Energy Resilience

Tom Collins Excerpts

Tuesday 6th May 2025 Westminster Hall

[Tom Collins (Worcester) (Lab)]

I beg to move,

That this House has considered energy resilience.

It is a pleasure to serve under your chairship, Mr Efford. I submitted this motion before the power failures at Heathrow and the Iberian peninsula, before the latest run of cyber-attacks, and before international conditions led us to increase our spending on defence. A more volatile and uncertain future is changing the question that we expect our energy system to answer but, as an engineer who spent years working on low-carbon energy technology, I know that the question changed before that.

The question changed when offshore wind became our cheapest source of electricity and when the payback period for photovoltaics dropped below just a handful of years. The question changed when the world woke up to renewables and we, an island nation with exceptional wind resource, favourable geology and a skilled energy sector, realised that we could become a clean energy superpower.

The prize is lower bills, increased security and the re-industrialisation of our economy, with all the jobs, innovation, trade and growth that come with it. To win that prize, our electricity system will need to double in capacity, accommodate dispersed, wild and unpredictable generation, and support varying demands that will become more mission-critical for our economy and everyday lives.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing the debate forward. Whether we like it or not, we must be aware of and consider these important matters. The Climate Change Act (Northern Ireland) 2022 established that the Department for the Economy must ensure that at least 80% of electricity consumption is from renewable sources by 2030. Unless we can harness reliable tidal energy, we are dependent on conditions that cannot be predicted. That must be considered.

[Tom Collins]

Yes, diverse energy sources will be critical for future system resilience.

The Minister has clearly shown that the operational constraints for a robust electricity grid are known and in hand. The challenges of a future electricity system go far beyond those we face today. Three quarters of a century ago, when our energy systems were built in the shadow of world wars, resilience was front and centre, but the guiding star was efficiency, ensuring that energy taken from the ground was transferred with minimal loss. The defining challenge of tomorrow is to take energy that appears in places and at times determined by the weather, and deliver it in places and at times determined by the people who depend on it.

[Liam Conlon (Beckenham and Penge) (Lab)]

I was delighted that Bethlem Royal hospital in my constituency recently secured a £725,000 grant from the Government to install solar panels. Does my hon. Friend agree that when used in partnership with back-up generators for essential services, on-site renewable energy generation will protect organisations from rising costs and provide greater energy resilience for their non-essential services?

--- Later in debate ---

[Tom Collins]

I agree that with the correct technology, those systems can provide local resilience.

The fundamental change to the core role of the energy system has been from efficiency to storage. How we achieve that future system is already well debated. We start with energy efficiency and insulation, then we move on to shifting the time of demands, and we can enhance that with intraday storage in some buildings. The way we actively control and manage the response to demands and our storage is the big question for the future electricity system.

Currently, moment-by-moment control is achieved technically using the A/C power itself as a signal. Control over longer time bases is co-ordinated and partially directed through markets. In the future, we expect markets to play a bigger part in our electricity system, working in shorter timeframes and in a more distributed way. When we think about resilience, the design of our economic and commercial energy system and the digital systems that enact it will be absolutely critical. The commercial energy system will be as critical as the physical one.

Whereas markets may be good for some resilience attributes such as flexibility and diversity, they are often bad for others, such as redundancy, continuity and headroom. Also, our new digital communications channels offer potential single points of failure for our system. This is a fundamental question of national security. In the light of a string of cyber-attacks, it is crucial that when our digital world fails, our heating, lights, sanitation and vehicles must not. Either our grid must not depend on signals such as dynamic pricing to keep working, or those signals must be multiple-fault tolerant. With distributed generators playing a larger role in future, avoiding cascade failures requires them to support graceful degradation instead of disconnecting in the face of uncertainty.

This dynamic, digitally enabled future can introduce other risks, not only for resilience but for social equity. It must not penalise those who cannot afford battery storage, and each internal system boundary and each new pricing location threatens overall value. Alongside markets, our systems must incorporate core features that function primarily in the public interest. The system must be resilient against market-induced price instability and commercial failures, both for our security and for those markets to function healthily.

That all misses the single largest and most novel component of our future energy system: clean, long-duration energy storage at scale—storage, not just for seconds through inertia, not just for minutes through demand-side response, and not just for a day or night through in-building storage, but intraweek and longer to ride through long stagnant weather events or other major disruptions. Today, our energy resilience is assured by the incredible flexibility and capacity of fuels: oil in transport and off-grid heat, and methane gas for heat in buildings and industry. Those fuels intrinsically store energy indefinitely and carry vast amounts of energy through simple infrastructure, such as pipes and tanks. Our gas system currently carries three times as much energy each year, and up to four times as much in a day as our total electricity system. It shares its energy storage capability with the electricity system through gas power stations, our core electricity resilience assets. We have found our dependency on gas to be a weakness, but only because we depend on it for our system’s strength.

So, we face a crux. How might we win the energy resilience prize, benefiting from the clean versatility of electricity and the stabilising, security-critical storage capability of fuel? There is one answer that the UK has itself pioneered. There is a fuel that is carbon-free and 100% interoperable with electricity, and capable of being manufactured from electricity and cleanly converted back into it again at will: hydrogen. The Government, and others, have spotted the unique potential of hydrogen to fuel a clean and secure future for British industry. I would argue that they could go further, enabling industrial renewal in and around national clusters, but also in our towns and suburbs. As we seek to secure a material supply chain, the UK could deploy our immense wind resource and become a circular economy material recovery superpower of Europe.

Over recent years, however, the debate has become paralysed by an either/or question. Electrification and hydrogen have been presented in some sectors as mutually exclusive. Hydrogen has been presented as scarce and expensive. Policy has been asking whether the answer in various sectors is electrification or hydrogen, but the design answer is resounding and simple: it is both. These two energy vectors are complementary, with hydrogen power stations able to provide our grid with headroom, responsive generation and inertia, and hydrogen storage able to provide our national asset of inter-day and inter-week energy storage. Our future electricity system needs hydrogen, and at a vast scale. The truth of the matter is that hydrogen will be as cheap and abundant as we design it to be.

[Lloyd Hatton (South Dorset) (Lab)]

I thank my hon. Friend for securing this important debate. The Dorset clean energy super cluster, in my constituency, has proposals for fixed and floating offshore wind, carbon capture and storage, and hydrogen storage. Does my hon. Friend agree that having all that energy generation and storage in one place is a really effective way to boost Britain’s energy resilience, and to quickly boost our energy infrastructure and our ability to create, store and distribute energy here in Britain, rather than being dependent on energy coming in from overseas?

[Tom Collins]

I thoroughly agree with my hon. Friend. I am so glad that Members have identified how critical it is that we have a diversity of energy sources, that we have energy storage, that these are distributed around our system, and that we invest ambitiously now to bring them into reality.

Our energy system has always been multi-vector, and it must be in the future, too. By embracing this reality, we have an opportunity to design and choose how our electricity and gas systems are coupled: upstream through underground gas storage and power stations; mid-system with smaller distributed generators, including fuel cells; downstream in areas on constrained legs of the network; or perhaps even in homes through smart hybrid heating systems. We can deploy hydrogen production wherever it is most helpful: offshore, onshore, or at critical nodes in the transmission system. Pipe infrastructure is relatively low cost, high capacity and, being underground, intrinsically secure.

The size of our supply of green hydrogen is our choice. If we choose constrained supply, we choose constrained growth. If we choose ambition and abundance, that will also be worked out in our economy. It is time to move on from old ways of thinking. There is virtually no risk of stranded assets; investment in both electrical capacity and hydrogen production is zero regret. The call to action for both sectors is simple: go big. That is, and must remain, the message of the Government.

Now is the time to convert this ambition into concrete goals in the technical domain. Industry’s voice is clear: there is an urgent need for decision making. We must deliver our ambition not by iterative cycles of consultation, but rapidly through partnership. We need to short-circuit policy silos, get all the stakeholders in a room and thrash it out. We must be open to answers that back multiple technologies. Our problem is not that we need a silver bullet, but that we had one that was literally too good to be true. Moving on from fossil dependency means diversification.

Historically, we have always relied on multiple energy vectors in homes to provide energy resilience. That is still an option now. It means moving away from questions of either/or to answers of both/and. Those decisions are not easy, but they can be made. The end point is not crystal clear, but it is sufficiently in focus. Our industrial community has the knowledge and evidence we need, and the risks from here can be managed.

This is a moment for leadership and, fortunately, this Government have the will and the opportunity to deliver it. As corporate players scramble to shape this debate to create future opportunities, investors are seeking a clear statement of ambition and for the Government to get hands on, set goals and pick winners. Recognising that there will be more than one winner in a diverse and resilient future, we can show ambition now for electrification and a powerful UK hydrogen economy.

In the end, a resilient energy system is about putting people first and making power, warmth and movement dependable, affordable and accessible to all. Seventy-five years ago, the UK built energy systems with world-leading reliability and resilience. Now it is time to do it again, and to secure a new era of economic renewal, growth and security. With ordinary people as our guiding star, through ambition, pragmatism and practical collaboration, we can deliver an energy that, for the next 75 years, through night and day, come rain or shine, dependably keeps every single person in our fantastic nation empowered.

Warm Home Discount

Tom Collins Excerpts

Tuesday 25th February 2025 Commons Chamber

[Miatta Fahnbulleh]

I direct the hon. Member to the clean power plan, and the analysis done on the way to deliver energy security. We are clear that this is the quickest and best route by which to do that. In the end, one thing guides what we do: the need to get lower bills for the long term. We believe that this is the way to do it. The rest of the system agrees with us, from the regulator through to NESO. Our job is to crack on and deliver that.

[Tom Collins (Worcester) (Lab)]

I welcome the Minister’s statement, which has practical steps to support people with their bills, and a long-term plan, delivered at speed, to transition to a resilient, sustainable, clean energy system that takes advantage of the incredible advances in renewables in recent years. Offshore wind is providing really low-cost power, underpinned by UK-led innovation in technologies such as hydrogen. The Minister has laid out ambitious plans for supporting households in upgrading their homes, and has made excellent early progress on those upgrades. Will she continue working in partnership with UK innovators and manufacturers to make it not just possible but easy for homeowners to keep their homes warm with dependable, clean and affordable energy?

[Miatta Fahnbulleh]

My hon. Friend is completely right. We are committed to working with industry on upgrading our homes. We believe that that is the way to drive down bills, but we need to make this as easy as possible for consumers across the country. We are working with industry and across the piece to deliver at pace.

Energy Infrastructure: Chinese Companies

Tom Collins Excerpts

Wednesday 12th February 2025 Commons Chamber

[Kerry McCarthy]

In that case, I will say that it is important that any investment is place-based, and we need to look at developing the capability, such as the skills and the capacity of the local authorities—that is where community energy comes in. We also need to ensure that the finance goes where the investment is needed. If I have not understood the hon. Member’s question, I would be happy to take it up with her afterwards.

[Tom Collins (Worcester) (Lab)]

I welcome the Minister’s engagement on this topic. To have meaningful and serious discussions with other major economies is vital for our success. Does the Minister agree that those discussions are key to not only securing our economic aims, but tackling the climate and nature crisis and achieving our wider international objectives?

[Kerry McCarthy]

Yes, that international co-operation is absolutely crucial. It means talking to countries with which we share a great deal in common and which are signed up to the same objectives, but it also means talking to other countries to bring them with us. That is why we are hosting the International Energy Agency summit in London in April, why we have set up the global clean power alliance, and why the Prime Minister went to the COP climate change talks in Baku last autumn and showed international leadership, which was very much lacking from UK Governments of previous years.

Biomass Generation

Tom Collins Excerpts

Monday 10th February 2025 Commons Chamber

[Michael Shanks]

We do not have a mechanism to claw back past profits from any company—that is not something that Governments are able to do. What we can do is move forward with a fair system that reduces the subsidy considerably, and has excess profit mechanisms and a windfall tax in place to ensure that if the company generates additional profits, we can claw that back for the British public, which is important. The level that we have agreed in the deal brings the subsidy down to a considerably lower level—half what it was under the previous Government.

[Tom Collins (Worcester) (Lab)]

I welcome the revision of Drax’s role in our energy system, reducing biomass and ensuring that where it is used it displaces gas, not excess wind and solar. However, we also need to find new low-carbon forms of dispatchable power, backed up by long-term energy storage at scale. Hydrogen is a strong candidate for that. By moving fast, the UK can reduce costs and regain our early-mover advantage. Will the Minister work with industry at pace to ensure the opportunities around hydrogen are known, explored and exploited?

[Michael Shanks]

My hon. Friend is right that one of the really important outcomes of the new deal is that instead of cheaper wind and solar power being displaced by Drax when it operated with baseload capacity, Drax will only operate when we need it on the system. That means that the cheaper, cleaner power sources that we are building in abundance, of which we want to see much more in the years ahead, can generate and deliver cheaper power for the people of this country. On my hon. Friend’s wider point, it is important that we explore the role that hydrogen can play in the system. We are looking at a number of different technologies at the moment. Just last week, I met some investors looking at the future of the gas system to take forward some of those questions, and I am happy to discuss that further with my hon. Friend in the future.

Draft Clean Heat Market Mechanism Regulations 2024

Tom Collins Excerpts

Monday 13th January 2025 General Committees

[Tom Collins (Worcester) (Lab)]

It is a pleasure to serve under your chairship, Mr Vickers. I am quite frankly staggered by the criticism from the Opposition. I remind Conservative Members that they had a policy of exactly the same architecture in recent years, with targets set at a level that produced a textbook example of unintended consequences. I will not accept any attempt from them to rewrite history on the matter.

I welcome the ambition in the draft regulations and in our mission for dependable, affordable and clean energy. In particular, I welcome the fresh approach from this Government of partnership with industry, understanding markets and putting people first. As the representative of a constituency that is home to one of our large domestic heating technology manufacturers, which produces boilers, heat pumps and other technologies for heating, I welcome the renewed targets that come with these regulations alongside and as a result of the Government’s fresh, constructive approach. I welcome that approach, because there is much more to be done in the transition for heating.

This is just one point in that journey. I would like to see us exploring an approach to air source heat pumps, alongside other technologies, and I am confident that we are now in the best possible place to navigate the way forward. I therefore thank the Minister for the approach that she has demonstrated with industry and with the market, and I ask whether she is prepared to continue in the same spirit of partnership, openness and innovation that she has begun.