Lord Callanan: The right reverend Prelate asks a very good question on electric vehicles; let me give him the facts on that. The UK had among the highest battery electric vehicle sales in 2022. We are registering a new EV every 60 seconds. Full-battery EV sales are up 88% year on year. Most of the UK’s emissions cuts have of course come under this Government; we are very proud of our record on electric...
Lord Callanan: The answer to the noble Baroness’s first question is no. With regard to the OBR, I am not quite sure why the OBR has a role in this. We obviously have our Climate Change Committee which gives the Government advice, but, to be frank, lots of other external organisations send me more advice on this subject every day, so we are not short of helpful academic advice on all the topics under...
Lord Callanan: The noble Baroness has been resolute in her support for nuclear and does a fantastic job in advocating for it. I am very happy to give her the reassurance that she is looking for. Of course, again, the nuclear industry was left to decay under the last Labour Government. We have resumed it through building Hinkley Point, and we are about to take a final investment decision on Sizewell. I know...
Lord Callanan: We will not lose another 10 years on the path to net zero. I outlined our policies earlier. For the sake of repeating them again, we are still committed to net zero and to meeting the carbon budgets; we have an excellent record. We are committed to meeting the 2050 target. We will continue to advance on that path, but we will do so in a fair and proportionate manner that takes people with us...
Lord Callanan: The key phrase in the noble Baroness’s question was people choosing green alternatives. We want to help them to do that, and we want them to do it voluntarily. We want to make the choices attractive, which is why we provide incentives for insulation schemes. I refer once again to the Great British insulation scheme that I announced last week, which offers £1 billion over three years to...
Lord Callanan: I thank all noble Lords for their contributions. I will first deal directly with the points by the noble Lord, Lord Kerr. What should I say about this? He is, of course, prescient in his observations, but this has been a long-standing policy—effectively of the Treasury, which is unwilling to fund many of these policies from general taxation. Therefore, a lot of previous subsidies, such as...
Lord Callanan: My Lords, with the leave of the House, I will speak also to the other amendments in this group. The Government introduced amendments on Report in the Commons to commence further provisions of the Bill on Royal Assent. These amendments will ensure that key secondary legislation can progress at the pace required for the department’s policy objectives to be met. The remaining government...
Lord Callanan: My Lords, with the leave of the House I will speak also to the other amendments in this group, which concern new policy that was introduced in the other place. I turn first to the amendments on hydrogen transport and storage infrastructure. These amendments will enable business models to be brought forward to provide investors with the long-term revenue certainty that they will need to...
Lord Callanan: My Lords, I thank all noble Lords who have contributed to the debate. I will start on the last issue raised by the noble Baronesses, Lady Boycott and Lady Meacher, and others: that of community energy. The Government launched the £10 million fund this summer, and it is larger than its predecessors. From what I have seen so far, it has been welcomed across the community energy sector. It will...
Lord Callanan: My Lords, with the leave of the House, as well as moving that this House do agree with the Commons in their amendment, I will also speak to the other Commons amendments. I am pleased to bring the Energy Bill back to this House, following on from the many hours of debate that we had during its parliamentary stages in this place. The Bill is essential to the transformation of our energy system...
Lord Callanan: My Lords, the Government are disappointed that no offshore or floating offshore wind projects secured contracts for difference in the most recent allocation round. The results provide valuable learning for subsequent auctions. Work has already started on allocation round 6, incorporating the results of the recent round, and we look forward to a strong pipeline of technologies participating....
Lord Callanan: I am happy to hear the noble Baroness be so cavalier with bill payers’ funds; she is, in effect, talking about increasing the strike price. It is always difficult for the Government to strike the right balance: we want to get the best value possible for bill payers, as opposed to providing sufficient revenue for the companies to build. I obviously know which side the noble Baroness is on...
Lord Callanan: The bill payer will be very grateful that 7.5 gigawatts of construction is already under way, as we speak. We all want to see more, but at the right price. I understand why industry is urging us to pay more for this. That is understandable and in its commercial interests, but I would have expected most Members of this House to be on the side of bill payers as well. We can do both: we can get...
Lord Callanan: The noble Baroness asks a very good question. Eleven tidal stream projects were consented in this allocation round, totalling about 41 megawatts. The price for that is currently higher but we need to develop this technology. I hope, as has been the case with offshore wind, that if we continue to let more CfDs the price will continue to come down over time. That was one area of the round that...
Lord Callanan: Again, there is no complacency. I understand that there are many projects wanting the go-ahead, but we must be careful in making sure that the consumer gets a fair deal. Lots were consented to last year; I am sure that lots will be consented to in the future. The noble Lord talks about onshore wind. I am pleased to tell him that 24 onshore wind projects were consented to and were successful...
Lord Callanan: The noble Lord asks a lot of different questions within what he said. I think his figure of £65 billion refers to the cost of upgrading property to EPC level C, which is a long-term aim. His separate question on hydrogen for heating is indeed a controversial subject. We will make a decision on whether to go ahead with a hydrogen village trial by the end of the year. Similarly, another issue...
Lord Callanan: Of course, that will be our aim. As I said, we want to see more projects consented to and we will try to get the balance right. We will certainly learn the lessons from this round. It is obviously disappointing that we did not attract bids this time, but the offshore wind industry has been a tremendous success for the UK. We have by far the largest capacity in Europe. We have the largest...
Lord Callanan: My noble friend certainly highlights a concern, but lots of protections are built in and lots of environmental regulations need to be adhered to when these projects are consented to and all the matters are gone into fully, in both environmental and regulatory permitting. Every energy source has its drawbacks. Those who are against nuclear would point to its drawbacks; with coal-fired power...
Lord Callanan: I will be happy to supply those figures to the noble Baroness in writing if I can. Again, it is worth saying that, in a diversified energy system, it is important to have different sources of supply. I am very enthusiastic about solar and offshore wind; they are intermittent but they are cheap when they are generating. We also need baseload supply, so there will a role for nuclear and for...
Lord Callanan: I have said that lessons will be learned. As I said, there is a healthy stream of projects wanting to come forward. Understandably, the developers want to be paid as much as possible. The unique thing about offshore wind is that it involves very high initial capital investment costs. Once the things are built, they are relatively cheap to operate, unlike some other sources of generation. It...
