Commons Sense

House of Commons · Ministers' Questions

Energy Transition Projects: Scotland

Tuesday 4 July 2023 · 5 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 4 Not answered 0

Key points

  • The Secretary of State welcomes the development of tidal power in the current CfD round and looks forward to the industry's expansion in the future.
  • The UK Government is keen to support pumped storage hydro projects, which are efficient for large-scale energy storage.
  • Grid capacity investment across Scotland, Wales, England, and Northern Ireland is a priority for the UK Government to support energy transition projects.

Topics (select to filter)

Questions & Answers

Q1 Ian Blackford SNP
Climate Energy
Context

The questioner thanks the Secretary for previous support and seeks a commitment to a clear pathway for true commercial-scale development of tidal stream energy.

Question

I thank the Secretary of State for that response, particularly in relation to CfDs. Will he commit today to a clear pathway for the true commercial-scale development of tidal stream energy? A ringfence in the CfD auction is welcome, but it is only scratching the surface of what the industry can deliver. Investors in projects are stalling, as they need long-term visibility.

Answer from Grant Shapps

Fortunately, the answer is pretty straightforward. As the right hon. Gentleman mentioned, we are doing tidal power in this CfD round. That is to be welcomed and we look forward to this industry expanding in the future, as some of the technicalities and technical difficulties are resolved.

Partly answered

Not addressed: Commitment for a clear pathway and increase in ringfenced budget

How: Welcomed, Resolved

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Q2 Philippa Whitford SNP
Climate Energy
Context

The questioner asks why the UK Government is not supporting investment in critical infrastructure such as pumped storage hydro.

Question

Energy storage is vital to managing demand as we switch to renewable electricity. Pumped storage hydro is the most efficient large-scale storage method. UK capacity could be more than doubled by six projects across Scotland that have been shovel ready for more than five years. They take a long time to build, so why are the UK Government not supporting investment in infrastructure that is critical for our future energy security?

Answer from Grant Shapps

I have discussed this matter with SSE in relation to that particular hydro storage project, and my hon. Friend the Under-Secretary of State met MSPs yesterday to discuss the subject as well. We are keen to have this kind of hydro storage, which is why our plans allow for it to be taken forward.

Partly answered

Not addressed: Supporting investment in pumped storage hydro projects

How: Plans, Forward

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Q3 Virginia Crosbie
Economy Wales Energy
Context

The questioner asks about UK Government investments in grid capacity in Wales, which is crucial for supporting energy transition projects.

Question

It is good to hear that the Secretary of State is supporting the economy in Scotland, but my question is: how are the UK Government investing in grid capacity in Wales? In Wales, such investment is crucial if we are to support energy transition projects such as the Holyhead hydrogen hub, Minesto, Morlais, BP Mona, Lightsource BP and, of course, new nuclear at Wylfa.

Answer from Grant Shapps

Grid capacity in Scotland, Wales, England and Northern Ireland is at the top of our list. The Winser review has done a lot of work to look at how we can speed up the delivery of that capacity, given the big transition that is going on and this country's big lead in renewables, which makes that necessary.

Partly answered

Not addressed: Investing in grid capacity in Wales for supporting energy transition projects

How: Winser Review, Speed Up Delivery

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Q4 Alan Brown SNP
Energy
Context

The questioner expresses frustration over lack of proper discussions about cap and floor mechanisms related to pumped storage hydro projects.

Question

On pumped storage hydro, it is as though the Secretary of State just does not get it. It increases energy resilience and would reduce the £4.2 billion balancing costs that are getting paid out at the moment. The 1.5 GW Coire Glas scheme can be delivered in seven years, and it would power 3 million homes for a 24-hour period. The Government have found £700 million for Sizewell C and they have implemented cap and floor mechanisms for interconnectors, so why is he not having proper discussions with SSE about a cap and floor mechanism?

Answer from Grant Shapps

The Secretary of State does in fact get it, because we support the idea of having things such as hydro power. Again, I have to say that there is a choice where taxpayers' money is spent. It has to be done competitively in the round.

Partly answered

Not addressed: Proper discussions with SSE about cap and floor mechanisms

How: Taxpayers' Money, Competitive

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Q5 Alan Brown SNP
Climate
Context

The questioner questions the Secretary's understanding and seeks an announcement on track 2 clusters for Acorn, a carbon capture and storage project.

Question

The Secretary of State has proved he still does not get it—he is not having proper discussions with SSE. If we move to carbon capture and storage, the Climate Change Committee's progress report identified “risks” and “significant risks” associated with industrial clusters and carbon dioxide storage, which proves it is nonsensical to have Acorn as a reserve. When will the Government announce the track 2 clusters and provide parity for Acorn? When does he envisage Acorn starting construction?

Answer from Grant Shapps

As the hon. Gentleman knows, we have already pumped £40 million into Acorn. It is on the reserve list. He asks when; the answer is this year for track 2 and track 1 expansion.

Answered
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