14:30 Stephen Crabb (Preseli Pembrokeshire) (Con)

The previous debate was essentially held under a different Government, when energy and climate change belonged in a stand-alone Department under a different team of Ministers led overall by a different Prime Minister. I welcome the new ministerial team at the Department for Business, Energy and Industrial Strategy. The team is experienced and well equipped to take on the challenges before us. I also welcome what the new Business Secretary said to the Institute of Directors on 27 September in his speech on industrial strategy:

Does the right hon. Gentleman agree—perhaps the Minister will reflect on this too—that, given that 75% of identified fossil fuels cannot be exploited if we are to fulfil our Paris and COP 22 climate change obligations, the spot price of oil, which is often deflated by Saudi excess production to attack frackers, should not be the point at which we identify value for money? We should get sustainable green power at the lowest cost possible, even if the cost of oil is down.

A key feature of UK energy policy, whatever else might be said, it that it is not neutral. It does not rely solely on market choices to drive new investment. To that extent, we have an activist energy policy that demands big, difficult and timely choices from Ministers. A core objective of recent UK energy strategy, as the last Secretary of State for Energy and Climate Change, my right hon. Friend the Member for Hastings and Rye (Amber Rudd), said last year, is to ensure

The right hon. Gentleman is making a fine speech. The strike price over 90 years is £96.50, which compares with the Hinkley Point strike price of £92.50 over 30 years, both at 2012 prices. Of course, it is often forgotten that nuclear has had 60 years of support, and 44% of the budget of the former Department of Energy and Climate Change was spent on addressing the legacy of old nuclear. Putting all that together, Swansea bay and other tidal lagoons represent very good value for money.

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14:54 Liz Saville Roberts (Plaid Cymru)

I turn briefly to the role of tidal lagoons in meeting environmental targets, which is the second aspect of the energy trilemma. Whatever the impact of Brexit on the UK’s energy and environmental policy, under the Climate Change Act 2008, we are committed to reducing carbon emissions by 57% by 2030, on 1990 levels. As recognised by the Committee on Climate Change, it is likely that new technologies, including tidal lagoons, need to be implemented to meet that target.

The third aspect of the trilemma is often referred to as energy equity—that is, the affordability of energy for consumers—but I shall also touch on the broader economic implications of tidal lagoons. As the first of its kind, Swansea bay tidal lagoon is undoubtedly more expensive than some of the rival technologies. However, as the project is small, its impact on household electricity bills will be small as well. For consumers, Swansea bay’s real benefits lie in its ability to act as a catalyst for an industry of cost-effective renewable energy in the form of future tidal lagoons.

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15:03 Sue Hayman (Workington) (Lab)

In conclusion, I absolutely support the pathfinder tidal lagoon project in Swansea bay. I am pleased to hear that Charles Hendry’s report appears to be imminent and I urge the Minister to let us know when it will be published, so that we can all take a look at it. If we can get this first project off the ground, areas such as the one I represent will be able to benefit greatly from this huge investment in our future, which will also help to bridge the national energy gap and ensure that we meet our international climate change commitments.

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15:06 Stephen Kinnock (Labour)

My constituency of Aberavon, along with that of my hon. Friend the Member for Swansea East (Carolyn Harris), a neighbouring constituency, would be the home of the Swansea bay tidal lagoon project, which would be the first such project in the world. Tidal lagoon power is an idea whose time has come. The Swansea bay tidal lagoon would produce enough energy to power 150,000 Welsh homes for 120 years, meeting 11% of Welsh energy needs with clean, green, reliable and sustainable energy, saving almost a quarter of a million tonnes of carbon during each year of operations. It would directly sustain over 2,000 construction and manufacturing jobs in Wales, and support as many as 311 UK industrial and manufacturing businesses along the supply chain. Crucially for my Aberavon constituency, the project will require more than 100,000 tonnes of steel, much of which will come through the Port Talbot steelworks. Tidal Lagoon Power has committed to procuring as much steel as possible from UK suppliers and it should be commended for making that pledge and held to it.

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15:10 Jim Shannon (DUP)

Strangford lough in my constituency is one of the most beautiful loughs in the whole world. I defy any Member of this House to come and have a coffee and a delicious scone in Harrisons of Greyabbey, sit on the veranda looking over the lough and argue that the view could be beaten. I would argue that the view could never, ever be beaten. Not only is Strangford lough the most beautiful, but it has the potential for so much energy production. Indeed, we were proud to trial the world’s first tidal current energy turbine, the SeaGen. Tidal power is an important part of any renewable energy plan as it is a guaranteed source of power and, unlike wind power, can be relied on every day. Generating electricity from two massive underwater propellers, the SeaGen was lowered into place in 2008 and bolted to the seabed in one of the world’s fastest tidal currents.

The levy control framework, established by the former Department of Energy and Climate Change and Her Majesty’s Treasury, set a cap for the forecast costs of certain policies funded through levies on energy companies and ultimately to be paid for by consumers. Since November 2012, the framework has covered three schemes to support investment in low-carbon energy generation: the renewables obligation, feed-in tariffs and contracts for difference. It sets annual caps on costs for each year to 2020-21, with a cap of £7.6 billion in 2020-21, in 2011-12 prices. According to the latest forecast, the schemes are expected to exceed the cap and will cost £8.7 billion by 2020-21. That is equivalent to £110—around 11%—on the typical household fuel energy bill in 2020. That is £17 more than if the schemes stayed within the cap.

I will conclude shortly. I understand other Members want to speak, so I will not take extra time. We need to do more, and projects such as SeaGen at Strangford lough are possibly the way to go as they also seek to address the environmental impact duty that we must stick by. The environmental reasons for renewable energy are clear and compelling. Although I am not someone who would ban the use of fossil fuel or nuclear reactors as needed, I do feel we should make the most of the great resources that we have in our tidal energy provision. I am anxious to see how we can develop that in Strangford lough and throughout the Province—indeed, across this great nation of the United Kingdom of Great Britain and Northern Ireland—so that we rely less on fossil fuels and other energy sources that are not on our doorstep.

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15:22 Jessica Morden (Labour)

The project is not only a matter of renewable energy generation and playing our part in meeting climate change targets. There is also a chance for coastal regeneration and a boost to recreation and tourism. The leader of Newport City Council, Debbie Wilcox, has given it her backing and said it is a “marvellous opportunity for Newport”. There is huge added value in the project—not least from up to 33,000 jobs at the four lagoons in Wales, were they to go ahead. It is an amazing opportunity that we should grasp for Swansea, yes—but also for Newport. I urge the Government to make a timely decision.

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