Amber Rudd
Main Page: Amber Rudd (Independent - Hastings and Rye)(9 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Graham Allen (Nottingham North) (Lab)
4. What assessment he has made of the effect of recent changes to the incentive scheme for installing solar power panels on businesses that install those panels.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
Solar PV has been a major success story, with the most recent deployment figures showing a total of 5 GW of capacity across the UK, 99% of which has been put in place under this Government. The solar strategy, published last spring, set out a range of actions that will allow more businesses to enjoy reduced energy bills through installing solar PV. The changes we have made, financial and non-financial, for solar PV will make it an affordable part of our low-carbon energy mix, and we anticipate that splitting the feed-in tariff will promote rooftop solar, particularly at industrial premises.
Mr Allen
Unfortunately, I do not have many small businesses in my constituency, so it is a tragedy when I lose one; losing MG Renewables, which had invested in a fleet of vehicles, was a matter of great regret. Will the Minister reassure the House that we will have a steady and clear set of incentives, rather than this constant changing, which makes it particularly difficult for small businesses to plan and maintain their viability? Will she talk to the Treasury and the Department for Business, Innovation and Skills to ensure that?
Amber Rudd
Small businesses are essential to economic growth, and we are determined to support them. I understand the hon. Gentleman’s point, which is about the support for solar through our feed-in tariffs. Owing to the reducing capital costs of solar, we have reduced the support. It is essential that we strike the right balance between using taxpayers’ money and supporting businesses, but I appreciate his point and will bear it in mind.
Mr Peter Lilley (Hitchin and Harpenden) (Con)
Given that we are constantly told that the reducing costs of solar panels will soon render them competitive with conventional electricity, why do we not abolish subsidies completely? Or do Ministers not believe their own projections?
Amber Rudd
My right hon. Friend is entirely right. The reduction in cost and the success of solar PV mean that, according to the industry itself, it will become subsidy free, we hope, by the end of the decade. That is because of investment under this Government. It will be something to celebrate, and something that the taxpayer, as well as everyone in the Government, will appreciate.
Ian Lavery (Wansbeck) (Lab)
There are some excellent energy companies springing up in my constituency, such as Saving Energy Renewables, a PV solar panel firm, but projects are stalling because of the low-grade capacity for exporting energy from the systems. What can the Government do to ensure that companies can connect these systems and make serious contributions to both rooftop solar and deployment as part of the solar road map laid out by this Government?
Amber Rudd
Solar is an essential part of the renewable energy mix; the hon. Gentleman is entirely right. We continue to look at this under the community energy strategy, and hope to develop plans to help deliver the sorts of projects he mentioned.
Douglas Carswell (Clacton) (UKIP)
6. What estimate he has made of the proportion of electricity consumption that will be sourced from wind by 2017.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
Electricity consumed in the UK comes from a range of sources. In 2013, 35% came from coal, 27% from gas, 18% from nuclear and 15% from renewables, including wind generation. The “Electricity Market Reform Delivery Plan”, published in December 2013, stated our aim of achieving total UK renewable deployment of around 43 GW by 2020, which would generate about 109 TWh.
Douglas Carswell
Given that the Minister cannot possibly know how windy it will be in 2017—there are huge variations in these things—or the relative price of different methods of energy generation this year, let alone in 2017, why not scrap the wind subsidies to the big corporations and allow energy producers to compete freely and produce energy at a price householders are willing to pay? Surely that would give people a much better deal.
Amber Rudd
Wind is an essential part of the renewables mix. I appreciate the hon. Gentleman’s point that it is not 100% reliable—the wind does not always blow—but that is why it is part of the energy mix and is supported by other energy sources. We are continuing as a Department to invest in the battery industry and we hope that when that industry develops we will be able to find wind more reliable, with the subsidies coming down accordingly.
Mr David Jones (Clwyd West) (Con)
Transmission lines from large wind farms such as Clocaenog in my constituency can have a severely detrimental effect on the lives of residents in the locality. What consideration has my hon. Friend given to requiring the heavily subsidised developers of those wind farms to pay for installing those lines underground?
Amber Rudd
It is an interesting question. The National Grid is responsible for surveying and implementing these matters, in conjunction with the Planning Inspectorate, and it will be for them to take that into consideration, if appropriate, for the different wind farms.
Jim McGovern (Dundee West) (Lab)
7. What steps he is taking to promote and ensure the viability of the UK's offshore wind sector.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
The UK has the most fully installed, operational offshore wind capacity in the world and is consistently rated the No. 1 market for investment attractiveness. The Government are supporting significant levels of offshore wind deployment which will deliver the volume necessary to help achieve cost reduction and give the supply chain the confidence to invest. The competitive contracts for difference process will also reduce cost to ensure greater scale of delivery.
Jim McGovern
Last year, despite assurances from the then First Minister of Scotland, Alex Salmond, that there would be an offshore wind development in Dundee that would have brought 700 jobs to the city, SSE withdrew the plans. Does the Minister agree that Scotland cannot rely entirely on gas and oil for its economy and cannot rely on the separatists to bring renewables to Scotland?
Amber Rudd
I agree that renewables are part of the energy mix and must be stimulated and grown in conjunction with existing energy supplies. The Scottish Government already have the responsibility for consenting to and licensing offshore wind. When the Smith commission proposals are implemented, the Scottish Government will also assume the Crown Estate’s existing role as landlord. That will give them the ability to offer more areas in Scottish waters for offshore renewable development should they wish to do so. I suggest he continues to take the issue up with the Scottish Government.
Ian Swales (Redcar) (LD)
In a recent written answer the Minister told me that
“it is a priority for Government to support the development of a UK-based supply chain for offshore wind and to increase the UK content of wind farms ”,
but that she does not require developers to report on UK content. Companies in the north-east, such as Deep Ocean in Darlington, that have already invested over £400 million in production and installation facilities want to know why her Department is not being more proactive in ensuring UK companies benefit fully from this taxpayer-subsidised activity.
Amber Rudd
My hon. Friend has raised a specific question. My broad answer is that we need a supply chain plan in place. If he would be kind enough to write to me specifically about that matter, I will take a particular interest in it.
Mr Mike Weir (Angus) (SNP)
Notwithstanding what the Minister says about the licensing of offshore, the fact is that the financing of it is through the contracts for difference. Given that there is a four to five-year horizon between being granted a CfD and the commissioning of the first turbines, offshore developers have expressed concern over the levy control framework and, in particular, what they perceive as a budgetary cliff in 2020, with no indication of what comes thereafter. Is the Minister intending to meet developers to give them any confidence that there will be continued CfDs available after 2020?
Amber Rudd
There is more visibility about funding offshore wind in this country than anywhere in the world. We are keen to continue that, so that we are No. 1 for offshore wind. I will continue to make everyone aware of our plans. For 2020, we certainly hope that we will be in a position to do that. As the hon. Gentleman is aware, the current CfD winners will be informed on 26 February. We will all be interested in the outcome.
Nic Dakin (Scunthorpe) (Lab)
May I press the Minister a little further on the steps that the Government will take to ensure that there is significant local content in the materials used to build these wind turbines?
Amber Rudd
To get a CfD one has to have a supply chain plan in place, so we hope that that will reinforce the need to have local support and an effective local supply chain.
Andrew Gwynne (Denton and Reddish) (Lab)
8. What steps he is taking to help households improve their energy efficiency.
Kerry McCarthy (Bristol East) (Lab)
12. What steps he is taking to encourage community energy generation.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
This Government are proud of launching the UK’s first community energy strategy, which is increasing the proportion of home-grown, low-carbon generation across the country. We have committed £25 million to rural and urban community energy funds to help kick-start generation projects, and communities can access the feed-in tariff scheme, which provides a long-term guaranteed income stream for communities.
Kerry McCarthy
Bristol, as European green capital this year, is certainly very keen to push forward on community energy, but I am told that progress has stalled as a result of Treasury changes to tax incentives and Financial Conduct Authority changes to the rules for establishing energy co-ops. Community Energy England and Co-operatives UK say these changes threaten the very viability of the community co-operative model. What is the Minister doing to respond to these concerns?
Amber Rudd
I congratulate the hon. Lady on Bristol’s nomination for European green capital, and it was a pleasure to visit the city with her and see some evidence of the green initiatives. I am aware of the problem she raises and I will follow that carefully and try to ensure it does not create any further blockage, because community energy is essential to our development of a proper renewables strategy in the UK.
Mr David Heath (Somerton and Frome) (LD)
Will the Minister look carefully at the application of community feed-in tariffs to small-scale hydro? I recently wrote to the Secretary of State on behalf of villagers in West Lydford, who have made a heroic effort to repair a weir in Lydford. They formed a company to do so, and now find themselves in difficulties because of the rules.
Amber Rudd
I am aware of that issue and we will cover it in the community energy strategy update. I will ensure that the hon. Gentleman is kept informed of that so that it addresses the particular problem he has raised.
Mr Philip Hollobone (Kettering) (Con)
16. What steps he is taking to ensure that energy bills for domestic consumers and business users reflect falling wholesale energy prices.
Sarah Newton (Truro and Falmouth) (Con)
I very much welcome the Under-Secretary of State’s very positive response to my campaign with the Children’s Society to extend the warm home discount. Will she go a step further and seriously consider the auto payment of the warm home discount to these vulnerable families, in addition to the auto payment to pensioners?
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
I thank my hon. Friend for her question. We are all aware of the hard work she has done to support vulnerable people and to make such an extension happen. We are pleased that the warm home discount now extends to a broader group, which includes families with children, particularly those with children under five or disabled children. Data sharing is an important part of being able to find out how to deliver to the right people. We will of course keep those opportunities under review.
Caroline Lucas (Brighton, Pavilion) (Green)
T6. Does the Secretary of State share the widespread disgust at Ofgem’s recent advice on paying energy bills, which included suggesting that families in fuel poverty should make packed lunches for their kids and cancel gym memberships? Instead of that insulting response, does he agree that the Government should consider changing the rules, so that Ofgem advises on energy efficiency and not on packed lunches?