Electricity Grid Upgrades

Michael Shanks Excerpts

Tuesday 26th November 2024 Westminster Hall

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

That was almost a year ago.

[Andrew Bowie]

Quite. Regardless of the technologies that are selected, of whether the pylons and associated infrastructure are built and of any right hon. or hon. Member’s view, communities out there want to know what the community benefits package and the trade-offs will be, and what they will receive as a result of having to host infrastructure in the national interest. An update on that would be delightful.

--- Later in debate ---

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

It is a pleasure, Sir Christopher, to serve under your chairmanship. I thank the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) for introducing the debate, for his approach, and for the engagement we have had on the topic in the short time that I have been in this job. While I suspect we might disagree politically on a great many things, his repeated commitment to the need for net zero is important, and separates him from some hon. Members who might make the issue of grid updates part of an excuse to avoid dealing with the climate issue. I welcome that, and I was pleased to meet him and his colleagues recently to discuss the matter.

I also thank all others who have contributed to the debate. I welcome the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) to his new role. He is not just a shadow Energy Minister now, but shadow Secretary of State for Scotland. Clearly, he did not have enough on his plate before. I do not know what it says about the Scottish group of Conservative MPs that he has two jobs, but I will leave that to one side. The debate this morning has been wide-ranging, although I confess I did not anticipate an existential question from the right hon. Member for South Holland and The Deepings (Sir John Hayes) about the nature of beauty and the environment. I learned a lot from that, but I will leave the theological debate about pylons to others in the House.

I want to pick up on the general context first, and then some of the specific issues that have been raised. When it comes to the security of our energy future, few matters face us as a Government more important than the delivery of network infrastructure. It was the topic of the very first meeting I had as a Minister, and has been the topic of almost every other meeting I have had in this job, with a range of different people looking at it. Our network infrastructure is in dire need of upgrading.

I will start with the point that the shadow Minister finished on. I recognise that the impact of delivering these upgrades, while important to our national infrastructure, will be felt in individual communities; that is the nature of this. I recognise that there will be communities across Great Britain and Northern Ireland that will have to host energy infrastructure. We thank them for doing so and, while recognising the importance of upgrading infrastructure for the whole country, also recognise the need to get the balance right.

[Jim Shannon]

The Minister is always incredibly helpful with questions that I or anybody asks, which I appreciate and thank him for. For Northern Ireland to be successful, it needs support from Government here. The shadow Minister reiterated that. I ask the Minister to say something perhaps similar for the record, so that it is in Hansard. We in Northern Ireland need to be very much part of the strategy for the future. As others have said, it is the United Kingdom of Great Britain and Northern Ireland. We are always better together, but there are advantages—let us see some of those advantages.

[Michael Shanks]

While I thank the hon. Gentleman for his intervention, me repeating “better together” is sometimes tricky in my political party. I do, however, reiterate my commitment to the whole of the United Kingdom. He will know that I take that very seriously, and I have had a number of meetings on the topic with the Economy Minister in Northern Ireland, who is responsible for energy. Clearly, the role I have is different in Northern Ireland, given the transferred nature of energy policy and the whole island grid, but I take the issues very seriously and commit to that today.

The delivery of a reinforced modern electricity network is critical for every home and business across the country. It is a critical enabler for our Clean Power 2030 mission, which is designed to deliver not just energy security but economic growth, skilled jobs and cheaper energy, which the country so desperately needs. In short, transforming the network underpins our shared commitment to energy security, prosperity and the low-carbon future that the country needs. It is fair to say that this transformation is extremely long overdue. The last significant modernisation of the grid took place in the 1960s. New investment into industries of the future, such as data centres, will play such an important part in the economy of the next few decades. We need to deliver jobs around that, unlocking growth, but electricity demands will increase by an expected 60% by 2035 and double by 2050.

[Deirdre Costigan]

I want to bring the Minister’s attention to issues being faced in west London. He mentioned data centres; we recently had confirmation of a great investment from CyrusOne, but it has to get power from Enfield because there are huge constraints on the energy system in west London. Does the Minister agree that we need to ramp up the work on connecting these new investments to the grid? We must not allow the tactics of the Opposition, which are about delay and going back 14 years to decisions they should have made but never did. Now is the time to take action; people should not be required to pay higher energy fees than they should, which is another aspect of this issue.

[Michael Shanks]

I agree with my hon. Friend on that important point. Connection dates on both the generation and demand sides are much too far in the future. We need to build more of the network structure across the country and reform the way we deal with connections, which is ongoing.

I am conscious of time and want to give the hon. Member for Harwich and North Essex time to respond. We have heard from a number of hon. Members about the impact of grid expansions on their communities. I want to make three key points. First, I do not accept that grid expansion is riding roughshod over communities. Communities will have a say in these projects. Secondly, I take a less dismissive view than some hon. Members about the importance of genuine community benefits. If communities host infrastructure and generation, they should benefit. The shadow Minister referred to work under way, which he said the previous Government spent a year on and we have moved on in five months. We are moving quickly to work out what effective community benefit looks like. We are developing guidance on that, particularly for hosting transmission network infrastructure, which will be published in due course.

On the point about modern technology, delivery of the network is underpinned by the latest technology, tailoring it to locations that urgently need reinforcement. It relies on upgrading existing power lines first, and uses innovative strategic design and options to find solutions that balance ecological impacts and, crucially, cost. That is important, given that the cost is borne by billpayers across the country.

Hon. Members will be under no illusion that we have to expand the network considerably, rewiring and connecting to new areas of demand in future. That is why we have outlined our mission of clean power by 2030. We will publish our response to NESO’s report soon. The mission will be achieved by investment in renewable generation, including onshore and offshore wind, solar and storage. There can be no transition to that clean power future without the grid upgrade. That work will take us to 2030 but, given the increase in demand to 2050, it will have to continue far beyond that.

I want to pick up a point about NESO’s advice on cost. NESO’s advice on the project in East Anglia concerns whether it will be cheaper or more expensive. A number of hon. Members should review that advice more carefully. I would have gone into more detail but I have only 40 seconds to wrap up. It is worth clarifying that delays in delivering the undergrounding part were not factored into some of the points that the hon. Member for Harwich and North Essex made.

To conclude a wide-ranging debate, we are on the edge of an industrial and energy revolution. We want to reduce bills and deliver energy security. To do that we need to upgrade the grid infrastructure, which must be hosted in some communities. We want to bring them with us but that work has to be done, and that is the commitment of this Government.