund. Will the Minister agree to visit to see how the centre is providing financial and research and development support to accelerate the commercialisation of low-carbon technologies?
Sunnica Energy Farm Development Consent Application
Claire Coutinho Excerpts(2 years, 3 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
This statement concerns an application for development consent made under the Planning Act 2008 by Sunnica Energy Farm for the construction and operation of a solar photovoltaic electricity generating station, situated across west Suffolk and east Cambridgeshire.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it.
The current statutory deadline for the decision on the Sunnica Energy Farm application is 11 April 2024.
I have decided to set a new deadline of no later than 20 June 2024 for deciding this application.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
[HCWS398]
Energy Efficiency Update
Claire Coutinho Excerpts(2 years, 4 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Today, I am announcing updates on the boiler upgrade scheme and the clean heat market mechanism. I am also announcing that we are publishing the Government response to the improving boiler standards and efficiency consultation.
Boiler upgrade scheme
The BUS provides grants to encourage property owners to replace existing fossil fuel heating with more efficient, low carbon heating systems. On 23 October, we increased the grant levels for heat pumps to £7,500, making the BUS one of the most generous schemes of its kind in Europe. Since then, applications have risen sharply. October, November and January have been the highest three months for BUS applications, and December applications were up 49% on December 2022. The latest figures for January 2024 showed a 39% year-on-year increase on January 2023, showing that our approach is working. Up to the end of January 2024, 33,424 applications have been made to the scheme, and it has paid out 20,497 vouchers to properties across England and Wales, amounting to just over £113 million.
Today we are publishing our response to the consultation on proposed changes to the BUS. The response addresses changes proposed by stakeholders including the Environment and Climate Change Committee, aimed at broadening the pool of properties eligible for the Scheme. We will:
Remove the requirement for a property to have no outstanding energy performance certificate recommendations for loft and cavity wall insulation—although Government guidance remains that properties should be appropriately insulated. This will address concerns about forcing hard-pressed families to carry out insulation upgrades to be eligible for the scheme by instead empowering them to decide what is right for them.
Increase the capacity limit for shared ground loops from 45kW to 300kW. This will address concerns that the cost of groundworks for ground source heat pumps is a significant barrier to deployment. The change will spread the costs of ground infrastructure, making them a more affordable solution for consumers.
Expand the definition of biomass boilers eligible for the scheme to include those which have a cooking function, provided it is integrated and cannot be controlled separately to the heating function of the property. This will allow a wider range of biomass boiler models under the scheme, thereby widening consumer choice.
Introduce flexibility into the regulations to be able to vary the grant levels more quickly for specific types of property, in future, if needed in response to changing market conditions or future regulation.
Clean heat market mechanism
The Government remain fully committed to supporting the transition to low-carbon heating, including the aim for 600,000 heat pump installations a year by 2028. Today we are publishing an addendum to the Government’s response to the clean heat market mechanism consultation, which was published on 30 November 2023.
In line with our proportionate and pragmatic approach to net zero, we are committed to supporting families to make changes to their homes in a way that does not force them before they are ready or saddle them with unnecessary costs. That is why we increased the boiler upgrade scheme grant by 50%. Our plan is working, as the sustained increase in applications to the scheme shows.
We have recently seen unjustified price hikes for gas boilers by some manufacturers with considerable market power. These pricing decisions have called into question whether the home heating industry, which has four companies dominating 90% of the market, is working as well as it should and delivering the best outcome for consumers. We are calling for the Competition and Markets Authority to conduct a review of the home heating appliance market to understand whether any weakness in competition is contributing to prices being higher than they would be in a well-functioning market.
The Government have scrapped the implementation of the clean heat market mechanism until April 2025, adjusting the launch from 1 April 2024 to 1 April 2025. In doing so, the target levels for 2025-26—set at 6% of relevant boiler sales—and other aspects of the scheme’s design and implementation, would remain as set out in the Government’s November 2023 consultation response.
Improving boiler standards and efficiency consultation: Government response
The Government response to the improving boiler standards and efficiency consultation sets out updated proposals to improve gas boiler system efficiency which will reduce household energy bills. In addition, only if a decision is taken in 2026 that hydrogen will play a substantive role in heat decarbonisation will the Government move to require domestic gas boilers be hydrogen-ready and then only from 2030. The response also set out plans to enable the installation of high-quality, efficient hybrid heat pumps.
We plan to implement most proposals via an update to ecodesign and energy labelling regulations, which would apply in Great Britain. We intend to publish a consultation on draft legislation to give effect to these proposals in due course.
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Review of Electricity Market Arrangements: Second Consultation
Claire Coutinho Excerpts(2 years, 4 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
After a period of unprecedented disruption and change, our energy sector is now poised to seize the opportunities of the energy transition. We have become the first major economy in the world to halve our emissions, and today we are seeking to build on that progress with the review of electricity market arrangements (REMA) second consultation.
The options in this consultation could save consumers tens of billions of pounds. It will ensure that our electricity markets are fit for the future, and to prepare our electricity system for full decarbonisation by 2035, subject to security of supply.
Reforming the electricity market is key to delivering a low-cost system, driving down both the cost of power itself and the infrastructure needed to deliver it to consumers. The first REMA consultation sought views on the case for change, programme objectives, and a wide range of options. This consultation sets out a much sharper vision for our future electricity market arrangements, significantly narrowing down the remaining options.
The reform options in this consultation have the potential to save tens of billions of pounds from consumers’ bills. Doing nothing is not an option. Existing arrangements will get harder to operate and could lock in a high-cost path to transition. Our analysis suggests that reforming our electricity markets could reduce overall system costs by £35 billion from 2030 to 2050.
This is also an opportunity to unlock massive investment in a cost-effective and secure energy system. An estimated £275 billion to £375 billion in new capacity may be required. Achieving this will require the private sector to work alongside the Government, the regulator and the system operator to help design future markets to encourage large-scale investment.
We are also taking the steps necessary to future-proof the country’s energy security and keep the lights on. With electricity demand set to rise and existing gas plants nearing the end of their lives, the Government will support limited new build gas capacity in the short term, for when the sun is not shining and the wind is not blowing. This is a sensible insurance policy, and independent analysis demonstrates that unabated gas generation will continue to play an important part in the 2030s. The Government have already passed laws requiring new gas plants to be built ready to convert to low-carbon alternatives in the future, and running hours will continue to reduce as more renewables come online. This means the plans will not add to projected emissions and are entirely in line with the UK’s world-leading carbon targets.
The next phase of the REMA programme will finalise the remaining policy options. We expect to provide a summary of responses in summer 2024 and move into full-scale implementation from 2025.
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Sunnica Energy Farm: Development Consent Application
Claire Coutinho Excerpts(2 years, 4 months ago)
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The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
This statement concerns an application for development consent made under the Planning Act 2008 by Sunnica Energy Farm for the construction and operation of a solar photovoltaic electricity generating station, situated across West Suffolk and East Cambridgeshire.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it.
The current statutory deadline for the decision on the Sunnica Energy Farm application is 7 March 2024.
I have decided to set a new deadline of no later than 11 April 2024 for deciding this application.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
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Oral Answers to Questions
Claire Coutinho Excerpts(2 years, 5 months ago)
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Chris Law (Dundee West) (SNP)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Energy prices are now at their lowest level for two years, with a typical bill set to drop by £238 by April. Our cost of living package totals over £104 billion, or £3,700 per household on average, over 2022 to 2025. We are supporting those most in need, with millions of vulnerable households receiving up to £900 in cost of living payments.
Chris Stephens
Some of us believe in preventative spending. A House of Commons Library briefing last year estimated that the annual cost to the national health service of treating illnesses associated with living in cold or damp housing is £1.4 billion. When wider societal costs are considered, that figure rises to £15.4 billion. Will the Secretary of State confirm whether the introduction of a social energy tariff would cost less than £15.4 billion?
Claire Coutinho
A social tariff means lots of things to different people, but we are supporting vulnerable people with the cost of their energy bills. We supported them last winter, paying on average a half of everybody’s energy bills, and we have made additional payments of £900 to support people. Since 2010, we have increased the proportion of homes that are energy-efficient and insulated to 50%, up from 14%.
Virginia Crosbie (Ynys Môn) (Con)
On energy tariffs, what assessment has the Secretary of State made of the merits of providing residents who are local to energy and nuclear plants with discounts on their energy bills?
Claire Coutinho
I thank my hon. Friend for her doughty campaigning for nuclear—she is our very own atomic kitten. We are very positive about nuclear and have set out plans for the largest expansion of nuclear for 70 years. Overall that will be a good thing for people’s energy bills and the energy security of this country.
Kate Hollern (Blackburn) (Lab)
Jack Brereton (Stoke-on-Trent South) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
The UK has already made tremendous progress in securing investment in green technologies; recent figures indicate that there was £60 billion of investment in the UK in 2023, meaning that since 2010, the UK has had £300 billion of public and private investment in low-carbon sectors. Since I took office in September, we have put in place new policies and signed deals with different countries, and the investment has continued to flow, with plans for around £24 billion of new investment in low-carbon sectors announced by the private sector.
Andrew Jones
I thank my right hon. Friend for that answer. Harmony Energy based in Knaresborough opened Europe’s largest battery farm in Yorkshire in 2022. It has raised the issue of connectivity challenges being a blockage to investment, so I welcome the connections action plan, which aims to cut connection times by up to 90%. Battery farms are critical for energy retention and storage, and are particularly helpful for renewables, so may I ask my right hon. Friend for an update on how the plan is being implemented?
Claire Coutinho
We have set out the most radical reforms to the grid since the 1950s. As the action plan sets out, we are taking action with Ofgem and network companies to accelerate those really important network connections. Network companies are offering earlier connection to battery storage and generation projects. For example, 10 GW of battery storage projects are already being offered connection dates to the transmission network that are on average four years earlier than was originally agreed.
Jack Brereton
The UK’s ceramics sector has invested heavily in energy efficiency technologies, and it is committed to going further, but many of the alternative green technologies are not yet viable, and there are serious risks that too stringent net zero targets will result in carbon leakage, and in offshoring an industry and skilled jobs to countries that have a far worse environmental record. Will my right hon. Friend look seriously at exempting the ceramics sector from the emissions trading scheme, to give the sector the breathing space that it needs to invest?
Claire Coutinho
I commend my hon. Friend’s unwavering commitment to advocating for the ceramics sector in his constituency. The UK Government remain steadfast in safeguarding sectors deemed at risk of carbon leakage, and I strongly encourage the ceramics sector in his constituency to actively participate in the consultation on free allocation policy, which is open.
Caroline Lucas (Brighton, Pavilion) (Green)
A new report from the Green Finance Institute and the Institute for Public Policy Research notes that a lack of public investment and strategy is holding back progress on unlocking private investment, and that the chopping and changing of policy pathways has damaged investor confidence. The Secretary of State likes to say that she has a clear strategy, so will she tell investors what it is? Will she call on the Chancellor to deliver the scale of public investment that we so urgently need to restore investor confidence and lift the UK off the bottom of the G7 league table for private investment, where we currently languish?
Claire Coutinho
I thank the hon. Lady for that question, but I am surprised that she did not welcome the recent news that the UK was the first country in the G20 to halve its emissions since the 1990s, as I know that subject is dear to her heart. As I have said, in 2023, the UK saw around £60 billion of low-carbon private and public investment. We got that extraordinary success by encouraging private investment. Whether through the contracts for difference scheme, our new policies on capital allowances, or the effect of the green industries growth accelerator on the supply chain, the UK is doing everything it can to attract investment, and that is exactly why we have made those achievements.
Kirsten Oswald (East Renfrewshire) (SNP)
Last week, the Scottish Government announced £24.5 million of public investment in a new cable factory, which will attract a further £350 million of inward investment. Does the Secretary of State agree that the best way to increase private investment is for the Government to increase public investment, to signal that the UK is open to green investment? Should not the UK Government therefore invest at least £28 billion a year, so that we can maximise private investment, and so that economic growth from the green transition is also maximised?
Claire Coutinho
As I said, our record on net zero investment is incredibly strong. In fact, I believe the CBI had a report out this morning showing that our net zero sectors have been growing by 9% in the last year. We have set out plans for further investment, whether that is in grid connections, supply chain investment through our Gigafund, or reforming capital allowance. All those things, and not public sector investment alone, attract private investment to this country.
Sarah Jones (Croydon Central) (Lab)
This Government are locked in a doom loop of inertia, and everyone is talking about it. Just this week, the National Infrastructure Commission said that the Government are taking too long, need to move faster, and that greater urgency is required. The CBI report that the Secretary of State mentioned says that
“strong future growth from green businesses is being put at risk”.
Labour’s national wealth fund will crowd in private investment and create thousands of good jobs for plumbers, engineers, electricians and welders. Is blowing our advantage and losing the race for the industries of the future part of the Government’s plan, or do they just not have one?
Claire Coutinho
I thank the hon. Lady for having the chutzpah to attempt that question. If she would like to talk about uncertainty on investment plans, she need only look at those on the Benches behind her, who have performed the most extraordinary flip-flop on that. We have delivered the second highest cumulative amount of recorded low-carbon investment across Europe over the past five years.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Elliot Colburn (Carshalton and Wallington) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
Ofgem’s new price cap means that from April, the average bill is set to drop by £238. This shows that our plan is working: we have halved inflation and energy prices are at their lowest level in two years. Alongside that, we have taken the number of homes that are well insulated up from 14% in 2010 to 50% now. We have recently set out plans to help more customers access smarter energy tariffs, which could save them up to £900 a year.
Alyn Smith
I am grateful for the answer, but one thing my constituents in Stirling do not understand is electricity standing charges. As we have heard, according to Ofgem’s figures, they have rocketed by 138% from £90.84 in 2021-22 to £216.23 in 2023-24. Ofgem has issued a call for evidence, which is to be welcomed, but Ofgem is clearly not fit for purpose on this. Does the Secretary of State agree that it is high time the UK Government stepped in?
Claire Coutinho
The hon. Gentleman is right that Ofgem regulates standing charges and has issued a call for evidence. I think about 40,000 people have given input, and we look forward to seeing the results. However, if he was really worried about the cost of living for families in the country, the SNP would not have taken taxes in Scotland to the highest level in the UK.
Elliot Colburn
The fall in the energy price cap is certainly welcomed by Carshalton and Wallington residents, as is the support for households, but many small and medium-sized businesses in my constituency are still struggling to absorb higher costs. Will the Secretary of State outline in a bit more detail the support that those businesses can access to help with energy bills?
Claire Coutinho
I thank my hon. Friend for recently welcoming me to Carshalton and Wallington. Wholesale energy prices have fallen significantly since last winter, but we are committed to supporting businesses with their energy bills. Last winter alone, we delivered about £7.4 billion to support businesses, covering nearly half of many businesses’ wholesale energy costs. We are continuing the energy bills discount scheme to support eligible businesses with high energy costs until they can take advantage of lower wholesale prices.
Simon Baynes (Clwyd South) (Con)
The Secretary of State for Energy Security and Net Zero (Claire Coutinho)
A lot has happened since I was last at the Dispatch Box. Not only have energy bills fallen to their lowest level in two years—welcome news for families up and down the country—but Britain has become the first major economy to halve our emissions, which is a huge milestone on our journey to net zero, our Offshore Petroleum Licensing Bill has completed its Commons stages, and we are supporting the North sea by protecting 200,000 jobs and using our own gas to heat our homes.
I have signed a new partnership with Canada on fusion energy, which is a technology that could give us limitless energy and one on which Britain is leading the world. We have confirmed the UK’s departure from the energy charter treaty, which was holding back our transition to cleaner, cheaper energy. We have launched a consultation on smart energy tariffs, which could see £900 taken off people’s bills, and today we host our hydrogen investor forum, announcing eight successful projects to make low-carbon hydrogen, with over £27 million of Government support.
Simon Baynes
Residents in Esclusham in my constituency are alarmed by Innova’s plans for the UK’s largest lithium-ion battery storage facility near Bersham. Can my right hon. Friend give any reassurance about the safety of this technology to my constituents, who are concerned about the dangers of pollution, given the noise emitted by such equipment, and by reports of similar facilities elsewhere exploding, catching fire and emitting toxic fumes?
Claire Coutinho
Electricity storage allows us to use energy more flexibly and to minimise energy bills. Grid-scale lithium-ion battery energy storage systems are covered by a robust regulatory framework that is principally over- seen by the Health and Safety Executive. Planning guidance encourages developers and local authorities to consult relevant fire and rescue services on aspects such as location, ahead of any planning decisions being made.
Dave Doogan (Angus) (SNP)
Some 23% of households in Scotland are living in extreme fuel poverty. Energy debt across the United Kingdom has reached £3.1 billion. Age UK estimates that, had the UK Government implemented a social tariff this winter, 2.2 million households would have been lifted out of poverty. The latest costs of unpayable energy debt have once again been heaped on to ordinary taxpayers by Ofgem through the unit rate. What assessment has the Secretary of State made of how much energy debt could be reduced by through the introduction of a social tariff to mitigate totally unaffordable energy bills?
Claire Coutinho
The fact that energy prices are at the lowest level in two years is good news for families up and down the country. We have put in place support, including a package of more than £104 billion to support families—that is £3,700 per household on average. As part of that, we have made £900 cost of living payments to help people in the last year.
Kevin Foster (Torbay) (Con)
Edward Miliband (Doncaster North) (Lab)
Last September, the Energy Secretary claimed she was lifting the onshore wind ban, but in the whole of 2023 and so far in 2024 there have been zero applications for new onshore wind farms designed for domestic electricity supply in England. She said that her decision would speed up the delivery of projects. Why does she think it has not worked?
Claire Coutinho
Let me be clear about our record on onshore wind. Energy production has quadrupled since 2010, when we had 3.9 GW of onshore wind, to 15.4 GW in 2023. We have connected the second highest amount of renewables anywhere in Europe, whereas the right hon. Gentleman’s plans have been widely discredited by industry and would deter billions of pounds of investment in clean energy.
Edward Miliband
The right hon. Lady did not answer the question. I will tell her why it has not worked: because she has left a uniquely restrictive planning regime in place for onshore wind. Her failure is costing families across this country £180 a year on their bills. We know that her policy has failed. She could dump the ban at the stroke of a pen. If she is vaguely serious about clean energy, why does she not face down the headbangers on her Back Benches and lift the ban?
Claire Coutinho
As I said, we have connected the second highest amount of renewable electricity anywhere in Europe since 2010. Our record on renewable energy is clear. This is the most extraordinary deflection that I have seen. In recent weeks, the right hon. Gentleman’s leader has shredded his policy platform on energy. To be honest, I feel quite sorry for him, because thanks to the action of his leader and his shadow Chancellor, he has been hidden away, his policy has been ripped up and it is now obvious to everyone that Labour has no plan for energy.
John Penrose (Weston-super-Mare) (Con)
Sam Tarry (Ilford South) (Lab)
Last week the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), shared a platform with an extremist, far-right, climate change-denying conspiracy theorist called Steve Bannon, who claimed that man-made global warming is a “manufactured crisis”. Will the Secretary of State condemn those crazy comments and perhaps distance herself from the former Prime Minister?
Claire Coutinho
I thank the hon. Gentleman for his question. What he should look at carefully is that the UK is the first country in the G20 to halve emissions. If he wants to look at our record, he should look at that. It is absolutely extraordinary that no one on the Opposition Benches has welcomed that news today.
Matt Warman (Boston and Skegness) (Con)
National Grid’s Grimsby to Walpole project will see pylons driven across Lincolnshire’s beautiful landscapes and will take major chunks of some of this country’s best agricultural land out of production. Does the Secretary of State agree that it is vital that residents respond to the consultation that is currently going on, and that National Grid should be told to take into consideration food security as well as energy security when it considers such applications?