Contracts for Difference
Wera Hobhouse Excerpts(2 months, 2 weeks ago)
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Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
We Liberal Democrats very much welcome the results of this round. It is a significant improvement on last year, when the previous Conservative Government completely failed, with zero bids from the onshore wind developers.
The results show that the CfD programme is back on track. They demonstrate the power of industry and Government working together to identify a fixed problem, so that we can widen the level of private sector investment we bring in, which is required for a clean power system transition.
Britain’s unique geography, with its abundance of natural resources, is an asset. We must harness the wind and the world’s largest tides. It is hugely encouraging that a record-breaking amount of solar capacity has been procured. Whatever the Conservatives are saying now about their record in government, solar targets were repeatedly missed, and this round is a welcome change. Unlike the Conservative Government, who, as has been pointed out, left us at the whim of the global oil and gas market, this Government are making choices that will increase our energy independence and lower energy bills for our consumers.
Future allocation rounds, especially in the next few years, must continue to deliver increasing quantities of renewables. That can be achieved by setting ambitious budgets and bringing forward incremental reforms of the CfD regime. Can the Secretary of State assure me that this round is not just a one-off and that we will increase the pace of the CfD allocation rounds?
Ed Miliband
I thank the hon. Lady for her support and the warm tone that she uses. She is right that we face a big challenge as a country to get moving on the offshore wind Bill, the onshore wind Bill, solar on rooftops and ground-mounted solar. The truth is that CfD auctions have served us well and continue to do so. We inherited this auction halfway through the round, and we increased the budget substantially to make sure that it was a success. But the right thing for us to do—I think this is the main point that she is making—is to talk to industry about how we can make sure that future rounds are a success. I am very interested in how we can have a line of sight for industry, so that it can have the industrial certainty to plan ahead. The annual auction round is serving us well, but we need to work with industry to make sure that we land the clean power that we need and get the jobs here too.
Making Britain a Clean Energy Superpower
Wera Hobhouse Excerpts(3 months, 4 weeks ago)
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Wera Hobhouse (Bath) (LD)
It is a genuine pleasure to see you in your new role, Madam Deputy Speaker. I also welcome the new Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Rutherglen (Michael Shanks), to his place. I look forward to a much more constructive way of working compared with what happened under previous Energy Ministers.
The race to net zero is the major economic opportunity of this century. The green economy must sit at the heart of economic growth, and the Government have work to do to rewrite the damaging narrative of the previous Conservative Government that this is about green versus growth, and to remedy their unforgivable failures that delayed, blocked and even reversed urgent action on climate change. Now is the time to move forward.
The global market for net zero technology is estimated to be $650 billion a year by 2030. We must use Britain’s unique geography and abundant natural resources—wind power and the world’s second largest tides—to consolidate our position as a green economic powerhouse. Community benefits, community buy-in and individual economic incentives are critical to making this a reality.
Bath and West Community Energy in my constituency is putting people at the heart of the energy transition and placing the ownership and control of energy in local hands. It raised £11 million from nearly 1,000 members and bondholders, and it has donated £300,000 back to the community for local food production, recycling projects and fuel poverty programmes, yet community energy was not mentioned in the Labour manifesto.
Imagine a future in which people can purchase clean energy directly from a local supply company or co-operative, and in which every pound spent on powering our homes or cars is recycled back into the local community, supporting jobs, funding new facilities and services and contributing to renewable energy infrastructure. That is what community energy is about: ensuring that people everywhere support and benefit from the clean energy transition.
The biggest barrier, especially for smaller projects, is the cost of access to the grid. There are regulatory challenges too, but surely the creation of Great British Energy should include the opportunity to realise the enormous potential of community energy. It is often local council and grassroots projects that show the greatest ambition to get to net zero. Until now, local authorities have been hampered by a lack of resources and a lack of co-ordination between central and local government. Even within central Government the co-ordination of net zero strategies has often been fragmented. We Liberal Democrats therefore call for a net zero delivery authority, both to devolve decision-making powers and resources to local government, and to co-ordinate all net zero strategies and decision making across central Government Departments.
The last energy crisis, which saw household bills in the UK spiral out of control, was exacerbated by the UK’s reliance on fossil fuels. Ironically, the previous Government did very little to accelerate the deployment of renewables. Onshore wind was de facto banned and the targets for the roll-out of solar were regularly missed. Only by fast expanding renewable energy—not just offshore wind—and prioritising a radical home insulation programme can we ensure that families will never again be severely out of pocket.
To fully realise the potential of renewables, the Government must address our outdated national grid. Nearly 100 GW of electricity from offshore wind projects is currently awaiting grid connections. I hear that that is now to be accelerated. That would have been sufficient to power 150 million homes. Some developers have been waiting for up to 13 years.
There is no shortage of capital or will to invest, but delays and rising costs have deterred investors, who see projects in other markets such as mainland Europe as a safer return on investment—I know that the Government are all over this, but I am setting out what the failures of previous Governments were. Significant new infrastructure is required to connect renewable energy from where it is generated to homes and businesses across the country, but the Government must pay close attention to the communities hosting the required infrastructure. I know that is a challenge, but I support the Government in understanding that significant infrastructure cannot be delayed, because we really need to get to net zero.
Mr Holden
I totally agree about the need for new infrastructure. Germany is now pursuing an “underground first” approach to new energy transmission infrastructure, rather than overground pylons. Does the hon. Lady agree with me and other Opposition Members that the UK Government should adopt that approach?
Wera Hobhouse
Indeed. We have had a Westminster Hall debate on that very subject, and I absolutely agree. Saving private companies money is no reason not to do something that is better for communities. Half the time it is all about what is affordable, so I agree that there is a very fine balance to be struck, but where other solutions exist than having big pylons that ruin the landscape, National Grid should look at them.
Sir Mark Hendrick (Preston) (Lab/Co-op)
The hon. Member claimed that Labour’s manifesto did not mention community energy. In fact, a statement from Community Energy England says:
“Labour’s Local Power Plan would turbocharge community energy and local climate action”.
It is an integral part of the Labour party manifesto.
Wera Hobhouse
I am only mentioning how important community energy is to Liberal Democrats. The Labour manifesto did not seem to have as much emphasis on it, but if we agree on it, hurrah! We all win.
Barry Gardiner
The hon. Lady is being generous in giving way. On the issue of undergrounding power lines, although that may in some cases be necessary for communities, does she not accept, given that it is 10 times the cost, that it is possible to screen the power lines and, in doing so, create biodiversity corridors that can connect biodiversity from one part of the country to another, so that biodiversity can cope with climate change?
Wera Hobhouse
Indeed, there are not easy answers to all these questions. We need to look at the fine balance of cost versus getting community buy-in. There is going to be a transformation of our landscape, and we need to be aware of that. We must also make a good case for why it is urgent that we get to net zero, and in my view that balance in the argument was not struck properly by the previous Government. It is important that communities buy into our big landscape transformation, but it is also important that we do this at an affordable cost for the whole of the UK.
We Liberal Democrats are calling for all new homes to be net zero immediately. It is crazy that we are building homes today that will need upgrading in a few years’ time. We are proposing a 10-year emergency upgrade programme for homes, starting with free insulation and heat pumps for those on low incomes. That will not happen without incentivising private landlords and having tougher energy efficiency targets. The private rental sector has the most energy-inefficient homes. Nearly half of households living in these properties are in fuel poverty, but local authorities have taken limited action to enforce minimum energy efficiency standards.
Whether it is tighter regulation on private landlords or further sanctions to ensure that they comply, the Government must put their mind to the private rental sector. We will ensure that energy efficiency for rentals is not brushed under the carpet. That includes incentives for the private rental sector. From discussions in the previous Parliament, I know that the Labour party is relatively reluctant to give money to private landlords, but without incentivising the private rental sector, I do not think that a home insulation programme will happen, particularly for low-income families. I urge the Government to think about that.
As well as landlords, businesses must be incentivised to invest in the green transition. The U-turning of the Conservative Government sparked immense distrust from industry, with the UK chair of Ford warning that her business needs three things from the Government: ambition, commitment and consistency. That is exactly what they must deliver. Years of stop-start investment have left the energy sector reeling. Businesses and trade organisations have long been calling for a detailed plan of action that offers the clarity and certainty that will make the UK an attractive country to invest in. I hope that this Government can finally deliver the certainty that the country so badly needs.
Climate change is happening, but every cloud has a silver lining. Seizing the economic opportunities of net zero will help us spread wealth and opportunity to every corner of the UK. From insulating homes to providing thousands of new jobs in the energy sector, it is clear that everyone can benefit from a thriving green economy. I look forward to working constructively with the new Government to combat climate change, reduce energy bills and be a leader in the journey to net zero.
Madam Deputy Speaker (Judith Cummins)
Due to the large number of maiden speeches, and the fact that I want to get everybody in, I am now imposing a six-minute time limit—with the exception of maiden speeches. I call Jess Asato.
Joy Morrissey (Beaconsfield) (Con)
I welcome you to the Chair, Madam Deputy Speaker, and congratulate Members from across the House on their wonderful maiden speeches. I had 20 minutes of praise for them, highlighting every aspect of their wonderful speeches, but unfortunately time is limited, so I shall have to give a quick analysis of praise for them all. I am secretly delighted that I do not have to try out my Scottish Gaelic—[Interruption.] I know, it is sad but true; that might be for the next debate.
It was wonderful and heart-warming to hear from hon. Members across the House, from East Thanet to every part of Scotland, including the highlands and Glasgow South West, and from South Northamptonshire, and with all Members caring about their local communities and representing all the people who matter and who elected them. That is what matters in this place. I feel that now I am an expert in all things Scotland—never have I been so afraid to talk about and name everything than when I had to do a Burns night toast. I hope that someday I can visit all those wonderful constituencies. It made me realise that Scotland is a very inclusive, diverse and wonderful place, and I would like to sample the whisky and the hospitality from Loch Lomond to the highlands. I praise all hon. Members here today. I am someone whose contributions often make people think, “Gosh, that’s an unusual Beaconsfield accent”, so I am always delighted to hear sparkling speeches from voices less grating than my own—it is nails on a chalkboard, and you adjust over time—celebrating the diversity in the Chamber.
During today’s debate we heard some superb maiden speeches from Labour Members, and so many of them! Even I was confused about who are the new Labour MPs—that is how many of them there are, so congratulations. I welcome the Minister to his position. He will definitely be going far, and my claim to fame will be that I got to debate with him first here in the House. He is also a Scottish MP, and I welcome him and congratulate him on his ministerial position.
I am also pleased to be shadowing a department led by a fellow London School of Economics alumnus, but disappointed that the Secretary of State is not here to respond to or open the debate. I know in what high regard he is held by the Labour movement. His high ideals and socialist principles are in the very best intellectual traditions of his party, but he is now in government, and I fear that the changes he wants to bring about will make working people poorer and put our energy and food security in the hands of Russia and China.
In just three weeks, as my hon. Friends the Members for Mid Buckinghamshire (Greg Smith) and for Gordon and Buchan (Harriet Cross) and my right hon. Friend the Member for Basildon and Billericay (Mr Holden) pointed out, the Secretary of State has ignored local communities; he has ignored planning professionals; he has ignored sound decision making; and he has ignored basic economics. He seems to be in a race to deliver higher bills and higher taxes for working people, and a poorer, less safe Britain.
Joy Morrissey
I will give way in a moment, but I must make a little progress first, because I have only five minutes if I am to allow time for the Minister.
We on the Conservative Benches will keep calling these plans out for what they are: a dangerous experiment that will damage the British countryside, wreck the livelihoods of hard-working British people and drive up energy bills. Let us examine the progress of this experiment so far. During the election campaign, the Secretary of State got Labour candidates to claim that GB Energy would save £300 on energy bills, but that does not seem to be something that the Government are going to stand behind now. I would ask why that is, and what plans there are for the future in this regard.
The Government have formed an energy company that will not generate a single watt of energy, and will not bring down a single energy bill. They have taken £8 billion of taxpayers’ money, and put a shiny brand on it called GB Energy. GB Energy is simply the Government subsidising high-risk projects for the private sector on one hand, while decimating our oil and gas industry with the other. They have set up a new company and claim that it will make profits in five years, with nothing but 14 pages of a hot-air founding statement—with no business plan, no financial forecast, and nothing else.
Wera Hobhouse
Is the shadow Minister not aware it is exactly that negative narrative from her party that has held us back on the path to net zero?
Joy Morrissey
I know that the hon. Member is a strong advocate for her local community, and that is an important cross-party awareness; but we are in this position now, and I say to the Government, “You won, and we are here to hold you to account on your new endeavours. We wish you all the best, but it is our job to hold you to account.”
If GB Energy were a private company, no investor would touch it with a bargepole, yet the Government get to play with the money of hard-working British taxpayers while simultaneously hitting them with higher taxes and higher bills in return for that privilege. The Secretary of State doubtless thinks that he is courageously saving the planet, but he is not quite courageous enough to go to Aberdeen, or to be here today, or to speak to those in the North sea who will lose their jobs.
This is now serious. It is serious because the Government are writing cheques that the British people cannot afford and Ministers will never have to pay; it is serious because they are betraying the trust of local communities; it serious because they are putting at risk our energy and food security at a time when both have never been more vital; and it is serious because those who will suffer for their net zero purity are working people. These are not plans for a clean energy superpower. They are plans for a weaker, poorer Britain.
Clean Energy Superpower Mission
Wera Hobhouse Excerpts(4 months ago)
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Mr Speaker
Order. May I just gently say that these exchanges must finish at 1 pm? I hope we can help each other along the way, but first I call the Liberal Democrat spokesperson.
Wera Hobhouse (Bath) (LD)
I welcome the new Secretary of State to his place. I share his passion for climate action. Let me add, however, that next time he makes a statement we will need our copies in better time than was the case today.
There is no doubt that the best route to affordable energy is renewables, but under the former Government renewable projects faced long delays and costs have skyrocketed. Indeed, that Government’s record on renewables was absolutely miserable. Our electricity demand is expected to double by 2050, and we must make upgrading our grid infrastructure a major priority. The Government will know that one of the biggest challenges will be to bring communities behind hosting the big infrastructure changes needed for the grid expansion, and to cope with the huge landscape transformation. How will they secure public consent?
As the Secretary of State said, to achieve our legally binding targets we also need a “rooftop solar revolution”, which will include introducing stronger incentives for households to install solar panels and ensuring a fair price for energy that they sell back to the grid. Will the Government work on those incentives with the Liberal Democrats?
We Liberal Democrats acknowledge the new approach taken by this new Government, and I look forward to working constructively with the Secretary of State to achieve our very ambitious targets.
Edward Miliband
May I welcome you to the Chair, Madam Deputy Speaker?
I welcome the hon. Lady’s questions; we worked together on these issues when we were in opposition. Let me deal with her two substantive points. On the question of public consent, this is absolutely something that we need to do, and I see it in three ways. First, communities need a say. Secondly, communities need benefit. Communities are providing a service to the country when they host clean energy infrastructure, so there needs to be benefit for those communities. Thirdly, this is a debate that we will have to have, and I am afraid the last Government did not grasp the nettle on this issue.
We are going through a massive change in our economy. If we do not build the grid or roll out solar, we will be poorer as a country and we will absolutely expose ourselves to future cost of living crises. I look forward to receiving as much support as possible from the Liberal Democrats, and indeed from all Members of this House, in making the case to people. We have to go out and make the case, as I think happened in the 1950s when we will built the grid. If we do not make the case, we will leave ourselves exposed as a country, and it is the British people who will pay the price. I completely concur with the hon. Lady on rooftop solar.