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Climate Change and Sustainable Energy Bill

One can draw whatever conclusions one wants from surveys that arrive in the post. All I can say is that in my regular street surgeries in Oxford, one of the main issues raised recently was not the Terrorism Bill, nor even the NHS or education, but climate change, the importance of plastics recycling and the environment in general. In my surveys of young voters in particular—I am sure that other hon. Members have had similar experiences—climate change, and the need for more local action, are consistently some of the top issues raised. It is crucial that such matters be not left to G8 summits and world conferences, but that people see what they can do in their own homes and neighbourhoods. Micro-generation enables people to think globally and act locally. I am pleased that the Bill includes a duty on the Secretary of State to promote community energy. In Oxfordshire, at Watchfield, we have an exciting project to build Westhill wind farm—the first in south-east England. One of the reasons it will be the first is the difficulty that community renewable energy schemes face. Projects with a capacity below 5 MW and a significant community buy-in are unattractive to conventional developers, who prefer the wholesale energy market. Advice and risk finance are difficult to obtain. The Bill will help by allowing the Secretary of State to allocate funds to promote investment in community energy schemes and provide them with advice. A lot could be achieved with modest amounts of money including, for example, for grants that could be repaid by successful schemes. A conference will be hosted in Oxford next April—the world’s solar cities conference—where local authorities and local initiatives across the world will share ideas and expertise. I hope colleagues will encourage constituents to take part, and I shall circulate details. It would be great if delegates from the UK were able to tell others what a boost progress on the Bill is giving micro-generation. If we are to give the Bill a Second Reading, we need to keep our remarks brief so I shall mention only a couple of barriers that I am glad that the measure addresses. Obtaining green energy certificates for micro-generation can still be difficult and expensive. In some cases renewable obligations certificates cost more than a micro-generator is worth. Ofgem should tackle the regulatory burden of the certificates by making them accessible for the householder, so that micro-generators can benefit from Government support for renewables. I welcome the provisions that would minimise the cost and administrative burdens of domestic micro-generation. Like community energy schemes, micro-generation suffers from the structure of the traditional energy market. Unlike large generators, householders are not in a position to undertake complex commercial negotiations with energy suppliers. I especially welcome clause 7, which takes a crucial step forward in requiring energy suppliers to offer to buy micro-generated energy from householders at the market rate. Household energy generation would be put on the same terms as household energy supply—a straightforward and commonsense approach which empowers consumers who are producers. Taken together, those steps and other aspects of the measure would ensure that micro-generation makes a significant contribution to hitting the 10 per cent. target for energy from renewable sources by 2010. As other Members have pointed out, the Bill offers real opportunities to address fuel poverty, as well as benefits to poor countries through technology transfer. In conclusion, climate change, energy conservation and sustainable energy are vitally important, as more and more of our constituents recognise. This is a crucial time for taking the decisions and action necessary to determine how to meet our commitments on climate change and put the future of UK energy production on a sustainable basis. The Bill tackles regulatory and financial barriers that hold back community energy and the potential of micro-generation. It will promote sustainable energy, improve community involvement and encourage people to save energy. Passing the measure will help to ensure that climate change and sustainable energy are at the very top of the political agenda. Its provisions are good for the environment, good for the economy and will enable people to combat global danger with local action. I commend the Bill to the House.