05 Mar
Westminster Hall
Renewables Obligation Certificate Scheme

The debate in Westminster Hall revolved around the Renewable Obligation Certificate Scheme (ROCs), focusing on its critical role in supporting renewable energy projects, particularly biomass stations like Thetford in South West Norfolk. This biomassed power station, Europe's largest poultry litter-fuelled facility, is at risk due to the impending expiration of ROC support in 2027. Members of Parliament discussed the economic, environmental, and energy security implications of such potential closures.

Primary Points Discussed:

  1. Economic Impact:
    • Thetford power station supports 100 direct jobs plus additional roles within its supply chain.
    • Biomass facilities provide a critical income stream for poultry farmers by utilizing waste as a fuel source.
  1. Environmental Concerns:
    • The environmental benefits of biomass stations, including waste management by diverting poultry litter away from landfills and reducing CO2 emissions equivalent to removing 33,000 cars from roads annually.
    • Pollution concerns relating to nitrate run-off into local rivers and streams, potentially exacerbated by the loss of biomass facilities.
  1. Policy and Regulation:
    • MPs argue the need for government to respond promptly to the ROC expiration and introduce an alternative support mechanism.
    • Discussions included the possible bridging schemes or transition plans to replace current ROCs, which end in 2027.
54

Number of biomass sites in the UK relying on ROC support.

Ministerial Responses:

  • Kerry McCarthy (Minister for Energy Security):

    • Reiterated the importance of transitioning to cleaner energy but acknowledged the complexities involved.
    • The government is conducting analysis to examine potential impacts and alternative support.
    • Assurance of continuous dialogue with stakeholders.

Outcome:

12.9%

Percent of UK's electricity supplied by bioenergy as of 2021.

  • No decisions were made in the session. However, the dialogue will continue, emphasizing the criticality of timely government intervention to support biomass power stations and renewable energy priorities.

Key Statistics and Outcomes:

  • In the UK, 54 biomass power stations contribute significant renewable energy, with biomass being the second largest renewable resource, providing 12.9% of the national electricity supply in 2021.
  • The debate highlighted industry and local community anxiety over the lack of clarity on replacing the ROCs, with potential closure effects on employment and environmental regulation.
33,000 cars

Equivalent of CO2 emissions offset annually by Thetford power station.

Outcome

Parliament members across parties highlighted the urgency of devising a transitional plan post-ROC expiry, aligning with national goals for renewable energy, ensuring environmental protection and local energy security.

Key Contributions

Terry JermySpeaker
Labour

Highlighted the importance of Thetford power station in energy security and local economy, with significant contributions to renewable energy through biomass.

Jim ShannonSpeaker
DUP

Praised the focus on practical issues like the ROC scheme.

Mr Angus MacDonaldSpeaker
Liberal Democrats

Pointed out the cost disparity between energy prices in rural vs. urban areas.

Leigh InghamSpeaker
Labour

Underlined the role of renewable energy in job creation, particularly referencing local businesses like GE Vernova.

Jenny Riddell-CarpenterSpeaker
Labour

Reiterated the environmental and agricultural benefits of biomass energy.

Tim FarronSpeaker
Liberal Democrats

Highlighted the significance of ROCs for regional economic activities and environmental commitments.

Nick TimothySpeaker
Conservative

Acknowledged the achievements under ROC but critiqued its financial efficiency long-term.

Original Transcript
Mr Angus MacDonald
Inverness, Skye and West Ross-shire
LD

In rural Britain, particularly rural Scotland, the cost per kilowatt to heat a house is about 24p, whereas those on mains gas in the city pay about 6p, so those using renewable electricity to heat their houses pay four times as much as those using mains gas.

The renewables obligation certificate scheme is an important part of all this. Basically, rural Britain is getting absolutely stuffed on the cost of energy, so anything we can do to help those in rural areas is important. Does the hon. Gentleman agree?

Dr Andrew Murrison
in the Chair
14:46

I am grateful to the hon. Member for Strangford for the accolade. Maybe he knows something that I do not.

Jenny Riddell-Carpenter
Suffolk Coastal
Lab
09:44

It is a pleasure to serve under your chairmanship, Dr Murrison. I congratulate my hon. Friend the Member for South West Norfolk (Terry Jermy) on securing this important debate. My hon.

Friend told us about the role biomass that plays in delivering energy in the UK and specifically in the east of England.

I will not repeat what he said, but I will emphasise the valuable role that biomass energy production plays in the UK’s poultry and agriculture sectors, particularly from the perspective of my constituency of Suffolk Coastal.

Biomass energy production not only helps to support farms and food security, but plays a crucial role in environmental protection, helping to manage farm waste, preventing the spread of avian diseases and preventing toxic pollution from entering our rivers.

In Suffolk Coastal, our rivers are the jewel in our crown. If biomass energy production were to cease, poultry litter would otherwise be sent to landfill or spread on the land. If it is spread on the land, it causes significant nitrogen run-off into fragile local waterways.

That is already happening across the country and is responsible for much of the pollution in our rivers today. In the River Deben, phosphates and nitrates are already a cause for real concern about the river’s water quality, and those nitrates emanate largely from agricultural run-off.

If we reduce nitrogen, we reduce the impact of eutrophication, which is visible each summer in the excess growth of algae such as duckweed.

Therefore, although biomass energy production plays a role in the UK’s energy creation and in helping to prevent avian diseases, it also plays a critical role in improving the water quality in our rivers. Biomass operations rely on the ROC scheme, which starts expiring in 2027.

It is critical that we support the continuation of biomass energy production to ensure that we not only deliver on our net zero ambitions, but continue to support water quality improvement in our rivers in Suffolk by tackling nitrate run-off.

Mr Angus MacDonald
10:54

Does my hon. Friend recognise the fact that we have major issues with environmental tariffs being placed on renewable energy but not on the carbon fuel of mains gas? That is really hitting the renewable energy industry and the cost for consumers.

Dr Andrew Murrison
in the Chair

I call Opposition spokesman Nick Timothy.

Melanie Onn
Great Grimsby and Cleethorpes
Lab

By the time that the new renewables obligation closed, the cost of large-scale offshore wind had come down by half, allowing contracts for difference to be introduced, which have seen it grow at scale. It has enabled a brand-new industry to start and progress in this country, has it not?

Melanie Onn

The hon. Gentleman is being very generous. What he says is very interesting, but I am not entirely clear where he is headed.

Is this a shift in Conservative policy on green industry and the renewables industry, which they have previously championed, or is this just an attack on Labour’s plans because he does not like them?

Nick Timothy

I would never suggest that the hon. Lady has tracked everything that I have written through my career, but I have been making these arguments for a number of years.

The Leader of the Opposition has made the point that one of the things our party did not get right in government was setting ambitious goals on things such as energy policy without having a clear enough plan to deliver them.

My concern, and the concern of the Conservative Front Benchers, is that this Government are making not only a similar mistake but a graver mistake because of the speed and unilateralism of their energy policies. [Interruption.] I can see the hon.

Lady smiling, and I hope that is in approval of what I said.

Leigh Ingham

To clarify, is the Opposition’s position on the energy transition and energy security that the Government are moving too quickly for our country? Would they rather see a different approach?

I am interested in what the suggested approach is, given that we face an imperative in the international context, as others rightly pointed out.

Jim Shannon

Not for one second did I think the Minister was ignoring Northern Ireland—that was never the case. I just wanted to ensure that the relationship we have within this great United Kingdom of Great Britain and Northern Ireland played a clear part.

I was aware that the Minister for Energy is coming to Northern Ireland tomorrow and that he has regular discussions with the regional Administration, and that tells me why we are better off as part of this great United Kingdom of Great Britain and Northern Ireland—always better together.

Mr Angus MacDonald

I wonder if the Minister could put herself in the position of somebody from the island of Skye who wakes up in the morning, opens his windows, and sees beautiful mountains in the background —it is always sunny there and there are no midges.

He sees the wind turbines, but then he goes and looks at his heating and realises he is paying four times as much to get energy from those turbines. Meanwhile, there is negligible community benefit coming to that area. Can she position herself in that person’s or that household’s shoes?

Melanie Onn

The Opposition’s new-found position is apparently anti-ideological, but I have just read the article in the Telegraph—not my usual source of news—and it is in fact deeply ideological.

Furthermore, it now sets the Opposition against the reality of industry in coastal and remote communities that has been generating the jobs, apprenticeships and investment that have long been requested and needed by those communities.

Kerry McCarthy

My hon. Friend makes a valid point. I wonder whether the Opposition spokesperson has spoken to businesses on this matter because, in all my conversations with businesses, both in opposition and now in government, it is clear that they want certainty.

They need a stable investment environment if they are to make long-term decisions. They cannot invest in renewable energy, in industrial decarbonisation or in the economic growth this country needs without certainty.

We know that one reason why we are in the economic situation we are is the lack of stability and the economic chaos at times under the previous Administration, particularly under the predecessor of my hon. Friend the Member for South West Norfolk. Therefore, certainty is what we need to have.

Business is crying out for that. In places such as Grimsby, it is particularly important to have a place-based solution to the current situation, showing what the energy transition would look like in such places. I urge the hon.

Member for West Suffolk to take a bit of a tour, to talk to businesses and people who are trying to get much-needed investment into places such as Grimsby, and to see—I am not quite sure what his proposals are—what he can say to them on how to get long-term investment.

Jenny Riddell-Carpenter

Is a potential bridging loan being considered by the Department for the replacement of the ROC?

Terry Jermy

I am grateful to all hon. Members who have contributed to this debate.

It is right and proper that we have had contributions from Scotland, Northern Ireland and Stafford, as well as a strong representation from Suffolk—I am outnumbered, from a Norfolk perspective, but very grateful for their contributions. I am also pleased that a number of hon.

Members picked up on concerns specifically about avian flu, which we have debated in this Chamber a number of times. The Liberal Democrat spokesperson, the hon. Member for Westmorland and Lonsdale (Tim Farron), spoke about Putin not being able to control wind and solar.

I suggest that he cannot control our chickens either, and I am particularly pleased about that. The variety of biomass sources is key.

If we were to have a conversation about other forms of burning, I might have a different view but, frankly, chicken waste will keep coming whether we burn it or not—unless of course our chickens disappear, which I hope is highly unlikely—so this is an important conversation.

I am grateful to the Minister for recognising that this is a time-critical issue and that it interlinks with other Departments. The Liberal Democrat spokesperson made reference to my predecessor, who was, of course, synonymous with cheese, pork and lettuce.

I very much hope that I am not synonymous with chicken litter, but I will continue to raise this important issue on behalf of residents, and I am grateful for everyone’s contributions to this debate. Question put and agreed to.

Resolved, That this House has considered the Renewable Obligation Certificate scheme.

All content derived from official parliamentary records