PARLIAMENTARY DEBATE
Contracts for Difference - 3 September 2024 (Commons/Commons Chamber)

I call Ed Miliband to make a statement on contracts for difference.

I congratulate you on your new role, Madam Deputy Speaker.

With permission, I would like to make a statement about the sixth contracts for difference allocation round.

It is less than two months since the Government came into office with a mandate to fix the foundations and make Britain a clean energy superpower. The last Government left this country exposed to international fossil fuel markets. As a result, every household and business paid the price in the worst cost of living and energy bills crisis in memory; because of Britain’s particular exposure, families and businesses in our country were hit harder than others.

The only way to provide this country with the energy security that the British people deserve is through home-grown clean energy that we control. That is the mandate on which this Government were elected, and that is what we will deliver.

Last year’s contracts for difference auction, under the previous Government, was a fiasco. No offshore wind projects were awarded, which was a disaster for the industry and for our efforts to move away from dependence on fossil fuels. In July, when we came into office, I made the decision to expand the budget for this year’s auction by 50% to maximise the amount of home-grown clean power we could secure while delivering value for the British people, and today the results are in.

I can announce to the House that we have secured a record-breaking 131 new clean energy projects: more projects for our country as a whole than any previous auction; more projects in England, more projects in Scotland and more projects in Wales than any previous auction; over two and a half times the capacity secured in last year’s auction; nearly 10 GW of clean, home-grown power, enough to power the equivalent of 11 million homes; the most successful renewables auction in British history; and a major step forward in our mission to make Britain a clean energy superpower and to help Britain get off the rollercoaster of volatile global gas markets.

Let me set out the results in detail. First, solar is one of the cheapest and most readily deployable energy sources at our disposal. We have secured a record 93 solar photovoltaic projects, the largest number of solar projects ever in an auction, unlocking 3.3 GW of new solar, which is a 20% increase on our installed capacity.

Secondly, we have secured almost 1 GW of onshore wind. However, I must report to the House that, thanks to the Conservatives’ near total ban on onshore wind, there was just one small onshore wind project in England of 8 MW. Their nine-year ban destroyed the pipeline of projects. That is why this Government lifted the onshore wind ban in England as one of their first acts. Our onshore wind taskforce will now go about the process of working with industry to rebuild the pipeline of projects.

Thirdly, this auction was a success for the emerging technologies that will serve our country in the future. Floating offshore wind offers a huge opportunity in every part of Britain. The last auction secured no floating offshore wind. On coming to office, I was presented with a budget that risked repeating the mistakes of the past, so I took the decision to more than double the budget that covers this cutting-edge technology. I can report to the House that today’s auction has secured a 400 MW floating offshore wind project, more than 10 times bigger than the previous biggest floating offshore wind farm in Britain.

At a lower price. This floating offshore wind farm alone is double the size of all of Europe’s installed floating offshore wind capacity. In addition, on tidal, where Britain has huge leadership opportunities, we have secured six new tidal stream projects at the lowest ever price.

Fourthly, on fixed offshore wind, in contrast to the zero GW secured in last year’s round, we have secured 4.9 GW of offshore wind, enough to power the equivalent of 8 million homes. That includes securing both the largest and second largest offshore wind projects in Europe—Hornsea 3 and Hornsea 4 off the Yorkshire coast. An industry flat on its back because of the mistakes of the last Government is back on its feet thanks to this Government.

I can also report to the House that across the whole auction all these results were secured at prices well below the maximum price limit—prices that demonstrate that wind and solar are the cheapest sources of power to build and operate in our country. For the House’s benefit, that means a clearing price for offshore wind that is five to seven times lower than electricity prices driven by gas at the peak of the energy crisis.

The success of this round does not just offer greater energy security for the British people; it also offers the possibility of good jobs throughout Britain. But that will not happen without action by Government, because we know that too often in the past renewable energy produced in Britain has not created enough good jobs in Britain. With Great British Energy and our national wealth fund, we will invest to make sure our clean power mission produces jobs in every corner of the United Kingdom.

This Government have been in office for less than two months. In that time, we have lifted the onshore wind ban, consented more nationally significant solar capacity in one week than the last Government did in 14 years, and now delivered the most successful renewables auction in the history of the country. And on Thursday we will debate the Second Reading of the Great British Energy Bill. This is a Government in a hurry to deliver our mission: energy security, lower bills, good jobs and tackling the climate crisis. I commend this statement to the House.

I call the shadow Minister.

I am grateful to the Secretary of State for the timely advance sight of his statement. I would like to put on record that Members on the Opposition Benches welcome the success of the contracts for difference allocation round 6. The Secretary of State is right to be proud of that achievement by the Government. It is to be celebrated that we, as a country, are creating an extra 131 clean energy projects that include 5 GW of offshore wind farms and 3 MW of floating wind.

The Secretary of State will be grateful to the previous Government for setting up the details of auction round 6 last November. The previous Secretary of State recognised the problems of AR5 and the price set for offshore wind—a price that was set before a round of inflation that made the CFD strike price cap too low for the producers. By the way, this was not just a UK problem; it affected other projects for offshore wind around the world. Increasing the strike price by around 60% to the current AR6 price of £73 has been crucial to securing the current success. Of course, in addition, the previous Government had many other successes. In 2010, just 7% of our energy needs were supplied by renewables. Today it is nearly 50%. This has come from many initiatives, not least bringing in the contracts for difference auctions in 2014 and making the auction process an annual event—an initiative that was learnt from AR5 problems.

It would not be fair to ignore the contribution by the new Secretary of State. As he said, he has increased the pot for this year’s auction by 50%. While that is welcome—frankly, who would not welcome more renewable energy—that does not tackle our energy issues. At the same time as increasing renewable energy production, the Government are decreasing UK gas production. The UK needs reliability of supply of energy, but we all know we cannot predict with any certainty when the wind will blow and the sun will shine. That is why we need baseload, dispatchable energy that can supply the energy needs of our homes and economy.

We recognise the importance of investing in renewables to deliver clean energy, and the 9.6 GW announced today is a brilliant step in the right direction, but given these successes, and his self-declared success today, why does the Secretary of State plan to saddle the country with billions in debt to fund Great British Energy? In previous months, he may have answered that question by saying that the purpose of GB Energy was to cut energy bills by £300. However, we note that his promise to cut energy bills seems to have gone missing, much like the winter fuel payments of 10 million pensioners.

Despite the Secretary of State’s pledge, and that of many hon. Members on the Government Benches, he will be aware that energy bills are in fact going up. Can he confirm when bills will fall, and by how much? Pensioners are not the only ones being impacted by this Government’s ideological energy targets. As I have already mentioned, the Secretary of State banned new oil and gas, which will cost 200,000 oil and gas workers their jobs. Research conducted by the industry predicts that that move will see tax revenues from that industry fall by £13 billion by 2030.

The Opposition welcome the Secretary of State’s ambition to make sure that the jobs created by the transition are located in Britain, but, at this stage, the majority of jobs in the solar and wind sectors are located in China. What steps is he, as the current Secretary of State, taking to ensure all the jobs created through AR6 are located in Britain? He has already made a bit of a habit of riding roughshod over the concerns of local communities, approving developments without regard to the concerns of local communities. These decisions will see some of Britain’s green belt and best agricultural land developed. Will the Secretary of State confirm what share of today’s investment will take place on the green belt? What protections is he putting in to protect the green belt?

The Secretary of State has spoken at length about the need to overcome challenges facing the grid. In Government, we delivered a 500% increase in the amount of renewable energy connected to the grid, but we recognised that so much more needed to be done. What steps is the Secretary of State taking to support this further increase? Has he investigated undergrounding? What plans does he have to protect the countryside from more pylons?

I note that the Secretary of State today recommitted to decarbonising the grid by 2030. We have previously warned him of the risks of being over-ambitious, which include leaving families facing the cost. It is not only the Opposition who have warned him of that—Chris Stark, his newly appointed head of mission control, once described the 2030 target as “over-ambitious”. Will the Secretary of State please share exactly what his head of mission control believed to be over-ambitious about a 2030 decarbonisation target? His head of mission control also warned that it was entirely fair that people are concerned about the cost of decarbonising by 2030. Will the Secretary of State confirm that neither taxpayers nor bill payers will be left with the cost of the 2030 target? Will he tell the House when we will see a proper, comprehensive estimate for the full systems costs of his decarbonisation plans for 2030?

In conclusion, the Opposition welcome the fact that the Secretary of State has built on our successes in boosting renewable energy. However, we hold serious concerns about what this round will mean for Britain’s green spaces and whether, given the increased cost of AR6, his commitment remains to cut bills by £300.

I congratulate the hon. Gentleman on his elevation since the election. I look forward to our exchanges in this House. I say him to gently that the crucial first phase of Opposition, in my experience, is having a bit of humility to admit where they have got things wrong. I do not deny that some of the things that the previous Government did were right, but quite a lot of what they did was wrong—for example, the nine-year ban on the cheapest, cleanest form of power, the blocking of solar projects across the country and the crashing of the offshore wind market, which led to the worst energy bills crisis in generations. That is their legacy, and at some point some of the leadership candidates will have to face up to that.

Let me deal with the hon. Member’s specific points. If I may say so respectfully, I feel like he answered some of his own questions. He draws attention to the fact that energy bills are rising from 1 October. He is right about that, and that is deeply regrettable. Why is that happening? Because we are exposed to international gas markets. This is about power that we do not control. Every solar panel that we do not put up, every onshore wind turbine that we do not erect, and every piece of grid that we do not build leaves us more exposed. The Conservative party is in a dilemma on this, because it is facing both ways, but it has to face up to that fact. Of course we will have a proper and orderly transition in the North sea, keeping existing fields open for their lifetime and having a just transition for the workforce, but the idea that the Conservative party and some of its erstwhile friends are clinging to—that fossil fuels will get us out of this—is completely belied by all the facts and the crisis that we went through.

The shadow Minister says—and I agree with him—that we need to have jobs in this country. He says it as if he finds it hard to remember who has been in power for the past 14 years. It is terrible, he says, that everything is being produced elsewhere. He is right. Germany has almost twice as many renewable energy jobs per capita as the UK. Sweden has almost three times as many, but, most interestingly, Denmark, with its publicly owned energy company, Ørsted, has almost four times as many.

The hon. Gentleman asks about Great British Energy. We will debate that matter on Thursday, but one reason why we went to the electorate on this point and were endorsed on it is that, unless we have a publicly owned national champion, all the evidence is that the jobs will go elsewhere. That is part of having a basic industrial policy.

The hon. Member talks about solar energy, but, again, he has to make up his mind about where he is on this. He says that he agrees that we need clean energy in this country, and that we have to get off the international gas markets, but the problem is that the Conservatives duck every difficult decision. Then he asks about undergrounding. The Conservatives were in power for 14 years, so they had plenty of time to do the undergrounding of all the cabling. Why did they not do that? It is because they know that it is multiple times more expensive. Now they come along, less than two months after the general election, and say that it is time for some undergrounding of the grid. For goodness’ sake! I have experience of being Leader of the Opposition. Perhaps it is time for the Conservatives to have some private tutorials on how to be in opposition.

It is great to see my right hon. Friend in such ebullient spirits. I have to say that his enthusiasm can only be matched by that of the industry, which today has roundly welcomed the decision that he took back in July to increase the size of this auction. That demonstrates that, if we have a Government who are consistent, positive and ambitious, the industry will respond and will back their plans. Can my right hon. Friend assure the House that the great start that he has made will be continued with a consistent plan under this Government, so that businesses can invest for the long term, knowing that the Government will always back them?

My hon. Friend makes a typically eloquent point. This is about a partnership with private industry. The truth is that much of the investment that we need for the clean power mission will come from the private sector, and I suspect that there is cross-party agreement on that. We on the Government Benches have a difference with the Opposition, though, because we believe that a lot of that comes from breaking down the barriers to planning and grid infrastructure, which is a massive challenge for supply chains and skills. There is also a role for what we call catalytic public investment, levering in extra private investment.

The other point that my hon. Friend makes is absolutely right. There is huge enthusiasm in the private sector and industry more generally for this sense of mission for the country. We want this mission to involve every business that has an interest in this area, and I believe that we can achieve that.

I call the Liberal Democrat spokesperson.

We Liberal Democrats very much welcome the results of this round. It is a significant improvement on last year, when the previous Conservative Government completely failed, with zero bids from the onshore wind developers.

The results show that the CfD programme is back on track. They demonstrate the power of industry and Government working together to identify a fixed problem, so that we can widen the level of private sector investment we bring in, which is required for a clean power system transition.

Britain’s unique geography, with its abundance of natural resources, is an asset. We must harness the wind and the world’s largest tides. It is hugely encouraging that a record-breaking amount of solar capacity has been procured. Whatever the Conservatives are saying now about their record in government, solar targets were repeatedly missed, and this round is a welcome change. Unlike the Conservative Government, who, as has been pointed out, left us at the whim of the global oil and gas market, this Government are making choices that will increase our energy independence and lower energy bills for our consumers.

Future allocation rounds, especially in the next few years, must continue to deliver increasing quantities of renewables. That can be achieved by setting ambitious budgets and bringing forward incremental reforms of the CfD regime. Can the Secretary of State assure me that this round is not just a one-off and that we will increase the pace of the CfD allocation rounds?

I thank the hon. Lady for her support and the warm tone that she uses. She is right that we face a big challenge as a country to get moving on the offshore wind Bill, the onshore wind Bill, solar on rooftops and ground-mounted solar. The truth is that CfD auctions have served us well and continue to do so. We inherited this auction halfway through the round, and we increased the budget substantially to make sure that it was a success. But the right thing for us to do—I think this is the main point that she is making—is to talk to industry about how we can make sure that future rounds are a success. I am very interested in how we can have a line of sight for industry, so that it can have the industrial certainty to plan ahead. The annual auction round is serving us well, but we need to work with industry to make sure that we land the clean power that we need and get the jobs here too.

The Secretary of State is right to point out that the previous Government presided over the failed fifth auction round for the offshore wind sector. It was devastating. I congratulate him on achieving success for this important industry, but part of the measure of that success will be the wider industrial benefits, including good jobs. What action will he take to make sure that coastal communities such as mine see those jobs, as well as training and manufacturing?

My hon. Friend speaks with great experience—from both inside and outside this House—and I welcome her expertise on these issues. She is absolutely right that we have to face up to the fact that we are in a global race for these jobs. Investors are trying to decide whether to locate their blade factories and other investments in the UK or elsewhere. That is why we went into the election with a range of measures, including Great British Energy, the national wealth fund and the British jobs bonus. All are designed to achieve the re-industrialisation that my hon. Friend is talking about.

What consideration has the Secretary of State given to proposals for an interconnector from north Africa to the UK, bringing reliable solar and wind power at times when the wind is not blowing here and the sun is not shining?

I shall address this question at a more general level, for reasons the right hon. Gentleman might understand. I think we should be looking at all proposals that can maximise energy security. He is talking about the Xlinks proposal. I am obviously aware of that proposal, and know that we need to look at it in the broadest way. My view has always been that we need every source of power available, which is why I embrace nuclear, onshore wind, offshore wind, solar, tidal, carbon capture and storage—[Interruption.] And absolutely, as the right hon. Gentleman says from a sedentary position, oil and gas also have a crucial role in the transition.

My right hon. Friend is correct that clean energy is by far the cheapest way to power the UK, as confirmed by industry bodies today in welcoming his announcement, but there will be intense international competition for investment. How does he foresee ensuring that we have the competitive advantage in attracting that investment for years to come?

Again, my hon. Friend speaks with great expertise. Part of it is about is having a Government who are committed to a proper industrial strategy and have the levers to make that strategy happen. There was an interesting divide between the Opposition, when they were in government, and us. Although, of course, America is a different-sized country from us, we see the Inflation Reduction Act as offering real lessons to us about how we can lever in private investment. We will not be able to do it on the scale of that Act, but these interventions can make a difference. There is also this crucial point: we care where the manufacturing happens, and we are determined to make sure that it happens in the UK.

I am interested by the hon. Gentleman’s intervention, because his manifesto is basically higher bills and to make people poorer. We do not need to look into the crystal ball; we just need to look at the record. The truth is that the cost of living crisis—the energy bills crisis—casts a long shadow in this country. It was caused not by a dependence on renewables but by our exposure to fossil fuels. He just needs to understand this basic point: whether fossil fuels are produced in this country or internationally, they are sold on the international market, and that is why the British people paid the price and the Government forked out £94 billion. The only way to get off the rollercoaster of international gas markets and take back control is to become a clean energy superpower.

I thank my right hon. Friend for his statement. This allocation round is testament to the continued success of the contracts for difference scheme. As we are now on course to produce more renewable energy than ever and we need to get that power to consumers, does he agree that we need the same political and financial commitment to the development of transmission infrastructure as we do to renewables?

I welcome my hon. Friend’s question. We need to be honest about this: we face what we can only describe as a crisis with our grid situation, because we have people wanting to connect to cheap, clean renewables and being offered dates in the 2030s—often late in the 2030s. We have industrial investments that we need to happen, for which dates in the 2030s are offered. Grid reform and, as part of that, planning reform is absolutely crucial for this Government and for any Government who are serious about this. I am afraid to say that the legacy of the last Government is disastrous when it comes to the grid. We will build the grid, and I look forward to support from all parts of the House from those who want to tackle fuel poverty and want lower energy bills.

Fair play to the new Secretary of State: 5.3 GW of offshore wind is a great achievement, especially compared with the flat zero achieved by the Tories in auction round 5. It unlocks the vital Inch Cape array off my Angus constituency coast, and supports jobs in Montrose, as well as in Moray West, and there is also the game-changing Green Volt floating array off the north-east coast of Scotland. He highlights 1 GW of onshore wind, 8 MW of which is coming from England. Will he tell the House where the rest of that onshore energy is coming from? His target is 60 GW by 2030. How will he achieve that 9 GW a year from now until 2030?

I welcome the first part of the hon. Gentleman’s question, and even the second part. The only way this will work is if, whatever our differences—and we have large differences—we work on this task with every Government across the United Kingdom, whatever kind of Government that is. Gillian Martin, the Cabinet Secretary in Scotland, and I have had many conversations —probably more in a couple of months than were had in many years under the previous Government. That deliberate example of “country first, party second” has been set by the Prime Minister. We want to work with Governments across the UK to get the renewables revolution that we need if we are to make Britain a clean energy superpower.

It is a pleasure to welcome my right hon. Friend to his place, and to see him continuing to champion this really important change, which our constituents up and down the country have been crying out for. One of the key issues we find when we go into people’s homes is fuel poverty; it is real. Constituents talk about not being able to heat their home—that is the reality for many of my Vauxhall and Camberwell Green constituents—so they will welcome this announcement, which will mean cheaper bills and cleaner energy. Does he agree that we need to get on with this as quickly as possible? Given that bills are to increase from 1 October, residents want action from this Government at a fast pace, so that they can see their energy bills come down.

My hon. Friend is 100% right, and she puts it incredibly well. It is hard for Governments of all stripes to admit this truth, but when the 1 October price cap was announced, these matters were not within the previous Government’s control, and would not have been within ours, because of our exposure. These prices are set internationally. When Putin or the petro-states make decisions, they rebound on my hon. Friend’s constituents, and the only solution is our clean energy superpower mission. The truth is that it will take time, and it will be hard for her and my constituents, and the constituents of those across the House, but the answer has to be to go as fast as possible, because that is what gets us energy security and lower bills.

I warmly congratulate the Secretary of State on his appointment; he is the perfect example of a political renewable. As politicians, we all have a great deal to contribute to onshore wind. More seriously, does the Secretary of State share my concern that The Guardian last year and The Daily Telegraph this year both drew attention to the Chinese exploitation of Uyghur slave labour in the manufacture of so many solar panels? Other countries have been banning their import. How does he propose to deal with the matter, because I am sure that he shares my concern that we should not profit on the back of that sort of disgraceful exploitation?

I thank the right hon. Gentleman for his kind words. He raises an incredibly serious and important issue. When I came into Government, I asked for discussions across Government on this. Controls were in place, to be fair to the last Government, and as part of the ongoing solar taskforce, these issues were being looked at, but we need to kick the tyres on this, to make sure that the proper controls are in place. My Department is very happy to have discussions with him and other interested parties on those questions.

I thank my right hon. Friend for his statement, and his tireless campaigning in favour of unleashing our renewable energy potential. As he knows, Cornwall is ready, willing and able to play a full part in the renewable energy transition. Can he outline his plans to support smaller, co-operative, community energy projects? When it comes to those, once again, Cornwall stands ready to act.

My hon. Friend asks a very important question, which gives me a chance to advertise the Second Reading of the Great British Energy Bill on Thursday. All are welcome—standing room only! As part of our plans for Great British Energy, we allocated £3 billion of the £8.3 billion that we set out in the election for what we call the local power plan to do what other countries such as Denmark and Germany do as a matter of course: unleash local renewables, with local communities, councils, community groups and co-ops being part of that. That is important, because it is a way to tackle fuel poverty and generate income for local communities. It is also important as a way of winning consent from local people. I look forward to my hon. Friend and others making a contribution on this question in that debate and others.

If, as the Secretary of State says, he wants to offer a line of sight for industry, he should look more closely at the opportunities that come from the development of tidal stream, particularly through the creation of a supply chain from the ground up; that is always easier than recovering one that has already gone overseas. But that line of sight has to go in both directions, which is why developers in tidal stream energy are asking the Government to set a 1 GW deployment target. Will he listen to those representations now, and act on them?

When I came into office and examined the issues around pot 2, which covers tidal, I was very keen to make sure that we increased the tidal minimum, which we did by 50%. These are important discussions to continue. There is a dilemma here, as the right hon. Gentleman will know, which is that tidal remains relatively expensive, but the point of the tidal developers is that many technologies remained expensive until they were deployed at scale. These are hard questions, because they are about value for money and how much we invest in tidal, but my Department needs to have those important discussions.

I congratulate the Secretary of State and his Department on their excellent work. Given all that we have heard from the shadow Minister today, does my right hon. Friend agree that this Government’s record success shows that the main block to the sprint to renewables was the Conservative party?

My hon. Friend makes an important point about the legacy of the last Government. To widen her point, I would say to Members across the House—we need to be candid that this is hard for us as constituency MPs—that there is a need to connect debates in this House about fuel poverty and energy bills and the decisions that are being made in our areas. Candidly, unless we build the grid, solar and onshore wind, we will never get off the rollercoaster of international gas markets. All of us face a choice. We need a public debate about this, because if we are to tackle fuel poverty and do the things that I described, building is required, and we need to make that happen.

I gently say to the Secretary of State that he promised at the general election to bring energy bills down by £300. They are now going up by 10% in October. When will my constituents see the reductions that those in his party promised—or did they not mean it?

I think that tonight, the hon. Gentleman will think that that was not a very smart point to make. Weeks after we came into office, the price cap went up. I have explained why the price cap went up—because of our reliance on international gas markets. The decision that he has to make is this: does he support our mission to make Britain a clean energy superpower in order to bring bills down, or does he not?

There is one notable absence from the allocation round results today, which is Berwick Bank wind farm. Located in the North sea, Berwick Bank has the potential to deliver up to 4.1 GW of clean electricity, and to lead to further investment in the supply chain and manufacturing. The port of Leith in my constituency is a prime location for the project, but we are still waiting to hear about the consent. Can the Secretary of State confirm that he will push the Scottish Government to speed up their section 36 consent process, so that Berwick Bank can come forward in the next allocation round and we can get on with delivering a sprint to clean energy?

I am glad that my hon. Friend has raised that point. We face planning decisions and questions at a policy level, if I can put it that way, right across the United Kingdom, including in Scotland and in England. We will work with the Scottish Government and others to make sure that we have a planning system that is fit for purpose, and that can build the clean energy that we need.

This Secretary of State is living in a completely different world from my constituents, because they are not asking for this on the doorstep at all. By the way, he is quite happy to spend £11.6 billion on climate aid abroad and £8.5 billion on GB Energy, yet rob our pensioners of £300 at the same time. But I will give him the benefit of the doubt. When will my pensioners in Ashfield receive significant discounts on their fuel bills, and of how much?

I thought that the hon. Gentleman’s party supported a publicly owned energy company, but I may be wrong about that. I can absolutely say that this is the way to deliver lower bills for his constituents. [Hon. Members: “When?”] Members can shout all they like—I know that this is hard for the hon. Gentleman—but the reality they must face is this: does he believe that a continuing reliance on fossil fuels, and this country saying no to renewables, which I think is their position, will give us energy security? The truth is it will not. [Interruption.] The hon. Gentleman says that he agrees with me; well, I look forward to him supporting our clean energy superpower mission.

I welcome this phenomenal, record-breaking achievement from the Secretary of State, which represents a significant milestone towards clean power by 2030. Let us see more projects in Burnley. Does he agree that the best way to protect my constituents’ energy bills from price shocks, and the patriotic thing to do, is to ensure our nation’s energy security through home-grown clean power? That will lower energy bills and give tyrants like Putin a bloody nose at the same time.

I agree 100%. The notion that our exposure to fossil fuels as a country gives us security is belied by what has happened over the last few years; as the Prime Minister often says, it means that Putin’s boot is on our throat. My hon. Friend talks about this patriotic mission, and he is completely right. Other parties in this House have a decision to make on Thursday: will they support the Great British Energy Bill? We have public ownership of our energy system in Britain—foreign public ownership, by state-owned companies from abroad. We welcome that investment, but we also want British public ownership. I very much hope that other parties will learn the lessons of their election defeat and support our Bill on Thursday.

To be helpful to Members, I gently point out that it is important that they be here for the start of a statement if they wish to be called to ask a question. I will be very kind today. I call Claire Young.

Thank you, Madam Deputy Speaker. I thank the Secretary of State for his statement. The latest allocation round is good news and should be welcomed, especially after the fiasco of the last round. It is vital that Britain invests in our sustainable green energy production, so that we can guarantee our energy security and lead the world as a green powerhouse. However, the only way that we can achieve that is if we also push ahead with energy storage and ensure that we boost our capacity to retain the energy that is generated, so what steps is the Department taking to accelerate the roll-out of new storage solutions, including green hydrogen?

The hon. Lady, whom I welcome to her place, makes an important point. We often get questions about what to do in an intermittent system. We need different forms of both dispatchable power and energy storage. One project that my Department is working on—continuing some of the work of the previous Government—is long-duration energy storage and battery technology. Personally, I think that the system continues to underestimate the potential role of battery and long-duration storage, and we will say more about that in the months ahead.

The Conservatives continue to oppose our publicly owned clean power company despite widespread public support for it, including in my constituency. Does the Secretary of State recognise the absurdity of the Opposition’s arguments? They are quite happy for public ownership of energy in this country, as long it is by foreign Governments, not UK citizens.

My hon. Friend, who has great expertise on these issues, makes an important point. We welcome the success of Ørsted in today’s allocation round for the Hornsea wind farms. It is great for Danish taxpayers that they will get some benefit from it, and it is great for Britain that we will get the investment, but as the Prime Minister often asks, why not Britain as well? Why should we not invest in clean energy? Why should our taxpayers not benefit from this? Why should we not create jobs in this country as well as accelerating clean power? It seems a simple and logical proposition to me.

The Secretary of State will know from his recent visit to Telford that businesses right across the country, including in my constituency, want to partner with the Government on this agenda. Will this statement and future announcements mean that those private sector businesses, which want to put their skills and money into this agenda, and take risks on behalf of the Government and the country to make us a clean energy superpower, have the Secretary of State’s backing?

My hon. Friend is absolutely right. I very much enjoyed my visit to Telford, where I spoke with local business. It is easy to think about these things in very macro terms, of how many gigawatts and so on—the kind of thing I like talking about—but he is right that this is as much, if not more, about all the jobs that we can create in the supply chain. People in this country want hope and change, and this will deliver it.

I welcome the auction increasing solar capacity. There are great projects in my constituency, funded via that scheme, such as Hessay solar. Will the Secretary of State visit sunny York to see the site once it is complete, and does he share my conviction that solar will be critical in the energy mix if we are to reduce our dependence on foreign oil and gas?

I very much welcome my hon. Friend’s embrace of solar as part of the energy mix. It is really important to say this: we need more rooftop solar. Lots of people in this House ask, “Why don’t we do more on rooftops?”, and I agree with them. There is also an important role for ground-mounted solar, however. I very much look forward to coming to York at some point to see the projects he talks about.

I welcome my right hon. Friend’s statement, for which I thank him. It is incredibly exciting and marks a complete change from Conservative party policy. The Celtic sea, off the coast of my constituency, has the unique conditions of deep water and strong winds, offering us the opportunity to be a global leader in the new technologies of floating offshore wind. However, those unique conditions require a unique approach from Government. As we look forward to allocation round 7, will the Secretary of State join me in working to refresh the approach in the auction so that more support goes towards FLOW projects in autumn 2025?

My hon. Friend is a great champion of floating wind in the Celtic sea. He is right: we are proud of the 400 MW project in this round. We need to look—including in the auction round, through GB Energy and in other ways—at how we can build on our advantages in crucial floating wind technology, take the opportunities that they provide, and have the industrial capacity. I look forward to discussions with him and other colleagues on how we make that happen.