Oral Answers to Questions
Ed Miliband Excerpts(2 months, 1 week ago)
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Mr Alex Barros-Curtis (Cardiff West) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
In 12 weeks, this Government have hit the ground running for our 2030 target by ending the onshore wind ban in place for nine years under the Conservative party, consenting to more nationally significant solar projects than in 14 years of the last Government, and overseeing the most successful renewables auction in history compared with the Conservatives’ disastrous auction round that crashed offshore wind. This is a Government in a hurry to meet our mandate from the British people, and we are just getting started.
Dr Opher
I thank the Secretary of State for his really rapid action to reach our 100% sustainable goals by 2030. It has developed a real excitement in this country, and the people I speak to are genuinely behind this action. In Stroud, we are developing a community energy programme of putting solar panels on every school and public building that agrees to it. What steps is he taking to support solar on schools and public buildings, and can he ensure there are no barriers to progress?
Ed Miliband
My hon. Friend is absolutely right about the importance of both rooftop solar and ground-mounted solar. I can tell him that, as part of Great British Energy’s plans, we want to work with local schools, local hospitals and, indeed, local leaders to have a solar panels programme, because this is a way to rapidly decarbonise and to save money off bills.
Mr Barros-Curtis
I thank the Secretary of State for that answer. Cantonian high school in my constituency of Cardiff West will be the first Cardiff school to be operationally net zero in line with Welsh Government standards, while the building work itself will feature a significant reduction in embodied carbon. Fairwater community campus will be a collection of highly energy-efficient buildings that are powered from renewable energy sources, helping Cardiff to deliver on its One Planet strategy, which outlines the city’s ambition to mitigate climate change. Will the Secretary of State join me in celebrating the development, and agree with me that this sort of collaborative vision is required to deliver on our net zero commitments both here and in Wales?
Mr Speaker
Order. Just to help everybody, the hon. Gentleman is meant to go through the Chair, but he was looking at the Secretary of State. As good looking as the Secretary of State is, it is easier if the hon. Gentleman speaks to me, and then I can pick up what he says.
Ed Miliband
Thank you very much, Mr Speaker—and you, too, if I may say so. [Laughter.]
I congratulate my hon. Friend, but particularly the Fairwater community campus on the work it is doing. I think he highlights a very important issue. By helping to decarbonise public buildings, including schools, we help not only to cut our carbon emissions, but, crucially, to save money for those schools that they can then use for frontline services.
Neil O’Brien (Harborough, Oadby and Wigston) (Con)
The previous Secretary of State commissioned the Department to produce a full economic costing for getting to a fully decarbonised renewables-based grid by 2030, as the Secretary of State wants. That is obviously the sort of information that should be placed before the House so that we can have an informed discussion. It may be a good thing to do, but we should obviously know what the cost is. When will the Secretary of State publish that information?
Ed Miliband
Of course, that work is ongoing—in fact, I think the right hon. Lady the shadow Secretary of State has written me a letter about it—and we will be announcing our plans in due course.
Mr Andrew Snowden (Fylde) (Con)
In my constituency, two major offshore wind farms are currently being developed: Morgan and Morecambe. I recently met nearly 100 farmers who will be directly affected by the cabling corridor and the substation plans for the cabling route to connect to Penwortham. I am working with the hon. Member for Blackpool North and Fleetwood (Lorraine Beavers) on a potentially better route through her constituency, which would mean a major economic development revitalising an industrial area that has been looking for a major energy project for some time. We are jointly writing to the Secretary of State, and may I ask if he would commit to working with us on at least assessing that potentially alternative route for the cabling corridor?
Ed Miliband
The hon. Gentleman—and he knows this—will obviously want to stand up for what he sees as the best benefits for his constituency. I will be cautious about what I say, because there are proper procedures for planning decisions, including my quasi-judicial role. I will make this general point to the House, because I think this may well be a recurring theme during questions, but if we want to get off the dangerous exposure to international fossil fuel markets, which we were left with by the last Government, we need to build the grid. Every solar panel we put up, every wind turbine we put up and every piece of grid we build will help to deliver energy security for the British people.
Mark Garnier (Wyre Forest) (Con)
Not only is the Secretary of State a very good looking fellow, but we in this House all know that he is an incredibly hard-working and very open Minister, as indeed are his whole team. So I know that the reason he has not replied to my letter of 11 September is that he and his team will be working their socks off to get a full and open answer to all my questions. He has already made reference to one of my colleagues and said that he will produce “in due course” a full systems cost analysis. May I stress that it is incredibly important that we in this House have that systems cost analysis as soon as possible, so that not only can we analyse his ambitious plans for carbon-neutral targets, but we can also explain to our constituents exactly how much it will cost them in their bills to deliver his target?
Ed Miliband
Let me tell the hon. Gentleman a little about the situation that we inherited from the last Government, because it is very relevant—obviously, he was not a Minister in that last Government. We inherited a situation where there was no plan: no plan for their target of 95% clean power by 2030, no plan for their target of clean power by 2035, and no plan to avoid a repeat of the worst cost of living crisis in generations. This Government are developing a plan and will publish it in due course.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Paul Waugh (Rochdale) (Lab/Co-op)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
This Government believe that we can only ensure climate security for further generations in the UK if we lead globally. That was the message of the Prime Minister at the United Nations General Assembly with our world-leading 2030 clean power plan, no new oil and gas licences, and playing our part in reforming the global financial system. Next month I will be attending the COP29 talks in Azerbaijan to stand up for Britain’s interests.
Johanna Baxter
It is brilliant to see the Secretary of State commit to putting climate diplomacy back at the heart of Cabinet, and I know he will bring a great amount of experience to that role. Sir David Attenborough has repeatedly warned that our planet hangs in the balance, so will my right hon. Friend explain to the House what he will do to ensure that Britain is once again a main player on the world stage in tackling the climate emergency? Will he meet me and representatives from my constituency of Paisley and Renfrewshire South to discuss the work that they are doing on rewilding, in an effort to play their part in tackling the climate emergency?
Ed Miliband
It sounds like my hon. Friend’s constituents are doing important work. She is absolutely right. The last Government used to say that we have only 1% of global emissions, as if that was a sort of excuse for inaction on the world stage. We see it differently. We see that only by leading at home can we provide the platform to lead internationally. This Government have in a few short months put Britian back on the world stage on climate, and we will be working with our best endeavours to ensure that we tackle the situation we have inherited—I am afraid the world is miles off track for keeping global warming to 1.5°.
Mr Speaker
Neatly done, although it was a little long. Come on Secretary of State.
Ed Miliband
My hon. Friend did very well, and I agree with him. Part of the problem with the last Government—I do not doubt that there were people making good endeavours—is that when we do something different at home to what we preach internationally, such as say we are going to power past coal by opening a new coalmine, people say, “Well, you are saying one thing and doing another.” Consistency is the absolute foundation for global leadership.
Paul Waugh
I welcome the Secretary of State’s commitment to our international obligations, whether that is clean power lines or our own strong domestic climate policies that will help areas such as Rochdale, with billpayers in recent years facing the grim possibility of high bills. This will make a huge difference, and the obvious comparison with the previous Government is there for everyone to see. Will he outline to the House what further steps he is taking on the global stage at both COP29 and COP30 to increase our global reach on climate?
Ed Miliband
I will say one thing in particular to my hon. Friend. The Prime Minister said at the United Nations General Assembly that we will be unveiling our nationally determined contribution—our target for 2035—at COP29. We are doing that because the danger is that the world settles into a low-ambition equilibrium when it comes to tackling these issues. By having a 1.5º aligned target, we hope to set a good benchmark and a good example for the world.
Munira Wilson (Twickenham) (LD)
The Climate Change Committee has said that there should be no more than a 25% increase in airport capacity, compared with 2018 levels, if we are to achieve net zero by 2050, yet current planned and recently approved airport expansions will allow for a 50% to 70% increase in demand. Can the Secretary of State explain why Ministers in the Department for Transport are considering giving a green light to a third runway at Heathrow? How on earth will that allow the country to meet its net zero targets?
Ed Miliband
The beauty of carbon budgets and the system that was introduced when I was last in government—to be fair, it was carried on by the previous Government of the past 14 years—is that they do at least in theory constrain what the Government do. It is very important that we take carbon budgets seriously in our plans. The plans we inherited from the last Government were way off track for meeting our carbon budgets, which is what this Government will do.
Jim Shannon (Strangford) (DUP)
I very much welcome the Secretary of State to his place. Climate change is real; it is not a myth. The quicker that everyone understands that, the better. Can I pose a question to the Secretary of State on rewilding? There are some suggestions among experts that rewilding by planting trees on moor and heather might not be the most constructive way of utilising rewilding. Has he had an opportunity to look at the issue of rewilding on moors and heather, which I understand that many experts think is detrimental?
Ed Miliband
I take the hon. Gentleman seriously on these issues, and I undertake to write to him or to have one of the Ministers write to him. I make the general point that rewilding and nature-based solutions are an essential part of tackling the climate crisis.
Tim Farron (Westmorland and Lonsdale) (LD)
International trade deals are a great way of using our leverage to make sure we advance our agenda on things such as tackling climate change. The previous Government let Britain down massively, conducting trade deals that let us down on farming, on food production and especially on climate change. Will the Secretary of State ensure that this Government use the creation of new trade deals to advance our agenda on tackling climate change?
Ed Miliband
Yes, and that is something I am already discussing with my right hon. Friend the Business Secretary.
Ed Miliband
All the proper processes were followed by the Foreign Office, which was in charge of the appointment. I have to say that this is a very sad reflection on the Conservative party. Rachel Kyte is an esteemed person who is recognised for her leadership, and all the Conservatives can do is fling around baseless allegations.
Mr Gideon Amos (Taunton and Wellington) (LD)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
After nine years of the disastrous, bill-raising ban on onshore wind in England, this Government overturned the ban in our first 72 hours in office. We have also set up the onshore wind taskforce to restore the pipeline of projects destroyed by the last Government. In the recent renewables auction, almost 1 GW of onshore wind was secured at prices that make it among the lowest-cost power sources to build and operate.
Mr Amos
When will the Secretary of State bring forward proposals for community benefit for those living alongside wind and solar farms to greater incentivise the permitting of wind and solar farms, including Ham solar farm in my constituency? Will that include a minimum level of compensation for the communities affected?
Ed Miliband
I am sympathetic to what the hon. Gentleman says. We are working on proposals on community benefit. I believe that when communities host clean energy infrastructure, they should automatically get benefit from it. I am also sympathetic to what he said about minimum levels of support. We are discussing that with industry at the moment and will come forward with proposals soon.
David Pinto-Duschinsky (Hendon) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
As well as our measures on onshore wind, solar and renewables, this Government have begun legislating for Great British Energy and setting out our plan for proper standards for private and social renters to take 1 million families out of fuel poverty, and on Friday we announced deals to kick-start Britain’s carbon capture industry. All of this will deliver our mission to make Britain a clean energy superpower. It is right for bills, right for energy security, right for jobs and right for climate leadership.
Tracy Gilbert
I welcome the actions outlined by my right hon. Friend, particularly the recent announcement that GB Energy will be headquartered in Aberdeen, with satellite offices in Edinburgh and Glasgow. Can he outline the role that he expects the satellite offices to take? Given the investment already under way in the port of Leith for a number of renewable companies, as well as the prospects for the supply chain and manufacturing, will he consider Leith as the location for the Edinburgh site?
Ed Miliband
My hon. Friend is absolutely right to draw attention to our announcement on Aberdeen as the headquarters of Great British Energy and the important role that it will play, and also to the importance of the satellite offices. I know from my visit to her constituency of the huge potential of her area on these issues, and we want to drive jobs throughout the supply chain through Great British Energy.
Claire Coutinho (East Surrey) (Con)
The Secretary of State promised in the general election to cut everyone’s bills by £300 by 2030—a pledge he will not repeat now that he is in office. In fact, one of his first acts has been to snatch the same amount away from millions of pensioners in poverty. The right hon. Gentleman likes to preach, to politicise and, dare I say it, to patronise, but I have one simple question for him. To the millions of pensioners who are worried about their heating bills this Christmas, will he apologise?
Ed Miliband
The people who should be apologising are the last Government, who left this country in a total mess—a £22 billion black hole. I have to say to the right hon. Lady that she does have a brass neck. She said of the right hon. Member for North West Essex (Mrs Badenoch), whom she is backing in the leadership contest, that she “tells the truth”, and what did the right hon. Member for North West Essex say? She said:
“I have people in my constituency telling me that they don’t need the winter fuel payments…Why do we not have a…mechanism for means-testing?”
That is her position.
Claire Coutinho
There we have it: no apology; no recognition that it is the right hon. Gentleman’s Government’s decisions that are going to leave pensioners in the cold this winter. He has to acknowledge this: from the trade unions to the CBI, from blue Labour to Blairites and from the left to the right of his party, people are sounding the alarm that his ideological approach will see jobs lost and bills go through the roof. Even his old pal Ed Balls does not think that GB Energy is going to deliver the green transition, and I read this morning that the Prime Minister’s brand-new chief of staff is a sceptic of the Secretary of State’s approach. The Secretary of State is increasingly isolated in his party, so when will he do the decent thing and set out the full systems cost of his approach, so that the British public can see what he is going to do to their bills?
Ed Miliband
Oh dear, oh dear. The truth is that after three months of this Government, people have breathed a sigh of relief that there is finally a Government with a plan for the country. [Interruption.] I think the right hon. Lady should listen to what her own ministerial team has been saying about her. The former networks Minister has said that their infrastructure approach is hopeless. The former Energy Minister says that the onshore wind ban was “always mad”, and Lord Callanan said that the right hon. Lady had kicked the solar consents “into the long grass”. If I were her, I would be hoping for just one thing from the next Tory leader: a shadow Cabinet reshuffle.
Danny Beales (Uxbridge and South Ruislip) (Lab)
Sir John Whittingdale (Maldon) (Con)
Ed Miliband
I agree with the right hon. Gentleman. Nuclear is an essential part of the energy mix. We are mainly going to have a renewable system, but nuclear is an essential accompaniment. I fully support all the projects he mentions.
Alistair Strathern (Hitchin) (Lab)
Claire Young (Thornbury and Yate) (LD)
Ed Miliband
The hon. Lady raises a question about the problems of grid connection that is familiar to many Members. We are building on work done by Nick Winser, the former electricity networks commissioner, and we want to go further to tackle the problem of grid connections once and for all.
Tom Rutland (East Worthing and Shoreham) (Lab)
Charlie Dewhirst (Bridlington and The Wolds) (Con)
Ed Miliband
The hon. Gentleman raises a very important issue that I am afraid was not solved by the last Government. We are working at pace with National Grid, and I am sure the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), will be happy to talk to him further about the work we are doing.
Zöe Franklin (Guildford) (LD)
Ed Miliband
The hon. Lady raises the important issue that, as a country, we are massively underpowered on community energy. As part of the GB Energy local power plan we will be trying to change that, learning from countries such as Germany and Denmark, which do much better than us. We will certainly look at the issues she raises.
Euan Stainbank (Falkirk) (Lab)
The clean power by 2030 mission shows the clear intention of this Government to get on with the just transition. Energy workers in Falkirk, Grangemouth and across the central belt are rightly concerned about jobs. Between 2013 and 2023, under the previous Government, jobs in the UK oil and gas sector halved. Unfortunately, some of the Opposition parties have opposed the stream of funding for clean infrastructure and jobs of the future that will come from an increase in the energy profits levy on the record profits of oil and gas giants. Does the Secretary of State agree that it is time Opposition parties started putting their own plans forward on how they would get on with the just transition and deliver clean energy jobs at a critical time for workers and the climate?
Ed Miliband
My hon. Friend raises the important issue that what will define the future for North sea workers is whether there is a plan for future jobs in offshore wind, carbon capture and hydrogen. There was no plan from the previous Government; this Government are absolutely determined to ensure a just transition for those workers, using the power of Government and a proper industrial policy to make it happen.
Dr Luke Evans (Hinckley and Bosworth) (Con)
On petrol prices, for the past 11 years the Government froze fuel duty; they cut it in 2002 and then froze it again. The Government instructed the Competition and Markets Authority to carry out a review, and we came up with the pumpwatch scheme. A consultation was undertaken in January, but when I wrote to the Government in September to ask about its results, they said they were looking at it and would consider it in due course. Is the scheme a priority for the Government? If not, in what other ways will they ensure petrol prices are kept low at the pump? Are they going to freeze fuel duty?
Ed Miliband
I will not comment on the Budget, obviously. We are very sympathetic to pumpwatch—it is important that there is a fair deal for consumers at the pump.
Steve Race (Exeter) (Lab)
Exeter city council has worked hard to install solar panels on council homes to ensure that social tenants can benefit from lower bills and participate in the green transition. Can the Minister set out what more we can do to ensure that all tenants benefit from new green technologies?
Ed Miliband
My hon. Friend raises such an important issue. Across the House, we can have different views on ground-mounted solar, but we need to do more on rooftops and to ensure that tenants, for example council tenants, benefit from such technologies. That is a huge priority for us and we are working on it with colleagues in the Ministry of Housing, Communities and Local Government.
Mr Gregory Campbell (East Londonderry) (DUP)
What discussions has the Secretary of State had with the Scottish Government regarding the major planning application for an offshore wind farm between Scotland and Northern Ireland, which may well have significant implications for the Giant’s Causeway world heritage site?
Ed Miliband
The hon. Gentleman will understand that I have to be careful in what I say about planning issues, but he should rest assured that I have frequent conversations with my counterpart in the Scottish Government and, no doubt, that is one issue we will be discussing.
Matt Western (Warwick and Leamington) (Lab)
Warwick and Leamington must be one of the sunniest places in the United Kingdom given the flurry of applications we have had for solar farms. There is a “loss of amenity” caused by one application, but if that community were prepared to welcome onshore wind turbines, of which we have none in Warwickshire, rather than a solar farm, would the Secretary of State or the Minister agree to support that? Will they meet me to discuss the issue?
Ed Miliband
Every planning application and development consent order is assessed on its merits. Importantly, the Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Streatham and Croydon North (Steve Reed), is polishing a land use framework, which has long been needed in this country. It will set out the balance between food security, the use of renewable energy, the restoration of nature and the role of farming. I hope that will help with some of the issues that hon. Members are facing.
Priti Patel (Witham) (Con)
The Secretary of State and the Under-Secretary of State, the hon. Member for Rutherglen (Michael Shanks), have spoken passionately about the need to upgrade the national grid, but do they recognise the concerns of people across the east of England, including in the Witham constituency, about what that means for their local communities? The Under-Secretary has said that he will meet Members of Parliament, but I ask him very politely whether he and representatives and Ministers from the Department will also meet members of the communities that are affected by this matter.
Ed Miliband
I know from the questions that I have received from the Opposition that the right hon. Lady has been a tireless advocate on these issues. I do understand the concerns of local communities about clean energy infrastructure, which is why I am so keen on the idea of community benefit. It is important that communities receive benefit for hosting that infrastructure. We must have a discussion about this matter in the House and across the country. If we are to end our exposure to international fossil fuels and the kind of the cost of living crisis that we have seen over the past few years, which has devastated communities across Britain, this infrastructure does need to be built.
Mike Amesbury (Runcorn and Helsby) (Lab)
Last week’s announcement on carbon capture and hydrogen in my constituency demonstrates that we now have a Government of substance, not of hollow slogans. What discussions have the Secretary of State and Ministers had with the trade unions to ensure that we build those facilities with unionised labour?
Tom Gordon (Harrogate and Knaresborough) (LD)
The Institution of Civil Engineers has called for a spatial energy plan to utilise new and emerging technologies to facilitate future net zero infrastructure planning. Will the Government look to bring forward a spatial energy plan and meet me to discuss that?
Ed Miliband
Yes, we will be bringing forward a spatial energy plan. That is one of the responsibilities of the National Energy System Operator. The hon. Gentleman makes an important point: we need a plan for the system. We can have a plan for the 2030 system done by the NESO and, indeed, a wider strategic spatial energy plan, which will be crucial for the country.
Oliver Ryan (Burnley) (Lab/Co-op)
The warm homes plan is excellent and much needed in towns such as mine, but on warm homes grants for insulation, during recess I met a large number of constituents who had been victims of failed insulation and cowboy workmanship under such Government schemes. Some are living in horrific conditions with useless warranties. Is the Minister aware of their plight? Will she ensure that regulation is strong enough, and will she meet me and victims to make sure that this never happens again?
Carbon Capture, Usage and Storage
Ed Miliband Excerpts(2 months, 1 week ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Thank you, Madam Deputy Speaker. I heard your statement, and Mr Speaker’s earlier.
With permission, I would like to make a statement on the Government’s carbon capture programme. Last week was a historic week for our energy system. On Monday, 142 years of coal-fired electricity generation came to an end, as Ratcliffe-on-Soar power station closed for the last time. I pay tribute to the generations of coal workers, at Ratcliffe and elsewhere, who powered our country for more than a century, and to power station workers; we owe them a huge debt. I am sure that sentiment is shared across the whole House. As one era ends and we begin the next stage of Britain’s energy journey, the Government are determined to create a new generation of good jobs in our industrial heartlands. On Friday, we began a new era, as Government and industry agreed the deals that will launch Britain’s carbon capture industry.
This has been a long time coming. I was proud, as Energy Secretary, to kick-start the process of developing carbon capture way back in 2009—some hon. Members were then still at school, and I am much greyer now—with a £1 billion competition. In 2011, that programme was cancelled by the coalition Government. In 2012, a new competition was announced, and in 2015, it too was cancelled. When we came to office, we inherited an in-principle aspiration to go ahead, but the very significant Government funding required had not yet been accounted for, so under the last Government we had fits and starts, dither and delay.
By contrast, just three months since we came to office, this Government have turned promise into reality. I can confirm to the House that we have agreed commercial terms, and £21.7 billion of funding over 25 years for five carbon capture, usage and storage projects across two clusters: HyNet in the north-west, and the East Coast Cluster in the north-east. This announcement will enable the construction of two transport and storage networks that will underpin this new industry. The highways for carbon capture and the deals we have agreed will also kick-start development of Net Zero Teesside, the world’s largest gas with CCUS plant, and—these are both in Ellesmere Port—Protos, a new CCUS energy from waste facility, and EET Hydrogen, the UK’s first large-scale blue hydrogen project, which is the cleanest in the world. They will crowd in £8 billion of private investment across the two clusters, creating 4,000 jobs in our industrial heartlands and building an initial capacity to remove over 8.5 million tonnes of carbon emissions each and every year. I pay tribute to the six new Labour MPs in Teesside and colleagues across the north-west who have been brilliant champions for those projects. This is just the start; we will have more to say in the coming months about carbon capture sites in Humberside, Scotland and elsewhere around the country.
This investment is the right thing to do for Britain. CCUS will unlock the decarbonisation of hard-to-abate sectors, from chemicals to cement; enable the production of low-carbon hydrogen; and, by capturing emissions from gas-fired power stations, play an important role, alongside renewables and nuclear, in delivering clean power by 2030 and beyond. That is why experts in bodies ranging from the Climate Change Committee to the International Energy Agency are clear that carbon capture is critical to our meeting our climate commitments. There are those who doubt that. To them I quote James Richardson, the acting chief executive of the Climate Change Committee, who said on Friday quite simply:
“We can’t hit the country’s targets without CCUS”.
The IEA, in a report from 2020 that I very much recommend to right hon. and hon. Members, said:
“Reaching net zero will be virtually impossible without CCUS”,
pointing to “heavy industries” that
“account for almost 20% of global CO2 emissions today”.
To those who doubt whether the technology can work, I point out that it has been operating safely for decades in Norway and the US.
Last week’s announcement puts the UK on the path to leading the world in deploying carbon capture at scale. Being an early mover in this technology offers huge economic and industrial benefits for Britain. The North sea means that we have the chance to lead; it gives us the capacity to store 200 years of our carbon emissions, has existing infrastructure that can be repurposed, and allows us to use the talents and experience of our highly skilled oil and gas workforce.
Over the last few years, around the world we have seen the race for the jobs and industries of the future accelerate. For too long, Britain has opted out and lost out. No longer. We will harness Britain’s geology, know-how and expertise to be a world leader in this technology that will define the 21st century, building an industry that could support up to 50,000 jobs by the 2030s and using every tool at our disposal to seize the opportunities for Britain, with a proper industrial strategy and a commitment—which is absolutely crucial—to using public and private investment to build the future that our country deserves.
That is all part of the action of a Government who, in the last three months, have shown that we are in a hurry to deliver our mission to make Britain a clean energy superpower. We have lifted the onshore wind ban, consented to record amounts of nationally significant solar, launched Great British Energy, delivered the most successful renewables auction in British history, and set out our plans to lift more than a million households out of fuel poverty. We are moving apace, both because of the urgency of the challenges that we face and because of this Government’s determination to win for Britain. Last week marked the end of one chapter in our country’s energy story and the start of a new one—a new era showing that we can decarbonise and reindustrialise, a new era of clean energy jobs and investment in our industrial heartlands, and a new era of climate leadership. I commend this statement to the House.
Claire Coutinho (East Surrey) (Con)
I thank the Secretary of State for giving me advance sight of his statement. While I welcome the news today, I am saddened, if not surprised, that he has not had the grace to acknowledge the work of the last Government in getting us to this place. I know that his opinion is not that of the many partners who have come together to get this project over the line, and it does a huge disservice to his officials, who have worked so incredibly hard over the last couple of years to get us here. As far as I can see, the only positive investments that the Labour party seems to have made in its first 100 days—the Blackstone artificial intelligence data centre in Northumberland, the sixth assessment report and now this—were negotiated under the Conservatives. This is what the right hon. Gentleman’s party has turned into reality: it has crashed business confidence, and overseen £666 million of assets from UK-focused equity funds fleeing the country. No wonder it has had to have a change of management.
In 2022, in the Energy Security Bill, we set out £1 billion of investment and the business models to support the CCUS market. Our aim was to have four industrial clusters by 2030. I must pay tribute to all who have worked together on those plans, including BP, Equinor, Eni, and all those involved with HyNet and the East Coast Cluster.
The brilliant Mayor of Tees Valley, Ben Houchen, has been a leading light in this regard for many years. I noted that the Secretary of State did not mention him, which was pretty graceless, but I am sure that he would like to welcome his work. I must also mention the former Chancellor, my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt), who first announced Government support for carbon capture technology amounting to £20 billion last year. That, ultimately, was the breakthrough step that got us here.
The Secretary of State says that CCUS was not funded. Let me remind him of the extent to which he is resting his laurels on a set of draft policy statements for nuclear from back in 2009 that had no Treasury funding attached. I had agreement that at least £20 billion would be spent following the next spending review. The Secretary of State is a former Treasury spad, so he knows what that means. As always, it is the cheap politics that he reaches for. He is, I am afraid, the ultimate career politician. In fact, the funding that we had announced, which would run for 20 years, was about £200 million more per year than what he has set out today. Can he confirm that the projects have not been scaled back, and if they have been, will he tell us where the losses will be?
We have also had no word on the track 2 clusters, Acorn and Viking, on which we were due to make progress over the summer; they were conspicuously absent from the Secretary of State’s statement. Many people will be deeply concerned, so can he update the House on those two projects? More widely, while his announcement rightly drew attention to the importance of British industry, both the TUC and the GMB have warned repeatedly about his net zero plans and what they will mean for British industry. In the words of Gary Smith, the leader of the GMB, the Secretary of State’s approach has been to export jobs and import virtue.
Let us look at what has happened on Labour’s watch. At Grangemouth, 400 jobs are at risk, with nearly 3,000 potentially affected. At Port Talbot, 3,500 jobs are under threat, and at Scunthorpe, there is the potential for 2,500 job losses before Christmas. Moreover, Labour are putting 200,000 jobs at risk through their plans to ban new oil and gas licences and to make the UK regime the most punitive fiscal regime for the sector anywhere in the world. When will the Secretary of State publish an assessment of the impact that his plans for the North sea will have on jobs, and on investment in clean energy? After all, this carbon capture investment today would not be possible without Eni, Equinor and BP—companies using the stable finances of their oil and gas businesses to invest in clean energy.
The Secretary of State has talked about the importance of UK decarbonisation in tackling climate change, but will he acknowledge that his plans to target UK production will not mean that we use less? They will just leave us importing more from abroad—importing more oil and gas from the United States and the middle east, and importing more steel from China, which is still 60% powered by coal. Will he acknowledge that both those developments will actually increase global emissions? It would be carbon accounting gone mad. It might leave some in the green lobby cheering at our reduced emissions, but overall there would be more carbon in the atmosphere and fewer jobs here in Britain. Is the Labour party seriously going to be responsible for the end of steelmaking in the UK, with the added cost of the loss of more than 10,000 jobs in our most left-behind communities? The Secretary of State must acknowledge that a better balance has to be found.
The Secretary of State has still made no comment on, and no apology for, promising the British public at the general election savings of £300 on their energy bills by 2030. Will he finally give an answer to his Back Benchers, the House and all our constituents, and explain what has happened to that pledge?
Ed Miliband
I know that the right hon. Lady is in a difficult position, and it rather showed today. Let us be honest: the truth is quite painful for her. She failed, as Energy Secretary, to get carbon capture over the line, year after year—well, to be fair, she was only in the job for 10 months, but certainly month after month. The funding was never secured, because there was not the political will from the Chancellor or the Prime Minister. We have seen a long line of 20 Energy Secretaries and 14 years of failure. I must give the right hon. Lady her due: she did try, I am sure; but there was nothing but dither and delay. When we came to office, the funding had not been accounted for as part of a spending review; it simply was not there. There was just a vague promise. Now it is quite difficult for the right hon. Lady, and perhaps we should have a little sympathy for her, because she has had to come to the House and see what a Government actually delivering looks like.
Let me deal with the right hon. Lady’s questions in turn. She had the brass neck to suggest that the problems at Grangemouth and Port Talbot were somehow due to the negligence of this Government. Let me tell the House about Grangemouth. I came to office with the closure of Grangemouth already announced and likely to happen. I have probably had more conversations with my counterpart in the Scottish Government than Tory Ministers had in 10 years, because they just were not interested. We should be extremely angry about that. So what did we do? We funded the Willow project, which the Tories did not fund. We added to the growth deal, which they did not do. We said that we would have a national wealth fund with the potential to fund Project Willow. We had none of that from the right hon. Lady. She just was not interested. She just did not care; that is the truth of the matter. Of course it is ideological, rather than accidental. [Interruption.] Yes, it is. A bit of honesty from the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie)! I noted that he was very honest about the right hon. Lady at the party conference. The truth is that the Tories did not have an industrial strategy because they do not believe in an industrial strategy.
Let me deal with the rest of the right hon. Lady’s nonsense. I am very pleased that she is interested in Gary Smith, because he has said:
“This is a serious step in the right direction and a welcome investment in jobs and industries after years of neglect under the previous administration.”
That is the reality. As for the other stuff that the right hon. Lady said, I think that she has a decision to make. She began her political career in the Conservative Environment Network, and she has ended up backing a net zero sceptic for the Tory leadership. I think it is a little bit sad. She should take some time to reflect on that, and on the utter contrast between her failure and this Government’s delivery.
Madam Deputy Speaker
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
Unlike the shadow Secretary of State, I am very pleased that the Secretary of State has announced jobs in Teesside—jobs from which my constituents in the north-west of England will potentially benefit. I am also very pleased that we have a Government who are committed to an industrial strategy, and who believe in Government working in partnership with business.
The Secretary of State mentioned just how important it is that we have this technology if we are to decarbonise; he quoted James Richardson in making the case. It will be crucial for the abatement of heavy industries such as chemicals, glass—the Secretary of State went to visit a glass factory in the north-west on Friday—and cement, but it will also be crucial for hydrogen production, for the new gas-fired power stations and, indeed, for converting waste into energy. How long does he think we will need this technology for the abatement of heavy industry, and how long does he think we will need it for hydrogen production and production from gas?
Ed Miliband
I thank my hon. Friend for his question; he makes a really important point. Some people are sceptical about the use of carbon capture and storage. The truth is that for hard-to-abate industries—cement, for example—unless we have CCS technology, either there will be no future for these industries or they will not be able to decarbonise. Yes, it is an investment, but it is absolutely crucial, and I am struck by what the IEA said. We are talking about probably 20% of industry, and we are doing the right thing for Britain and setting an example to the world.
I always say on these occasions that, when it comes to blue hydrogen and gas with CCUS, we need all the technologies at our disposal on this decarbonisation journey. It is going to be a primarily renewables-based system, but nuclear has an important role and we need dispatchable decarbonised or low-carbon generation as well. All these things have a role, and the pathway will become clearer over time, but this issue is so urgent that I want to have all the technologies at our disposal.
Ed Miliband
May I begin by welcoming the hon. Lady to her place, and thanking her for the tone and substance of her remarks? She is right to underline the fact that we are marking a new era but also marking the passing of an era, and it is right to pay tribute to all the people who worked in our coal-fired power stations and, indeed, who worked underground to dig coal for our country. It is a big moment of change and the passing of an era.
On the hon. Lady’s broad points about CCS, my philosophy is that we want zero-carbon power where possible, but we also need carbon capture, particularly for hard-to-abate sectors and so that we can have not unabated gas, but gas with CCS or hydrogen power. She raises the question of cost. Imagine if we had had this conversation 15 years ago, when I was Secretary of State and much younger—15 years younger, to be precise. [Interruption.] Yes, I am good at maths. Some people were saying at the time, “Why are you subsidising offshore wind? It can never be competitive with fossil fuels.” Now, it is among the cheapest technologies to build and operate. That is what deployment does for us, and that is what the combination of public and private sectors working together does for us. Yes, there is an investment here, but a far-sighted, forward-looking Government have to make such investments, and I welcome the hon. Lady’s support.
Barry Gardiner (Brent West) (Lab)
I had rather hoped that my right hon. Friend was going to start his statement by saying, “As I was saying before I was so rudely interrupted—”. I have waited so long to hear a Secretary of State make such announcements from the Dispatch Box, and I am delighted. However, my right hon. Friend knows that carbon capture technologies reduce the energy intensity of fossil fuels by up to 25%, which makes such electricity much more expensive than that produced from renewables. Can the Secretary of State confirm that CCUS will be used not simply to allow the continued extraction of fossil fuel for our power sector, but only for the hardest-to-abate heavy industries and for the production of green hydrogen, thereby keeping domestic fuel bills low and delivering on this Government’s commitment to decarbonise our power sector by 2030 through much cheaper renewables and nuclear, not more expensive gas with CCUS? Finally, may I caution him against swallowing too much of the hype around blue hydrogen?
Ed Miliband
I thank my hon. Friend for his question; he speaks with great knowledge and expertise on these issues. He is absolutely right about the hard-to-abate sectors. I say to him what I said to the Chair of the Energy Security and Net Zero Committee, my hon. Friend the Member for Sefton Central (Bill Esterson): there is a role for both blue hydrogen and gas with CCUS, but that is within the context of a primarily renewables-based system that uses nuclear as well. It goes back to the point about needing all the technologies at our disposal if we are to surmount the challenges we face.
Martin Vickers (Brigg and Immingham) (Con)
The Secretary of State will be aware that the Humber area produces the most emissions in the country, and it is vital that we make progress in that region. Some £15 billion-worth of private investment stands ready. The Secretary of State mentioned that there will be a further announcement in the coming months. Could he perhaps advance that as quickly as possible in order that we can take our first steps towards reaching our targets?
Ed Miliband
Let me say to the hon. Gentleman that this is a point of agreement between us. These are very important projects, and I thank him for his question. They were always envisaged as being two tracks, and we inherited a significant degree of delay from the last Government. We want these projects to happen as soon as possible and, as I said in my statement, this is something that we will address in the months ahead.
Brian Leishman (Alloa and Grangemouth) (Lab)
I was happy to hear the Secretary of State’s words last week when he said that industries should not die, and the Government investment in Merseyside and Teesside is most welcome. Can he commit to the same level of bold and transformative Government action to retain the Grangemouth refinery workers’ jobs, as they face the prospect of redundancies and their industry dying?
Ed Miliband
This is something that my hon. Friend and I have talked about. On Grangemouth, we are advancing at speed—in a way that the last Government completely failed to do, because the project had not even started—with Project Willow, which is seeking an industrial future for the Grangemouth site. He has my absolute commitment that we will use every lever at our disposal in Government to try and make this happen. We have a number of levers available to us that the last Government did not have, including the national wealth fund, and we are going to work intensively on that in the coming months.
Sir Julian Lewis (New Forest East) (Con)
The Secretary of State will know that until a few days ago, the Fawley refinery and chemicals complex run by ExxonMobil in New Forest East was planning a major carbon capture project that involved controversial pipelines either over sensitive areas of the New Forest or across the Isle of Wight. ExxonMobil has temporarily pulled the plug on that, but one reason it seems to think it cannot use a sea route, perhaps to feed this in to the North sea outlet for carbon capture and storage, is the absence of purpose-built ships for the safe transportation of liquefied CO2. Will the Secretary of State look into where we are with the development of safe methods of transporting the gas in liquid form by sea?
Ed Miliband
I thank the right hon. Gentleman for his question. I talked to the UK chair of ExxonMobil last week about this issue, and I believe that the Minister of State, Department for Energy Security and Net Zero, my hon. Friend the Member for Croydon West (Sarah Jones), is going to meet him later this week. For the benefit of the House, this was not in either track 1 or track 2—it was part of the Solent cluster—but we want all the projects to go ahead and the Solent cluster has real potential and is an important part of this. The UK chair told me that this temporary pause was certainly nothing to do with the actions of this Government, but, frankly, was to do with the time it had taken the previous Government to get going on this. I undertake to the right hon. Gentleman that we will continue our dialogue with the company about these issues, including on the more technical issues that he is talking about.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
This announcement is fantastic news for the north-east and for the country. It will place us at the forefront of a critical and growing sector, it will help to re-industrialise regions that have been de-industrialised by successive Conservative Governments and it will deliver thousands of well-paid jobs—jobs that people can raise a family on. For the benefit of those with genuine concerns about the feasibility of this technology—as opposed to those playing party politics with innovation or those ideologically opposed to industry—will my right hon. Friend say a little more about the world-leading research and innovation that will carry on alongside this deployment, and particularly about the carbon storage research facility and the work that it will do?
Ed Miliband
My hon. Friend speaks with great knowledge of this subject. She is unusual in this House, in that she is an engineer by background and actually knows about these issues. She is absolutely right about this. Our world-leading scientists and engineers are a crucial part of our playing a world-leading role in this technology. I also say to those who are worried about the risk of this technology that the much, much greater risk is in not acting. The risk before us is the climate crisis that grows every day, and it is the right thing to do to get CCS moving.
Christine Jardine (Edinburgh West) (LD)
I welcome what the Secretary of State said about there being more news to come about Scotland, because the Acorn project is not a track 1 project; it is a track 2 project. The previous Prime Minister visited Peterhead and raised hopes that there might be investment coming there, but then nothing. The Secretary of State also spoke about the great skills that we have in oil engineering. There is possibly nowhere else in Europe, and perhaps the world, that has more of those skills than the north-east of Scotland, so can he tell us how committed the Government are to bringing forward Acorn as quickly as possible?
Ed Miliband
I concur completely with what the hon. Lady says. We are absolutely committed to Acorn; it is very important. We came into Government with track 1 not accounted for, so part of the challenge was getting track 1 over the line because it just seemed so important to send a signal that there was not going to be more of the dither and delay that we had seen. I can absolutely assure her and other Scottish colleagues across the House that this is of fundamental importance to us. It is of fundamental importance for Scotland but also for the whole of the United Kingdom, because we will not be able to surmount the challenges we face simply with track 1 projects.
Matt Rodda (Reading Central) (Lab)
I thank the Secretary of State for his statement today. Could he say a bit more about how this important project will sit alongside other investments in green energy as we move towards the 2030 and 2050 targets? Could he also explain more about the potential for job creation across the country in a wide range of industries and regions?
Ed Miliband
My hon. Friend is entirely right. This is part of a whole set of things this Government are doing, including lifting the onshore wind ban, releasing private investment and dealing with solar projects that had frankly been sitting on desks for far too long, with nearly 2 GW consented. In fact, more has been consented in nationally consented projects in three months of this Government than in 14 years of the last Government. Doesn’t that tell a story about dither, delay and inaction? So my hon. Friend is absolutely right. This is part of a whole series of investments, both private and public, that this Government are unleashing and putting in.
Jerome Mayhew (Broadland and Fakenham) (Con)
I am pleased that there is an announcement on the funding of blue hydrogen at Ellesmere Port, but what about Bacton, the gas terminal in north Norfolk? What are the Secretary of State’s plans to support blue hydrogen projects at Bacton, which would be ideally suited for the southern North sea? Also, having looked at the numbers, which seem a bit light, could he please confirm that it is still Government policy that we should capture and store between 20 and 30 megatons of CO2 by 2030?
Ed Miliband
On the hon. Gentleman’s first point, that is very much part of our plans for the future. On his second point, we will obviously set out all those details in response to the work of the Climate Change Committee. Frankly, one thing that we are struggling with is the delays under the last Government. I have set out the impact of this project and will be setting out the impact of future projects when they are announced.
Lola McEvoy (Darlington) (Lab)
May I put on record my thanks to the Secretary of State and his wider team, who have decided in such difficult economic times to invest in my part of the country? This marks a huge vote of confidence in our local industry leaders and our fantastic regional workforce, and as he said, it has been a long time coming. Does he agree that this carbon capture project will create exciting, skilled jobs and opportunities for people in Darlington and the Tees valley, solidifying a green industrial future for my constituency?
Ed Miliband
I thank my hon. Friend for that question and for her brilliant advocacy on this issue. She raises an important point, which is that people will look at this investment and think that it is a big investment, albeit over 25 years. Is it the right thing to do for the country? Emphatically, yes. It is right for our industries and for the industries of the future, because the transport and storage networks are absolutely crucial, not just for the specific projects I have announced but for future projects, for our security as a country and for jobs in our industrial heartland. I thank her for her advocacy and we will keep moving forward on this.
Dave Doogan (Angus and Perthshire Glens) (SNP)
The Secretary of State says he is absolutely committed to the Acorn project. Well, the way to show that would be to fund it, because yet again the UK Government have failed to announce funding for carbon capture utilisation and storage projects in Scotland. This is a disaster economically, industrially and environmentally. I am sure he will agree that without Acorn, the UK cannot meet its net zero targets and will miss them by some margin. The last Tory Government failed to back this project in Scotland for years, and despite offering change, Labour has done exactly the same thing, following the same path with broadly the same budget and prioritising less developed, less substantial and less deliverable projects in England while offering the Scottish cluster no funding at all to date. People in Scotland remember well how eager the Treasury and the Westminster Government were to get their hands on revenues from North sea oil and gas. When will we see that returned with investment from Westminster into the north-east of Scotland to support the Acorn project?
Ed Miliband
I am sorry about the hon. Gentleman’s tone, but it is entirely predictable. He knows that there have always been two tracks. This Government have moved at speed to fund track 1, and I have made absolutely clear our commitment to Acorn and track 2.
Anneliese Midgley (Knowsley) (Lab)
I welcome my right hon. Friend’s announcement of major investment in carbon capture in our industrial heartlands, including in Merseyside. Knowsley hosts significant industrial capacity and has huge potential to contribute to this. Can the Secretary of State provide details and meet me to discuss how Knowsley will benefit from investment in the thousands of good, secure jobs expected under this scheme?
Ed Miliband
My hon. Friend is entirely right. The challenge for the Government, and for the companies that have won these contracts, is to make sure that we create jobs in the supply chain, including in her constituency. I look forward to meeting her to discuss this.
Wera Hobhouse (Bath) (LD)
Waste incinerators release, on average, a tonne of CO2 for every tonne of waste incinerated. They are usually called “energy from waste” but their environmental value is questionable unless carbon capture is attached. Yes, we need to recycle more, but energy from waste will be with us for years to come. Will the Secretary of State commit to significantly scaling up carbon capture for energy from waste plants?
Ed Miliband
The hon. Lady is absolutely right, and it is why one of the projects we funded is an energy from waste project. This is exactly the kind of role that CCS can play.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I am grateful for my right hon. Friend’s engagement on this issue. Labour Members from across the Tees valley, especially our friend Alex Cunningham, have been pressing for many years to secure carbon capture, utilisation and storage. Given the dithering of the Conservative party, we had become increasingly anxious that the final investment decisions would not be aligned and that the opportunity to invest in this critical project would be lost. It is a testament to this Labour Government that it has been delivered so early after entering office. So that we can use this precious investment, will my right hon. Friend, along with his Business and Trade and Education colleagues, meet hon. Members from across the Tees valley to discuss how we can secure the well-paid jobs, apprenticeships and training that we need?
Ed Miliband
I pay tribute to Alex Cunningham and my hon. Friend for being tireless advocates. He makes such an important point. As I said to my hon. Friend the Member for Sefton Central (Bill Esterson), we must ensure that the jobs we are delivering get to the people and places that have not seen such opportunities for far too long. I look forward to meeting my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) to discuss this further.
Dr Andrew Murrison (South West Wiltshire) (Con)
Given the Chancellor’s rhetoric about black holes, it is perhaps a little surprising that the Government have managed to magic £22 billion for this, but I wish the Secretary of State well. I hope his plan works. Does he share my concern that, in doing this, we will reduce the drive to decarbonise industries, just as the use of waste incinerators has reduced the imperative to reduce, reuse and recycle waste, including in Westbury in my constituency?
Ed Miliband
I respect the right hon. Gentleman’s question, although I do not agree. First, this is a long-term investment in the country’s future, and I think the Chancellor is far-sighted in recognising its importance. Secondly, there are hard-to-abate industries that, without carbon capture, will find it very hard to enter a decarbonised world. We have to protect those industries, but I agree that, where industries can decarbonise without CCS, of course we want them to do so.
Andrew Pakes (Peterborough) (Lab)
I welcome the Secretary of State’s statement, and I congratulate the trade unions, communities and campaigners that have campaigned for this for so long. His leadership stands in stark contrast with the asset-stripping of jobs, hopes and investment that we have seen in too many of our industrial heartlands. Does he agree that carbon capture is about not just net zero or boosting cluster areas, but boosting jobs, skills and futures in the supply chain in communities such as mine in Peterborough and across the country?
Ed Miliband
My hon. Friend always speaks with great eloquence on these issues, and he is completely right. When we talk about the transition to clean energy creating the jobs of the future, and about it being the greatest economic opportunity of the 21st century, we have to show that it can actually happen. The problem with the last Government is that, although they used that rhetoric at times, they never actually delivered. Today, we are showing the difference.
Adrian Ramsay (Waveney Valley) (Green)
As the Secretary of State will be aware, the vast majority of carbon capture and storage pilot and demonstration projects that have been commissioned worldwide have been cancelled or put on hold. I am concerned that the Government are putting so much money—£22 billion—into an unproven technology. I understand that the track 1 projects are about new gas power stations and blue hydrogen, about which the hon. Member for Brent West (Barry Gardiner) has already expressed concern because they are fossil fuel technologies. Will the Secretary of State rule out investing any of this £22 billion in new fossil fuels, locking the UK into new fossil fuel production? Will he instead consider a major scaling up of natural carbon capture through major investment in the restoration of woodlands, peatlands and wetlands?
Ed Miliband
It is early, but I worry about the hon. Gentleman’s opposition to new grid infrastructure, so goodness knows what will happen to the renewables. He also opposes carbon capture, so goodness knows what will happen to the hard-to-abate industries. I am all in favour of investing in woodlands, but we need all of these things. I want to be generous to the Green party—[Interruption.] I am a generous person, and I am sure the Green party has the best of intentions, but the scale of the transition means this country needs all of these technologies. It is not about choosing to invest in the woodlands and not investing in grid infrastructure or CCS. I urge the hon. Gentleman to think about this, because we need all of these technologies.
Henry Tufnell (Mid and South Pembrokeshire) (Lab)
I welcome the Government’s announcement on moving forward with the track 1 projects, which will create thousands of well-paid jobs, attract inward investment and accelerate us towards net zero. With the closure of the blast furnace at Port Talbot, the two largest carbon emitters in Wales are now in my Mid and South Pembrokeshire constituency, but they have no access to pipeline CO2 transport. What measures is the Secretary of State taking to encourage the decarbonisation of sites such as those in Pembrokeshire, which rely on non-pipeline solutions for CO2 transport, to achieve a just transition?
Ed Miliband
My hon. Friend also speaks with customary eloquence on these issues. This is potentially an important part of the solution. We owe a debt to the workers at Port Talbot, and we must ensure that we leave no stone unturned in looking to the future. I look forward to continuing these discussions with him.
Sammy Wilson (East Antrim) (DUP)
The Secretary of State has boasted about spending £27 billion of public money on carbon capture and storage, and on promoting what he calls renewable energy. Does he feel any sense of irony in taking £27 billion from a financial black hole and putting it into a carbon-absorbing black hole? Does he not recognise that his own green policies are generating the very CO2 he condemns? The Drax B power station needs American forests to be chopped down and brought halfway around the world to be burned, emitting CO2, at a cost of £1 billion a year in subsidy.
In Northern Ireland, we are tearing up thousands of acres of pristine upland bogland to erect windmills, and Scotland has already cut down 17 million carbon-absorbing trees to make space for windmills. I know the Secretary of State is keen on modelling, but have his models told him how many carbon capture and storage facilities will be needed to offset the carbon impact of his green policies?
Ed Miliband
I will let the House into a secret: the conversation—if I can put it that way—between myself and the right hon. Gentleman goes back to 2008 or 2009, when he was shadowing me, so this is a long-running saga, and I fear I will not convince him. I disagree with him on so many levels that it is hard to listen. I respect his point of view, but I think we will not agree.
Alistair Strathern (Hitchin) (Lab)
This Government have shown in the last three months what can be achieved by rejecting the climate denialism that the last Government often seemed at risk of sliding into. However, this announcement is important because it underlines the opportunity we have to also reject climate delivery denialism—the idea that we can somehow make the transition to net zero work without making big, bold investments or by focusing only on narrow solutions that align with our ideological priorities. The International Energy Agency and the Climate Change Committee could not be clearer: CCUS is not just an economic opportunity for this country, but a scientific necessity if we are to meet our climate targets. Will the Secretary of State therefore leave no stone unturned and no opportunity off the table, doing everything we can not just to deliver on our targets, but to ensure that we make the most of the opportunity to reindustrialise parts of this country that have been neglected for far too long?
Ed Miliband
My hon. Friend makes such an important point. I was with the Prime Minister in New York in the last couple of weeks, talking to international partners about where the new British Government stood, and there is a sense that British leadership is back. However, if I had said to them, “We can’t do carbon capture; that’s just not an answer,” they would have said, “Well, what are we going to do about our industries?” My hon. Friend is absolutely right: we need to have all the solutions at our disposal, both for British leadership and for global decarbonisation.
Edward Morello (West Dorset) (LD)
The Secretary of State will know that it is vital that we reduce our global greenhouse gas emissions if we are to avoid the worst ravages of a climate crisis that is already manifesting. Given that this deal risks incentivising hard-to-abate businesses to continue with business as usual, will he outline what steps the Government intend to take to ensure that those industries also invest in reducing their emissions?
Ed Miliband
I welcome the hon. Member to the House. We have all kinds of projects in place to encourage business to decarbonise; indeed, our drive for clean power by 2030 is part of ensuring that we decarbonise the electricity system to help businesses to be part of the decarbonisation journey. However, I just do not recognise the picture that he paints—that this proposal is somehow a disincentive for companies. I hear lots of businesses asking how they are going to exist, frankly, in a decarbonised world. What is the answer, for example, for the cement industry in a decarbonised world? That is why CCS is so vital.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I am so pleased to be part of a new era of clean energy investment, with carbon capture in the north-east and the very successful recent renewables auction. The Secretary of State has been to see our critical minerals, floating offshore wind potential and geothermal potential in Cornwall. Will he please confirm that the industrial strategy and renewables will be truly UK-wide and will span from Scotland and the north-east down to the west and Cornwall, with a clear pipeline of investment opportunities in order to give certainty to developers in, for example, floating offshore wind in the Celtic sea?
Ed Miliband
My hon. Friend is absolutely right. As I have said before in the House, Cornwall has a crucial role to play in our clean energy future. She is a brilliant champion for Cornwall and for floating wind. As she says, there is huge opportunity, and we look forward to working with her to make it happen.
Caroline Voaden (South Devon) (LD)
I welcome the Secretary of State’s enthusiasm for decarbonisation and carbon capture, particularly in heavy industry, including cement. However, the track 1 projects include new gas power stations and new blue hydrogen, which will carry a huge greenhouse gas penalty caused by upstream methane emissions. Will the Secretary of State therefore commit to reviewing the full-lifecycle greenhouse gas emissions for any project before it goes to a full investment decision?
Ed Miliband
That is indeed done as part of this. I gently say to some of those asking me this question that this Government have a world-leading position on no new oil and gas licences, and that position is recognised around the world. I say to the hon. Member—this goes back to what I have said throughout this statement—that we need everything as part of the mix. That is why we are going to keep existing fields in the North sea open for their lifespan—for decades to come—and that is part of the energy mix. Of course we are going to move off oil and gas; indeed, we have a science-based position on this issue, unlike the last Government. But this does need to be a transition, and that is what we are going to make happen.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
I strongly welcome my right hon. Friend the Secretary of State’s commitment to delivering for Teesside and to delivering thousands of good green jobs in clean industries—delivery after years of delay. He mentioned Solent earlier, and he knows the risk that delay can pose to CCUS and to jobs. Does he therefore agree that it is absurd for the Conservative party to try to claim credit for this proposal after failing to deliver for 14 years, failing to commit any resources and leaving our industries in the lurch?
Ed Miliband
My hon Friend is absolutely right. The last Government cancelled the project twice, which tells us all we need to know about them. I had forgotten about the second cancellation; I actually had to check—I could not believe that they had cancelled it not just once but twice. That is going some. After three months, here is the reality: they talked, we acted.
Harriet Cross (Gordon and Buchan) (Con)
The Secretary of State will know that investment in these CCUS projects would not be possible without the private investment generated from our oil and gas companies. In the light of that, of him again confirming his policy on no new licences and of other policies that are set to close down the North sea, how will he ensure that that private investment continues so that more CCUS projects come forward in the future?
Ed Miliband
I listened to what oil and gas companies such as BP and Equinor said: they warmly welcomed this announcement. Frankly, there was a sigh of relief; after years of promises and delay, we finally had a Government getting this done.
Richard Tice (Boston and Skegness) (Reform)
Ten million pensioners will find it utterly extraordinary that this Government can find over £20 billion when they cannot find £1 billion to fund the winter fuel payment. That is £20 billion to invest in what the Secretary of State has today admitted is a risky technology—I find myself in the rare position of agreeing with the co-leader of the Green party, the hon. Member for Waveney Valley (Adrian Ramsay), on that. The extraordinary thing is that this is almost £1,000 per household. Will this sum of taxpayers’ money be added to general taxation, when taxes are already at record highs, or will it be added to our energy bills, which the Secretary of State has promised will be brought down?
Ed Miliband
Let us be absolutely clear about this, because that was a significant intervention from the hon. Gentleman. Here we have what claims to be the party of working people opposing jobs for working people right across the country. That says all we need to know about the hon. Gentleman: outside this House, he pretends to be in favour of good industrial jobs for Britain; in this House, he opposes them.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
I welcome the announcement that has been made, but the Acorn project in St Fergus, between Fraserburgh and Peterhead in my constituency, has been waiting for years, following a promise of jam tomorrow from the last lot. Opposition colleagues have asked for a definitive statement regarding progress on the project. I know that it is a track 2 project, but I am deeply impressed by the extent to which the Secretary of State is prepared to move things forward rapidly, so can he please give us some sort of timescale for the Acorn project today?
Ed Miliband
I am grateful to the hon. Gentleman for the tone of his question. I do understand that, just as track 1 was led a merry dance by the last Government, so too was track 2. The current Government have been in power for three months. We are moving at speed, and we have got track 1 over the line. These are obviously decisions that the Chancellor will have to make in the spending review, for reasons the hon. Gentleman will understand. I just say to him that we are absolutely committed to track 2, including Acorn.
Brian Mathew (Melksham and Devizes) (LD)
I welcome the Secretary of State’s statement, but carbon capture can be done in a number of ways. Anaerobic digestion plants, for example, produce as much CO2 as methane, which can be ducted into greenhouses to produce bigger tomatoes, cucumbers and lettuces. Will such natural carbon capture be included in the project, thereby helping to enhance our food security?
Ed Miliband
I am all in favour of big tomatoes and improving our food security. The hon. Gentleman makes an important point about the potential uses of CCUS. On Friday, we were at a glass factory that will be using hydrogen from a new project and will be the beneficiary of a decarbonised supply. I look forward to further discussions with the hon. Gentleman.
Madam Deputy Speaker (Judith Cummins)
And the final word goes to Jim Shannon.
Jim Shannon (Strangford) (DUP)
Maybe not the final word, Madam Deputy Speaker, as that will be for the Secretary of State. I welcome the statement, in which he rightly underlined that anybody who ignores carbon capture, use and storage does so at their peril, and the Government’s commitment to carbon capture. While the amount set aside is incredible, so too is the requirement that every penny brings an achievement. How will the Secretary of State ensure that each region of the United Kingdom is involved in this net gain? I say to him gently that Northern Ireland is not mentioned in his statement; I am sure he will address that issue. There must be accountability to ensure the realisation of environmental goals, rather than simply the aspiration of achieving them.
Ed Miliband
I thank the hon. Gentleman for his question. I hope he has a conversation with his right hon. Friend the Member for East Antrim (Sammy Wilson)—[Interruption.] I see the right hon. Member does not want to talk to him right now. A good point to end on is the fact that, of course, jobs will be created in certain parts of the United Kingdom, but the measures announced will benefit supply chains across the whole United Kingdom. This Government look forward to ensuring that happens.
Grangemouth Oil Refinery: Jobs
Ed Miliband Excerpts(3 months ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
It is deeply disappointing to learn that Petroineos has confirmed its previous decision to close the oil refining operation at Grangemouth. All of my thoughts are with the workers and their families and the wider Grangemouth community. The site will now convert to an import terminal, which will continue to provide a secure and flexible fuel supply for Scotland.
The Government will stand with the workforce in these difficult times. That is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and deliver a viable industrial future for the Grangemouth site, with potential for future support from the national wealth fund.
Since taking office, I have taken joint action with the Scottish Government to urgently engage with the company and its shareholders, leaving no stone unturned to find a viable long-term future for the site. As it is clear that there is no viable commercial future for the current refinery operations, the UK and Scottish Governments have today announced a package that seeks to chart a new future for Grangemouth. This includes:
£100 million package for Falkirk and Grangemouth, including £20 million in joint funding from the UK and Scottish Governments announced today, on top of £80 million in joint funding from the two Governments for the Falkirk and Grangemouth growth deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region.
Investment in the site’s long-term future. The £1.5 million joint-funded Project Willow study has identified a shortlist of three credible options to begin building a new long-term industry at the refinery site, including low-carbon hydrogen, clean efuels and sustainable aviation fuels. We will work with the community to seek a commercially viable proposition, with the potential for future support from the national wealth fund.
Immediate career support for workers. The UK and Scottish Governments will provide tailored support that will help affected workers in finding new employment—and Grangemouth will be among the first areas that the new office for clean energy jobs will work with to help deliver a just transition.
Alongside the Scottish Government, I will also be holding an extraordinary meeting of the Grangemouth Future Industry Board today to discuss next steps with local industry leaders, Falkirk council, and trade bodies and unions.
[HCWS96]
Exercise of Powers over the Office for Nuclear Regulation
Ed Miliband Excerpts(3 months ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
My noble Friend Lord Hunt of Kings Heath has today made the following statement:
Later today, the annual report to Parliament setting out the use of the Secretary of State’s powers exercised in respect of the Office for Nuclear Regulation during the year will be published. This is in accordance with section 108(1) of the Energy Act 2013.
[HCWS88]
Great British Energy Bill
Ed Miliband ExcerptsThursday 5th September 2024
(3 months, 1 week ago)
Commons ChamberRead Full debate Great British Energy Bill 2024-26 View all Great British Energy Bill 2024-26 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I beg to move, That the Bill be now read a Second time.
May I congratulate you on your elevation to your new role, Madam Deputy Speaker?
At the general election, the British people voted for change, and they voted for our party’s promise of the first new national, publicly owned energy generation company in our country for more than 75 years: Great British Energy. Today, with this Bill, we deliver. British public ownership is back at the heart of our energy system. To every right hon. and hon. Member behind me, I say that it is thanks to each and every one of their victories in their constituencies that today we can start to create a lasting legacy for the country, which breaks from 14 years of failure—14 years of leaving Britain exposed to fossil fuel markets, which led directly to the worst cost of living crisis and energy bills crisis in generations.
Graham Stuart (Beverley and Holderness) (Con)
Will the Secretary of State give way?
Ed Miliband
Not at the moment. [Interruption.] The right hon. Gentleman needs to calm down a little bit; I know he gets very angry.
We have had 14 years of blind faith in free markets and a refusal to have an industrial policy, which offshored clean energy jobs, and 14 years of a Government who were perfectly happy with state ownership of our energy system, but with one crucial overriding condition: that it would be state ownership by any country except Britain. That is the reality of what we inherited.
We already have widespread state ownership of Britain’s energy assets by other countries—Denmark, Sweden, Norway and France—through their state-owned companies. Indeed, the city of Munich owns more of our offshore wind capacity than the British Government. Following the auction results I announced on Tuesday, the largest two offshore wind projects to win a contract will be built by Ørsted, a Danish state-owned company. I strongly welcome its investment, but the question before the House today—the question at the heart of this Bill—is simple: do we think there should be a British equivalent of state-owned energy generation companies such as Ørsted, Vattenfall, Statkraft and EDF investing in our infrastructure?
We have a simple proposition: if it is right for the Danes, the French, the Norwegians and the Swedes to own British energy assets, it is right for the British people to do so as well. That is why we fought the election on the crucial principle that the British people should have a right to own and benefit from our natural resources. To every Member of the House who is considering their vote on this Bill this afternoon, I urge them to vote for that principle. To those thinking about voting against the Bill, I ask them how they will defend to their constituents the idea that other countries should own our national energy infrastructure, but Britain should not.
Graham Stuart
I am grateful to the right hon. Gentleman for giving way. He is normally a fair man, but what he did not mention was the risible state of renewable energy when we took power in 2010. It accounted for less than 7% of electricity, and we increased the figure to nearly 50%. We are a country that has led the world in this area. It was the Conservatives who transformed our energy system to remove coal from the system. I am sure I am just setting up the Secretary of State, which I am happy to do, but what will state ownership do? Our system is arguably one of the most effective in the whole world at delivering green capacity, and has been the most successful in cutting emissions. What will state ownership do, other than simply put the state and its complicated mechanisms into programmes that need to be speeded up, not slowed down?
Ed Miliband
The right hon. Gentleman surprises me; he is a brilliant set-up man, and he is welcome any time. I will now explain to him what state ownership will do. Here is why it is the right idea for our time. It is the right idea for energy security, because Great British Energy will invest in home-grown, clean energy that we control, and speed up its delivery. It is the right idea for jobs—this is the learning from all those other countries I mentioned—because Great British Energy will partner with the private sector to create jobs and make sure that we build the supply chains and jobs that the British people deserve.
It is the right idea for creating wealth for Britain. This is what I do not understand about the Conservative party, because state-owned companies from other countries are not investing in these assets as a charitable endeavour; they are doing so to generate wealth for their countries—wealth that flows back to their taxpayers. State ownership is the right idea for creating wealth for Britain, because Great British Energy, through its investments, will help generate return for the taxpayer. To answer the right hon. Gentleman directly, it is right for energy security, it is right for jobs, and it is right for creating wealth for our country.
Sammy Wilson (East Antrim) (DUP)
I will not support this Bill tonight. The Secretary of State claims that it will put the British people in ownership of the renewable electricity supply market, but that market is estimated is £50 billion a year. He is proposing to invest £1.6 billion a year. Can he not see the difference that £1.6 billion will make to the overall investment? The infrastructure will still not be owned by the British people.
Ed Miliband
The right hon. Gentleman and I have a long history on these issues, which makes me rather old. Indeed, we used to spar about them 15 years ago. He is wrong about £1.6 billion; it is £8.3 billion of investment over the Parliament—a significant sum. Great British Energy will not become EDF overnight—of course not —but the point is that this Government believe in creating a lasting, long-term legacy for Britain, which is what GB Energy will do.
Several hon. Members rose—
Ed Miliband
I am going to make some more progress.
Let me go through what Great British Energy will do. First, it will invest in and own clean energy projects, particularly leading-edge technologies such as floating offshore wind, by working with the private sector and taking stakes in the projects it supports. The truth is that we need to accelerate the deployment of wind, solar, tidal, hydrogen, carbon capture and nuclear, and we need to face the reality that frontier technologies carry risk. That is why there is a particular role for the Government in helping to de-risk projects by investing in them in partnership with the private sector, and in doing so capturing value for Britain.
GB Energy will invest across a range of clean energy technologies, using its £8.3 billion capitalisation. The chair has been appointed by the Government, but the company will be able to move at pace with operational independence. I am delighted that Jürgen Maier, who has a great record of achievement and is a champion of UK manufacturing and good jobs, has been appointed as start-up chair.
Grahame Morris (Easington) (Lab)
I completely agree with the basis of my right hon. Friend’s argument for ending the offshoring of jobs, energy assets and employment opportunities. Almost all solar panels are currently sourced from China. Power Roll, a company in my constituency, has developed a lightweight, flexible and cost-effective solar module and is eager to establish its first gigafactory. Does he agree that, to secure our energy future, Great British Energy should be supporting and investing in innovative start-ups such as Power Roll in east Durham?
Ed Miliband
My hon. Friend is a brilliant champion of his constituency and these issues, and he is absolutely right that part of the challenge we face is to expand our supply chains in Britain. I am very interested in the example he gives.
Matt Rodda (Reading Central) (Lab)
The Secretary of State talks eloquently and powerfully about the physical investment coming from this new measure. Will he elaborate on some of the benefits to our workforce, particularly the training and development opportunities for younger people through a wider range of apprenticeships, and the amazing multiplier effect that will have for our economy?
Ed Miliband
My hon. Friend anticipates my point about how we build the supply chains, and about the lessons we have learned from what state-owned companies in other countries have done to help catalyse a supply chain of jobs and to work with the private sector.
Mr Perkins
I am very grateful to my right hon. Friend. We heard the right hon. Member for Beverley and Holderness (Graham Stuart) suggest a few moments ago that things were going wonderfully under the Conservative Government, but does my right hon. Friend agree that the Climate Change Committee warned a few weeks ago that only a third of the emissions reductions that we need to achieve the 2030 target are currently backed by a credible plan? Is the reality not that we need a step change? Thank God we have a Labour Government to deliver it.
Ed Miliband
My hon. Friend is absolutely right, and it is part of what this Government have done. In less than two months, we have overturned the onshore wind ban, consented large amounts of solar power and, on Tuesday, had the most successful renewables auction in British history.
Ed Miliband
I will not give way to the right hon. Gentleman again. We have heard quite enough from him.
Secondly—I know this is a concern of the Liberal Democrats and of other Members on both sides of the House—Great British Energy will deliver our local power plan, working with local authorities, combined authorities and communities to deliver the biggest expansion of support for community-owned energy in history.
Clean energy is not just about large-scale infrastructure. If we look around the world, so many countries have a lot to teach us. In Denmark, around half of wind capacity is citizen-owned; and in Germany, almost half of solar capacity is citizen-owned. Our local power plan will learn from other countries.
Generating clean power, and embracing it as a way to generate a return for local people, to help tackle fuel poverty, to unleash the dynamism and resources of local communities and to win the consent of local people, thousands of projects across Britain are tapping into that energy and enthusiasm.
Ed Miliband
I will make a bit more progress.
I had the chance to visit the Lawrence Weston turbine in Bristol, which Members may know about. It is England’s tallest onshore wind turbine, and it is 100% owned by the local community, powering at least 3,000 local homes and reinvesting revenues into local projects.
Ed Miliband
I have caught the eye of an infrequent contributor to this House, so I will give way.
Jim Shannon
I thank the Secretary of State for what he is putting forward. It seems logical for the UK to manufacture this process, rather than others doing it for us. The question for my constituents, I say respectfully to the Secretary of State, is, what will the price of energy be at the end? A LucidTalk poll for National Energy Action evaluated the impact of rising energy prices on households in Northern Ireland. It found that 41% of households were spending more than 10% of their income on their home energy costs. How can we make sure that my constituents, and indeed all our constituents, can have energy they can pay for?
Ed Miliband
The hon. Member is absolutely right. This is a massive concern for all our constituents, and Great British Energy is a crucial tool to bring down prices for our constituents. The truth is that every Member in this House has to make a judgment on this. Do they believe that business as usual, staying on fossil fuels, will give us the energy security we need? We discussed this in the House on Tuesday. The truth is that we had the worst cost of living crisis in generations because of our exposure to fossil fuels. We are seeing prices rise again on 1 October, not because of Government decisions but because of our dependence on international gas markets. The argument for clean energy 15 years ago was a climate argument; it is now as much an energy security argument as a climate argument.
Several hon. Members rose—
Ed Miliband
I am going to make a bit more progress.
Thirdly, Great British Energy will work with industry to develop supply chains across the UK to boost energy independence and create good jobs. The reality is that the last Government spectacularly underdelivered on the promise of creating jobs in clean energy. It is true that British waters are home to one of the largest floating offshore wind farms in the world: Kincardine, just 15 km off the coast of Aberdeen—[Interruption.] The right hon. Member for East Surrey (Claire Coutinho) nods, but where was it made? Its foundations were made in Spain and its turbines were installed in the Netherlands, and it was then simply towed into British waters. How can that be right?
This Government are not neutral about where things are made. We want the future made in Britain. Clean energy is the economic and industrial opportunity of the 21st century, and the truth is that other countries are seizing this opportunity. Britain is being left behind. The facts are extraordinary: Germany has almost twice as many renewable jobs per capita as Britain; Sweden almost three times as many; and Denmark almost four times as many. That is the previous Government’s legacy.
What our friends and neighbours have realised is that a domestic national champion is a crucial tool to help deliver economic success. The success of the Danes, for example, cannot be divorced from the role of Ørsted in helping to make it happen. That is why Great British Energy will work alongside our national wealth fund and the British jobs bonus, partnering with industry, to build supply chains in every corner of the UK, delivering the next generation of good jobs, with strong trade unions, and reindustrialising Britain.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
I congratulate the Secretary of State on his appointment. May I draw attention to the letter he wrote to Fintan Slye, the chair of National Grid ESO, in August, and the response he has given in his open letter to the industry, alongside a question about the cancellation of the offshore co-ordination support scheme, which was coming up with viable alternatives for better delivery of the Norwich to Tilbury project? Mr Slye says that the plan the ESO will develop will be
“a whole systems spatial view of what is required to deliver a clean, secure, operable electricity system by 2030.”
Does that include all the work that ESO has already done in its review of the Norwich to Tilbury project, which includes many viable options that could speed up the process and make it more viable for the long term?
Ed Miliband
I looked carefully at that issue before we made that decision. I have great respect for the hon. Gentleman, but we cannot justify spending public money on a scheme that will not work and will not deliver for the British people, which is why we did not go ahead with the second phase. All the advice and all the evidence was that it just would not be value for money.
I am glad that the hon. Gentleman draws attention to 2030. For the first time in this country since the last Labour Government were in power, we are going to have a proper plan. We did not inherit a proper plan, and we need a proper plan to give certainty to industry.
Fourthly, Great British Energy will support project development, leading projects through their early stages to speed up delivery, while capturing more value for the British people, in particular through our partnership with the Crown Estate, announced just two weeks into our period in Government. The partnership will co-ordinate planning, grid and leasing for the seabed and, importantly, help speed up the roll-out of offshore wind and other technologies. It has the potential to help leverage up to £60 billion of private investment and deliver up to 30 GW of offshore wind leases.
The truth is we have huge potential as a country: the chance for offshore wind to drive investment in coastal areas from Cornwall to Grimsby, opportunities for ports from west Wales to north of Scotland to lead the world in the industries of the future, and opportunities for supply chain companies all over the world. That is what this Bill is about.
Ian Lavery (Blyth and Ashington) (Lab)
I am terribly excited about the ambition of the Labour Government for GB Energy. In my constituency, Blyth port is thriving. We have Energy Central on the Blyth estuary, Catapult UK, the offshore energy research centre, and Lynemouth power, a biomass power station. May I invite the Secretary of State to see the issues in my constituency for himself, and show businesses and residents how they can participate in the fantastic opportunity Government are offering?
Ed Miliband
My hon. Friend is a great champion for his area and he is right. I am sure he reflects the feelings of every right hon. and hon. Member, whatever side of the House they are on, that there are huge opportunities in this sector. We intend to exploit them. I look forward to seeing his constituency.
Ed Miliband
I will make a bit more progress. I have set out our case—a case that the British people overwhelmingly support. According to post-election polling by More in Common, Great British Energy was supported by an overwhelming 73% of voters and opposed by just 8%. It appears from the Conservative’s reasoned amendment—so-called—that Conservative Members will vote against the Bill today. If they do that, they will do something remarkable: they will go one step further than refusing to listen to the people who did not vote for them by refusing to listen to the people who did vote for them—quite a remarkable feat by an Opposition—because Great British Energy was supported not just by Labour voters, but by Conservative voters by a majority of four to one—56% to 14%.
Ed Miliband
I will make a bit more progress. [Interruption.] Conservative Members are still in the “the show was great but the audience was poor” stage of Opposition. Let me give them some advice—they will get out of that over time, but they are in the early stages now.
Because I get my kicks in strange ways, for a bit of light entertainment, I have been reading what the Conservative party leadership candidates have been saying. It is really interesting, honestly; it is quite fun reading. [Interruption.] Yes, somebody has got to do it. The right hon. Member for Tonbridge (Tom Tugendhat) said that people
“will never vote for a party that they have stopped taking seriously.”
Well, that is true. He said they should be
“given credit for seeing the errors that we may make and correcting them.”
Correct. The right hon. Member for North West Essex (Mrs Badenoch)—I believe the shadow Minister, the right hon. Member for East Surrey (Claire Coutinho), is the mastermind for her campaign—said it was no good
“having the same policy arguments from the last Parliament.”
The shadow Minister should take those words to heart.
I agree with those candidates that the Conservative party needs to move on. I am in a generous mood, Madam Deputy Speaker. I have been involved in leadership campaigns, so I have some advice. I have a free idea for the not very famous five still left in the Tory leadership competition: back an idea that the public support. Back an idea that Conservative voters support; back an idea that Labour voters support; back an idea that Reform voters support—Reform Members are not here. Back an idea that Liberal Democrat voters support. They should move on from the arguments of the last Parliament, show a bit of bravery—even break the Whip and stand out from the crowd. They should break from the past and back our Bill today.
Wera Hobhouse
The Secretary of State knows I share his passion and ambition to get to net zero. One big concern about GB Energy is that it will crowd out, rather than crowd in investment. Will he enlarge on how he intends to crowd in investment into green energy?
Ed Miliband
I am very surprised by the Liberal Democrats saying that. It is slightly “orange book” Liberal Democrats, if I may put it that way, for those old enough to remember. I say respectfully to the hon. Lady and all Members of the House: look around the world at what is happening before our eyes. There is catalytic public investment—public investment levering in private investment. The whole old fashioned, free market 1980s argument about crowding out turns out to be wrong. Just look at what is happening in America. Why is the money flowing to the United States? In part, because of the catalytic public investment. [Interruption.] I can see Opposition Members are going to be slow learners.
Great British Energy is at the heart of our long-term plan to accelerate the transition to clean energy and ensure we are never at the mercy of volatile fossil fuel markets again. It will speed up delivery, create good jobs and protect family finances, and we will reap the benefits for generations to come. I commend the Bill to the House.
Contracts for Difference: Allocation Round 6 Results
Ed Miliband Excerpts(3 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
The sixth contracts for difference auction results have been published today, unlocking 9.6 GW of renewable electricity projects. Among others, contracts will be going to the two largest offshore wind farms in Europe, the world’s largest floating offshore windfarm to date and record numbers of solar projects. These results are over 2.5 times bigger than allocation round 5. These new projects will boost energy independence, secure cheap power for families, and unlock economic growth and jobs for the country.
Following my decision to increase the budget to record levels, just over 130 renewable electricity projects across Great Britain secured contracts—enough to power the equivalent of 11 million homes.
I am delighted to see strong results across a range of renewable electricity technologies. In particular, a record 93 solar PV projects have secured contracts. This is more than the total number of contracts agreed via AR5 across all technologies and represents around a 20% increase in our current installed solar capacity. Solar is one of the cheapest, most readily-deployable energy sources we have at our disposal, and its growth will be vital to meeting our clean power mission.
I am also delighted to confirm we have secured the largest commercial-scale floating offshore wind farm project in the world through AR6—at 400 MW—double the size of current European total installed FLOW capacity. The construction and deployment of this project will deliver valuable lessons that will benefit the wider FLOW industry, and help reinforce Britain’s position as a world leader in both fixed-bottom and floating offshore wind technology. Tidal stream, another emerging technology, has secured a further six project contracts (totalling 28 MW), bringing the UK total for tidal stream power procured to over 100 MW.
After a disastrous outcome for offshore wind in AR5, it is very encouraging to see 4.9 GW of capacity come through in AR6. This includes procuring Europe’s second largest offshore wind project (considering operational projects and projects under construction). I am confident we can continue to build on this promising outcome in future rounds.
I am delighted that the CfD mechanism has delivered competitive prices across the board, with prices significantly below the ceiling prices (ASPs), protecting consumers. Having more renewables like wind and solar in the system will also ensure Britain is less affected by fluctuations in volatile global gas prices.
The lifting of the onshore wind ban, this very successful allocation round 6, and the creation of Great British Energy, all signal the ramping up of our efforts to deliver clean power by 2030 and net zero, moving towards energy independence and protecting families from volatile fossil fuel prices. Going forwards, we will continue to work with investors, developers, and the supply chain to accelerate our mission to become a clean energy superpower.
[HCWS65]
Contracts for Difference
Ed Miliband Excerpts(3 months, 2 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I congratulate you on your new role, Madam Deputy Speaker.
With permission, I would like to make a statement about the sixth contracts for difference allocation round.
It is less than two months since the Government came into office with a mandate to fix the foundations and make Britain a clean energy superpower. The last Government left this country exposed to international fossil fuel markets. As a result, every household and business paid the price in the worst cost of living and energy bills crisis in memory; because of Britain’s particular exposure, families and businesses in our country were hit harder than others.
The only way to provide this country with the energy security that the British people deserve is through home-grown clean energy that we control. That is the mandate on which this Government were elected, and that is what we will deliver.
Last year’s contracts for difference auction, under the previous Government, was a fiasco. No offshore wind projects were awarded, which was a disaster for the industry and for our efforts to move away from dependence on fossil fuels. In July, when we came into office, I made the decision to expand the budget for this year’s auction by 50% to maximise the amount of home-grown clean power we could secure while delivering value for the British people, and today the results are in.
I can announce to the House that we have secured a record-breaking 131 new clean energy projects: more projects for our country as a whole than any previous auction; more projects in England, more projects in Scotland and more projects in Wales than any previous auction; over two and a half times the capacity secured in last year’s auction; nearly 10 GW of clean, home-grown power, enough to power the equivalent of 11 million homes; the most successful renewables auction in British history; and a major step forward in our mission to make Britain a clean energy superpower and to help Britain get off the rollercoaster of volatile global gas markets.
Let me set out the results in detail. First, solar is one of the cheapest and most readily deployable energy sources at our disposal. We have secured a record 93 solar photovoltaic projects, the largest number of solar projects ever in an auction, unlocking 3.3 GW of new solar, which is a 20% increase on our installed capacity.
Secondly, we have secured almost 1 GW of onshore wind. However, I must report to the House that, thanks to the Conservatives’ near total ban on onshore wind, there was just one small onshore wind project in England of 8 MW. Their nine-year ban destroyed the pipeline of projects. That is why this Government lifted the onshore wind ban in England as one of their first acts. Our onshore wind taskforce will now go about the process of working with industry to rebuild the pipeline of projects.
Thirdly, this auction was a success for the emerging technologies that will serve our country in the future. Floating offshore wind offers a huge opportunity in every part of Britain. The last auction secured no floating offshore wind. On coming to office, I was presented with a budget that risked repeating the mistakes of the past, so I took the decision to more than double the budget that covers this cutting-edge technology. I can report to the House that today’s auction has secured a 400 MW floating offshore wind project, more than 10 times bigger than the previous biggest floating offshore wind farm in Britain.
Ed Miliband
At a lower price. This floating offshore wind farm alone is double the size of all of Europe’s installed floating offshore wind capacity. In addition, on tidal, where Britain has huge leadership opportunities, we have secured six new tidal stream projects at the lowest ever price.
Fourthly, on fixed offshore wind, in contrast to the zero GW secured in last year’s round, we have secured 4.9 GW of offshore wind, enough to power the equivalent of 8 million homes. That includes securing both the largest and second largest offshore wind projects in Europe—Hornsea 3 and Hornsea 4 off the Yorkshire coast. An industry flat on its back because of the mistakes of the last Government is back on its feet thanks to this Government.
I can also report to the House that across the whole auction all these results were secured at prices well below the maximum price limit—prices that demonstrate that wind and solar are the cheapest sources of power to build and operate in our country. For the House’s benefit, that means a clearing price for offshore wind that is five to seven times lower than electricity prices driven by gas at the peak of the energy crisis.
The success of this round does not just offer greater energy security for the British people; it also offers the possibility of good jobs throughout Britain. But that will not happen without action by Government, because we know that too often in the past renewable energy produced in Britain has not created enough good jobs in Britain. With Great British Energy and our national wealth fund, we will invest to make sure our clean power mission produces jobs in every corner of the United Kingdom.
This Government have been in office for less than two months. In that time, we have lifted the onshore wind ban, consented more nationally significant solar capacity in one week than the last Government did in 14 years, and now delivered the most successful renewables auction in the history of the country. And on Thursday we will debate the Second Reading of the Great British Energy Bill. This is a Government in a hurry to deliver our mission: energy security, lower bills, good jobs and tackling the climate crisis. I commend this statement to the House.
Mark Garnier (Wyre Forest) (Con)
I am grateful to the Secretary of State for the timely advance sight of his statement. I would like to put on record that Members on the Opposition Benches welcome the success of the contracts for difference allocation round 6. The Secretary of State is right to be proud of that achievement by the Government. It is to be celebrated that we, as a country, are creating an extra 131 clean energy projects that include 5 GW of offshore wind farms and 3 MW of floating wind.
The Secretary of State will be grateful to the previous Government for setting up the details of auction round 6 last November. The previous Secretary of State recognised the problems of AR5 and the price set for offshore wind—a price that was set before a round of inflation that made the CFD strike price cap too low for the producers. By the way, this was not just a UK problem; it affected other projects for offshore wind around the world. Increasing the strike price by around 60% to the current AR6 price of £73 has been crucial to securing the current success. Of course, in addition, the previous Government had many other successes. In 2010, just 7% of our energy needs were supplied by renewables. Today it is nearly 50%. This has come from many initiatives, not least bringing in the contracts for difference auctions in 2014 and making the auction process an annual event—an initiative that was learnt from AR5 problems.
It would not be fair to ignore the contribution by the new Secretary of State. As he said, he has increased the pot for this year’s auction by 50%. While that is welcome—frankly, who would not welcome more renewable energy—that does not tackle our energy issues. At the same time as increasing renewable energy production, the Government are decreasing UK gas production. The UK needs reliability of supply of energy, but we all know we cannot predict with any certainty when the wind will blow and the sun will shine. That is why we need baseload, dispatchable energy that can supply the energy needs of our homes and economy.
We recognise the importance of investing in renewables to deliver clean energy, and the 9.6 GW announced today is a brilliant step in the right direction, but given these successes, and his self-declared success today, why does the Secretary of State plan to saddle the country with billions in debt to fund Great British Energy? In previous months, he may have answered that question by saying that the purpose of GB Energy was to cut energy bills by £300. However, we note that his promise to cut energy bills seems to have gone missing, much like the winter fuel payments of 10 million pensioners.
Despite the Secretary of State’s pledge, and that of many hon. Members on the Government Benches, he will be aware that energy bills are in fact going up. Can he confirm when bills will fall, and by how much? Pensioners are not the only ones being impacted by this Government’s ideological energy targets. As I have already mentioned, the Secretary of State banned new oil and gas, which will cost 200,000 oil and gas workers their jobs. Research conducted by the industry predicts that that move will see tax revenues from that industry fall by £13 billion by 2030.
The Opposition welcome the Secretary of State’s ambition to make sure that the jobs created by the transition are located in Britain, but, at this stage, the majority of jobs in the solar and wind sectors are located in China. What steps is he, as the current Secretary of State, taking to ensure all the jobs created through AR6 are located in Britain? He has already made a bit of a habit of riding roughshod over the concerns of local communities, approving developments without regard to the concerns of local communities. These decisions will see some of Britain’s green belt and best agricultural land developed. Will the Secretary of State confirm what share of today’s investment will take place on the green belt? What protections is he putting in to protect the green belt?
The Secretary of State has spoken at length about the need to overcome challenges facing the grid. In Government, we delivered a 500% increase in the amount of renewable energy connected to the grid, but we recognised that so much more needed to be done. What steps is the Secretary of State taking to support this further increase? Has he investigated undergrounding? What plans does he have to protect the countryside from more pylons?
I note that the Secretary of State today recommitted to decarbonising the grid by 2030. We have previously warned him of the risks of being over-ambitious, which include leaving families facing the cost. It is not only the Opposition who have warned him of that—Chris Stark, his newly appointed head of mission control, once described the 2030 target as “over-ambitious”. Will the Secretary of State please share exactly what his head of mission control believed to be over-ambitious about a 2030 decarbonisation target? His head of mission control also warned that it was entirely fair that people are concerned about the cost of decarbonising by 2030. Will the Secretary of State confirm that neither taxpayers nor bill payers will be left with the cost of the 2030 target? Will he tell the House when we will see a proper, comprehensive estimate for the full systems costs of his decarbonisation plans for 2030?
In conclusion, the Opposition welcome the fact that the Secretary of State has built on our successes in boosting renewable energy. However, we hold serious concerns about what this round will mean for Britain’s green spaces and whether, given the increased cost of AR6, his commitment remains to cut bills by £300.
Ed Miliband
I congratulate the hon. Gentleman on his elevation since the election. I look forward to our exchanges in this House. I say him to gently that the crucial first phase of Opposition, in my experience, is having a bit of humility to admit where they have got things wrong. I do not deny that some of the things that the previous Government did were right, but quite a lot of what they did was wrong—for example, the nine-year ban on the cheapest, cleanest form of power, the blocking of solar projects across the country and the crashing of the offshore wind market, which led to the worst energy bills crisis in generations. That is their legacy, and at some point some of the leadership candidates will have to face up to that.
Let me deal with the hon. Member’s specific points. If I may say so respectfully, I feel like he answered some of his own questions. He draws attention to the fact that energy bills are rising from 1 October. He is right about that, and that is deeply regrettable. Why is that happening? Because we are exposed to international gas markets. This is about power that we do not control. Every solar panel that we do not put up, every onshore wind turbine that we do not erect, and every piece of grid that we do not build leaves us more exposed. The Conservative party is in a dilemma on this, because it is facing both ways, but it has to face up to that fact. Of course we will have a proper and orderly transition in the North sea, keeping existing fields open for their lifetime and having a just transition for the workforce, but the idea that the Conservative party and some of its erstwhile friends are clinging to—that fossil fuels will get us out of this—is completely belied by all the facts and the crisis that we went through.
The shadow Minister says—and I agree with him—that we need to have jobs in this country. He says it as if he finds it hard to remember who has been in power for the past 14 years. It is terrible, he says, that everything is being produced elsewhere. He is right. Germany has almost twice as many renewable energy jobs per capita as the UK. Sweden has almost three times as many, but, most interestingly, Denmark, with its publicly owned energy company, Ørsted, has almost four times as many.
The hon. Gentleman asks about Great British Energy. We will debate that matter on Thursday, but one reason why we went to the electorate on this point and were endorsed on it is that, unless we have a publicly owned national champion, all the evidence is that the jobs will go elsewhere. That is part of having a basic industrial policy.
The hon. Member talks about solar energy, but, again, he has to make up his mind about where he is on this. He says that he agrees that we need clean energy in this country, and that we have to get off the international gas markets, but the problem is that the Conservatives duck every difficult decision. Then he asks about undergrounding. The Conservatives were in power for 14 years, so they had plenty of time to do the undergrounding of all the cabling. Why did they not do that? It is because they know that it is multiple times more expensive. Now they come along, less than two months after the general election, and say that it is time for some undergrounding of the grid. For goodness’ sake! I have experience of being Leader of the Opposition. Perhaps it is time for the Conservatives to have some private tutorials on how to be in opposition.
Mr Toby Perkins (Chesterfield) (Lab)
It is great to see my right hon. Friend in such ebullient spirits. I have to say that his enthusiasm can only be matched by that of the industry, which today has roundly welcomed the decision that he took back in July to increase the size of this auction. That demonstrates that, if we have a Government who are consistent, positive and ambitious, the industry will respond and will back their plans. Can my right hon. Friend assure the House that the great start that he has made will be continued with a consistent plan under this Government, so that businesses can invest for the long term, knowing that the Government will always back them?
Ed Miliband
My hon. Friend makes a typically eloquent point. This is about a partnership with private industry. The truth is that much of the investment that we need for the clean power mission will come from the private sector, and I suspect that there is cross-party agreement on that. We on the Government Benches have a difference with the Opposition, though, because we believe that a lot of that comes from breaking down the barriers to planning and grid infrastructure, which is a massive challenge for supply chains and skills. There is also a role for what we call catalytic public investment, levering in extra private investment.
The other point that my hon. Friend makes is absolutely right. There is huge enthusiasm in the private sector and industry more generally for this sense of mission for the country. We want this mission to involve every business that has an interest in this area, and I believe that we can achieve that.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
We Liberal Democrats very much welcome the results of this round. It is a significant improvement on last year, when the previous Conservative Government completely failed, with zero bids from the onshore wind developers.
The results show that the CfD programme is back on track. They demonstrate the power of industry and Government working together to identify a fixed problem, so that we can widen the level of private sector investment we bring in, which is required for a clean power system transition.
Britain’s unique geography, with its abundance of natural resources, is an asset. We must harness the wind and the world’s largest tides. It is hugely encouraging that a record-breaking amount of solar capacity has been procured. Whatever the Conservatives are saying now about their record in government, solar targets were repeatedly missed, and this round is a welcome change. Unlike the Conservative Government, who, as has been pointed out, left us at the whim of the global oil and gas market, this Government are making choices that will increase our energy independence and lower energy bills for our consumers.
Future allocation rounds, especially in the next few years, must continue to deliver increasing quantities of renewables. That can be achieved by setting ambitious budgets and bringing forward incremental reforms of the CfD regime. Can the Secretary of State assure me that this round is not just a one-off and that we will increase the pace of the CfD allocation rounds?
Ed Miliband
I thank the hon. Lady for her support and the warm tone that she uses. She is right that we face a big challenge as a country to get moving on the offshore wind Bill, the onshore wind Bill, solar on rooftops and ground-mounted solar. The truth is that CfD auctions have served us well and continue to do so. We inherited this auction halfway through the round, and we increased the budget substantially to make sure that it was a success. But the right thing for us to do—I think this is the main point that she is making—is to talk to industry about how we can make sure that future rounds are a success. I am very interested in how we can have a line of sight for industry, so that it can have the industrial certainty to plan ahead. The annual auction round is serving us well, but we need to work with industry to make sure that we land the clean power that we need and get the jobs here too.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
The Secretary of State is right to point out that the previous Government presided over the failed fifth auction round for the offshore wind sector. It was devastating. I congratulate him on achieving success for this important industry, but part of the measure of that success will be the wider industrial benefits, including good jobs. What action will he take to make sure that coastal communities such as mine see those jobs, as well as training and manufacturing?
Ed Miliband
My hon. Friend speaks with great experience—from both inside and outside this House—and I welcome her expertise on these issues. She is absolutely right that we have to face up to the fact that we are in a global race for these jobs. Investors are trying to decide whether to locate their blade factories and other investments in the UK or elsewhere. That is why we went into the election with a range of measures, including Great British Energy, the national wealth fund and the British jobs bonus. All are designed to achieve the re-industrialisation that my hon. Friend is talking about.
Dr Andrew Murrison (South West Wiltshire) (Con)
What consideration has the Secretary of State given to proposals for an interconnector from north Africa to the UK, bringing reliable solar and wind power at times when the wind is not blowing here and the sun is not shining?
Ed Miliband
I shall address this question at a more general level, for reasons the right hon. Gentleman might understand. I think we should be looking at all proposals that can maximise energy security. He is talking about the Xlinks proposal. I am obviously aware of that proposal, and know that we need to look at it in the broadest way. My view has always been that we need every source of power available, which is why I embrace nuclear, onshore wind, offshore wind, solar, tidal, carbon capture and storage—[Interruption.] And absolutely, as the right hon. Gentleman says from a sedentary position, oil and gas also have a crucial role in the transition.
Bill Esterson (Sefton Central) (Lab)
My right hon. Friend is correct that clean energy is by far the cheapest way to power the UK, as confirmed by industry bodies today in welcoming his announcement, but there will be intense international competition for investment. How does he foresee ensuring that we have the competitive advantage in attracting that investment for years to come?
Ed Miliband
Again, my hon. Friend speaks with great expertise. Part of it is about is having a Government who are committed to a proper industrial strategy and have the levers to make that strategy happen. There was an interesting divide between the Opposition, when they were in government, and us. Although, of course, America is a different-sized country from us, we see the Inflation Reduction Act as offering real lessons to us about how we can lever in private investment. We will not be able to do it on the scale of that Act, but these interventions can make a difference. There is also this crucial point: we care where the manufacturing happens, and we are determined to make sure that it happens in the UK.
Richard Tice (Boston and Skegness) (Reform)
Will the Secretary of State, who is obsessed with renewable energy, actually be honest with the British people? The truth is that the offshore wind turbine bids today are some 20% above current prices. The floating offshore wind bids are some three times the current prices. His Department says that this requires subsidies of some £1.5 billion a year. That is before the extra transmission costs, before constraint payments, before compensation payments for blighting my constituents’ countryside, and before the cost of back-up when the wind does not blow and the sun does not shine. Why will he not be honest and tell the truth: that renewable energy is more expensive, not cheaper?
Ed Miliband
I am interested by the hon. Gentleman’s intervention, because his manifesto is basically higher bills and to make people poorer. We do not need to look into the crystal ball; we just need to look at the record. The truth is that the cost of living crisis—the energy bills crisis—casts a long shadow in this country. It was caused not by a dependence on renewables but by our exposure to fossil fuels. He just needs to understand this basic point: whether fossil fuels are produced in this country or internationally, they are sold on the international market, and that is why the British people paid the price and the Government forked out £94 billion. The only way to get off the rollercoaster of international gas markets and take back control is to become a clean energy superpower.
Joani Reid (East Kilbride and Strathaven) (Lab)
I thank my right hon. Friend for his statement. This allocation round is testament to the continued success of the contracts for difference scheme. As we are now on course to produce more renewable energy than ever and we need to get that power to consumers, does he agree that we need the same political and financial commitment to the development of transmission infrastructure as we do to renewables?
Ed Miliband
I welcome my hon. Friend’s question. We need to be honest about this: we face what we can only describe as a crisis with our grid situation, because we have people wanting to connect to cheap, clean renewables and being offered dates in the 2030s—often late in the 2030s. We have industrial investments that we need to happen, for which dates in the 2030s are offered. Grid reform and, as part of that, planning reform is absolutely crucial for this Government and for any Government who are serious about this. I am afraid to say that the legacy of the last Government is disastrous when it comes to the grid. We will build the grid, and I look forward to support from all parts of the House from those who want to tackle fuel poverty and want lower energy bills.
Dave Doogan (Angus and Perthshire Glens) (SNP)
Fair play to the new Secretary of State: 5.3 GW of offshore wind is a great achievement, especially compared with the flat zero achieved by the Tories in auction round 5. It unlocks the vital Inch Cape array off my Angus constituency coast, and supports jobs in Montrose, as well as in Moray West, and there is also the game-changing Green Volt floating array off the north-east coast of Scotland. He highlights 1 GW of onshore wind, 8 MW of which is coming from England. Will he tell the House where the rest of that onshore energy is coming from? His target is 60 GW by 2030. How will he achieve that 9 GW a year from now until 2030?
Ed Miliband
I welcome the first part of the hon. Gentleman’s question, and even the second part. The only way this will work is if, whatever our differences—and we have large differences—we work on this task with every Government across the United Kingdom, whatever kind of Government that is. Gillian Martin, the Cabinet Secretary in Scotland, and I have had many conversations —probably more in a couple of months than were had in many years under the previous Government. That deliberate example of “country first, party second” has been set by the Prime Minister. We want to work with Governments across the UK to get the renewables revolution that we need if we are to make Britain a clean energy superpower.
Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)
It is a pleasure to welcome my right hon. Friend to his place, and to see him continuing to champion this really important change, which our constituents up and down the country have been crying out for. One of the key issues we find when we go into people’s homes is fuel poverty; it is real. Constituents talk about not being able to heat their home—that is the reality for many of my Vauxhall and Camberwell Green constituents—so they will welcome this announcement, which will mean cheaper bills and cleaner energy. Does he agree that we need to get on with this as quickly as possible? Given that bills are to increase from 1 October, residents want action from this Government at a fast pace, so that they can see their energy bills come down.
Ed Miliband
My hon. Friend is 100% right, and she puts it incredibly well. It is hard for Governments of all stripes to admit this truth, but when the 1 October price cap was announced, these matters were not within the previous Government’s control, and would not have been within ours, because of our exposure. These prices are set internationally. When Putin or the petro-states make decisions, they rebound on my hon. Friend’s constituents, and the only solution is our clean energy superpower mission. The truth is that it will take time, and it will be hard for her and my constituents, and the constituents of those across the House, but the answer has to be to go as fast as possible, because that is what gets us energy security and lower bills.
Sir Julian Lewis (New Forest East) (Con)
I warmly congratulate the Secretary of State on his appointment; he is the perfect example of a political renewable. As politicians, we all have a great deal to contribute to onshore wind. More seriously, does the Secretary of State share my concern that The Guardian last year and The Daily Telegraph this year both drew attention to the Chinese exploitation of Uyghur slave labour in the manufacture of so many solar panels? Other countries have been banning their import. How does he propose to deal with the matter, because I am sure that he shares my concern that we should not profit on the back of that sort of disgraceful exploitation?
Ed Miliband
I thank the right hon. Gentleman for his kind words. He raises an incredibly serious and important issue. When I came into Government, I asked for discussions across Government on this. Controls were in place, to be fair to the last Government, and as part of the ongoing solar taskforce, these issues were being looked at, but we need to kick the tyres on this, to make sure that the proper controls are in place. My Department is very happy to have discussions with him and other interested parties on those questions.
Perran Moon (Camborne and Redruth) (Lab)
I thank my right hon. Friend for his statement, and his tireless campaigning in favour of unleashing our renewable energy potential. As he knows, Cornwall is ready, willing and able to play a full part in the renewable energy transition. Can he outline his plans to support smaller, co-operative, community energy projects? When it comes to those, once again, Cornwall stands ready to act.
Ed Miliband
My hon. Friend asks a very important question, which gives me a chance to advertise the Second Reading of the Great British Energy Bill on Thursday. All are welcome—standing room only! As part of our plans for Great British Energy, we allocated £3 billion of the £8.3 billion that we set out in the election for what we call the local power plan to do what other countries such as Denmark and Germany do as a matter of course: unleash local renewables, with local communities, councils, community groups and co-ops being part of that. That is important, because it is a way to tackle fuel poverty and generate income for local communities. It is also important as a way of winning consent from local people. I look forward to my hon. Friend and others making a contribution on this question in that debate and others.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
If, as the Secretary of State says, he wants to offer a line of sight for industry, he should look more closely at the opportunities that come from the development of tidal stream, particularly through the creation of a supply chain from the ground up; that is always easier than recovering one that has already gone overseas. But that line of sight has to go in both directions, which is why developers in tidal stream energy are asking the Government to set a 1 GW deployment target. Will he listen to those representations now, and act on them?
Ed Miliband
When I came into office and examined the issues around pot 2, which covers tidal, I was very keen to make sure that we increased the tidal minimum, which we did by 50%. These are important discussions to continue. There is a dilemma here, as the right hon. Gentleman will know, which is that tidal remains relatively expensive, but the point of the tidal developers is that many technologies remained expensive until they were deployed at scale. These are hard questions, because they are about value for money and how much we invest in tidal, but my Department needs to have those important discussions.
Olivia Blake (Sheffield Hallam) (Lab)
I congratulate the Secretary of State and his Department on their excellent work. Given all that we have heard from the shadow Minister today, does my right hon. Friend agree that this Government’s record success shows that the main block to the sprint to renewables was the Conservative party?
Ed Miliband
My hon. Friend makes an important point about the legacy of the last Government. To widen her point, I would say to Members across the House—we need to be candid that this is hard for us as constituency MPs—that there is a need to connect debates in this House about fuel poverty and energy bills and the decisions that are being made in our areas. Candidly, unless we build the grid, solar and onshore wind, we will never get off the rollercoaster of international gas markets. All of us face a choice. We need a public debate about this, because if we are to tackle fuel poverty and do the things that I described, building is required, and we need to make that happen.
James Wild (North West Norfolk) (Con)
I gently say to the Secretary of State that he promised at the general election to bring energy bills down by £300. They are now going up by 10% in October. When will my constituents see the reductions that those in his party promised—or did they not mean it?
Ed Miliband
I think that tonight, the hon. Gentleman will think that that was not a very smart point to make. Weeks after we came into office, the price cap went up. I have explained why the price cap went up—because of our reliance on international gas markets. The decision that he has to make is this: does he support our mission to make Britain a clean energy superpower in order to bring bills down, or does he not?
Tracy Gilbert (Edinburgh North and Leith) (Lab)
There is one notable absence from the allocation round results today, which is Berwick Bank wind farm. Located in the North sea, Berwick Bank has the potential to deliver up to 4.1 GW of clean electricity, and to lead to further investment in the supply chain and manufacturing. The port of Leith in my constituency is a prime location for the project, but we are still waiting to hear about the consent. Can the Secretary of State confirm that he will push the Scottish Government to speed up their section 36 consent process, so that Berwick Bank can come forward in the next allocation round and we can get on with delivering a sprint to clean energy?
Ed Miliband
I am glad that my hon. Friend has raised that point. We face planning decisions and questions at a policy level, if I can put it that way, right across the United Kingdom, including in Scotland and in England. We will work with the Scottish Government and others to make sure that we have a planning system that is fit for purpose, and that can build the clean energy that we need.
Lee Anderson (Ashfield) (Reform)
This Secretary of State is living in a completely different world from my constituents, because they are not asking for this on the doorstep at all. By the way, he is quite happy to spend £11.6 billion on climate aid abroad and £8.5 billion on GB Energy, yet rob our pensioners of £300 at the same time. But I will give him the benefit of the doubt. When will my pensioners in Ashfield receive significant discounts on their fuel bills, and of how much?
Ed Miliband
I thought that the hon. Gentleman’s party supported a publicly owned energy company, but I may be wrong about that. I can absolutely say that this is the way to deliver lower bills for his constituents. [Hon. Members: “When?”] Members can shout all they like—I know that this is hard for the hon. Gentleman—but the reality they must face is this: does he believe that a continuing reliance on fossil fuels, and this country saying no to renewables, which I think is their position, will give us energy security? The truth is it will not. [Interruption.] The hon. Gentleman says that he agrees with me; well, I look forward to him supporting our clean energy superpower mission.
Oliver Ryan (Burnley) (Lab/Co-op)
I welcome this phenomenal, record-breaking achievement from the Secretary of State, which represents a significant milestone towards clean power by 2030. Let us see more projects in Burnley. Does he agree that the best way to protect my constituents’ energy bills from price shocks, and the patriotic thing to do, is to ensure our nation’s energy security through home-grown clean power? That will lower energy bills and give tyrants like Putin a bloody nose at the same time.
Ed Miliband
I agree 100%. The notion that our exposure to fossil fuels as a country gives us security is belied by what has happened over the last few years; as the Prime Minister often says, it means that Putin’s boot is on our throat. My hon. Friend talks about this patriotic mission, and he is completely right. Other parties in this House have a decision to make on Thursday: will they support the Great British Energy Bill? We have public ownership of our energy system in Britain—foreign public ownership, by state-owned companies from abroad. We welcome that investment, but we also want British public ownership. I very much hope that other parties will learn the lessons of their election defeat and support our Bill on Thursday.
Madam Deputy Speaker (Caroline Nokes)
To be helpful to Members, I gently point out that it is important that they be here for the start of a statement if they wish to be called to ask a question. I will be very kind today. I call Claire Young.
Claire Young (Thornbury and Yate) (LD)
Thank you, Madam Deputy Speaker. I thank the Secretary of State for his statement. The latest allocation round is good news and should be welcomed, especially after the fiasco of the last round. It is vital that Britain invests in our sustainable green energy production, so that we can guarantee our energy security and lead the world as a green powerhouse. However, the only way that we can achieve that is if we also push ahead with energy storage and ensure that we boost our capacity to retain the energy that is generated, so what steps is the Department taking to accelerate the roll-out of new storage solutions, including green hydrogen?
Ed Miliband
The hon. Lady, whom I welcome to her place, makes an important point. We often get questions about what to do in an intermittent system. We need different forms of both dispatchable power and energy storage. One project that my Department is working on—continuing some of the work of the previous Government—is long-duration energy storage and battery technology. Personally, I think that the system continues to underestimate the potential role of battery and long-duration storage, and we will say more about that in the months ahead.
Ms Polly Billington (East Thanet) (Lab)
The Conservatives continue to oppose our publicly owned clean power company despite widespread public support for it, including in my constituency. Does the Secretary of State recognise the absurdity of the Opposition’s arguments? They are quite happy for public ownership of energy in this country, as long it is by foreign Governments, not UK citizens.
Ed Miliband
My hon. Friend, who has great expertise on these issues, makes an important point. We welcome the success of Ørsted in today’s allocation round for the Hornsea wind farms. It is great for Danish taxpayers that they will get some benefit from it, and it is great for Britain that we will get the investment, but as the Prime Minister often asks, why not Britain as well? Why should we not invest in clean energy? Why should our taxpayers not benefit from this? Why should we not create jobs in this country as well as accelerating clean power? It seems a simple and logical proposition to me.
Shaun Davies (Telford) (Lab)
The Secretary of State will know from his recent visit to Telford that businesses right across the country, including in my constituency, want to partner with the Government on this agenda. Will this statement and future announcements mean that those private sector businesses, which want to put their skills and money into this agenda, and take risks on behalf of the Government and the country to make us a clean energy superpower, have the Secretary of State’s backing?
Ed Miliband
My hon. Friend is absolutely right. I very much enjoyed my visit to Telford, where I spoke with local business. It is easy to think about these things in very macro terms, of how many gigawatts and so on—the kind of thing I like talking about—but he is right that this is as much, if not more, about all the jobs that we can create in the supply chain. People in this country want hope and change, and this will deliver it.
Mr Luke Charters (York Outer) (Lab)
I welcome the auction increasing solar capacity. There are great projects in my constituency, funded via that scheme, such as Hessay solar. Will the Secretary of State visit sunny York to see the site once it is complete, and does he share my conviction that solar will be critical in the energy mix if we are to reduce our dependence on foreign oil and gas?
Ed Miliband
I very much welcome my hon. Friend’s embrace of solar as part of the energy mix. It is really important to say this: we need more rooftop solar. Lots of people in this House ask, “Why don’t we do more on rooftops?”, and I agree with them. There is also an important role for ground-mounted solar, however. I very much look forward to coming to York at some point to see the projects he talks about.
Henry Tufnell (Mid and South Pembrokeshire) (Lab)
I welcome my right hon. Friend’s statement, for which I thank him. It is incredibly exciting and marks a complete change from Conservative party policy. The Celtic sea, off the coast of my constituency, has the unique conditions of deep water and strong winds, offering us the opportunity to be a global leader in the new technologies of floating offshore wind. However, those unique conditions require a unique approach from Government. As we look forward to allocation round 7, will the Secretary of State join me in working to refresh the approach in the auction so that more support goes towards FLOW projects in autumn 2025?
Ed Miliband
My hon. Friend is a great champion of floating wind in the Celtic sea. He is right: we are proud of the 400 MW project in this round. We need to look—including in the auction round, through GB Energy and in other ways—at how we can build on our advantages in crucial floating wind technology, take the opportunities that they provide, and have the industrial capacity. I look forward to discussions with him and other colleagues on how we make that happen.
Energy Security and Net Zero
Ed Miliband Excerpts(3 months, 2 weeks ago)
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James Wild
Plans for 90 miles of pylons from Lincolnshire to my North West Norfolk constituency and new substations are strongly opposed by local communities. Will the Secretary of State commit to a review of network technologies, and consider a presumption in favour of underground or offshore proposals?
Edward Miliband
I will look at all proposals, but I think the hon. Gentleman knows that underground cables cost six to 10 times more; that is why the last Government did not agree to them.
[Official Report, 18 July 2024; Vol. 752, c. 206.]
Written correction submitted by the Secretary of State for Energy Security and Net Zero, the right hon. Member for Doncaster North (Ed Miliband):
Edward Miliband
I will look at all proposals, but I think the hon. Gentleman knows that underground cables cost five to 10 times more; that is why the last Government did not agree to them.
Sizewell A Nuclear Site: Direction to Nuclear Decommissioning Authority
Ed Miliband Excerpts(4 months, 3 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
I am today laying a new designation direction to the Nuclear Decommissioning Authority in respect of the Sizewell A nuclear site, which amends the existing direction. The direction has been given in accordance with sections 3 and 5 of the Energy Act 2004, with the consent of Nuclear Restoration Services Ltd, which controls the site.
This direction will end the Nuclear Decommissioning Authority’s responsibilities under the Energy Act 2004 for specific land and buildings on the Sizewell A nuclear site, so that the land can be sold to EDF and become part of the Sizewell B nuclear site. This will facilitate the development of new nuclear at the Sizewell C nuclear site.
[HCWS25]
Great British Energy
Ed Miliband Excerpts(4 months, 3 weeks ago)
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The Secretary of State for Energy Security and Net Zero (Ed Miliband)
Our country faces huge challenges. More than two years on from Russia’s invasion of Ukraine, families and businesses continue to pay the price for Britain’s energy insecurity. Bills remain hundreds of pounds higher than before the energy crisis began and are expected to rise again soon. At the same time, we are confronted by the climate crisis all around us, not a future threat but a present reality, and there is an unmet demand for good jobs and economic opportunities all across Britain.
In 2024, the answers to all these challenges point in the same direction: investing in clean energy at speed and scale. That is why making Britain a clean energy superpower by 2030 is one of the Prime Minister’s five missions, with the biggest investment in home-grown clean energy in British history.
I am pleased to say that we are already delivering on one of the Government’s first steps for change by setting up Great British Energy, a publicly owned company headquartered in Scotland, to invest in clean, home-grown energy.
Today, we are reaching a major milestone to help establish Great British Energy by introducing the Great British Energy Bill to Parliament. I am also announcing Great British Energy’s first major partnership, with the Crown Estate, as well as publishing our founding statement to outline Great British Energy’s mission and functions.
Great British Energy’s first major partnership will bring together two national institutions for the benefit of the British people. The Crown Estate brings a £16 billion portfolio of land and sea bed that returns its profits to the Government, long-established expertise to enable swift action, and new borrowing powers as announced in the King’s Speech. Great British Energy will bring the strategic industrial policy that the state can provide, as well as its own ability to invest.
The Crown Estate estimates this partnership will deliver up to 20 to 30 GW of new offshore wind developments reaching sea bed lease stage by 2030. It will help boost Britain’s energy independence, and cut the time it takes to get offshore wind projects operating and delivering power to homes by up to half.
The UK Government are in discussions with the Scottish Government and Crown Estate Scotland on how Great British Energy could help to support new development and investment in Scotland.
Today’s publication, which I will place in the Library of the House later, sets out what Great British Energy is, why it is needed, what its structure will be, what role it will play and what the next steps are. Great British Energy will have five key functions:
Project development—leading projects through development stages to speed up their delivery, while capturing more value for the British public.
Project investment—investing in energy projects alongside the private sector, helping get them off the ground.
Local power plan—supporting local energy generation projects through working with local authorities, combined authorities and communities.
Supply chains—building supply chains across the UK, boosting energy independence and creating jobs.
Great British Nuclear—exploring how Great British Energy and Great British Nuclear will work together, including considering how Great British Nuclear functions will fit with Great British Energy.
I will ensure that we establish Great British Energy at pace, so that it can make an early impact, while also setting it up for long term success. I will continue to take the important steps to put Great British Energy on a delivery footing, including announcing the location in Scotland of its headquarters and undertaking a programme of stakeholder engagement to further develop our policy approach. I look forward to keeping the House updated throughout this process.
[HCWS20]