Baroness Primarolo
Main Page: Baroness Primarolo (Labour - Life peer)
Charles Hendry
I want to make some further observations, but if there is a chance for my hon. Friend to make some further comments, I will be pleased let him do so.
Madam Deputy Speaker (Dawn Primarolo)
Order. Minister, may I ask you to face towards me and to speak into the microphone? We keep losing the sound when you turn around.
Charles Hendry
I willingly accept your advice, Madam Deputy Speaker. Many people are quite glad when the sound goes off while I am speaking, but I know that in such an important debate the words are all important.
My hon. Friend the Member for South Dorset raised the potential impact of offshore wind farms on the environment. That was a core part of his speech. The impacts on other sea users and the environment have to be assessed at a strategic level as part of the Department’s offshore energy strategic environmental assessment, and are assessed again at the application stage for each individual project in the environmental impact assessment. The most recent strategic environmental assessment report, which we published in 2011, concluded that at a strategic level, there were no overriding environmental considerations to prevent the achievement of up to 33 GW of offshore wind in the renewable energy zone and the English and Welsh territorial waters by 2020.
We should be in no doubt, however, that the level of ambition is linked directly to the costs involved. We are working with the industry to ensure that the costs of offshore wind can be brought down significantly. At the moment, the cost is about £140 per MWh; we need to see that brought down to £100 per MWh. The industry ambition of 18 GW by 2020 is absolutely dependent on progress being made in that direction. We understand that that has to happen in a way that works for consumers and the industry as investors. It is worth observing that, last year, there was pressure to push up bills by more than £100 because the wholesale price of gas rose by about 40%. The renewable energy element of a bill is less than £20, or less than 3%. We have to look at these issues in the round.
The most important message that I can give to my hon. Friend the Member for South Dorset is that this is one proposal, which will come forward in a formal application next year. There will be significant opportunities to ensure that people’s views are heard. I am adamant as a Minister involved in the process that local engagement with the community will be an integral part of that process.
Question put and agreed to.