Energy Security Strategy

Owen Thompson Excerpts

Tuesday 5th July 2022 Westminster Hall

[Owen Thompson (Midlothian) (SNP)]

I congratulate the hon. Member for Birkenhead (Mick Whitley) on securing this debate. It has been great to hear a range of views.

It is obvious to many that the Westminster style of government is often one that seems to tinker around the edges and prioritise flashy point scoring over a long-term strategy. That is why it is strange to see something that calls itself a strategy, but is really just tinkering around the edges, rolled into multi-year plans. The energy security strategy comes at the right time to address the climate crisis and the cost of living, but fails on both fronts, not least because of the gaping holes in it.

I will first touch on the near total lack of support for tidal energy, which we have heard from other Members.

[Peter Dowd]

The hon. Gentleman reminds me of the point that the hon. Member for Weston-super-Mare (John Penrose) made about cost. The Sihwa tidal scheme in South Korea, the Rance scheme in France, the Annapolis scheme in Canada, the Jiangxia scheme in China and the Kislaya Guba scheme in Russia all want to expand because they recognise that it is a cheap way forward.

[Owen Thompson]

I agree. We do not even need to look that far; we only have to look at hugely innovative tidal projects like Nova Innovation in Leith, which could be game changers with the right support, yet the strategy’s only commitment to any tidal energy is to simply explore it.

The energy sources need a guarantee and ring-fenced money every year. After years of campaigning from Members in my party in particular—I congratulate my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) and my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford)—the Government finally agreed last year to provide £22 million in ring-fenced funding for tidal energy. That is welcome—I make no bones about that—but £22 million simply does not reflect the huge potential of tidal, which can produce more than 15% of the UK’s energy generation capacity, according to a Royal Society report last year. A £71 million pot, which is what the aforementioned Members had been pushing for, could unlock £140 million of private investment, creating around 400 jobs, whereas the £22 million mentioned before would unlock only £20 million and create only 100 jobs.

Whether it is £20 million or £70 million, there is no guarantee that the funding will continue. How do we and, more important, investors know that it is not just a one-off? The reality is that without this funding they will be forced to compete for contracts with long-established companies. It is like trying to force a start-up to compete with Google completely unaided.

Geothermal energy is another area that gets only a passing mention in the strategy. The strategy ignores the huge potential of and appetite for mine water geothermal, which is a way to tap into heat from water in abandoned mineshafts, using the past to power our future. The Coal Authority and local activists are doing great work on this front, but central Government funding is patchy and unco-ordinated. We have heard about the projects in Spain and the Netherlands, which have already taken research from Scotland—Midlothian, in fact, in 2003—and rolled it out into huge-scale geothermal projects.

My constituency of Midlothian, with its huge wealth of geothermal mine water potential, could be an energy powerhouse if the Government got their act together and supported a pilot or a large-scale trial. It is not just my constituency, though; across Scotland, mine water could deliver £333 million of economic growth and about 9,800 jobs, yet the strategy does nothing to unlock that potential. That reinforces the points made about projects that could move faster and be brought online very quickly.

For a far better model, look at Norway. Our Nordic neighbour relies on hydro and heat pumps, while exporting its oil and gas to neighbours. The combination makes it a far more resilient to geopolitical shocks, such as those we are currently suffering from. Scotland could and should follow suit, and would were it not for energy being reserved to this place. We have the skills. The heat pumps used in Drammen were made in Glasgow, for instance.

The UK is underdeveloped when it comes to district heating, relying on individuals to pick up the cost. Of course, that is intentional; it drives individuals into fuel poverty while making huge profits for the suppliers. This is why the strategy’s commitment to £30 million of heat pump investment is money spent in the wrong place. It should be invested in large-scale district heating solutions. Instead, it will end up with consumers forking out once again.

I cannot pass over the scandal that sees Scotland facing the highest grid charges anywhere in Europe. Our grid still works on outdated assumptions that prioritise the construction of plants near large population centres. In the green energy age, it is rural communities that will generate our power—from the coasts of Orkney to the hills of Galloway. It is time that we overturn the current model.

We then come to nuclear. Where do I start? Nuclear build costs have trebled over a decade, while solar and wind costs have more than halved. No wonder Hinkley Point C is now nearly 50% over budget and running five years late. If we are serious about the “security” in “energy security”, we cannot ignore the radioactive elephant in the room. Nuclear waste still needs to be buried for hundreds of years; there is literally no other working solution. It is time for the Government—and Labour—to drop their nuclear obsession and come into line with the Scottish Government, who recognise the contribution that nuclear has made in the past, but oppose new nuclear stations while the current technology renders them slow to build and environmentally unsustainable.

Of course, the strategy works within the parameters of the Government's contracts for difference. When contracts are awarded based on big wallets rather than national interest, it is unsurprising that so many of Scotland's turbine manufacturing yards are struggling to stay in business despite their huge potential.

Energy efficiency has been ignored once again. Technology and methods that increase the efficiency of our energy use will reduce energy demand, which gives us better security should crisis hit. British homes lose heat up to three times faster than European homes. From the sick man of Europe, we are becoming the cold man of Europe, but instead of pushing for new builds to be insulated and energy efficient, we are stuck with retrofitting. Yet again, the mindset is to tinker around the edges. The Scottish Government spend a whopping four times per capita more on energy efficiency measures than the UK Government. Will the Minister commit to following suit?

I do not know whether the Scottish Government’s opinions matter at times, though, given that they were not even consulted prior to the publication of the strategy—something they have been very critical of, given the major role that Scotland plays in meeting the UK’s energy needs. It is clear that Westminster just cannot bring itself to overhaul the outdated status quo, even when a crisis demands it. For as long as Scotland remains part of the UK, we will be held back by its antiquated and unco-ordinated private energy systems. Scotland cannot afford this broken system any longer, so I look forward to next year, when we can have our own say.