Energy Bill [Lords]

Baroness Laing of Elderslie Excerpts

Consideration of Lords message
Wednesday 18th October 2023 Commons Chamber

[Chris Skidmore (Kingswood) (Con)]

I appreciate the Minister’s argument, but that is technically not what the amendment says; there is no requirement for legislative reform, only one to bring forward proposals. It is unfair to mislead the House—

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. It is not misleading the House; the Minister might possibly have done so inadvertently, but he would not have been misleading the House.

[Chris Skidmore]

My apologies to the Minister. I did not mean to make accusations so strongly. The challenge here is that subsection (4) of the new clause set out in the amendment contains no reference to legislation such as the Minister suggested. That is my point.

[Andrew Bowie]

I thank my right hon. Friend for his intervention. It is the Department’s view and mine that the amendment would result in legislation being required. As I said, we absolutely understand the importance of this, which is why I launched the consultation process as I did. It is why we are engaging so closely with the sector and all interested parties so that we can get this consultation up and running and out as soon as possible, and identify those barriers preventing community energy groups from accessing the market. I know that he has a passion in this area and holds strong convictions on it. I would be happy to continue to work with him, alongside the community energy contact group, as we develop our proposals for the consultation.

I also wish to reassure the House that we will continue to work closely with the sector to support its important work, both through our existing support, including, for example, the £10 million community energy fund, and in carrying out the consultation, to which we have already committed.

[Madam Deputy Speaker]

I call the Opposition spokesman.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

That was a disappointing and specious defence by the Minister of his intention not to proceed with these proposals from the other place. He knows perfectly well what the barriers to developing community energy are; we have debated them at length during the passage of the Bill. So I am not sure it is going to take a forensic panel of inquiry to find out what those details are before the Government can act on any of these things.

We are on the last lap of the Energy Bill and it is particularly disappointing that we are hearing what we are hearing today about this Lords amendment. The Bill, which has been with us in both Houses for well over a year now, puts into place many of the essential tools that will enable energy to progress towards a low-carbon, net zero future. The Opposition have consistently supported the Bill, while endeavouring during its passage to strengthen it in its low carbon mission. We have tried to place into the Bill further elements to make it the best it can be in pursuit of its low-carbon mission, and there have been some junctures during its passage when the Minister has endeavoured to take on board those suggestions for strengthening it, in some instances by drafting a Government amendment that meets the purport of our amendments. I am grateful to the Minister for those changes to the Bill and for the collegiate way in which the Bill has been debated and decided upon.

However, there are exceptions to that, one of which is in front of us today. As the Minister states, it relates to community and local energy, which I am sure Members will agree is and will be an important part of the future low carbon energy landscape. It has the potential to make a serious contribution to our local carbon arsenal of plant, while being funded and supported by the community in which that plant is situated, making it easier to develop and able to restore the benefits of its operation to the community itself.

Labour has committed to providing strong support for community energy, including the assistance of Great British Energy, the company we propose to set up to support the development of local low carbon plant with community energy schemes. The potential for such schemes to contribute to the overall installation of low carbon systems in the UK is immense, with perhaps 8 GW of install capacity added to the national stock through such local schemes. I remind the House that that is getting on towards the equivalent capacity of three nuclear power stations such as Hinkley Point C.

--- Later in debate ---

[Chris Skidmore]

I rise in support of the amendment. It is very similar to an amendment that I tabled during the previous stage of the Bill in the Commons. I echo the comments that have been made about the amendment being uncontentious. It calls for additional consultation—if the Government want me to do that, I will do it myself for the community energy groups.

The net zero review held several roundtables with a number of community energy groups across the country. Indeed, they were one of the reasons why pillar 4 in the final report, “Mission Zero: Independent Review of Net Zero”, was

“Net Zero and the Community”.

One of the key findings of the review was that over half of all net zero decisions will need to be taken not by Government or Parliament, but outside this Chamber. We can turbocharge our transition towards net zero if we can empower and support more community energy groups to take the action that needs to be taken.

Indeed, the only single wind turbine that has been built in the United Kingdom in the past year has been delivered through community energy. I am proud that it is in my home city of Bristol. Ambition Lawrence Weston has seen its 4.25 MW turbine built and it will now power 3,500 homes for the community energy project. The £4 million to pay for the project was raised by the group—it did not come cap in hand to Government—and now it will see an economic return of £140,000 a year as a result of the energy that will be sold to the grid. That is just one example of the myriad examples of net zero projects that demonstrate the economic opportunity that net zero can provide.

In Bristol, we also have the Bristol City Leap, which is a result of a £7 million investment from Bristol City Council. There has been £424 million of inward investment from the American company Ameresco Ltd to decarbonise the city’s district heat network. Community energy points the way for demonstrating that net zero is not a cost, despite what some may say, but an opportunity. We must seize that opportunity now, not just to tackle the climate crisis or reach our nationally determined contribution for 2030, because net zero is about 2030 not just about 2050. We cannot keep kicking the can down the road, somehow suggesting we are going to meet our carbon budgets. Meeting them now, today, is absolutely vital to ensure we can meet our climate commitments in future carbon budgets.

Community energy is here and now. We can get on with delivering net zero with the tools and technologies we have, and, above all, with the people we have—individuals and communities across the country. Community Energy England has 220 groups, a third of which would like to build onshore wind turbines, like Ambition Lawrence Weston. They want to get on with it. They are not often being paid to do this; they do it because they recognise what they can return to their communities. As a Conservative who believes in the power of local communities, we as a Government should be supporting local communities to the hilt to deliver on energy action.

When we look at the future of the grid, everything points to the fact that creating flexibilities on the edge of the grid enhances our energy security, allows us to return energy to the grid, frees up energy capacity elsewhere, and frees up our demand on oil and gas elsewhere. This is a no-brainer. I shall support Lords amendment 274B if it is pushed to a vote, although I will not push it to a vote myself. Nevertheless, it is vital that we send a clear message not just that we are committed to the net zero pathway—because it is the right and the economically important thing to do—but that we recognise that, when it comes to net zero, we need a big bang moment. We need to create little platoons of individuals and communities that are going out there writing their own net zero narratives and stories. For that reason, I will be supporting this Lords amendment today.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the SNP spokesman.

[Dave Doogan (Angus) (SNP)]

“Specious”, said His Majesty’s Opposition spokesperson about the arguments against this amendment, to which I would add, having listened to the Minister’s defence of the Government’s position on community energy, that it was also one of the more tendentious arguments that we have heard in this Chamber. I am not convinced that the Minister is absolutely fully signed up to that which he has been put out today to defend. I think he knows the importance of community generation and he is not content with the feet dragging that his Government are forcing him to come here to defend. This is another extremely negative decision by a Government who show no let-up in their disdain for community ambition for disaggregated generation infrastructure, or, in fact, for the climate. If we contrast that ambition with the Tories’ now messianic devotion to the cult of nuclear, we see that next year everyone across these islands will be well shot of them, and nowhere more so will that be clear than in the energy space.

Lords amendment 274B is a perfectly sensible ambition. It is a pragmatic amendment by their lordships. It is balanced and deliverable, works with the grain of local ambition, and is destined to unlock significant value in the green transition. It would unlock local enterprise and it would unlock value-add in the real economy and promote community wellbeing. There is nothing not to recommend about this ambition; it is quite clear that it has positives for the people and for our communities. It is no wonder, then, that this Tory Government will reject it out of hand. They have no interest in empowering the people or powering the green revolution. They would rather throw billions on to our energy bills to pay for nuclear, while they proscribed onshore wind in England up until September this year, leaving Scotland to do all the heavy lifting as usual.

Why will these Tories not follow the SNP Scottish Government’s lead in this priority? The Scottish Government’s community and renewable energy scheme promotes community energy ownership across Scotland. CARES continues to help communities engage, participate in and benefit from the transition to net zero. Since 2010, CARES has offered advice and support to more than 900 organisations and assisted in the delivery of 600 community and locally owned renewable projects throughout Scotland, offering funding in the process of £58 million. Just to clarify, that is just in Scotland, which rather puts in the shade the £10 million on offer from the English Government to English community generation—whenever that happens. CARES accelerates progress towards the Scottish Government’s target of 2 GW of renewable energy to be locally or community owned by 2030. The scheme assists in the delivery of both the Scottish Government’s energy strategy and heat in buildings strategy through the provision of loan finance, grant funding and specialist advice.

In Scotland, we see a Government of the people working with the people for their shared ambitions, but here in Westminster we see only the veneer of an Administration masking the infighting, bitter division and self-interest of that Tory party.

The Scottish Government’s community good practice principles, which have been widely adopted across the renewables industry, promote the provision of community benefits at a national level. They promote the equivalent of £5,000 per installed megawatt per annum, index-linked for the life of the project. Over £22.8 million has been paid out in community benefits to Scottish communities in the 12 months since August 2021. England has a very similar scheme but—and it is a big Tory-shaped but—as these funds are in the greater part principally born of onshore wind development, and the Tories introduced a de facto ban on onshore wind in 2015, English communities have lost out on millions and millions of pounds in community funding thanks to this dysfunctional UK/English Government.