Oral Answers to Questions

Grant Shapps Excerpts

Tuesday 4th July 2023 Commons Chamber

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

14. What steps he is taking to support energy transition projects in Scotland.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

We are supporting Scotland through the North sea transition deal, contracts for difference for renewable energy, and more than £80 million of net zero innovation portfolio funding.

[Ian Blackford]

I thank the Secretary of State for that response, particularly in relation to CfDs. Will he commit today to a clear pathway for the true commercial-scale development of tidal stream energy? A ringfence in the CfD auction is welcome, but it is only scratching the surface of what the industry can deliver. Investors in projects are stalling, as they need long-term visibility. The industry—and, indeed, all of us—needs this technology to succeed. Let us unlock this predictable, renewable power and create an industry and sector that we can be proud of and that can be made on these islands. We need a commitment today that the ringfenced budget will increase, to allow costs to fall and true-scale projects to be delivered. If we want energy security, here is the pathway.

[Mr Speaker]

We are meant to be asking questions, not making statements.

[Grant Shapps]

Fortunately, the answer is pretty straightforward. As the right hon. Gentleman mentioned, we are doing tidal power in this CfD round. That is to be welcomed and we look forward to this industry expanding in the future, as some of the technicalities and technical difficulties are resolved. I know that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) has visited recently to see this in action.

[Dr Whitford]

Energy storage is vital to managing demand as we switch to renewable electricity. Pumped storage hydro is the most efficient large-scale storage method. UK capacity could be more than doubled by six projects across Scotland that have been shovel ready for more than five years. They take a long time to build, so why are the UK Government not supporting investment in infrastructure that is critical for our future energy security?

[Grant Shapps]

I have discussed this matter with SSE in relation to that particular hydro storage project, and my hon. Friend the Under-Secretary of State met MSPs yesterday to discuss the subject as well. We are keen to have this kind of hydro storage, which is why our plans allow for it to be taken forward. However, I have to say to Opposition Members—all of them—that it is no good just having one kind of storage or one kind of tidal power; we also need to protect the Scottish economy with oil and gas to make sure we are not subjected to Putin or any other dictator holding us to ransom over our energy security.

[Virginia Crosbie (Ynys Môn) (Con)]

It is good to hear that the Secretary of State is supporting the economy in Scotland, but my question is: how are the UK Government investing in grid capacity in Wales? In Wales, such investment is crucial if we are to support energy transition projects such as the Holyhead hydrogen hub, Minesto, Morlais, BP Mona, Lightsource BP and, of course, new nuclear at Wylfa.

[Grant Shapps]

Grid capacity in Scotland, Wales, England and Northern Ireland is at the top of our list. The Winser review has done a lot of work to look at how we can speed up the delivery of that capacity, given the big transition that is going on and this country’s big lead in renewables, which makes that necessary.

[Mr Speaker]

I call the Scottish National party spokesman.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

On pumped storage hydro, it is as though the Secretary of State just does not get it. It increases energy resilience and would reduce the £4.2 billion balancing costs that are getting paid out at the moment. The 1.5 GW Coire Glas scheme can be delivered in seven years, and it would power 3 million homes for a 24-hour period. The Government have found £700 million for Sizewell C and they have implemented cap and floor mechanisms for interconnectors, so why is he not having proper discussions with SSE about a cap and floor mechanism?

[Grant Shapps]

The Secretary of State does in fact get it, because we support the idea of having things such as hydro power. Again, I have to say that there is a choice where taxpayers’ money is spent. It has to be done competitively in the round. To be talking merely about storage and not the generation, including nuclear power, which is a key part of this country’s energy security future, simply means that the overall view that the SNP has is unbalanced when it comes to how we power our nations.

[Alan Brown]

The Secretary of State has proved he still does not get it—he is not having proper discussions with SSE. If we move to carbon capture and storage, the Climate Change Committee’s progress report identified “risks” and “significant risks” associated with industrial clusters and carbon dioxide storage, which proves it is nonsensical to have Acorn as a reserve. When will the Government announce the track 2 clusters and provide parity for Acorn? When does he envisage Acorn starting construction? That is vital to meet the 2030 targets.

[Grant Shapps]

As the hon. Gentleman knows, we have already pumped £40 million into Acorn. It is on the reserve list. He asks when; the answer is this year for track 2 and track 1 expansion. So I say it again: the Secretary of State does get it.

[Bill Esterson (Sefton Central) (Lab)]

2. What steps his Department is taking to help energy intensive industries decarbonise.

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[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

8. What recent assessment he has made of the impact of ending gas imports from Russia on energy security.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

Ending Russian imports in April 2022 has shown that Russian gas belongs in the past. Our system was well supplied last winter by North sea gas and reliable imports—a far cry from Labour’s energy surrender plan, sponsored by Just Stop Oil, which would put us back at square one and in the hands of despots such as Putin and his tyrannical regime.

[Mr Mohindra]

I welcome the Secretary of State’s answer. Could he explain what steps his Department is taking to ensure that no country will ever be able to hold the UK to ransom through our energy supply?

[Grant Shapps]

It is about having a balanced energy supply, which means renewables, nuclear power, and yes, where necessary, oil and gas licences—to do without them puts the security of every single person in this country at risk and means that household bills will go up. Sadly, that is exactly the policy of His Majesty’s official Opposition.

[Caroline Lucas (Brighton, Pavilion) (Green)]

A recent report by the Energy and Climate Intelligence Unit shows that, regardless of Ministers’ plans to expand domestic oil and gas production, imports of gas will continue to rise significantly unless we tackle demand. New oil and gas licences simply will not deliver energy security as the oil and gas is sold at global prices on international markets. They will cost the taxpayer dearly while being a disaster for the climate. Will the Government finally do what is needed by ruling out new licences and committing instead to measures that will genuinely make the UK energy secure, including a nationwide street-by-street home insulation programme, unblocking onshore wind, and installing new solar on every roof?

[Grant Shapps]

We have gone from 14% of our homes being insulated under the previous Government to nearly 50%—it will be 50% this year—and we have set up an energy taskforce to reduce the usage of energy and make it more efficient. However, the policy of the hon. Lady’s party, and that of the official Opposition, of importing all the oil and gas that we require and not providing new licences is simply insane. It means that every single family in Britain will be subject to the next tyrant like Putin, and that the carbon used will be double what is taken from the North sea. It is bonkers policy.

[Sir Christopher Chope (Christchurch) (Con)]

9. What assessment he has made of the potential impact of increases in the population on the ability to meet net zero targets.

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[Mr Laurence Robertson (Tewkesbury) (Con)]

10. What steps he is taking to increase the use of solar panels on building roofs; and if he will make a statement.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

The Government are supporting the installation of rooftop solar in numerous different ways: financial incentives, performance standards and the solar taskforce.

[Mr Robertson]

For years now, I have been trying to persuade Governments of all colours to change building regulations to require all new buildings to be fitted with solar panels. That would have the benefit of securing supply, reducing household bills considerably and helping us towards net zero, so why do we not do it?

[Grant Shapps]

I assure my hon. Friend that I am a great enthusiast for solar panels—I have had them on my home for the past 12 years, and they perform very well. I want to see more people do that. In fact, over that period, we have gone from virtually no renewables in our system—6.9%—to 43% in the last quarter. I am very keen for that expansion to go further and faster. We need to ensure that it is part of the building code, but we also want to make sure that other forms of renewables can be installed, so it is a balance between not being too prescriptive and making sure that we make speedy progress, particularly on all the commercial rooftops in this country.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

A few weeks ago, I had the pleasure of visiting an innovative housing project in Rumney in my constituency, which had solar panels in nearly all the new buildings but also ground source heat pumps, electric vehicle charging points and battery technology in the houses, bringing down bills for the residents while contributing to net zero. Will the Secretary of State join me in praising Cardiff’s Labour council and the Welsh Labour Government for the work they have done on this issue, and will he explain what we are doing to ensure greater manufacture of those technologies in this country?

[Grant Shapps]

Of course, I am delighted that the Barnett formula stretches so far in providing some of the excellent additions to those buildings. I just want to repeat that no Government have gone further and faster in the G7 than this one in introducing renewables and ensuring that they now power a very significant part of our grid. We want to go further and faster still, and we will make sure that things such as building codes help with that plan.

[Stephen Farry (North Down) (Alliance)]

11. What assessment he has made with Cabinet colleagues of the adequacy of workforce skills for delivering net zero projects.

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[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T1.   If he will make a statement on his departmental responsibilities.

[The Secretary of State for Energy Security and Net Zero (Grant Shapps)]

Next week will mark the 500-day anniversary since Putin launched his invasion of Ukraine and began trying to blackmail the world on energy. As ever, Britain stood strong in the face of tyranny, and I am pleased to report that from Saturday just past, energy bills are falling by an average of 17% for households. We are committed to powering Britain from Britain, despite some alarming energy surrender plans coming from the Opposition.

[Ruth Cadbury]

The Climate Change Committee’s report published last week found that of the policies and consultations that are the responsibility of the Secretary of State’s Department, no less than 33 are overdue. He cannot blame anyone else. Will he now own up to the Government’s appalling failure?

[Grant Shapps]

The actual data argues the opposite way. We have met all our carbon budgets to date. The Climate Change Committee last week said that the chances of reaching carbon budget 4 are “slightly increased”. We are confident of meeting it, and we have set out our plans for carbon budgets 5 and 6. I have to say that given that this country has the best record in the world among developed nations for getting carbon under control, it is surprising to hear the Opposition’s view.

[Mark Fletcher (Bolsover) (Con)]

T2.   Our domestic nuclear sector and our military are struggling to recruit and retain enough nuclear engineers. What discussions is the Minister having with the sector and the Department for Education to create a long-term workforce plan to solve the issue?

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[Edward Miliband (Doncaster North) (Lab)]

Six days ago, the Climate Change Committee delivered its most scathing assessment in its history on the Government’s record, saying that they were off track on 41 out of 50 key targets. It said that we have gone “markedly” backwards in the past year, on the Secretary of State’s watch. Who does he blame for this failure?

[Grant Shapps]

As has been discussed more than once in these questions and answers, we have taken this country from having only 7% renewable energy to over 40%. We have decarbonised faster than any other G7 nation and we are on track for carbon budget 4, having already overdelivered on carbon budgets 1, 2 and 3. Based on our record to date, we are doing a pretty good job.

[Edward Miliband]

That answer is total complacency from a Secretary of State who has just been proven to be failing on every major aspect of his agenda. That is why Lord Goldsmith resigned. Lord Deben has said he is failing, and the right hon. Member for Maidenhead (Mrs May) has said that we are losing the global race. Is not the truth now that even the Tories do not trust the Tories on the climate crisis?

[Grant Shapps]

This is one of the problems with not being prepared to follow the data, which shows us overdelivering on the commitments of carbon budgets 1, 2 and 3, and that we are more likely to meet carbon budget 4 than we were a year ago. If the right hon. Gentleman wants to ignore all that and still roll out his pre-written question, that is how we get to his conclusions. The truth is that the Government are delivering on the issues of climate change while protecting every single household in the country from Putin’s tyranny. I am afraid that has already been surrendered by the right hon. Gentleman, who subscribes to the Just Stop Oil approach.

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[Olivia Blake (Sheffield, Hallam) (Lab)]

T9. The Secretary of State has signalled that his party will finally drop the nonsensical proposed hydrogen levy—another welcome Government U-turn. Will he confirm that it is, in fact, a U-turn? Will he outline exactly how the much-needed investment in green hydrogen technology will be paid for without already struggling households being made to foot the bill? [R]

[Grant Shapps]

The whole House will welcome the hydrogen economy as an important way to store power. It is becoming increasingly apparent that that power is most likely to be used in heavy industry as well as heavy transport. This Government are committed to hydrogen power, but we are also keen to ensure that it does not impact on people’s energy bills, just as those bills are starting to fall thanks to the support that we provided families with this past winter.

[Peter Aldous (Waveney) (Con)]

T8. The contracts for difference auctions have been very successful in kickstarting the British success story that is offshore wind. [Interruption.] However, the mechanism now needs adaptation to maximise job creation in places such as Lowestoft and to ensure that we adopt a strategic approach to the provision of enabling infrastructure such as ports and the grid. I would welcome an update from my right hon. Friend on the Government’s work on this important issue.

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[George Eustice (Camborne and Redruth) (Con)]

The unique geology of Cornwall means that there is huge potential for geothermal energy. There are a number of projects bidding for the current allocation round. Geothermal energy has a competitive strike price, has lithium as a by-product and makes use of mature technology. Will the Secretary of State ensure that those benefits are properly factored into any assessments?

[Grant Shapps]

My right hon. Friend is absolutely right about the opportunities of geothermal. He will be pleased to know that it just received a potential allocation through the contracts for difference round. As he and other hon. Friends have pointed out, geothermal has great potential in this country, and we look forward to supporting it.

[Dave Doogan (Angus) (SNP)]

Communities in Padanaram, Forfar, Aberlemno and Stracathro in my constituency have been on the receiving end of an extraordinarily flawed consultation by SSEN—Scottish and Southern Electricity Networks—on taking a 400 kV line from Tealing to Kintore. I welcome the investment, but can the Minister advise on the minimum standards for consultations on capital infrastructure of this nature, and why will Ofgem not mandate that there is a community benefit?

[Grant Shapps]

I will, with the hon. Gentleman’s permission, arrange to write back to him in a more detailed structure, given that the development is actually in the constituency of my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie).

[Andrew Jones (Harrogate and Knaresborough) (Con)]

Unlocking access to the grid will unlock significant private sector capital ready to come in for microgeneration of battery storage projects. Can my hon. Friend give me an update on the timing for the Winser review and the Government’s response to it?