16:55 The Secretary of State for Business, Energy and Industrial Strategy (Greg Clark)

Britain’s energy policy on electricity generation is based on meeting three needs: ensuring that we can count on secure and dependable supplies of electricity at all times; minimising the cost of supplies to consumers and taxpayers; and meeting our greenhouse gas emission reduction obligations. To those three requirements we have added, through our industrial strategy, a further ambition, which is to secure long-term economic benefits, in terms of jobs and prosperity, from the decisions that we take.

Our policy has been successful. Britain has one of the most secure and reliable electricity supply sectors in the world. Last winter, one of the coldest in recent years, the margin of capacity in our electricity generating system was more than 10%—around twice what it was in 2016-17. We have the strongest record in the G7 for reducing our greenhouse gas emissions. Between 1990 and 2016, the UK reduced its emissions by more than 40%. We have massively increased our deployment of renewable generation: renewable electricity now makes up almost 30% of our generation; our renewable capacity has quadrupled since 2010; and in two years the auction price of offshore wind has fallen from £114 per MWh to £57.50 per MWh. Coal, the most polluting fuel, contributed less to generation in Britain last year than in any year since the industrial revolution. All that has been achieved while the UK has maintained a position in respect of electricity’s overall cost to households that is well below the average for major European countries.

Nevertheless, the cost of electricity is significant for households and for businesses, and the policy-related costs have been growing. We have made a clear commitment to bear down on those costs. It is in that context that the Government have assessed whether they should commit consumer or taxpayer funds to the programme of six tidal lagoons proposed by Tidal Lagoon Power Ltd, with the first being the proposed project at Swansea. We believe in renewable energy and we believe in the benefits of innovation. The conclusion of our analysis, which has been shared with the Welsh Government, is that the project and the proposed programme of lagoons do not meet the requirements for value for money, so it would not be appropriate to lead the company to believe that public funds could be justified.

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17:02 Bill Esterson (Labour)

One very good way of offsetting the impact on climate change of expanding airport capacity would be to expand renewable energy production. Is not it remarkably ironic that this statement has been made on the same day as the Heathrow vote? There is a fine judgment to be made on Heathrow tonight. Giving the go-ahead to the Swansea Bay tidal lagoon would have made supporting Heathrow just that little bit easier.

As a member of the Public Accounts Committee, I can say that value for money is very important to the House and should always be, and I accept the Secretary of State’s assessment in this regard. However, will he confirm to and reassure the House that the Government are not giving up on marine energy or renewable energy, and set out further plans in due course?

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