Clean Energy Projects

Wales is leading the UK’s clean energy mission and secured two major projects in the UK Government’s contracts for difference scheme last week: Erebus, which is Wales’s first floating offshore wind project in the Celtic sea, and Awel y Môr offshore wind farm, off the coast of north Wales. It is the most successful auction round in European history, and a huge vote of confidence in Wales’s clean energy sector, which will deliver thousands of good jobs.

Meur ras ha myttin da. I was delighted to see the Erebus project in the Celtic sea secure a contract for difference in the highly successful auction round. It is fantastic news for the floating offshore wind sector—the new frontier in renewable energy generation—and for local supply chains. Does the Secretary of State agree that we now need long-term investment in those supply chains, not just in Wales but in the closest land mass to most of the Celtic sea projects, which is Cornwall, so that our Welsh cousins can support the unleashing of the Cornish Celtic tiger?

I entirely agree with my hon. Friend that investment in our offshore wind sector is integral to realising our potential as a clean energy superpower, and to creating thousands of high-skilled jobs in Wales and among our Celtic cousins in Cornwall. That is why last week’s auction round was such an historic moment, and why this Labour Government have announced a landmark £1 billion clean energy supply chain fund to deliver offshore wind, with £300 million from Great British Energy, £400 million from the Crown Estate and £300 million from the offshore wind industry.

The Secretary of State quite rightly mentioned the jobs and growth that will result from the projects at Awel y Môr and Erebus in the Celtic sea, but the price in auction round 7 was 40% lower than the equivalent for new gas-fired power stations, and Putin’s latest remarks have reminded us of the volatility of the gas price. Does she agree that Welsh consumers will benefit from cheaper bills, and that the projects will give us greater security, as well as the benefits she outlined earlier?

My hon. Friend is absolutely right. This was the most successful auction round in European history, as I have mentioned. Awel y Môr is the first offshore wind project in Wales to win a contract in over a decade, and Erebus will be Wales’s first floating offshore wind farm. These projects will power almost 1 million homes and bring £2.6 billion of investment to Welsh coastal and industrial communities, but as he says, and most importantly, they will create thousands of jobs and bring down bills as we produce more, cheaper clean energy and gain our energy independence.

I, too, congratulate the Government and welcome last week’s announcement of the most successful European auction round to date. It is great news for the UK and for our action on climate change, and it bodes well for the full Celtic sea floating offshore wind opportunity, which is important for Exeter, the wider south-west and Wales too. Will the Secretary of State explain how this landmark step forward for offshore wind will mean new jobs and lower bills for constituents in Exeter, Wales and right across the country?

The Celtic sea is at the frontier of our green energy revolution. The capacity for offshore wind will support over 5,000 new jobs and bring billions of pounds of investment. Erebus is a test and demonstration project and will kick-start the early development of FLOW in Wales, ahead of larger projects being advanced through the Crown Estate’s three FLOW sites in the Celtic sea that have been leased to Equinor, Gwynt Glas and Ocean Winds. I cannot stress enough that this is a once-in-a-century opportunity for Wales, as it is for the south-west. That is why this Labour Government are doing whatever it takes to realise that potential.

When it comes to clean energy, I think we are all delighted to see that a new nuclear power plant will be constructed in Wales. Does the Minister agree that it is worse than a crying shame—in fact, it is a disgrace—that the Scottish Government set their face totally against any nuclear developments in Scotland, such as at Dounreay in my constituency?

I thank the hon. Gentleman for raising this issue, particularly as it is Nuclear Week this week. We have announced the new fleet of small modular reactors at Wylfa, which are expected to support 3,000 jobs at peak construction and to power up to 3 million homes, with the capacity for further fleets in the future. I am not sure why the Scottish Government refuse investment in nuclear. Not only do they waste money, but they refuse investment and jobs in their own country.

I thank the Secretary of State very much for her answers, and she is absolutely right to develop green energy and clean energy. The Irish sea separates Northern Ireland and Wales, and the winds blow up and down the west coast of England and Wales and the east coast of Northern Ireland, which is something we can all take advantage of. Has she had an opportunity to discuss working with the Northern Ireland Assembly and others to take advantage of that, and to discuss the future potential for us all?

I would be very happy to have a conversation with the hon. Gentleman about that. We are investing in our green industries because that is how we will bring down bills for everybody, secure our energy supplies for everybody, and create jobs and improve living standards for everybody.

I call the shadow Minister.

Mid-Wales is beautiful, but plans for 200 metre tall wind turbines in Radnor forest—turbines twice the height of Big Ben—will blight the landscape, impact local communities and harm the area’s vital tourism sector, and we are seeing similar proposals across Brecon and Radnorshire. The concerns of local communities, businesses and councils must be properly considered in planning decisions for energy infrastructure, not simply overridden by Government Ministers in Cardiff Bay to meet their own agenda. Does the Secretary of State agree?

The hon. Member obviously does not want energy bills to come down, does not want jobs in mid-Wales and does not want the investment to happen. Labour is the only party committed to our renewable energy revolution. Plaid, the Greens and the Lib Dems all try to block renewable infrastructure, while the SNP rejects the jobs, as we have just heard; and now the Tories and Reform do not want this revolution, but want to scrap net zero altogether.

I call the Liberal Democrat spokesperson.

The Secretary of State has been highly critical of the legitimate concerns that my constituents have raised about the numerous wind farm proposals across mid-Wales. Now the Ministry of Defence has raised its concerns that at least one of the proposed wind farms has the potential to form a physical obstruction to air traffic movements and military activities at the Sennybridge training area. If the Labour Government will not listen to the concerns raised by my residents, will they at least listen to their own military?

I thank the hon. Member for his question, but can I suggest that he raises that with Defence Ministers? If he would like to contact me afterwards, I am happy to raise that with the Secretary of State for Defence.

Diolch yn fawr, Llefarydd. On 9 January, Consumer Energy Solutions went into administration, and 300 people across Wales lost their jobs. In my constituency alone, more than 40 households have told me that they have been left in limbo, often without heating or hot water, and many of these people are elderly or ill. Given that the right hon. Member’s Government scrapped the energy company obligation 4 scheme abruptly, what support will be provided to make sure that householders are not left to pay after CES walks away?

I thank the right hon. Lady for raising the matter, and I really do feel for people who have found themselves in this situation, including her constituents, through absolutely no fault of their own. She will know that we inherited this scheme from the Conservative Government, and both ECO and the Great British insulation schemes had well-documented problems, which is why we took decisive action to end them. We are urgently working with scheme providers to ensure that customers of Consumer Energy Solutions are supported, and we will provide further updates as soon as possible.

We are expecting an announcement on the warm homes plan, which is of course to be welcomed, but we cannot rerun the errors of ECO4. An investigation by the National Audit Office into wall insulation revealed fraud and shoddy work. Will the Secretary of State therefore join me in calling for a public investigation into ECO4 air source heat pumps and solar panels, so we get a full, independent evaluation of the incidence of bad practice, questionable profits and fraud?

I simply say what I have already said to the right hon. Lady, which is that we inherited these schemes; they had well-documented problems, and that is why we have taken decisive action to end them. She will have seen our announcement today on the warm homes plan and the £15 billion fund to help people across the country.