(2 months ago)
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I absolutely love that—I am going to make the right hon. Lady a dame in my first honours list. It is an absolute disgrace that people in rural Britain pay a premium to get renewables, even though it is us generating the electricity. The standing charge should be the subject of our next discussion.
Those of us in the highlands, and indeed in many other parts of Britain, have long, dark, windy and cold winters. When many people open the curtains in the morning, they look out on to a wind farm selling cheap, green energy to the big cities. The remote highlands and islands, the Scottish Borders, Wales, Cumbria and the west country are among our poorest areas.
Does my hon. Friend agree that community benefit and compensation for communities is important for not only the communities that experience these projects but the planning system? Take it from a former planning inspector: if we had a sensible and predictable level of community benefit, it would make granting planning permission smoother, with fewer objections.
There is a recent change to planning in Scotland—I am unsure whether it extends to England—called national planning framework 4, which makes the economic benefit to the community part of the criteria for getting a plan in, so we are moving towards what my hon. Friend describes.
The areas I mentioned are among our poorest. They suffer from the highest level of fuel poverty, an older population, lack of affordable housing, poor transport infrastructure, struggling market towns, lower wages, and often worse education and health services than cities. Rural people have higher costs and lower incomes.
(2 months, 1 week ago)
Commons ChamberAll 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.
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.
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?
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.
(3 months, 1 week ago)
Commons ChamberAs I progress with my speech, my hon. Friend will hear that our focus on local authorities, local decision making and local involvement is crucial. Let us ensure that our emerging technologies, which have the potential to be hugely valuable, are not overlooked or forced to seek support from abroad.
Does my hon. Friend agree that the Secretary of State should take on board one of the emerging technologies that could deliver the most for Great British Energy: the potential for tidal range energy? In a previous life, I was responsible for the consenting of the Swansea tidal lagoon, which unfortunately the previous Government failed to fund. It is the second biggest tidal range in the world and could be a massive success story for Great British Energy and the UK. Does she agree that the Secretary of State should take that on board as a key objective of Great British Energy?
I totally agree, and I am sure that the Government will agree too. A lot of these decisions are ultimately about value for money; as these tidal range technologies come on board, they can become cheaper. I hear the Government are saying that this is exactly the plan: that, where it is currently expensive, Great British Energy can come in and provide support. We understand and support that principle.
This new Government must ensure that they have clear and consistent messages. Delays to the phase-out dates of fossil-fuel vehicles and boilers, as we saw under the last Government, have sent mixed signals to investors, businesses and consumers. We hope that GB Energy will go some way in providing confidence to other investment bodies and the wider industry that Britain’s green economy is open for business.
We Liberal Democrats realise the importance of community buy-in. The new Government must put local voices at the centre of the journey to deliver net zero. We need to win hearts and minds to persuade people that net zero projects are good for their communities, for their pockets and for our future national economy.
The Minister shakes his head, but if we have shut down all that capacity—if we cannot generate the electricity ourselves—we will have to get it from other places. There are phenomena called wind droughts, which can go on for very long periods. What are we going to do when the wind turbines are not turning and the sun is not shining during a very cold spell in the middle of winter? We had one or two close scares this winter. The generating margin that we used to enjoy has gone. The great risk of accelerating the decarbonisation of the electricity system is that there will be more appeals for voluntary or compulsory restraint from industry, because industry is the hidden customer that is shut off when we are short of electricity, or we risk more brownouts or even blackouts. That not impossible, so where is the data that the Minister is placing so much confidence in that shows these forecasts to be wrong? I am not making them off my own bat—there are plenty of people out there making them.
That brings me to the final brief point I want to make. I understand the logic that the Minister explained in his letter to me.
I am sure that a Member with the experience of the hon. Gentleman will know that Britain returned to being a net exporter of electricity last year, so assuming that there will be additional costs from importing electricity due to the transition to renewables simply does not stack up. Does he also recognise that when the sun does not shine and the wind does not blow, the tide still rises and falls twice a day, 365 days a year? A future resting on renewable energy is possible, and we need to have that ambition for the United Kingdom.
I absolutely share that ambition, but the question is how quickly we can get there. At the moment, tidal power produces almost nothing as a proportion of our electricity requirement. It is also intermittent, by the way: four times a day, there is a period during which it does not generate anything and we need to replace that supply with other things. The real challenge is how we get to the objective that the hon. Gentleman and I share in a rational way that carries the British public with us. It is noticeable that what people are complaining about most is the price on their electricity bills. Today, the constraint costs, balancing costs, infrastructure costs and import costs that I mentioned make up perhaps 50% of domestic electricity bills. If that figure is wrong, let the Minister produce some figures of his own that explain what proportion of consumers’ bills arises from all those factors, because it is not explained. There is no transparency on our electricity bills.
On the hon. Gentleman’s point about the objective of decarbonisation, we are not going to get there at all if we lose the public—if the lights start browning out or going out, and we find that we cannot meet demand. To some extent, we are piling up that demand by decarbonising transport and other parts of the system, including decarbonising building heating through heat pumps. The demand for electricity will rise, but our capacity to produce it reliably at all hours and in all conditions is being reduced.
On the question of imports and exports, we might become a net exporter of electricity, but perhaps the hon. Gentleman can explain how the price at which we are exporting compares with the price at which we are importing. The difficulty is that we will be importing when the wind is not blowing or the sun is not shining, and it is likely that the wind will not be blowing across the entirety of the North sea, so we will be importing fossil fuel-generated power at a very high cost to compensate for the fact that we have got rid of our own gas production and gas-fired power stations. I am not sure that situation will be very good.
If the hon. Gentleman would look at the Arup report on the Tarchon interconnector, which will come into my constituency under the present plans, he will see that that interconnector will not actually contribute very much to security of supply, but will be used almost entirely to export when there is too much wind. It will export at below the strike price because there is too much wind and it will export at a loss, and the cost will finish up on the bills of the British consumer. So the British consumer is paying for all the investment, paying for the strike prices, paying for the infrastructure and then paying to subsidise the exports to the Germans, who will be the beneficiaries of all this investment.
I appeal to the Minister to just read the Arup report and look at this. That is why I asked about the offshore co-ordination support scheme work that has been done. I am not going to ask for the impossible and ask him to revive the OCSS, but I would like from him an assurance that the work ESO has done will not simply be thrown away and wasted. Please can he assure the House that that work will be incorporated into the spatial plan that ESO says it wants to produce? Some very interesting innovations came out of that work, but there was also a lot of work discrediting the long-term viability of Norwich to Tilbury and, looking on a different timeframe—in the longer term—that could produce a much more viable alternative than is currently on the table. There is still work to be done on that, but I have no doubt that Fintan Slye will want to do that work as part of his project for the Government.
I would like to know that the Minister is going to support the holistic approach to which the Secretary of State referred, because Norwich to Tilbury is certainly not the product of a strategic approach to electricity grid upgrading. We need a much more strategic approach, and I am looking for that from this Government, but it certainly will not come from this Bill.