Queen’s Speech

My Lords, since I want to speak about energy issues, I should first declare my non-financial interest in a renewable energy company, Water Power Enterprises. This small company, of which I am chairman, seeks to develop low-head hydro schemes to harness the power of our rivers, particularly in the north of England, and to do so on a not-for-profit, community interest basis. Given the amount of water in our rivers, potential for this form of local generation is significant, and low-head hydro schemes have the possibility of directly involving local communities in generating a proportion, albeit a small one, of their own electricity on a sustainable and thoroughly green basis. The educative effect of this technology is also becoming apparent, with considerable interest being shown by children and schools, so it would be rather churlish of me not to acknowledge the encouragement which the Government have given to this sector, particularly since the creation of the new Department of Energy and Climate Change, and I readily do so. However, that is not the issue I wish to raise today because, notwithstanding the important contribution which renewables can and should make to the overall mix, the really burning issue is the future of the large power plants. There is a need for greater urgency in bringing on-stream a new generation of large power plants which will deal with the issue of replacing the essential base-load capacity, and in particular nuclear. When I made my maiden speech in your Lordships’ House almost five years ago, I drew attention to the mounting evidence of climate change and emphasised the need for the Government to take a brave and bold decision to restart the nuclear programme. I have to admit that at that time, in early 2005, I had been strongly discouraged from making such an apparently provocative proposal, especially in a maiden speech, but I am hugely heartened by the fact that the Government were heeding such calls, even if at the time it was still the policy, as expressed in the 2003 White Paper, to maintain that while the door was not firmly closed to further nuclear stations, it was not considered necessary to embrace such a bold step. Five years on, the consensus having shifted, it feels as if it was always the case that a new generation of nuclear stations was just around the corner. It is even more amazing, in the run-up to Copenhagen, to remember that the evidence for man-made climate change was by no means as widely accepted then and publicly discussed as is the case today. The vital breakthrough came when Prime Minister Tony Blair propelled this issue to the top of the agenda for the G8 Gleneagles summit, and with the subsequent initiative of the 2006 energy review and the publication of a fresh White Paper on energy, published by the DTI in May 2007 when Alistair Darling was the Secretary of State, and the White Paper on nuclear power, published by the then Department for Business and Regulatory Reform in January 2008, when John Hutton was Secretary of State. It is now clear that Tony Blair had been listening to scientific advice, notably that of the Government's then Chief Scientific Adviser, Sir David King. In the five years which have elapsed, attitudes have significantly changed. My noble friend, and fellow Munro bagger, Lord Smith of Islington, who is now doing a splendid job as chairman of the Environment Agency, is just one of those who are now described as "greens for nuclear". We discussed this thorny topic on more than one occasion when roaming the Scottish hills together and I welcome his change of heart, although I do not think I can claim any particular credit for it. I think the scientific evidence has prevailed over the more emotional response to the Chernobyl disaster and the era of bumper stickers saying "nuclear power, no thanks". However, despite a sea change in public attitudes, we are a long way off seeing the new generation of nuclear stations up and running and in the mean time many of the existing stations—nuclear and fossil-fuel powered—are drawing ever closer to the end of their lives. I recall that the chief executive of EDF Energy, Vincent de Rivaz, stated emphatically to a meeting of the All-Party Parliamentary Group for Energy Studies that he was hopeful that the first of the new nuclear plants which he wishes to develop will be producing electricity "in time to power the Christmas lights in 2017". That was in early 2008, but as we approach the Christmas lights season of 2009, it is beginning to look a little overoptimistic. I welcome the recent publication of the draft national policy statements to guide planning decisions on energy infrastructure, but the process gives the impression of moving with glacial slowness, even if we are thinking of melting glaciers. I am sure that it depends on a speeded-up planning process, as now provided for by the Planning Act, but an enormous black cloud is coming over the horizon. Should the Conservatives win the next election, given their stated policy of doing away with the Infrastructure Planning Commission, how much longer will it take for new and necessary large plants to come to fruition? My question to the Minister, which I hope he can address in his winding-up speech, is whether the Government have made an assessment of the likely effect of such an abrupt reversal of the planning regime which has so carefully been put in place. Is it likely to cause delays of several years, or just a few? Perhaps the noble Lord, Lord Taylor of Holbeach, might also like to comment on this worrying point from the opposition Front Bench when he also comes to wind-up. I have a further worry and a further question for the Minister. In this case it is about the speed at which large coal-fired power stations are due to close under the EU's large combustion plant directive. I noticed a Written Question very recently asked by the noble Lord, Lord Willoughby de Broke. As he is a UKIP member, it would not surprise me if he was seeking to make some point about the insidious practices of the EU and probably the wicked nature of Brussels bureaucrats finding every opportunity to hamper British independence. However, the directive was issued for a purpose which we surely should support—drastically to reduce harmful pollutants being released into the atmosphere. We ought to be grateful for that. Atmospheric pollution does not respect national borders. The noble Lord asked how many power stations in the UK the Government expected to be shut down before 2015—I suspect he meant before the end of 2015—on account of their having used up their 20,000-hour operating limit. The Government’s reply was interesting. The Minister said: ""The timing of the closures of the stations opted-out of the large combustion plant directive is a commercial matter for the owners, within the limits imposed by the directive".—[Official Report, 10/11/09; col. WA 139.]" That is absolutely true, but what does it tell us? Does it mean, "We know when the plants are likely to be turned off but we do not intend to tell Parliament", or does it mean, "We do not know"? If it is the latter, it is indeed very worrying. I hope that the Minister can be more forthcoming about this in his reply to the debate. With these two worrying questions hanging in the air, and hopeful of eliciting some answers, I conclude by again warmly welcoming what the Government have done to encourage the development of renewables, particularly low-head hydro. I especially welcome the renewed commitment to nuclear energy, as emphasised by the recent announcement to Parliament by the Secretary of State. These are indeed major steps to moving to a low-carbon future. The forthcoming Energy Bill will also provide an opportunity for the Government to address in a practical way issues relating to fuel poverty and is also greatly to be welcomed.