Oral Answers to Questions
Debate between Matt Hancock and Lord Lilley
Mr Peter Lilley (Hitchin and Harpenden) (Con)
8. What assessment he has made of the effect on (a) generating capacity and (b) the transmission network of an increased reliance on intermittent energy supplied by renewable sources.
The Minister of State, Department of Energy and Climate Change (Matthew Hancock)
Electricity generation always needs to balance supply and demand. The transmission system clearly has to change to accommodate expanding renewables, and Ofgem’s new framework will help that happen.
Mr Lilley
I note that my right hon. Friend does not give any costs for the extra capacity required for when the wind does not blow or the sun does not shine and the extra transmission lines required to transmit from long distance. Will he confirm that those costs are not included in the £7.6 billion levy control framework, despite the fact that the former power director of the National Grid puts them at £5 billion a year? If they were included, the potential total cost of all the subsidies could be £500 per household per annum.
Matthew Hancock
The levy control framework specifically controls the amount of direct subsidy, but a whole series of changes needs to happen to make sure that our transmission system can keep up with the distribution of energy supply as well as the demand. That includes changes to interconnectors—in other words, getting more of them—and making sure that we have a smarter grid and distribution system. It is difficult at this stage to calculate the cost of those changes.
Oral Answers to Questions
Debate between Matt Hancock and Lord Lilley(9 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Matthew Hancock
As the hon. Gentleman says, the Scottish authorities already have control of planning for onshore oil and gas, and the Smith commission recommends that the licensing of onshore oil and gas underlying Scotland be devolved, whereas the licensing of offshore oil and gas will remain reserved. The proposals to bring this matter forward in a Scotland Bill are ongoing, but as he knows, the Infrastructure Bill is also going through this House as we speak, and we will look at the proposals for how we can make this agreement real.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
When my right hon. Friend hands out licences, particularly in Scotland if it remains his power, will he make it clear that those who claim that hydraulic fracturing is a novel and dangerous process are talking nonsense? Far from being novel, 2.5 million wells have been fractured. Far from being dangerous, nobody has been poisoned by contaminated water, and no building has been damaged by the minute tremors, which are one thousandth of the power of natural earthquakes in this country.
Matthew Hancock
My right hon. Friend makes a powerful argument. Of course the regulatory regime for onshore oil and gas extraction in the UK is very strong. Onshore oil and gas extraction has been going on for many, many decades and hydraulic fracturing has been used onshore over many decades in the UK. We will continue to try to make the most of these huge reserves underneath the UK and do so in a careful and cautious way.