Green Energy Potential: Scotland
Debate between Ian Blackford and Graham Stuart
The Minister for Energy and Climate (Graham Stuart)
Let me begin by congratulating the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) on securing this Adjournment debate. I agree with him that green energy in Scotland has a great future, and it plays a key role in bolstering the UK’s energy security and driving greater energy security for the nation as a whole. That will be important in ensuring a cost-efficient energy system consistent with net zero, while creating value for money for consumers and taxpayers. I am also grateful to the other Members who have contributed, through interventions, to the debate.
The right hon. Gentleman has made some interesting points. There was precious little praise from him for any Government policy. He said that some might regard him as taking normal trite separatist lines, which is true. The truth is that Scotland, which has a population lower than that of Yorkshire, disproportionately, per capita, is able to invest in green energy through the CfD system. It is able to do so because of the levy, effectively paid through the CfD, which is from all the bill payers of Great Britain. That is allowing the transformation of Scottish energy. Without that—without the base of all the electricity and gas bill payers across this country—Scotland would not be able to deliver the huge potential that it has. If the right hon. Gentleman thinks that green energy is an argument for independence, I would say to him and his separatist colleagues that the absolute opposite is true. It is access to the whole of Great Britain, the integration with all the bill payers of Great Britain, that is allowing Scotland, as part of this United Kingdom, to lead the world. Of course, he talks in the way that, sadly, he and his separatist colleagues always have done. They are always talking down what we are doing. We have done more on offshore wind than any other country in Europe. We are second only to China in the world now and we transformed the economics of it. That was this UK Government, this Conservative Government.
If the right hon. Gentleman wants to sway others, rather than just playing to the Gallery of his own supporters, which ultimately he did not succeed in doing and thus his change in position, he should make a more balanced argument, otherwise, he looks incredible.
Ian Blackford
I am grateful to the Minister for giving way. I really encourage him not to use pejorative language such as separatism, but be that as it may. When he reflects on the contribution that oil and gas has made to the UK Exchequer, and indeed, the windfall tax that has come in now, he will see that that could have been used to make sure that we were getting the investment in tidal that has been called for not just by me, but by the Royal Society. I am trying to encourage the Government to do the right thing to make sure that we speed up. Let us not have any of this nonsense about having to accept what is given to us by the UK Exchequer.
Graham Stuart
Again, the right hon. Gentleman said in his speech—this is what is incredible—that the Scottish people had not benefited from the bounty in the North sea. Has he looked at the accounts of the Scottish Government? Has he looked at the black hole that would open up in their accounts were his separatist agenda to be delivered? [Interruption.] It is a separatist agenda. Calling someone a separatist if they are in favour of independence is not pejorative; it is simply descriptive. The truth is that the Scottish Government today enjoy bounty from the UK Treasury on a daily basis and it is thanks to our being able to work together as one United Kingdom that we can support each other, and support the transformation of the energy system in Scotland. Without being a member of the United Kingdom, without access to the support from all GB bill payers, Scotland would not be able to develop the industry that it has done in the way that it has done.
In April last year, we published the British energy security strategy, which set out plans to deliver a secure, affordable energy system, and reduce our vulnerability to international energy prices by accelerating the deployment of renewable and low carbon technologies, supercharging our production of low-carbon hydrogen, and supporting North sea oil and gas in the nearer term for security of supply.
The right hon. Gentleman suggested in some way that the UK Government lacked ambition. This is a Government who hosted COP26, who led the world from 30% of GDP covered by net zero pledges to 90%, who were the first of any major economy to legislate through the Climate Change Act 2008 and to move to put net zero into law. Ambition is not something that this country lacks at all. The right hon. Gentleman did not reflect any of that progress. We have led Europe and we have led the world and people would not know that if they listened to the right hon. Gentleman.
The Government have committed fully to decarbonise the electricity system by 2035 subject to security of supply. Our carbon budget 6 trajectory suggests that we will need to build all low-carbon technologies at or close to their maximum technical limit to meet the twin challenge of accelerating decarbonisation and servicing increased demand.
We are absolutely committed as a Government to the renewables industry across the UK. Scotland has benefited from, and will continue to benefit from, UK investment in energy and energy efficiency. The Secretary of State has received a letter from the Scottish Cabinet Secretary for Net Zero, Energy and Transport outlining Scotland’s energy strategy proposals. The Secretary of State is considering those and will respond in due course.
Since we are talking about ambition, I note that this is about not just ambition, but delivery. The Climate Change Committee reported in December:
“Scotland’s lead in decarbonising over the rest of the UK has now been lost. Progress is now broadly the same as the UK as a whole. There are now glaring gaps in the Scottish Government’s climate plan and particular concerns about the achievement of the 2030 goal to cut emissions by 75%”.
It is a challenging situation, but this Government lack neither ambition, nor the will and determination to deliver.
Our investment in the contracts for difference scheme, the Government’s flagship scheme for incentivising the deployment of renewable technologies, has proved extremely successful for Scotland. Some 44 of the 161 projects awarded CfDs by the UK Government to date are in Scotland. They represent 27% of all CfD projects and around 23% of total CfD capacity—around 6.3 GW of nearly 26.6 GW awarded contracts to date.
Adding to the offshore wind successes, as a result of the scheme—to return to a point made by both the hon. Member for Strangford (Jim Shannon) and the right hon. Member for Ross, Skye and Lochaber—over 30 MW of new tidal stream power has been secured in Scotland. Anyone not familiar with tidal power and the global record and positioning of it would not know from the right hon. Gentleman’s speech that that is a world-leading deployment—the first time that tidal stream power has been procured at this scale. Scottish projects will be crucial to delivering more wind as well as tidal. Nowhere else in the world has invested in the way that the UK Government have facilitated the investment into tidal stream in Scotland.
Graham Stuart
Perhaps the right hon. Gentleman is now going to apologise, albeit briefly, to the House.
Ian Blackford
I find this quite extraordinary, because I asked the Minister specifically to reflect on the Royal Society report that called for a ring-fenced pot of £50 million so that we can get up to 11 GW. I also asked specifically about the assessment he made on the £20 million that is there. The simple fact of the matter is that we are being held back. We have the windfall tax on oil and gas producers, which could be used to step up that investment to make sure that we get to net zero by the target dates. The Government can do more.
Graham Stuart
We are leading the world on tidal stream. That is indisputable. It has never been procured anywhere in the world on this scale, and we plan to go forward now with annual CfD auctions. None of that features in the right hon. Gentleman’s speech. It is no wonder that, despite all the rhetoric, he makes so little progress in persuading the Scottish people of his separatist intents.
Hydrogen and carbon capture utilisation and storage will be critical to delivering UK energy security, highly-skilled jobs and economic growth, and will help the UK to reach net zero. That is why we have set an ambition of up to 10 GW of low-carbon hydrogen production capacity by 2030, including four—yes, four—CCUS clusters by 2030. Scotland has a key role to play in that and other areas. I must now come to a close, but I thank the right hon. Gentleman for securing this debate.