Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 19th September 2023 Commons Chamber

[Selaine Saxby (North Devon) (Con)]

2. What assessment she has made of the potential implications of the outcome of the contracts for difference allocation round 5 on the future development of floating offshore wind.

[Mr Speaker]

I welcome the Secretary of State.

[The Secretary of State for Energy Security and Net Zero (Claire Coutinho)]

Our contracts for difference scheme is a UK success story, having contracted more than 30 GW of capacity, including 20 GW of offshore wind, since 2014. AR5 delivered a record number of clean energy projects, enough to power the equivalent of 2 million homes, and the Government’s commitment to offshore wind remains unchanged, which is 50 GW by 2030.

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[Claire Coutinho]

I know that as chair of the all-party group on the Celtic sea my hon. Friend is a long-standing supporter of offshore wind. We have announced that AR6 will open in March 2024 and we have published an indicative timetable. We are supporting research and development in floating wind technology via the floating offshore wind demonstration programme, announcing up to £160 million in capital grant funding.

[Mr Speaker]

Can we work to the order, as it is a grouped question? The question should not be answered in that way. Selaine Saxby should be asking a direct question.

[Selaine Saxby]

Thank you, Mr Speaker. I am keen to understand better what more can be done to assist floating offshore wind in AR6 following what happened in AR5.

[Claire Coutinho]

I know my hon. Friend is a long-standing supporter of offshore wind. We have announced that AR6 will open in March 2024 and we have published that timetable. We are supporting floating wind technology through different programmes and manufacturing investment schemes too.

[Mr Speaker]

I call the Chair of the Energy Security and Net Zero Committee.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (Ind)]

We also welcome the Secretary of State to the Dispatch Box. With many renewable projects built on the strength of contracts for difference, but with reports of many not invoking these contracts and instead benefiting from the higher energy prices, can the contracts in principle be invoked later, when prices fall, or could the Government enforce the invoking of the CfD contracts now, at the start of the generation of these projects, rather than their taking the high prices while they can?

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[Mr Speaker]

I call the shadow Secretary of State.

[Edward Miliband (Doncaster North) (Lab)]

I wish the Clerk of the House well in the future, and I warmly welcome the Secretary of State to her new role and congratulate her on her appointment to the Cabinet. I look forward to working together. Let us start with the truth. The offshore wind auction that she inherited was a totally avoidable disaster. It means another lost year for our country and another year of higher bills, and it is because Ministers obstinately refused to listen to warning after warning from industry. RenewableUK estimates that the auction failure will add £2 billion to bills. What is the Secretary of State’s estimate of the cost to families of this fiasco?

[Edward Miliband]

I am afraid the Secretary of State is quite wrong about that, because Ireland adjusted the price and had 3 GW of offshore wind. Let us talk about the way that this Government are jeopardising our energy security. They have delivered—[Interruption.]

[Mr Speaker]

Order. Mr Stuart, I know this is the last day before the recess and you are excited to get some freedom, but let’s save it.

[Edward Miliband]

This Government have delivered the worst cost of living crisis in a generation. There is a pattern here: they banned onshore wind and raised bills, they slashed energy efficiency and raised bills, and now they have trashed offshore wind, raising bills. That is why we are so exposed. I know that the right hon. Lady did not make those decisions, but now that she is the Secretary of State, she needs to tell us, after 13 years of failure, what is she going to do differently?

[Claire Coutinho]

Let me tell the right hon. Gentleman about the last 13 years. We have decarbonised faster than any G7 country, while also growing the economy. We have grown renewable energy from 7% of our electricity when Labour left power to 50% now. I am proud of what we have achieved over the last 13 years. We have a proud record when it comes to climate change and a proud record when it comes to renewable energy, and I am proud to defend it.

[Mr Speaker]

We now come to the SNP spokesperson.

[Dave Doogan (Angus) (SNP)]

I welcome the Secretary of State to her new role. I wish I could have welcomed her to her new role on 5 September, when we had the remaining stages of the Energy Bill, but she was not here. I wish I could have welcomed her on 7 September for the urgent question on the auction round 5 strike price, but she was not here for that either, so what has the new Secretary of State been doing in the midst of the chronic energy crisis facing our constituents and allowing her Department to see shovel-ready offshore wind go into abeyance? What has she been doing?

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[Graham Stuart]

China has even greater offshore wind capacity than ourselves—it has the largest wind and largest solar capacity in the world—and it has a significant level of production. We recognise that we will need technology from all over the world, including China, if we are to meet our net zero aspirations.

[Mr Speaker]

I call the shadow Minister.

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[Graham Stuart]

On 5 September, the Government announced changes to national planning policy for onshore wind in England, giving greater flexibility to allocate suitable areas and to address the planning impact of onshore wind. I agree with the hon. Lady; I am an enthusiast for more onshore wind where it goes with the grain of communities, and we will continue to pursue that to make sure that we can realise the benefits that come from it.

[Mr Speaker]

I call the shadow Minister.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

The Minister will know, although he unaccountably did not tell us, that there was precisely no new onshore wind in England in the recent AR5. The Minister claims that the latest compromised wording, which he alluded to, will lift the ban on onshore wind, but he knows really that that is not so and he knows what the industry has been saying about it and why it will not invest for the future. The result is no new onshore wind getting built in the medium-term, higher bills for families and less energy security for the country. Why will his Department not just face down his luddite Back Benchers, introduce fair planning regulations for onshore wind and get the industry restarted across England?

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[Andrew Bowie]

As the Minister for Energy Security and Net Zero, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) suggests from a sedentary position, we are doing lots and lots. Specifically, the Government are using strategic planning to support investment ahead of the need in the networks, including the south-west. The first example of that was last year’s holistic network design, which set out a blueprint for connecting new offshore wind projects to the grid by 2030. An update to the holistic network design follow-up exercise, HND 2, will be published early next year and provide recommendations for the connection of floating offshore wind specifically in the Celtic sea. For the first time, offshore wind developers participating in the Crown Estate’s leasing round 5 will receive clarity over their grid connection from the electricity system operator at the same time as a secure seabed lease.

[Mr Speaker]

I call Clive Lewis.

[Clive Lewis (Norwich South) (Lab)]

The Minister may be surprised—[Interruption.] Indeed, Question 9, Mr Speaker.

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[The Minister for Energy Security and Net Zero (Graham Stuart)]

The Government have created an online advice service to help consumers in replacing fossil fuel heating systems, including oil boilers, with a heat pump. We are also providing funding through the boiler upgrade scheme.

[Mr Speaker]

This will be helpful.

[Sir Desmond Swayne]

Absolutely, Mr Speaker. There is a panic now in Germany as its premature ban on gas-fired boilers approaches. The Minister will want to avoid a similar panic as we approach our own premature ban on oil-fired boilers, won’t he?

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[Claire Coutinho]

I would be delighted to meet my right hon. Friend and discuss that particular case. We keep looking at everything we can do to support business, as we have done this entire time.

[Mr Speaker]

I call the shadow Minister.

[Sarah Jones (Croydon Central) (Lab)]

For years people have been calling on the Government to have a proper plan to help our steel industry decarbonise. Instead, the industry has lurched from crisis to crisis, and now the Government are spending £500 million in a deal that will make thousands of Port Talbot steelworkers redundant. Is it not the simple truth that jobs and wealth will be lost because there is no comprehensive plan for steel, automotive or any industry that needs to decarbonise?

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[Claire Coutinho]

I thank my right hon. Friend for raising this issue today. I understand that concerns have been raised by local communities about the National Grid electricity transmission plans for network reinforcement between Norwich and Tilbury. The Minister for Nuclear and Networks, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), has visited the area and will continue to engage with colleagues, but I am also happy to meet local MPs to discuss the matter further.

[Mr Speaker]

I call the shadow Minister.

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[Graham Stuart]

rose—

[Mr Speaker]

The Minister is desperate to do so.

[Graham Stuart]

Further to that point of order, Mr Speaker. The hon. Lady is quite right to raise this in that way, and I am happy both to withdraw that and to apologise to her for getting my facts wrong on that occasion.