Offshore Wind Contracts

Nia Griffith Excerpts

Tuesday 12th September 2023 Commons Chamber

[Graham Stuart]

May I pay tribute to the right hon. Gentleman? I met him in his constituency when I visited the European Marine Energy Centre and saw for myself some of the projects in the water. I am personally determined to ensure that tidal stream continues to grow. We maintain our global leadership, with a very high percentage UK supply chain as a further positive to it. He tempts me to get ahead of myself on policy, but I cannot do that. However, what we are doing and what our dedicated pot this year did is further strengthen that so that we can get in a position where that might be a realistic policy position to take.

[Dame Nia Griffith (Llanelli) (Lab)]

Even with a higher price, offshore wind would help to slash bills. When the Minister saw the Irish Government recognise inflation, up the price and proceed to a successful auction, what discussions did he have with the industry and with Treasury colleagues about the price to be set?

[Graham Stuart]

I thank the hon. Lady for her question, which is a good one. Obviously, we did look at whether intervention, given that prices continue to change after they are set, was the right thing to do. We think that the CfD mechanism—the way that it is operated—is sound and that the best thing to do is to allow that to pass for the year. One reason for having the annual auction was precisely to allow us quickly to adjust, and, as I say, as soon as November, we will be setting the parameters for the next year.