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Green Energy (Definition and Promotion) Bill

We intend to announce it by the summer break. We are working through some quite complex issues and I hope that we will be able not only to revitalise the broader renewables agenda and ensure that that is taken forward, but to revitalise the microgeneration agenda and ensure that that is taken forward. There is quite a bit more work still to do, and if we are to take this forward with the accelerating speed that I referred to, we need to ensure that some of these ideas are thought through. It will be before the summer, but I will not give a specific date at the moment. Clause 1 is an interpretation clause, which I am fairly relaxed about, but it may require amendment to take account of subsequent changes. We can accommodate the clause, but minor amendments may be required. Clause 2 frames the Bill, setting out its principal purpose, which is to promote green energy. In the Bill, green energy means energy generated from renewable or sustainable small-scale local sources, and energy efficiency measures. The Government are fully committed to promoting green energy and will continue to do so. During the past 12 months a considerable amount of work has been done on consultations to bring forward later this year the strategies to which I referred to help the UK to meet its share of the EU 2020 renewable targets, to ensure our energy security, to reduce greenhouse gas emissions, and to play our part in tackling climate change. As I said, this work will require a radical shift in reducing the consumption of energy and in the take-up of renewable and low-carbon energy technologies. Promotion of green energy and providing householders, communities and business with incentives and the information to play their part will be an integral part of the strategies that we will bring forward. The Energy Act 2008 provides for the introduction of the feed-in tariff and a renewable heat incentive, so we now have the powers to bring forward effective incentives to encourage the take-up of microgeneration technologies. We still intend to consult this year and we hope to do so in the run-up to the summer on the detail of feed-in tariffs, and later in the year, perhaps at the turn of the year, we will consider the renewable heat incentive, so that we have a package of policies to revitalise take-up. We will seek to retain clause 2, but it will be made clear that the definition of green energy relates only to this Bill, and we may need to tighten it slightly. As we have said, green energy is a term that is often used more widely, so we do not want to give it a legal definition that restricts it to microgeneration or more narrow aspects. However, we are happy in principle to retain the clause and to ensure that we have a definition with which the hon. Member for East Surrey agrees. Clause 3 involves the revision of microgeneration strategy and requires the Secretary of State, within 12 months of the commencement of the section, to""publish a revised microgeneration strategy…under section 82…of the Energy Act 2004"" and, before doing so, to""invite comments on the draft…strategy"" from stakeholders. According to the clause, the strategy should include measures to increase the number of microgeneration installations in existing buildings, financial and fiscal measures that will ensure the cost-effective of green energy and measures to promote the effective implementation of feed-in tariffs for small-scale generation of electricity established under part 2 of the Energy Act 2008. The Government have already addressed most of issues detailed in the clause. For instance, work on "Heat Call for Evidence" and the heat and energy saving strategy shows that microgeneration heat technologies have a role to play in de-carbonising domestic heating; and, we have said that the consultations on the renewable energy strategy and the heat and energy saving strategy will help to inform our decisions on how we support microgeneration. Given the parliamentary timetable, if the Bill is passed it will probably be enacted in about October, although that is very difficult to predict, and by then much of what it calls for will probably be well under way. The question is, can we include in the clause what we plan to do in any event? With a bit of redrafting, I think that we can. There is no massive difference between what we and the hon. Gentleman want, so, with a bit of redrafting, I think that we can get the clause into a mutually acceptable shape that has the broad support of this House and the other place. As part of our work over the summer, we believe that bringing forward a statement on our actions and policies will provide a lot of reassurance to the microgeneration industry. The Bill also seeks to increase the number of installations on existing buildings by means of financial and fiscal incentives and measures to promote the effective implementation of feed-in tariffs. I have already indicated our position on feed-in tariffs, and we hope to consult on that in due course. However, we are reluctant to have a vague commitment to financial measures, so we want to be much more specific about what we will do. That is one matter on which we need discussions, because, as we know, once we put a measure into statute, all sorts of things can happen with people running off to the courts, saying, "Does it mean this or does it mean that?" We need to be very clear about what we mean by the provision, and, although I am not sure that there will be a great deal of difficulty with it, let us just ensure that we reach a position with which the Government and the hon. Gentleman are content. The feed-in tariffs provide a basis for moving forward on much of that work, and I hope that the renewable heat incentive does, too. I must mention devolution, because, as the hon. Gentleman said, I need to clarify the Bill's scope. He is quite right that the Bill applies to England and, therefore, does not have broader applicability, because, in relation to this clause, microgeneration encompasses the generation of not only electricity, which is a reserved matter, but renewable heat, which is a devolved matter. We believe that what the clause seeks to achieve could happen in the context of the renewable energy and the heat and energy saving strategies, and that a suitable amendment could be found to ensure that the strategy in the clause works alongside and within the context of the broader strategies. We are therefore prepared to support an amended clause to signal our commitment to microgeneration. Clause 4 would commit the Government to carrying out a review of development orders with a view to extending permitted development to a range of renewable energy equipment installed on non-domestic premises, including agricultural land. I gather that the clause has the support of the National Farmers Union and the CLA, the Country Land and Business Association. Permitted development rights allow certain types of minor development to be carried out without specific planning consent from local planning authorities. Secondary legislation relating to the Town and Country Planning Act 1990—namely, the Town and Country Planning (General Permitted Development) Order 1995, as amended—sets out these rights. In May 2007, the Government set out in their White Paper "Planning for a Sustainable Future" their intention to extend those permitted development rights wherever possible, with the right safeguards in place—that is an important caveat. The objective has been to unclog the planning system and encourage the generation of renewable energy by home owners and non-householders alike. The Killian Pretty review of the planning application system in November 2008 endorsed those ideas. One of its key recommendations for reforming the system to make it more efficient and proportionate was to reduce the number of minor applications that require full planning permission. Following publication of the White Paper, the Government undertook four major reviews of permitted development. One considered the potential for extending permitted development rights to domestic microgeneration and to other non-domestic renewables. On the basis of the conclusions of the domestic review, we extended permitted development rights to a range of domestic equipment in April 2008. Subject to certain restrictions, home owners can now install solar panels, for example, without having to incur the cost and work involved in submitting a planning application. We want to do the same for businesses and institutions such as schools, hospitals and community groups. That is why we are considering the recommendations from the non-domestic review and we intend to conclude a set of proposals for consultation in the summer. The clause makes special mention of agricultural land. I can confirm that special rights for agricultural installations of microgeneration equipment will be included in the Government's proposals. The clause requires the Government to carry on with their intended programme of work and to report as soon as reasonably practical. We accept that. However, it may be possible to improve the clause. As I mentioned earlier, in April we introduced permitted development rights for a range of domestic equipment. What we have not been able to do to date is include, within the fold of permitted development, the issue of micro wind turbines and air source heat pumps. The difficulty is that those technologies make a noise and have the potential for negative impact on others. In a moment, I will come to clause 5, which commits the Government to moving forward on those types of renewables. However, as a general point, pure permitted development may not always be the answer; there may be other options. There is a possible alternative to having to seek full planning permission by completing a planning application and to being able to proceed, by way of permitted development, without recourse to a planning authority. It is called prior approval. Prior approval works on the basis that consent from a local authority is deemed to have been given if nothing is heard from that authority after a certain period. It is particularly of benefit to farmers, who can carry on their business with minimal recourse to their local authorities. We have been looking at the use of prior approval as well as other mechanisms that would match the level of control required to the type of development in question. I propose that, rather than simply considering the potential for permitted development, the clause should allow the Government to consider a range of planning options that will assist renewable energy equipment, including seeing whether we can find ways in which prior approval can help take the issues forward. I return to the point that I raised with the hon. Member for North Southwark and Bermondsey. Local people should be able to object to a planning process if they feel concerns about a development of significance to their local community. I acknowledge the point made by the hon. Member for East Surrey when he said that he had no wish to prevent local communities from ensuring that they can raise genuine concerns. I entirely accept that point and hope that we can find a way of changing the clause so that those points can be taken on board.