The Secretary of State for Energy Security and Net Zero (Ed
Miliband) I congratulate you on your new role, Madam Deputy
Speaker. With permission, I would like to make a statement about
the sixth contracts for difference allocation round. It is less
than two months since the Government came into office with a
mandate to fix the foundations and make Britain a clean energy
superpower. The last Government left this country exposed to
international fossil fuel markets. As...Request free trial
The Secretary of State for Energy Security and Net Zero ()
I congratulate you on your new role, Madam Deputy Speaker.
With permission, I would like to make a statement about the sixth
contracts for difference allocation round.
It is less than two months since the Government came into office
with a mandate to fix the foundations and make Britain a clean
energy superpower. The last Government left this country exposed
to international fossil fuel markets. As a result, every
household and business paid the price in the worst cost of living
and energy bills crisis in memory; because of Britain's
particular exposure, families and businesses in our country were
hit harder than others.
The only way to provide this country with the energy security
that the British people deserve is through home-grown clean
energy that we control. That is the mandate on which this
Government were elected, and that is what we will deliver.
Last year's contracts for difference auction, under the previous
Government, was a fiasco. No offshore wind projects were awarded,
which was a disaster for the industry and for our efforts to move
away from dependence on fossil fuels. In July, when we came into
office, I made the decision to expand the budget for this year's
auction by 50% to maximise the amount of home-grown clean power
we could secure while delivering value for the British people,
and today the results are in.
I can announce to the House that we have secured a
record-breaking 131 new clean energy projects: more projects for
our country as a whole than any previous auction; more projects
in England, more projects in Scotland and more projects in Wales
than any previous auction; over two and a half times the capacity
secured in last year's auction; nearly 10 GW of clean, home-grown
power, enough to power the equivalent of 11 million homes; the
most successful renewables auction in British history; and a
major step forward in our mission to make Britain a clean energy
superpower and to help Britain get off the rollercoaster of
volatile global gas markets.
Let me set out the results in detail. First, solar is one of the
cheapest and most readily deployable energy sources at our
disposal. We have secured a record 93 solar photovoltaic
projects, the largest number of solar projects ever in an
auction, unlocking 3.3 GW of new solar, which is a 20% increase
on our installed capacity.
Secondly, we have secured almost 1 GW of onshore wind. However, I
must report to the House that, thanks to the Conservatives' near
total ban on onshore wind, there was just one small onshore wind
project in England of 8 MW. Their nine-year ban destroyed the
pipeline of projects. That is why this Government lifted the
onshore wind ban in England as one of their first acts. Our
onshore wind taskforce will now go about the process of working
with industry to rebuild the pipeline of projects.
Thirdly, this auction was a success for the emerging technologies
that will serve our country in the future. Floating offshore wind
offers a huge opportunity in every part of Britain. The last
auction secured no floating offshore wind. On coming to office, I
was presented with a budget that risked repeating the mistakes of
the past, so I took the decision to more than double the budget
that covers this cutting-edge technology. I can report to the
House that today's auction has secured a 400 MW floating offshore
wind project, more than 10 times bigger than the previous biggest
floating offshore wind farm in Britain.
(Boston and Skegness)
(Reform)
At double the price.
At a lower price. This floating offshore wind farm alone is
double the size of all of Europe's installed floating offshore
wind capacity. In addition, on tidal, where Britain has huge
leadership opportunities, we have secured six new tidal stream
projects at the lowest ever price.
Fourthly, on fixed offshore wind, in contrast to the zero GW
secured in last year's round, we have secured 4.9 GW of offshore
wind, enough to power the equivalent of 8 million homes. That
includes securing both the largest and second largest offshore
wind projects in Europe—Hornsea 3 and Hornsea 4 off the Yorkshire
coast. An industry flat on its back because of the mistakes of
the last Government is back on its feet thanks to this
Government.
I can also report to the House that across the whole auction all
these results were secured at prices well below the maximum price
limit—prices that demonstrate that wind and solar are the
cheapest sources of power to build and operate in our country.
For the House's benefit, that means a clearing price for offshore
wind that is five to seven times lower than electricity prices
driven by gas at the peak of the energy crisis.
The success of this round does not just offer greater energy
security for the British people; it also offers the possibility
of good jobs throughout Britain. But that will not happen without
action by Government, because we know that too often in the past
renewable energy produced in Britain has not created enough good
jobs in Britain. With Great British Energy and our national
wealth fund, we will invest to make sure our clean power mission
produces jobs in every corner of the United Kingdom.
This Government have been in office for less than two months. In
that time, we have lifted the onshore wind ban, consented more
nationally significant solar capacity in one week than the last
Government did in 14 years, and now delivered the most successful
renewables auction in the history of the country. And on Thursday
we will debate the Second Reading of the Great British Energy
Bill. This is a Government in a hurry to deliver our mission:
energy security, lower bills, good jobs and tackling the climate
crisis. I commend this statement to the House.
Madam Deputy Speaker ()
I call the shadow Minister.
1.53pm
(Wyre Forest) (Con)
I am grateful to the Secretary of State for the timely advance
sight of his statement. I would like to put on record that
Members on the Opposition Benches welcome the success of the
contracts for difference allocation round 6. The Secretary of
State is right to be proud of that achievement by the Government.
It is to be celebrated that we, as a country, are creating an
extra 131 clean energy projects that include 5 GW of offshore
wind farms and 3 MW of floating wind.
The Secretary of State will be grateful to the previous
Government for setting up the details of auction round 6 last
November. The previous Secretary of State recognised the problems
of AR5 and the price set for offshore wind—a price that was set
before a round of inflation that made the CFD strike price cap
too low for the producers. By the way, this was not just a UK
problem; it affected other projects for offshore wind around the
world. Increasing the strike price by around 60% to the current
AR6 price of £73 has been crucial to securing the current
success. Of course, in addition, the previous Government had many
other successes. In 2010, just 7% of our energy needs were
supplied by renewables. Today it is nearly 50%. This has come
from many initiatives, not least bringing in the contracts for
difference auctions in 2014 and making the auction process an
annual event—an initiative that was learnt from AR5 problems.
It would not be fair to ignore the contribution by the new
Secretary of State. As he said, he has increased the pot for this
year's auction by 50%. While that is welcome—frankly, who would
not welcome more renewable energy—that does not tackle our energy
issues. At the same time as increasing renewable energy
production, the Government are decreasing UK gas production. The
UK needs reliability of supply of energy, but we all know we
cannot predict with any certainty when the wind will blow and the
sun will shine. That is why we need baseload, dispatchable energy
that can supply the energy needs of our homes and economy.
We recognise the importance of investing in renewables to deliver
clean energy, and the 9.6 GW announced today is a brilliant step
in the right direction, but given these successes, and his
self-declared success today, why does the Secretary of State plan
to saddle the country with billions in debt to fund Great British
Energy? In previous months, he may have answered that question by
saying that the purpose of GB Energy was to cut energy bills by
£300. However, we note that his promise to cut energy bills seems
to have gone missing, much like the winter fuel payments of 10
million pensioners.
Despite the Secretary of State's pledge, and that of many hon.
Members on the Government Benches, he will be aware that energy
bills are in fact going up. Can he confirm when bills will fall,
and by how much? Pensioners are not the only ones being impacted
by this Government's ideological energy targets. As I have
already mentioned, the Secretary of State banned new oil and gas,
which will cost 200,000 oil and gas workers their jobs. Research
conducted by the industry predicts that that move will see tax
revenues from that industry fall by £13 billion by 2030.
The Opposition welcome the Secretary of State's ambition to make
sure that the jobs created by the transition are located in
Britain, but, at this stage, the majority of jobs in the solar
and wind sectors are located in China. What steps is he, as the
current Secretary of State, taking to ensure all the jobs created
through AR6 are located in Britain? He has already made a bit of
a habit of riding roughshod over the concerns of local
communities, approving developments without regard to the
concerns of local communities. These decisions will see some of
Britain's green belt and best agricultural land developed. Will
the Secretary of State confirm what share of today's investment
will take place on the green belt? What protections is he putting
in to protect the green belt?
The Secretary of State has spoken at length about the need to
overcome challenges facing the grid. In Government, we delivered
a 500% increase in the amount of renewable energy connected to
the grid, but we recognised that so much more needed to be done.
What steps is the Secretary of State taking to support this
further increase? Has he investigated undergrounding? What plans
does he have to protect the countryside from more pylons?
I note that the Secretary of State today recommitted to
decarbonising the grid by 2030. We have previously warned him of
the risks of being over-ambitious, which include leaving families
facing the cost. It is not only the Opposition who have warned
him of that—Chris Stark, his newly appointed head of mission
control, once described the 2030 target as “over-ambitious”. Will
the Secretary of State please share exactly what his head of
mission control believed to be over-ambitious about a 2030
decarbonisation target? His head of mission control also warned
that it was entirely fair that people are concerned about the
cost of decarbonising by 2030. Will the Secretary of State
confirm that neither taxpayers nor bill payers will be left with
the cost of the 2030 target? Will he tell the House when we will
see a proper, comprehensive estimate for the full systems costs
of his decarbonisation plans for 2030?
In conclusion, the Opposition welcome the fact that the Secretary
of State has built on our successes in boosting renewable energy.
However, we hold serious concerns about what this round will mean
for Britain's green spaces and whether, given the increased cost
of AR6, his commitment remains to cut bills by £300.
I congratulate the hon. Gentleman on his elevation since the
election. I look forward to our exchanges in this House. I say
him to gently that the crucial first phase of Opposition, in my
experience, is having a bit of humility to admit where they have
got things wrong. I do not deny that some of the things that the
previous Government did were right, but quite a lot of what they
did was wrong—for example, the nine-year ban on the cheapest,
cleanest form of power, the blocking of solar projects across the
country and the crashing of the offshore wind market, which led
to the worst energy bills crisis in generations. That is their
legacy, and at some point some of the leadership candidates will
have to face up to that.
Let me deal with the hon. Member's specific points. If I may say
so respectfully, I feel like he answered some of his own
questions. He draws attention to the fact that energy bills are
rising from 1 October. He is right about that, and that is deeply
regrettable. Why is that happening? Because we are exposed to
international gas markets. This is about power that we do not
control. Every solar panel that we do not put up, every onshore
wind turbine that we do not erect, and every piece of grid that
we do not build leaves us more exposed. The Conservative party is
in a dilemma on this, because it is facing both ways, but it has
to face up to that fact. Of course we will have a proper and
orderly transition in the North sea, keeping existing fields open
for their lifetime and having a just transition for the
workforce, but the idea that the Conservative party and some of
its erstwhile friends are clinging to—that fossil fuels will get
us out of this—is completely belied by all the facts and the
crisis that we went through.
The shadow Minister says—and I agree with him—that we need to
have jobs in this country. He says it as if he finds it hard to
remember who has been in power for the past 14 years. It is
terrible, he says, that everything is being produced elsewhere.
He is right. Germany has almost twice as many renewable energy
jobs per capita as the UK. Sweden has almost three times as many,
but, most interestingly, Denmark, with its publicly owned energy
company, Ørsted, has almost four times as many.
The hon. Gentleman asks about Great British Energy. We will
debate that matter on Thursday, but one reason why we went to the
electorate on this point and were endorsed on it is that, unless
we have a publicly owned national champion, all the evidence is
that the jobs will go elsewhere. That is part of having a basic
industrial policy.
The hon. Member talks about solar energy, but, again, he has to
make up his mind about where he is on this. He says that he
agrees that we need clean energy in this country, and that we
have to get off the international gas markets, but the problem is
that the Conservatives duck every difficult decision. Then he
asks about undergrounding. The Conservatives were in power for 14
years, so they had plenty of time to do the undergrounding of all
the cabling. Why did they not do that? It is because they know
that it is multiple times more expensive. Now they come along,
less than two months after the general election, and say that it
is time for some undergrounding of the grid. For goodness' sake!
I have experience of being Leader of the Opposition. Perhaps it
is time for the Conservatives to have some private tutorials on
how to be in opposition.
Mr (Chesterfield) (Lab)
It is great to see my right hon. Friend in such ebullient
spirits. I have to say that his enthusiasm can only be matched by
that of the industry, which today has roundly welcomed the
decision that he took back in July to increase the size of this
auction. That demonstrates that, if we have a Government who are
consistent, positive and ambitious, the industry will respond and
will back their plans. Can my right hon. Friend assure the House
that the great start that he has made will be continued with a
consistent plan under this Government, so that businesses can
invest for the long term, knowing that the Government will always
back them?
My hon. Friend makes a typically eloquent point. This is about a
partnership with private industry. The truth is that much of the
investment that we need for the clean power mission will come
from the private sector, and I suspect that there is cross-party
agreement on that. We on the Government Benches have a difference
with the Opposition, though, because we believe that a lot of
that comes from breaking down the barriers to planning and grid
infrastructure, which is a massive challenge for supply chains
and skills. There is also a role for what we call catalytic
public investment, levering in extra private investment.
The other point that my hon. Friend makes is absolutely right.
There is huge enthusiasm in the private sector and industry more
generally for this sense of mission for the country. We want this
mission to involve every business that has an interest in this
area, and I believe that we can achieve that.
Madam Deputy Speaker ()
I call the Liberal Democrat spokesperson.
(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?
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.
(Great Grimsby and
Cleethorpes) (Lab)
The Secretary of State is right to point out that the previous
Government presided over the failed fifth auction round for the
offshore wind sector. It was devastating. I congratulate him on
achieving success for this important industry, but part of the
measure of that success will be the wider industrial benefits,
including good jobs. What action will he take to make sure that
coastal communities such as mine see those jobs, as well as
training and manufacturing?
My hon. Friend speaks with great experience—from both inside and
outside this House—and I welcome her expertise on these issues.
She is absolutely right that we have to face up to the fact that
we are in a global race for these jobs. Investors are trying to
decide whether to locate their blade factories and other
investments in the UK or elsewhere. That is why we went into the
election with a range of measures, including Great British
Energy, the national wealth fund and the British jobs bonus. All
are designed to achieve the re-industrialisation that my hon.
Friend is talking about.
Dr (South West Wiltshire)
(Con)
What consideration has the Secretary of State given to proposals
for an interconnector from north Africa to the UK, bringing
reliable solar and wind power at times when the wind is not
blowing here and the sun is not shining?
I shall address this question at a more general level, for
reasons the right hon. Gentleman might understand. I think we
should be looking at all proposals that can maximise energy
security. He is talking about the Xlinks proposal. I am obviously
aware of that proposal, and know that we need to look at it in
the broadest way. My view has always been that we need every
source of power available, which is why I embrace nuclear,
onshore wind, offshore wind, solar, tidal, carbon capture and
storage—[Interruption.] And absolutely, as the right hon.
Gentleman says from a sedentary position, oil and gas also have a
crucial role in the transition.
(Sefton Central) (Lab)
My right hon. Friend is correct that clean energy is by far the
cheapest way to power the UK, as confirmed by industry bodies
today in welcoming his announcement, but there will be intense
international competition for investment. How does he foresee
ensuring that we have the competitive advantage in attracting
that investment for years to come?
Again, my hon. Friend speaks with great expertise. Part of it is
about is having a Government who are committed to a proper
industrial strategy and have the levers to make that strategy
happen. There was an interesting divide between the Opposition,
when they were in government, and us. Although, of course,
America is a different-sized country from us, we see the
Inflation Reduction Act as offering real lessons to us about how
we can lever in private investment. We will not be able to do it
on the scale of that Act, but these interventions can make a
difference. There is also this crucial point: we care where the
manufacturing happens, and we are determined to make sure that it
happens in the UK.
(Boston and Skegness)
(Reform)
Will the Secretary of State, who is obsessed with renewable
energy, actually be honest with the British people? The truth is
that the offshore wind turbine bids today are some 20% above
current prices. The floating offshore wind bids are some three
times the current prices. His Department says that this requires
subsidies of some £1.5 billion a year. That is before the extra
transmission costs, before constraint payments, before
compensation payments for blighting my constituents' countryside,
and before the cost of back-up when the wind does not blow and
the sun does not shine. Why will he not be honest and tell the
truth: that renewable energy is more expensive, not cheaper?
I am interested by the hon. Gentleman's intervention, because his
manifesto is basically higher bills and to make people poorer. We
do not need to look into the crystal ball; we just need to look
at the record. The truth is that the cost of living crisis—the
energy bills crisis—casts a long shadow in this country. It was
caused not by a dependence on renewables but by our exposure to
fossil fuels. He just needs to understand this basic point:
whether fossil fuels are produced in this country or
internationally, they are sold on the international market, and
that is why the British people paid the price and the Government
forked out £94 billion. The only way to get off the rollercoaster
of international gas markets and take back control is to become a
clean energy superpower.
(East Kilbride and Strathaven)
(Lab)
I thank my right hon. Friend for his statement. This allocation
round is testament to the continued success of the contracts for
difference scheme. As we are now on course to produce more
renewable energy than ever and we need to get that power to
consumers, does he agree that we need the same political and
financial commitment to the development of transmission
infrastructure as we do to renewables?
I welcome my hon. Friend's question. We need to be honest about
this: we face what we can only describe as a crisis with our grid
situation, because we have people wanting to connect to cheap,
clean renewables and being offered dates in the 2030s—often late
in the 2030s. We have industrial investments that we need to
happen, for which dates in the 2030s are offered. Grid reform
and, as part of that, planning reform is absolutely crucial for
this Government and for any Government who are serious about
this. I am afraid to say that the legacy of the last Government
is disastrous when it comes to the grid. We will build the grid,
and I look forward to support from all parts of the House from
those who want to tackle fuel poverty and want lower energy
bills.
(Angus and Perthshire Glens)
(SNP)
Fair play to the new Secretary of State: 5.3 GW of offshore wind
is a great achievement, especially compared with the flat zero
achieved by the Tories in auction round 5. It unlocks the vital
Inch Cape array off my Angus constituency coast, and supports
jobs in Montrose, as well as in Moray West, and there is also the
game-changing Green Volt floating array off the north-east coast
of Scotland. He highlights 1 GW of onshore wind, 8 MW of which is
coming from England. Will he tell the House where the rest of
that onshore energy is coming from? His target is 60 GW by 2030.
How will he achieve that 9 GW a year from now until 2030?
I welcome the first part of the hon. Gentleman's question, and
even the second part. The only way this will work is if, whatever
our differences—and we have large differences—we work on this
task with every Government across the United Kingdom, whatever
kind of Government that is. , the Cabinet Secretary in
Scotland, and I have had many conversations —probably more in a
couple of months than were had in many years under the previous
Government. That deliberate example of “country first, party
second” has been set by the Prime Minister. We want to work with
Governments across the UK to get the renewables revolution that
we need if we are to make Britain a clean energy superpower.
(Vauxhall and Camberwell
Green) (Lab/Co-op)
It is a pleasure to welcome my right hon. Friend to his place,
and to see him continuing to champion this really important
change, which our constituents up and down the country have been
crying out for. One of the key issues we find when we go into
people's homes is fuel poverty; it is real. Constituents talk
about not being able to heat their home—that is the reality for
many of my Vauxhall and Camberwell Green constituents—so they
will welcome this announcement, which will mean cheaper bills and
cleaner energy. Does he agree that we need to get on with this as
quickly as possible? Given that bills are to increase from 1
October, residents want action from this Government at a fast
pace, so that they can see their energy bills come down.
My hon. Friend is 100% right, and she puts it incredibly well. It
is hard for Governments of all stripes to admit this truth, but
when the 1 October price cap was announced, these matters were
not within the previous Government's control, and would not have
been within ours, because of our exposure. These prices are set
internationally. When Putin or the petro-states make decisions,
they rebound on my hon. Friend's constituents, and the only
solution is our clean energy superpower mission. The truth is
that it will take time, and it will be hard for her and my
constituents, and the constituents of those across the House, but
the answer has to be to go as fast as possible, because that is
what gets us energy security and lower bills.
Sir (New Forest East) (Con)
I warmly congratulate the Secretary of State on his appointment;
he is the perfect example of a political renewable. As
politicians, we all have a great deal to contribute to onshore
wind. More seriously, does the Secretary of State share my
concern that The Guardian last year and The Daily Telegraph this
year both drew attention to the Chinese exploitation of Uyghur
slave labour in the manufacture of so many solar panels? Other
countries have been banning their import. How does he propose to
deal with the matter, because I am sure that he shares my concern
that we should not profit on the back of that sort of disgraceful
exploitation?
I thank the right hon. Gentleman for his kind words. He raises an
incredibly serious and important issue. When I came into
Government, I asked for discussions across Government on this.
Controls were in place, to be fair to the last Government, and as
part of the ongoing solar taskforce, these issues were being
looked at, but we need to kick the tyres on this, to make sure
that the proper controls are in place. My Department is very
happy to have discussions with him and other interested parties
on those questions.
(Camborne and Redruth)
(Lab)
I thank my right hon. Friend for his statement, and his tireless
campaigning in favour of unleashing our renewable energy
potential. As he knows, Cornwall is ready, willing and able to
play a full part in the renewable energy transition. Can he
outline his plans to support smaller, co-operative, community
energy projects? When it comes to those, once again, Cornwall
stands ready to act.
My hon. Friend asks a very important question, which gives me a
chance to advertise the Second Reading of the Great British
Energy Bill on Thursday. All are welcome—standing room only! As
part of our plans for Great British Energy, we allocated £3
billion of the £8.3 billion that we set out in the election for
what we call the local power plan to do what other countries such
as Denmark and Germany do as a matter of course: unleash local
renewables, with local communities, councils, community groups
and co-ops being part of that. That is important, because it is a
way to tackle fuel poverty and generate income for local
communities. It is also important as a way of winning consent
from local people. I look forward to my hon. Friend and others
making a contribution on this question in that debate and
others.
Mr (Orkney and Shetland)
(LD)
If, as the Secretary of State says, he wants to offer a line of
sight for industry, he should look more closely at the
opportunities that come from the development of tidal stream,
particularly through the creation of a supply chain from the
ground up; that is always easier than recovering one that has
already gone overseas. But that line of sight has to go in both
directions, which is why developers in tidal stream energy are
asking the Government to set a 1 GW deployment target. Will he
listen to those representations now, and act on them?
When I came into office and examined the issues around pot 2,
which covers tidal, I was very keen to make sure that we
increased the tidal minimum, which we did by 50%. These are
important discussions to continue. There is a dilemma here, as
the right hon. Gentleman will know, which is that tidal remains
relatively expensive, but the point of the tidal developers is
that many technologies remained expensive until they were
deployed at scale. These are hard questions, because they are
about value for money and how much we invest in tidal, but my
Department needs to have those important discussions.
(Sheffield Hallam) (Lab)
I congratulate the Secretary of State and his Department on their
excellent work. Given all that we have heard from the shadow
Minister today, does my right hon. Friend agree that this
Government's record success shows that the main block to the
sprint to renewables was the Conservative party?
My hon. Friend makes an important point about the legacy of the
last Government. To widen her point, I would say to Members
across the House—we need to be candid that this is hard for us as
constituency MPs—that there is a need to connect debates in this
House about fuel poverty and energy bills and the decisions that
are being made in our areas. Candidly, unless we build the grid,
solar and onshore wind, we will never get off the rollercoaster
of international gas markets. All of us face a choice. We need a
public debate about this, because if we are to tackle fuel
poverty and do the things that I described, building is required,
and we need to make that happen.
(North West Norfolk) (Con)
I gently say to the Secretary of State that he promised at the
general election to bring energy bills down by £300. They are now
going up by 10% in October. When will my constituents see the
reductions that those in his party promised—or did they not mean
it?
I think that tonight, the hon. Gentleman will think that that was
not a very smart point to make. Weeks after we came into office,
the price cap went up. I have explained why the price cap went
up—because of our reliance on international gas markets. The
decision that he has to make is this: does he support our mission
to make Britain a clean energy superpower in order to bring bills
down, or does he not?
(Edinburgh North and Leith)
(Lab)
There is one notable absence from the allocation round results
today, which is Berwick Bank wind farm. Located in the North sea,
Berwick Bank has the potential to deliver up to 4.1 GW of clean
electricity, and to lead to further investment in the supply
chain and manufacturing. The port of Leith in my constituency is
a prime location for the project, but we are still waiting to
hear about the consent. Can the Secretary of State confirm that
he will push the Scottish Government to speed up their section 36
consent process, so that Berwick Bank can come forward in the
next allocation round and we can get on with delivering a sprint
to clean energy?
I am glad that my hon. Friend has raised that point. We face
planning decisions and questions at a policy level, if I can put
it that way, right across the United Kingdom, including in
Scotland and in England. We will work with the Scottish
Government and others to make sure that we have a planning system
that is fit for purpose, and that can build the clean energy that
we need.
(Ashfield) (Reform)
This Secretary of State is living in a completely different world
from my constituents, because they are not asking for this on the
doorstep at all. By the way, he is quite happy to spend £11.6
billion on climate aid abroad and £8.5 billion on GB Energy, yet
rob our pensioners of £300 at the same time. But I will give him
the benefit of the doubt. When will my pensioners in Ashfield
receive significant discounts on their fuel bills, and of how
much?
I thought that the hon. Gentleman's party supported a publicly
owned energy company, but I may be wrong about that. I can
absolutely say that this is the way to deliver lower bills for
his constituents. [Hon. Members: “When?”] Members can shout all
they like—I know that this is hard for the hon. Gentleman—but the
reality they must face is this: does he believe that a continuing
reliance on fossil fuels, and this country saying no to
renewables, which I think is their position, will give us energy
security? The truth is it will not. [Interruption.] The hon.
Gentleman says that he agrees with me; well, I look forward to
him supporting our clean energy superpower mission.
(Burnley) (Lab/Co-op)
I welcome this phenomenal, record-breaking achievement from the
Secretary of State, which represents a significant milestone
towards clean power by 2030. Let us see more projects in Burnley.
Does he agree that the best way to protect my constituents'
energy bills from price shocks, and the patriotic thing to do, is
to ensure our nation's energy security through home-grown clean
power? That will lower energy bills and give tyrants like Putin a
bloody nose at the same time.
I agree 100%. The notion that our exposure to fossil fuels as a
country gives us security is belied by what has happened over the
last few years; as the Prime Minister often says, it means that
Putin's boot is on our throat. My hon. Friend talks about this
patriotic mission, and he is completely right. Other parties in
this House have a decision to make on Thursday: will they support
the Great British Energy Bill? We have public ownership of our
energy system in Britain—foreign public ownership, by state-owned
companies from abroad. We welcome that investment, but we also
want British public ownership. I very much hope that other
parties will learn the lessons of their election defeat and
support our Bill on Thursday.
Madam Deputy Speaker ()
To be helpful to Members, I gently point out that it is important
that they be here for the start of a statement if they wish to be
called to ask a question. I will be very kind today. I call
.
(Thornbury and Yate) (LD)
Thank you, Madam Deputy Speaker. I thank the Secretary of State
for his statement. The latest allocation round is good news and
should be welcomed, especially after the fiasco of the last
round. It is vital that Britain invests in our sustainable green
energy production, so that we can guarantee our energy security
and lead the world as a green powerhouse. However, the only way
that we can achieve that is if we also push ahead with energy
storage and ensure that we boost our capacity to retain the
energy that is generated, so what steps is the Department taking
to accelerate the roll-out of new storage solutions, including
green hydrogen?
The hon. Lady, whom I welcome to her place, makes an important
point. We often get questions about what to do in an intermittent
system. We need different forms of both dispatchable power and
energy storage. One project that my Department is working
on—continuing some of the work of the previous Government—is
long-duration energy storage and battery technology. Personally,
I think that the system continues to underestimate the potential
role of battery and long-duration storage, and we will say more
about that in the months ahead.
Ms (East Thanet) (Lab)
The Conservatives continue to oppose our publicly owned clean
power company despite widespread public support for it, including
in my constituency. Does the Secretary of State recognise the
absurdity of the Opposition's arguments? They are quite happy for
public ownership of energy in this country, as long it is by
foreign Governments, not UK citizens.
My hon. Friend, who has great expertise on these issues, makes an
important point. We welcome the success of Ørsted in today's
allocation round for the Hornsea wind farms. It is great for
Danish taxpayers that they will get some benefit from it, and it
is great for Britain that we will get the investment, but as the
Prime Minister often asks, why not Britain as well? Why should we
not invest in clean energy? Why should our taxpayers not benefit
from this? Why should we not create jobs in this country as well
as accelerating clean power? It seems a simple and logical
proposition to me.
(Telford) (Lab)
The Secretary of State will know from his recent visit to Telford
that businesses right across the country, including in my
constituency, want to partner with the Government on this agenda.
Will this statement and future announcements mean that those
private sector businesses, which want to put their skills and
money into this agenda, and take risks on behalf of the
Government and the country to make us a clean energy superpower,
have the Secretary of State's backing?
My hon. Friend is absolutely right. I very much enjoyed my visit
to Telford, where I spoke with local business. It is easy to
think about these things in very macro terms, of how many
gigawatts and so on—the kind of thing I like talking about—but he
is right that this is as much, if not more, about all the jobs
that we can create in the supply chain. People in this country
want hope and change, and this will deliver it.
Mr (York Outer) (Lab)
I welcome the auction increasing solar capacity. There are great
projects in my constituency, funded via that scheme, such as
Hessay solar. Will the Secretary of State visit sunny York to see
the site once it is complete, and does he share my conviction
that solar will be critical in the energy mix if we are to reduce
our dependence on foreign oil and gas?
I very much welcome my hon. Friend's embrace of solar as part of
the energy mix. It is really important to say this: we need more
rooftop solar. Lots of people in this House ask, “Why don't we do
more on rooftops?”, and I agree with them. There is also an
important role for ground-mounted solar, however. I very much
look forward to coming to York at some point to see the projects
he talks about.
(Mid and South
Pembrokeshire) (Lab)
I welcome my right hon. Friend's statement, for which I thank
him. It is incredibly exciting and marks a complete change from
Conservative party policy. The Celtic sea, off the coast of my
constituency, has the unique conditions of deep water and strong
winds, offering us the opportunity to be a global leader in the
new technologies of floating offshore wind. However, those unique
conditions require a unique approach from Government. As we look
forward to allocation round 7, will the Secretary of State join
me in working to refresh the approach in the auction so that more
support goes towards FLOW projects in autumn 2025?
My hon. Friend is a great champion of floating wind in the Celtic
sea. He is right: we are proud of the 400 MW project in this
round. We need to look—including in the auction round, through GB
Energy and in other ways—at how we can build on our advantages in
crucial floating wind technology, take the opportunities that
they provide, and have the industrial capacity. I look forward to
discussions with him and other colleagues on how we make that
happen.
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