Michael Shanks MP: speeches 2025

Speeches

• 15 May 2025 · Solar Farms · Hansard source

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  I begin by congratulating the hon. Member for Sleaford and North Hykeham (Dr Johnson) on securing a debate on this important issue. It is the first day in a while that Westminster has not been basking in sunlight, although I did note—contrary to some contributions made by Conservative Members—that solar is currently generating 30% of this country’s electricity, more than any other technology. Solar plays a critical role in our energy mix. The hon. Lady asked whether I would meet her to discuss proposals in her constituency; of course, I am very happy to meet her to discuss these issues, as I meet Members across the House. I welcome all—or perhaps I should say some—of the contributions to today’s debate. When the debate began, I was not expecting the hon. Member for Boston and Skegness (Richard Tice) to endorse the clean power mission so comprehensively, not only endorsing our rooftop solar revolution but leading the way in his own industrial empire. I will include him in the next newsletter on the clean power mission; I am sure he will happily receive it. I know that we are short on time, but I am happy to briefly outline the Government’s position and respond to some of the numerous points that have been made. I also hold the shadow Minister, the hon. Member for Beaconsfield (Joy Morrissey), in high regard, and I will respond to some of her points over the course of my speech. The clean power mission that this Government have embarked on is not about ideology. It is about delivering energy security, climate leadership, and the only way in which we can move away from volatile fossil fuels setting our constituents’ bills, which is what so many have faced over the past few years. It is the only way to create well-paid industrial jobs and deliver the clean power mission right across the country. My hon. Friend the Member for North Northumberland (David Smith) referenced community benefits and the benefits to individuals of installing solar panels on their own roofs; he is absolutely right about that, and I will return to the issue of rooftops shortly. I welcome my hon. Friend’s contributions, as he is a former pupil at Park Mains, where I used to teach—although for the record, he was not a pupil when I was teaching there. My hon. Friend also made the point, which I want to reiterate, that this is not a battle between food security and energy security. I will just say one thing, which I am sure Conservative Members will strongly endorse: “Solar projects and agricultural practice can co-exist. For example, the science of agrivoltaics is developing, in which solar is integrated with arable farming in innovative ways. That is coming on in leaps and bounds.” —[ Official Report, 18 April 2024; Vol. 748, c. 184WH-185WH.] We can achieve food security and energy security together for our United Kingdom.

• 15 May 2025 · Solar Farms · Hansard source

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  I will briefly give way to the hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont).

• 15 May 2025 · Solar Farms · Hansard source

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  I am listening.

• 15 May 2025 · Solar Farms · Hansard source

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  As I think I said the last time we had this exchange, I always welcome the hon. Gentleman’s numerous written parliamentary questions to me—it is a treat to see them every morning, and he does raise important points. I am not going to put a figure on it right now, but we have clearly said that it is important to find the right balance when it comes to best-use agricultural land. I will come back to that issue. The hon. Gentleman did not let me get to my point. I just spoke about this not being a competition between energy security and food security; those were the words of the shadow Energy Secretary, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), not that many months ago, before the Conservatives went down the hole of denying that the climate crisis is a real thing and that our energy security and food security can co-exist. That was their policy when the hon. Member for Sleaford and North Hykeham last brought this debate to the House, which I think was nine months ago.

• 15 May 2025 · Solar Farms · Hansard source

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  I will not, because I am conscious that there is another debate to come. These questions about the planning system are important. There is a rigorous process in place. We recently raised the threshold for solar projects going into the NSIP regime. I seem to remember a number of Opposition Members opposed that, but the whole purpose was to ensure we do not have the issue that we have at the moment, where a lot of projects are deliberately 49 MW, which is just below the threshold. By changing the threshold, we have more projects going through local, democratic council planning considerations, so those Members should welcome that decision. Those planning decisions also consider biodiversity, the local economy, visual amenity, protected landscapes and many other things, and those considerations also include, as a number of Members said, cumulative impact where more than one project is planned in close proximity. Members raised many other points that I am afraid I will not have time to come to in this debate, so perhaps we should have another debate on some of them. On land use, the guidance makes it clear that wherever possible, developers should utilise brownfield, industrial, contaminated or previously developed land. Where development on agricultural land is necessary, lower-quality land should be preferred to higher-quality land and so on. On questions of food security, I defer to the president of the National Farmers Union, who says that it is “important that we’re not sensationalist about the impact on food security”. I trust his judgment on this question above some others in this place. I am moving through a number of points as quickly as I can. On land use, a number of Members have asked about how we bring together the land use framework and the strategic spatial energy plan. I had a meeting about that just this week. The Government should have had a serious look at land use in this country many years ago and at how we strategically plan our energy system right across the country. They will come together. We are also looking at regional energy plans that give a more localised view, too. The National Energy System Operator is currently taking that work forward, and that is an important step. On community involvement, it is important that communities feel like they have a voice in this process. I have frequently said from this Dispatch Box that I do not for a second underestimate the strength of feeling for communities that have any infrastructure built near their houses or villages—whether that is prisons, the electricity system or new housing—but as a country, we cannot simply say that we will not build any new infrastructure because some people might oppose it. If we did that, we would never build anything, we would never deliver economic growth, and we would hold this country back, so I make no apology for saying it is about the balance between how we bring communities with us and how we get on with building in this country again, and that is important. On the point made by the hon. Member for Sleaford and North Hykeham about glint and glare, the impact on the loop-the-loop was one of my highlights of the debate. As the hon. Member for West Dorset (Edward Morello) said, solar panels are designed to absorb light, not reflect it, and glint and glare is considered in the planning process already, so it is taken into account. I am conscious of the time, and I apologise to hon. Members who raised serious points that I will not be able to address in this debate. I am happy to follow up in writing on a number of those points. Solar power is one of the cheapest forms of energy that we have in this country. It is deployable at scale, and can play a critical role in delivering our energy security and in our delivering the climate leadership that we need—to tackle not a future threat, but a present reality that will affect farmers up and down the country if we do not do so. I acknowledge that any infrastructure project has impacts on communities. The planning system does all that it can to mitigate those impacts, but we need to build stuff in this country. Infrastructure has to be built, and our electricity system has to be upgraded. We will build on rooftops, we will build a mix of energy technologies right across the country, and we will take on all innovations that are possible. It is fantastic how quickly we are innovating in this space, but hon. Members cannot simply say, “Let’s not build in my constituency”, because that is not a credible option. I thank the hon. Member for Sleaford and North Hykeham once again for securing the debate. Although we might not agree on everything, I take her points very seriously. It is important for me to say that I hear the points that she and others have raised, and I am happy to meet her to discuss them further.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  I beg to move, That this House agrees with Lords amendment 2B in lieu.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  I thank all hon. and right hon. Members for their contributions to this important debate. I will start with the intervention made by the hon. Member for North Dorset (Simon Hoare), which set the tone. He said that there is an important cross-party consensus on this issue, and I think that that has come through in all the contributions we have heard. Hopefully, that gives us a mandate to push further on this issue than any of our parties has done until this point. That is my genuine intent, and the hon. Gentleman’s point is very helpful. I always welcome my exchanges with the shadow Minister, as he well knows. I thought for a moment that there was an opportunity at this very late stage for him to change his way and support investment in his own constituency through Great British Energy, but he has once again decided to use this opportunity to say to his constituents that he does not want investment and jobs. We will of course remind his constituents of that.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  I have set that out in this debate in a number of ways. We have absolutely committed that Great British Energy will not invest in any supply chains in which there is any evidence of forced labour, and the measures that we are outlining today show how we will deliver that. There is a wider question about forced labour in supply chains for which Great British Energy does not have responsibility, and we have outlined a number of actions for tackling the issue right across the economy. Just a few weeks ago, I hosted the first cross-Government meeting with colleagues from the Home Office, the Foreign Office and the Department for Business and Trade looking at how we can make regulations much tighter. We want to ensure that what the right hon. Gentleman wants applies across supply chains, not just in the energy space, but across the economy.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  Cornwall is ever present in these debates. Nevertheless, however much the shadow Minister’s teeth were gritted, I do welcome his support for the approach we are taking today. We are debating Lords amendment 2B, which, combined with the previous commitments that I have made from the Dispatch Box and that my noble Friend Lord Hunt has made in the other place, demonstrates that this Government are committed to using Great British Energy as a vehicle for taking this issue seriously. As came through in a number of the contributions, though, this is not solely the preserve of Great British Energy; it is much broader, both in the energy system and in the wider economy. I have committed to doing some things already. I have committed to appointing a senior leader in Great British Energy who will have oversight of tackling forced labour in the supply chain; we have confirmed that Baroness O’Grady will take on that role. Many Members will know that she has significant experience in this space, and she will bring much effort to important deliberations at GB Energy. I have committed to cross-Government departmental meetings, which took place on 7 May as a starting point. I have committed to including an overarching expectation in the statement of strategic priorities, and that will be delivered within six months. We have demonstrated our unwavering commitment to tackling forced labour in supply chains, and we are resolute in our determination to go further.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  I thank my hon. Friend for that intervention, but more broadly, as I have said before, for her significant contribution in this space and for the way she has influenced me and others over the past few weeks on these important issues. I also thank others across the House, because it has been a real cross-party effort, and I think we are in the same place. We want to take this forward, and there is much more work to do. I want the message to be that, while this is progress, it is—as the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) put it very well—the beginning, and certainly not the end, of further work. Without wanting to tempt fate, this is the last opportunity to speak about the Bill in this place, so I close by thanking everyone who has played a role in getting it to this stage. In particular, I thank my noble Friend Lord Hunt in the other place. I thank all the Members from all parties in this place who contributed to the Bill Committee, and the witnesses who gave evidence. I also thank the parliamentary staff who play such an important role in shepherding Bills through this place and the House of Lords. I especially thank the fantastic team of officials in the Department for Energy Security and Net Zero, who moved at incredible speed to develop the legislation, but always with good humour, which I have personally appreciated. Great British Energy is at the heart of what the Government are setting out to achieve: delivering clean power, but delivering jobs and investment as we do it; and delivering energy security and climate leadership, owned by and for the people of this country, and headquartered in the energy capital of Europe, Aberdeen. With investments having already been made, including in community energy in Scotland today, which Members from Scotland might welcome, and investment in supply chains and much, much more, this is the big idea of our time. It will deliver on our energy objectives, but with the public owning a stake in their energy future. I am pleased that Parliament will—I hope, without tempting fate—back it today, so that it can receive Royal Assent and get on with doing what we need it to do.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  My hon. Friend is absolutely right. We want Great British Energy to be a sector leader in this area. It must meet all the standards that we expect from every other company, but we want it to go further and really demonstrate what is possible in this space. He raises a wider question about the importance of Great British Energy to delivering investment in the supply chain, so that we are delivering not just energy security through the clean power mission, but good, industrial jobs. That is what this Bill is all about. Great British Energy will strive to be a leading example of best practice, not just in this space, but right across corporate due diligence, setting a benchmark for ethical standards in supply chain management. That involves ensuring that human rights considerations are integrated into corporate policies, procurement and suppliers’ conduct; we will draw on guidance from leading experts in the sector, such as the Helena Kennedy Centre at Sheffield Hallam University. Lords amendment 2B will strengthen our framework. It demonstrates that both Great British Energy and the Government are absolutely committed to maintaining supply chains that are free from forced labour. I urge the House to agree to Lords amendment 2B and the position that the Government have reached on this critical issue.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  I thank the right hon. Gentleman. I was going to come to his substantive contribution shortly, but I will do so now. The first point he made in his speech is important, which is that there is a real danger with the piecemeal approach he mentioned. That is partly why I have resisted the idea that Great British Energy will solve all of these issues in isolation; it clearly is not going to do so. We think it has a really important role in leading the conversation and leading the effort, and certainly in demonstrating that by its own actions, but we have to look at these issues right across Government. The meetings I have convened are a starting point in looking seriously at where the Modern Slavery Act falls short. We are committed to doing that, and it sounds as though there is consensus across the House about looking seriously at that. That is not only for my Department, and I want to be careful about overstepping, because to avoid the work being piecemeal, it needs to be done right across Government. However, the points the right hon. Gentleman makes specifically on tracking supply chains are very helpful, and I will take them away. The hon. Member for South Cambridgeshire (Pippa Heylings) made a point about the International Labour Organisation’s principles. Great British Energy will consider the 11 indicators of forced labour, including abuse of working and living conditions, as part of its efforts. I do not think that this Bill is the right place to get into a conversation about defining slavery. We may need to look at that, and I am not against doing so, but this Bill is about creating Great British Energy, and we need to be careful to keep these things separate. We are already a signatory to a number of conventions, which highlights the Government’s broad support for tackling forced and compulsory labour, and we will continue to take that forward. The Home Office has produced a modern slavery action plan, which sets out the first steps in its departmental responsibilities for tackling modern slavery at its root. The plan, which will be published shortly, confirms that the Government are considering legislative vehicles for strengthening section 54 of the Modern Slavery Act. These are clearly important issues, and I do not for a second seek to say that the Lords amendment or Great British Energy itself will solve all of them, but I think this is an important step, and I welcome all the contributions made across the House.

• 14 May 2025 · Great British Energy Bill · Hansard source

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  I thank all Members of both Houses for their continued scrutiny of this important Bill. In particular, I extend my thanks to my noble Friend the Minister for Energy Security, Lord Hunt of Kings Heath, for his expertise and, dare I say, resilience, which ensured that we reached the resolution that we are here to discuss. Lords amendment 2B was added to the Great British Energy Bill during consideration of Commons amendments, and the Government motion to accept Lords amendment 2B was passed in the other place. The Great British Energy Bill delivers on our manifesto commitment to establish Great British Energy, which will accelerate clean power deployment, create jobs, boost energy independence and ensure that UK taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy. We recognise the breadth of concern across Parliament and from the public on this issue, and particularly on the issue of how Great British Energy will tackle forced labour in its supply chains. Throughout the passage of the Bill, the Government have consistently stated that they wholeheartedly share that concern and agree on the importance of tackling forced labour in supply chains wherever we find it. That is why we tabled Lords amendment 2B, which is the latest move in the Government’s work to tackle the issue of forced labour while we progress towards becoming a global leader in clean energy. We expect all UK businesses to do everything in their power to remove any instances of forced labour from their supply chains, and Great British Energy will be no different—in fact, we have stated many times that we expect it to be a sector leader on this matter. Lords amendment 2B makes it clear that Great British Energy is committed to adopting measures so that it can take the appropriate steps to act on any evidence of forced labour in its supply chains, as we would expect from any responsible company.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  Some?

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank the hon. Gentleman for that important intervention. I will turn to the substance of the amendment before I get into trouble, Mrs Hobhouse. The amendment seeks to set the level of benefit at £1,000 per year over 10 years. First, I should say I welcome the fact that across the Committee today there is support for that principle. That is really important, because the principle that we want to recognise—to be fair, the previous Government did when they launched the consultation—is that if we host nationally important energy infrastructure, particularly transmission infra-structure, which so often has less of a community benefit in the communities that it passes through, there should be some benefit from it. That is a really important point. The balance that we sought to strike was to find a way to give a benefit to those households affected by the transmission infrastructure, but also make sure that the wider bill payers across the country that will pay for those community benefits are not saddled with a significant bill as a result. So the balance that we struck was £250 per year over 10 years. I would never seek to question the House of Commons Library, but I think perhaps the hon. Member for Broxbourne might not be correct in his interpretation of its figures. It would be £2,500 over the course of the 10 years that the scheme would be in place. I think that is what he was referring to. In our view, the point here is that this still provides a significant benefit regarding bills for those households for a substantial amount of time—10 years—but at the same time does not result in significant amounts being added to the bills of other people right across the country who will pay for this. We think £1,000—which we looked at carefully as part of this process—is too much.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank all hon. Members for their contributions. The hon. Member for Hamble Valley has taken the right tone, which is that our forestry land is to be treasured and protected for future generations, but there is a balance to be struck—we strike it every day in relation to how much the public can access and enjoy that land, and use visitor facilities. Stewardship of our forestry land is the responsibility of all of us. I thank him for his remarks. We expect the footprint from the projects to be incredibly small. In fact, the most successful projects in Scotland are often on the rooftops of visitor centres, alongside toilet blocks, and in those sorts of places, so we are not talking about cutting down huge areas of forest to build ground-mounted solar. However, the point the hon. Gentleman made about consultation is critical. There will be comprehensive public and statutory consultation, and I fully expect Forestry England to carry out an even more detailed engagement process, given its stewardship role for certain pieces of land. In fact, in Scotland, where some projects have been carried out, groups of people who frequently use the forest have been involved in designing the projects and deciding what the money will be spent on. There are real benefits to that. Although there is sometimes short-term disruption from construction, often the projects have resulted in accessible routes being opened in Scottish forests, including new wheelchair-accessible paths, so previously inaccessible land is being made accessible. However, the hon. Gentleman is right about consultation. On the subject of revenue stream, we expect the measures to enhance Forestry England’s wider role and its existing objectives, which do not shift as a result of the measures. Of course, those objectives relate to environmental conservation. In fact, the revenue, which is currently being wasted—the critical point is that these projects cannot export to the grid—could actually create a net benefit, and we would expect it to do so. That is an important point, as is the issue of mission creep. We will certainly keep that in mind.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  We come to the most exciting clause in the Bill: the offshore transmission owner, or OFTO, regime. I can see everyone is on the edge of their seats. This is an incredibly important clause. It provides a competitive market for offshore electricity transmission, which is important because it helps us to achieve cost-effectiveness in the building and operation of offshore wind farm connections on to the national grid. The clause is part of our efforts to ensure the regime supports the UK’s continuing ambition to be a world leader in offshore wind. The clause extends the time that wind farm developers who build their own transmission assets have to divest those assets to an independent offshore transmission owner. That time is currently 18 months and the clause increases it to 27 months. That period is known as the generator commissioning clause, or the GCC. The clause addresses the increase in size and complexity of wind farms since the GCC was first introduced. My Department issued a call for evidence on the OFTO regime, which closed in February 2024 under the previous Government. The responses suggested that the GCC period was too short and should be extended due to the increase in the size and complexity of wind farms, which has led to an increased risk of developers experiencing technical faults, and has meant more time is required for more complex commercial negotiations. Without the clause, we would expect to continue to see many offshore wind farms needing to request individual transmission licence exemptions, which we bring to this House for decision, if they are unable to transfer transmission assets within the current 18-month period. The vast majority of offshore wind farms entering the process since 2016 have needed to apply for one of these exemptions, with each exemption requiring a separate statutory instrument to be considered each time. The clause is therefore expected to reduce very significantly the number of offshore wind farms requiring an exemption. The requirement for an exemption leaves wind farms at risk of shutting down, taking a source of renewable energy off the grid and endangering the UK’s energy security, which is of course something we all want to avoid. This is a technical but very important clause and I commend it to the Committee. Question put and agreed to. Clause 23 accordingly ordered to stand part of the Bill. Clause 24 Use of forestry estate for renewable electricity Question proposed, That the clause stand part of the Bill.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  It is a very important point, and this will come through in the discussions that we will have more generally in this Committee around community consultation, but it will continue to play an important part. I think it is important to separate out any question of compensation from community benefit. This is not a compensation scheme, and landowners that currently are compensated for infrastructure being built will continue to be compensated through whatever channels that is decided in. This is a community benefit, so it is additional. It is about recognising that it is critical for the future of the country that we build new grid infrastructure, and that if someone hosts that infrastructure they should gain some benefit from doing so. This is our proposal for doing that, alongside the community benefit funds that we have announced. The Government believe that it is appropriate to set out the full detail on this in regulations, as is the case in many such schemes that have been set up over the years, due to the technical level of detail that will be required, and have drafted this clause to make sure that it applies only to transmission infrastructure, as it is not the intention that it should apply to other technologies. I commend clause 22 to the Committee. That brings me to new clause 102, tabled by the hon. Member for Taunton and Wellington, which seeks to introduce a scheme that would ensure communities are provided with financial benefits from hosting major energy infrastructure projects from a range of technologies. I welcome the intent of this measure. Indeed, I have had a number of conversations with the hon. Gentleman’s colleagues on this very topic over the past nine months in which I have had the privilege of having this job, and spoken fairly recently to his colleague, the hon. Member for Inverness, Skye and West Ross-shire (Mr Angus MacDonald)—I was in his constituency yesterday, seeing the investment that this Government have made in port infrastructure in his constituency. We therefore agree broadly with the hon. Member for Taunton and Wellington’s point about how communities should benefit from all this energy infrastructure, but the new clause is not the right way to do it. We are already considering—he quoted myself to me, and I was delighted to hear I was fairly coherent in that debate—the question of wider community benefits. Clearly, at the moment most such community benefit schemes are voluntary schemes run by developers. It is important to say that some of those are actually hugely successful, and communities welcome the collaborative approach in drawing them up, but others are very unsuccessful, and leave communities without the genuine benefits that they should get. We are therefore looking at this really closely at the moment. As my hon. Friend the Member for Basingstoke noted, we published guidance in May 2025 on community benefit funds for those who live near electricity transmission infrastructure, and shortly we will publish updated guidance for onshore wind in England, which, of course, follows the 10 years of the previous Government’s ban in England. We are also exploring options for our overall approach to community benefits, to provide consistency across different technologies and to maximise the ambition from that. We have left on the table the option of that being mandatory in every case, but we want to look closely at how that would work, and how the design would work to ensure that we are not setting a scheme that does not suit the flexibilities that individual communities might want to take advantage of. I reiterate that communities are providing a service to this country when they host clean energy infrastructure and there should be a benefit from it. Towards the end of the hon. Gentleman’s speech, he rather veered off community benefits and into an equally important space on community ownership, which is something that I have also had a number of important conversations about. We see ownership of energy by communities as a really important step as well, and that is a step up from community benefits.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  The hon. Gentleman makes an important point, which we will take onboard. It is already part of what the Health and Safety Executive and the Fire Service are looking at nationally in terms of guidelines, but the Government continue to take an interest. The hon. Gentleman is right that as the schemes expand across the country, more fire brigades that may have not had experience of these incidents in the past will have to gain experience. It is an important point and we take it seriously. On a general point, I am glad that hon. Members across the Committee recognise the importance of LDES. It is genuinely an exciting moment for the country that we will build some of these important engineering projects to deliver the long-duration energy storage that the country needs. Question put and agreed to. Clause 21 accordingly ordered to stand part of the Bill. Clause 22 Benefits for homes near electricity transmission projects

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank the hon. Lady for that point; I will come to the new clause shortly. The difficulty with that approach for transmission infrastructure is that by definition it goes through so many different communities in a linear way that it would be really difficult to divide up that funding among communities. How you define each community is quite challenging, whereas defining households that are within a certain distance of pylons, for example, is very easy, and we want to give a direct benefit to those households.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  Thank you, Mrs Hobhouse. On that cheery note, it is great to be back in Committee this morning. The clause is about long-duration electricity storage, or LDES, which is an incredibly important part of an electricity system, allowing us to store cheap renewable energy when the wind is blowing and the sun is shining, and to generate electricity when people need it most. It is a crucial part of our clean power mission. Across Great Britain, we already have 2.8 GW of LDES on the grid. I have had the pleasure of visiting some pumped hydropower stations that have been part of our system for decades. They allow excess electricity to pump water high up to a mountain reservoir, where it can be released when we need it to drive turbines and generate electricity. The most recent of those sites, however, was completed more than 40 years ago. The clean power 2030 action plan suggests that we need another 1.2 GW of LDES in the next five years. The National Energy System Operator suggests that we could need up to 15 GW by 2050, so a significant increase on where we are today. Despite low operating costs and high system-wide benefits, which in 2024 were estimated at £24 billion, the large up-front capital costs to build such stations in the first place, and the revenue uncertainty over such a long lifespan of an asset, have deterred private investment in LDES over the decades. The clause therefore introduces a cap and floor scheme to develop new long-duration energy storage in Great Britain. Those wishing to develop an LDES asset will be able to apply to Ofgem for protected revenues, conditional on satisfactory delivery and operation and on sharing excess profits with consumers. That provides the revenue certainty needed for investors, giving the green light for the next generation of those important assets. We expect—we have set out deliberately—that this will be technology-agnostic. We therefore expect that we will have more pumped hydro, as well as more novel technologies such as liquid air energy storage. The clause imposes a duty on Ofgem to establish and operate a cap and floor scheme to encourage the development of LDES assets across Great Britain. The clause also defines the minimum eligibility requirements for the scheme: assets will need a minimum power output of 50 MW, and to be able to discharge at full power for eight hours without recharge. Simply meeting those requirements, however, will not guarantee success, and Ofgem will only select the projects that are most useful for system-wide benefits and for consumers. The clause gives the Secretary of State the power to update that definition by regulation. It also defines in broad terms how Ofgem will set the cap and floor, and how it will fund floor payments. This is a really important step. As I say, after 40 years of not building long-duration energy storage in this country, we are incredibly excited to be building it once again. It is also crucial to how we deliver the clean power system in the future. I commend the clause to the Committee.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  I thank all Members for an interesting debate. Amendment 83 was tabled by the hon. Member for West Aberdeenshire and Kincardine. He is ever present in these discussions, but never present—

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  Again, there is a balance to be struck: we do not want to create a fixed set of national guidelines that preclude larger scale projects that would not disrupt existing forestry. I do not want to suggest that every piece of forestry land is the same, and therefore that the guidelines should apply in the same way. None the less, the hon. Gentleman makes an important point, and I will write right to the Committee about it. I say the same to the hon. Member for Ruislip, Northwood and Pinner. As I think he would expect, schemes such as those he mentioned are not intended to be part of these measures However, I will consider whether we can tighten the guidance. The clause is intended to be about using land that, in some cases, already has some of these projects on it, but they cannot export to the grid. Small-scale solar or hydro—those are the sorts of schemes that we see as fitting alongside the wider mission of Forestry England. The hon. Gentleman raised an important point, and I am happy to write to the Committee about it. Question put and agreed to. Clause 24 accordingly ordered to stand part of the Bill. Clause 25 Fees for certain services

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  That is a question that I have asked myself many times over the past nine months. The problem is that we inherited a number of these things from the previous Government and we are working through them. I have regular meetings on the subject. It is really important that we get this right, because we need to strike the balance: ultimately, the community benefit funds will, one way or another, be paid for by bill payers, but we want communities to have a real benefit. The balance has to be right because we are trying to bring down bills for everyone across the country. The Conservative amendment would increase people’s bills, but we are determined to try to bring them down. There is a balance to be struck. We feel that this is an exciting moment to drive community ownership forward. A key aim of Great British Energy will be to drive forward the local power plan, so that communities do not just have benefits from infrastructure, but own some of those benefits. A number of hon. Members across the House have mentioned the real benefits of communities having a stake in projects—they can spend the money on whatever they want to spend it on, rather than on what a scheme might define. The two go hand in hand. The bill discount scheme is an important step to drive forward community acceptance of new network infrastructure. We will develop proposals at pace for the hon. Member for Taunton and Wellington and for communities right across the country on the wider aspects of energy infrastructure. I hope that he will not move his new clause 102.

• 13 May 2025 · Planning and Infrastructure Bill (Fifth sitting) · Hansard source

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  The Minister for Energy made it on to this Committee; the shadow Minister for Energy could have made it on to this Committee as well, so my hon. Friend should not withdraw his criticism so hastily. Anyway, he is ever present in these discussions and we enjoy his contributions from beyond the Committee room.