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Proceeding contribution from Charles Hendry (Conservative) in the House of Commons on Wednesday, 7 September 2011. It occurred during Adjournment debate on Wind Farm Development (Sedgefield).


Wind Farm Development (Sedgefield)

Given that I only have 10 minutes to respond to the whole debate, I hope that the hon. Gentleman will allow me to try to respond to as many of the points made as possible. Our analysis suggests that approximately 90% of the generation needed to meet that target can be delivered from a subset of eight technologies and that onshore wind has the potential to contribute perhaps 10% to 14% of overall generation. Currently, there is 4.2 GW of operational onshore wind capacity in the UK; in capacity terms, it is the single most deployed renewable electricity technology. As the hon. Gentleman said, the Government support the deployment of renewable energy through the renewables obligation which, by supporting generation rather than capacity, is structured in a way to incentivise the best use of the available resources and to maximise efficiencies. If an application has a very low load—I would consider 20% to be a low load—it will receive little benefit through the renewables obligation. The higher the load factor, the greater the support that an application will receive through the renewables obligation. However, we have recognised that it is time to review that approach; the review was scheduled for next year, but we have brought itforward because we think that it is right that communities and developers have early clarity about the thinking. I was not entirely clear about the thinking behind the points the hon. Gentleman made about Cabinet members' constituencies and how that factor plays in. Most of the applications that we have seen were made well before they were actually in the Cabinet and it was a different set of Cabinet Ministers who were responsible for the policy. Indeed, much of the policy was developed under the leadership of the previous MP for Sedgefield when he was Prime Minister. I am not quite sure where the hon. Gentleman was seeking to go in that part of his contribution. None the less, I acknowledge the important role that the north-east is playing in the transition to a low-carbon economy. I pay specific tribute to what is being done in Durham already. All of us who know the county know that it is an incredibly beautiful county—a very special part of the country—so we understand the competitive pressures already present there. We recognise the contribution that the county is making. As a whole, the region has 150 MW of operational onshore wind capacity, which is 3.5% of the total UK deployed resource. Those onshore wind projects have also helped to deliver real economic growth and benefit to the local community, such as the work being done by the National Renewable Energy Centre to develop the region's old manufacturing heritage, to help to pull the region out of recession and into recovery with new industries for the future. I understand the concerns expressed today about the impacts that such a level of deployment might have. As the market brings forward applications for wind farms, we need to ensure that they are in suitable locations, taking account of viability and the concerns of local communities. Part of the renewables obligation certificate review is designed to ensure that wind turbines go where the resource is best, not anywhere in the country. The Government are keen to avoid a one-size-fits-all approach and we consider that planning applications for wind farms are best assessed on a case-by-case basis. The national policy statements and the national planning framework set out a clear and simplified framework to do that, but it is a requirement of a planning regime that cumulative impacts, for example those in locations such as Durham, are considered in the total. We would expect the local planning authority to set out important local issues in its local impact report, just as we want host communities for the installations to reap the benefits of taking the assets into their communities. I am pleased to say that through the Localism Bill we are proposing changes aimed at addressing some of the concerns that have been raised in this debate. They include abolishing regional spatial strategies and their top-down regional energy targets to move towards a localism-driven approach, so that more control is given to local authorities, as the hon. Gentleman wants; introducing provisions for projects submitted to local planning authorities, so that developers will have to show how they have worked with communities in developing their planning applications; closing the Infrastructure Planning Commission and merging its functions with a more efficient and effective Planning Inspectorate, which means that the ultimate responsibility for making decisions on nationally significant infrastructure, such as the application that the hon. Gentleman raised today, will return to democratically elected Ministers; and ensuring that energy decisions on major infrastructure projects are made by the Secretary of State for Energy and Climate Change based upon recommendations from the new expert unit within the Planning Inspectorate. All decisions will be made in accordance with our recently designated national policy statements and important local considerations. Our aim is to support appropriate renewable energy development, which the country needs, while maintaining environmental safeguards and, through local and neighbourhood plans, giving local authorities and communities a much greater say in how development is delivered. More broadly, if it is agreed, the framework will also enable local communities to set their own growth agenda according to local needs, and to plan and manage development to deliver that agenda. As well as ensuring that local people have a real say in what happens in areas near to them, it is right that communities hosting renewable energy projects are rewarded for the contribution they are making to the wider society. As the hon. Gentleman pointed out, there is a concentration of renewable energy resources in different parts of the country and all of us are benefiting from the actions of the communities that decide to host those facilities. As part of achieving that, we announced that local authorities in England, on behalf of individual communities, will be able to retain the business rates generated by renewable energy deployments, not just for one year, but on a continuing basis. I am pleased that, in parallel, the wind energy industry has published agreed minimum standards for the contributions that wind farm developers will make to community development in England, as part of an ongoing commitment to close consultation with communities. Financial contributions might include, for example, building new community assets, or investment in energy efficiency measures to reduce electricity bills. That would be on top of any direct benefits for those living in the area, such as economic activity, jobs or rent paid to landowners. Of course, the most powerful reward for a community is to have a direct stake in a project and we want to encourage that. There are real economic benefits that can be delivered by these projects. The hon. Member for Stockton North (Alex Cunningham) talked about that and we want to prioritise it much further to ensure that where major applications happen, we see more jobs coming to the UK. In these few minutes, I hope that I have been able to show that we very much understand the points that the hon. Member for Sedgefield made in his expertly argued speech—I am very grateful to him for making those points—and, that the Government are using our review of the renewables obligation and the wider policy framework to ensure that we respond appropriately.


Secondary information

Type
Proceeding contribution
Reference
532 c131-3WH 
Session
2010-12
Chamber / Committee
Westminster Hall
Subjects
Environment protection Electricity generation Planning permission Wind power Sedgefield
Link
View this Proceeding contribution on www.publications.parliament.uk