Energy Security Strategy

John Redwood Excerpts

Tuesday 5th July 2022 Westminster Hall

[Mick Whitley (Birkenhead) (Lab)]

I beg to move,

That this House has considered the British energy security strategy.

It is a great privilege to serve under your chairmanship, Mr Davies, and I am grateful to Members for participating in this important debate. The issue of energy security has never been so important. Putin’s onslaught on the Ukrainian people, the obscene profiteering of the oil and energy giants and the petrol retailers’ opportunist price hikes have led to soaring energy bills, with Ofgem warning that up to 12 million households could be plunged into fuel poverty this year. Too many of my constituents are grappling with the terrible dilemma of whether to heat their homes or put a warm meal on the table. Meanwhile, Putin’s efforts to weaponise Russian gas and oil have forced Europe to reckon with the challenge of charting a course towards energy independence. All the while, the window for avoiding climate catastrophe is rapidly closing, with the latest report from the Intergovernmental Panel on Climate Change stating clearly that we must decarbonise at a speed previously thought to be unimaginable.

The forthcoming energy security Bill is one of the most significant pieces of legislation ever to be brought before Parliament, but the strategy outlined by the Government fails to come near the task of tackling the scale of the crisis we face. The energy security strategy offered the Government the opportunity to harness the potential of our wind, tide and sun and deliver a greener and more independent energy system. However, while the Government have gone beyond their manifesto commitment and even the recommendations of the Climate Change Committee with the target of delivering 50 GW of offshore wind power by 2030, that scale of ambition is not matched for other renewables. The Government’s refusal to support new onshore wind developments is particularly disappointing, given the massive public support for new wind farms.

[John Redwood (Wokingham) (Con)]

What back-up would we need if we became even more dependent on wind? There are days when the wind does not blow and then we get no wind power.

[Mick Whitley]

I will try to cover that later in my speech.

Onshore wind can meet the growing demand for electricity as our economy decarbonises, but also, importantly, it could help us to transform the economic fortune of left-behind communities, with the potential to boost the UK economy by more than £45 billion and create 57,000 new jobs. By accelerating the development of the 649 individual solar and wind farms that have already been granted planning permission, we can eradicate the need for Russian gas imports entirely. Putin’s ransom demands can be safely ignored.

There are many of us who had hoped that the Prime Minister might undo the draconian planning restrictions for onshore wind, introduced by the Cameron Government, that have made it virtually impossible to build new wind farms in all but a handful of local authorities. In 2020, the Prime Minister reversed his predecessor’s decision to exclude onshore wind from the contracts for difference scheme. Our hopes for a repeat performance were bolstered in the weeks running up to the publication of the energy security strategy, which appeared to commit the Government to tripling onshore wind capacity by 2035. That would have been a bold, progressive policy and a sign of a Government who understand both the needs of our country and the public mood. However, the plans were strangled at birth by Tory Back Benchers and their allies in the Cabinet, some of whom have happily taken small fortunes from fossil fuel giants and so-called climate sceptics. Now, the strategy explicitly rules out the planning reforms that are essential to unlocking the promise of onshore wind.

It is not just onshore wind that is being ignored by the Government; the UK has half of all Europe’s tidal energy capacity and many experts agree that no country anywhere in the world is better placed to exploit the remarkable power of the tide.

--- Later in debate ---

[Wera Hobhouse (Bath) (LD)]

I congratulate the hon. Member for Birkenhead (Mick Whitley) on securing the debate.

Energy security is as important as ever in the face of the climate emergency and the need to get to net zero, but also in the light of more recent events, which have seen energy prices and household energy bills soar. There is some good news: the less we depend on fossil fuels, the better for the climate and household bills. It would therefore be completely wrong of the Government to go back to more fossil fuel exploration. Instead, an even more ambitious plan for the roll-out of renewables is the right way forward.

The opportunities are fantastic and plentiful. I have mentioned just one, which is floating offshore wind. I believe that Britain could be a true global leader in this field, and the Minister will find in me a passionate and true supporter of all efforts to help the development of floating offshore wind in this country. There are fantastic opportunities, and we need to help develop them. There are some barriers as well, but the opportunities are amazing, and Britain could truly be a leader and an exporter of renewable energy.

[John Redwood]

Perhaps the hon. Lady will answer what the hon. Member for Birkenhead (Mick Whitley) did not: what would the back-up arrangements be? We have had quite a number of days this summer when wind has generated only 2% of our energy, and we have been using coal as back-up. What is the back-up, and is that not part of the cost of wind?

[Wera Hobhouse]

I thank the right hon. Member for his intervention, because it goes to the core of the argument. There are already models, and they have been around for some time. The idea of having a baseload is old-fashioned thinking, and I am grateful to the hon. Member for Wantage (David Johnston) for mentioning community energy. We need much smaller devolved energy supply and production, rather than massive, centralised providers, and the idea of a baseload is becoming more and more obsolete. Indeed, if we had floating offshore wind, whereby the generation of electricity takes place far out in the sea rather than on the shallow seabed, there would be enough energy to meet Britain’s demands.

I believe in going even further and exporting renewable energy. If we do not do it in Britain, other European countries will come forward. I do not know whether the right hon. Member for Wokingham (John Redwood) has been to briefings on floating offshore wind, but it is fascinating to see the enormous amount of energy that such installations can produce. If we do not take the opportunity, the technology will be used by other countries and they will become the leaders in that technology instead. I say to the Minister that I am a passionate and true supporter of any Government efforts to support floating offshore wind. It is a new technology, but it is very encouraging and interesting.

Home installations should have been a key part of the Government’s energy security strategy, but they were not. Instead, the energy efficiency of our homes is among the worst in Europe, and the Government are leaving people to suffer with high bills and heating costs. Meanwhile, the Government have failed to invest in more renewables, particularly onshore wind, but as I have just mentioned, I believe that they should be seriously looking at offshore wind and floating offshore wind. They have instead committed to eight new nuclear power stations, and the Minister is aware of my well-known objection to that. The Government have not reversed the effective ban on onshore wind, and the new nuclear power stations will add £96 a year to people’s energy bills.

We have already discussed how expensive nuclear-powered energy is compared with renewables. EDF previously estimated that the cost of funding the Sizewell C nuclear power plant in Suffolk will add up to £12 a year to household energy bills for every family in the country at its peak. The Government have confirmed that each new nuclear power plant will add around £1 per month to energy bills during construction. There are just over 26 million households in England, Wales and Scotland, meaning a bill of £2.6 billion a year is set to land on households because of the Government’s failure to plan ahead and invest more in renewables years ago. This comes as the energy price cap has risen by just under £700 on average, with further increases expected in the autumn.

The Government recently passed a new law that will allow them to add levies to energy bills to fund new nuclear plants. It is madness, as I keep saying. The Liberal Democrats attempted to exempt at least the most vulnerable from the additional levies, but the Government rejected that proposal. Investing in renewables instead would come at a fraction of the cost currently set aside for nuclear.

There is huge potential for more community-scale renewable energy, which has been mentioned today, and I ask the Minister to respond on that point. We need more community energy and, as has been said, more than 300 MPs are behind it.

The biggest advantage of community energy is in bringing people behind the need to get to net zero. We are going to face many disruptions in order to get to net zero by 2050, and bringing people on board will be the most important thing we can do. Community energy is the best place to drive the movement to get people behind net zero. We have already heard about the difficulties, but nothing is beyond us if we really have the political will to achieve it. My ask of the Minister is to respond positively on how we can remove the existing barriers for community energy.

The measures necessary to tackle climate change will take a big effort and cause a lot of disruption. The Government must acknowledge that there will be disruption, but community energy is one way of making sure that people are fully behind it.

In the past decade, community energy has seen little to no growth. The Environmental Audit Committee has noted that, between 2020 and 2021, community energy increased by a meagre 31 MW, less than 0.5% of total UK electricity generation. An enabling mechanism would not only protect families from soaring energy bill costs, but benefit the economy through job creation. It is clear that it would open a stream of jobs and economic wealth. For example, the 2020 community energy groups across the UK have more than 3,000 volunteers and almost 500 full-time staff. It is estimated that a twentyfold increase would create almost 60,000 skilled jobs, and that is at the lower end of the forecast.

Will the Government include in the upcoming energy security Bill an enabling mechanism, such as that proposed by the Local Electricity Bill, to protect individuals, families and the environment at such an essential time? As we have already heard, there is much support for such a measure. I hope the Minister will focus on answering that question.

--- Later in debate ---

[Peter Dowd (Bootle) (Lab)]

It is a pleasure to see you in the Chair, Mr Davies. The fact is that if we took the approach of the right hon. Member for Wokingham (John Redwood), we would not have moved on from the use of coal. In the 19th century, coal powered virtually everything, but then oil and then gas started to power things. We have to move on. There has to be a short, medium and long-term strategy. It is fine if people want to ask me, “Well, what are your plans for next week and the week after that?” We can have lots of plans for next week, but there also have to be plans for the medium and long term, and that is what the energy strategy is about.

[John Redwood]

Will the hon. Gentleman give way?

[Peter Dowd]

I will in a moment. The right hon. Gentleman also asked about the alternative energy supply if wind drops off. It has to be part of a comprehensive package—that is the issue. Energy has to be available and one does it in a variety of ways. It is not simply about a turbine going down and that being the end of the matter. There are designs available out there, for example in Cape Cod, where a company, developer, Government or state—call it what you will—can ask about an area’s topography and then design wind turbines to maximise the capacity, and that is built into the strategy. That is how it is done—through technological use of the topography, so to speak.

[John Redwood]

The hon. Gentleman completely misrepresents my views. I was an adviser to the new electricity-generating system at the time of privatisation, when we encouraged and designed a system that carried out a massive switch out of coal and into gas because it was cleaner and a lot cheaper. That was the first green revolution. I hope he will withdraw his slur on me.

[Peter Dowd]

If telling the truth is a slur, I certainly will not withdraw it. The fact of the matter is that the right hon. Gentleman has to come into the 21st century. The system is not working. We have a privatised, market system that, quite frankly, is not working. The problems we are now having because of the Russian invasion of Ukraine just reaffirm that the model is not working and that we do not have the disparate energy supply that we actually need.

I agree with much of what the hon. Member for Weston-super-Mare (John Penrose) said on market reform, so I will not go into that. He also raised the issue of tidal power. My constituency is on the Mersey and overlooks a lot of turbines, but for a long time, since I was a member of Merseyside County Council 40 years ago, we have also been trying to get the Mersey barrage. There are lots of examples of barrages working well across the world—I did have a list of them, but I do not have it to hand—and they are priced relatively well. That is also case in other countries that are pushing the green agenda. The Netherlands are using their topography, as are the Spanish. The Japanese are now virtually in the position where they can have 100% efficiency with wind and a variety of other sustainable energy plans. India, Australia, France, Germany, China and the USA are moving ahead. Yes, the UK is doing well, but we are not doing well enough. We have to move on as much as we possibly can.

One of my concerns is the Government’s approach to community energy companies. A letter from the Secretary of State for Business, Energy and Industrial Strategy to a colleague says:

“The right to local energy supply already exists under the Electricity Act 1989 and Ofgem, the independent energy regulator, has existing flexibility to award supply licences that are restricted… Changing the licensing framework to suit specific business models risks creating wider distortions elsewhere in the energy system, which could increase costs for other consumers and further unintended consequences.”

I do not believe there is any evidence whatsoever for that—quite the contrary—so it would be interesting to hear what the Minister has to say about it. In my opinion and that of many other people, that letter is not factually correct. For example, in a local network, energy loss through the system is significantly lower. That has not been factored into the Government’s strategy, but it should be.

The Secretary of State’s letter effectively pooh-poohs the idea of local community enterprises on the grounds that they will distort the market—well, if we do not have a distorted market at the moment, what precisely do we have? We are here today to push the Government to create an energy market that serves the country. I do not want to go into the issue of nationalisation and public ownership of the energy sector, because my hon. Friend the Member for Birkenhead (Mick Whitley) has already done so, but at the very least we have to have a good look at it, because the market is not working. It is as simple as that, and I would challenge anybody who tells me it is. We have to move on, and as the coalition Government said in their July 2011 UK renewable energy road map—we came to a bump in the road somewhere between 2011 and now—

“The nations of the United Kingdom are endowed with vast and varied renewable energy resources. We have the best wind…and tidal resources in Europe.”

That is as true today as it was 10 years ago, but I am afraid we are not using all the advantages we have as a nation. We have almost an inbuilt potential energy supply, but we are not using it. It is about time that the Government get to grips with that and use what we have now, not just in the future.

[John Redwood (Wokingham) (Con)]

I welcome any measure to buttress our energy security. Ministers are right to be alert to the difficulties we face. I am concerned about this decade. Once again in this debate, we have heard many ideas about nuclear, wind and solar—new technologies that may make a great contribution in the next decade—but our task today is to reinforce all the things that the Minister is doing to keep our lights on for the next three or four years. Our more immediate task is to see what contribution the United Kingdom can make to getting Russian gas and oil out of the European system. We need to make our contribution, providing more of that supply from our domestic sources as part of our war effort. We need our people, who want to keep the lights on and the boilers running, to feel secure that we will make our contribution in case Russia turns the taps off.

[Wera Hobhouse]

It is simply not true that renewable energy projects will take until next decade to be developed. In fact, many of them are waiting; it is just that they cannot be connected to the grid. Can the right hon. Gentleman correct what he has just said about renewable energy projects?

[John Redwood]

I am afraid that the hon. Lady, and other Members who have made similar contributions, do not understand that I am dealing with the problem of intermittency. In order for all the extra wind they want to be useful, there needs to be a way of timesharing the wind power. We already have days on which wind and solar together produce less than 10% of our electricity, and most of our constituents are not using electricity to drive or to heat their homes, so that is a very small proportion of our total energy.

The vision of wind requires mass battery storage—we seem to be years away from the technology and the investment required to do that—and/or conversion to hydrogen. Green hydrogen would be a perfectly good answer, but again, we are years away from the investment, the practicalities and the commercial projects that could turn that wind energy into hydrogen. My constituents would love it if they could get hydrogen today. They do not want to have to rip out their gas boiler; they would quite like to be able to route more hydrogen through the existing gas boiler and make their contribution to the green revolution.

However, MPs have to be realistic. Our prime duty is to ensure that our constituents can live in relative prosperity, keep the lights on and have access to decent energy for their requirements. At the moment, most of our constituents get to work and to the shops using a diesel or petrol van or car; most heat their homes and water with a gas, oil or coal boiler. Very few use electric technology for that. If there was the great popular electrical revolution that they have bought into, and they could suddenly afford the electrical products and liked them, we would have a huge problem, because we would be chronically short of electricity generating capacity.

The true electrical revolution on the scale that the hon. Member for Bath (Wera Hobhouse) would like would require an enormous investment in new electrical capacity. If everybody went home tonight and plugged in their car, which uses more electricity than the rest of the home, and heated their homes using electricity, there would need to be a big increase in capacity. [Interruption.] The hon. Lady is shaking her head. She wants to get real! Does she really want to cut off her constituents because she so hates them using gas?

[Wera Hobhouse]

This is about choices. We cannot forever get stuck in the past, as we have just heard. We need to look forward to the future. Investment in renewables is the only way I can see as the right way forward. Yes, that needs adaptation; yes, that needs our constituents to come along. However, it is a necessity. We cannot bury our heads in the sand.

[John Redwood]

Once again, the hon. Lady is in denial. She will not answer the intermittency problem. Does she ever look at the hourly and daily statistics on the grid to see, quite often, how little of our power is renewable-generated? That is because of physics and weather. We have to find technological answers to that. Now, there are technological answers, but at the moment they are not being adopted. They are not commercial and they have not been trialled properly; there may be safety issues and all sorts of things.

[Peter Dowd]

Yes, they have.

[John Redwood]

The hon. Gentleman says that they have been trialled. Why are they not there, then? Why can I not turn on my hydrogen tap now? There are all sorts of commercial issues and issues about how to route it to every home and so forth.

[Peter Dowd]

The right hon. Gentleman is so fixed on this idea of commerciality. There will potentially come a point when the taxpayer—for the sake of argument—decides that the Government are going to invest. I know that the right hon. Gentleman has an ideological obsession with the Government not doing that. However, in the current situation, does he not agree that the state might sometimes have to do just that?

[John Redwood]

But that is happening. We already have one of the most over-managed systems because successive Governments have put in all sorts of subsidies, tax breaks, interventions, price controls and all the rest of it to try to send those signals. That is why we have the current mix—it is not the exact mix the market would have produced.

I fully accept that there is often a role for Government when we try to develop new technologies. I have no problem with that. However, it does require agreement on what that technology is, agreement on the scale of the effort needed and realism about how many years it would take. It is all very well for the Members present to say that they have a vision of everybody using an electric car and having a heat pump. However, if their constituents cannot afford it or do not want it, it does not matter what Members think—they have to deal with the world as it is. We cannot lecture our constituents into having a heat pump. They will have a heat pump when it is affordable, when it is a good product and when they think it makes sense, and they are nowhere near coming to that conclusion at the moment.

The crucial question in this debate is what more the United Kingdom can do at this critical moment. We have to help our allies and friends on the continent who are gas short and oil short and want to get Russia out of their supply system but cannot do so because it would collapse their industry, while Russia is financing a war by selling its oil and gas into Europe as well as elsewhere. I think there is a lot more we can do.

I urge the Minister to see it as both a patriotic duty and a crucial duty to our allies to work closely with our producers and owners of oil and gas reserves in the United Kingdom and maximise output as quickly as possible. Some of the output can be increased quite quickly; for others, it will take two or three years to get the investments in. Will the Minister do everything he can to expedite it? We owe that to our constituents, because gas and oil are too dear—every little extra that we can produce will make a little difference—and confidence in markets might be affected. Above all, we owe it to our allies, who will otherwise be financing Putin’s war.