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Climate Change and Sustainable Energy Bill

My Lords, before debating this Climate Change and Sustainable Energy Bill, I have to declare a few interests, like the noble Lord, Lord Whitty. I am president of the Micropower Council, a trustee of Carbon Neutral North East and a non-executive director of a heating company involved with combined heat and power. It will come as no surprise to people in the Chamber today that I very much welcome this Bill. As with all Private Member’s Bills, it has not arrived here without a lot of emotional energy being expended and a lot of hard and tough negotiation. I have been there, as they say. As a Member in another place, I sponsored the Home Energy Conservation Act 1995. Before dealing with a few specifics, I wanted to say a little about climate change. Indeed, the noble Lord, Lord Whitty, did the same in his opening comments. We need to emphasise, especially for the doubters, that the vast majority of scientists in the world believe that climate change is a reality. However, a small minority of the world’s scientists do not. Funnily enough, this week I received a report of a seminar that the Royal Society of Chemistry held last autumn. One thing caught my attention. It was pointed out that there is still a small and vocal minority who do not accept that interpretation of the scientific evidence. The very political nature of this debate has brought a new level of media spin to the otherwise sedate world of climate science. Andy Rowell, who is a writer and investigative journalist, reviewed some of the strategies that are deployed by some global warming sceptics. He particularly highlighted the large oil corporations, because they are funding policy organisations and think tanks to publish work questioning the link between climate change and fossil fuel emissions. I am pleased to say that I do not think that anyone taking part in our debate today has that view, but it is out there and we need to be aware of it. I regret that, in another place, one or two people did not want the Bill to succeed. I hope that that will not happen in this House. I especially want to speak about four areas. The first is the importance of microgeneration and, going with that, the second is the importance of targets. The third is the importance of microgeneration being included in permitted development status—something that the noble Lord, Lord Whitty, has highlighted. The last is the importance of local, decentralised energy schemes. Microgeneration is becoming very fashionable. In some quarters, it is the new, must-have accessory. We know that David Cameron is about to put a wind turbine on his roof. Malcolm Wicks has done the same. I believe that Alan Whitehead, whom the noble Lord, Lord Whitty, mentioned, has finally persuaded his council to give him permission for a small wind generator. Even Her Majesty the Queen is investing in micro-hydro in one of her estates, and is considering ground source heat pumps at Buckingham Palace. That is not surprising when we consider the capacity of microgeneration. The Energy Savings Trust, in its report for the Department of Trade and Industry, said that 40 per cent of our electricity needs could be provided by microgeneration by 2050. Not only will microgeneration technologies cut carbon dioxide emissions, they can also help to alleviate fuel poverty. The Fuel Poverty Advisory Group, in its submission to the government’s draft microgeneration strategy, stated that microgeneration is an extremely important potential tool to combat fuel poverty, especially outside the gas supply area. We have had a debate in this Chamber today about gas prices. Because of rising energy prices, microgeneration will also be needed to relieve fuel poverty—in some cases, even where gas is available. Microgeneration technologies are also a powerful tool to engage consumers in the fight to tackle global warming. A report last year, Seeing the Light, from the Sustainable Consumption Round Table stated:"““It seems that micro-generation provides a tangible hook to engage householders emotionally with the issue of energy use. Householders described the sheer pleasure of creation and of self-sufficiency””." One householder said:"““It’s like growing your own vegetables””." Another householder said:"““I didn’t realise before that it was the immersion heater running away with the money. It’s made me more aware of where power is being used in my house””." Another report this year from the Sustainable Development Commission, called, I Will if You Will: Towards Sustainable Consumption, recommended that,"““the Department of Trade and Industry should set a 2020 target for roll-out of microgeneration across new and existing homes””." It said:"““Microgeneration . . . proved to be an appealing prospect, because it is something very positive and tangible that everyone could do in a visible way””." It also said that,"““the government should attach more weight to its potential to engage and motivate people in relation to wider goals regarding sustainable behaviour””." In addition, Green Alliance argued in its new report on decentralised energy, Grid 2.0: The next generation, that we will succeed in tackling climate change and increasing energy security only if we take a step back and think about the purpose of our energy system and the role of individuals within it. If everyone from the Government and their advisers to influential think tanks such as the Green Alliance thinks that microgeneration is the way forward, I hope that we can achieve it. How do we achieve its full potential? I believe that this very important Bill, together with the Government’s microgeneration strategy, which was published in March, goes some way to enabling that to happen. We hope that it will result in the removal of some of the barriers to the development— particularly the commercial development—of microgeneration technologies, because industry needs to attract investment if it is to mass manufacture these technologies. For that, it needs a certain future, and for that there needs to be a vision and targets, which was my second point. Targets are crucial, because they will provide the market the certainty needed to persuade people to invest the £30 million or £50 million that we need to enable there to be mass production. This mass production would virtually halve the price as well as the payback period. At the moment, the payback period is between five and 10 years; it could be halved to between three and five years. This is what is needed if microgeneration is to move from being a niche market product to a product for everyone. One of the problems at the moment is that micro wind turbines cost about £1,500. The planning application costs another £265. You will probably save between £80 and £150 a year, but that gives you a payback of between 12 and 20 years. This can be shortened, initially perhaps with grants and subsidies to help mass manufacture to get off the ground, but the planning application is a problem, as the noble Lord, Lord Whitty, mentioned. We really need to deal with that; it is covered in the Bill. We could get the payback reduced to about five years if we took away these barriers. Targets are crucial for three reasons. First, reducing CO2 is a numbers game, and each sector needs to know what is required so that it can help to deliver national aims, particularly given that the Government look as though they are on course to fail to reach their CO2 targets. Secondly, targets are needed to create a more level playing field. The Government have set statutory targets for energy efficiency and other firm targets for combined heat and power and renewables. We need a similar target for microgeneration. Finally, as I have explained in some detail, we need to create business confidence. I shall return briefly to permitted development. It takes a long time to get planning permission, and it costs money, but you do not need it if you want to install a dish to receive television these days. We are asking for the same for permitted development. It would help the manufacturers hugely, because at the moment they face having to negotiate with about 400 different local authorities to get the permissions needed to sell their products. This brings me to my final point; the importance of local energy schemes. As I mentioned earlier, the Green Alliance and indeed the noble Lord, Lord Whitty, have talked about the importance of community energy. There are currently about 1,300 sites in the United Kingdom with a combined heat and power generator, but they are generating only about 6 per cent of our electricity. More needs to be done to enable this to happen. Community-based schemes are exceedingly important because they take us back to my previous point about engaging consumers. Community schemes can empower communities and create employment. A wide variety of groups support this. The Country Land and Business Association for example, is promoting combined heat and power schemes using biomass as part of its rural regeneration policy. Community energy schemes can also use waste products to provide heat for the heat station, which will provide not only heat but electricity. Finally, I turn again to my own Act, the Home Energy Conservation Act. The Bill we are considering today will require the Government to prepare a report on how local authorities can promote energy efficiency and microgeneration. Councils will then have to consider this when discharging their functions. I hope that this will reinvigorate the Home Energy Conservation Act and all the processes that go with it. It is much needed. As I have said in this Chamber before, I think that the Government over the years have not used it as fully as they could. We had a debate in this Chamber not long ago on the energy efficiency report from the House of Lords Science and Technology Select Committee. It also emphasised that if we are going to reach our goals in climate change, local authorities are one of the ways of driving through these policies. As I have the Minister here, I would like to highlight for him one thing that I have discovered. When we sell houses in the future we will, of course, have home information packs which contain an energy report. But I understand that the details of the energy performance of homes will not be available to local authorities. I know that we do not want to give individual figures about what people are paying for their electricity and so on, but information on energy performance would make such a difference to local authorities in gauging how successful they are going to be. In conclusion, this is an excellent Bill. It opens doors for action at an individual and community level. It includes the kinds of actions that can really make a difference and I hope that it receives a speedy passage through this House.