Ed Davey
MP for Kingston and Surbiton · Liberal Democrat · United Kingdom
“I associate myself with the Prime Minister’s opening remarks, not least about the 25th anniversary of the horrific terror attacks of 9/11. I welcome the Government finally banning imports from illegal Israeli settlements, something Keir Starmer should have done a long time ago.”
“I thank the Prime Minister for that answer. Britain should be the safest country in the world to have a baby. We will keep raising this issue until it is the safest.”
“No mother should have to give birth in such circumstances. Does the Prime Minister agree that Musgrove Park cannot wait until 2033 for work to start on a new maternity unit? Will he offer a meeting to local MPs, so we can move it forward? And will he make fixing the maternity scandal across our country a top priority of his Government?”
“I hope at that summit the Prime Minister will negotiate a good deal for our country, our economy and our defence, and that means rejoining the single market. North Devon’s maternity unit has been closed for three weeks due to staff shortages, so women now have to travel for up to two hours to give birth.”
“The Prime Minister said yesterday that Brexit ushered in “a decade of low growth and stalled regeneration.” —[ Official Report , 1 September 2026; Vol. 790, c. 27.] He is right. Our economy is stuck in this mess thanks to the Conservatives—and the leader of Reform UK—and their terrible Brexit deal.”
“There are so many more problems in our political system: too much power in the hands of social media barons who interfere in our politics and crypto billionaires who use donations to buy influence; and too little power in the hands of our people.”
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“We have been in discussion with PetroChina, and my right hon. Friend the Member for Sevenoaks (Michael Fallon), the Minister, is due to meet its representatives next week. We are talking to everyone involved. Given our infrastructure guarantees, we are now more engaged in state support than Governments have been in the past. That makes sure that we get good value for both the taxpayer and the economy. I do not think that what the hon. Gentleman is rightly concerned about will come to pass. As part of the way we do the infrastructure guarantees, we will make sure that we get the outcomes we need for our country.”
“Like my hon. Friend the Member for Thurrock (Jackie Doyle-Price), the hon. Gentleman invites me to talk about a disciplinary dispute. The investigation is due to be published and shared with those involved on Friday and it would be wrong for me to speculate about the rights and wrongs of any individual or individuals involved.”
“The review of refinery capacity is part of that, but only part; we have to look at a number of issues to make sure that the people who drive the cars, lorries and vans on the roads get the fuel they need, given the critical role that that transport sector plays for our economy.”
“I am grateful for that question. One of the first issues I had to deal with when I became Secretary of State was the potential for a tanker drivers’ dispute. I got very involved in thinking about energy security with respect to transport fuels. The Department has set up a unit that was not there before. When we talk about energy security, we normally mean the security of the electricity supply, but actually the issue is much wider than that. I have personally given a lot more focus to that than previously, particularly in respect of what the hon. Gentleman mentions—not just for Scotland, but for the whole UK.”
“James, Jessica Morden, Chris Evans and Mr Mark Williams, presented a Bill to provide that the Health Professionals Council be the regulatory body for counsellors and psychotherapists; and for connected purposes. Bill read the First time; to be read a Second time on Friday, 22 November, and to be printed (Bill 120).”
“The hon. Gentleman is asking me to speculate about the outcome of our review. Given that I have not received the report, that would be unwise. However, large complexes are needed to refine fuels in what is a capital-intensive business. Small players would be unlikely to have such capital. Whether the hon. Gentleman or I like it or not, there are going to be big players. The question is whether we have the right fiscal, financial and regulatory framework to make sure that we have the refinery capacity that our economy needs. That is what the review will answer. Bill Presented Counsellors and Psychotherapists (Regulation) Bill Presentation and First Reading (Standing Order No. 57) Geraint Davies, supported by Dr Julian Lewis, Jonathan Edwards, Mrs Siân C.”
“This agreement is a vote of confidence in the measures this Government are putting in place to attract investment into the system, to make the market work, and to ensure we keep the lights on. We need to decarbonise our electricity sector to meet our emissions targets and our responsibilities to the next generation, and we need a revolution in home-grown energy generation to protect bill-payers from price rises caused by volatile world gas markets. Nuclear power is a key part of the Government’s energy security strategy. This announcement is another step on the path to realising a safe and dependable source of clean power for millions of homes, jobs for thousands of skilled workers, a boost to the economy and reductions in electricity bills over the long-term. I commend this statement to the House.”
“Consumers will not have to pay over the odds for new nuclear. The price agreed for the electricity is competitive with the projected costs for other plants commissioning in the 2020s, not just with other low-carbon alternatives, but with unabated gas. As set out to Parliament in October 2010 and again in February this year, new nuclear will receive no support unless similar support is also made available more widely to other technologies. Nuclear will get no special favours We have a huge challenge ahead of us. With many old and dirty power stations closing down over the next decade, the capital investment required to replace that electricity generating capacity is around £110 billion between now and 2020, the largest infrastructure programme in Government.”
“Any company getting involved in the UK’s nuclear power industry does so in accordance with the most stringent regulations in the world and, on this basis, we welcome companies that can demonstrate the capability to contribute to safe nuclear power generation in the UK. In conclusion, I respect those who have long been opposed to nuclear technology on principle. As the record shows, I personally have had my concerns in the past, and so has my party, but I am satisfied—and I am sure Opposition Members who have had their concerns in the past are satisfied—that the safety and legacy issues relating to the new nuclear power programme are manageable, particularly with the protected clean-up fund. With regards to the issue of cost, I am clear: this is not a deal at any price. This is a deal at the right price.”
“Any investment contract would also be conditional on any required state aid clearance being obtained, and on Royal Assent of the Energy Bill. If agreed, the contract would be laid before Parliament in accordance with the Bill. EDF has announced today the intent of two Chinese companies, CGN and CNNC, to invest in Hinkley Point C as minority shareholders. This follows the signing last week of a memorandum of understanding on civil nuclear co-operation between the UK and Chinese Governments. The UK and China have a long-standing bilateral agreement to co-operate on the peaceful uses of nuclear power. Chinese companies have an established track record in delivering safe nuclear power over the past 30 years.”
“Separately, and for the first time ever, to deal with the clean-up costs of new nuclear, developers will be required to put money aside in a protected clean-up fund to pay for eventual decommissioning and a share of the waste management costs. This is anticipated to account for around £2 of the strike price. The Funded Decommissioning Programme would need to be approved by the Secretary of State before construction starts. All the terms are subject to contract and form the basis for further negotiation. EDF and Her Majesty’s Treasury will continue discussion regarding the terms of a potential UK guarantee. Ultimately, an investment contract would only be offered to NNBG if we consider the contract to be value for money and in line with our no public subsidy policy.”
“Other terms on which broad commercial agreement has been reached provide a series of protections for both sides that together represent an appropriate allocation of risks, including gain share arrangements whereby, if the developer achieves savings during construction or through refinancing or equity sales, the strike price will be reduced; operational cost review arrangements, including reviews after 15 and 25 years to reassess operating costs and adjust the strike price in either direction if necessary; “change in law” arrangements whereby the strike price would be adjusted to reflect cost changes arising from certain changes in law; and compensation arrangements in the event of Hinkley Point C’s being shut down as a result of a political decision, rather than a decision on, for instance, safety grounds.”
“If a final investment decision on Sizewell C were not made, the strike price for Hinkley would be £92.50. An agreement on those terms meets the Government’s value for money requirement. Hinkley Point C would compete with other low-carbon technologies, including onshore wind—the cheapest large-scale renewable—and with new unabated gas plant, including carbon costs, that commission in the same time frame.”
“The duration of the payments under the CfD for Hinkley Point C would be 35 years, which is about 60% of the 60-year operating life of the plant. That is proportionally similar to the length of the CfDs that are being offered to most renewable technologies. Under CfDs, low-carbon generators receive a stable price for the electricity that they sell, which is known as the strike price. We have agreed a strike price of £89.50 per megawatt-hour, fully indexed to the consumer prices index. Hinkley Point C will be the first of the new European pressurised reactors in the United Kingdom. This strike price benefits from an upfront reduction of £3 per megawatt-hour, on the basis that EDF’s subsidiary NNB Generation Company Ltd would share the “first of kind” costs of the European pressurised reactors on the Hinkley Point C and Sizewell C sites.”
“I believe that, working together, we have agreed the basis of an arrangement that would provide a good deal for UK consumers. It would meet the requirement for value for money, accord with our “no public subsidy” policy, and provide an attractive proposition for EDF and its investors, offering a reasonable rate of return for the risks that they are taking. Let me set out the key terms on which broad commercial agreement has been reached. Hinkley Point C would be the first nuclear power station to be built under the new system of contracts for difference that is being introduced by the Energy Bill. CfDs provide low-carbon energy suppliers with predictable future revenues, making it easier and cheaper to secure development investment and finance while protecting consumers should prices rise.”
“This announcement also represents a significant vote of confidence in the Government’s reforms to the electricity market. We are creating one of the most attractive electricity investment markets in the world, driving an increase in low-carbon technology, and delivering the modernised infrastructure that will provide energy security and cut carbon emissions in the years to come. Before I go into the details of the terms of the agreement, I want to put on record my gratitude to all who have worked so hard to bring us to this point, in EDF and in the Government, including those in my Department. I specifically thank Lord Deighton and his team for the strong contribution that they have made supporting the DECC negotiating team.”
“Hinkley Point C would supply a stable source of low-carbon, climate-friendly power to nearly 6 million homes—nearly twice the number of homes in London—and would supply 7% of the United Kingdom’s electricity by 2025. It would reduce emissions by the equivalent of about 5% of the UK’s annual carbon dioxide emissions from energy supply compared with unabated gas-fired generation. It would increase energy security and resilience from a safe, reliable, home-grown source of electricity, reducing electricity bills by about 10% compared with a non-nuclear future. With clean-up costs included from the outset, we would be avoiding the mistakes of the past. This is good news for jobs, good news for the economy, good news for bill-payers, good news for energy security, and good news for the environment.”
“So the agreement today is a demonstration of the Government’s commitment to a new fleet of nuclear power stations to replace those due to close and to protect Britain’s future energy security. A contract for Hinkley Point C under the key terms set out today would provide significant benefits for the UK, including up to 25,000 jobs for skilled workers over the course of construction and 900 long-term jobs during the 60-year lifespan of the plant; and a £16 billion injection into the economy, with the potential for British firms to get the majority of the work, and over £4.5 billion paid in corporation tax. EDF estimates that £100 million will go into the local economy every year during peak construction.”
“I would like to make a statement on the UK’s nuclear energy programme. I am pleased to inform the House that the Government and EDF have reached broad commercial agreement on the key terms of a proposed investment contract for a new nuclear power station at Hinkley Point in Somerset. This paves the way for the construction of Hinkley Point C—the first nuclear power station in the UK for a generation. Nuclear power has been part of Britain’s energy mix since the 1950s, responsible at points for as much as a quarter of our electricity, but since Sizewell B connected to the grid in 1995, no new nuclear power stations have been commissioned. Eight of the nine operational nuclear power stations in the UK will reach the end of their planned life in the next decade.”
“Finally, the hon. Gentleman referred to npower’s decision today, which is extremely disappointing. I would say to npower’s customers, as I have said to British Gas customers: thanks to this Government there is a choice. Under the previous Government, who created the big six, there was not a choice of independent suppliers. There are now 15 independent suppliers taking on the big six. There is a real choice now—real competition—and that is a new development. It was not the case under Labour. So we are reforming the market in the Energy Bill, creating competition and getting a much better deal for the consumer. This is a good deal for the consumer. The only thing that would not be are the Labour party’s policies.”
“Gentleman wanted to relate today’s deal with Labour’s price fix con. He was trying to argue that Labour’s price fix con must be possible if we can offer a fixed price for nuclear for 35 years. Once again, the Labour party shows its economic illiteracy. Given that the Leader of the Opposition did my job, he ought to know that even if a part of the electricity generation mix has a fixed price, the majority of generating costs remain variable and will be for some time. The fact that generating costs and wholesale costs are variable, often unpredictably so, means that prices sometimes have to change to avoid firms going bust. The fact that the Opposition’s energy price fix con cannot address this is bad news for consumers, bad news for competition and bad news for investment. It is genuinely worrying that the Opposition cannot see that.”
“Now we have formally notified, we will continue that contact. The Commission does not tell a member state ahead of notification whether it will grant approval—of course it does not—and it will not commit itself to a time scale. I am pleased that Commissioner Almunia has told us that a team will be in place in a timely fashion and will treat the issue with the priority it deserves. The hon. Gentleman went on to ask how other nuclear sites are doing. I could go into a lot of detail, but let me simply give him one example. He will know that Hitachi bought the Horizon site and its nuclear reactor design is in the generic design assessment phase with the Office for Nuclear Regulation. Hitachi wants to proceed with its investments and, in due course, will enter negotiations. The hon.”
“I will only say that EDF is already benefiting the community, investing in skills and young people in the area, and economic benefits will flow during the construction phase. EDF has already said that during the peak construction £100 million will go into the local economy every year. The local community will benefit even before the community benefit package is in place. The hon. Gentleman asked about the memorandum of understanding and how it relates to UK companies going to China. He is absolutely right: the purpose was to ensure that UK nuclear companies, and there are many, get some benefits from exports and from working in China and other markets. That is important. The hon. Gentleman made an important point about state aid. Of course, we were in touch with the Commission before the notification.”
“The consumer will have no pain-share: if the construction costs go higher, that risk is taken by the developer, by EDF, but if the construction costs are lower, the consumer will benefit. That has not happened before, and it is a welcome protection for the consumer. The hon. Gentleman rightly asked about waste. I can tell him and the House that I am satisfied that arrangements are in place to deal with the nuclear waste, both in the interim and in the long term. He mentioned the consultation and that is part of that process. The hon. Gentleman asked about community benefits and he is right that the package we announced last July comes into play only when the power station is operational. We have heard the Select Committee’s recommendation and, although I cannot prejudge our response to it, we will listen to it carefully.”
“Gentleman’s question about value for money tests, he will know that as we have said on the record we have compared what we have achieved with the price of low-carbon generation and gas plus the carbon price. We believe that we will be able to show, both now and when we sign the final investment contract, that we have met that test. He asked whether any changes in the future would be published and I am sure that that will happen. It is very important that Parliament is kept abreast of those big changes. The hon. Gentleman asked what would happen if the construction costs, including the contingency fund, were not used. If EDF and NNBG make savings on the construction plan, as projected, the good news is that we have negotiated a gain-share for the consumer.”
“I am grateful to the hon. Gentleman for his response and, of course, we understand that the right hon. Member for Don Valley (Caroline Flint) has been detained through no fault of her own. I think the power failure shows that we need this investment in our economy. I welcome the support of the hon. Gentleman and of the Labour party. Let me go through his questions. He asked first about value for money and how the figure was arrived at. We have had a huge amount of negotiations. The hon. Gentleman will have noticed that many people thought that we would end up with £100, £97 or £95 per megawatt-hour. We have done a lot better than that—we have got the figure under £90, and I do not think that anyone thought that we would do that. We have got a good figure through hard, tough negotiations. As for the hon.”
“I pay tribute to my hon. Friend, who has championed this investment over a number of years. I saw on my rather wet visit this morning to Hinkley Point C that he is well known on the plant. The fact that he is focusing on the skills agenda, and that the Prime Minister and I met a lot of young apprentices who are looking forward to working at Hinkley Point C for many years, shows the potential for this development—what it means for the community that my hon. Friend represents, the wider economy and the British economy. It is indeed a good day for the British economy.”
“I am grateful for the right hon. Gentleman’s persistence in this issue. He knows that I have met him and looked at the figures that have been produced by those who want to see a Severn barrage created. It would not be at half the price; it would probably be at double the price; it is extremely expensive. No one would be more delighted than I if we could see tidal power in the Severn. I believe it will come, but the price will have to come down because we must protect the consumer.”
“I am grateful for my hon. Friend’s support in this matter. He is right to make it clear that Chinese investment into Britain, and in this case into our electricity supply system, is very welcome. We already have it. There are billions of pounds of Chinese money invested in the UK’s electricity industry and in our wider industry. I talked to EDF today, which has been working in China for more than 30 years. EDF has been partnering Chinese nuclear firms for a long time, so this partnership ought to be welcomed in the UK.”
“Friend the Secretary of State for Business, Innovation and Skills and I published an industrial strategy for the UK’s nuclear industry, looking at all aspects, so that British firms and British people can benefit as we develop clean, low-carbon nuclear power in this country.”
“I am grateful to the hon. Gentleman for his welcome. He is right that we have negotiated a deal so that 57% of the value will go to UK firms, ensuring that they can get the benefit and develop their skills and that UK employees can be a big part of the project. We would have liked the figure to be higher, but unfortunately not a lot has happened in the nuclear industry for many years. I wonder whether Opposition Members might like to explain why that is. This Government have looked forward to ensure that there will be a better future for British nuclear firms, not only as a result of this deal, but because earlier this year my right hon.”
“My hon. Friend makes an important point. One aspect of the arrangements that I believe will be particularly welcomed by consumers and taxpayers is that the operator will have to start meeting the clean-up costs from day one of generation, which has not been the case in the past. Two thirds of my Department’s budget is spent meeting the decommissioning costs of past nuclear power stations that have long finished generating electricity. That was a scandal and past Governments failed. This Government have learnt the lessons and ensured that the decommissioning costs are up front. There will be oversight of how the fund is operated to ensure that we protect future generations and taxpayers.”
“The truth is that the public will have to shoulder a large amount of the cost of nuclear waste, because a vast amount of nuclear waste that has to be dealt with is from the past, from the first two generations of nuclear power stations and from the military’s nuclear programme. That was paid for by the taxpayer and no provision was made for cleaning it up. That is why this deal is different and so good for the taxpayer.”
“I thank the hon. Lady for her question. She might have missed it, but the NAO put out a press release earlier today stating that it will be looking at the details of our commercial agreements, which we welcome, because we are very happy for our proposals to be scrutinised. We have encouraged transparency because we believe that we can make our case. Unlike in previous generations, when the costs were not transparent, we are prepared to be transparent. She might be surprised, because she probably did not realise that the NAO would be looking at this so early. She asks about the public share of waste management.”
“I believe that it is such a serious threat to our world that all forms of low-carbon electricity need to be used. I urge environmentalists in the House to reflect on that.”
“I strongly agree with my hon. Friend. I will make two points in response to his comments. First, 7% of Britain’s electricity needs will be secured when the two reactors are working at capacity, which is expected in 2025. That is a huge bonus for our long-term plans for energy security in this country, and something that was not happening before the coalition Government came to power. Secondly, on his point about the Liberal Democrats, our party changed its policy at our recent conference in Glasgow, and I will explain to the House why we did that. The reasons are similar to those that led me to change my view. Climate change is a huge challenge for our country and for the world. Some people believe that we can combat it simply by using renewables and energy efficiency, but I do not believe that we can.”
“I think the right hon. Gentleman has been saying that for a number of years. He was predicting a much higher strike price, but we have a very good strike price. Let us be clear to the House, because the issue is important. EDF and its co-investors will not receive a single pound, and consumers’ bills will not be touched, until the power stations start generating. The earliest expected time for that will be in 2023—10 years’ time. I have to say to the Labour party that the world will be very different in 10 years’ time, and future electricity and energy prices will be very different. I am pleased that Labour party Front Benchers have welcomed the proposal. Clearly, they support what we have done on prices, and people will have noticed.”
“My right hon. Friend makes some pertinent and relevant points. I am not aware of the noble Lord Ridley’s proposal, but I am aware that Rolls-Royce has been doing a lot of research and development into small modular nuclear plants, and clearly that is extremely interesting. It shows that there are British nuclear firms with skills and expertise, and they are welcoming our proposals today.”
“First, 57% of the value of this project will go to UK firms, and I hope that the right hon. Gentleman welcomes that. I do not believe that these terms are generous at all. We have had hard negotiations to get them down, and EDF realises that. Some of the benefits of the deal we have negotiated need to be held up in the headlights. There is the construction gain share, so that if the construction costs are lower, the consumer gains. If there is a refinancing by the investors in 10 years’ time from which they make a lot of money, the consumer will gain from that refinancing. That never happened with private finance initiative deals when Labour was in power; rather, the taxpayer lost out. We have the refinancing gain share for the consumer, and I doubt that would have happened if that lot had been in power.”
“I said in my statement that the UK taxpayer can expect to gain £4.5 billion in corporation tax as a result of this, paid for by the investors, but it is even better than that; I have some very good news for the hon. Gentleman. Because we wanted to make sure that these companies could not rearrange their tax affairs after the deal and somehow reduce the tax funds that we were expecting to come to Her Majesty’s Treasury, we undertook a very unusual clause in our deal to make sure that, should they do exotic tax deals to shelter their tax liabilities, the strike price will reflect that and be adjusted downwards. That is how far we have gone to make sure that the taxpayer and the consumer are protected.”
“I was agreeing with a lot of what my hon. Friend said. I say to her and to all right hon. and hon. Members that we need a diverse energy mix. If we go for one form of electricity generation, that is far too risky. We need nuclear; we need renewables in all their shapes, forms and sizes; we need carbon capture and storage; and we need energy efficiency. The electricity security challenge is massive, and we need every aspect. The low-carbon challenge is massive, and we need everything to be low-carbon. Onshore wind has a role to play along with nuclear.”
“As for cost overruns, I have made it clear to the House that by negotiating a tough deal, we have ensured that the consumer is protected from those. That did not happen in the past. We have seen cost overruns in nuclear projects time and again, and I was determined that that would not happen this time.”
“I have already made it clear to the House that this is going to be the most transparent deal ever. When my ministerial colleagues discussed the issue with Labour Front Benchers during the proceedings on the Energy Bill, we did not undertake to do what we are doing today. We are being more transparent than we promised. We have said that when the final investment contract is signed, we will publish it, and we have committed to that in the Bill. There will be very evident transparency not only on value for money and no public subsidy but an awful lot more. Of course, because we have not concluded the commercial negotiation, there are one or two commercial issues that we will not be publishing at this point, but there will be an awful lot more to see when we come to signing the final investment contract.”
“My hon. Friend needs to address his last point to his local planning authority, because he knows that I do not take those decisions. The nuclear opportunity for UK companies is, indeed, very big. Many of our companies are already partnering with nuclear companies from other countries to bid for nuclear deals in, for example, the Czech Republic and Turkey. Companies such as Rolls-Royce, Babcock and AMEC are very active in the international sphere, and I think that this project and our ambitions for the nuclear industry supply chain will only further their ambitions.”
“I am afraid the hon. Gentleman could not be more wrong. Not only do I not recognise his figures, but I am surprised that he is so confident as to be able to suggest them. I admire those in and outside the House who are able to estimate how much this is going to cost, because they clearly know more than me, my officials and the industry. They are clairvoyants, because they know what energy prices will be in 30 or 40 years’ time. I am in awe of the hon. Gentleman. This is a good deal for the consumer and for the economy, and, given that it also delivers on our low-carbon agenda, he ought to welcome it.”
“I am grateful for my hon. Friend’s remarks, but I say to him gently that I hope everyone on the Conservative Benches will also understand why I have changed my mind: it is because of the threat of climate change. I hope that all Conservative Members will look at the Intergovernmental Panel on Climate Change report—its fifth annual assessment—and accept the scientific consensus of 269 experts from 39 countries. The evidence that climate change is happening and that man is responsible for it is overwhelming and we need to take action on climate change. If I am prepared to change my views on nuclear, I hope that some on the Conservative Benches are prepared to accept that climate change is something we have to face up to.”
“I think I followed that question. The hon. Gentleman is an expert in this area and his points are important. I said in my statement that there will be operation expenses reopeners at 15 years and 25 years, but they will be symmetrical, so if operation costs have reduced, the strike price will come down, and if they have increased and that can be proven, the strike price will go up. That is the only way to manage such a contract over such a long period; otherwise the initial strike price would have to be much higher in order for the investors to undertake those risks. We will be transparent, so over the coming weeks and months the hon. Gentleman and the Select Committee will be able to look in detail at many of the issues he has raised.”
“I am grateful for my right hon. Friend’s comments. Britain is working with a significant number of like-minded member states that wish to develop their nuclear programmes. I believe that nuclear needs to be seen as a low-carbon technology in the European debate, because it will be critical to meeting our climate change objectives in the UK, Europe and the world. I recommend to him and to other right hon. and hon. Members the book by the chief scientist in my Department, “Sustainable Energy—Without the Hot Air”, which is this House would benefit from.”
“Earlier this year, my right hon. Friend the Secretary of State for Business, Innovation and Skills and I published an industrial strategy for the nuclear industry in the UK to do just that. On the home-grown point, the danger is that if we do not produce energy in this country, whether through nuclear or renewables, we will be increasingly dependent on imports of gas from the other side of the world. That would leave our economy vulnerable to the supply of that gas and to vulnerable wholesale gas prices, which could hit consumers badly. That is why we need more home-grown, low-carbon energy.”
“My hon. Friend is right about the comparison with offshore wind. We hope to reduce the costs of offshore wind over the next few years. I hope that in the 2020s, as it grows to be a significant low-carbon generating sector, offshore wind will be much more cost-competitive. We are having to subsidise it as a new immature technology. The costs of onshore wind have come down significantly. Although the nuclear deal is competitive, onshore wind is a very cost-competitive, low-carbon generator in comparison with nuclear. People often think that onshore wind is not cost-competitive, but when one considers the carbon costs, it is becoming very cost-competitive.”