Energy Developers Levy

Michael Shanks Excerpts

Wednesday 25th February 2026 Westminster Hall

[The Minister for Energy (Michael Shanks)]

It is a pleasure to join this debate under your chairship, Mr Twigg; I know that you take a great interest in these issues. I thank my hon. Friend the Member for Suffolk Coastal (Jenny Riddell-Carpenter) for securing the debate. The hon. Member for Strangford (Jim Shannon) was right: my hon. Friend is making a name for herself as a hard worker in this space. Our meetings about this issue have been genuinely really helpful and insightful for me—and her as well, I hope. She is right to flag these issues.

I should also say at the outset that I genuinely welcome the tone that my hon. Friend has taken since she has become MP for Suffolk Coastal. In this place at this time, it is very easy to take the view that the easy answer is simply to say that we should not build anything anywhere ever again and let the country continue to slide further and further backwards; many on the Opposition Benches, who of course are not here at all, would say that.

My hon. Friend concluded her speech by saying something worth repeating: many in her community and across the country are pro the energy transition—they are pro-investment, pro-growth and pro-building the infrastructure—but they rightly want to know that that will be well planned and benefit their community. It is entirely legitimate for communities to ask for that and to be concerned when it does not happen. Given that spirit, she has raised this debate in the right way.

I want to pick up on a couple of things and also go back to why the infrastructure is so important in the first place. We sometimes lose sight of why it is so important for us to build energy infrastructure—in particular, much of the transmission infrastructure that is in my hon. Friend’s constituency. She said that the previous Government had not done that work, and I will come back to that.

It is worth remembering that since this Government came to power we have sought to tackle the energy trilemma: how we bring down bills and make the cost of living more affordable—today’s decision on the price cap is an important statement of how seriously we take that mission; how we deliver our long-term energy security in an uncertain world and how we move away from the volatility of fossil fuels, which have cost us so dearly in recent years; and how we build infrastructure that sets the country up for the future. This is about connecting not just renewable energy but the demand projects that will stimulate economic growth across the country. If we do not do these things, all we will do is harm that economic growth. Those decisions are incredibly important.

[Mr Carmichael]

I urge the Minister to learn from the experience of Shetland and Sullom Voe, 50 years ago. We took the most important step on North sea oil and gas coming ashore in Shetland, but on our terms: there was a genuine funding stream coming to the community. If we give the whip hand to the corporates, they will always use it to their benefit.

[Michael Shanks]

The right hon. Gentleman makes a good point; a generation of lobbyists should look back at the history books of Shetland Islands council at the time, because it is an extraordinary story of how it seized the opportunity of what it knew then would be decades North sea oil and gas and has still benefited from it.

I was also going to come to the right hon. Gentleman’s other point, around the Viking wind farm, which I have seen in the Shetlands myself. The scale of it is extraordinary, but the community benefits are not where they should be and the community is not feeling enough of the benefit of it. It is important that we do everything we can to reduce the constraints on wind, so that local communities benefit directly from it and the country as a whole benefits from cheaper power on the grid, bringing down bills.

Let me turn to some of the actions that we have taken since we came into government. We have set up Great British Energy—a really important moment for us to say, for the first time in 70 years, that we want the public to have some ownership stake in our energy future. We have delivered the most significant programme of investment in home-grown clean energy in our history. Just a few weeks ago, we published the local power plan, the biggest shift of wealth and power in the energy space in British history, to make sure that energy projects are not just built by developers, but owned by local communities that have a real stake in their energy future. We also published the warm homes plan, so that we can have the biggest upgrade to homes in British history.

Any infrastructure, in the energy space or elsewhere, brings local impacts, and there is no point in anyone pretending that those impacts do not upset local people. That is why we have an extremely rigorous planning system, why we take great care over decisions that are made and why, at times, there is great frustration about the length of time it takes for planning decisions. However, that is because the public rightly have a voice in that process, and important determinations should take time. We should always remember the fundamental outcome: since the poorest in our society have paid the price from our exposure to fossil fuels, the infrastructure we are building today is imperative, and it is important that we move faster than ever before.

My hon. Friend the Member for Suffolk Coastal and I have talked about cumulative impact before, and I have said repeatedly in the House that it is a serious issue. All nationally significant infrastructure projects must take account of cumulative impact, including the range of those cumulative impacts—not just the number of projects in a particular place, but the impact on other local services and other bits of infrastructure. They must submit a local impact report, which makes the examining authority aware of what those potential impacts are. That process must demonstrate that the applicant has taken seriously the concerns of local communities. If they have not, that will count against them. Consultation cannot be an exercise to tick a box; there must be some demonstrable engagement with that process. Local communities have a voice in that process through early consultations, but they can also register through the Planning Inspectorate in the pre-examination stage. All those various issues are taken into consideration.

Let me also speak to the broader point about how we plan the future energy system. My hon. Friend made a correct observation: while the previous Government now want to run a mile from all the renewable energy projects that they developed, which we would support— I think I am the only person still cheerleading the previous Government’s drive for renewable energy, because they certainly are not—they did not design and co-ordinate the system such that we were not building unnecessary grid to connect all those projects. My hon. Friend’s constituency is a good example of where better co-ordination at a strategic level would have got the same outputs from the system, but with much less local impact.

We are taking forward a number of things—this is where we get into the acronym soup that is the energy world. First, and most importantly, the National Energy System Operator will design the first ever strategic spatial energy plan, or SSEP, which will be published by the end of next year. This is an important opportunity for us to design the future of our energy system holistically: to take into account what can be built where and what the future energy system looks like for our needs, not now, but in the future. As a result of that planning, we can design the most efficient network and transmission system that goes with it. The centralised strategic network plan, which will be the holistic design of the network, will follow that. This is something that we should have done 15 or 20 years ago, but we start from where we are now, and we are determined that the future of our energy system will be much more strategically planned and aligned.

That plan will take into account local impacts and views, and the regional energy plans in particular will take a much more granular and local look, engaging with local authorities and others to make sure that those plans really take into account both local needs and local opportunities. Those will be designed for Scotland, Wales and nine English regions, and we will bring together various people to share their views on how the plans should meet local priorities. I want to be really clear about the scale of that work. The reason why the Government are taking longer than perhaps we would like is that that is the best way to plan long into the future what the system will look like, and to give communities a real opportunity to shape it at an early stage. That is important for the planning of the system and for community benefits, which other Members have raised.

It is really important that we fundamentally recognise that communities who host energy infrastructure are doing a service for the country. Infrastructure has to be built somewhere. There is not some third place that would let us say, “Well, we are in favour of this, but please don’t build it in my area.” At some point, it has to go somewhere; as a Government, we are done with dither and delay and we are going to build things again, but communities should get a benefit from that infrastructure being built. We are committed to making sure that communities who host infrastructure will benefit. As my hon. Friend said, we have consulted on whether community benefits should be made mandatory—at the moment, they are voluntary and a patchwork across the country, and they have different degrees of impact on communities, even where the funding is being delivered—and we will respond to that consultation soon.

In the Planning and Infrastructure Bill, we have also outlined the very first community benefits and bill discounts for people close to transmission infrastructure, recognising that often they have been left behind in terms of community benefits, as pylons and transmission wires flow through communities. That scheme will be up and running soon. It will directly deliver money off bills for those people living within 500 metres of new transmission infrastructure, but also millions of pounds of investment in communities next to significant pieces of transmission infrastructure such as substations. The grid is critical for the future of the country, and those who host grid infrastructure should get some benefit from that. In July last year, we also published guidance on voluntary community benefits to make sure that they are as robust as they can be.

My hon. Friend mentioned a levy, and I am happy to meet her to discuss that further. I pay tribute to the fact that, having identified a problem, instead of just bringing that problem to the House—I do not want to criticise other hon. Members here—she has worked on a solution. I am happy to engage with it and to look at it further.

There are two things that I want to say clearly. First, the affordability crisis is this Government’s No. 1 objective. It is driving decisions right across Government. It is what has led to a 7% reduction in bills from the next price cap period, which was announced today. Every single penny that might find its way on to bills has to be scrutinised very carefully. I am initially hesitant at the idea of an additional levy. Although my hon. Friend made the point that these energy companies are making significant profits, and I would not disagree with her on the scale of some of those profits, we should also be aware that, unless the Government are going to take a power to cap those profits, it is likely that the cost of a levy and the costs of the projects themselves would simply be passed on. Consumers, at the end of the day, would pay for it. I will look into her suggestion further, because every penny on bills makes a difference.

Finally, on section 106 agreements, in addition to community benefits arrangements locally, developers are already required to mitigate specific local impacts through 106 agreements. They are legally binding agreements that are paid to local authorities. With section 106 agreements and community benefits together, we think work is being done to invest in and enhance communities, but I am happy to look at what my hon. Friend has proposed in more detail.

To conclude, I reiterate two things. First, my thanks not only to my hon. Friend the Member for Suffolk Coastal, but to right hon. and hon. Members across the House who made serious points and suggestions on how not to turn away from necessary investment, but to ensure that communities genuinely benefit from it. They are absolutely right to champion their local community and to ensure that everyone benefits from the energy transition. Secondly, we should not for a moment think that building that infrastructure is optional, or that it can all be done somewhere else. There are those in this House who believe that we can simply go backwards to deliver energy security and affordability without a serious and credible plan to do so, but simply tying communities to fossil fuels for longer is not a serious proposition.

I reiterate what I said at the beginning. My hon. Friend rightly made the case that all the polling that we have seen points to the country being in favour of the energy transition. Every piece of research points to the importance of tackling the climate crisis, which is not a future threat, but a very present reality. Infrastructure, which for too long has been held up in this country, is necessary to do that. It is necessary to get clean power, cheaper power, to people’s homes and businesses, and to bring down bills, but it is also absolutely necessary to unlock the economic growth that this country needs. There is no shortcut to doing that. We have to build the infrastructure that the country has been crying out for, for many years.

I thank hon. Members for their participation in the debate, including my hon. Friend the Member for Suffolk Coastal. I am happy to meet her to discuss the issues further. As I said at the beginning, we take seriously the role that communities play. We thank them for putting up with disruption when infrastructure is built, and for hosting that infrastructure on behalf of the country. We want to ensure that they benefit from it.

Question put and agreed to.

Local Power Plan

Michael Shanks Excerpts

Tuesday 10th February 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

Britain’s drive for clean, home-grown energy is central to our mission to build an economy that works for the many. Today, jointly with Great British Energy, the Department for Energy Security and Net Zero has published the local power plan, which presents a new vision for community and local power.

We are sending the clearest signal yet that local and community energy is a priority and that it is central to the clean energy transition we must deliver. The local power plan is the most significant expansion of support for community energy in our country’s history. Backed by up to £1 billion from Great British Energy, it will support at least 1,000 community and local energy projects by 2030, helping communities generate clean power and keep more of the value locally.

Community ownership is a proven tool for building local wealth, pride and participation, from community-owned pubs and leisure centres to pioneering energy schemes across the highlands, Wales and Bristol. This plan is about putting communities in the driving seat of the energy transition, ensuring clean energy is done with communities, not to them, and enabling them to share directly in the rewards. It represents a historic shift in how Government thinks about ownership in our energy system.

The plan brings together four strands of support delivered jointly by Great British Energy and Government:

Direct funding and finance: For too long, community groups with ambitious ideas have relied on small, short-term grants and have struggled to access finance. Great British Energy will provide targeted grants and loans from feasibility to construction. A blended local investment fund will help crowd in private capital and ensure viable projects can scale.

Capacity and capability: Many communities have the ambition but lack the technical or commercial support required. We are therefore creating a new advisory service and a “Community Energy in a Box’’ toolkit—offering templates, guidance and expert help for groups and local authorities to turn ideas into investable schemes.

Business model development: We will work with industry to establish repeatable, bankable models—shared ownership, joint ventures and smart local energy systems—so that projects can grow without long-term dependence on grants. These models will work in rural villages, coastal towns, city neighbourhoods and island communities.

Policy and regulatory reform: We will work with Ofgem, the National Energy System Operator and network operators to look to improve grid access, simplify routes to market and support shared ownership. Community schemes have faced barriers too high for volunteers but trivial for developers. We are working to remove those barriers in all four nations of the UK.

Since coming into power, we have already kicked off £280 million of funding, backing projects across all four nations—from schools in Oldham to community facilities in Blaenavon and Glasgow.

This additional £1 billion of funding from Great British Energy over the spending review period will help communities develop new projects, access early-stage grants and secure loans or project finance. This includes support for shared ownership so local people can buy a meaningful stake in renewable developments in their area. This funding will help power community pubs, sports clubs, miners’ welfare organisations and village halls across the country. This marks the beginning of a long-term effort to remove obstacles to growing community and local power.

The local power plan is the most comprehensive package to grow community energy our country has ever seen—building on our Pride in Place programme, the community right to buy, and our commitment to double the size of the co-operative sector. It follows the ambitious steps Great British Energy is already taking: cutting bills for schools and hospitals through new solar installations, building Britain’s clean-energy supply chains through the £1 billion “Energy, Engineered in the UK” programme, and investing in its first commercial project to put the UK at the cutting edge of floating offshore wind.

But this future will not be delivered from Whitehall alone. It will be built place by place, community by community. So today we are issuing an invitation to communities across the country: come forward with proposals for your area, and we will support you to help make them happen.

[HCWS1321]

Contracts for Difference: AR7 Solar and Onshore Wind Results

Michael Shanks Excerpts

Tuesday 10th February 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

The seventh contracts for difference auction results for onshore wind, solar and tidal stream have been published today—with a record number of projects, 189, totalling 6.2 GW.



Along with offshore wind results published in January, this makes allocation round 7 the largest round ever delivered, securing an unprecedented 14.7 GW of new clean energy capacity across Great Britain. This marks a major step forward in accelerating our clean power mission with successful onshore wind and solar AR7 capacity estimated to support up to 10,000 direct and indirect jobs at its peak.

Today’s announcement will support enough clean electricity to power the equivalent of over 3 million homes, helping to shield the UK from volatile global fossil fuel markets and deliver long-term affordability for consumers.

We have secured a record number of projects across the lowest cost energy sources to build and operate. Once built and generating, the new clean, home-grown power secured today will reduce household bills. New onshore wind cleared at £72.24 per MWh, and new solar at £65.23 per MWh, both under half the £147 per MWh cost of building and operating new gas power stations.

Today 4.9 GW of solar has been procured, which is the largest ever procurement of solar projects in the UK, at a clearing price that is lower than the previous round and a 13% discount to the auction ceiling price.

Some 1.3 GW of onshore wind contracts have been awarded, including the largest onshore project to be successful in England in over a decade and over 1 GW in Scotland. Through Government action to provide dedicated budget for onshore wind for the first time, we have achieved significant new capacity at a competitive price, with a discount of over 20% against the auction ceiling price.

The CfD scheme continues to support innovation in marine energy with four new tidal stream projects totalling 20.9 MW. This brings total CfD backed tidal stream capacity to 140 MW, maintaining the UK’s world leading position in this emerging technology. Tidal stream provides predictable, reliable power that complements intermittent generation from wind and solar. Around half of the world’s operational deployment of this cutting-edge innovation is situated in UK waters.

By supporting a diverse mix of offshore wind, onshore wind, solar and tidal stream projects, the AR7 package strengthens the UK’s ability to keep energy secure, affordable and resilient year-round—while delivering on clean power ambitions. This protects households from global energy price shocks, which have contributed to half of all recessions since the 1970s. In 2025 alone, global gas prices spiked more than 15% in a single week due to instability in the middle east, demonstrating the need to build a more secure and sovereign energy system.

The results of the solar and onshore wind auction announced today, along with the offshore wind result last month, are together a significant step forward for the clean power mission. Securing record capacity across Britain of the cheapest power sources and supporting thousands of new jobs—this Government are taking back control of our energy system and helping bring down bills for good.

[HCWS1318]

Advanced Nuclear Framework

Michael Shanks Excerpts

Wednesday 4th February 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

Today we are publishing the “Advanced Nuclear Framework” for private projects, which reinforces the golden age of nuclear. The framework sets out our approach to enabling privately led advanced nuclear projects, including small modular reactors and advanced modular reactors.

Recent global events have highlighted the importance of energy security and the need for a resilient, clean energy system. Nuclear energy has a vital role in delivering stable, affordable, and clean baseload power. The UK is already progressing major projects such as Hinkley Point C and Sizewell C, alongside Rolls Royce being confirmed as the preferred bidder following the Great British Nuclear small modular reactor technology selection process. We are now entering a new phase in the golden age of nuclear, one that harnesses private sector innovation to deliver advanced nuclear projects.

The framework explains how Government will create the enabling policy landscape for the private sector to initiate and deliver advanced nuclear projects. It is focused on supporting the development, commercialisation, and deployment of advanced civil nuclear private projects within the UK’s energy sector.

This policy direction is reinforced by the Government’s response to the nuclear regulatory taskforce, ensuring that regulatory reform keeps pace with the ambition of the framework. The Government accept the principle of all 47 of the taskforce’s recommendations. A full implementation plan will be published within three months, with reforms completed within two years, subject to legislation. Departments, regulators and industry should act now to support faster, lower-cost delivery of new nuclear and strengthen energy security.

The taskforce set out that these reforms could have a fundamental impact on the sector. They are intended to drive forward new nuclear in a safe, affordable way, save tens of billions from the cost of decommissioning legacy nuclear activities, and lower energy costs for consumers, industry, and public services.

This bold action will make nuclear energy more affordable, quicker to deploy, and will uphold high safety standards while boosting sector growth and investment. The strengthened regulatory framework will build a more agile, innovative, and collaborative environment, positioning the UK as a global leader.

The framework sets out a pathway for private sector participation in the delivery of advanced nuclear projects, specifically small modular reactors, advanced modular reactors and micro-reactors. It defines the principles, processes, and support mechanisms.

Key elements of the framework include:

The UK advanced nuclear pipeline and a project readiness assessment process to endorse viable projects and unlock private investment.



A suite of enabling measures across finance, planning, regulation, fuel supply, and skills including potential support through the National Wealth Fund, planning reforms, and targeted protections for high-impact, low-probability risks.

Projects that meet the relevant criteria will progress through the assessment process and join the pipeline, receiving early Government endorsement to boost investor confidence and helping developers unlock private capital.

The publication of this framework marks a significant step in delivering a secure, low-carbon energy future and supporting innovation and investment in this critical sector.

Alongside the “Advanced Nuclear Framework”, this Government have also published the “Statement on civil nuclear fuel use”. This statement outlines the Government’s expectation around fuel use in the UK, making sure we enable the highest standards of nuclear security, support industry planning, prevent delays, and foster a secure, sustainable nuclear sector that helps operators align with a consistent nuclear fuel policy environment.

[HCWS1302]

Capacity Market Units: Consultation on Location Changes

Michael Shanks Excerpts

Thursday 29th January 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

I am tabling this statement to inform members of the publication of a consultation response relating to the capacity market titled “Government response to consultation on proposal regarding locational changes of capacity market units”. It sets out the Government’s intention to amend the rules that allows for notification of a change of address in the CM to prevent new build capacity market units and DSR CMUs from changing address between prequalification and delivery. This change will apply to all future CM agreements starting from prequalification 2026.

The Government recognise that the ability to change components is necessary for DSR CMUs. It is worth noting that only five change of address requests have been made by DSR units under the rule being changed through this consultation, and the rules will still have options for DSR CMUs to change component addresses after these changes have been made. Unproven DSR can notify component addresses ahead of the delivery year through rule 8.3.3a and proven DSR can reallocate components within the delivery year under rule 8.3.4.

Since its introduction in 2014, the CM has secured reliable capacity for when there is greater demand for electricity in Great Britain. This capacity is acquired through competitive annual auctions held four years and one year ahead of their respective delivery years. The Government regularly amend the framework underpinning the capacity market before auction cycles to ensure it is fit for purpose, cost-effective and meets broader strategic objectives such as clean power by 2030.

The Government intend to introduce these changes for the 2027 auctions coming into force for prequalification in summer of 2026. This will give participants clarity and certainty ahead of their entrance into prequalification and allow them to adapt to the changes the Government have made.

[HCWS1288]

East Park Energy: North Bedfordshire

Michael Shanks Excerpts

Tuesday 27th January 2026 Commons Chamber

[The Minister for Energy (Michael Shanks)]

I congratulate the hon. Member for North Bedfordshire (Richard Fuller) on securing the debate. Although I disagree with some of what he said, the tone of his remarks is welcome. I will respond to some of his points, but given the time I will not be able to respond to them all.

On a general point, I appreciate that many issues, and planning issues in particular, are contentious. As Members of Parliament, we all know that as such issues are raised regularly. Although we might take decisions as a Government that people will disagree with, I hope that I have always given the impression that I am always keen to hear the points that the hon. Gentleman raises, and that other hon. Members raise, and I want to continue those conversations.

Helpfully, the hon. Gentleman said at the outset that I will not be able to comment on the specific application that he references, and it is worth being clear about why that is: the application will come before my Department for a decision. As the Minister with a policy interest in this area, I personally do not see the papers for such decisions and I am not engaged in that process. My noble friend Lord Whitehead usually makes these decisions, or my right hon. Friend the Secretary of State for Energy Security and Net Zero. It is important that no Minister who has a role in decision making speaks about the specifics, and I know that the hon. Gentleman understands that. However, I can talk in more general terms about how we ensure that solar projects, which are really important, are rolled out sensibly and sensitively, which is at the heart of many of the hon. Gentleman’s remarks.

To start, I will take us back slightly to the bigger picture about why solar power is so important in the first place, and why it is at the heart of the clean energy mission. We know that far too often energy bills are still being set by the cost of gas, and that deploying renewables faster than we have before is a way that we can reduce our dependence on volatile fossil fuels, protecting bill payers now and in the future. That deployment also provides an economic opportunity to create thousands of jobs in communities across the country. In addition, the Government cares deeply about tackling the most existential crisis that the planet faces. I will return to this point, but the effects of climate change, which we see all too often, cannot be put off until tomorrow. It is hugely important that we tackle them now, so this mission is critical.

Solar is at the heart of the mission—and critical to it—because it is one of the cheapest renewable energy sources that we can deploy, and it can be deployed at scale. The aim of our clean power mission is to achieve at least 45 GW to 47 GW of solar by 2030. We are at around 22 GW today, so if we are going to deliver that goal, we need to rapidly deploy a combination of ground-mounted solar and a roof-top revolution, which I will return to. At the same time, we have a commitment to doing that sensitively for the communities that host that infrastructure, and to ensuring that those communities gain a benefit from hosting it on behalf of the country.

I will pick just some of the hon. Gentleman’s substantive arguments. The way in which we balance the need for this infrastructure across the country—the fact that it has to be somewhere—with the adverse impacts, as well as the potential benefits, that communities face from hosting the infrastructure, is exactly what our rigorous planning system is about. The views and interests of local communities are key to that. I know that the hon. Gentleman has engaged in the process in this specific case—he has already made representations, and will obviously encourage his constituents to do the same. That feedback is hugely important; people should feel that it has a serious role in the decision-making process, because it does, and therefore it is worth participating in that process. Making those submissions and turning up to those meetings really does matter.

Obviously, the planning process itself considers many of the issues that the hon. Gentleman has raised, including visual amenity, protected landscapes, land use, food production, safety, and traffic conditions during construction. The system for nationally significant projects requires that considerable community engagement be undertaken before a decision is made. The level and quality of engagement is considered during the decision-making process, and these projects are marked down if that is not taken seriously.

The hon. Gentleman has raised the issue of cumulative impact, which is a really important one for us to wrestle with. I do not pretend that we have a single answer to this, but the idea that we should plan holistically—I think the hon. Member for Mid Bedfordshire (Blake Stephenson) made this point—to make sure communities do not face multiple projects, with all the cumulative impact that comes from that, is something we want to tackle. We are doing that in two ways.

[Richard Fuller]

The Minister is talking about cumulative impacts from projects. Just so that it can be on the record, the point I was trying to make is that one consideration is the cumulative impacts from solar farms; the other is that there are a lot of other types of infrastructure construction going on. Could the Minister be clear that cumulative impact includes consideration of both?

[Michael Shanks]

I will come to that point in just a moment. Part of the wider work we are seeking to do across Government is to plan where infrastructure is built holistically and strategically. For example, the land-use work that the Department for Environment, Food and Rural Affairs is doing is about looking at the whole United Kingdom and making sure we have a plan in place for future land use, so that all of those things are taken into consideration.

The legal requirement for a cumulative effects assessment is set out in environmental regulations. The Government have published advice that summarises the process for undertaking that assessment in relation to NSIPs, and the hon. Gentleman’s wider point about the cumulative impact of housing, Universal Studios or transport is also really important. Obviously, my Department has a particular interest in how we plan the energy system, but we are seeking to work much more broadly right across Government. The land use consultation that DEFRA launched closed in April 2025, and the outputs from that and the regional workshops that have been undertaken are now being analysed. That is the first time we have had a national, holistic plan to bring all these things together.

From an energy perspective, which is what I am responsible for, the second point is about the strategic spatial energy plan. For the first time in our history, we will strategically plan the energy system that we need and make conscious decisions about where we site energy infrastructure, so that we are not needlessly building the grid infrastructure that goes with it—so that we are building it next to where we need it the most, reducing the impact on communities and taking into account the cumulative impact of those projects. We should have been doing that a long time ago. I do not blame any particular Government for this, but we have rolled out a huge number of renewables projects across the country without doing any of that strategic planning. That has been a huge failure in the past, and as a result, we are now spending huge amounts of money on building the grid to connect that infrastructure. We have to do that. It is a shame that we did not plan it more strategically in the first place, but we start from where we start, unfortunately.

I am conscious of the time, so I will quickly refer to the point about land use and the use of farmland for solar projects. That point is raised regularly, and it is an important one to raise—food security is also our national security, and it is hugely important. Planning policy makes clear that, wherever possible, developers should utilise brownfield, industrial, contaminated or previously developed land. I understand the point that the hon. Member for North Bedfordshire made about this particular site; I cannot comment on that, but he helpfully quoted me to me. I still agree with me—which is not always the case—but I am not going to set a specific figure, for obvious reasons. There is very much a determination in the process that we should be using lower-quality land wherever possible, but that does not mean that we can always do so. We need to realise that for some projects, that is just not possible. However, if we zoom out just a little bit, even in our most ambitious deployment scenarios, only 0.4% of UK land would be devoted to solar in 2030.

There are a number of other points that I do not have time to address, but I will write to the hon. Gentleman with some responses on them. In the context of what we are seeking to do, I am not complacent about the impact that these projects have on communities—I genuinely understand it. I read all of my correspondence from people who write to me about these points, and he is right to raise these issues. We are seeking to build the infrastructure that the country needs in a way that takes into account the local impact. Communities may feel that has not been done, and for that I apologise, but we are seeking to build a strategic system that deals with many of these issues into the future, so that communities feel that energy is not done to them, but is part of their community and is something that they welcome. At the same time, that helps us to deliver our missions as a Government.

Solar power in this country remains hugely popular and, despite a number of issues, the planning process is rigorous. There is not an automatic yes coming out of the planning system; we look carefully at every single one of these applications. They get a huge amount of consideration, and it is important that communities feel that, and that they know that these applications are taken seriously. If they do not feel that, we have to do more as a Government to ensure that people have confidence in the system. As we deliver this clean power mission, solar will play an important role. We want to bring communities with us, and I commit to doing more to make sure that is the case.

Question put and agreed to.

Fuel Supply: Fees for Military Drivers

Michael Shanks Excerpts

Tuesday 20th January 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

The Secretary of State will be using powers under the Energy Act 2013 to increase the hourly rate for use of military fuel tanker drivers paid by hauliers during a deployment of this capability. This programme is a long-standing fuel supply contingency measure jointly managed by my Department and the Ministry of Defence to make trained military drivers available to support fuel deliveries in an emergency.

This is a routine increase to keep the cost in line with inflationary increases since 2021, and in line with agreements signed with industry.

A direction under section 148(3)(b) of the Energy Act 2013 was made to increase the hourly price from £28.51 to £34.44. This will take effect on 20 January 2026. I believe this direction is fair and proportionate as it will now take account of inflationary price increases from 2021 calculated using the consumer prices inflation index and has been agreed with industry. The Secretary of State reserves the right to make further changes to the charging regime if that becomes necessary.

[HCWS1259]

Low Carbon Hydrogen Standard

Michael Shanks Excerpts

Monday 19th January 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

I am making this statement to fulfil the commitment to inform Parliament via a written ministerial statement whenever the ambulatory reference to the UK low carbon hydrogen standard in the Hydrogen Production Revenue Support (Directions, Eligibility and Counterparty) Regulations 2023 is updated. A new version of the standard (version 4) has now been published.

The Energy Act 2023 makes provision for the implementation of the hydrogen production business model, which is intended to provide revenue support to overcome the cost gap between low carbon hydrogen and higher carbon counterfactual fuels. The HPBM is designed to incentivise the production and use of low carbon hydrogen, supporting the UK’s net zero and energy security ambitions.

Section 57(1) sets out the overarching power for the Secretary of State to make regulations in relation to revenue support contracts. There are a number of provisions in chapter 1, part 2 of the Act which set out the matters that regulations made under section 57(1) may cover. The provision in section 66(5) of the Act enables revenue support regulations determining the meaning of “eligible” in relation to a low carbon hydrogen producer to make ambulatory reference to published documents, including standards, external to the regulations, i.e. as the documents have effect from time to time. Given the nascency of the hydrogen industry and the need for regulations underpinning the hydrogen production revenue support contracts to provide sufficient certainty to investors, the ability to make ambulatory reference in regulations provides flexibility to help ensure the scheme is in line with the latest technological developments to encourage ongoing innovation and investment. This approach also aligns with consultation feedback to ensure alignment with the UK Government definition of low carbon hydrogen when allocating support to projects under the hydrogen production business model.

The regulations were laid in draft in Parliament on 8 November 2023 and came into force on 20 December 2023. Bar certain exceptions for low carbon hydrogen producers who applied for financial support before the commencement date of the regulations, the regulations determine whether a low carbon hydrogen producer is “eligible” in relation to proposals it makes for the production of hydrogen produced in accordance with the low carbon hydrogen standard. The regulations define “the low carbon hydrogen standard” as the document published by the Secretary of State in April 2023 entitled “UK Low Carbon Hydrogen Standard —Version 2” or such standard as may be from time to time published for the purposes of these regulations by the Secretary of State. The regulations provide that where the Secretary of State publishes a new or revised low carbon hydrogen standard for the purposes of the regulations, the publication of the new or revised standard must include, or be accompanied by, a statement in writing that it is published to replace the previous version of the standard.

The standard sets a maximum threshold for the amount of greenhouse gas emissions allowed in the production process for hydrogen to be considered “low carbon hydrogen”. It sets out the methodology for calculating the emissions associated with hydrogen production using production pathways in scope of the standard, and the steps producers should take to prove that the hydrogen they produce is compliant with the standard.

On Monday 19 January, version 4 of the standard was published and focuses on ensuring that the requirements set out in the standard are clear and can be effectively applied under hydrogen production revenue support contracts. This update reflects lessons learned from the application of the LCHS to the first hydrogen allocation round, stakeholder feedback and evolving policy priorities to ensure that it remains fit for purpose and keeps pace with the growing hydrogen economy.

Version 4 of the standard replaces any previous versions of the standard for the purposes of the regulations. This means that currently version 4 of the standard is the one that is to be used for assessing eligibility under the regulations, bar certain exceptions as mentioned above.

[HCWS1252]

Contracts for Difference Allocation Round 7: Offshore Wind Projects

Michael Shanks Excerpts

Wednesday 14th January 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

The seventh contracts for difference auction results have been published today, unlocking a record 8.4 GW of offshore wind projects. We have taken a significant step forward in our mission, showing that clean power by 2030 is achievable and on track. Despite well-known global pressures facing the industry, we have delivered enough capacity to power the equivalent of over 12 million homes. This is a major result and means we can take back control of our energy, meet the growing demand of electricity and get bills down for good for working people.

For fixed-bottom offshore wind, this represents the single largest auction in European history. These projects will be built right across Great Britain, supporting skilled jobs and investment in coastal and industrial communities. The clearing price for offshore wind in this round was on average 90.91 per MWh, far below the auction’s price cap and significantly cheaper than the 147 per MWh cost of building and operating new gas plants.

This proves that clean, home-grown power is the most affordable and secure choice for the country.

These results include Berwick Bank, which is the first new Scottish project to be procured through the CfD in three years, and Awel y Môr, the first Welsh project to win a contract in more than a decade. This will provide a boost to the Scottish and Welsh economies, underlining this Government’s commitment to see all parts of the UK benefit from clean power.

These results also represent major progress in our efforts to lead the world in the emerging technologies of the future, securing 192.5 MW of floating offshore wind capacity. Winning projects include Erebus in the Celtic sea, and Pentland in Scotland, backed by pioneering investment from Great British Energy and the National Wealth Fund. This success builds on last year’s leasing round 5 auction of 4.5 GW of seabed. These additional projects will boost regional economies and ensure that Britain continues to reap the benefits of clean power.

This auction will unlock around £22 billion in private investment in every corner of the country, supporting at least 7,000 jobs in areas including Scotland, north Wales, Norfolk, and Yorkshire and the Humber—delivering a major boost for the economy.

In a world of increasing instability, this Government are determined to back secure, clean, home-grown power to drive down costs for families, and provide the energy security our country needs.

[HCWS1239]

SSEN Transmission Orkney Link

Michael Shanks Excerpts

Thursday 8th January 2026 Written Statements

[The Minister for Energy (Michael Shanks)]

I wish to inform the House that the Department for Energy Security and Net Zero intends to undertake a contingent liability under the statutory spending authority under section 50 of the United Kingdom Internal Market Act 2020. It is a bespoke, time-limited, capped policy indemnity offered by the UK Government to SSEN Transmission to satisfy the Scottish Environment Protection Agency’s permit requirements for SSENT’s Orkney transmission link project, under the Environmental Authorisations (Scotland) Regulations 2018. Upgrading and expanding the grid is critical to the Government’s clean power mission and growth objectives. The project was granted initial regulatory approval by Ofgem in 2019, and final regulatory approval in 2023, and was awarded a marine licence by the Scottish Government in 2020, which was extended in 2022 and 2024. This indemnity will enable the project to proceed, and avoid potential delays, by satisfying a regulatory requirement, subject to SSENT obtaining the necessary permits, ensuring long-overdue progress in connecting Orkney to the GB transmission grid. This critical grid infrastructure will unlock significant clean power capacity that Orkney possesses—including community renewable projects—and bolster security of supply for the islands, helping support a stronger local economy and delivering a more efficient grid for GB consumers which is fit for the future.

It is normal practice when a Government Department proposes to undertake a contingent liability that is novel, contentious or repercussive to present Parliament with a minute, in line with “Managing Public Money”. In line with this guidance, the liability will not be entered into until 14 parliamentary sitting days have elapsed following the laying of the minute.

The indemnity covers the extremely unlikely scenario where SEPA determines that an intervention is required, by virtue of SSENT’s construction activity resulting in a statistically significant increase in irradiated particles washed up onshore from disturbing irradiated particles on the seabed, and that the required intervention is beyond the scope of the Nuclear Restoration Services’ existing particle monitoring and recovery programme. The indemnity is time-limited for 20 years. Due to the extremely remote probability of this risk materialising, it is highly unlikely that this full cost would crystalise. HM Treasury has approved this proposal.

A departmental minute has today been laid before Parliament setting out full details of this contingent liability. In accordance with “Managing Public Money”, the liability will not be entered into until 14 parliamentary sitting days have elapsed following the laying of the minute. Subject to satisfaction of the relevant conditions precedent, the Orkney indemnity will become live as soon as practicable after 14 parliamentary sitting days have elapsed following the laying of the minute.

[HCWS1227]