UK Energy: Grid Decarbonisation

Lord Hunt of Kings Heath Excerpts

Monday 24th March 2025 Lords Chamber

[Lord Offord of Garvel]

To ask His Majesty’s Government what assessment they have made of the impact of their plans to decarbonise the grid by 2030 on the United Kingdom’s energy security.

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, in an era of heightened geopolitical risk, switching oil and gas for home-grown clean energy from renewables and other clean technologies offers security that fossil fuels cannot provide. NESO’s independent modelling confirms that achieving clean power by 2030 is feasible, while ensuring security of supply without increasing costs to consumers, with scope for lower bills.

[Lord Offord of Garvel (Con)]

My Lords, this self-imposed target of decarbonising the grid by 2030 is all very admirable but is it realistic and is it achievable? Looking at my national grid app, it is telling me that right now, today, renewables are 43% of the grid and the rest is non-renewables. Noble Lords may have noticed that this is quite a good day for sun and wind, which is why it is at a high number. Last year, the average was 37% from green energy. That is precisely why this is unachievable, and a target that we cannot hit in 2030. In one simple word, it is called “baseload”. In China, they use coal for baseload and in America they use shale gas for baseload. That is why factory electricity is seven times cheaper in China and five times cheaper in the United States. We have abundant hydrocarbons in the UK and we have great nuclear capability. Is now not the time to review this target to make it realistic and, more importantly, affordable for British consumers and businesses?

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[Lord Hunt of Kings Heath (Lab)]

No, my Lords, and I very much regret that the Opposition have withdrawn their support for policies taking us towards net zero, particularly in view of the fact that the noble Baroness, Lady May, took the decision when Prime Minister to legislate for the 2050 net-zero target. It is interesting, in relation to China, that the IEA reckons that 60% of the global expansion in renewable energy between now and 2030 will be in China. As for the noble Lord’s obsession with fossil fuels, the reason that we have these high prices, which the party opposite bequeathed to the country, is the unreliability and volatility of the international gas and oil markets. Getting clean power gives us energy security and much more reliability in prices.

[Lord Ravensdale (CB)]

My Lords, I declare my interest in the register. Can the Minister please update the House on the progress his department is making with banning the imports of Russian nuclear fuel? Importantly, when will it be taking those measures, with all the benefits that will bring for not only energy security but national security and our domestic industries?

[Lord Hunt of Kings Heath (Lab)]

I am grateful to the noble Lord for raising this question again. He will know that the Government have committed to prevent the import from Russia of nuclear fuels by 2030. We are discussing whether we could bring this forward. I am afraid I cannot give him any more information at the moment, but as soon as a decision is made, I will let him know.

[Viscount Hanworth (Lab)]

My Lords, since the announcement by President Macron in the autumn of 2021 of the France 2030 agenda, France has been committed to closing the nuclear fuel cycle. This means that it intends to use its uranium more efficiently and to deploy nuclear waste in its reactors. It is motivated by the supposition that, by 2050, the stocks of uranium will be pre-empted by the Chinese and the Americans. What is the Minister’s reaction to this supposition? Is the UK likely to follow the lead of France?

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Lord will know that through Urenco, at Capenhurst, we are investing a considerable amount of money into the HALEU programme to enable us to have the whole fuel cycle undertaken in the United Kingdom. This is good for energy security and good for exports. I understand the point that the noble Viscount makes about uranium. We are confident in the future supply, but I acknowledge his underlying point of the importance of nuclear energy as an essential baseload.

[Baroness Sheehan (LD)]

My Lords—

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[Baroness Sheehan (LD)]

Does the Minister agree that consumers choosing green electricity as their preferred source of power is a powerful driving force for the increasingly rapid uptake of electric vehicles, for example, given that UK EV sales increased by more than 20% last year? Surely it is far better than relying on fossil fuel generation from unstable regions such as the Middle East and Russia for long-term energy security.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I totally agree with the noble Baroness that the wholesale move to electrification, not just in power generation but in transport, industrial processes and home heating, will lead us to be much more energy secure. We will ensure that we make the contribution we need to make to deal with climate change and we can grow the economy and bring thousands more green jobs to this country.

[Lord Kirkhope of Harrogate (Con)]

My Lords, there appears to be a contradiction. Certain Ministers are encouraging the farming industry to use as much of the good agricultural land as possible to produce food, and yet other parts of government are hell-bent on having solar panels everywhere, including on our best agricultural land. What exactly is the policy of the Government on this?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I do not think there is any confusion at all. The policy is quite clear. We value our agricultural land, and the total amount of it that could be used by solar in future, over a considerable number of years, is less than 1%. The noble Lord may have noticed that, on 21 March, only two or three days ago, Great British Energy announced that its first major product will be the solar accelerator, which will enable hundreds of schools and hospitals across England to install new rooftop solar power. We are not just talking about the use of agricultural land. We want to see an expansion of solar, but it can be in relation to schools and hospitals and buildings as well.

[Lord Lennie (Lab)]

My Lords, when will the Government make a decision about the awarding of a contract for advanced small modular reactors in this country?

[Lord Hunt of Kings Heath (Lab)]

My Lords, a process for small modular reactors is being undertaken by Great British Nuclear at the moment. It has undertaken a technology appraisal, tenders have now come in, and I expect that the outcome of the process will be known by the end of spring. That is tied into SR discussions.

[Lord Alton of Liverpool (CB)]

My Lords, did the Minister note over the weekend the views of Unison and the Independent Anti-Slavery Commissioner, along with the letter sent by a Holocaust survivor to Mr Ed Miliband, all supporting the all-party amendment, which was passed by your Lordships’ House by a majority of 50, saying that there should be zero tolerance for the use of slave labour in supply chains? When Mr Miliband went to China last week, did he raise the use of Uyghur slave labour in the manufacture of solar panels and other green technology? Did he raise the use of child labour in the DRC in lithium and cobalt mining and their use in green technology, including these solar panels?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I understand the noble Lord’s concern. He will know that the Great British Energy Bill is being debated in the other place in a day or two’s time. I understand the point that he raises and we will look at that letter with a great deal of consideration. We are committed to tackling the issue of forced labour in supply chains, and legislation and guidance are already in place to help businesses take action against modern slavery.

[Lord Howell of Guildford (Con)]

Could the Minister, who is usually very clear, be a little clearer with us about what is meant by decarbonising the grid by 2030? A number of authorities are saying that that is not what is going to happen at all. A number of gas-generating electricity stations are already being commissioned, and when they are there in 2030, as they will be, they will emit large amounts of carbon dioxide. How is that going to be handled? How is it going to be buried? Have the contracts begun for carbon capture and storage? It does not appear that there is much sign of that.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Lord will recall that we signed contracts in December to launch the first carbon capture, usage and storage project. We expect that, by 2030, clean sources of energy will produce at least 95% of Great Britain’s generation, and gas power generation will be there mainly as a back-up.