Tuesday
3
Sept2024
Contracts for Difference
Ministeral Statement
Summary
In the House of Commons debate, the Secretary of State for Energy Security and Net Zero, Ed Miliband, delivered a statement on the results of the sixth contracts for difference (CfD) allocation round. Miliband celebrated the record-breaking success of the auction, which secured 131 new clean energy projects, including over 9.6 GW of capacity - enough to power 11 million homes. This included a significant increase in solar, onshore wind, floating offshore wind, and tidal stream projects.
The Shadow Minister, Mark Garnier, acknowledged the success of the auction, noting that it built on the work of the previous government. However, he raised concerns about the cost of the projects, the impact on the green belt, and the government's plans for Great British Energy. Garnier questioned whether energy bills would actually fall as promised and whether the 2030 decarbonisation target was realistic.
In the debate that followed, members from across the House welcomed the progress made, with the Liberal Democrat spokesperson Wera Hobhouse praising the return of the CfD programme to success. Labour members such as Melanie Onn and Bill Esterson emphasised the importance of ensuring the clean energy projects deliver good jobs in local communities. The SNP's Dave Doogan highlighted the significant Scottish contribution to the auction results.
There was some criticism from Conservative members like Richard Tice, who argued that renewable energy remains more expensive than fossil fuels. However, Miliband robustly defended the government's clean energy strategy, insisting it was the only way to provide true energy security and lower bills in the long-term by reducing reliance on volatile global gas markets. The debate covered a range of related issues, including the need for grid upgrades, support for community energy projects, and concerns over the use of Chinese-made solar panels.
Overall, the debate demonstrated broad cross-party support for the expansion of renewable energy, while also highlighting ongoing disagreements over the pace, cost, and implementation of the government's decarbonisation plans.