A Green Industrial Revolution — House of Commons, 2020-01-15
Topic: Energy
Alan Brown (Scottish National Party, Centre-left): The word "revolution" means either an overthrow or a radical and pervasive change in society, especially one made suddenly. Have we really had a green industrial revolution? Have we had a revolution in Government? I would suggest that, if anything, there has been a counter green revolution, given that the Tory Government scrapped the Department for Energy and Climate Change, thus highlighting their priorities in recent years I have to acknowledge that we have made fantastic strides forward with renewable energy, but has it been a revolution? I would argue that, owing to the UK Government chopping and changing strategy, the process has been too stop-start to be classed as revolutionary. We have seen a welcome increase in the deployment of renewable energy, and UK Government support has facilitated that, but owing to policy changes, there have been too many peaks, troughs and, in some cases, catastrophic failures because of the actions of the UK Government The first example of that is onshore wind, which was deployed to great effect in Scotland, with prices falling rapidly due to the initial Government policies. It was a renewable energy revolution that Scotland embraced—one that saw 75% of gross electricity demand met by renewable generation in Scotland in 2018. However, the Tory shire prejudice against onshore wind means that the Tory Government are now blocking onshore wind across the UK, against Scotland’s wishes The Committee on Climate Change states that onshore wind capacity in the UK needs to increase from 13 GW to 35 GW by 2035 as part of the net zero transition, yet there is no route to market at present for onshore wind, despite it being the cheapest form of electricity generation. The former Secretary of State for Scotland should hang his head in shame for blocking the redeployment of onshore wind in Scotland. A report by Vivid Economics estimates that this could cost 2,300 jobs in Scotland and add £50 a year to everybody’s energy bills As the debate on Scottish independence re-intensifies, we need to remember the broken pledge and propaganda on onshore wind in 2014. We were told how well Scotland does out of onshore wind subsidies, how that would continue and how the UK as a whole would support onshore wind in Scotland, but instead the subsidies were removed a year or so after. That is another broken promise in 2014 that the public need to be reminded of When we consider renewables and wind in particular, it is a reminder that the transmission charging regime is a straitjacket around Scotland. The punitive charges, especially in the north of Scotland, can be a deal breaker for some developments. The charging system needs a complete overhaul to allow deployment of renewable energy for maximum benefit Similarly, we need a timescale for the delivery of interconnectors to Scotland’s islands. The change in classification for island onshore wind so that it can bid in pot 2 contract for difference auctions is welcome, but without the interconnectors these opportunities cannot be maximised. Ofgem needs to reconsider its rejection of a 600 MW interconnector to the Western Isles. Why is it holding out for a less ambitious 450 MW interconnector We need greater strategic vision from the UK Government on interconnectors. We need interconnectors to the continent and Norway, because of the abundance of hydroelectric energy. Is it not telling that Ireland is getting an interconnector to France, paid for by the EU at a cost of half a billion pounds? What does that signal for the future direction of the single energy market, and where does Brexit and a possible no-deal crash-out leave the UK without those vital interconnectors In the past—in another policy change—we had the carbon capture fiasco, when the Treasury pulled £1 billion that was on offer, and which looked set to deliver carbon capture and storage in Peterhead. That was a wasted opportunity—money down the drain with nothing to show for it—and it cost 600 jobs in Peterhead and ruined the chance for the UK and Scotland to be a world leader in that technology. I am asking Westminster to please back Scotland’s CCS potential. With 35% of the available capacity in the whole of Europe, we could still be a world leader. However, it needs a fast start, and better investment in Scotland. The Committee on Climate Change has made it clear that carbon capture is not a wish; it is a necessity in order to hit net zero by 2050 Solar energy was another possible success story, yet, when it was looking good, the Tory Government pulled the feed-in tariffs and now they have quadrupled the VAT on solar installations, so they have destroyed the industry just as it was heading towards subsidy-free installations. That is another example of a UK Government policy revolution wreaking havoc on an industry. The VAT decision must be reversed as soon as possible And yet, when it comes to nuclear and the Government’s nuclear obsession, money is no object. We signed up to Hinkley Point C, which has a 35-year concession at a strike rate of £92.50 per MWh, and yet, as the Secretary of State is aware—she spoke about the benefits of offshore wind—offshore wind now has a strike rate of £40 per MWh for just 15 years, so it is about three to four times cheaper than nuclear energy. Why are the Tory Government continuing to pursue new nuclear projects? It makes no sense. [Interruption.] Can the Secretary of State explain why?