Clean Energy by 2030

In just four short months, we have made rapid progress on achieving our mission for clean power by 2030. We have set up Great British Energy and announced its headquarters in Aberdeen, secured a record-breaking 131 renewables projects, and consented to record amounts of solar. We are getting on with delivering lower bills, energy security, good jobs and climate action.

Rolls-Royce in Derby is an international leader in research on and the development of small modular reactors, and it is fantastic that the Government have acknowledged the role that SMRs will play in clean power generation, energy security and green jobs. In the Budget, we heard that the final decision on Great British Nuclear’s SMR competition will conclude next spring. Does the Minister agree that it is important for this opportunity to be seized as soon as possible?

I agree with my hon. Friend that nuclear will play a central role in our clean power mission, and will continue to be a critical part of our energy mix as we progress towards 2030 and far beyond. Great British Nuclear is continuing to drive forward the competition on small modular reactors, with bids currently being evaluated by the Department, and I look forward to having more to say about this in due course.

I call the Chair of the Energy Security and Net Zero Committee.

The last Government held a consultation on electricity market arrangements, but despite having said that that was their flagship policy in this area, they did not publish the results of that consultation. Does my hon. Friend agree that electricity and, indeed, energy market reform is crucial to achieving the Government’s stated 2030 clean energy targets and to reducing bills, and can he say whether this Government will publish the results of the last Government’s consultation and if so, when?

I congratulate my hon. Friend again on his appointment as Chair of the Select Committee—he brings a huge amount of knowledge and experience to the role—and I agree with him about the importance of reviewing electricity market arrangements. We are building on the last Government’s consultation, and we will have more to say in the months ahead. This is a crucial element of how we achieve clean power by 2030 and ensure that our energy system of the future is fit for what will be a different way of managing energy throughout the country. We will have more to say about that in the months ahead.

Last week a report published by the National Energy System Operator noted that although the programme to roll out new small modular reactors was being developed for the mid-2030s, a 2030 roll-out date would in fact be possible. Given that SMR technologies hold exciting and significant potential for investment in jobs and infrastructure in constituencies such as mine, has the Minister considered the value of bringing the roll-out forward to 2030?

My hon. Friend is right to say that nuclear will play a vital role, and that it not only delivers on our energy security but creates good, well-paid jobs. Unlike the last Government, who in 14 years did not deliver a single nuclear project—there were many consultations and processes, but not a single nuclear power station was built—this Government are getting on with delivering a nuclear future.

Last week’s report from the National Energy System Operator showed that not only is clean power by 2030 achievable, but it can lead to lower bills and more secure systems. Does the Minister agree that the only way to protect bill payers permanently is to go as far and as fast as possible towards our clean power mission by 2030?

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.

I am delighted that the Minister is setting out that the report promises an extra £40 billion of investment a year in the energy sector and, presumably, the taxes to go with it, which will of course come from the businesses that are paying for everything else in the Budget that has just gone by. Is there anything at all in his proposals that will actually bring down the cost of energy and not be replaced by taxpayer funding? It appears at the moment that there is nothing, and energy prices are already going up.

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.

I thank the Minister for agreeing to meet the OffSET—offshore electricity grid taskforce—group of MPs later today; we are very much looking forward to the meeting. Does he recognise that achieving the 2030 deadline set out in the NESO report requires an acceleration of the process, which, in turn, is dependent on much higher levels of public consent?

I recognise the hon. Gentleman’s point, and I am looking forward to meeting him and his colleagues this afternoon to discuss the particular issues in his area. We need to build more network infrastructure across the UK to make this endeavour a reality, but he is right: we want to bring communities with us on this journey. That is why we have said that we are looking again at what community benefits will look like, building on some of the work that the previous Government did in consulting on this issue. Crucially, however, if want to bring down bills and deliver energy security, we will have to build the infrastructure, and that is what this Government are committed to doing.

The Minister knows well the Liberal Democrats’ commitment to community energy. Will the Government establish a clean community energy scheme, look at the barriers that currently face community energy projects and look at supporting the National Grid to deliver community energy?

The hon. Lady and I have had a number of conversations, and I recognise her commitment on this issue. We have committed in the local power plan to delivering investment in community energy across the country. Importantly, we want not only to invest in schemes, but to deliver across Government the mechanisms needed to make it more possible for communities to deliver such schemes. That will build capacity in communities so that we can see more community energy.

What is the beef behind the Government’s reluctance to embrace with enthusiasm locally generated community energy? Why did they vote against the amendment tabled to the Great British Energy Bill by the hon. Member for Bath (Wera Hobhouse)?

I think the right hon. Gentleman thinks that was a “gotcha” question, but, of course, the Conservative party did not vote for the Bill at all. Amendment or not, I do not think he can really speak about what Great British Energy might deliver, because, despite it being one of the most popular policies at the last election, the Conservatives failed to bother to vote for it.

I call the shadow Secretary of State.

Last week, the National Energy System Operator published a full systems cost analysis of the Secretary of State’s flagship project to carbonise the grid by 2030. This morning, the Secretary of State said on several media outlets that the report shows that his plans will lower bills. I remind the House that the report assumes that gas prices are 40% higher than the Department’s own estimates, that the price of carbon price is at least double what it is now, that the Government can commission more offshore wind in the next two years than in the last six combined without moving prices, and that they can build the grid at a pace we have never seen before in this country, without any delays. Even if all that is achieved, page 78 of the report shows that the cost of the system will be higher. For clarity, would the Minister like to repeat at the Dispatch Box the Secretary of State’s claim that the NESO report shows that Labour’s system will lead to a lower cost of electricity?

What the shadow Secretary of State has just outlined quite coherently is that the Conservatives have no ambition in this space whatsoever, but we do. I am very happy for the right hon. Lady to outline where our ambition is. We will build faster than the previous Government, although I have to say that that would not be difficult. The shadow Minister sitting next to her, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), said quite clearly at their conference that the previous Government had built infrastructure far too slowly, and their former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart), said that their onshore wind ban was “always mad”. We are quite happy to pick up where they left off and deliver the clean power that this country needs.

This is the ministerial team who told the electorate they were going to cut their bills by £300, without doing any homework to find out how those plans would work. They voted against our amendment to hold them to account on their own pledge just two weeks ago, and now they are trying to claim that the NESO report shows that their approach will lower bills when in fact it shows in black and white that the system will be much more expensive. Does the Minister not see that if they follow this plan, we will be a warning, not an example, to the rest of the world and that the British people will be colder and poorer as a result?

Time and again, the Conservatives run away from their record on this in office. The reason why people right across this country are paying more on their energy bills is that the Conservatives did not get us off the rollercoaster of fossil fuel markets, but we are now moving at pace. The right hon. Lady may want to keep us in the vulnerable state where we are reliant on international gas markets, but we are determined that we will not do that. We will bring down bills and deliver energy security. I am not ashamed to say that we will move with great ambition to deliver what this country needs and to deliver the good jobs that go with it.