Great British Energy Bill (First sitting)

Debate between Uma Kumaran and Catherine Fookes

Committee stage
Tuesday 8th October 2024 Public Bill Committees

[Catherine Fookes]

Q Welcome to the participants. My question follows on beautifully from Shaun’s comments around community. How do we think that GB Energy can accelerate and drive investment in the development of community enterprise and community energy?

Shaun Spiers: One thing that is necessary to say is that this is a major part of the transition and a priority of the Government. That was the case for periods during the coalition, when there was a really vibrant community energy movement and a sense in which people were coming around to supporting renewable energy—which otherwise they would have opposed—because they could see they had a financial stake in it but had also been engaged in developing it. What snuffed that out had more to do with planning issues than with investment, but there are ways in which GB Energy can pump-prime some of the investment.

I am trying to think back to the community energy manifesto we put together in 2018. I cannot think of any specific things, but I can write to the Committee, if that is helpful. There are specific financial incentives that would help get this off the ground. To be honest, though, communities across the country were really keen on community energy. It was a vibrant movement and could be again, with the right political framework as much as investment.

[Uma Kumaran]

Q Thank you, panel. We have been hearing a lot today about the mission to make the UK a clean energy superpower, moving away from fossil fuels. I want to touch on something that Shaun, Marc and Ravi have all mentioned, about leadership, ambition and innovation. In your view, does the Bill give investors increased confidence to invest in the UK in the energy sector?

Ravi Gurumurthy: You have to think about this as a whole package. If you have absolute clarity and conviction around the 2030 decarbonisation target and the pathway beyond that, and if you translate that intent into a strategic plan—with clarity about the technologies and their location through the NESO—and if you then have an enabling, activating agency like GB Energy clearing away some of the barriers, then the combination of that overall ambition, that plan and GB Energy does I think hugely accelerate investments into the sector. But you have got to do all three.

Marc Hedin: I think that is right. I think there are two key components here. One is identifying gaps in the market, where Great British Energy can provide a lot of value and can reinforce confidence from investors, and thinking hard about where it makes sense for Great British Energy to invest. We have mentioned points like local power plans, innovative technologies. I think there is a range of areas in which it makes a lot of sense for the state to co-invest through Great British Energy to develop those industries. The last point is around supply chain, to really support the whole energy transition.

Shaun Spiers: I agree with that. This is a part of a bigger picture. We keep coming back to the scope of the Bill. The Bill, in its objects, talks about

“measures for ensuring the security of supply of energy”

One area that really has not been given sufficient attention is critical raw materials, where we import 100% and then we export 100% for recycling elsewhere. There are 37 lithium recycling factories in the EU but none in the UK. This is the sort of industry that Great British Energy could help pump-prime, if that is seen as within its scope.