Energy Generation

James Gray Excerpts

Wednesday 17th April 2013 Westminster Hall

[Several hon. Members]

rose—

[Mr James Gray (in the Chair)]

Order. I intend to call the Front-Bench speakers at five minutes to 6 o’clock. There are five or six Members of Parliament who are trying to catch my eye, so, as a matter of courtesy, perhaps we could keep our remarks reasonably brief.

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[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for St Ives (Andrew George) on securing this debate and on bringing this important matter to Westminster Hall for our consideration at a very important time. I will keep strictly to my allotted time scale, Mr Gray, because I realise that other Members wish to contribute, I shall try to ensure that they can do so.

I recognise the importance of this critical debate and I want to try, if I can, to give the Northern Ireland perspective. At the same time, I want to put down a marker by offering some suggestions to which I hope the Minister can respond. Only last week, I had a meeting with local people in Portavogie, one of the villages in my constituency, and we discussed flooding issues. The guys from Northern Ireland Water were there and they told us that, as far as they were concerned, although people used to refer to “one in 50 years” or “one in 100 years” flooding—that was the way that people looked at it—flooding would be a regular occurrence for the next five to 10 years. Gone are the days of “one in 50 years” or “one in 100 years” flooding; floods will perhaps be an occurrence every week. I make that point because it is the reason why this debate is important—there is a change in world conditions and it is very clear how it will impact on us.

There is also the issue of cheap coal. The United States is putting a lot of cheap coal on the market, which power stations in the United Kingdom have used. However, by doing so over a period of time, power stations have increased the emissions that they produce. All those things underline the importance of this debate and the need for the decarbonisation of energy generation.

I will make a couple of quick points about wind farms. I also want to put down a marker, because while everyone is committed to green energy—ask anybody in the street or in a constituency and they will say that they are committed to green energy—when it comes to cost they sometimes draw back or have a question mark about it. We have to achieve a balance that can work for everyone. Wind farms on land can create energy, which is important, but what they can also do—if they are not sited in the correct way—is have an impact on people living near them, both visually and by creating noise. Wind farms need to be situated in the right location; perhaps the Minister can discuss that in relation to planning matters.

Wind farms have the potential to do great things, but at the same time they can be contentious. There are plans for an offshore wind farm off the coast of South Down in Northern Ireland in prime prawn and fishing areas, which will affect what fishermen can do at a time when they need to fish. The fishing industry is under pressure. The past six months have been critical for fishermen and fishing fleets in Northern Ireland. They have made no money in the past six months.

[Mr James Gray (in the Chair)]

Also well beyond the terms of our debate.

[Jim Shannon]

Absolutely—I accept that, Mr Gray. I just wanted to put a marker down about fishing.

There are alternatives that will allow us to reduce carbonisation. Willow mass is an alternative that farmers have been encouraged to consider. It is a method whereby they can reduce carbon while at the same time achieving an income. I will put down a quick marker on anaerobic digester systems. Germany has 2,500 of them, yet in the United Kingdom we have only 23. They are another alternative that allows us to reduce carbonisation.

Several hon. Members have referred to nuclear power and to the concerns expressed by the hon. Member for Brighton, Pavilion (Caroline Lucas). As far as a great many people in my party and I are concerned, nuclear power is the key factor in reducing emissions to ensure that targets are met. We believe that the new generation of UK nuclear plants, beginning with Hinkley, are welcome news. What we need is an overall strategy that delivers; one that is not contentious and that does not create division; and one that has achievable targets, with everyone committed to achieving the right balance. With those comments, Mr Gray, I have finished.

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[Several hon. Members]

rose—

[Mr James Gray (in the Chair)]

Order. Two minutes for Ian Swales.

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[Gregory Barker]

No, I will not, I am afraid. I greatly welcome the closer alignment with the Department for Business, Innovation and Skills. I cheered the last Government when they created a separate Department of Energy and Climate Change. It is a good thing, but it must also be a good thing, as he pointed out, to have much closer alignment between BIS and DECC. The appointment of my right hon. Friend the Member for Sevenoaks (Michael Fallon) to the important job of Energy Minister, much as it will stretch him, sends a clear signal about the central importance of the low-carbon economy to British growth and our long-term growth prospects, as the Prime Minister said and every Member who has spoken in the debate has pointed out. The CBI supports the agenda, and there is wider support for the low-carbon economy that goes way beyond certain renewable energy technologies. It offers export and other business opportunities requiring little or no subsidy, and it has a great deal of its own momentum.

We will return to the decarbonisation target when the Bill returns to the Commons on Report after the Queen’s Speech. I know that some hon. Members have argued that we should go further and set a target now, to provide greater certainty to investors. I understand that argument—I listened carefully to the contributions made in the evidence session before the Bill Committee—and I see the strong merit of the argument for a decarbonisation target. That is why we are introducing measures in the Bill to create such a target. However, we must also resist the temptation to think that life is about targets. Surely, we learned our lesson under the last Government. Simply setting targets does not deliver results. If this Government are about anything, we are about deployment, results and driving real change in real time, and our record demonstrates that we are capable of doing that.

As we set out in the carbon plan in December 2011, it is likely that, as well as decarbonising electricity generation, meeting our 2050 target will require the electrification of a significant amount of heat and transport in the UK. In turn, that will not only affect overall demand for electricity but require us to take into account when that electricity is needed. For instance, when will people want to charge electric vehicles? Heat demand changes seasonally and over the course of a single day. All those things must be taken together when we consider the best way to decarbonise electricity as part of a least-cost route to meeting our obligations under the Climate Change Act 2008.

The second reason why I believe we should wait to set a target range is that we do not need to do so now. As I have said, we have provided clear signals to investors via a range of different initiatives, legally binding targets and the action that we are taking through the electricity market reforms in the Energy Bill. They have prompted the director of the CBI to say that the Bill sends

“a strong signal to investors that the Government is serious about providing firms with the certainty they need to invest in affordable secure low-carbon energy.”

That is what we are doing.

This must be seen in the context of the Government’s wider plans. The green investment bank is now investing billions of pounds in our green economy and catalysing billions more. I appreciate that hon. Members have focused on one element, but the wider package is extremely ambitious and encouraging.

[Mr James Gray (in the Chair)]

I am most grateful to the Minister for winding up precisely at 6.15. Can people from the last debate leave the Chamber quickly and quietly?