Electricity Grid Upgrades

Tom Hayes Excerpts

Tuesday 26th November 2024 Westminster Hall

[Sir Bernard Jenkin]

I accept that the present Government have inherited a planning system and a philosophy of upgrading the national grid that is out of date.

When we were in Government, we were very slow to recognise that such a big, strategic upgrade needed a proper strategy. We started moving towards holistic network design. We commissioned a report from Charles Banner KC to look at streamlining the planning process—I will come on to putting that streamlining in place—and I very much welcome that the Government have commissioned a spatial review of the entire network, which should have been done years ago. I think we were blind to the failings of the structure inherited from the Electricity Act 1989; we should have moved much sooner.

That report should make it easier for the Government to change the out-of-date policy of a presumption in favour of pylons, which we said in our manifesto that we would review. I am very happy for the Minister to blame the previous Government for the difficulties he is facing and to change the policy accordingly, but it will be very odd if he comes to the Dispatch Box to defend what the previous Government were doing, after what the hon. Member for Camborne and Redruth (Perran Moon) just said—but I suspect that that is what he will do.

I put this issue forward in a bipartisan manner. We should all be able to agree that the great grid upgrade is not going fast enough, and that we need to streamline the planning process and speed up delivery. However, we also need to mend our ideas about how we deliver it, because as I have said, undergrounding high voltage direct current cables is not only technically viable, but the most sensible and sustainable solution for the future of our entire energy network.

[Tom Hayes (Bournemouth East) (Lab)]

I would like to return to the hon. Member’s point about international comparisons and other countries nearby perhaps having a presumption in favour of overgrounding. I draw the House’s attention to the fact that Germany’s Opposition recently said that using overhead lines instead of digging underground could save the country €35 billion, and that the German political parties that previously, as part of Angela Merkel’s coalition, backed underground cables have now called for overhead lines to be given priority. Does the hon. Member agree that the picture is not quite so clearcut in mainland Europe?

[Sir Bernard Jenkin]

What is interesting about Germany is that its presumption was in favour of undergrounding, so the idea that that is a great big experiment and we do not know what it means is incorrect. There is plenty of expertise in Europe. When we look at cost comparisons between undergrounding and pylons, it also depends on the territory we are dealing with.

Our problem is lack of community consent, as Fintan Slye, the executive director of the National Energy System Operator, rightly says. It is a question of swings and roundabouts, but in the case of Norwich to Tilbury, the consequence of delays from trying to run roughshod over the very widespread and well-funded public opposition will be to put up the cost, which makes the cost of undergrounding advantageous over pylons. That is my point.

I am not necessarily disagreeing with the principle of what the hon. Member for Bournemouth East (Tom Hayes) says, but undergrounding DC cables has great advantages. The latest estimated cost of just one year’s delay for Norwich to Tilbury is four times more than the additional £1 billion cost of undergrounding HVDC— I hope the hon. Gentleman was listening to that: £4 billion a year for delay against £1 billion extra for DC undergrounding. I think that puts this into the field of a no-brainer. Why would we spend all that money fighting through the courts for a very unpopular scheme when we could save time and legal expense by going for a different method?

In the National Energy System Operator’s East Anglia network study, which was published earlier this year, undergrounding HVDC was set out as alternative option 8. The great advantage of undergrounding HVDC is that there will be far less public resistance. Moreover, as I have said, the planning procedures could be streamlined— as recommended to the Government recently by Charles Banner—to conform to the regime for installing new major water pipes. If we had the same planning regime for underground cables as we did for water pipes, we could speed up the process for undergrounding cables.

Underground HVDC offers a scalable, future-proof solution that can be delivered with far less environmental impact, with public support and much more quickly. Schemes without pylons that are already planned by National Grid—for example, in north-east England—are being delivered without public opposition or long delays, which seems to be an enormous advantage for the Government’s objective of decarbonising the grid. There is no comparable resistance from campaign groups, which is clear evidence that underground HVDC gets public support, making it a far more practical and feasible solution.

--- Later in debate ---

[Andrew Bowie]

The hon. Gentleman knows well, I hope, that my commitment to our entire United Kingdom of Great Britain and Northern Ireland is just as firm as his, and when I speak about the UK, I reference Strangford and Northern Ireland more widely. The situation in Northern Ireland is unique in that the number of homes that are off-grid far outweighs the number of off-grid homes in mainland GB. That brings its own complexities with regard to decarbonisation, moving away from gas or oil, and boilers for heating and other such purposes. I completely understand the unique complexities of decarbonising in a Northern Irish environment, and he is absolutely right that when the Government take decisions on UK-wide infrastructure projects, they should be cognisant of Northern Ireland’s unique situation, being in an all-Ireland grid and having so many off-grid properties. That should never be far from our minds.

I thank the hon. Member for East Thanet (Ms Billington), my hon. Friend the Member for Central Suffolk and North Ipswich (Patrick Spencer), the hon. Member for Cramlington and Killingworth (Emma Foody), my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes), as ever, and the hon. Members for Ipswich (Jack Abbott) and for Waveney Valley (Adrian Ramsay) for their contributions. I did not agree with all of them, but they were all very thought through. I know that everybody in this room, whatever their perspective on how we achieve a cleaner future, agrees that upgrading the grid is important. How we go about that is the issue concerning us today.

My hon. Friend the Member for Harwich and North Essex eloquently highlighted the strength of feeling among communities across the country being asked to take on the burden of what is being proposed. I mentioned that we shared notes, and that is because my constituency, like that of my hon. Friend, faces the threat of huge energy infrastructure bills over the next few years. Communities fear the genuine threat of industrialisation sweeping rural landscapes and the impact on communities as a result.

In my West Aberdeenshire and Kincardine constituency, the energy industry is omnipresent. It is home to the subsea capital of Europe and on the edge of the oil and gas capital of Europe. Many of my constituents work, or have worked, in the energy industry. Many are involved in the design, construction or installation of underground or offshore pipelines for oil, gas or electric cables. If someone digs deep enough in my constituency, they will find national gas pipelines buried underground. The only indication of them being there are the little yellow marker signs on the surface warning people to beware and not to dig anywhere close.

I say that because I stress that my constituents and so many others around the country who are raising this issue are not doing so because they are being needlessly obstructive. They are not doing it because they are being anti-net zero, or because they do not agree the grid needs to be upgraded. They just know, due to their experience working in the industry, that there are other ways forward. It is for this reason, and the overwhelming desire on the Conservative side of the House to exhaust all the options in our pursuit to find the best technology at the best cost that would deliver our decarbonised grid—and not, as the National Energy System Operator report suggested, that we favour pace over perfection—and to do so in a way that does not blight so many communities and our great British countryside, that we committed in our manifesto to take a different approach.

[Tom Hayes]

We have heard in this debate about the importance of expediency. Does he agree that, uniquely, we live in a world in turmoil? We see growing international threats, and one of the surest ways in which Britain can protect ourselves against them is by being energy independent. As a consequence, we need not just to move quickly to meet our climate crisis—our energy defences are down, and it is important that we can protect ourselves in the future.

[Andrew Bowie]

I could not agree more. Indeed, I long for a day when we are much more energy independent. That is why I take such issue with Labour’s position on the North sea and the wilful destruction of our oil and gas industry, leaving us open to further outside influence and reliant on hostile states. That is one of the reasons why I think that we need to increase our energy security, and why I agree with the hon. Gentleman that we need to improve it.

This is not about whether we do that; it is about how we go about it and about taking decisions now in the best long-term interests of people and of the energy security of this country. I do not believe that the way that the Government are proceeding at the minute is in the best long-term interests of the communities of this country. If we get this right, work together, get to a solution where communities feel they have a stake in the energy transition, deliver the clean future and become energy independent, as I used to say when I was the Minister, that is a win, win, win—but we are a long way from that just yet.

I mentioned community benefits briefly. In June 2023, I visited East Anglia to begin the consultation process on the community benefits package. On 7 December 2023, the then Chancellor of the Exchequer outlined the framework of that package. I wonder whether the Minister present might be able to give us an update as to where the process is and where the Government have reached on community benefits—