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Question
The Secretary of State's announcement has boosted profits for large energy companies but will be paid for by consumers through their bills. Prices have increased significantly compared to last year, with the highest costs seen in a decade. The shadow Secretary questions why building wind farms suddenly became so expensive and argues that full system costs should be considered instead of just levelised cost of electricity (LCOE).
Minister reply
The Minister responds by emphasising the importance of offshore wind as cheaper than new gas plants according to LCOE metrics. He dismisses concerns about higher prices, stating that this is due to extending contracts and providing financial flexibility for developers. Furthermore, he highlights the need for continued investment in renewables to ensure energy security and job creation across the country.
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Question
The Secretary of State deserves enormous congratulations on moving from the botched auction round 5 to the record success of auction round 7. The strike price will see no increase in consumer bills and is 40% cheaper than gas. Does he agree that demonstrates once and for all that renewable energy is good for bills?
Minister reply
My hon. Friend is absolutely right, people can have incredibly short memories in this House. We are only five years on from Russia's invasion of Ukraine where we know the importance of home-grown clean power to take back control.
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Question
Welcomes the results of the AR7 allocation which protects working families from volatile fossil fuel prices set by foreign powers. Relying on America or Russia to keep the lights on puts us all at risk, how will the Government commit to accelerating negotiations to re-engage with the EU’s internal energy market?
Minister reply
AR8 is important and we absolutely want to stick to the timetable, and we continue to look at proposals from him and others on doing everything we can to cut the cost of electricity.
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Question
The east coast offshore wind industry is strengthened through today’s announcement, how does it benefit growth in the supply chain and deliver new industrial investment?
Minister reply
She makes serious and important points about the future. Indeed, she is a brilliant champion for this industry and for her area, because there are huge opportunities for Grimsby as a result of this auction.
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Question
How are figures announced today compatible with the Climate Change Committee’s seventh carbon budget last year which said that the cost of offshore wind at 2023 prices would be £37.80 per megawatt-hour in 2035? Is this not a rip-off of consumers?
Minister reply
The figures we have published today show the costs of building new gas-fired power stations which are more expensive to build and operate than offshore wind announced today.
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Question
In particular, how is he ensuring that as much as possible of the technology for these excellent projects will be made in the UK and protecting them, as well as existing infrastructure, from foreign actors?
Minister reply
The clean industry bonus is important to lever in massive amounts of private investment including in supply chains.
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Question
We understand gas prices go up and down, but they do come down. We are now stuck at the top of this rollercoaster he has talked about for 20 years. How is that going to reduce bills?
Minister reply
Harriet Cross' question was not fully answered by Ed Miliband in the provided transcript.
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Question
I congratulate my right hon. Friend on structuring the auction to drive down the strike price and reduce consumer energy bills. It is worth reiterating that this means renewable energy will be 40% cheaper than gas. Importantly, though, this is also about creating jobs, specifically in coastal industries.
Minister reply
My hon. Friend speaks very well on these issues, and she is absolutely right to ask that question. The great thing about the clean industry bonus is that for the first time we are rewarding manufacturers for investing in Britain.
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Question
I welcome the Secretary of State’s statement, but it is important that my constituents can feel the effect in their pockets. Does he accept that the biggest reason why people are not benefiting from cheap renewables is that electricity prices are still set by gas most of the time, and what steps is he taking to break that link, beyond simply building more renewables?
Minister reply
That is an incredibly important point, and the great thing about clean power 2030 is that it will mean gas sets the price much less of the time. With contracts for difference, the reduction in prices feeds through to bills.
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Question
This is a fantastic announcement for the UK, and it is also fantastic to hear that the Secretary of State is already preparing for AR8. Can he assure the House that his Department is going to focus as much on the mid-term and long-term storage that we need to support all this growth in generation?
Minister reply
My hon. Friend makes an important point. Battery storage and long-duration storage, for example, are things that we are working on as a Department, as is Ofgem—they are crucial parts of the jigsaw.
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Question
The Secretary of State is going to pay a floating wind farm £216 per megawatt-hour. Can he explain how that will lower fuel prices for my constituents?
Minister reply
With the greatest respect, I trust our analysts in my Department more than I do the hon. Gentleman when it comes to arithmetic.
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Question
As co-chair of the all-party parliamentary group for the Celtic sea, I welcome the floating offshore wind test and demo model awarded a contract for difference in the Celtic sea. It will open up the Celtics sea to investment. There are other test and demo models in the Celtic sea. What can the Secretary of State say about the role of GB Energy to kick-start these test and demo models, as well as supply chains?
Minister reply
My hon. Friend makes an important point. GB Energy has invested in the Pentland project in Scotland. GB Energy is operationally independent from us, so it makes its own decisions, but it shows that combined with the CfD, GB Energy can play a nurturing role for this technology.
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Question
The price that has been fixed today is higher than gas with the reduction of carbon tax and higher than the average for gas for all of last year. South Shropshire residents’ energy bills have been going up since the Secretary of State has been in post. Can he promise when energy bills will come down for my constituents?
Minister reply
We will be taking £150 off bills in April, but let me refer the hon. Gentleman to a report produced by the Energy & Climate Intelligence Unit, which explains that having renewables on the system means that we do not pay for expensive gas whose price is much higher than the average wholesale price.
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Question
I congratulate my right hon. Friend on securing this huge offshore wind investment, which will bring good jobs and opportunities for businesses to south-west Wales, as well as reducing bills and increasing energy security. Will he liaise with appropriate colleagues to ensure that the necessary investment is made in the port of Port Talbot, and can he give any indication of the construction time in the Celtic sea and the proposed time for the delivery of electricity to the grid?
Minister reply
I assure my hon. Friend, who is a fantastic champion on these issues, that we are very much engaged with Port Talbot and the port on this issue, and with Associated British Ports.
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Question
As a former offshore wind engineer, I am delighted that the Government have secured record offshore wind capacity, and I say, genuinely, “Well done.” However, what is even cheaper than renewable energy is the energy that we do not need to use because our homes are more energy-efficient, so the Government’s scrapping of an energy efficiency programme last year without announcing what would replace it was less welcome. Can the Secretary of State assure my constituents that when the long-delayed warm homes plan does emerge, it will ensure that everyone can have a comfortable, warm, energy-efficient, affordable home?
Minister reply
I am grateful for the tone of the hon. Lady’s question. I will return the compliment, and thank her for her kind words about this auction round.
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Question
This news is very welcome to those of us who believe in a swift transition away from fossil fuels. Can the Secretary of State confirm that as a result of today’s auction round, supply chain jobs, including those in places such as Hayle and Falmouth in Cornwall, will remain at the top of the Government’s agenda?
Minister reply
Yes. My hon. Friend, who speaks so well on these issues, is absolutely right.
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Question
Can the Secretary of State give a clear assurance that not a single offshore wind project procured in this round will be built with technology made by Chinese slaves?
Minister reply
We will certainly not be doing that. We want as much as possible of this to be built in Britain.
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Question
I strongly welcome my right hon. Friend’s statement. The port of Leith in my constituency is well placed to support logistics and manufacturing for Berwick Bank, which has been successful today. Will my right hon. Friend meet me to discuss ensuring that every job possible is secured as a result of this investment?
Minister reply
I look forward to having conversations with my hon. Friend.
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Question
What progress is being made on upgrading the grid, and what timeline has my right hon. Friend for conveying electricity to people who need it?
Minister reply
NESO has undertaken the biggest overhaul of the grid we have seen in a long time, reordering the queue to ensure that we procure power where it is needed most.
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Question
Does the Secretary of State agree that securing over 8 GW of wind power will help constituents have lower bills in the future?
Minister reply
My hon. Friend is absolutely right; this initiative is crucial for jobs, growth, and energy security.
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Luke Myer
Lab
Middlesbrough South and East Cleveland
Question
What commitment will the Secretary of State make to ensure that British steel is used in turbine projects?
Minister reply
I am setting a very clear expectation on this, and I expect developers to do everything they can to meet it.
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Question
May the Secretary of State thank him for the investment in north Wales and join her in meeting apprentices at Coleg Llandrillo?
Minister reply
I would really like to do that. The Prime Minister, Chancellor, and First Minister of Wales had a visit to north Wales when we announced small modular reactors there.
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Question
How will the Secretary of State ensure young people now at school and in college benefit with apprenticeships and training?
Minister reply
We will be setting up five technical excellence colleges in clean energy to train young people for this future.
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Question
Could he update the House on what his Department is doing about emerging offshore technologies such as offshore thermal, offshore wave and offshore tidal?
Minister reply
Tidal schemes will be in the next auction pot, and we are continuing to look at how we can deploy more of them.
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Question
Can my right hon. Friend confirm that this announcement will secure our energy future and ensure that such a catastrophic failure can never happen again?
Minister reply
This is about energy sovereignty and security in an uncertain world; the Opposition are surrendering our security.
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Question
Will the Energy Secretary ensure that we do not rest on our laurels, but continue to innovate in auction design?
Minister reply
We changed the auction design to see bid stacks and increase competitive tension for better deals; we should keep innovating.
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Question
Does the Secretary of State believe that the shadow Secretary of State may be planning to join another political party?
Minister reply
I will let the right hon. Member speculate on her own future; it is sad how the Conservatives have taken a direction.