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Lord Howell of Guildford (Con)

Speaking in the House of Lords on 14 November 2024

Debate

Renewable Energy: Costs

Contribution

My Lords, I declare interests, both for past energy issues—I was at one stage the Secretary of State—and as an adviser to Mitsubishi Electric, which is one of the biggest producers of equipment and kit related to moving to a clean energy world. I congratulate my noble friend Lord Frost on securing this debate, which is very well timed. It comes not only during COP 29 but after a very good debate last week, promoted by my noble friend Lord Lilley. It also comes before we debate, on Monday, the Great British Energy Bill, which, as far as I can understand it, is going to confuse things even more among many agencies. Still, we will have to live with that for the moment. This is of course a question of pace and process. It is an honour to come after the right reverend Prelate but, with respect, the issue is not really whether there is a problem and we address it. The issue is whether we address it in a way which slows it down and creates a pushback, diverting us from the real task, or whether we focus on what we are trying to do, which is to reduce or slow down the rise in methane and CO2 emissions, which are going to lead to a very great world disaster. At the moment, methane emissions are rising faster than ever; CO2 worldwide is rising faster than ever. That at least raises the question of whether we are doing the right thing now, when clearly some action is needed. We also need to create a rendezvous with reality, of which there is little sense in this debate, and counter a tide of misinformation—some of it unconscious and some of it conscious disinformation—about what should be done now and which way we should go. There are also some rather cuckoo recommendations from really quite senior bodies about flying more slowly, which sounds extremely dangerous to me, or eating less beefsteak. For some people, that may be necessary, but generally that seems a rather bad addition to the nation’s health. I am very pleased that our own Library here in the House of Lords has put forward an excellent briefing, in which it has corrected, rightly, a very important and basic issue about this whole discussion. It is the matter of the confusion, in assessing where we go next, between electricity generated, as at present, and total energy use. Those are very different things. Last year, the former, according to the Office for National Statistics, produced about 19% of total energy use and renewables were about half that. Of that 19%, about 51% was green electricity of all kinds, including nuclear, wind, sun and all the rest. That leaves renewables providing about 9% or 10%—not 50%—of the total energy that we use in this economy at present. It is the remaining 90% that we now have to focus on. There are a number of reasons why it may not be quite as bad as that and a number of reasons why it might be much greater. Energy efficiency will reduce growth; interconnectors will help us out; local generation and tidal will help us out as well. The prospects are also for a huge increase in energy demand in this country, which we will have to meet by nuclear, when we have made no moves so far beyond Hinkley, which is turning into a pretty bad outfit altogether. There are also the costs of storage and having much more nuclear power at Sizewell, which will be a great mistake. We need six new switching stations, a new grip on pylons and an entire makeover of the National Grid system. None of these things appear to be going forward very fast and we therefore face the fact that we will have huge electrical growth for which someone will have to pay, and it will cost a great deal more.

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