Fracking: Planning Guidance

Lord Teverson Excerpts

Tuesday 12th March 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, what is important to grasp is that this has a lower carbon footprint than coal or liquefied natural gas. It enables us to transition to renewables. I will just let noble Lords know that there is no use of this commercially at the moment, but it is something that should be investigated, bearing in mind the need for security, safety and caution.

[Lord Teverson (LD)]

My Lords, I am glad that the Minister mentioned the coalition, because, as the Government remind us, the energy world has moved on hugely since that time. The challenge now is the decarbonisation of heating and transport, so should we not forsake fracking at last, take the moral leadership on climate change back as a country and make sure that the world sees that climate change is an urgent problem and that this is part of the equation?

[Lord Bourne of Aberystwyth]

My Lords, broadening out the discussion, I welcome that. It is indeed the case that we need to address energy in relation to transport and the home. I believe that we have strong moral leadership on this, with our Climate Change Act and our records. That was true under the coalition and is true now.

Stronger Towns Fund

Lord Teverson Excerpts

Tuesday 5th March 2019 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, I thank the noble Baroness for that intervention. It is important to note first that the Secretary of State has indicated that there will be a prospectus giving details of not just the process for application, which will clearly be important to areas, towns and communities, but the thinking behind it and the way those aspects were considered and weighed. I think she will recognise from the figures that detailed work has been done. I appreciate that there is a breakdown behind those figures, but one can see that rough justice has been done there for the areas. We will look to communities to help develop the programme, and to set out the spending profile and how the fund operates. I am sure that will become clear once we see that prospectus when it is issued.

[Lord Teverson (LD)]

My Lords, as someone from one of Britain’s Celtic nations the Minister will probably know that it is St Piran’s Day today—the patron saint of Cornwall. Cornwall is the only lesser developed region within England, yet the funding under this scheme seems absolutely minimal. Can the Minister tell me something specific regarding the town of Newport? I should have said Newquay—my apologies to my Welsh colleagues. Newquay Airport is bidding to be a spaceport under the Government’s programme for a launch. A consortium has, together with Virgin Orbit, put together £14.7 million but after two years, it is still waiting to hear from the Government about their own funding contribution. This would be a fantastic boost to Cornwall’s economy. Can we please have an answer, and a positive one at that?

[Lord Bourne of Aberystwyth]

My Lords, may I first reciprocate and wish the noble Lord a happy St Piran’s Day? I have been speaking today to the deputy leader of Cornwall Council, Julian German; it was not specifically about the Newquay bid and it would not be wise for me to comment in detail on that bid. But it is obviously the sort of thing that could come forward, given the £600 million part of the programme announced by the Secretary of State. It is certainly right to say that there are areas of poverty in Cornwall, although it finds itself in a relatively wealthy region. That is one reason why the funds have been split as they have: to allow the poorer communities in the wealthier areas to have an opportunity to bid. I very much hope that Newquay will be part of that bidding exercise, as it sounds like a good bid.

Neighbourhood Planning Bill

Lord Teverson Excerpts

Report: 1st sitting: House of Lords
Thursday 23rd February 2017 Lords Chamber

[Lord Porter of Spalding]

I also support the amendment, although no one should panic—I might not vote in a Division, if it gets pushed, unless I am instructed to. But it just makes sense.

We know this will not fix the whole housing shortage, but it will be a useful tool to help that happen and we need to encourage councils to do this. While the control of these developments rests with the Secretary of State, it will be very difficult to persuade local councils and the communities that they represent that this is the right way to do it. By pushing power closer to the councils, and therefore to the people they represent, this amendment will make it more likely that more of these will come through. The noble Lord, Lord Best, tried to do this in a positive way, and the really positive point is that we can actually capture the value of the land. The land will give us the ability to make the communities truly sustainable: it will give us the money to make sure the roads, the water supply, the gas supply and the electricity supply are all right. In some areas, if probably not my own, the broadband might even be all right as well on the back of this.

I gave evidence to the Public Accounts Committee yesterday. One of the other witnesses was from Shelter, and he pointed out that one of the flaws in this argument is that we may need to revisit the compulsory purchase rules, because even when you compulsorily purchase land for a new town settlement, the land uplift still goes to the current landowner. If the Government are seriously interested in this, I would urge them to look also at reforming the compulsory purchase rules relating to new town settlements.

[Lord Teverson (LD)]

My Lords, I also very much support this amendment from my noble friend. I declare that I have chaired two small commercial development companies in the south-west, but that makes me even more in favour of the amendment and of giving local authorities control.

Down in Cornwall, where I live, the eco-town around St Austell, where I was a local councillor for a short period of time, which we unfortunately failed to deliver, showed how full local authority involvement—although it was not as full maybe even then as I would have wanted it to be—meant that we could start to get local buy-in and make these things happen by involving local communities and ensuring they were connected in the right way. I am sure that empowering local authorities will make the process a lot better.

However, dissociating myself from some of the comments of the noble Lord, Lord Best, I would say that some of the best developments in the far south-west have been in villages, particularly in areas of community land trusts. Small extensions make shops, pubs and schools more viable and make sure there are young family elements to those villages as well. I see no conflict between the two. What we want to produce through this amendment is public buy-in, so there are not these large objections from local people and so that we can move ahead, not just with small developments but with these new garden developments—effectively, properly, environmentally and quickly.

[Lord Kennedy of Southwark]

My Lords, I will be very brief. We discussed this amendment in Grand Committee. There was cross-party support for it then, and as we have heard, there is support for it today. The Minister was supportive of the aims of the amendment when he spoke in Committee, but it would be good when he responds if he could go a bit further. The amendment is about putting power over expenditure and the appointment of board members in the hands of local authorities. It is about localism and has lots of support around the House. It is a good thing to do. It may be that the Minister cannot accept the amendment as it is now, but maybe he could outline a bit more how he intends, or hopes, to bring what is asked for in the amendment into effect.

EU: Energy Governance (EUC Report)

Lord Teverson Excerpts

Monday 13th June 2016 Lords Chamber

[Lord Teverson (LD)]

My Lords, I congratulate my noble friend Lady Scott on her work on this committee. I have not been a member of it but I have heard many stories of its effectiveness under her chairmanship. My family comes from Suffolk, but I must admit I have never been to Needham Market. The great and the good there should offer my noble friend the freedom of the town in full recognition of her work over the last three years—something that would be very difficult for me to do equally well. Not having been a member of the committee during this inquiry, I will just make a few comments on the report itself, concerning governance.

Something most of us would agree on is that the twin areas of energy and, in particular, climate policy are absolutely the right things for the 28 sovereign member states of the European Union to start acting far better together on to ensure that we have energy security, in the context of the energy trilemma, and meet our climate goals, which we share with the European Union. In the plans for an energy union, we have not just the three points of the energy trilemma, but two additional points. One is making the single energy market work properly, which we all want in terms of efficiency, security and consumer power.

Another important area is research and innovation. As the noble Viscount, Lord Ullswater, has just said, we are not going to do what we need to do on energy and the climate with existing technologies alone: we need to move forward, work with new technologies and make sure that they are inventive and innovative, so that we can meet targets in the best way at the lowest cost. With its eighth framework programme, Horizon 2020, the European Union is one of the research powerhouses globally. Energy is one of the areas where member states and science communities work best together.

I welcome the national energy and climate plan concept, which I will talk more about later, but we must remember that the energy union debate is not just about electricity. All too often, we talk just about electricity generation, but that represents only about one-third of energy consumption and use. We also have heating, in which gas plays a major role both in this country and across Europe, and transport. Although that is not covered directly by this energy union, it is something we must not forget.

Lastly, as the chairman has said, investor confidence is key right across Europe. I was interested to read in the report that €200 billion needs to be invested over the next decade. Given that we have said many times in this House that the UK itself requires €100 billion, we have a large part to play in making sure that that happens.

On national plans, I completely agree with the noble Viscount, Lord Ullswater, about getting the right balance in energy policy between European intervention and management and national choice, which is absolutely critical in this area. We should have national plans and climate plans as recommended, but we need to make sure implementation is at national level. National choice should be there but must be compatible with overall European objectives and with those plans, as they work together. If Germany wants, as it did, to rid itself of nuclear power after Fukushima, it should have the ability to do so. It caused some chaos in various ways and did not help its decarbonisation targets, but that is its prerogative. What the UK does is up to us.

I find it difficult when we have an EU target and we do not translate it into a national target. I question whether it is worth having an EU renewables target of 27% if we do not have national targets to achieve that. That is a contradiction, and setting something up to fail.

The regional plans are a good way forward, but we should not think that they will change everything. Interconnected worlds and interconnected regions can also add instability. I think back to financial systems and the crisis of 2008, when everyone was having the same difficulties at the same time. If we all have the same problems with systems requiring energy, those regional interconnections can cause instability. I congratulate the Government on the work they are doing on interconnections, but we need to make sure they are stable. The report says that the Commission should be the body that manages the area of regional co-operation, which is absolutely right. The last thing Europe needs at the moment is another institution. That is a strong recommendation, which should be adopted.

I have some questions for the Minister on the capacity market and the UK. How successful has progress on demand-side management been so far? Where interconnection is continuing, how successful has that intervention been so far? Lastly, we should not forget the cold economy. I chaired a commission by the University of Birmingham that looked at keeping people not warm but cool, which already accounts for some 12% to 14% of energy consumption. We need increasingly to take that into consideration in a European energy strategy.

We should never forget that the answer to the trilemma—security, low cost to consumers and carbon reduction—is energy efficiency. It was a great disappointment that energy efficiency was the one 2020 target that was not legally binding. Energy efficiency across Europe needs to be the fundamental cornerstone of European energy policy.

Hinkley Point

Lord Teverson Excerpts

Wednesday 11th May 2016 Lords Chamber

[Lord Bourne of Aberystwyth]

My Lords, my noble friend will be aware that the workers are being consulted; indeed, he indicated as such. It is of course a consultation that will last 60 days, so in the view of the French Government and the UK Government it is no more than a hiccup. Yes, I am aware of the Chinese situation.

[Lord Teverson (LD)]

My Lords, we have had the Hinkley station on the planning board since 2008 and we are now in 2016, without an investment agreement. As the noble Lord, Lord Cunningham, said, it seems that this is very unlikely to finally happen. We have taken solar and onshore wind off the field of play. How do the Government intend to meet their carbon targets for the budget and for the 2030 target?

[Lord Bourne of Aberystwyth]

My Lords, we will be publishing the fifth carbon budget shortly. The noble Lord will know, as well as I do, that we need nuclear to transition away from coal. We need a reliable and constant source and, in that regard, we cannot rely on renewables. He will also know that we spent more on renewables last year than in the previous year, and the second most in the whole of the EU.

Energy Bill [HL]

Lord Teverson Excerpts

Tuesday 12th April 2016 Lords Chamber

[Lord Howell of Guildford]

The question is: why are we not using the flexibility in the Climate Change Act to amend it, to ease some of the obvious and immediate pressures that are making the problems of the steel industry—but not only the steel industry—so very difficult because we are too far out of line? Anxious as we are to create a good example, which I fully accept, we are too far out of line with our direct competitors. People are being hurt and jobs are being lost. Why are we not amending our own Climate Change Act now, as we are allowed to do, to meet the new conditions? Is this to be part of the strategy, which we clearly need and which we talked about earlier today, to recover our own commercial and viable steel industries? My simple question to the noble Lord, Lord Grantchester—it is a bit to my noble friend Lord Bourne and the Government, too—is: why are we not following the precepts and guidance of the Climate Change Act itself and meeting the obvious needs of industry at this moment in some towns and areas, where many people are being thrown out of work?

[Lord Teverson (LD)]

My Lords, I rise to speak to the amendment in the name of the noble Baroness, Lady Worthington. Perhaps I can reassure the noble Lord, Lord Howell, as she has, that this amendment does not specifically help the steel industry or, necessarily, the size of the budget from the Climate Change Act. I guess that an amendment back on Report would have been needed to do that. This amendment would make sure that we repatriate entirely the powers to create our own carbon budget. So in fact it is a step towards what the noble Lord, Lord Howell, would want. Ironically, when we debated the Climate Change Bill I raised this matter specifically a number of times, but unfortunately the Labour Government of the time did not want to hear about it. I do not think that they necessarily understood it themselves. However, we now need to make a change. This should not be a party- political issue at all. It is about making a budget something that we could set ourselves and measure against our national performance. That is what we are trying to do.

In a way, I regret that we are not debating the original amendment, perhaps understandably amended to exclude the fifth carbon budget, for the reasons that have been explained. When we are tackling climate change and trying to get everybody to help, it is really important to make measuring our carbon emissions transparent, straightforward and easy, so that they mean what most people would understand them to mean: that the carbon emissions we create within the boundaries of the United Kingdom from products, services and industry are what our carbon budget measures. At the moment, that is not the case: it is only so for about half of it. The rest of it just reflects the European Emissions Trading Scheme settlement.

I fully support this amendment and hope that the Government will accept it as a way forward. There is no party angle to it whatever. All it would do is ensure that our UK emissions count against our UK carbon budget under the Climate Change Act. It would make government policy on climate change simple, straight- forward and manageable.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

I think the noble Baroness is aware of the reasons why. I do not want to be provoked into going into some of the discussions we have had, but it is not as if she is unaware of some of the reasons why we cannot progress. I do not want to go into those in any detail except to say—

[Lord Teverson]

My Lords—

[Lord Bourne of Aberystwyth]

Let me just finish this point. We are not unsympathetic to the principle of looking at this—I think I have made that clear—but we do not feel it is timely to do it at the moment in the way suggested. I do not really want to go any further than that.

[Lord Teverson]

My Lords, I thank the Minister for giving way and I do not wish to take up the time of the House, but I interrupt because it is not reasonable—

[Viscount Younger of Leckie]

I am sorry to interrupt the noble Lord but he may need to be reminded that, at this stage of the Bill, only one speech is permitted.

[Lord Teverson]

I am sorry, but I do not think it is right procedurally for the Minister to say that he has had a private conversation with another Member of the House or that that is a sufficient answer when the rest of the House is not privy to that conversation. That is not reasonable.

[Lord Bourne of Aberystwyth]

It is perfectly in order for me to have discussions with other Members. I have indicated that there is some sympathy for looking at the accounting principles—but not, as I indicated in my speech, at this time. I have indicated that the timetable is unrealistic. I hope that in the future we can look at these issues, but the Government do not feel it is timely to do it in the way suggested. That is something that has been shared with other Members: there is no great secrecy about that.

Renewables Obligation Closure Etc. (Amendment) Order 2016

Lord Teverson Excerpts

Wednesday 16th March 2016 Lords Chamber

[Baroness Byford (Con)]

My Lords, I shall comment on some of the points made by the previous speaker. This Government are certainly behind renewables of all sorts for the future. I hope the noble Baroness accepts that we are working towards the benefits of a low-carbon economy and—she did not refer to this in her contribution—that the costs of producing solar energy have come down. Therefore, one of my questions to her is: if those costs have gone down, is it really right that we should maintain the subsidies envisaged when the costs were higher and, if so, what implications does that have for the people who have to pay for them—that is, the consumers? Does she also accept that, as the Minister said in his opening comments, we ran the risk of exceeding the budgets that were originally planned because of the wonderful response we had and that up to four times more could well be envisaged by the end of that time?

For me, it is a matter of looking at projects as they come up, be they in green energy or any other energy. As far as I am concerned, subsidies have always been there to pump-prime—to help new industries take off and become established. In this industry, that has clearly worked very well, and solar is a huge success. I have one or two very small solar panels on my garage, which do not bring in a big income, but we try to do our bit because we believe in renewable green energy, so we have them.

By considering the grace period, the Government have responded. When we debated this before, a question was raised about it. However, I find this quite hard and I say to the noble Baroness in all sincerity: when the industry has become successful and those costs have come down so much, the question must be whether those subsidies should be continuously maintained when the response we have had suggests that they might not be. Therefore, is it right to expect the consumer still to be paying for that project? The Government recorded that £52 billion has been spent on the renewables sector since 2010. That is a huge amount, as the noble Baroness knows from when she was in coalition. However, unless things are tackled, a balance has to be struck. I suspect she and I will not agree on how that should be done. It is a realistic challenge that any Government must face. At the moment, we are in government, and the costs and the response from the industry have done really well. The question is whether the order before us tonight is fair and appropriate. On that, I think the noble Baroness and I will agree to disagree.

[Lord Teverson (LD)]

My Lords, I will be extremely brief. Perhaps I may reply to the noble Baroness, Lady Byford—whose expertise in all these areas I admire greatly —as well as comment on one of the Minister’s remarks.

First, these Benches absolutely want to reduce renewable tariffs and subsidies as the costs come down. That is a fundamental point. We have a track record of doing that, and that is what we do. However, we are not into executing a particular technology. The way that this has worked is that the Government—interestingly, a Conservative Government—have been moving down the road of choosing technologies. The whole strategy of the energy market reform was to move gradually to a more market-based, less technology-specific situation as time went on—but we are doing the opposite.

We absolutely agree on the levy control framework and lowering costs to the consumer, but what have the Government decided to do? They have decided to invest in the two most expensive low-carbon technologies, offshore wind and nuclear, both of which are hugely more expensive than onshore wind and solar, the technologies that cost the least. So I say to both the Minister and the noble Baroness that if that is what the Government want, they need to change the strategy. They can achieve another strategy at the same time as meeting the carbon emissions target and lowering costs to consumers. That is the way it works—it is arithmetic. So, please, let us go for that.

I return very briefly to the issue of investor confidence. As noble Lords will know, the Select Committee on Energy and Climate Change in the other place recently looked at investor confidence in the energy sector. I hate round numbers, because one often does not believe them, but DECC itself estimates that we need some £100 billion of investment up to 2020, not just in generation but in the distribution system as well. As my noble friend said, to achieve that we need real investor confidence. What was the Select Committee’s conclusion? It said:

“It is clear that the confidence of many investors has been dented by the Government’s actions since the election. The sudden, unexpected nature of many of the announcements has unsettled investors who had been used to receiving more forewarning of policy changes. There is a high risk that a hiatus in new developments has been created, pending further clarity on short- and longer-term policy. The Government removed support for renewables due to concerns about costs for consumers. But they have not set out the evidence base for this conclusion or for other decisions, and engagement with the investment community has been poor”.

That is an all-party conclusion in a report on the Government’s action in this area, and the conclusion is to condemn it. The need for investment is huge. We need to make sure that investment is right and that subsidies are low—and we are absolutely for reducing subsidies—but it has led to a hiatus. We no longer have carbon capture and storage or appear to have nuclear, and as far as I can see we do not have a workable strategy to bring in gas—so we have a huge energy problem. We need those investors but we have thrown away their confidence, and through the decisions we have made on renewable energy, by picking expensive winners, we have ensured higher energy costs for the future.

[Lord Grantchester (Lab)]

My Lords, it is becoming an all too familiar situation on energy policy that once more there is another order before your Lordships’ House that severely limits the UK’s renewables industry, the mishandling of which, once more, has left confidence among investors in the sector further damaged.

The draft instrument today contains severe restrictions on the deployment of solar schemes of 5 megawatts or less under the RO regime. For solar it is another blow on top of the 65% cut to the rate of feed-in tariffs that your Lordships debated barely a month ago. As was said then, in the wake of the Paris agreement on climate change, the Government are sending out a terrible mixed message with another sudden and severe policy change, risking cutting off the sector at its knees rather than supporting its gradual glide path to being subsidy-free.

Today we will join the noble Baroness, Lady Featherstone, in her amendment to the Motion on the order. She is of course correct in her appraisals. Today the Government are not being technology-neutral as regards solar power. Having closed the RO to schemes above 5 megawatts on 31 March 2015, the extension to close the RO to 5 megawatt schemes and below, yet without access to the contracts for difference auction system, means that solar projects above 1 megawatt are now in effect without support, with no route to market.

Infrastructure Planning (Onshore Wind Generating Stations) Order 2016

Lord Teverson Excerpts

Monday 8th February 2016 Grand Committee

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, I will set out the impact of the statutory instrument which I am bringing forward. This affirmative instrument seeks to amend Section 15 of the Planning Act 2008, removing the obligation in that Act to obtain consent from the Secretary of State for Energy and Climate Change to construct, extend or operate an onshore wind farm in England or Wales. To be clear, this provision relates only to proposed new wind farms with a capacity greater than 50 megawatts. Smaller wind farms, including those owned by the community, are already consented by the relevant local planning authority.

This change, alongside secondary legislation and proposed primary legislation in relation to the Electricity Act 1989, will have the effect of removing the requirements for planning consent to be obtained from the Secretary of State for the construction of new onshore wind farms. Instead, developers will need to apply for planning permission under the Town and Country Planning Act 1990, where the primary decision-maker is the relevant local planning authority. This Government were elected with a clear commitment to give local people the final say on whether to have a wind farm in their area. These changes help deliver just that, as was stated in our manifesto.

The changes are further supported in England by the implementation of the Written Ministerial Statement outlined by my right honourable friend the Secretary of State for Communities and Local Government on 18 June last year. The combined effect of the measures is to ensure that new onshore wind is consented to at local level and built only where local people have said they want it.

Finally, I remind the Committee of the support that the Government have received on this issue both in this House and during the Committee sittings in the other place which were held just last week. I should also be clear that the intention of this statutory instrument, and indeed of the statutory instrument already made to the Electricity Act 1989, is purely fully to implement the devolution of onshore wind-consenting powers to local authorities and away from Whitehall. The order does not change or affect the regime for town and country planning in either England or Wales.

Furthermore, once onshore wind-consenting powers are fully devolved to Wales, it will be for the Welsh Assembly and the Welsh Government to determine how new onshore wind farms in Wales are granted consent. On that basis, I beg to move.

[Lord Teverson (LD)]

My Lords, I thank the Minister for his brief introduction. I fear that I will show a lot of my own personal ignorance about the subject in my questions because, as he said, it is one part of a jigsaw; the question is how it fits in.

Perhaps I am being naive but I expect the Explanatory Memorandum to be fairly objective. Paragraph 7.1 states:

“Local communities are often opposed to onshore wind farm development, arguing that they have direct noise and detrimental impacts on their communities”.

Yes, it is true to a degree that some are opposed but, on the whole, they are not. It is usually a vociferous number of people who object to them and make planners’ and local councillors’ lives very difficult. It is up to them to stand up to that sort of pressure and make the right decision. That does not represent the majority.

Paragraph 7.3 states:

“Such reviews help to strike the right balance between keeping consumers’ bills as low as possible, while reducing emissions in the most cost effective way and ensuring public acceptability of particular technologies”.

As we know, wind power, as shown by the ROC rates and everything else, is one of the cheapest renewable sources of energy, so I am not sure how that paragraph fits in.

Part 10 of the Explanatory Memorandum concerns the impact. I have not read the impact assessment: I think that there was a problem in that it originally referred to the wrong one, but the memorandum states:

“There is no impact on business, charities … voluntary bodies”,

or,

“the public sector”.

Then what is the point of it? I can see the point, but if there is no impact whatsoever, that is rather strange.

I actually welcome the order in principle. The Minister is absolutely right: local communities should have much more say over their local areas and decisions such as these. Placing them back into the local authority planning process is the right thing to do, so I welcome that.

What I want to understand—this is where my ignorance comes out—is how it interacts with the National Planning Policy Framework, which specifically uses the phrase “a golden thread” of sustainable development: that there should be acceptance that schemes should go ahead if they promote sustainable development. Does that still apply when local authority planning decisions are questioned further up the decision tree on appeal?

Paragraph 97 of the National Planning Policy Framework states:

“To help increase the use and supply of renewable and low carbon energy, local planning authorities should recognise the responsibility on all communities to contribute to energy generation from renewable or low carbon sources”.

Then it goes through a list of bullet points of things they ought to do. How do those obligations on local planning authorities tie in with this secondary legislation and the other areas that the Minister mentioned around it?

The Explanatory Memorandum also says that local authorities’ planners have to take account of neighbourhood plans or local plans. I want to understand whether that is a “both” or an “either/or”, because a lot of local plans have renewable energy and wind farms in them. What happens if this is not included in the neighbourhood plan but is included in a local plan, for instance? I suspect that that will often be the case given that neighbourhood plans still do not cover large proportions of areas that local planning committees take an interest in.

I have a couple of other quick things for the Minister. Five-megawatt wind farms are pretty large, and I would be interested to know how many applications for such wind farms there have been over the last five years or so. I do not need a specific answer but perhaps the Minister could give an idea of the kind of scale we are talking about. Also, are there other areas where local authorities do not have control over less than 30 megawatts? A number of parallels have been made with shale gas—which I am not against—where there is a big push the other way in terms of trying to put pressure on local authorities to give permission or to call the decisions in if they do not. I would be interested to hear how the Minister reconciles the two opposite directions that energy policy seems to be going in at present.

[Lord Grantchester (Lab)]

I thank the Minister for his explanation to the Committee today. The order seems to be primarily technical in that it changes the planning consent process from one where the Secretary of State is included to one where the local planning authorities make the decisions on an application concerning onshore wind-generating stations over 50 megawatts—that is, from the Planning Act 2008 to the Town and Country Planning Act 1990. This is in the context of the Conservative Party’s manifesto for the 2015 election and will make the procedure for consent for stations that generate above 50 megawatts consistent with that governing those that generate less than 50 megawatts. Perhaps to underline the simple policy objective sought here, can the Minister confirm that, apart from changing the ultimate determining authority from the Secretary of State to local planning authorities, no other feature will be affected by this change and that there is no other difference between the two processes for onshore generating stations above and below 50 megawatts?

We are content to support this SI. Indeed, we support the right of local authorities to decide onshore wind power applications so that they can decide on the case made in terms of them supporting jobs, providing energy stability, cutting energy bills and contributing to action to mitigate possible global warming. This change is also reflected in Clause 79 of the Energy Bill, which is currently undergoing scrutiny in the other place. During consideration of the Bill, it has been noted that the Conservative Government judge local authorities effective to rule on onshore wind applications, yet will not allow local authorities to assess applications regarding fracking. We consider that communities should be allowed a pertinent voice in both situations.

Your Lordships’ Secondary Legislation Scrutiny Committee drew attention to the lack of a wider impact assessment on the UK’s generating power. The noble Lord, Lord Teverson, drew attention to the wider impact on the national infrastructure framework. I support him in asking the Minister whether he will report to Parliament six months after the passage of the present Energy Bill to update Parliament on the effect of this SI, especially in relation to the carbon impact and the Energy Bill.

--- Later in debate ---

The noble Lord, Lord Teverson, asked about the national policy framework and whether sustainability was still important. Yes, it still is, although obviously within the context of local decision-making, which I am pleased he recognises as being important. He asked about the interrelationship between the local and the neighbourhood plans. The neighbourhood plan is discretionary, it is not as of right, and the local plan will prevail over the neighbourhood plan. It needs to take account of it but in the pecking order, as it were, the local plan will have the superior say. It will take account of the neighbourhood plan but is not obliged to follow it. The noble Lord also asked about wind farms of over 5 megawatts—I wonder whether he meant 50.

[Lord Teverson]

I meant over 50, I apologise.

[Lord Bourne of Aberystwyth]

Not at all. I guessed that was what he meant but I just wanted to confirm that. Two developers were involved in discussions about the transition from the old scheme to the new scheme. That perhaps gives a flavour of the fact that it is not that many. I believe that the noble Lord also referred, as did the noble Lord, Lord Grantchester, to the different regimes in relation to shale. In both, local involvement is key. We recognise that. It is right to say that there is talk about a new system for shale gas exploration. There is a difference when a new technology is being brought on but I reiterate that in both systems we consider a local dimension to the decision-making to be vital.

[Lord Teverson]

Actually, I liked the Minister’s first response, the global one. I thought that was very good.

[Lord Bourne of Aberystwyth]

I am most grateful. I have mislaid the further questions from the noble Lord, Lord Grantchester. I am not sure whether I have covered everything. Here we are: the noble Lord, Lord Grantchester, asked whether there was any move other than making local authorities responsible for these decisions rather than the Secretary of State. That is essentially true. There is an element of devolution to Wales as well but it just mirrors that in relation to the Welsh Government and Welsh Assembly. There is no other intention here. The noble Lord also referred to the fact that this is coupled with what is now Clause 78 of the Energy Bill—we have lost a clause somewhere along the way—he is absolutely right on that. With that, I commend the order to the Committee.

Feed-in Tariffs (Amendment) (No. 3) Order 2015

Lord Teverson Excerpts

Tuesday 2nd February 2016 Lords Chamber

[Lord Robathan (Con)]

My Lords, for many years in the House of Commons I was the vice-chairman of the All-Party Parliamentary Renewable and Sustainable Energy Group because I happen to believe that renewable energy has a hugely important part to play in the future energy provision for this country. I hope that most noble Lords would agree with that. But it is only a part, and that is where the noble Viscount suggested that there is a contrast between nuclear, fracking and renewable energy. They all have a part to play in making a good policy to provide energy for this country.

I have been a loyal Government supporter and I was particularly pleased when the Prime Minister said some years ago that he would create the greenest Government ever. I hope very much that the Minister will bear that in mind. He rightly said to the noble Viscount that FITs were very high. They were high for a reason: in order to attract investment, which they have done, and indeed to attract landowners—possibly such as my noble friend who has also spoken—to put up wind generators, for instance, and it has worked. I should say that I am quite interested in putting one up myself on my farm in Leicestershire, but I do not yet have an interest to declare. However, it is right that these very expensive feed-in tariffs should be brought down. They are extremely lucrative and they need to come down. As the costs of putting up solar, wind or indeed hydro energy plant come down, so too should the feed-in tariffs.

I know that the Government have reviewed their initial plans in this area, but I would say gently to my noble friend the Minister that, as I am sure he is aware, we should not as a Government kill the golden goose that has led to a resurgence of renewable energy in this country, which is all to the good. In quite rightly reducing unnecessary government expenditure, or perhaps one should say government largesse, we need to be careful that we do not end the wind and solar energy industries in this country or stop the generation of renewable energy which began so well under the coalition Government and up to now.

[Lord Teverson (LD)]

My Lords, I apologise to the House for not being in my place for the start of my noble friend’s speech. I was interested in the speech of the noble Lord, Lord Grantchester, who I admire and for whom I have a great deal of time. As has been said by Members on the Benches opposite, the whole point of feed-in tariffs is that they should come down in order to reflect the cost of investment by producers in that industry. That is what the Secretaries of State, Chris Huhne and then Ed Davey did during the coalition Government period. Producers should not receive more money than they deserve. The point is that it was done in such a way that the industries did not die. That is why we are debating this subject. As the noble Lord said, this cliff-edge change will probably see the end of these industries, and that is a problem. It is therefore appropriate that we have a fatal Motion for an SI that will be fatal to a very important part of our renewable energy provision. That is why we are here and why this debate is so important.

Last night I was privileged to be at an event where the Secretary of State, the right honourable Amber Rudd, spoke at some length about the Government’s energy policy. It was interesting and I was taken by her enthusiasm for and excitement about the Paris agreement. She and the Minister who is to respond to the debate were involved in bringing about that important agreement. She feels inspired by it and those of us attending the event agree with her absolutely. It has its difficulties, but the fact was that there was unanimity among all the nations present.

This Motion is important because not only do we have to talk the talk, sign the agreements and be the good guys internationally, we actually have to walk the walk as well. All I can see in the Government’s policy, apart from one or two areas such as taking out coal by 2025, for which I give it credit, is that the direction of travel, as the noble Lord, Lord Grantchester, and my noble friend Lady Featherstone put it so well, is going in the opposite direction. That concerns me greatly. Exactly as my noble friend Lord Steel, said, one of the great things about the Conservative manifesto 2015 was that it committed itself to the Climate Change Act. It did that unequivocally; it was there in black and white without fear, and it said it proudly. However, this is not meeting those targets, not meeting the carbon budgets and not finding a way to meet those commitments. That is why this Motion is important and why I support it.

[Viscount Ridley (Con)]

My Lords, like the noble Lord, Lord Teverson, I was not here at the start of the debate, but I hope the House will indulge me if I add a few short remarks. The noble Lord, Lord Grantchester, said that the policy of feed-in tariffs has been highly successful. What do we mean by that? It has been highly successful in taking money off people and giving it to other people. As my noble friend Lord Cavendish said, something in the order of £1 billion a year is now going through this programme. It is going, on the whole, from the poor to the rich because electricity bills are a bigger part of poor people’s bills than they are of rich people’s bills, and most of the people who can afford to put up the upfront costs of drawing down feed-in tariffs are on the whole rich people.

That is not the measure of success surely by which we should judge this policy. The noble Lord, Lord Teverson, just said that it should be judged by its impact on the climate. So how much has it reduced carbon dioxide emissions? How much bang for that enormous billion pound buck are we getting? The answer is: a trivial effect. We know that solar power, which is the bulk of the feed-in tariffs, produced 1% of our electricity last year. Therefore, the emissions reduction cannot be more than 1%. It is probably a lot less because of back-up and other issues. We know roughly where it is and we can therefore make a rough calculation as to the costs per tonne of carbon we are buying these omissions at.

The figure for those who were lucky enough to get Ed Miliband’s first tranche of feed-in tariffs is close to £1,000 a tonne. Not even the noble Lord, Lord Stern, thinks the social cost of carbon is anything like that. He says that it is about $29 per tonne. More recent estimates, because of cuts in the feed-in tariff, show that that number has now come down to something like £200 a tonne, but it is still 10 times higher than the social cost of carbon. We do not have a successful policy. We are doing it on the backs of relatively poor people. It surprises me that the two parties opposite should in this case be taking the side of the Sheriff of Nottingham rather than Robin Hood.

Energy: Carbon Capture and Storage

Lord Teverson Excerpts

Tuesday 2nd February 2016 Lords Chamber

Asked by

[Lord Teverson]

To ask Her Majesty’s Government what assessment they have made of the potential in the United Kingdom for the development of carbon capture and storage.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change and Wales Office (Lord Bourne of Aberystwyth) (Con)]

My Lords, the Government believe carbon capture and storage has the potential to play an important role in the long-term decarbonisation of the United Kingdom’s power and industrial sectors.

[Lord Teverson (LD)]

I thank the Minister for that very short reply. In the Committee stage of the Energy Bill this Session, he stated that,

“CCS is central to what we are seeking to do on decarbonisation”.—[Official Report, 7/9/15; col. 1230.]

Given the cancellation of the projects in Scotland and Yorkshire earlier this year, is that still the Government’s view, or is this a new vision of CCS and decarbonisation?

[Lord Bourne of Aberystwyth]

My Lords, a decision was taken to cancel the competition rather than the projects to which the noble Lord referred. CCS remains vital to what we are seeking to do in decarbonisation. There are many ways in which we are pushing it forward, not least with industrial carbon capture and storage, innovation and, with our partners, looking at joint research and joint sharing of information.

--- Later in debate ---

[Lord Bourne of Aberystwyth]

My Lords, I have indicated that it is an issue of value for money. We do not believe that £1 billion spent on a competition is the right way forward. We are spending money elsewhere, such as on industrial carbon capture and storage; we are working with allies; and we have a powerful innovation budget. This is a key area, but we must get value for money.

[Lord Teverson]

My Lords, surely this cancellation—this U-turn, this emergency brake—has taken away our reputation as decarbonisation leaders in the world, and has taken away investor confidence in the sort of low-carbon energy projects that we want in this country.

[Lord Bourne of Aberystwyth]

My Lords, anyone who was present in Paris for the conference at the end of the year, post the decision on the cancellation, would recognise that we are seen as having a leading role on decarbonisation. That is the reality.