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Energy: Renewables (Economic Affairs Committee Report)

My Lords, I first read this report during the Christmas Recess. I thought then that it was quite admirable. It deals with the whole gamut of renewable energy issues comprehensively, succinctly and objectively. It focuses mainly, and in my view rightly, on wind energy and, with great authority, it deals not only with the perennial issues of back-up and intermittency but also with a point that tends to be ignored: the cost of grid connections and the problems that arise from that. The report also disposes of what I call the Danish canard: the fact that the Danes are applauded by everyone for achieving an admirable 15 per cent of their electricity supply from wind, while ignoring the fact that, for back-up, they rely on being part of the much wider Nordic electricity supply system, which relies on hydro and nuclear. I re-read the report during the recent break with renewed admiration. I was also able to obtain a copy of the Government’s response, which was published just eight days ago, in the middle of the Recess—that is cutting things fine. Be that as it may, I found that, although it was cautious and defensive, it was more helpful than is often the case with government responses, which so often are rather dismissive. Like the committee, I shall concentrate mainly on wind energy and economic issues, but I also want to touch on environmental and social aspects. It is clear from the report that few, indeed probably none, of the expert witnesses thought that the target of 15 per cent by 2020 was feasible—in some cases, remotely feasible. The committee’s comments at paragraphs 228 to 231 are notable. One might add that they are also notable for their restraint. I quote paragraph 229: "““We are also concerned that determination to meet the target may lead to an over-emphasis on promoting short-term options, simply because they are available””." The next paragraph reads: "““We have a particular concern over the prospective role of wind generated … electricity””." It goes on in the same vein. Wind is unreliable and the true cost remains significantly higher than that of conventional or nuclear generation, even before allowing for the support costs. There are also the environmental costs and impact of wind farms. The Government’s response is notable. They believe that the measures set out in the consultation document have the potential—the Government’s word—to meet the target. Any department which has to rely on the word ““potential”” is clearly not very confident of meeting its target, but at least it is frank. I do not mind much whether the target is achieved, but I am concerned about the considerable consequences. I am concerned about the inevitable pressures applied to allow planning permissions against the wishes of local, rural communities. Here I totally disagree with almost everything which the noble Lord, Lord Redesdale, said. I see he is not in his place. We all know what is going on. In a way, it is an age-old case of town versus country. My concern is not so much with the threat to national parks or to areas of outstanding natural beauty, although goodness knows the wind farm companies, given half a chance, would try to build right up to the edge of national parks. They have very little appreciation of landscape values and the scenery surrounding the parks; the Lake District National Park is already partially ringed by wind farms and there are new threats on the horizon. The more insidious threat is to ordinary, rural England. We need to bear in mind that the new generation of turbines are 350 feet tall, taller than Victoria Tower; moreover, we are told that they are likely to get bigger still. I suggest that most people who think that wind farms look quite nice on the horizon are looking at quite small turbines. The Select Committee put its finger on the issue. Bearing in mind that it was mainly concerned with the economics, this is pretty strong stuff. Paragraph 254 states: "““We recognise that power companies need a streamlined planning system to approve or reject projects more quickly. But local and national concerns about environmental degradation must also be addressed. It is important to ensure that the planning system adequately assesses the costs to local communities and the balance between national priorities and local decision-making. The Government should also examine how far local communities share in the economic benefits created by wind farm deployment and other renewable projects””." Since the report was published, we have had the Planning Act and the new processes that go with it. The Government rightly draw attention to that in their lengthy reply. There will be national policy statements, and one presumes that those will be reviewed by this House. We have the Infrastructure Planning Commission, which will then, I presume, take over on a case-by-case basis. Local authorities are statutory consultees, as indeed are the national parks authorities and, I think, Natural England. That is important. It would be very helpful if at some stage the Government set out in detail how they see this process being worked out. What, for example, will be the timetable, or perhaps timetables? Also important is what happens in the mean time. When will we start and what will it all look like? There are many consequential questions; for example, the Government’s response states that it is common in the UK for wind farm developers to provide community payments. Is that to a local authority or to individuals? If to the latter, is the recipient selected according to proximity? Those are all interesting and important questions. I could go on. For example, I would like to explore offshore wind farms, touched on by a number of speakers. I have the impression that the Government hope that they will be less controversial. They may be right, but will they help to fill the gap? Perhaps they may, but one has the impression that there are serious financing problems and very little real experience. In the end, one cannot help agreeing with the final paragraph of the report, the gist or underlying sense of which is that the overwhelming concentration on wind is not the right way forward. We seek, at considerable and unnecessary expense, to cure one form of environmental damage by inflicting on ourselves or on one part of the community an alternative form of environmental damage. That is not very sensible.