Oral Answers to Questions Debate
Full Debate: Read Full DebateJustin Tomlinson
Main Page: Justin Tomlinson (Conservative - North Swindon)Department Debates - View all Justin Tomlinson's debates with the Department for Energy Security & Net Zero
(8 months ago)
Commons ChamberNetwork companies are expected to deliver connections by the date stipulated in customer connection agreements. Reforms to accelerate the connection process and build times for transmission infrastructure will help to ensure that expectation is met.
May I welcome the Minister to his new responsibilities and urge him to focus on this particular issue? According to a recent report by the UK Sustainable Investment and Finance Association, 44% of investors in solar power say there are problems getting interconnections with the grid. We know there are issues in the distribution network, which means that the transmission network is probably the only place that large-scale utility solar farms can connect, and people are worried that only particular parts of that network accept contracts. Will the Minister look at that in detail, because there are major concerns in my constituency that there will be connections at Eaton Socon power station, which is one of the few places where contracts are being offered?
That is absolutely understood. As set out in the spring Budget, the Government are working with Ofgem and network companies to release more network capacity and to prevent speculative projects from obtaining and retaining network capacity. That, alongside faster network infrastructure delivery, should result in more capacity across the country and help to reduce any clustering of generation projects.
National grid infrastructure is critical to the delivery and connection of these solar farms, as it is for onshore and offshore wind. The importance and urgency of that was stressed by the Winser review of August last year. The Government have got until 2030 to deliver this policy. Will the Minister update us on the transmission acceleration action plan?
The hon. Member is spot on. We are proud to have gone from 7% renewable energy to 47%. To go further, we must hit those ambitious targets by unlocking additional investment. For example, through the accelerating strategic transmission investment process, we anticipate unlocking a further £198 billion of investment by 2030. Alongside the changes I have already set out, that will be key to getting that extra power generated through solar.
Surely it is not an adequate justification for building solar farms on 10,000 acres within a six-mile radius that Gainsborough is close to the national grid serving the old power stations. Is that not gross overdevelopment on good arable land, and should the inspector not take account of this overdevelopment?
I understand my right hon. Friend’s raising this point. That is why it is clear in planning policy and guidance that solar projects should be directed to previously developed or non-greenfield land. That was the message we reinforced in the January national planning statement to ensure that we reduce unnecessary clustering.
May I also welcome the Minister to his new role? According to National Grid, £58 billion of investment is needed to meet our 2035 decarbonising target. British electricity demand is expected to rise by 64% in the next 10 years, and the current system is still designed around electricity sources of the past, such as coal. New cables need to be built to bring electricity from renewable energy sources, as we have already heard. What assessment has the Department made of the impact this problem is having on green investment?
I thank the hon. Member for her kind words. I enjoyed working with her on many occasions in my former roles. The Government have continued to work with the public and business to unlock additional investment. For example, through the connections action plan, we expect an additional 40 GW of accelerated collection dates to be released, which will particularly help in the area of solar. We are also looking at the £85 billion of investment we have unlocked since the autumn statement through the transmission acceleration action plan. Those are all vital components to hit our ambitious targets.
As a Department, our ministerial team meet regularly with industry: for example, through the hydrogen investor forum, the Offshore Wind Industry Council, the solar taskforce, the Green Jobs Delivery Group and the cross-cutting Net Zero Council, which is shortly celebrating its first anniversary.
Car makers warned what would happen before the Government delayed the end date for the sale of new petrol and diesel cars. Sure enough, sales of new electric cars are down by 19% in the latest figures from the Society of Motor Manufacturers and Traders. Switching to electric driving is cheaper over the lifetime of the vehicle. Why did the Government not listen to the warnings from business? Do they not want people to benefit from cheaper travel?
I proudly drive an electric vehicle myself, and I celebrated the fact that 48,388 electric vehicles were registered in March 2024 alone.
Eight in 10 of the large energy companies recently surveyed by the UK Sustainable Investment and Finance Association agreed that the UK is falling behind in the race to become the most investable market for low-carbon technologies. What steps will the Minister take to reassure the clean energy industry that the UK is serious about the transition to net zero, which must include moving away from a commitment to max out oil and gas production?
I very much welcome the hon. Member’s highlighting the importance of this area. I am sure that he will join me in celebrating the fact that we secured £60 billion of investment in low-carbon technology in 2023, up a staggering 71% on the previous year. We are heading in the right direction to meet our ambitious target.
Does the Minister agree that it is economic madness to pursue our current ruthless net zero agenda, outsourcing carbon production to the likes of China and forcing us to pay more to heat our homes and power our economy? We must put the British taxpayer first.
It is crucial that we work with the public and businesses, not against them. In “Powering up Britain” we set out our plan to secure our energy system by ensuring a resilient and reliable supply, increasing our energy efficiency and, crucially—my hon. Friend will welcome this—bringing down bills.
The Zero Carbon Humber projects are a vital part of the country’s achieving its net zero target. However, there is concern among potential investors—particularly in connection with the carbon cluster projects—that the Government are moving a little too slowly. Will the Minister reassure those businesses that the timetable will be honoured?
My hon. Friend regularly champions investment in his constituency, working closely alongside the businesses he supports. We understand the importance of that. Just before Christmas, we set out a road map to speed up the process, which we very much hope will unlock that vital investment for his community.
I welcome the Minister to his post. I think he is struggling a little bit to get with the programme, but hopefully he will soon be on message. [Hon. Members: “Oh!”] That was in terms of his answer to the question about being anti-net zero.
The Department confirmed last month that curtailment payments cost a whopping £1.4 billion last year. That is bill payers’ money being used to pay providers to switch off wind power and switch on gas. Why should people be paying even more on their energy bills to switch off cleaner and cheaper energy because the Government have failed to deliver the net zero capacity that we need?
That is why we have been focusing on expanding the interconnectors network so that, where we produce energy that we cannot use domestically, it can be sold. I also welcome last year’s large-scale expansion of battery farms—they have been springing up at an amazing speed—which allow us to store the energy supplied that exceeds demand.
I look forward to hearing the Minister’s predictions of what the curtailment payments will be in the coming year, because they were up for the previous year. In a survey of energy industry leaders, nearly 90% said that we need new policies to make the UK more attractive to investors. Nearly two thirds are moving investment out of the UK, and three quarters blame a lack of clarity from this Government on net zero. Is it not time for Ministers and Back Benchers to drop the culture war and put British industry and jobs first?
On a lack of clarity, I think the shadow Minister has mixed things up with the green prosperity plan. Even I cannot keep up with the latest position of senior figures in the Labour party, but I think the shadow team lost that battle. The reality is that in 2023 we secured £60 billion of private investment in low carbon technology, which was up a staggering 71% on the previous year. That is a credit to our team who delivered that.
Properly regulated markets, which incentivise private capital to invest in the energy system, provide the best outcome for consumers and promote market competition as the best driver of efficiency, innovation and value.
Despite the Minister’s disagreement, public ownership exists in our energy system. For example, 45% of our offshore wind assets are publicly owned, just not by the UK—they belong to the state-owned companies of countries such as Denmark and Norway. Publicly owned energy companies can accelerate the transition to clean energy while creating jobs, reducing bills and ensuring that the public benefit directly from our common resources. Countries that are leading the transition to renewables have realised this; when will the Minister?
I thank the hon. Member. It is flattering: I am 48 hours into my role, and she would like to upgrade it so that I can personally be in charge of delivering energy companies. I gently remind her that in her own local authority of Nottingham City Council, Robin Hood Energy, which was chaired by a politician—the public probably want fewer, not more, of us—managed to cost taxpayers a staggering £38 million.
North Sea Transition Authority analysis shows that producing natural gas domestically is almost four times cleaner than importing liquefied natural gas from abroad. Without continued licensing, our dependence on imported oil and gas, including LNG, will only increase more quickly in the future.
I have always been a fan of us fully exploiting our natural resources. We have got to take a pragmatic route to cutting our carbon emissions, but at the forefront of our thinking must also be driving down energy costs, boosting energy security and not doing anything that enfeebles our country on the global stage. Does the Minister agree that this is the right approach in terms of energy costs and that not importing as much liquefied natural gas will also make our carbon footprint smaller?
I completely agree with my hon. Friend’s analysis. Utilising our own domestic resources is just common sense when the alternative is to import more fuels from abroad. It would be an act of self-sabotage to put restrictions on our own domestic sector, damaging jobs and investment only to liquefy and ship gas from halfway around the world and create more emissions in the process.
I welcome the Minister to his post, but he will know that most of our gas imports are not LNG and that they actually come via a pipeline from Norway, where gas production is half as polluting as it is in the UK. New oil and gas would not only be disastrous for our climate; it would also fail to boost energy security. Following the welcome announcement that the UK will finally withdraw from the energy charter treaty, will the Government also reverse their decision to license the Rosebank oil field, which will cost the climate and the public purse extremely dear?
I thank the hon. Member for her kind comments. While we scale up our clean energy success, including in renewables, which have gone from 7% to 40%, there is still a need for oil and gas. A failure to issue a new licence would make no difference to the consumption of oil and gas, but it would increase imports, which typically have higher emissions, and also damage our economy.
Offshore transmission is central to the Government’s balanced approach to delivering an electricity network fit for net zero.
The Minister will be aware of the Norwich to Tilbury pylon proposals, which will put 50-metre pylons through swathes of the Norfolk, Suffolk and Essex countryside. He will also be aware that the recent electricity system operator review indicated that it will soon be cost-neutral to have an offshore option for that same energy transition, and that multiple points for connecting offshore wind turbines to the grid are facing planning problems. Will he do what he can to engage with National Grid and get it to do the right thing and look at a cost-neutral option of offshore transmission, rather than the current onshore proposal?
My hon. Friend has a long-standing record of making powerful suggestions on behalf of his constituents and neighbouring constituencies on this important issue. The ESO’s recent study considered a total of a nine alternative options for transmission routes in East Anglia, including three predominantly offshore options and two hybrid onshore and offshore options. It is important that we try to work with communities.
Order. I remind Members that these are topical questions. I have to get through them. Just because the hon. Gentleman missed out on Question 18, it does not mean that he can have an extended topical question. Let us help each other.
Thank you, Mr Speaker.
My hon. Friend the Member for Romford (Andrew Rosindell) highlights the importance of working with the public and business. Whereas the shadow Secretary of State sneers at those who are sceptical, we have to win hearts and minds. That is why my hon. Friend will welcome our “Powering Up Britain” plan to secure our energy system by ensuring a resilient and reliable supply, increasing our energy efficiency and, crucially, bringing down bills.
On Ynys Môn, companies such as Mona Lifting in Llangefni, supported by the Green Digital Academy, which has been funded by £2.7 million from the community renewal fund, are working hard to use their businesses to help to deliver net zero with the installation of solar panels and charging points. Does the Minister agree that it is thanks to the UK Government that innovative, forward-thinking companies such as Mona Lifting are leading the way so we can deliver net zero?
My hon. Friend once again champions her constituency, working with businesses so that in conjunction we can drive up our use of renewables. It is thanks to this Government that we changed the planning rules to make it easier to set up large-scale solar installations. I also welcome households playing their part, with 17,000 solar-panel installations a month last year.
It is an important point. As a proud electric car driver, I have concerns that not all people have equal access to charging, which I have on the driveway to my house. I was therefore thrilled when the Government managed to deliver a 50% increase in EV charging points in the last year alone.
Energy security is national security, and food security is national security. Up and down the country there are plenty of rooftops, residential, industrial and agricultural, that are suitable for solar panels. Will my hon. Friend the Minister reassure the country that we will prioritise those sites for our solar footprint, rather than jeopardising prime food-producing land or, indeed, our precious greenbelt?
While the hon. Member for Bristol East (Kerry McCarthy) heckles to say that there is yet another nimby, we recognise that we want to work with communities and respect local knowledge to inform present and future works. All transmission projects are required to progress through the robust planning process, which includes statutory consultations and individual planning reviews, and I am sure that the hon. Member will feed into that directly.
Forty per cent. of properties in this country do not even have an energy performance certificate, and of those that do in the private rented sector, and in the private ownership sector, only 30% are EPC C rated. Last year, we made an improvement of only 1% on this. EPC C is the standard, so when does the Minister expect that we will ever get to 100% EPC C in our housing stock, and what are the Government doing to increase the speed of the process?