UK Parliament / Open data

Energy Security

Proceeding contribution from Alan Duncan (Conservative) in the House of Commons on Monday, 30 June 2008. It occurred during Opposition day on Energy Security.
I understand the hon. Gentleman's concern and I know that exchanges between him and the Secretary of State about that have taken place in the past. I think that the Secretary of State undertook to write to him. However, the Government have not capitalised on our extraordinary advantages. For example, I would like an explanation of why their much vaunted marine renewables deployment fund has neither attracted significant interest nor distributed any funding in more than three years. It is all the more perplexing because Britain has more businesses engaged in developing marine energy devices than any other country. Why have the Government created eligibility criteria that are so complicated that companies simply cannot find the wherewithal to apply? Furthermore, as was said earlier, we all recognise that coal could play a fundamental role in our future energy security. However, where we could have expected leadership, there has been muddled thinking. The Government's delays have resulted in our one developed carbon capture programme closing down. What has happened to it? BP is working to develop it in Abu Dhabi, so a great British scientific breakthrough has been lost to this country. The Government's lack of vision has resulted in only one carbon capture and storage pilot project, whereas we know that there will be demand for more new coal-fired plants over the next few years. Are they to go ahead without CCS? The right and sensible way forward would be for the Government to accept our proposals for three CCS projects and move towards maximum limits on emissions so that the industry has absolute clarity about how it needs to change. There is also the question of storage. Our onshore gas storage is currently among the lowest in Europe. Some European countries are required to retain 80 days' worth of gas, but we have the lowest storage, yet we are at the end of the pipe. Our position contrasts starkly with that in the winter of 2005-06, when we came within days of running out of gas. For legitimate reasons historically, which are associated largely with North sea production, we have not developed the sort of onshore storage infrastructure that is normal elsewhere. That must change. I accept the contribution that new pipelines and liquefied natural gas can make, but as our domestic gas supplies dwindle, we need to be sure that we have sufficient supplies for several weeks, not just days. We tabled a new clause to the Energy Bill that would require the Secretary of State to make an annual statement on his assessment of our long-term storage needs and the steps that the Government were taking to deliver them. The Government's refusal to accept the new clause again makes us fear that they will not take the necessary steps to ensure our long-term energy security. The debate must be seen against the EU targets for renewables, which the Government negotiated. The Secretary of State knows that few people believe that they are achievable except at massive cost to businesses and households in this country. It is not a time for the Government to say that we should aim high—of course we must, but the aims must be achievable and realistic. Time after time, the Government have set targets and slid away from them as it becomes apparent that they are undeliverable. That happened with renewables and with fuel poverty targets, but the EU targets are on a different scale. The Government must explain in much greater detail the way in which we can achieve a target of generating 15 per cent. of our energy and perhaps 40 per cent. of our electricity from renewables. What do the Government perceive as the role of marine and tidal energy? How would we achieve those targets if the Severn barrage were either deemed too damaging to the environment or was held up for years by wrangling? They need to explain how they have decided how much it will all cost. The Government's estimate is £5 billion to £6 billion a year, but the Renewables Advisory Board estimates that the cost could be as high as £100 billion in capital investment from UK industry and property owners. Indeed, it was reported this month that Paul Goldby of E.ON believes that the Government's green energy targets could add £400 to the average household's fuel bills as utilities companies pass on the additional investment costs to consumers. Of course, we want tough targets for renewables and low carbon energy, but we also want them to be realistic and achievable so that investments are made on sound business principles to establish as much energy independence as we can, not to satisfy the EU's arbitrary whims. Energy security is one of the most important issues on the political agenda and its significance is growing. The various elements that make up this country's approach to energy should not be taken in isolation. It is no exaggeration to say that, together, properly structured and implemented, they will determine our very survival. To avoid a period of profound peril 10 years hence, the decisions to avoid that peril must be taken now. Too few such decisions have been taken. For the sake of our future, we urge the Secretary of State to get on with it without delay.
Type
Proceeding contribution
Reference
478 c617-9 
Session
2007-08
Chamber / Committee
House of Commons chamber
Back to top