Contribution
My Lords, although I have no outside interests which impact directly on solar farms and onshore wind, I declare my interest in having worked in the wider field of energy transition since my time as Minister for Energy.
I start by reflecting that we all want clean energy, we all want full engagement with local communities, and we all want to work towards an energy policy based on energy security, sourced from trusted supply chains and, above all, delivering affordable energy. This announcement should be tested against these criteria, for we support community energy enthusiasm where it makes economic sense. Does the Minister agree that reducing energy bills comes only by increasing reliable generation and decreasing costs, yet the local power plan does not come with a generation target nor an analysis of the extent to which it will contribute to reducing bills? If these are not central factors within the policy, I am afraid that it will for sure be time and money misspent.
In the Government’s own press release, they rely on “internal analysis” to claim that additional solar and onshore wind procured through AR7 could lower bills in the early 2030s, but that analysis has not been published. It looks only at a narrow scenario, it seems to exclude wider system costs, and it does not give a full picture of future bill levels. Does it include the load in grid costs to get the power to market, given that many of the wind projects being considered are in Scotland? How does the plan impact on Labour’s promises to cut energy bills by £300, not least given that they have risen by £190 since Labour came to power? How does this initiative change that?
I had a good look at the map of all the proposed projects in the CfD allocation round 7a. There were only two small wind projects in England, some in south Wales, and the vast majority of the other wind projects were in Scotland. Given that there were only two wind projects in England, can the Minister comment on whether this will lead to further increases in the already staggering bill for curtailment—paying wind farms not to produce—because of the grid constraint from Scotland to the south, the B6 boundary, and the cost of debottlenecking that, which is estimated to be north of £50 billion?
Can the Minister comment on whether this initiative is good for employment? There has been real concern recently, which the Minister will be aware of. The OEUK talked a lot about his policies and the redundancies in the offshore sector, and fears that the industrial contagion will spread to onshore supply chain and manufacturing communities. To put this in context, on average, 1,000 direct and indirect jobs are being lost each month from the oil and gas sector. Without intervention, this rate of job losses will continue to 2030. RenewableUK has said that these initiatives being proposed for renewables may create 4,000 more jobs from now to 2030, as against the 50,000 losses of jobs in oil and gas. How does that help employment in the UK? The GMB union’s Scotland secretary, Louise Gilmour, gave the same warning:
“There is a human cost to these decisions that goes beyond the bottom line of this year’s budget and impacts workers, families and communities in Scotland and across Britain. The economic case for easing the financial pressures on our offshore industries is clear and compelling but so too is the moral argument for slowing the rushed and needless abandonment of workers and their communities”.
Does the Minister agree?
I turn to an exceptionally important point. This announcement is principally about solar energy, and solar imports come from China. The Minister of State, the noble Baroness, Lady Chapman of Darlington, stated in a debate initiated in this House recently that
“human rights are a non-negotiable part of this Government’s approach to China”.—[Official Report, 2/2/26; col. 1301.]
This is an initiative to import Chinese goods. Well over 80% of PV modules used in the UK have significant Chinese content, and the true figure is very likely to be above 90% when you include panels made by Chinese-headquartered manufacturers—for example, Jinko, Trina, LONGi, JA Solar and Canadian Solar, all of which are Chinese in origin—and the non-Chinese brands whose wafers, cells or polysilicon is sourced from China. Some 80% to 85% of the global polysilicon that is needed comes from China, and the UK imports almost all its PV hardware. Installers and trade bodies routinely report that Chinese supply chains dominate the UK market because of price and scale. In the map for AR7, we are talking about a widespread, historic, major increase in solar imports from China. This local power plan depends on Chinese goods.
I simply ask the Minister whether he can tonight guarantee that no imported polysilicon, no panels being installed in our schools at the moment under GBE’s first initiative, and no solar content on any of the panels that is foreseen by this particular measure will come from the Xinjiang Uyghur Autonomous Region. A very large share of the world’s solar grade polysilicon has recently come from China, and a significant part of that comes from the Xinjiang Uyghur Autonomous Region.
It is a simple question and I hope the Minister can answer it by saying that there is absolutely no polysilicon that comes from that autonomous region. If he cannot answer it, it would have been wise and sensible to consider that question first. When comfortable that the Government could answer it in the affirmative, he could then come to the Palace of Westminster and bring forward this initiative for a historic increase in the import of solar panels.
In conclusion, can the Minister also say in this context why the Secretary of State, who is fast becoming a night manager, went to China a year ago, signed an MoU and locked it in his safe, marked “secret”, to be hidden from the public and not to be scrutinised? Why did the Government not publish it? They have published all the other MoUs that the Secretary of State has signed but not the one he negotiated with China a year ago. Why is it secret? Is there a reference to solar supplies from Xinjiang? Is there no reference to human rights? The Prime Minister has recently called for open government and honesty with the public. Surely, by locking it away out of sight, this is doing exactly the opposite; above all, to the local communities which are going to benefit from these solar initiatives. What is there to hide?