Offshore Wind Contracts

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Critiques the auction's outcome as an economic self-harm, citing higher bills and weakened security. Also questions why warnings were ignored and if the government learned from Ireland’s successful auction.

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Asks about steps being taken to ensure floating offshore wind projects bid in allocation round 6.

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Questions why only 3.7 GW was achieved compared to previous rounds, and calls for urgent meetings with industry.

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Asks if any completed wind capacity requires grid connection.

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Expresses concern about the supply chain impacts of the auction's outcome and questions projects built on CfD securities.

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West Somerset, as the Minister knows, is ideal for offshore wind. I am interested to know why people did not bid in this round. What were their reasons? What can the Government do to learn the lessons of this round so that people like my hon. Friend the Member for North Devon (Selaine Saxby) can make sure that people are bidding in the next round?

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The wind farm off Brighton has probably become as iconic as the pier itself, but the reality is that the Government’s failure will delay the construction of more of these beautiful installations around our coast. Is this failure not also a failure of the market-based private investment system that this Government are determined to pursue, rather than a publicly owned and co-ordinated building programme that can work alongside private investment so that we no longer have this failure where nobody bids?

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Offshore wind plays, and will continue to play, a key strategic role in enhancing energy security, achieving net zero and revitalising coastal communities such as Lowestoft. To get back on track, can my right hon. Friend confirm that the criteria applying to round 6 will take account of current economic realities, that appropriate fiscal measures are being considered ahead of the autumn statement and that specific focus will be given to enhancing local supply chains?

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I congratulate the Minister on turning complacency and chutzpah into a new art form. The ineptitude of Tory Ministers means that this latest CfD round saw the smallest auction return since 2015—a failing that was entirely avoidable. How will he ensure that the UK delivers the 35 GW of new offshore wind capacity that is needed in just six years? Why did Ministers yet again fail to heed the warnings from industry and experts in advance?

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I thank the Minister for including geothermal projects in allocation round 5, as that is very welcome. However, I echo everything my hon. Friend the Member for North Devon (Selaine Saxby) says about the Celtic sea projects. What will we do differently in round 6? What advice would he give to those in the supply chains, specifically ports, that are trying to submit applications for the FLOWMIS—floating offshore wind manufacturing investment scheme—funding? What conversations has he had about grid capacity, to ensure that all of this eventually runs smoothly?

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This is an embarrassment for the Government and shows that we are falling further and further behind in the race for green jobs internationally. We have the lowest growth in these industries among the eight biggest economies. Should the Government not be focusing much more on broadening and increasing the capacity of offshore wind, rather than not listening to industry and making fatal errors?

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Delivering on the floating offshore wind project in the Celtic sea is vital for our energy security and decarbonisation. Does the Minister agree that we now need to bolster confidence in this emerging industry? There are two things he can do. Does he agree that a successful allocation of FLOWMIS money to the south Wales ports in order to get this industry moving is vital? Does he also agree that we need to ensure that the Crown Estate’s leasing round at the end of the year is done successfully, but with more than 4 GW of visibility, in order to send a strong market signal to the industry to invest?

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The Government’s obsession with oil and gas has left us in this mess. The Department has prioritised new oil and gas licences over support for wind power, which flies in the face of our climate change commitments and our responsibilities to UK citizens—our constituents—to keep energy prices low. Oil and gas will always be more expensive than wind energy. When will the Minister fill the gap of 5 GW of offshore wind that we have now missed out on, which would have saved consumers £2 billion a year? I am not talking about the sixth auction round—I am talking about the fifth one, where we have missed out now.

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The Government have long been warned that their focus on CfDs as the primary mechanism for financing new renewables risks undermining investor confidence in infrastructure assets with long lifespans but significant up-front capital costs, such as nuclear and tidal range generation. Following the Government’s decision to employ a regulated asset base model to support the development of new nuclear, will the Minister now commit to looking urgently at the optimum financial model for new tidal range projects, which could make a crucial contribution to the future UK energy mix?

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On Teesside, we have been promised thousands of jobs in the offshore wind industry, but investors are getting a little nervous as a direct result of Government failures to provide the right business environment. What will the Minister do to get the business environment right to deliver the jobs we have been promised, which are being put in jeopardy by Government failures?

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I do not agree with the policy that the Minister pursues. His net zero policy is disastrous and has been costly in terms of electricity prices and future planning.

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Last week, the think-tank Common Wealth made the critical point that reliance on market coordination leaves the transition vulnerable to the demands of private capital.

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Scottish Renewables has said that the results are a major blow to the renewables sector in Scotland and should serve as an indication that urgent reform is needed.

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This setback to the Erebus project in south-west Wales is deeply disappointing.

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I feel as if I am almost taking my life in my hands, but I do want to commend the Minister for one small piece of good news in this round.

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Even with a higher price, offshore wind would help to slash bills.

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Last November, the Government paid up to £700 million to China General Nuclear Corporation to buy out China’s state-owned nuclear power enterprise from Sizewell C.

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The Windsor report last month provides a sobering analysis about the scale of new electricity transmission infrastructure required to serve increased renewable generation and consumer demand in a very short space of time.

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In light of the disappointing results of the CfD AR5 auction, will Government revisit the exclusion of Northern Ireland renewable projects from the scheme?