Michael Shanks MP: speeches

Speeches

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  We come to the most exciting clause in the Bill: the offshore transmission owner, or OFTO, regime. I can see everyone is on the edge of their seats. This is an incredibly important clause. It provides a competitive market for offshore electricity transmission, which is important because it helps us to achieve cost-effectiveness in the building and operation of offshore wind farm connections on to the national grid. The clause is part of our efforts to ensure the regime supports the UK’s continuing ambition to be a world leader in offshore wind. The clause extends the time that wind farm developers who build their own transmission assets have to divest those assets to an independent offshore transmission owner. That time is currently 18 months and the clause increases it to 27 months. That period is known as the generator commissioning clause, or the GCC. The clause addresses the increase in size and complexity of wind farms since the GCC was first introduced. My Department issued a call for evidence on the OFTO regime, which closed in February 2024 under the previous Government. The responses suggested that the GCC period was too short and should be extended due to the increase in the size and complexity of wind farms, which has led to an increased risk of developers experiencing technical faults, and has meant more time is required for more complex commercial negotiations. Without the clause, we would expect to continue to see many offshore wind farms needing to request individual transmission licence exemptions, which we bring to this House for decision, if they are unable to transfer transmission assets within the current 18-month period. The vast majority of offshore wind farms entering the process since 2016 have needed to apply for one of these exemptions, with each exemption requiring a separate statutory instrument to be considered each time. The clause is therefore expected to reduce very significantly the number of offshore wind farms requiring an exemption. The requirement for an exemption leaves wind farms at risk of shutting down, taking a source of renewable energy off the grid and endangering the UK’s energy security, which is of course something we all want to avoid. This is a technical but very important clause and I commend it to the Committee. Question put and agreed to. Clause 23 accordingly ordered to stand part of the Bill. Clause 24 Use of forestry estate for renewable electricity Question proposed, That the clause stand part of the Bill.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  It is a very important point, and this will come through in the discussions that we will have more generally in this Committee around community consultation, but it will continue to play an important part. I think it is important to separate out any question of compensation from community benefit. This is not a compensation scheme, and landowners that currently are compensated for infrastructure being built will continue to be compensated through whatever channels that is decided in. This is a community benefit, so it is additional. It is about recognising that it is critical for the future of the country that we build new grid infrastructure, and that if someone hosts that infrastructure they should gain some benefit from doing so. This is our proposal for doing that, alongside the community benefit funds that we have announced. The Government believe that it is appropriate to set out the full detail on this in regulations, as is the case in many such schemes that have been set up over the years, due to the technical level of detail that will be required, and have drafted this clause to make sure that it applies only to transmission infrastructure, as it is not the intention that it should apply to other technologies. I commend clause 22 to the Committee. That brings me to new clause 102, tabled by the hon. Member for Taunton and Wellington, which seeks to introduce a scheme that would ensure communities are provided with financial benefits from hosting major energy infrastructure projects from a range of technologies. I welcome the intent of this measure. Indeed, I have had a number of conversations with the hon. Gentleman’s colleagues on this very topic over the past nine months in which I have had the privilege of having this job, and spoken fairly recently to his colleague, the hon. Member for Inverness, Skye and West Ross-shire (Mr Angus MacDonald)—I was in his constituency yesterday, seeing the investment that this Government have made in port infrastructure in his constituency. We therefore agree broadly with the hon. Member for Taunton and Wellington’s point about how communities should benefit from all this energy infrastructure, but the new clause is not the right way to do it. We are already considering—he quoted myself to me, and I was delighted to hear I was fairly coherent in that debate—the question of wider community benefits. Clearly, at the moment most such community benefit schemes are voluntary schemes run by developers. It is important to say that some of those are actually hugely successful, and communities welcome the collaborative approach in drawing them up, but others are very unsuccessful, and leave communities without the genuine benefits that they should get. We are therefore looking at this really closely at the moment. As my hon. Friend the Member for Basingstoke noted, we published guidance in May 2025 on community benefit funds for those who live near electricity transmission infrastructure, and shortly we will publish updated guidance for onshore wind in England, which, of course, follows the 10 years of the previous Government’s ban in England. We are also exploring options for our overall approach to community benefits, to provide consistency across different technologies and to maximise the ambition from that. We have left on the table the option of that being mandatory in every case, but we want to look closely at how that would work, and how the design would work to ensure that we are not setting a scheme that does not suit the flexibilities that individual communities might want to take advantage of. I reiterate that communities are providing a service to this country when they host clean energy infrastructure and there should be a benefit from it. Towards the end of the hon. Gentleman’s speech, he rather veered off community benefits and into an equally important space on community ownership, which is something that I have also had a number of important conversations about. We see ownership of energy by communities as a really important step as well, and that is a step up from community benefits.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  The hon. Gentleman makes an important point, which we will take onboard. It is already part of what the Health and Safety Executive and the Fire Service are looking at nationally in terms of guidelines, but the Government continue to take an interest. The hon. Gentleman is right that as the schemes expand across the country, more fire brigades that may have not had experience of these incidents in the past will have to gain experience. It is an important point and we take it seriously. On a general point, I am glad that hon. Members across the Committee recognise the importance of LDES. It is genuinely an exciting moment for the country that we will build some of these important engineering projects to deliver the long-duration energy storage that the country needs. Question put and agreed to. Clause 21 accordingly ordered to stand part of the Bill. Clause 22 Benefits for homes near electricity transmission projects

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank the hon. Lady for that point; I will come to the new clause shortly. The difficulty with that approach for transmission infrastructure is that by definition it goes through so many different communities in a linear way that it would be really difficult to divide up that funding among communities. How you define each community is quite challenging, whereas defining households that are within a certain distance of pylons, for example, is very easy, and we want to give a direct benefit to those households.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  Thank you, Mrs Hobhouse. On that cheery note, it is great to be back in Committee this morning. The clause is about long-duration electricity storage, or LDES, which is an incredibly important part of an electricity system, allowing us to store cheap renewable energy when the wind is blowing and the sun is shining, and to generate electricity when people need it most. It is a crucial part of our clean power mission. Across Great Britain, we already have 2.8 GW of LDES on the grid. I have had the pleasure of visiting some pumped hydropower stations that have been part of our system for decades. They allow excess electricity to pump water high up to a mountain reservoir, where it can be released when we need it to drive turbines and generate electricity. The most recent of those sites, however, was completed more than 40 years ago. The clean power 2030 action plan suggests that we need another 1.2 GW of LDES in the next five years. The National Energy System Operator suggests that we could need up to 15 GW by 2050, so a significant increase on where we are today. Despite low operating costs and high system-wide benefits, which in 2024 were estimated at £24 billion, the large up-front capital costs to build such stations in the first place, and the revenue uncertainty over such a long lifespan of an asset, have deterred private investment in LDES over the decades. The clause therefore introduces a cap and floor scheme to develop new long-duration energy storage in Great Britain. Those wishing to develop an LDES asset will be able to apply to Ofgem for protected revenues, conditional on satisfactory delivery and operation and on sharing excess profits with consumers. That provides the revenue certainty needed for investors, giving the green light for the next generation of those important assets. We expect—we have set out deliberately—that this will be technology-agnostic. We therefore expect that we will have more pumped hydro, as well as more novel technologies such as liquid air energy storage. The clause imposes a duty on Ofgem to establish and operate a cap and floor scheme to encourage the development of LDES assets across Great Britain. The clause also defines the minimum eligibility requirements for the scheme: assets will need a minimum power output of 50 MW, and to be able to discharge at full power for eight hours without recharge. Simply meeting those requirements, however, will not guarantee success, and Ofgem will only select the projects that are most useful for system-wide benefits and for consumers. The clause gives the Secretary of State the power to update that definition by regulation. It also defines in broad terms how Ofgem will set the cap and floor, and how it will fund floor payments. This is a really important step. As I say, after 40 years of not building long-duration energy storage in this country, we are incredibly excited to be building it once again. It is also crucial to how we deliver the clean power system in the future. I commend the clause to the Committee.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank all Members for an interesting debate. Amendment 83 was tabled by the hon. Member for West Aberdeenshire and Kincardine. He is ever present in these discussions, but never present—

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  Again, there is a balance to be struck: we do not want to create a fixed set of national guidelines that preclude larger scale projects that would not disrupt existing forestry. I do not want to suggest that every piece of forestry land is the same, and therefore that the guidelines should apply in the same way. None the less, the hon. Gentleman makes an important point, and I will write right to the Committee about it. I say the same to the hon. Member for Ruislip, Northwood and Pinner. As I think he would expect, schemes such as those he mentioned are not intended to be part of these measures However, I will consider whether we can tighten the guidance. The clause is intended to be about using land that, in some cases, already has some of these projects on it, but they cannot export to the grid. Small-scale solar or hydro—those are the sorts of schemes that we see as fitting alongside the wider mission of Forestry England. The hon. Gentleman raised an important point, and I am happy to write to the Committee about it. Question put and agreed to. Clause 24 accordingly ordered to stand part of the Bill. Clause 25 Fees for certain services

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  That is a question that I have asked myself many times over the past nine months. The problem is that we inherited a number of these things from the previous Government and we are working through them. I have regular meetings on the subject. It is really important that we get this right, because we need to strike the balance: ultimately, the community benefit funds will, one way or another, be paid for by bill payers, but we want communities to have a real benefit. The balance has to be right because we are trying to bring down bills for everyone across the country. The Conservative amendment would increase people’s bills, but we are determined to try to bring them down. There is a balance to be struck. We feel that this is an exciting moment to drive community ownership forward. A key aim of Great British Energy will be to drive forward the local power plan, so that communities do not just have benefits from infrastructure, but own some of those benefits. A number of hon. Members across the House have mentioned the real benefits of communities having a stake in projects—they can spend the money on whatever they want to spend it on, rather than on what a scheme might define. The two go hand in hand. The bill discount scheme is an important step to drive forward community acceptance of new network infrastructure. We will develop proposals at pace for the hon. Member for Taunton and Wellington and for communities right across the country on the wider aspects of energy infrastructure. I hope that he will not move his new clause 102.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  The Minister for Energy made it on to this Committee; the shadow Minister for Energy could have made it on to this Committee as well, so my hon. Friend should not withdraw his criticism so hastily. Anyway, he is ever present in these discussions and we enjoy his contributions from beyond the Committee room.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I understand the point that the hon. Lady is making, but a transmission line goes through a significant number of communities in a linear way. For a wind farm, you could draw a line around it and benefit all those communities; a transmission line does not work that way, so we would be giving to a significant number of communities who have maybe one or two pylons near them. That is why we think what is most important is that the households closest to the infrastructure get the direct community benefit. To the point made by my hon. Friend the Member for Basingstoke, this is not the only part of the Bill—we will also have a community benefits fund for infrastructure like substations, where if there is one particular piece of infrastructure built in a community, with all the disruption that goes with building that, wider community benefits come from that as well. It is not one or the other; we are doing both, but in a legislative sense, we only have to legislate on the Bill discount scheme, which is what we are talking about in this amendment. The shadow Minister asked for detail on some important points—including that we should set out in secondary legislation the specific level of benefit and the duration over which it will be paid. Of course, the £250 a year is a “minded to” position that we have come to as a result of the consultation that the previous Government did and the evidence that we have seen, but that will be set out in secondary legislation, which—to the hon. Lady’s point—allows us to alter that over time if the scheme is successful. This is, in some ways, a trial to find out whether the intended policy outcomes result. I hope that for those reasons—I will come to some others—the hon. Member for Hamble Valley might withdraw his amendment. Clause 22 is about creating a financial benefit scheme for eligible households living near certain new or significant increases in network transmission infrastructure, and inserts new sections into the Electricity Act 1989. It empowers the Secretary of State to establish and determine the overall design of the scheme, including qualification criteria, scheme administration, enforcement, and provisions requiring the benefit to be passed on. The “pass-through provision” is outlined in new section 38B(2), and is essential to ensure that the right consumers benefit and to ensure that when an intermediary sits between the electricity supplier and the end user—as happens in some cases—the intermediary will be required to obtain the full benefit and then pass it on to the end user. If this is not complied with, new section 38B(3) allows regulations to provide for the withdrawal or recovery of benefits made to intermediaries. To enforce compliance with the scheme, new section 38C details the enforcement provisions that may be made in regulations, and I hope this answers the shadow Minister’s point around potential fraud in the system and the imposition of penalties that we will make through secondary legislation for instances of regulations not being complied with. Finally, new section 38D deals with provisions around data collection for the purposes of administering the scheme. Overall, it is worth remembering the purpose of this clause: it is to improve the public acceptability of network transmission infrastructure.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  The clause enables the generation of electricity from renewable sources within the public forest estate through inserting a new section into the Forestry Act 1967. Our public forests are a national asset, providing vital environmental, social and economic benefits. They also offer an opportunity to contribute to our clean power by 2030 mission through the development of home-grown renewable electricity proposals. The clause will support this by enabling Forestry England to undertake activity relating to both small and large-scale renewable electricity projects on the public forestry estate. Developments may take place on both forested and non-forested land within the public forest estate. There will, however, be no reduction in size of the estate and sites will be carefully selected. These powers will see us integrating technologies including solar, hydro and wind energy into our natural landscape, accelerating progress to net zero and helping to tackle climate change. Principles underpinning renewable energy developments include ensuring that there is no net loss of woodland area, positive habitat restoration and maintaining a sustainable home-grown timber supply. Forestry England has already developed around 40 small-scale renewable energy installations, but under current legislation any excess electricity that Forestry England generates is wasted and cannot be exported to the grid. That includes rooftop solar and biomass heating to generate energy used at their various visitor centres and offices. The new powers will allow Forestry England to export electricity generated from its own projects to the national grid. Without this change to legislation, there would continue to be an imbalance between English activities in this space and those that take place in Scotland in connection to renewables. Public land being managed by the forestry authorities in Scotland is currently able to be used to generate renewable electricity at commercial scale. I commend the clause to the Committee.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank all hon. Members for their contributions and their recognition, first and foremost, of the important role that long-duration energy storage plays in our system. My hon. Friend the Member for Glasgow East referred to Cruachan—the hollow mountain —and I think there is barely a person in Scotland who has never been on a school trip to there. I would recommend it to anyone; it is a fantastic example of not just how important this is to our energy system, but the engineering that has lasted a significant number of decades and still runs on our system. It plays an incredibly important role. The shadow Minister, the hon. Member for Hamble Valley, raised a number of important questions. Ofgem has consulted on the process for the first window of the cap and floor scheme. It has published detailed, technical guidance on what we would expect those projects to be able to deliver. We, and Ofgem as the regulator, have very deliberately been technology-agnostic to allow more of these innovative projects to come forward. That first round will run its course, but we absolutely would expect that Ofgem and the Government will look at the results of that review and see if there are areas that we might improve on for a further round if that is deemed necessary. We will keep the scheme constantly under review. The cap and floor scheme that Ofgem has run for interconnectors has been an incredibly successful way of delivering value for money for consumers and of giving that revenue certainty over the long term. It is a model that works very well. We will review the projects that move forward in the scheme. As I outlined, there are technical requirements that they must meet, but there will also be a process of ensuring that the projects deliver value for money for consumers. The hon. Member for Taunton and Wellington rightly recognises the role that LDES plays in the mix. We could see some battery projects coming forward in this round. Traditionally, they have not been part of long-duration energy storage, but that technology is moving forward rapidly and some might be able to bid into this process. There are some really innovative projects in that space. It is important to take the question of how we deal with safety risks for batteries in a balanced way. There are safety incidents for a whole range of infrastructure in our country; some get a lot more attention than others in the media, and we need to be careful not to draw more attention to one particular technology at the exclusion of others. But the hon. Member for Taunton and Wellington is right that safety should be paramount in everything we do with every energy system and every part of infrastructure. We are looking at the wider question of how we might introduce additional safety measures on battery storage sites more generally, not just as part of the LDES scheme. The Health and Safety Executive has a key role in regulating battery designers, installers and operators to ensure that they take the necessary measures to ensure health and safety. It is an important step, and one that we take seriously.

• 7 May 2025 · New Nuclear Projects: Wylfa · Hansard source

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  I will come on to the question of siting in a moment. I do not want to be drawn into the particulars of the SMR competition because Ministers are not involved in that at the moment. That process is under way, and we are moving forward with it at pace. First, our targets for clean power are really important. We have set out the clean power mission for 2030, as well as the wider question of decarbonising the economy by 2050, in part because we want to drive momentum in the energy space for investment into sectors like new nuclear. Nuclear power is a crucial part of our toolkit to deliver energy security and decarbonisation, and we have said that our striving towards clean power does not end in 2030. We are in a sprint because that is necessary for our constituents, who are paying far too much for their bills, but the effort will continue long into the 2030s and 2040s. That is when nuclear will particularly play a critical role. Secondly, the new national policy statements reflect a new era of nuclear. Wylfa was, of course, one of eight sites designated for new nuclear in the EN-6 national policy statement, which recognised the site’s future potential. Nothing that we are doing takes away from that crucial future potential, but we recognise that the new range of technologies in nuclear open up a series of sites that are different from the eight that were fixed for larger-scale nuclear in the past. National policy statement EN-7 is all about turbocharging our ambitions for new nuclear: not taking away from sites that were already designated but opening up a range of new sites. It sets out a refreshed planning framework for new nuclear reactors, including, as we have discussed, small and advanced modular reactors. The proposed planning framework is robust, transparent and agile, and it is about empowering developers to identify more sites across the UK. Clearly, those must be set against a very robust set of siting criteria—we are not saying that new nuclear can be built anywhere in the country—but there are a lot more sites for SMRs and AMRs than there were in the past. Thirdly, and this comes to a point the hon. Member for Ynys Môn made about regulation, we have been keen to cut outdated and bureaucratic rules that are holding back investment, but clearly we also have in this country one of the most robust sets of regulations for nuclear, which is important for the public to have confidence in nuclear energy. It is also why we have had decade upon decade of incredibly safe nuclear generation in this country. We will maintain robust regulation, but we will update it to make sure that we are driving forward investment. The Prime Minister recently announced that John Fingleton will lead a nuclear regulatory taskforce to identify opportunities for better regulation in the nuclear space, particularly to speed up delivery. Fourthly, we are tackling one of the biggest reasons for delays and uncertainty head-on by taking bold action on the connections queue in the GB grid. Connections reform is about helping viable clean energy projects connect faster, and it is about giving investors the certainty that, if they come forward to develop a project, they will be able to connect to the grid much faster. Future nuclear projects will benefit from those reforms, freeing up the more than 700 GW currently sitting in the queue and freeing up a lot of that capacity for important future projects. Returning to Wylfa, as the hon. Member for Ynys Môn noted, Great British Nuclear purchased the site alongside the site in Gloucestershire at Oldbury, which gives us a real opportunity to make strategic decisions. Although I hear the call to move faster on those decisions, it is crucial that we take time to make sure that they are fully informed. The question of how we finance any such projects is a critical one for Government to think about. As we fix the foundations of new nuclear in this country, it tees us up for rapid future success. We will make sure that we drive forward the potential for communities to benefit from the supply chains and the construction that go alongside those sites. I reiterate that we are hugely ambitious and excited about the opportunity for new nuclear in this country. I recognise the frustration that the past 14 years of dither and delay have meant that it seems like we are not making as much progress on those nuclear sites as possible. I gently ask that we are given the space and opportunity to drive forward our ambitions for nuclear. After more than nine months, we have demonstrated the pace at which we want to move. We will do the same on nuclear, but we need the time to set that out fully. I close by thanking the hon. Member for Ynys Môn again for securing this important debate. I know she will continue to engage with the Minister for nuclear, my noble Friend Lord Hunt, on these questions. We are ambitious for Wylfa and for other sites. The hon. Lady is right to push because “further and faster” is the mantra of this Government in a whole range of areas. She is also right to highlight the huge potential for her community, but also for our energy security across the country, of moving forward with new nuclear as part of our energy mix. I thank all hon. and right hon. Members for participating in this debate. Question put and agreed to.

• 7 May 2025 · New Nuclear Projects: Wylfa · Hansard source

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  I think they call that my full Sunday title, Sir John. I thank the hon. Member for Ynys Môn (Llinos Medi) for securing this debate and also, as I said to her in the House last week, for her passion on this issue and energy projects more generally. We have debated a number of them in this Chamber over the past few months, and I am grateful for the way in which she does that. This is a very important debate. I want to raise a few general points about the importance that the Government place on nuclear power, and then I will come to some specific points on Wylfa. First, new nuclear will play a critical role in this country’s energy mix by delivering the clean and secure home-grown energy that the country needs. As the hon. Lady said, it is increasingly clear that demand for electricity in this country is only set to increase significantly. Our estimate is that it could double by 2050, but given the current growth rate of things like AI, it is likely to be quite a conservative estimate. Nuclear will play a critical role in that energy mix. As we adapt to a more uncertain world, as we continue to recover from the global pandemic and with all our future growth plans, nuclear’s energy security advantages make it essential. We have been clear that the role of our clean power mission is to push gas off the system, and nuclear will play a critical role alongside renewables. This is not a renewables-only drive; this is about renewables alongside nuclear. As the hon. Lady outlined, Wylfa has huge potential in that energy mix, and we are not overlooking it for a second. I will come back to that point in more detail in a moment, but first I want to say something more generally about Wales. The hon. Lady gave us a useful history of nuclear power. Since the 1950s, Wales has played an important role in delivering nuclear power for the whole country. As she rightly outlined, the expertise and skills in Wales are extraordinary, and there is huge potential to build on those skills. The tens of thousands of jobs that will be created by our new nuclear projects could be spread across the UK, which is why I think the opposition to new nuclear in some quarters—for example, from the SNP in Scotland—is so short-sighted. This is an economic opportunity as well as a key energy driver. Our forthcoming industrial strategy White Paper will say more about how we will support the wider energy industry in Wales and across the country. The hon. Lady outlined the historical role of Wylfa, and she referenced decisions going back to the year after I was born, which brings it into stark contrast. In its 44 years of operation, the former nuclear power station at Wylfa generated enough safe, low-carbon and home-grown electricity to power 2 million homes a year, as well as supporting hundreds of good jobs in local communities. I pay tribute to all those who worked in the former plant for their expertise in running an incredibly safe operation over 40 years.

• 7 May 2025 · New Nuclear Projects: Wylfa · Hansard source

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  I thank my hon. Friend, not least because that is the very next part of my speech, so it is excellent timing. The history of Wylfa is important to our energy story, but so is the future. The potential of the site has long been recognised. I recognise the point made by the hon. Member for Ynys Môn that, after several years of hard work, the withdrawal in 2020 of Horizon’s plans to develop a new large-scale nuclear power station at the site was a setback for the whole country, but particularly for the local community. She rightly outlined the role that such projects can play in developing skills and good, very well-paid jobs, which often have salaries considerably above the average. It is really important that we move those projects forward. I will reflect on what my hon. Friend the Member for Cardiff West (Mr Barros-Curtis) said. It has been nine months since this Government came into power, and our in-tray has had no shortage of issues from the previous Government to deal with—I note that no Conservative Members are present at this debate—but delay and dither is by far the biggest issue that we have had to deal with in our energy system. We have not been moving forward at pace on several key decisions that were taken, and I am afraid that Horizon is just one of many examples of delays and setbacks in nuclear project development since 2010. It is a real disappointment that not a single nuclear power station was completed, or even progressed significantly, in that period, and the previous Government should take responsibility. Too many proposals have fallen by the wayside, leading to the loss of huge opportunities not only for our energy system but for local economies right across the country. We are determined—I say this very clearly—to enable faster and more sustainable nuclear project development around the country. We have been clear that we are in favour of new nuclear. We want to create an investment landscape in which investors come to invest in nuclear projects in this country, and in which we give the certainty that nuclear will play a key part in our energy mix long into the future. We are taking important steps to kick-start new nuclear in Britain by working closely with EDF to get Hinkley Point C over the line, while Sizewell C is making good progress. However, the final investment decision is for the spending review. Great British Nuclear, the Government’s expert nuclear delivery body, is driving forward the SMR competition for UK deployment. Final decisions on that competition will be taken very soon. I will highlight other actions we are taking to make progress.

• 7 May 2025 · New Nuclear Projects: Wylfa · Hansard source

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  I thank the right hon. Lady for that point. Trawsfynydd—I think that is the correct pronunciation —is potentially also an important site for future nuclear, but she is right to highlight decommissioning. I am sure the Minister for nuclear, my noble Friend Lord Hunt, will be happy to discuss this in more detail, but clearly decommissioning is important. It creates a lot of jobs and skills, as well as developing future economic opportunities—it might be new nuclear, but it might also be other things. I am happy to volunteer my noble Friend to speak to the right hon. Lady about this, but it is certainly something we take very seriously. With something like nuclear power, we also have a responsibility to decommission it responsibly, which is part of the story of nuclear, alongside the years of generating.

• 6 May 2025 · Energy Resilience · Hansard source

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  Thank you, Mr Efford, for chairing this debate. I thank my hon. Friend the Member for Worcester (Tom Collins) for securing it and for all his experience in this area, which is of great value to me and the Government. It is an important topic. I will speak more broadly about the issue of energy resilience, and then come to some of the specific points that he raised. As I said in the House last week, maintaining this country’s energy resilience is a key priority for the Government. As my hon. Friend rightly pointed out, it goes hand in hand with us taking, as fast as possible, the opportunities from new technologies on our path to net zero. In the context of the widespread power outages experienced across the Iberian peninsula last week, this debate is particularly timely. I praise my hon. Friend for his significant foresight in securing the debate many weeks before both of the incidents that he referred to; that is a real skill that we might come back to. I will repeat what I said in the House last week about all those who were affected. We clearly saw significant disruption in Spain and Portugal on our television screens here, but I was glad that power was restored remarkably quickly. My thoughts are with all those who were affected, and with those who are now carrying out the work to investigate exactly what happened. A significant number of unfounded claims and speculations have been shared by Members of this House, and across social media, about the cause of the disruption. Clearly, given it was such a significant failure, it will take time for the Spanish network operator to carry out an investigation into its exact cause, and it is important that we wait for that statement before rushing to any kind of judgment. Turning back to the UK, Great Britain has a highly resilient energy network, largely because of how diverse it is. In recent years, although we have seen high energy prices, our energy supply has remained reliable because we are supplied from more than one source, including the UK continental shelf, our long-term energy partners such as Norway, international markets for liquefied natural gas and interconnectors to the European continent. That means that we are not reliant on any one particular supplier for security of energy supplies, and we are confident that the system operators have the tools that they need to effectively balance supply and demand in a wide range of scenarios all year round. As my hon. Friend set out, storage is also an important flexibility tool in the GB system, allowing us to respond to short-term changes in supply and demand, especially during colder months. To further protect consumers, Ofgem sets annual targets on customer interruptions and customer minutes lost, which means that companies themselves are directly incentivised to reduce the number of interruptions, no matter the cause. Of course, I work closely with the National Energy System Operator and Ofgem to ensure that resilience is built into our networks wherever possible. The hon. Member for Strangford (Jim Shannon), who is an ever-present voice in these debates, is no longer in his place, but I wanted to give my regular response to him: although I take the issues of energy in Northern Ireland very seriously, they are devolved to the Northern Ireland Executive and not my immediate responsibility. I think he probably knew that that was what I was going to say anyway. My hon. Friend the Member for Worcester raised our journey to net zero and what we need to do to ensure resilience as the system decarbonises. We are obviously committed to maintaining current levels of resilience and reliability through collaborative work with industry, the regulator and other stakeholders, and there is a variety of ways in which we can do that. Obviously, the most common cause of any disruption in our network, here in the UK, is storms and weather events. We have seen lessons learned from storms such as Storm Arwen, which led us to introduce a number of resilience measures. There is also the role of critical new technologies, such as hydrogen, which my hon. Friend raised throughout his speech and can be used in energy resilience. He is correct, of course, that we now have an opportunity to design a clean energy system, and that is why NESO is carrying out new functions that will shape resilience policies on our journey to clean power. I will briefly talk about what we learn from incidents. Our system is remarkably resilient, but, of course, no system is immune from disruption entirely, so we must plan for all eventualities and learn from incidents when they happen. We do that through working closely with the energy industry to ensure that robust plans are in place. We learn from every incident, in strong partnership with others. My hon. Friend rightly raised the dependencies in our energy system. The recent example from the Iberian peninsula really brought home just how much our lives are dependent on electricity in one form or another. The point about our telecoms and communications systems, which are so reliant on mains electricity now, is really important for us to consider in these resilience plans; we must make sure that we have back-ups in place. That complex interdependency was also demonstrated by the recent fire at the substation in Hayes, which resulted in the closure of Heathrow airport. Such incidents are incredibly rare, but they occasionally occur in a complex system with many thousands of assets, such as ours. The Department for Energy Security and Net Zero continues to lead cross-Government work with the Cabinet Office to enhance the resilience of all critical sectors to major energy risks, such as those listed on the national risk register. Events in the Iberian peninsula last week, as well as those in Heathrow in March, highlight just how crucial electricity is to our wider system. My hon. Friend the Member for Worcester was right to point out that, as we move to a clean power system, the question of storage will be key. That is why I was delighted the Government announced the funding to build the first long-duration energy storage assets in more than 40 years. We have worked to set out the cap and floor scheme so that major infrastructure projects can be delivered. We look forward to those projects coming forward in due course. My hon. Friend highlighted the role of hydrogen. Although I am not directly responsible for hydrogen, I am as excited by the opportunities it presents as my colleagues in the Department are. It can play a key role in our mission to make the UK a clean energy superpower by delivering new clean energy industries. Although it can provide near-zero emission hydrogen, particularly green hydrogen, as my hon. Friend said, it is not yet available at scale, but there is a real opportunity. He made the point about trying to bring people together to recognise that this is a really exciting opportunity and moment. It is everything that the Government are about through our approach to delivering the clean power mission and unlocking the potential of these more nascent technologies to provide significant resource into the future. That is an important point to put on the record. We are very supportive of what hydrogen can do in our system in future. This is a very important debate. The question of energy resilience is one that we will return to, quite rightly, because it is never a settled subject. The Government have credible plans in place that we test robustly at regular intervals to make sure that, in the unlikely event they are needed, they work as we intend. It is clearly important that we revisit them regularly to make sure they are as detailed as possible. I reiterate the point that I made in the House of Commons last week: the UK has a secure and resilient energy supply. Our mission to make Britain a clean energy superpower is the best route to improve our energy security into the future. When we have experienced incidents that threaten our energy resilience, we have used those as opportunities to prepare better for future threats. Preparing for outages is an ongoing task that Government, industry and the regulator collaborate on. We are also taking this opportunity to build not just the clean power system that will deliver climate leadership, energy security and bring down bills in the long term, but the storage assets and everything necessary to make sure we can capture clean power and utilise it when we need it most. Once again, I thank my hon. Friend the Member for Worcester not just for securing this timely debate and the points that he has made on storage and on hydrogen in particular, but for all the work that he is doing generally in Parliament on these really important issues. As we progress towards clean power by 2030 at pace, rapidly deploying new infrastructure, we will continue to work with all those in the energy sector to maintain the high levels of resilience and security that this country needs. Question put and agreed to.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  I will not be drawn on an individual commercial arrangement that a project may or may not have. As I have outlined, in any investment case the Government will carry out a number of checks, one of which will always be a national security check, so these questions will be looked at. I reject the suggestion that there would somehow be an on/off switch—that is not the position that the Government would take—but we look at all these investment decisions individually, and that is not for me to do on the Floor of the House.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  Indeed. I apologise and will prioritise it for my weekend reading. What I did see is that the Tony Blair Institute outlined very clearly its support for clean power as an important transition for this country. The shadow Minister earlier said that this was all about wind and solar, but that has never been the position for this transition. Nuclear will play a critical role, as will carbon capture, usage and storage as well as hydrogen. All of that was outlined in Tony Blair’s report.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  I would first say that fire is a risk in a whole range of scenarios, and I do not think we should jump to the view that because there have been some incidents in one particular piece of infrastructure it is somehow inherent in the infrastructure. It is important to say that batteries will play a critical role in our future energy system, but we obviously take issues of safety very seriously and the hon. Gentleman is right to raise them. The Health and Safety Executive has a role in this and the planning system also has a role in considering some of the fire risks, but we will keep this under review, particularly as the number of battery schemes increases.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  My hon. Friend always makes his point in his particular style—perhaps a more political style than I will use from this Dispatch Box, but Inspector Clouseau is a new one that I will certainly add to my list. My hon. Friend raises an important point. The broader point here is that we do not know the causes of the outages, and any sensible Member of this House will, I am sure, await the full response of any investigation that will be carried out by the relevant authorities in this case, rather than just jumping to speculation. As my hon. Friend says, the rush to conclusions betrays the truth of the matter, which is that many hon. Members in this place have an ideological, extreme and damaging opposition to clean energy. That includes Members in the party of the hon. Member for Boston and Skegness (Richard Tice) and other parties, including the Conservatives, who defended this for such a long time and now seem to be working together against it. They want to leave us colder, poorer and in the pocket of Putin. We will not accept that.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  I am not aware of the specific circumstances mentioned at the end of the right hon. Gentleman’s question, but I am happy to look into that particular case. The broader point is that we do not see licensing for new oil and gas and fracking as part of our future, and there is a presumption against fracking in other parts of the UK as well. We have a resilient energy system that does not require that. I will, however, take away the point he raises and write to him.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  I thank the Chair of the Energy Security and Net Zero Committee for his question. Let me reiterate the point that he made and that I will, I suspect, make a number of times during this statement. I will not be drawn on unfounded claims and speculation about what the causes might be. It is rightly for the authorities in Spain and Portugal to carry out the investigations, exactly as it would be if any incident happened here, and for them to share that information. Of course we will be in close contact with them about that, but it is far too early to make any hasty conclusions, particularly when they are based on unfounded claims. The broader point that my hon. Friend makes is right: constituents right across the country continue to pay too much for their electricity. That is because of the role of gas in setting the price in our system. The more renewables that we build, the more that we push gas off as the marginal price setter, the more that we bring those bills down, and also the more that we make sure that they are not subject to the volatility of the fossil fuel markets as they are at the moment. My hon. Friend is right: this is the right journey for us to be on; it is right for the British economy; and it is right for energy security. The Opposition parties should support that.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  My hon. Friend is perhaps referring to the most recent situation at Heathrow. The Secretary of State commissioned a report after that incident to find out what the causes were, and that report is due. Airports in this country are private businesses, but given that they are clearly critical national infrastructure, the Government have a role in ensuring that they function. If there are any lessons we can learn, it will be invaluable for us to learn them, but I do not want to be drawn on the conclusions of a report that the Government have not yet seen.

• 30 Apr 2025 · Energy Grid Resilience · Hansard source

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  Madam Deputy Speaker, I think you need to make a ruling on drawing marathon-related puns in the House to an end, but the subject is a really important one. Of course, that is why we are in this sprint towards building more network infrastructure— [ Interruption. ] Thank you. There are two really important things to recognise with our network. First, it cannot stay in the state that it is in forever; it needs upgrading. Secondly, the demand that we fully expect to see—potentially a doubling by 2050, and maybe even more than that—means that we will have to build more grid to bring the power to where it is necessary to deliver economic growth. It is right that we move forward with that, but everyone will need to recognise that, to deliver that system—whether we are delivering clean power or not—the network is necessary, and stuff does have to get built somewhere. The Government are committed to building it and the Conservative party is committed to opposing it.