Oral Answers to Questions

Michael Shanks Excerpts

Tuesday 8th October 2024 Commons Chamber

[David Pinto-Duschinsky (Hendon) (Lab)]

4. What steps he is taking to improve energy security.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

The energy shocks of recent years have laid bare the exposure of our energy system to the international fossil fuel market. That is why we have started a mission to reach clean power by 2030, to end that reliance and ensure that the British people never again go through the sort of cost of living crisis that they have faced in recent years under the Conservatives.

[David Pinto-Duschinsky]

People across Hendon have paid the price for the previous Government’s failure over the last 14 years to invest in our energy system. Does the Minister agree that the only way to get us off the rollercoaster of high bills is to invest at pace and scale, as the Government are doing through our clean energy mission?

[Michael Shanks]

I completely agree. The only way to permanently protect hard-working families and businesses from the high energy bills from which many are still suffering is to get ourselves off our reliance on the volatile fossil fuel markets. That is why we are rolling out at pace and at scale the clean power necessary to do so, which not only gives us energy security but creates good jobs, brings down bills and helps us to tackle the climate crisis.

[Lee Anderson (Ashfield) (Reform)]

The Secretary of State will be aware that 25% of the UK is situated on top of coalmines, which can provide geothermal energy to heat houses and businesses in places like Ashfield. Will the Minister meet me to discuss how we can make that work in coalfield communities?

[Michael Shanks]

I very much welcome the hon. Gentleman’s question—which I must say is somewhat of a surprise. I will absolutely meet him to discuss that. We have been clear that any technologies can be part of the solution and, if that can be part of the picture, I will meet him to discuss the options and the technology more generally.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

One of the ways in which we can increase energy security is through community-owned and co-operative energy schemes. They give greater control to local people, who get a say in where profits go, and crucially they build resilience from international energy markets. Will the Minister say a bit more about where community-owned energy will fit into the energy security plan?

[Michael Shanks]

I thank my hon. Friend for that incredibly important question. Community energy has so many benefits in our energy mix, including giving communities a stake in our energy future. We also know that there are many social and economic benefits that come from that. We are committed to our local power plan, which will deliver investment in community-owned projects. Great British Energy will have a key role to play in supporting communities, capacity building and in that initial funding to help them deliver these projects.

[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

Could I invite the Minister to meet a cross-party group of MPs from the east of England to discuss how the review conducted by the electricity system operator can contribute to energy security and in particular to look at how undergrounding high voltage direct current cables could be cheaper in the long term than pylons and more efficient for achieving net zero? Will he agree at least to have a meeting with us on that basis?

[Michael Shanks]

I am always happy to have meetings with any right hon. and hon. Members across the House on a range of issues, so I will take that away. The evidence suggests that undergrounding is five to 10 times more expensive and that actually it can have more of a damaging impact on nature and natural habitats than pylons. The important thing with all of this is that this is nationally important structure, which is necessary for us to get to the targets that we want to get to. I know that the hon. Gentleman takes that seriously, and I will meet him and others, but we have been clear as a Government that we will build this infrastructure if it is necessary.

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[Tessa Munt (Wells and Mendip Hills) (LD)]

11. What steps he is taking to increase grid capacity

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

We are halving the development time for new transmission infrastructure through reforms of planning, supply chains and other areas, delivering the grid capacity that is needed to achieve clean power by 2030 and meet a doubling of electricity demand by 2050.

[Tessa Munt]

Communities are doing their very best, and lots of people are trying to help each community to power itself. My own village has its community solar project, which was fully funded by local residents. There are non-profit organisations which have dealt with local schemes by putting solar panels on schools with an element of community ownership, and there are individuals who try but are faced with extortionate costs for connection to the grid. The grid was really designed for big old power stations rather than smaller power creators trying to plonk power into the system. What can the Minister do to encourage National Grid to pivot, and help communities and individuals to create their energy nearer to their homes?

[Michael Shanks]

The hon. Lady is right to draw attention to the importance of community energy projects throughout the country. We want to see many more of them, but we have inherited a grid that needs significant upgrading, and we are now working apace to ensure that that happens. Part of the work that I have been doing with National Grid and others involves trying to identify the next steps that are needed to shorten the connections queue, and also to make it more affordable for smaller community projects to connect. There is an important role for partnership as well, with some of the bigger renewables projects giving part of their connections queues to smaller ones, and that is already happening in some parts of the country. There is no doubt that there is much more to do, but we are, as I have said, working apace to try to move this forward after 14 years of inaction.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Pippa Heylings (South Cambridgeshire) (LD)]

As we have heard from my hon. Friend the Member for Wells and Mendip Hills (Tessa Munt), the lack of national grid capacity is holding back the UK’s push towards renewable energy. There are numerous examples of projects that have been delayed because they are waiting to be connected to the national grid, or because connection is too expensive. In my constituency, we cannot even connect the solar panels and batteries for the ambitious plan to decarbonise and electrify the refuse fleet for South Cambridgeshire district council. The projects that have been delayed include the building of new homes, which is crucial at present. Can the Minister explain to us how we are to reach this stage on the scale and at the pace that is needed?

[Michael Shanks]

The hon. Lady is right to highlight those issues. The connections queue, in particular, is a huge challenge, with more than 700 GW waiting to join it. The last Government did some work to establish how the queue could be prioritised, and we will now implement that, but we need to go further. It is clear that by 2030 we will need to build four times as much new transmission network as has been built since 1990. This is a project to rewire the entire country, to improve the current connections availability, and to work with everyone, including the new national energy systems operator, on the road map towards 2030.

[Abtisam Mohamed (Sheffield Central) (Lab)]

12. What steps his Department is taking to increase clean electricity generation.

[Michael Shanks]

The latest contracts for difference round secured a record 131 renewable electricity projects across Great Britain. This will deliver a total capacity of 9.6 GW, enough to power the equivalent of 11 million homes. The Energy Secretary will continue to work with industry to explore how the contracts for difference scheme, and other energy policies, can be expanded even further.

[Abtisam Mohamed]

I commend the Secretary of State for his excellent work since he took office in accelerating clean electricity generation in the UK, and I commend the fantastic team he has with him. The Minister is right to say that there is a clean energy imperative if we are to tackle the climate crisis, boost our energy security and reduce our bills. What steps has the Minister taken to ensure that this Government encourage and take advantage of the significant opportunity around community energy, and will he meet me and representatives from my constituency of Sheffield Central to discuss how we can boost the growth of community energy?

[Michael Shanks]

I thank my hon. Friend for her question. She is absolutely right to say that, in order for us to meet our 2030 ambitions, we will need a whole range of different options. Community energy is a critical part of that, helping to deliver energy security and lower bills. Crucially, it also gives communities a stake in the energy future. That is why one of Great British Energy’s five objectives is to support the delivery of a local power plan, which puts local communities, combined authorities, local authorities and others in the driving seat in restructuring our energy economy. I am happy to meet my hon. Friend and others to discuss this issue further.

[Greg Smith (Mid Buckinghamshire) (Con)]

Contrary to what one of the Ministers said earlier, the last Government brought about one of the largest revivals in nuclear energy in 70 years in order to provide clean electricity generation, yet we hear precious little from the new Government on their plans for nuclear; we hear only their plans for inefficient technology that will destroy the countryside. Why are they so anti-nuclear, and when are they going to get on with delivering nuclear energy?

[Michael Shanks]

I will give credit to the Conservative Government on one thing: they were very good at making grand announcements. On delivery, however, they were much poorer. Looking at a whole range of things—carbon capture being a very good example—they had lots of warm words but no delivery whatsoever. On nuclear, they had lots of warm words but no delivery whatsoever. In 14 years, how many nuclear power stations were built under the Conservative party? None. We will get on with doing the work.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

If we want to see an increase in clean energy generation, we need more announcements such as the one we saw last week on the development of carbon capture, usage and storage. Although that is incredibly welcome and a sign of determined action from the new Government, there is still more to be done. Perhaps the Minister can give an indication of when he anticipates he will be able to announce progress on track 1 extension, and share some information on track 2, because that would secure thousands of jobs in the Humber region.

[Michael Shanks]

My hon. Friend is absolutely right to say that in the three and a bit months that we have been in government we have moved at pace to deliver the largest renewables auction in history and to make last week’s announcement on carbon capture. We are working through the next stages of the process at pace, and we will have further announcements in the weeks ahead.

[Graham Stuart (Beverley and Holderness) (Con)]

Does the Minister agree that it would be better to have the right electricity system in 2032 or 2035 than to have the wrong one because of an artificial target, which may be undeliverable by 2030?

[Michael Shanks]

I could be wrong, but I think the right hon. Gentleman previously said that his own Government’s plans on onshore wind in England were not the right approach to take. I agree with him, which is why we lifted the onshore wind ban. The reality is that whereas the previous Government used to talk the talk on climate action, we are the ones now delivering—and delivering an energy system fit for the future.

[Mr Speaker]

I call the shadow Minister.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

One way to increase clean electricity generation in the United Kingdom would be to invest at pace in new nuclear. We left government with a clear plan to get to 24 GW of nuclear power by 2050. Does that target remain?

[Michael Shanks]

This is the whole point about the Conservative Government, and it is why we have inherited such an economic mess: they made a series of announcements, with absolutely no funding to back them up. As you would expect, Mr Speaker, I pay close attention to the Conservative party conferences, and the hon. Gentleman made a very astute point, which I am happy to repeat for the benefit of Hansard and the House: “After 14 years of Conservative Government, we are now in a position where it’s more difficult to build critical infrastructure than it was when we came into power”. I could not have put it better myself.

[Andrew Bowie]

Our record on nuclear speaks for itself. We launched the small modular down-selection process and Great British Nuclear, and invested £200 million in new advanced nuclear fuels. We consulted on a new route to market for advanced modular reactors and new technologies, and granted a development consent order for Sizewell C. There is concern that there is a go-slow in the Government right now, so when can we expect a final investment decision on Sizewell C? Will it still be this year?

[Michael Shanks]

I was not aware when my right hon. Friend the Secretary of State changed the titles of the ministerial portfolios that we had moved away from having a Minister for consultation, but it seems that all the hon. Gentleman was doing in his time in office was launching consultations. We are going to get on with delivering and we are moving at pace on the whole of the electricity system, including on nuclear, and delivering on the things that he failed to do.

[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

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[Danny Beales (Uxbridge and South Ruislip) (Lab)]

T3. Grid capacity and the slow speed of new connections is a major issue in west London. It is holding back house building, and it is holding back businesses exciting new green businesses such as Allye Energy in my constituency. The Conservatives did absolutely nothing in 14 years to tackle the issue. What is my right hon. Friend’s strategy, and will he meet me and local businesses to discuss how we can tackle this issue together and meet our missions around growth and good clean energy?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

My hon. Friend is absolutely right to say that that issue is holding back projects across the country, which is why we have tackled it from day one. We are attempting to release network capacity, which can then be reallocated to accelerate the connection of viable projects. There is a lot of work to do, and we are building on what the previous Government did to prioritise the queue and to build the necessary infrastructure that should have been built over the past 14 years.

[Sir John Whittingdale (Maldon) (Con)]

T2.   Does the Secretary of State accept that the only way we will both meet our net zero targets and keep energy bills down is by pressing ahead with a new generation of nuclear power stations? Will he therefore accelerate existing projects such as Hinkley Point and Sizewell C, and press ahead with small modular reactor and advanced modular reactor technology?

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[Anna Dixon (Shipley) (Lab)]

T9. I welcome the Government’s commitment to increasing renewable energy generation. An important component of that is the development of associated infrastructure, including battery storage facilities such as those proposed in Cullingworth in my constituency. How do the Government plan to ensure that the safety of residents is not put at risk by such developments, and that there is clear community benefit from any renewable energy plans and the associated infrastructure?

[Michael Shanks]

Batteries will play an important part in the short-duration storage required for the energy system we are building for the future. It is a question of balance. Communities will be engaged in the consultation process, and I will be convening a roundtable with providers of battery technology and other short-duration storage in the next few months to learn both from projects that have worked well and from projects on which we could do better in future. I will happily share any information from that with my hon. Friend.

[Zöe Franklin (Guildford) (LD)]

T8. Will the Secretary of State commit to ensuring that large energy suppliers work with community energy organisations to generate and sell electricity locally at discounted rates, and provide fair community benefits, as proposed by the Liberal Democrats?

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[Clive Jones (Wokingham) (LD)]

In my constituency, a new solar farm at Barkham is being delivered that will provide clean energy for more than 4,000 homes and provide a funding boost for Wokingham borough council. It will be connected in 2026, but there were concerns that connection to the grid could be delayed by 11 years. What steps will the Minister take to reduce similar delays, and does he think that the Government can meet their net zero targets if the new renewable energy infrastructure cannot be quickly connected to the grid?

[Michael Shanks]

I thank the hon. Gentleman for his question. A similar point has been raised by many hon. Members across the House. This issue affects areas right across the country. We are doing what we can at the moment to prioritise the connections queue, so that the most important projects, or those most able to be delivered, can move forward. There is much more that we can do on that, but, fundamentally, we need to build much more network infrastructure in the first place so that we can speed up and reduce the cost of these connections for schemes such as the one he mentions.