Michael Shanks is the Labour MP for Rutherglen.
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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
It perhaps will not surprise the hon. Gentleman or the House that I am not going to agree with his final point. Net zero is incredibly important to deliver climate leadership, lower bills and the jobs of the future. But on biomass, we rightly expect full compliance with all regulatory obligations on biomass, and consumers rightly recognise the high standard of accountability from generators.
Full debate: Oral Answers to Questions
My hon. Friend is right to raise the important potential of the Celtic sea in our green energy transition. I will be in Wales tomorrow to speak at a green energy conference on exactly that question. There is huge potential in floating offshore wind. We want to bring the manufacturing jobs in the supply chain to this country as well, which is why we launched today our clean industry bonus to bring that investment here to build the factories of the future and deliver the good, clean jobs of the future.
Full debate: Oral Answers to Questions
My hon. Friend is absolutely right. The report published by the independent National Energy System Operator laid out not only that reaching our clean power mission is entirely achievable, but that it will bring down bills. The importance of the report is that it set the course for how that is possible. The reality, which the Conservative party refuses to accept, is that the only way to get us off the rollercoaster of high bills is to deliver at pace the clean energy that we know will deliver energy security and climate leadership, and bring down bills for people right across the country.
Full debate: Clean Energy by 2030
I would encourage the right hon. Gentleman to read the NESO report, because it sets out in great detail not only that clean power is achievable by 2030, but that it will lead to lower bills. What he says about investment misses the point: in the last few weeks, we have announced billions of pounds of private sector investment in these projects; indeed, Scottish Power has announced today that it will provide £1 billion. Companies are choosing to invest in this country, whereas they did not under the Conservative party. The reality is that once upon a time, the Conservatives recognised that the drive to net zero was important. They have abandoned that commitment now.
Full debate: Clean Energy by 2030
Question after question from the Conservatives shows that they do not recognise the part they played for 14 years in why we are paying higher bills than ever before. We are the only party with an ambitious plan to get us off the volatile fossil fuel markets. The Conservatives used to believe that, in our drive to net zero, we should build this infrastructure for the long term. They are now opposing it, but they will have to tell their constituents why they want to leave them exposed to rising bills.
Full debate: Great British Energy
The Minister for Energy Security and Net Zero, my noble Friend Lord Hunt of Kings Heath OBE, has today made the following statement:
Full debate: Energy Infrastructure Planning
The warm homes plan, which we announced in our manifesto and on which we are moving forward, is about transforming homes right across the country by making them cheaper and making energy clean to run, rolling out upgrades from new insulation to solar and heat pumps. We will partner with local and combined authorities, and the devolved Governments where possible, to roll out the plan. That was in the Budget speech last week, in which an initial £3.4 billion was announced towards heat decarbonisation and household energy efficiency over the next three years. That includes £1.8 billion to support fuel poverty schemes, which, as I said, will help more than 225,000 homes.
While we are discussing the hon. Gentleman, he made a very good point about remembering the different types of fuel that households use, and the real issue for off-grid homes—particularly in the north of Scotland, but right across the UK. Again, fuel poverty is devolved, so some of those questions are for the Scottish Government to answer—I know that the questions will be put to them—but we are aware that in England, for which the Department for Energy Security and Net Zero is responsible, 12% of rural households are in fuel poverty, and those are the ones with the largest fuel poverty gap. Tackling those particular challenges in the rural context is therefore really important.
The hon. Gentleman spoke earlier about engaging with the Northern Irish Executive. I have met both Ministers with responsibility for different parts of the energy policy—most recently, in fact, in the inter-ministerial working group across all the devolved nations. One of the key topics that we discussed was decarbonisation, particularly of such households, so we absolutely are taking that issue forward.
Full debate: Fuel Poverty
This is a complex issue with a number of layers to it. I thank the hon. Member for Moray West, Nairn and Strathspey for raising it again. The challenge of how we lower bills for all is part of the energy trilemma that we are facing around how we demonstrate climate leadership, improve our energy security and lower bills in the long term. It is one that we are tackling head on, and we are determined as a Government to ensure that we do what we can to lower bills for all households across the country—in the highlands and islands, and right across the UK.
Full debate: Energy Rebates: Highlands and Islands
I would like to advise the House that today I am laying draft regulations to implement two amendments to the Contract for Difference (CfD) scheme in time for the next allocation round, supporting the Government’s clean energy superpower mission to deliver clean power by 2030 and accelerate to net zero.
Full debate: Contracts for Difference
Internationally, fusion energy could be transformational, both as a long-term solution to energy security and, in this most decisive of decades, in tackling the climate crisis. This is a low-carbon, safe and abundant source of energy, which does not require huge amounts of land or natural resources for its production. That makes it the perfect power source for nations have relied on imported fossil fuels, or that do not have the capacity to deploy renewables at the scale many will need. Those are the same countries that are most likely to be affected by climate change. In other words, as global energy demand grows—and we know that it will considerably in the decades ahead—fusion energy could be critical to keeping net zero within reach, as well as ensuring that citizens everywhere have access to power.
The Government are unashamedly pro-growth, pro-business and pro-innovation, and fusion is a great example of all three. It is such an important part of our plans because it covers all those points, and is a real opportunity for us to make progress and become the global lead in a genuinely transformative technology. That could ensure our energy security, drive huge growth and combat climate change here and far beyond our shores. STEP could, in short, be the UK’s Apollo moment, and I cannot wait to see where the fusion journey takes us.
Full debate: Fusion Energy
I thank hon. Members for the tone of today’s debate and for their contributions. Our starting point, which the Government have been very clear on from day one, is that we want to deliver clean power by 2030. We want to do that for a number of reasons: to protect people from the wild price spikes that they suffered because of the volatility of global fuel markets, to tackle climate change—a lot of the discussion today on the importance of agriculture misses the importance of tackling climate change, which is currently having an enormous impact on farms right across the country and, if we do not act faster now, will continue to have an even greater impact—and to deliver the energy security the country needs.That will involve a diverse range of projects and technologies
The Minister always engages in a collegiate manner, which I welcome. On rooftop solar, I am sure, despite the disagreements today, that we would all agree that more solar on rooftops is crucial for tackling the climate crisis energy bills. Could he therefore confirm that the future homes standard will require all new homes to include solar panels as standard?
I want to come back to the point about balance. It is key in a lot of the contributions made today, and indeed in other debates on this subject over the past few months. We have to find a way to balance the environment and our need to protect nature with supporting local communities to make sure that we can deliver cheaper, more secure energy in the future and tackle our climate change objectives. But new energy infrastructure is important in every single one of those points, so we have to build that infrastructure. The question is how to ensure we get that balance right. That is why we have announced that we will have a land use plan—something the previous Government failed to do. But it is also why we need to plan a lot of that infrastructure much more carefully.
Full debate: Large-scale Energy Projects and Food Security
I am tabling this statement to inform Members of the publication of a policy update, a consultation response, a consultation and a call for evidence on 15 October 2024. This is in support of making Britain a clean energy superpower by 2030 and accelerating progress to net zero.
The Government are 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 rely even more on renewable power. The Government have set a target to double onshore wind, treble solar and quadruple offshore wind by 2030.
Since its introduction in 2014, the capacity market has acted to secure sufficient capacity to ensure consistent and reliable electricity generation. The policy update that I am publishing today sets out the remaining proposals to reform the capacity market from the 2023 phase 2 consultation, aimed at aligning with the Government’s 2030 clean power and net zero goals, and improving security of supply. This document sets out policies to remove barriers for low-carbon technology to participate in the capacity market, which should accelerate investment in these technologies. This includes supporting low-carbon projects with longer build times to access support from the capacity market, enabling low-carbon technology with lower capital investment requirements to access longer-term capacity market contracts and reducing admin barriers for low-carbon technologies.
We intend to ensure that gas plants can decarbonise once low-carbon flexible technologies are available. To support the decarbonisation of unabated gas, I am today publishing a Government response to the decarbonisation readiness consultation, which will soon be followed by an accompanying statutory instrument. This will require that new build and substantially refurbishing unabated gas and other combustion power plants in England be built in such a way that they can readily decarbonise through either conversion to hydrogen-firing or by retrofitting carbon capture technology within the plant’s lifetime.
Finally, I am also publishing a capacity market consultation and a call for evidence on proposals to maintain security of supply and enable flexible capacity to decarbonise. We are seeking views on changes to the capacity market to:
Provide assurance that all substantially refurbishing or new combustion power plants participating in the 2026 capacity market auction have a credible plan to decarbonise before they become operational, whether through converting to hydrogen firing or carbon capture; and
Introduce exit pathways for unabated gas generators with multi-year capacity market agreements to transfer from the capacity market to bespoke support, enabling the plants to decarbonise.
These reforms will give owners and investors in gas power stations the certainty they need about future operations and their pathway to decarbonise. They come after the Government recently reached commercial agreement on the UK’s first carbon capture and industrial-scale hydrogen plants—technologies that will be critical in helping gas developers decarbonise their assets in future.
Full debate: Strengthening Electricity Security and Supporting Decarbonisation
I thank all right hon. and hon. Members for their contributions. I will try to respond to as many as I can, but I will briefly start with the context. This Government have come to power facing three interlinked challenges—ensuring energy security, displaying climate leadership and bringing down bills for people across the country—to which our response is our clean power by 2030 mission. Clean power is the only way to protect our constituents from the rollercoaster of price spikes that we have faced over the past few years, and to deliver the climate leadership that we need. That is why we introduced the Great British Energy Bill within our first 100 days, and why it is progressing through Parliament as quickly as possible. Great British Energy, which will have its headquarters in Aberdeen, is an important part of our plan to increase the delivery speed of renewables projects and, crucially—I will come back to this point—to ensure that the British people have a stake in that energy future. The Conservative party has for many years accepted the premise of publicly owned energy companies, but it does not support the premise of the British people being part of a publicly owned energy company—just ownership by companies from beyond our shores. Of course, we welcome their investment in this country, but with Great British Energy, we are saying that we would also like the British public to have a part to play.
Full debate: Renewable Energy Projects: Community Benefits
Our national mission to achieve clean power by 2030 and accelerate to net zero will require the capability to store energy when it is abundant to be used when supply is scarce. LDES technologies, which include pumped storage hydropower as well as new, innovative solutions like liquid air energy storage, are designed to store large quantities of excess electricity, such as that generated by solar and wind during periods of high output, and then supply it back to the grid over periods of several hours or days when it is most needed.
Low carbon long-duration flexibility technologies such as LDES will be pivotal in meeting and maintaining our clean power needs as electricity demand grows. LDES will also diversify our technology mix, giving us greater resilience. And by using renewable energy that can be stored, LDES can help the UK move towards energy independence. Analysis commissioned by Government found that in the central scenario, 20 GW of LDES resulted in electricity system savings of £24 billion by 2050. This represents a saving to consumers of 3.5% of the total system costs.
Full debate: Long-duration Electricity Storage Consultation: Government Response
That is a really helpful point. The community energy hubs that already exist are certainly something that we want to build on. The £10 million commitment is welcome. We have committed more than £1 billion to the local power plan over this Parliament, but we are building on what is already there, such as the local hubs. In Scotland, there is the community and renewable energy scheme, where we are already working with the Scottish Government to look at how we can jointly fund the project. It is really important that we work to build on what is already there.
Amendment 9 would require the Secretary of State to specifically set, as a strategic priority, measures to ensure that local communities benefit from low and renewable energy projects operating in their area. As we will discuss later, the Secretary of State will outline Great British Energy’s strategic priorities to ensure that it remains aligned with Government policy on energy more generally. The first statement, which we will make as soon as possible after Royal Assent—before Christmas, as was said earlier—will focus on driving clean energy deployment, creating jobs, boosting our energy independence and, crucially, generating benefits for UK taxpayers.
(f) the expansion and development of renewable energy and technology.”
This amendment would set objects for Great British Energy of facilitating, encouraging and participating in an emergency home insulation programme with targeted support for people on low incomes, and the expansion and development of renewable energy and technology .
The need for Great British Energy and the demand for the energy that is being created is also generated by the amount of energy that leaks from cold, draughty homes. We are approaching winter now. In my constituency of South Cambridgeshire and, I am sure, in constituencies across the country, including those represented by Members of this Committee, a large number of people, many of them vulnerable, are in cold, damp homes. Although those people may be able, through their local authority, to have some renewable energy features and insulation added to their home, a proper emergency home insulation programme—not just for this winter but for the long term—is not being considered.
As we know from the Climate Change Committee, the calculation of the demand for energy generation changes when we look at the amount of energy lost through heating homes. We would need to generate less energy if we managed our home insulation programme. I therefore think that it is within scope to show not only the price of people’s bills but the standards under which they are living in their homes, and the amount of energy being lost without a home insulation programme. I know that the Government have their warm homes plan, which we will see in the spring, but we should consider home insulation within energy efficiency, given the importance of GB Energy to the consumer.
Full debate: Great British Energy Bill (Third sitting)
In summary, clause 3 is about restricting Great British Energy’s activities to those specifically listed in the Bill, around “facilitating, encouraging and participating” in clean energy projects, reducing greenhouse gas emissions, improving energy efficiency, and ensuring energy security in the long term. Clause 3 thus provides the framework for Great British Energy to carry out the five functions outlined in its founding statement.
Clause 3(2)(b) will enable Great British Energy to facilitate, encourage or participate in projects that would contribute to the reduction of greenhouse gases from energy produced from fossil fuels. Building on some of the evidence we heard on Tuesday, I want to be very clear that that includes, for example, projects relating to carbon capture and storage, or blue hydrogen.
Full debate: Great British Energy Bill (Third sitting)
I completely agree. The only way to permanently protect hard-working families and businesses from the high energy bills from which many are still suffering is to get ourselves off our reliance on the volatile fossil fuel markets. That is why we are rolling out at pace and at scale the clean power necessary to do so, which not only gives us energy security but creates good jobs, brings down bills and helps us to tackle the climate crisis.
Full debate: Oral Answers to Questions
My noble Friend the Minister of State for Energy Security and Net Zero (Lord Hunt of Kings Heath OBE), made the following statement today:
Full debate: Energy Infrastructure Planning Projects