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Marine Renewables: Government Support for Commercial Roll-out — [Judith Cummins in the Chair]
08 December 2020
Lead MP
Alistair Carmichael
Orkney and Shetland
Lib Dem
Responding Minister
Kwasi Kwarteng
Tags
TaxationClimate
Word Count: 4061
Other Contributors: 5
At a Glance
Alistair Carmichael raised concerns about marine renewables: government support for commercial roll-out — [judith cummins in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The MP asks the government to create a separate allocation within the next Contract for Difference (CfD) round specifically for wave and tidal technologies to ensure they can attract investment and not interfere with other renewable objectives. He also suggests implementing an Innovation Power Purchase Agreement to support technology developers unable to participate in the CfD process.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The MP is concerned about the need for government support to turn technical feasibility into commercial application in the marine energy sector. He highlights that the UK has a unique opportunity to lead globally in wave and tidal power but needs targeted financial assistance to avoid falling behind other nations. The industry currently includes 22 tidal stream and 23 wave developers with over £500 million of private investment, expected to deliver up to £1.4 billion gross value added by 2030 for tidal streams and £4 billion by 2040 for waves.
Ben Lake
PC
Ceredigion Preseli
Asked if the potential of marine energy to lead a new green industrial revolution in south-west Wales should be recognised.
Jim Shannon
DUP
Strangford
As an Orangeman, Jim Shannon supports the green revolution and highlights the potential of tidal energy projects like the pilot scheme in Strangford Lough. The MP agrees that marine energy has significant potential for job creation and economic growth, mentioning specific examples from his constituency. He supports the idea of targeted government support to help the industry overcome current challenges.
Grateful for securing this debate, Richard Graham as chairman of the all-party parliamentary group on marine energy and tidal lagoons emphasises the potential across UK, with examples from Wales such as Bardsey becoming the world's first island powered by tidal stream. Asked if the Minister could consider an innovative purchasing agreement proposed by the industry that would allow a tax reduction basis but with nothing rewarded until delivery of energy is ensured.
Calling for practical steps to build investor confidence, Stephen Crabb highlights the need for development in marine renewables in his constituency of Pembrokeshire. Expressed excitement about marine energy developments off the west Wales coast, highlighted the vulnerability of constituencies dependent on oil refining to climate change-related economic shifts, and called for government assistance in creating new clean technology jobs.
Thanked the right hon. Member for securing the debate and agreed that projects such as Morlais and Minesto need bespoke Government support packages.
Government Response
Kwasi Kwarteng
Government Response
I am delighted to respond to the debate and address concerns raised by Members. The Minister acknowledges the right hon. Member for Orkney and Shetland's points about pot structure in CfD round and expresses sympathy towards marine energy projects, especially tidal projects. He notes that public money must be well considered and challenges industry to show how costs can come down. Government remains committed to renewable energy, highlighting innovation as key to achieving net zero by 2050. The Minister also acknowledges the levelling-up agenda's importance for economic opportunities across the country. He is willing to engage with communities on marine energy and promises to look into potential movement on auction and tax treatment.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.