Michael Shanks is the Labour MP for Rutherglen.
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That is why we believe so firmly in our clean power by 2030 mission, which, by creating home-grown renewable energy, will help us to reduce our dependence on volatile fuel markets and will protect bill payers for good. Great British Energy will play a vital role in that mission by accelerating our deployment of clean energy so that Britain can become a clean energy superpower. Crucially, it will also invest in the supply chains that bring manufacturing jobs for renewable energy to our country.
The hon. Member for Epsom and Ewell (Helen Maguire) spoke very passionately about climate change. That is really important. The mission we are on is about building an energy system for the future that gives us energy security, but it is also about tackling the climate crisis, which we can no longer think of as a future threat. As we look around the world, we can see from just this year alone that it is a present reality. It is increasingly difficult to read the statistics and not think that we should be taking more decisive action.
On the point about rebalancing—how we move electricity costs, in particular, on to gas—that is also a challenge. We want the number of people who use gas to decline in the coming years, as we decarbonise. The challenge will be making sure that we do not put charges on to a dwindling number of customers. Potentially and inadvertently, some of the poorest people in the country might be those who are the last to convert from gas to alternatives. I do not, for a second, dismiss the points that have been raised; they are incredibly important. However, I want to be very clear that we are working relentlessly in this Parliament on how we reduce the wholesale costs, and we want to make sure that it follows through on to consumers’ bills.
Full debate: Cost of Energy
In coming to this view, we have taken advice from the National Energy System Operator on security of supply, analysed the effect on consumers of support for biomass versus alternatives, looked at issues around subsidy and sustainability in existing arrangements, and considered longer-term issues around decarbonisation.
Fourthly, we have looked at issues around decarbonisation. Our finding is that there is a potential role for bioenergy with carbon capture and storage, or power BECCS, but realistically this will take time to implement and therefore cannot form the primary basis of this decision.
To help that process, we are setting up an independent review to consider how respective greenhouse gas removal, including large-scale power BECCS and direct air carbon capture and storage, can assist the UK in meeting our net zero targets and ensuring security of supply, out to 2050. Further details of the review will be shared in due course.
Full debate: Drax Power Station: Biomass
In coming to the view I will express today, we have taken advice from the National Energy System Operator on questions of security of supply, analysed the effect on consumers of support for biomass versus the alternatives, looked at issues around subsidy and sustainability in the existing arrangements, and considered longer term issues around decarbonisation.
Fourthly, we have looked at issues with decarbonisation. Our finding is that there is a potential role for bioenergy with carbon capture and storage—or power BECCS—but realistically this will take time to implement and therefore cannot form the primary basis of this decision. On the basis of that assessment, and given the circumstances that we inherited, the clear evidence is that Drax is important for delivering a secure, value-for-money power system in the period 2027-31. But we have also concluded that we cannot allow Drax to operate in the way in which it has before, or with the level of subsidy that it received in the past. On that basis, we have secured heads of terms that will form the basis of a very different agreement with Drax for support during the period 2027 to 2031.
We will do the work that was not done by the previous Administration on strong and credible low-carbon alternatives, so that in four years’ time we will have proper options. To help that process, we are setting up an independent review to consider how options for greenhouse gas removal, including large-scale power BECCS and direct air carbon capture and storage, can assist the UK in meeting our net zero targets and ensure security of supply out to 2050. The review will take representations widely on the issues and report back in due course.
Full debate: Biomass Generation
Good morning, everyone. It is a pleasure to serve under your chairmanship this morning, Mr Twigg, and to be back so soon in the year to talk about the capacity market. The draft instrument, which was laid before the House on 16 December 2024, seeks to make technical improvements and changes to the capacity market scheme—the Government’s main tool for ensuring security of electricity supply in Great Britain. To achieve clean power by 2030, electricity market reform is critical; to paraphrase our clean power action plan, we must reform the capacity market to provide clear and viable routes to decarbonisation for unabated gas, enable low-carbon flexible capacity and incentivise investment in existing capacity.
Since its introduction in 2014, the capacity market has contributed to investment in just under 19 GW of new, flexible capacity, which is needed to replace older, less efficient plants as we transition to a net zero economy. To date, the capacity market has been successful in ensuring that Great Britain has adequate electricity capacity to meet demand, and it continues to be required in order to maintain security of supply and provide investor confidence. To ensure that the capacity market continues to function effectively, we regularly make adjustments to the implementing legislation, based on our day-to-day experiences of operating the scheme. On that note, let me turn to the details of the draft instrument.
In conclusion, the draft instrument introduces a number of technical provisions and changes to enable the continued efficient operation of the capacity market, so that it can continue to deliver on its objectives. These reforms will be critical on our pathway to achieving clean power by 2030. They will improve security of supply and, by accelerating investment in low-carbon technologies, increase the role that those play in the capacity market. We need clear routes for the decarbonisation of unabated gas and for the rapid acceleration of low-carbon, flexible capacity, and today we make another step towards that. I commend the regulations to the Committee.
Full debate: Draft Electricity Capacity (Amendment) Regulations 2025
We outlined in the clean power action plan that between 23 GW and 27 GW of grid-scale batteries could be required to meet our decarbonisation goal by 2030. Not far from my constituency, one of Europe’s largest battery plants was announced recently, so this infrastructure is being shared across the UK.
The hon. Gentleman and other hon. Members spoke about food security, and I make it clear that we take the view that food security is national security. It is critically important that we maintain food security across the country. Even if we built out all the solar that we currently expect to build, it would still take up less than 1% of the UK’s agricultural land, so we do not see food production and renewable energy as competing priorities. The two can co-exist.
We all want to see a resilient and healthy food system. The hon. Members for Beaconsfield (Joy Morrissey) and for Mid Buckinghamshire both mentioned floodplains. Tackling climate change will be one of the most important ways to reduce the frequency of floods in such areas, which is crucial for maintaining arable farmland. We have to tackle the climate crisis if we are to maintain our food security, but we also want a balanced approach to land use.
The hon. Gentleman mentioned the land use framework, which was announced last week. Unsurprisingly perhaps—far be it from me to say this— The Daily Telegraph misleadingly suggested that all of this farmland will be reused for renewable energy projects. That is not what the framework says. It says there are a number of uses for that land in relation to sustainability, such as where there are peatlands or particular environmental schemes that could help to lock in carbon, support biodiversity and wildlife, and help us to meet our climate obligations. It is not that the land will be used to build energy projects, as the article wrongly said.
Full debate: Energy Development Proposals: Mid Buckinghamshire
The Department for Energy Security and Net Zero will work with the Nuclear Decommissioning Authority to immobilise the UK-owned civil separated plutonium inventory at Sellafield.
Full debate: Plutonium Disposition Strategy
Clean power by 2030 is not some ideological project, as the shadow Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), and others in the Conservative party might like to suggest. It is a critical pathway for how we deliver energy security in the long term; all our constituents have been facing a considerable cost of living crisis as a result of us not having home-grown energy security. The clean power mission is about ensuring that we not only have that energy security but tackle the climate crisis and deliver economic growth. I make no apologies for the fact that we are a Government moving at pace, because it is important that we grasp the opportunities for the implementation of both marine technologies and the many other innovative technologies that Britain can be a world leader in delivering. It is also our best opportunity to deliver cheaper energy for people across the country.
Full debate: Marine Renewables Industry
Since its introduction, the capacity market has contributed to investment in just under 19 GW of new, flexible capacity needed to replace older, less efficient plant as we transition to the net zero economy. The capacity market was originally approved under European Union state aid rules for a period of 10 years. Following the UK’s withdrawal from the EU, a requirement in EU law for approval of up to 10 years was brought into our domestic law as part of the assimilated electricity regulation. To date, the capacity market has been successful in ensuring that Great Britain has adequate electricity capacity to meet demand, and it continues to be required to maintain security of supply and investor confidence. This will be increasingly important as further sectors of the economy are decarbonised through the transition to net zero, increasing demand for electricity.
Full debate: Draft Electricity Capacity Mechanism (Amendment) Regulations 2024
It is also important that the Government are clear that we want to see a long-term sustainable future for the refinery site. That is why we invested in Project Willow, which at the moment is coming up with credible investable propositions for the site. We want to protect the workers and do whatever we can to ensure a just transition at Grangemouth and for industry right across the country, but those options need to be long-term and sustainable so that we do not drive workers back into this process again a few years down the line. We are committed to ensuring that we invest in long-term sustainable propositions for the site, and of course we will meet anyone and discuss any propositions to help make that happen.
Full debate: Community Energy Projects
Communities are, and will always be, able to speak about the plans for their local area, and to contribute to consultations and planning applications—we will not change anything about that. However, it is important to say that nationally important infrastructure will need to be built somewhere if we are to have the clean power future and energy security that everybody in this country needs. I gently say to the hon. Lady that, even in the most extreme statistics, less than 1% of land in this country would be used to build for solar. Either the Conservatives are in favour of keeping us on the rollercoaster of volatile fossil fuels, or they are in favour of building clean power. Her party used to be in favour of net zero, but now it seems to be running away from it at speed.
Full debate: New Energy Infrastructure: Community Benefit Scheme
This Government have committed to delivering clean power by 2030 and accelerating progress towards net zero, while ensuring the security of supply. Making Britain a clean energy superpower by 2030 is one of the Prime Minister’s five missions. To deliver this mission, we will increasingly rely on renewable power. The Government have set targets to double onshore wind, treble solar and quadruple offshore wind by 2030.
The transition to clean power will see changes in the patterns of energy production and consumption, with flexibility playing an increasingly important role. In October, we published a consultation and call for evidence exploring proposals to maintain security of supply and to enable flexible generation capacity to decarbonise. Today, we build upon this work by publishing a consultation and call for evidence on proposals to modernise the capacity market rules and improve consumer-led flexibility within the capacity market.
Full debate: Capacity Market: December Publications
Let me first speak about the context of the debate and I will then answer some of the specific questions. I think the “why” of our being in this race and transition is important. Why are we pushing to deliver clean power by 2030? The truth is that it is an imperative if we are going to meet our long-term goal of a net zero economy and deliver economic growth and energy security. They are intrinsically linked.
The Government received the National Energy System Operator’s advice on achieving a clean power system by 2030. It shows that this is not only achievable, but can create a cheaper, more secure system. The advice will inform the Government’s clean power 2030 action plan, which will be published imminently and will set out our route to decarbonising the electricity grid with the aims of protecting billpayers from volatile gas prices, strengthening Britain’s energy security and accelerating us towards net zero.
The new technology unlocks deeper areas of the seabed that can benefit from stronger and more consistent winds, helping us to secure our energy supply and to deliver on our statutory decarbonisation obligations. Our floating offshore capacity is second only to Norway. At around 25 GW, we have the largest pipeline of floating offshore projects anywhere in the world. Of course, in the Celtic sea, there is enormous potential for floating offshore wind, and we are determined to take advantage of the opportunities that that represents. Earlier this year, the floating offshore wind taskforce estimated that floating offshore wind could contribute £47 billion in GVA to the UK economy by 2050 and support up to 97,000 jobs across the country, so we are hard at work, right across Government and in the private sector, to make sure that we realise the vast potential of this opportunity.
Full debate: Floating Offshore Wind: Celtic Sea
It is a pleasure, Sir Christopher, to serve under your chairmanship. I thank the hon. Member for Harwich and North Essex (Sir Bernard Jenkin) for introducing the debate, for his approach, and for the engagement we have had on the topic in the short time that I have been in this job. While I suspect we might disagree politically on a great many things, his repeated commitment to the need for net zero is important, and separates him from some hon. Members who might make the issue of grid updates part of an excuse to avoid dealing with the climate issue. I welcome that, and I was pleased to meet him and his colleagues recently to discuss the matter.
Full debate: Electricity Grid Upgrades