Strangford Lough: Tidal Wave Energy

Graham Stuart Excerpts

Tuesday 10th January 2023 Commons Chamber

[The Minister for Energy and Climate (Graham Stuart)]

I congratulate the hon. Member for Strangford (Jim Shannon). As I look around the Chamber, I am taken back to that Westminster Hall debate to which he referred; it feels like the gang is back together. This is an important debate, and I am pleased to see that he continues to be a champion for his constituents on the subject. I also see colleagues who were at that debate, including the right hon. Member for Orkney and Shetland (Mr Carmichael), who led it.

I will touch on energy support, which the hon. Gentleman referred to. After Putin’s barbarous invasion of Ukraine, we saw people’s energy bills soaring, and they were forced to turn their minds to the meter before turning up the thermostat in their homes. In that context, the Government were and are determined to do all they can to help the people of this country, including those in Northern Ireland.

In December, I was delighted to announce that all households in Northern Ireland would receive a single, one-off £600 payment to help with their energy bills. Payments will start this month. The funding has been provided to the energy suppliers to go out to those families. I hear the points that the hon. Gentleman made about the practicalities of that. In a market for which we are not normally responsible, we were determined to find a way to reach them, and we did that. I pay tribute to my officials who put in an astonishing amount of work to stand that up and get it going. That payment comes on top of the package of unprecedented assistance with energy bills that the UK Government have already provided, including the energy price guarantee, which has reduced the energy costs of every family, and the energy bills discount scheme, which has reduced them for every business in Northern Ireland as well.

As the hon. Gentleman rightly highlighted, we are here not just to think about the short term and this winter, but to look to next winter and all the winters to come, as we seek to build a secure energy supply that drives up growth, drives down bills and meets our net zero ambitions. The best way to do that is by investing in affordable, reliable, clean energy, because energy security and net zero go hand in hand.

The Government take their net zero commitment absolutely seriously. If we are to accelerate away from fossil fuels, rolling out renewable energy is fundamental. That is why, in last year’s British energy security strategy, we reaffirmed our commitment to renewables. That means making the absolute most of the opportunities that our geology and geography afford us to deploy transformative technologies, as the hon. Gentleman highlighted. Of course, tidal is an element of that. Tidal stream energy is a home-grown industry with considerable promise to deliver affordable, clean, secure energy for households and businesses across the country. I could not be more proud of the fact that we are leading the world in deploying offshore wind, which is another technology. Off the coast of my Beverley and Holderness constituency, there is the biggest wind farm in the world, joining the second, third and fourth largest windfarms in the world, with all of them generating energy from the high winds of the North sea.

Of course, with Britain being Britain, the weather can change from windy and sunny to still and cloudy in seconds. Even when that happens, we can still rely on the tides, as the hon. Gentleman rightly said. Tidal energy provides an opportunity to boost the resilience and diversity of our renewable energy system. It is an area where, with a raft of brilliant developers designing and building tidal stream devices in the UK, we currently lead the world. As he rightly said, let us not blow the opportunity that that provides us.

We have Europe’s foremost tidal and wave energy testing centre in the constituency of the right hon. Member for Orkney and Shetland: the European Marine Energy Centre in Orkney. We also have new marine energy hubs developing across the country, from Morlais on Anglesey to the Perpetuus Tidal Energy Centre on the Isle of Wight in England. Thanks in large part to £175 million in innovation funding for wave and tidal power research provided by successive Governments, as of last August our waters were home to half the world’s total deployment. Thanks to the extensive support afforded by the renewables obligation mechanism, in 2018 we were able to build the largest tidal stream generating array in the world in the fast-moving waters of the Pentland firth.

The Government remain open to considering well-developed proposals for harnessing the tidal range energy in the bays and estuaries around our coastlines, including, as the hon. Gentleman said, up and down the west coast. That includes barrage schemes and other alternatives. Any such proposal would need to demonstrate strong evidence of value for money in the context of other low-carbon technologies, as well as details of its associated energy system benefits and environmental impact mitigation strategies, before the Government could take a view on its potential or on the funding models appropriate for exploration. Revised criteria for a well-developed proposal will be published in the energy national policy statement which is coming out very soon.

[Jim Shannon]

In the last portion of my contribution, I referred to a Canadian company—I understand the right hon. Member for Orkney and Shetland is aware of it, too—which is keen to harness the tidal water movement of the narrows. I am a great believer that when we move forward, we can have partnerships between Government and independent companies to deliver that. Companies are in the business of making money and the Government are in the business of producing green energy, which I think they want to promote. Is that one of those things where the Minister could be instrumental in being positive and helpful?

[Graham Stuart]

That leads me naturally on to our system. What we try to do across all technologies, places and companies is to create an architecture that is fair, transparent and predictable—as much as that is possible. It therefore does not depend on me being sold on any particular company or solution, but allows, through decent mechanisms, the best to rise to the top. That is very much our aim.

Much of the success of tidal stream to date is down to contracts for difference, which the Government have produced and which I am delighted about. This is our flagship mechanism for supporting the cost-effective delivery of renewable energy, ensuring that the nation’s tidal stream innovators have the opportunity to bring down the costs of the technology and learn the lessons from being the first in the world to deploy it at scale. I am sure that Members were, like me, delighted that last year the Government established a ringfenced budget of £20 million for tidal stream developments in pot 2 of the fourth contracts for difference allocation round. This saw four tidal stream projects win contracts totalling 40 MW at a strike price of £178.54 per MWh. To put that into perspective, only 36 MW of tidal stream was deployed worldwide between 2010 and 2020. This is the first time that tidal stream power has been procured at this scale.

[Mr Carmichael]

I was beyond delighted. I am on the record as having congratulated the Government many times on the commitment in AR4. We are seeing not just public money going into tidal stream, but private finance, and that really is the proof of the pudding. What we need now, though—I think the Minister knows where I am going with this—is a commitment to continue that in AR5. He has seen already what is possible with that ringfenced pot, but we need to keep it going.

[Graham Stuart]

Further information—we released some information before Christmas—for AR5 will come out shortly ahead of the launch of AR5, which of course has now been moved on to an annual basis, giving further confidence, I hope, to the market.

The energy transition must involve each and every part of our United Kingdom. As an integral part of the UK, that of course means Northern Ireland where, energy being a devolved matter, contracts for difference do not actually operate. However, in the Northern Ireland energy strategy, Northern Ireland set out a path to net zero energy and to meet 70% of electricity consumption from a diverse mix of renewable sources by 2030. The Government are committed to supporting Northern Ireland to succeed in that. If we are to get it right, places like Strangford lough will be critical.

I thank the hon. Member for Strangford and all those involved for their support in making the pilot project a success. Strangford lough is a world first: a commercial-scale tidal energy project that by September 2012 had produced 5 GWh of tidal power since its commissioning in 2008—equivalent to the annual power consumption of 1,500 households.

Strangford shows that tidal can work; it was a major demonstrator in that sense. It shows that it is safe, too: I am delighted that Strangford lough has had no major impact on marine life, for instance. That is why we have provided it with £5.2 million of funding, in addition to £500,000 from Northern Ireland Electricity under its Smart scheme. In 2011, the project qualified to benefit from the marine renewables deployment fund, after passing the UK Government’s operating performance criteria.

It is not just Strangford lough; we continue to invest in renewable energy across Northern Ireland. Through UK Research and Innovation, we have provided Artemis Technologies with £33 million from the Strength in Places fund to drive the decarbonisation of maritime transport. Last year, Wrightbus secured an £11.2 million investment from the Department for Business, Energy and Industrial Strategy to develop a low-cost hydrogen fuel cell technology and create a hydrogen centre of excellence—all part of a £54 million package.

In conclusion, it is clear that this Government are taking action on all elements of energy in Northern Ireland. We are bringing energy bills down right now, and we are harnessing the power of clean, secure, affordable energy to build an economy that is fit for the future. That includes a sound track record of supporting the tidal stream industry, where we are on the cusp of commercialisation. With excellent export potential, we are ready to lead the world, and I am confident that the tidal stream industry will continue to develop across every corner of the United Kingdom as we work together to bring green growth to each one of our countries.

In the seconds that remain, I want to go back to the questions that the hon. Gentleman asked. One was about the tidal taskforce, which I am happy to discuss further with him. Having a taskforce for everything is not necessarily the right thing; I want to make sure that we have the right architecture. We will see what happens with the CfDs and make an announcement in due course, but assuming that we get the broad architecture right, given the state of tidal stream—I will leave leadership for the moment—I am hopeful for the future.

The hon. Gentleman mentioned a visit. I would be delighted to accept, in due course—